☒ | 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. | 15 | ||
Item 3. | |||
Item 4. | |||
Part II. | Other Information | ||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
Item 1. | Financial Statements |
Quarterly Period Ended | ||||||||
January 1, 2022 | January 2, 2021 | |||||||
Net sales | $ | 3,573 | $ | 3,136 | ||||
Costs and expenses: | ||||||||
Cost of goods sold | 3,038 | 2,518 | ||||||
Selling, general and administrative | 235 | 241 | ||||||
Amortization of intangibles | 68 | 74 | ||||||
Restructuring and transaction activities | 3 | (1 | ) | |||||
Operating income | 229 | 304 | ||||||
Other expense | 0 | 25 | ||||||
Interest expense | 71 | 97 | ||||||
Income before income taxes | 158 | 182 | ||||||
Income tax expense | 37 | 52 | ||||||
Net income | $ | 121 | $ | 130 | ||||
Net income per share: | ||||||||
Basic | $ | 0.89 | $ | 0.97 | ||||
Diluted | 0.87 | 0.96 |
Quarterly Period Ended | Two Quarterly Periods Ended | |||||||||||||||
April 2, 2022 | April 3, 2021 | April 2, 2022 | April 3, 2021 | |||||||||||||
Net sales | $ | 3,775 | $ | 3,370 | $ | 7,348 | $ | 6,506 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of goods sold | 3,154 | 2,706 | 6,192 | 5,224 | ||||||||||||
Selling, general and administrative | 207 | 220 | 442 | 461 | ||||||||||||
Amortization of intangibles | 65 | 73 | 133 | 147 | ||||||||||||
Restructuring and transaction activities | 8 | 38 | 11 | 37 | ||||||||||||
Operating income | 341 | 333 | 570 | 637 | ||||||||||||
Other expense | 6 | 6 | 6 | 31 | ||||||||||||
Interest expense | 71 | 84 | 142 | 181 | ||||||||||||
Income before income taxes | 264 | 243 | 422 | 425 | ||||||||||||
Income tax expense | 59 | 62 | 96 | 114 | ||||||||||||
Net income | $ | 205 | $ | 181 | $ | 326 | $ | 311 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 1.53 | $ | 1.35 | $ | 2.42 | $ | 2.32 | ||||||||
Diluted | 1.50 | 1.32 | 2.36 | 2.28 |
Quarterly Period Ended | Quarterly Period Ended | Two Quarterly Periods Ended | ||||||||||||||||||||||
January 1, 2022 | January 2, 2021 | April 2, 2022 | April 3, 2021 | April 2, 2022 | April 3, 2021 | |||||||||||||||||||
Net income | $ | 121 | $ | 130 | $ | 205 | $ | 181 | $ | 326 | $ | 311 | ||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Currency translation | (22 | ) | 178 | 37 | (73 | ) | 15 | 105 | ||||||||||||||||
Derivative instruments | 29 | 17 | 71 | 54 | 100 | 71 | ||||||||||||||||||
Other comprehensive income | 7 | 195 | ||||||||||||||||||||||
Other comprehensive income (loss) | 108 | (19 | ) | 115 | 176 | |||||||||||||||||||
Comprehensive income | $ | 128 | $ | 325 | $ | 313 | $ | 162 | $ | 441 | $ | 487 |
January 1, 2022 | October 2, 2021 | April 2, 2022 | October 2, 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 582 | $ | 1,091 | $ | 622 | $ | 1,091 | ||||||||
Accounts receivable | 1,828 | 1,879 | 1,996 | 1,879 | ||||||||||||
Finished goods | 1,056 | 960 | 1,032 | 960 | ||||||||||||
Raw materials and supplies | 985 | 947 | 932 | 947 | ||||||||||||
Prepaid expenses and other current assets | 237 | 217 | 401 | 217 | ||||||||||||
Total current assets | 4,688 | 5,094 | 4,983 | 5,094 | ||||||||||||
Noncurrent assets: | ||||||||||||||||
Property, plant and equipment | 4,672 | 4,677 | 4,650 | 4,677 | ||||||||||||
Goodwill and intangible assets | 7,329 | 7,434 | 7,183 | 7,434 | ||||||||||||
Right-of-use assets | 543 | 562 | 536 | 562 | ||||||||||||
Other assets | 109 | 115 | 183 | 115 | ||||||||||||
Total assets | $ | 17,341 | $ | 17,882 | $ | 17,535 | $ | 17,882 | ||||||||
Liabilities and stockholders’ equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,582 | $ | 2,041 | $ | 1,651 | $ | 2,041 | ||||||||
Accrued employee costs | 259 | 336 | 250 | 336 | ||||||||||||
Other current liabilities | 803 | 788 | 824 | 788 | ||||||||||||
Current portion of long-term debt | 20 | 21 | 19 | 21 | ||||||||||||
Total current liabilities | 2,664 | 3,186 | 2,744 | 3,186 | ||||||||||||
Noncurrent liabilities: | ||||||||||||||||
Long-term debt | 9,411 | 9,439 | 9,627 | 9,439 | ||||||||||||
Deferred income taxes | 578 | 568 | 569 | 568 | ||||||||||||
Employee benefit obligations | 264 | 276 | 244 | 276 | ||||||||||||
Operating lease liabilities | 448 | 466 | 443 | 466 | ||||||||||||
Other long-term liabilities | 682 | 767 | 588 | 767 | ||||||||||||
Total liabilities | 14,047 | 14,702 | 14,215 | 14,702 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock (135.2 and 135.5 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Common stock (130.4 and 135.5 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Additional paid-in capital | 1,170 | 1,134 | 1,174 | 1,134 | ||||||||||||
Retained earnings | 2,412 | 2,341 | 2,326 | 2,341 | ||||||||||||
Accumulated other comprehensive loss | (289 | ) | (296 | ) | (181 | ) | (296 | ) | ||||||||
Total stockholders’ equity | 3,294 | 3,180 | 3,320 | 3,180 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 17,341 | $ | 17,882 | $ | 17,535 | $ | 17,882 |
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 | |||||||||||||||||||||||||||||
Quarterly Period Ended | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 1 | $ | 1,170 | $ | (289 | ) | $ | 2,412 | $ | 3,294 | |||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 121 | 121 | 0 | 0 | 0 | 205 | 205 | ||||||||||||||||||||||||||||||
Other comprehensive income | 0 | 0 | 7 | 0 | 7 | 0 | 0 | 108 | 0 | 108 | ||||||||||||||||||||||||||||||
Share-based compensation | 0 | 21 | 0 | 0 | 21 | 0 | 7 | 0 | 0 | 7 | ||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | 0 | 16 | 0 | 0 | 16 | 0 | 6 | 0 | 0 | 6 | ||||||||||||||||||||||||||||||
Common stock repurchased and retired | 0 | (1 | ) | 0 | (50 | ) | (51 | ) | 0 | (9 | ) | 0 | (291 | ) | (300 | ) | ||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 1 | $ | 1,170 | $ | (289 | ) | $ | 2,412 | $ | 3,294 | |||||||||||||||||||||||||||||
Balance at April 2, 2022 | $ | 1 | $ | 1,174 | $ | (181 | ) | $ | 2,326 | $ | 3,320 | |||||||||||||||||||||||||||||
Balance at September 26, 2020 | $ | 1 | $ | 1,034 | $ | (551 | ) | $ | 1,608 | $ | 2,092 | |||||||||||||||||||||||||||||
Balance at January 2, 2021 | $ | 1 | $ | 1,062 | $ | (356 | ) | $ | 1,738 | $ | 2,445 | |||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 130 | 130 | 0 | 0 | 0 | 181 | 181 | ||||||||||||||||||||||||||||||
Other comprehensive income | 0 | 0 | 195 | 0 | 195 | |||||||||||||||||||||||||||||||||||
Other comprehensive loss | 0 | 0 | (19 | ) | 0 | (19 | ) | |||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 21 | 0 | 0 | 21 | 0 | 7 | 0 | 0 | 7 | ||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | 0 | 7 | 0 | 0 | 7 | 0 | 32 | 0 | 0 | 32 | ||||||||||||||||||||||||||||||
Balance at January 2, 2021 | $ | 1 | $ | 1,062 | $ | (356 | ) | $ | 1,738 | $ | 2,445 | |||||||||||||||||||||||||||||
Balance at April 3, 2021 | $ | 1 | $ | 1,101 | $ | (375 | ) | $ | 1,919 | $ | 2,646 |
Two Quarterly Periods Ended | 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 | 326 | 326 | |||||||||||||||
Other comprehensive income | 0 | 0 | 115 | 0 | 115 | |||||||||||||||
Share-based compensation | 0 | 28 | 0 | 0 | 28 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 22 | 0 | 0 | 22 | |||||||||||||||
Common stock repurchased and retired | 0 | (10 | ) | 0 | (341 | ) | (351 | ) | ||||||||||||
Balance at April 2, 2022 | $ | 1 | $ | 1,174 | $ | (181 | ) | $ | 2,326 | $ | 3,320 | |||||||||
Balance at September 26, 2020 | $ | 1 | $ | 1,034 | $ | (551 | ) | $ | 1,608 | $ | 2,092 | |||||||||
Net income | 0 | 0 | 0 | 311 | 311 | |||||||||||||||
Other comprehensive income | 0 | 0 | 176 | 0 | 176 | |||||||||||||||
Share-based compensation | 0 | 28 | 0 | 0 | 28 | |||||||||||||||
Proceeds from issuance of common stock | 0 | 39 | 0 | 0 | 39 | |||||||||||||||
Balance at April 3, 2021 | $ | 1 | $ | 1,101 | $ | (375 | ) | $ | 1,919 | $ | 2,646 |
Quarterly Period Ended | Two Quarterly Periods Ended | |||||||||||||||
January 1, 2022 | January 2, 2021 | April 2, 2022 | April 3, 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 121 | $ | 130 | $ | 326 | $ | 311 | ||||||||
Adjustments to reconcile net cash from operating activities: | ||||||||||||||||
Depreciation | 143 | 141 | 284 | 280 | ||||||||||||
Amortization of intangibles | 68 | 74 | 133 | 147 | ||||||||||||
Non-cash interest expense | 3 | 8 | 8 | 16 | ||||||||||||
Deferred income tax | (12 | ) | (19 | ) | (43 | ) | (28 | ) | ||||||||
Share-based compensation expense | 21 | 21 | 28 | 28 | ||||||||||||
Other non-cash operating activities, net | (8 | ) | 5 | (14 | ) | 51 | ||||||||||
Changes in working capital | (637 | ) | (49 | ) | (714 | ) | (156 | ) | ||||||||
Changes in other assets and liabilities | (3 | ) | 4 | (22 | ) | (11 | ) | |||||||||
Net cash from operating activities | (304 | ) | 315 | (14 | ) | 638 | ||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment, net | (162 | ) | (162 | ) | (367 | ) | (364 | ) | ||||||||
Divestiture of business | 0 | 140 | 3 | 143 | ||||||||||||
Net cash from investing activities | (162 | ) | (22 | ) | (364 | ) | (221 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term borrowings | 0 | 750 | 244 | 2,316 | ||||||||||||
Repayments on long-term borrowings | (5 | ) | (985 | ) | (9 | ) | (2,683 | ) | ||||||||
Proceeds from issuance of common stock | 16 | 7 | 22 | 39 | ||||||||||||
Repurchase of common stock | (51 | ) | 0 | (351 | ) | 0 | ||||||||||
Debt financing costs | 0 | (6 | ) | 0 | (16 | ) | ||||||||||
Net cash from financing activities | (40 | ) | (234 | ) | (94 | ) | (344 | ) | ||||||||
Effect of currency translation on cash | (3 | ) | 38 | 3 | 20 | |||||||||||
Net change in cash and cash equivalents | (509 | ) | 97 | (469 | ) | 93 | ||||||||||
Cash and cash equivalents at beginning of period | 1,091 | 750 | 1,091 | 750 | ||||||||||||
Cash and cash equivalents at end of period | $ | 582 | $ | 847 | $ | 622 | $ | 843 |
Quarterly Period Ended | ||||||||
January 1, 2022 | January 2, 2021 | |||||||
Consumer Packaging International | $ | 2 | $ | 3 | ||||
Consumer Packaging North America | 1 | 1 | ||||||
Health, Hygiene & Specialties | (1 | ) | 0 | |||||
Engineered Materials(1) | 1 | (5 | ) | |||||
Consolidated | $ | 3 | $ | (1 | ) |
Quarterly Period Ended | Two Quarterly Periods Ended | |||||||||||||||
April 2, 2022 | April 3, 2021 | April 2, 2022 | April 3, 2021 | |||||||||||||
Consumer Packaging International | $ | 5 | $ | 38 | $ | 7 | $ | 41 | ||||||||
Consumer Packaging North America | 2 | 0 | 3 | 1 | ||||||||||||
Health, Hygiene & Specialties | 0 | 0 | (1 | ) | 0 | |||||||||||
Engineered Materials | 1 | 0 | 2 | (5 | ) | |||||||||||
Consolidated | $ | 8 | $ | 38 | $ | 11 | $ | 37 |
Restructuring | Restructuring | |||||||||||||||||||||||||||
Employee Severance and Benefits | Facility Exit Costs | Total | Employee Severance and Benefits | Facility Exit Costs | Transaction Activities | Total | ||||||||||||||||||||||
Balance at October 2, 2021 | $ | 6 | $ | 5 | $ | 11 | ||||||||||||||||||||||
Balance as of October 2, 2021 | $ | 6 | $ | 5 | $ | 0 | $ | 11 | ||||||||||||||||||||
Charges | 2 | 1 | 3 | 3 | 6 | 2 | 11 | |||||||||||||||||||||
Cash | (2 | ) | (1 | ) | (3 | ) | (3 | ) | (7 | ) | (2 | ) | (12 | ) | ||||||||||||||
Balance at January 1, 2022 | $ | 6 | $ | 5 | $ | 11 | ||||||||||||||||||||||
Balance as of April 2, 2022 | $ | 6 | $ | 4 | $ | 0 | $ | 10 |
Leases | Classification | January 1, 2022 | October 2, 2021 | Classification | April 2, 2022 | October 2, 2021 | ||||||||||||
Operating leases: | ||||||||||||||||||
Operating lease right-of-use assets | Right-of-use asset | $ | 543 | $ | 562 | Right-of-use assets | $ | 536 | $ | 562 | ||||||||
Current operating lease liabilities | Other current liabilities | 111 | 113 | Other current liabilities | 110 | 113 | ||||||||||||
Noncurrent operating lease liabilities | Operating lease liability | 448 | 466 | Operating lease liability | 443 | 466 | ||||||||||||
Finance leases: | ||||||||||||||||||
Finance lease right-of-use assets | Property, plant, and equipment, net | $ | 53 | $ | 57 | Property, plant, and equipment, net | $ | 47 | $ | 57 | ||||||||
Current finance lease liabilities | Current portion of long-term debt | 14 | 14 | |||||||||||||||
Current finance lease liability | Current portion of long-term debt | 13 | 14 | |||||||||||||||
Noncurrent finance lease liabilities | Long-term debt, less current portion | 35 | 38 | Long-term debt, less current portion | 30 | 38 |
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 |
Two Quarterly Periods Ended | ||||||||||||
Lease Type | Cash Flow Classification | Lease Expense Category | April 2, 2022 | April 3, 2021 | ||||||||
Operating | Operating | Lease cost | $ | 62 | $ | 57 | ||||||
Finance | Operating | Interest expense | 1 | 1 | ||||||||
Finance | Financing | - | 9 | 16 | ||||||||
Finance | - | Amortization of right-of-use assets | 5 | 7 |
Facility | Maturity Date | January 1, 2022 | October 2, 2021 | Maturity Date | April 2, 2022 | October 2, 2021 | ||||||||||||
Term loan | July 2026 | $ | 3,440 | 3,440 | July 2026 | $ | 3,440 | 3,440 | ||||||||||
Revolving line of credit | May 2024 | 0 | 0 | May 2024 | 244 | 0 | ||||||||||||
0.95% First Priority Senior Secured Notes | February 2024 | 800 | 800 | February 2024 | 800 | 800 | ||||||||||||
1.00% First Priority Senior Secured Notes (a) | July 2025 | 792 | 810 | July 2025 | 776 | 810 | ||||||||||||
1.57% First Priority Senior Secured Notes | January 2026 | 1,525 | 1,525 | 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 | 400 | January 2027 | 400 | 400 | ||||||||||||
1.50% First Priority Senior Secured Notes (a) | July 2027 | 424 | 434 | July 2027 | 416 | 434 | ||||||||||||
4.50% Second Priority Senior Secured Notes | February 2026 | 300 | 300 | February 2026 | 300 | 300 | ||||||||||||
5.625% Second Priority Senior Secured Notes | July 2027 | 500 | 500 | July 2027 | 500 | 500 | ||||||||||||
Debt discounts and deferred fees | (73 | ) | (77 | ) | (69 | ) | (77 | ) | ||||||||||
Finance leases and other | Various | 73 | 78 | Various | 64 | 78 | ||||||||||||
Total long-term debt | 9,431 | 9,460 | 9,646 | 9,460 | ||||||||||||||
Current portion of long-term debt | (20 | ) | (21 | ) | (19 | ) | (21 | ) | ||||||||||
Long-term debt, less current portion | $ | 9,411 | 9,439 | $ | 9,627 | 9,439 |
(a) | Euro denominated |
Derivative Instruments | Hedge Designation | Balance Sheet Location | January 1, 2022 | October 2, 2021 | Hedge Designation | Balance Sheet Location | April 2, 2022 | October 2, 2021 | ||||||||||||
Cross-currency swaps | Designated | Other long-term liabilities | 286 | 323 | Designated | Other long-term liabilities | $ | 222 | $ | 323 | ||||||||||
Interest rate swaps | Designated | Other long-term liabilities | 47 | 82 | Designated | Other assets | 45 | 0 | ||||||||||||
Interest rate swaps | Not designated | Other long-term liabilities | 46 | 49 | Designated | Other long-term liabilities | 0 | 82 | ||||||||||||
Interest rate swaps | Not designated | Other assets | 26 | 0 | ||||||||||||||||
Interest rate swaps | Not designated | Other long-term liabilities | 68 | 49 |
Quarterly Period Ended | Quarterly Period Ended | Two Quarterly Periods Ended | ||||||||||||||||||||||||
Derivative Instruments | Statements of Income Location | January 1, 2022 | January 2, 2021 | Statements of Income Location | April 2, 2022 | April 3, 2021 | April 2, 2022 | April 3, 2021 | ||||||||||||||||||
Cross-currency swaps | Interest expense | $ | (3 | ) | $ | (3 | ) | Interest expense | $ | (4 | ) | $ | (1 | ) | $ | (7 | ) | $ | (4 | ) | ||||||
Interest rate swaps | Interest expense | 13 | 17 | Interest expense | 12 | 17 | 24 | 34 |
As of January 1, 2022 | As of April 2, 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 | 5,162 | 5,162 | 0 | 0 | 0 | 5,091 | 5,091 | 0 | ||||||||||||||||||||||||||||||
Definite lived intangible assets | 0 | 0 | 1,919 | 1,919 | 0 | 0 | 0 | 1,844 | 1,844 | 0 | ||||||||||||||||||||||||||||||
Property, plant, and equipment | 0 | 0 | 4,672 | 4,672 | 0 | 0 | 0 | 4,650 | 4,650 | 0 | ||||||||||||||||||||||||||||||
Total | $ | 0 | $ | 0 | $ | 12,001 | $ | 12,001 | $ | 0 | $ | 0 | $ | 0 | $ | 11,833 | $ | 11,833 | $ | 0 |
As of October 2, 2021 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Impairment | ||||||||||||||||
Indefinite-lived trademarks | $ | 0 | $ | 0 | $ | 248 | $ | 248 | $ | 0 | ||||||||||
Goodwill | 0 | 0 | 5,192 | 5,192 | 0 | |||||||||||||||
Definite lived intangible assets | 0 | 0 | 1,994 | 1,994 | 0 | |||||||||||||||
Property, plant, and equipment | 0 | 0 | 4,677 | 4,677 | 1 | |||||||||||||||
Total | $ | 0 | $ | 0 | $ | 12,111 | $ | 12,111 | $ | 1 |
Quarterly Period Ended | Quarterly Period Ended | Two Quarterly Periods Ended | ||||||||||||||||||||||
January 1, 2022 | January 2, 2021 | April 2, 2022 | April 3, 2021 | April 2, 2022 | April 3, 2021 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 1,056 | $ | 988 | $ | 1,139 | $ | 1,060 | $ | 2,195 | $ | 2,048 | ||||||||||||
Consumer Packaging North America | 852 | 686 | 880 | 731 | 1,732 | 1,417 | ||||||||||||||||||
Health, Hygiene & Specialties | 818 | 740 | 822 | 781 | 1,640 | 1,521 | ||||||||||||||||||
Engineered Materials | 847 | 722 | 934 | 798 | 1,781 | 1,520 | ||||||||||||||||||
Total net sales | $ | 3,573 | $ | 3,136 | $ | 3,775 | $ | 3,370 | $ | 7,348 | $ | 6,506 | ||||||||||||
Operating income: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 69 | $ | 76 | $ | 97 | $ | 59 | $ | 166 | $ | 135 | ||||||||||||
Consumer Packaging North America | 46 | 59 | 85 | 77 | 131 | 136 | ||||||||||||||||||
Health, Hygiene & Specialties | 62 | 96 | 69 | 114 | 131 | 210 | ||||||||||||||||||
Engineered Materials | 52 | 73 | 90 | 83 | 142 | 156 | ||||||||||||||||||
Total operating income | $ | 229 | $ | 304 | $ | 341 | $ | 333 | $ | 570 | $ | 637 | ||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 82 | $ | 84 | $ | 82 | $ | 87 | $ | 164 | $ | 171 | ||||||||||||
Consumer Packaging North America | 54 | 56 | 53 | 54 | 107 | 110 | ||||||||||||||||||
Health, Hygiene & Specialties | 45 | 45 | 44 | 42 | 89 | 87 | ||||||||||||||||||
Engineered Materials | 30 | 30 | 27 | 29 | 57 | 59 | ||||||||||||||||||
Total depreciation and amortization | $ | 211 | $ | 215 | $ | 206 | $ | 212 | $ | 417 | $ | 427 |
Quarterly Period Ended | Quarterly Period Ended | Two Quarterly Periods Ended | ||||||||||||||||||||||
January 1, 2022 | January 2, 2021 | April 2, 2022 | April 3, 2021 | April 2, 2022 | April 3, 2021 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
United States & Canada | $ | 1,952 | $ | 1,677 | ||||||||||||||||||||
United States and Canada | $ | 1,996 | $ | 1,728 | $ | 3,948 | $ | 3,405 | ||||||||||||||||
Europe | 1,217 | 1,093 | 1,399 | 1,257 | 2,616 | 2,350 | ||||||||||||||||||
Rest of world | 404 | 366 | 380 | 385 | 784 | 751 | ||||||||||||||||||
Total net sales | $ | 3,573 | $ | 3,136 | $ | 3,775 | $ | 3,370 | $ | 7,348 | $ | 6,506 |
Quarterly Period Ended | Quarterly Period Ended | Two Quarterly Periods Ended | ||||||||||||||||||||||
(in millions, except per share amounts) | January 1, 2022 | January 2, 2021 | April 2, 2022 | April 3, 2021 | April 2, 2022 | April 3, 2021 | ||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Consolidated net income | $ | 121 | $ | 130 | $ | 205 | $ | 181 | $ | 326 | $ | 311 | ||||||||||||
Denominator | ||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 135.4 | 133.6 | 133.8 | 134.3 | 134.6 | 133.9 | ||||||||||||||||||
Dilutive shares | 3.5 | 2.1 | 3.1 | 2.5 | 3.4 | 2.7 | ||||||||||||||||||
Weighted average common and common equivalent shares outstanding - diluted | 138.9 | 135.7 | 136.9 | 136.8 | 138.0 | 136.6 | ||||||||||||||||||
Per common share earnings | ||||||||||||||||||||||||
Basic | $ | 0.89 | $ | 0.97 | $ | 1.53 | $ | 1.35 | $ | 2.42 | $ | 2.32 | ||||||||||||
Diluted | $ | 0.87 | $ | 0.96 | $ | 1.50 | $ | 1.32 | $ | 2.36 | $ | 2.28 |
Quarterly Period Ended | Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | 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 | ) | ||||||||||||||||||||
Balance at January 1, 2022 | $ | (176 | ) | $ | (67 | ) | $ | (46 | ) | $ | (289 | ) | ||||||||||||||||||||
Other comprehensive income before reclassifications | (22 | ) | 0 | 26 | 4 | 37 | 0 | 69 | 106 | |||||||||||||||||||||||
Net amount reclassified from accumulated other comprehensive loss | 0 | 0 | 3 | 3 | ||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | (176 | ) | $ | (67 | ) | $ | (46 | ) | $ | (289 | ) | ||||||||||||||||||||
Net amount reclassified | 0 | 0 | 2 | 2 | ||||||||||||||||||||||||||||
Balance at April 2, 2022 | $ | (139 | ) | $ | (67 | ) | $ | 25 | $ | (181 | ) |
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 | ) |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at January 2, 2021 | $ | (100 | ) | $ | (116 | ) | $ | (140 | ) | $ | (356 | ) | ||||
Other comprehensive income (loss) before reclassifications | (73 | ) | 0 | 52 | (21 | ) | ||||||||||
Net amount reclassified | 0 | 0 | 2 | 2 | ||||||||||||
Balance at April 3, 2021 | $ | (173 | ) | $ | (116 | ) | $ | (86 | ) | $ | (375 | ) |
Two Quarterly Periods 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 | 15 | 0 | 95 | 110 | ||||||||||||
Net amount reclassified | 0 | 0 | 5 | 5 | ||||||||||||
Balance at April 2, 2022 | $ | (139 | ) | $ | (67 | ) | $ | 25 | $ | (181 | ) |
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 | 105 | 0 | 67 | 172 | ||||||||||||
Net amount reclassified | 0 | 0 | 4 | 4 | ||||||||||||
Balance at April 3, 2021 | $ | (173 | ) | $ | (116 | ) | $ | (86 | ) | $ | (375 | ) |
Consolidated Overview | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 3,573 | $ | 3,136 | $ | 437 | 14 | % | $ | 3,775 | $ | 3,370 | $ | 405 | 12 | % | ||||||||||||||||
Cost of goods sold | 3,038 | 2,518 | 520 | 21 | % | 3,154 | 2,706 | 448 | 17 | % | ||||||||||||||||||||||
Other operating expenses | 306 | 314 | (8 | ) | (3 | )% | 280 | 331 | (51 | ) | (15 | )% | ||||||||||||||||||||
Operating income | $ | 229 | $ | 304 | $ | (75 | ) | (25 | )% | $ | 341 | $ | 333 | $ | 8 | 2 | % |
Consumer Packaging International | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 1,056 | $ | 988 | $ | 68 | 7 | % | $ | 1,139 | $ | 1,060 | $ | 79 | 7 | % | ||||||||||||||||
Operating income | $ | 69 | $ | 76 | $ | (7 | ) | (9 | )% | $ | 97 | $ | 59 | $ | 38 | 64 | % |
Consumer Packaging North America | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 852 | $ | 686 | $ | 166 | 24 | % | $ | 880 | $ | 731 | $ | 149 | 20 | % | ||||||||||||||||
Operating income | $ | 46 | $ | 59 | $ | (13 | ) | (22 | )% | $ | 85 | $ | 77 | $ | 8 | 10 | % |
Health, Hygiene & Specialties | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 818 | $ | 740 | $ | 78 | 11 | % | $ | 822 | $ | 781 | $ | 41 | 5 | % | ||||||||||||||||
Operating income | $ | 62 | $ | 96 | $ | (34 | ) | (35 | )% | $ | 69 | $ | 114 | $ | (45 | ) | (39 | )% |
Engineered Materials | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 847 | $ | 722 | $ | 125 | 17 | % | $ | 934 | $ | 798 | $ | 136 | 17 | % | ||||||||||||||||
Operating income | $ | 52 | $ | 73 | $ | (21 | ) | (29 | )% | $ | 90 | $ | 83 | $ | 7 | 8 | % |
Other expense | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Other expense | $ | — | $ | 25 | $ | (25 | ) | (100 | )% |
Other expense, net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Other expense, net | $ | 6 | $ | 6 | $ | — | — |
Interest expense | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Interest expense | $ | 71 | $ | 97 | $ | (26 | ) | (27 | )% |
Interest expense, net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Interest expense, net | $ | 71 | $ | 84 | $ | (13 | ) | (15 | )% |
Consolidated Overview | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 7,348 | $ | 6,506 | $ | 842 | 13 | % | ||||||||
Cost of goods sold | 6,192 | 5,224 | 968 | 19 | % | |||||||||||
Other operating expenses | 586 | 645 | (59 | ) | (9 | )% | ||||||||||
Operating income | $ | 570 | $ | 637 | $ | (67 | ) | (11 | )% |
Consumer Packaging International | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 2,195 | $ | 2,048 | $ | 147 | 7 | % | ||||||||
Operating income | $ | 166 | $ | 135 | $ | 31 | 23 | % |
Consumer Packaging North America | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 1,732 | $ | 1,417 | $ | 315 | 22 | % | ||||||||
Operating income | $ | 131 | $ | 136 | $ | (5 | ) | (4 | )% |
Health, Hygiene & Specialties | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 1,640 | $ | 1,521 | $ | 119 | 8 | % | ||||||||
Operating income | $ | 131 | $ | 210 | $ | (79 | ) | (38 | )% |
Engineered Materials | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 1,781 | $ | 1,520 | $ | 261 | 17 | % | ||||||||
Operating income | $ | 142 | $ | 156 | $ | (14 | ) | (9 | )% |
Other expense | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Other expense | $ | 6 | $ | 31 | $ | (25 | ) | (81 | )% |
Interest expense | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Interest expense | $ | 142 | $ | 181 | $ | (39 | ) | (22 | )% |
January 1, 2022 | Fiscal 2022 Outlook | April 2, 2022 | Fiscal 2022 Outlook | |||||||||||||
Cash flow from operating activities | $ | (304 | ) | $ | 1,800 - 1,700 | $ | (14 | ) | $ | 1,650-1,750 | ||||||
Additions to property, plant and equipment, net | (162 | ) | (800 | ) | (367 | ) | (750 | ) | ||||||||
Free cash flow | $ | (466 | ) | $ | 1,000 - 900 | $ | (381 | ) | $ | 900-1,000 |
Quarterly Period Ended | Two Quarterly Periods Ended | |||||||
January 1, 2022 | April 2, 2022 | |||||||
Net sales | $ | 1,890 | $ | 3,813 | ||||
Gross profit | 266 | 599 | ||||||
Earnings from continuing operations | 63 | 175 | ||||||
Net income | $ | 63 | $ | 175 |
January 1, 2022 | October 2, 2021 | |||||||
Assets | ||||||||
Current assets | $ | 2,094 | $ | 2,293 | ||||
Noncurrent assets | 5,952 | 5,979 | ||||||
Liabilities | ||||||||
Current liabilities | $ | 1,258 | $ | 1,533 | ||||
Noncurrent liabilities | 10,977 | 11,083 |
April 2, 2022 | October 2, 2021 | |||||||
Assets | ||||||||
Current assets | $ | 2,033 | $ | 2,293 | ||||
Noncurrent assets | 6,044 | 5,979 | ||||||
Liabilities | ||||||||
Current liabilities | $ | 1,094 | $ | 1,533 | ||||
Intercompany payable | 634 | 629 | ||||||
Noncurrent liabilities | 11,097 | 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 |
Fiscal 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) (a) | ||||||||||||
January | 164,100 | $ | 61.75 | 164,100 | $ | 990 | ||||||||||
February | 2,405,334 | 61.16 | 2,405,334 | 843 | ||||||||||||
March | 2,459,076 | 58.05 | 2,459,076 | 700 | ||||||||||||
Total | 5,028,510 | $ | 59.66 | 5,028,510 | $ | 700 |
(a) | All open market purchases during the quarter were made under the fiscal |
Exhibit No. | Description of Exhibit | |
22.1* | 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 |