☒ | 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 |
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 | |||
6 | |||
8 | |||
Item 2. | 17 | ||
Item 3. | 24 | ||
Item 4. | 25 | ||
Part II. | Other Information | ||
Item 1. | 26 | ||
Item 1A. | 26 | ||
Item 2. | 28 | ||
Item 6. | 29 | ||
30 |
Item 1. | Financial Statements |
Quarterly Period Ended | Quarterly Period Ended | Three Quarterly Periods Ended | ||||||||||||||||||||||
December 30, 2017 | December 31, 2016 | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||
Net sales | $ | 1,776 | $ | 1,502 | $ | 2,910 | $ | 1,937 | $ | 8,701 | $ | 5,859 | ||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of goods sold | 1,447 | 1,206 | 2,272 | 1,559 | 6,959 | 4,737 | ||||||||||||||||||
Selling, general and administrative | 117 | 113 | 198 | 125 | 631 | 392 | ||||||||||||||||||
Amortization of intangibles | 38 | 33 | 74 | 38 | 226 | 119 | ||||||||||||||||||
Restructuring and impairment charges | 11 | 4 | ||||||||||||||||||||||
Restructuring and transaction activities | 19 | — | 55 | 35 | ||||||||||||||||||||
Operating income | 163 | 146 | 347 | 215 | 830 | 576 | ||||||||||||||||||
Other expense (income), net | 9 | (1 | ) | |||||||||||||||||||||
Other (income) expense, net | (7 | ) | 136 | 6 | 159 | |||||||||||||||||||
Interest expense, net | 62 | 68 | 110 | 71 | 339 | 201 | ||||||||||||||||||
Income before income taxes | 92 | 79 | 244 | 8 | 485 | 216 | ||||||||||||||||||
Income tax expense (benefit) | (71 | ) | 28 | 53 | (5 | ) | 121 | 41 | ||||||||||||||||
Net income | $ | 163 | $ | 51 | $ | 191 | $ | 13 | $ | 364 | $ | 175 | ||||||||||||
Net income per share: | ||||||||||||||||||||||||
Basic | $ | 1.24 | $ | 0.42 | $ | 1.44 | $ | 0.10 | $ | 2.75 | $ | 1.34 | ||||||||||||
Diluted | 1.20 | 0.40 | 1.42 | 0.10 | 2.71 | 1.31 | ||||||||||||||||||
Outstanding weighted-average shares: | ||||||||||||||||||||||||
Basic | 131.0 | 122.0 | 132.5 | 131.5 | 132.4 | 131.0 | ||||||||||||||||||
Diluted | 136.0 | 127.8 | 134.2 | 134.2 | 134.3 | 134.0 |
Quarterly Period Ended | ||||||||
December 30, 2017 | December 31, 2016 | |||||||
Net income | $ | 163 | $ | 51 | ||||
Currency translation | (24 | ) | (45 | ) | ||||
Pension and other postretirement benefits | (1 | ) | — | |||||
Interest rate hedges | 17 | 17 | ||||||
Provision for income taxes | (4 | ) | (6 | ) | ||||
Other comprehensive loss, net of tax | (12 | ) | (34 | ) | ||||
Comprehensive income | $ | 151 | $ | 17 |
Quarterly Period Ended | Three Quarterly Periods Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Net income | $ | 191 | $ | 13 | $ | 364 | $ | 175 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Currency translation | 11 | 10 | (54 | ) | 12 | |||||||||||
Pension | — | — | (1 | ) | — | |||||||||||
Derivative instruments | (13 | ) | (35 | ) | (109 | ) | (67 | ) | ||||||||
Other comprehensive income (loss) | (2 | ) | (25 | ) | (164 | ) | (55 | ) | ||||||||
Comprehensive income (loss) | $ | 189 | $ | (12 | ) | $ | 200 | $ | 120 |
June 27, 2020 | September 28, 2019 | |||||||||||||||
December 30, 2017 | September 30, 2017 | (Unaudited) | ||||||||||||||
Assets | (Unaudited) | |||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 228 | $ | 306 | $ | 906 | $ | 750 | ||||||||
Accounts receivable (less allowance of $13) | 780 | 847 | ||||||||||||||
Inventories: | ||||||||||||||||
Accounts receivable (less allowance of 28 and 28, respectively) | 1,471 | 1,526 | ||||||||||||||
Finished goods | 498 | 428 | 750 | 743 | ||||||||||||
Raw materials and supplies | 380 | 334 | 568 | 581 | ||||||||||||
878 | 762 | |||||||||||||||
Prepaid expenses and other current assets | 95 | 89 | 162 | 157 | ||||||||||||
Total current assets | 1,981 | 2,004 | 3,857 | 3,757 | ||||||||||||
Property, plant, and equipment, net | 2,363 | 2,366 | ||||||||||||||
Goodwill and intangible assets, net | 4,024 | 4,061 | ||||||||||||||
Noncurrent assets: | ||||||||||||||||
Property, plant, and equipment | 4,481 | 4,714 | ||||||||||||||
Goodwill and intangible assets | 7,720 | 7,831 | ||||||||||||||
Right-of-use assets | 563 | — | ||||||||||||||
Other assets | 52 | 45 | 110 | 167 | ||||||||||||
Total assets | $ | 8,420 | $ | 8,476 | $ | 16,731 | $ | 16,469 | ||||||||
Liabilities | ||||||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 666 | $ | 638 | $ | 981 | $ | 1,159 | ||||||||
Accrued expenses and other current liabilities | 454 | 463 | ||||||||||||||
Accrued employee costs | 267 | 214 | ||||||||||||||
Other current liabilities | 677 | 562 | ||||||||||||||
Current portion of long-term debt | 34 | 33 | 70 | 104 | ||||||||||||
Total current liabilities | 1,154 | 1,134 | 1,995 | 2,039 | ||||||||||||
Noncurrent liabilities: | ||||||||||||||||
Long-term debt, less current portion | 5,502 | 5,608 | 10,690 | 11,261 | ||||||||||||
Deferred income taxes | 276 | 419 | 673 | 803 | ||||||||||||
Employee benefit obligations | 307 | 327 | ||||||||||||||
Operating lease liabilities | 468 | — | ||||||||||||||
Other long-term liabilities | 314 | 300 | 729 | 421 | ||||||||||||
Total liabilities | 7,246 | 7,461 | 14,862 | 14,851 | ||||||||||||
Stockholders' equity | ||||||||||||||||
Common stock (131.1 and 130.9 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Stockholders' equity: | ||||||||||||||||
Common stock (132.7 and 132.3 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Additional paid-in capital | 831 | 823 | 1,005 | 949 | ||||||||||||
Non-controlling interest | 3 | 3 | ||||||||||||||
Retained earnings | 419 | 256 | 1,413 | 1,054 | ||||||||||||
Accumulated other comprehensive loss | (80 | ) | (68 | ) | (550 | ) | (386 | ) | ||||||||
Total stockholders' equity | 1,174 | 1,015 | 1,869 | 1,618 | ||||||||||||
Total liabilities and stockholders' equity | $ | 8,420 | $ | 8,476 | $ | 16,731 | $ | 16,469 |
Quarterly Period Ended | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||
Balance at March 28, 2020 | $ | 1 | $ | 976 | $ | (548 | ) | $ | 1,222 | $ | 1,651 | |||||||||
Net income | — | — | — | 191 | 191 | |||||||||||||||
Other comprehensive loss | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Share-based compensation | — | 4 | — | — | 4 | |||||||||||||||
Proceeds from issuance of common stock | — | 3 | — | — | 3 | |||||||||||||||
Acquisition(a) | — | 22 | — | — | 22 | |||||||||||||||
Balance at June 27, 2020 | $ | 1 | $ | 1,005 | $ | (550 | ) | $ | 1,413 | $ | 1,869 | |||||||||
Balance at March 30, 2019 | $ | 1 | $ | 904 | $ | (186 | ) | $ | 812 | $ | 1,531 | |||||||||
Net income | — | — | — | 13 | 13 | |||||||||||||||
Other comprehensive loss | — | — | (25 | ) | — | (25 | ) | |||||||||||||
Share-based compensation | — | 4 | — | — | 4 | |||||||||||||||
Proceeds from issuance of common stock | — | 23 | — | — | 23 | |||||||||||||||
Common stock repurchased and retired | — | — | — | — | — | |||||||||||||||
Balance at June 29, 2019 | $ | 1 | $ | 931 | $ | (211 | ) | $ | 825 | $ | 1,546 |
Three Quarterly Periods Ended | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||
Balance at September 28, 2019 | $ | 1 | $ | 949 | $ | (386 | ) | $ | 1,054 | $ | 1,618 | |||||||||
Net income | — | — | — | 364 | 364 | |||||||||||||||
Other comprehensive loss | — | — | (164 | ) | — | (164 | ) | |||||||||||||
Share-based compensation | — | 28 | — | — | 28 | |||||||||||||||
Proceeds from issuance of common stock | — | 6 | — | — | 6 | |||||||||||||||
Acquisition(a) | — | 22 | — | — | 22 | |||||||||||||||
Adoption of lease accounting standard | — | — | — | (5 | ) | (5 | ) | |||||||||||||
Balance at June 27, 2020 | $ | 1 | $ | 1,005 | $ | (550 | ) | $ | 1,413 | $ | 1,869 | |||||||||
Balance at September 29, 2018 | $ | 1 | $ | 870 | $ | (156 | ) | $ | 719 | $ | 1,434 | |||||||||
Net income | — | — | — | 175 | 175 | |||||||||||||||
Other comprehensive loss | — | — | (55 | ) | — | (55 | ) | |||||||||||||
Share-based compensation | — | 21 | — | — | 21 | |||||||||||||||
Proceeds from issuance of common stock | — | 43 | — | — | 43 | |||||||||||||||
Common stock repurchased and retired | — | (3 | ) | — | (69 | ) | (72 | ) | ||||||||||||
Balance at June 29, 2019 | $ | 1 | $ | 931 | $ | (211 | ) | $ | 825 | $ | 1,546 |
(a) | Represents noncontrolling interest (see Note 4). |
Quarterly Period Ended | Three Quarterly Periods Ended | |||||||||||||||
December 30, 2017 | December 31, 2016 | June 27, 2020 | June 29, 2019 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 163 | $ | 51 | $ | 364 | $ | 175 | ||||||||
Adjustments to reconcile net cash provided by operating activities: | ||||||||||||||||
Depreciation | 91 | 87 | 412 | 278 | ||||||||||||
Amortization of intangibles | 38 | 33 | 226 | 119 | ||||||||||||
Non-cash interest expense | 3 | 1 | ||||||||||||||
Non-cash interest | 18 | (4 | ) | |||||||||||||
Loss on foreign exchange forward contracts | — | 156 | ||||||||||||||
Deferred income tax | (121 | ) | 14 | 30 | (16 | ) | ||||||||||
Stock compensation expense | 4 | 3 | ||||||||||||||
Share-based compensation expense | 28 | 21 | ||||||||||||||
Other non-cash operating activities, net | 6 | (1 | ) | 23 | 9 | |||||||||||
Changes in working capital | (66 | ) | (43 | ) | (93 | ) | (169 | ) | ||||||||
Changes in other assets and liabilities | 35 | (2 | ) | (29 | ) | 2 | ||||||||||
Net cash from operating activities | 153 | 143 | 979 | 571 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Additions to property, plant and equipment | (94 | ) | (65 | ) | ||||||||||||
Proceeds from sale of assets | 3 | 2 | ||||||||||||||
Other investing activities, net | — | (1 | ) | |||||||||||||
Additions to property, plant and equipment, net | (419 | ) | (271 | ) | ||||||||||||
Settlement of net investment hedges | 281 | — | ||||||||||||||
Other investing activities | (14 | ) | 2 | |||||||||||||
Net cash from investing activities | (91 | ) | (64 | ) | (152 | ) | (269 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term borrowings | 1,202 | — | ||||||||||||||
Repayments on long-term borrowings | (108 | ) | (10 | ) | (1,859 | ) | (383 | ) | ||||||||
Proceeds from issuance of common stock | 4 | 5 | 6 | 43 | ||||||||||||
Repurchase of common stock | — | (74 | ) | |||||||||||||
Payment of tax receivable agreement | (37 | ) | (60 | ) | — | (16 | ) | |||||||||
Debt financing costs | (16 | ) | — | |||||||||||||
Net cash from financing activities | (141 | ) | (65 | ) | (667 | ) | (430 | ) | ||||||||
Effect of exchange rate changes on cash | 1 | (6 | ) | (4 | ) | 2 | ||||||||||
Net change in cash | (78 | ) | 8 | 156 | (126 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 306 | 323 | 750 | 381 | ||||||||||||
Cash and cash equivalents at end of period | $ | 228 | $ | 331 | $ | 906 | $ | 255 |
Working capital (a) | $ | 139 | ||
Property and equipment | 223 | |||
Intangible assets | 214 | |||
Goodwill | 347 | |||
Historical AEP debt assumed | (7 | ) | ||
Other assets and long-term liabilities | (125 | ) | ||
(a) Includes a $5 million step up of inventory to fair value |
Consideration | ||||
Cash | $ | 6,084 | ||
Total consideration transferred | 6,084 | |||
Identifiable assets acquired and liabilities assumed | ||||
Working capital(a) | 770 | |||
Property, plant and equipment | 2,151 | |||
Identifiable intangible assets | 1,670 | |||
Other assets | 2 | |||
Other long-term liabilities | (859 | ) | ||
Goodwill | 2,372 | |||
Net assets acquired and liabilities assumed | 6,106 | |||
Noncontrolling interest | (22 | ) | ||
Total consideration transferred | $ | 6,084 | ||
(a) Includes a $58 million step up of inventory to fair value |
Quarterly Period Ended | Quarterly Period Ended | Three Quarterly Periods Ended | ||||||||||||||||||||||
December 30, 2017 | December 31, 2016 | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||
Consumer Packaging | $ | 1 | $ | 2 | ||||||||||||||||||||
Consumer Packaging International | $ | 14 | $ | 2 | $ | 37 | $ | 6 | ||||||||||||||||
Consumer Packaging North America | 2 | 6 | 6 | 14 | ||||||||||||||||||||
Engineered Materials | 2 | — | 6 | 5 | ||||||||||||||||||||
Health, Hygiene & Specialties | 10 | 2 | 1 | (8 | ) | 6 | 10 | |||||||||||||||||
Engineered Materials | — | — | ||||||||||||||||||||||
Consolidated | $ | 11 | $ | 4 | $ | 19 | $ | — | $ | 55 | $ | 35 |
Employee Severance and Benefits | Facility Exit Costs | Total | Restructuring | |||||||||||||||||||||||||||||
Balance at September 30, 2017 | $ | 14 | $ | 5 | $ | 19 | ||||||||||||||||||||||||||
Employee Severance and Benefits | Facility Exit Costs | Non-cash Impairment Charges | Transaction Activities | Total | ||||||||||||||||||||||||||||
Balance as of September 28, 2019 | $ | 2 | $ | 5 | $ | — | $ | — | $ | 7 | ||||||||||||||||||||||
Charges | 10 | 1 | 11 | 24 | 1 | 2 | 28 | 55 | ||||||||||||||||||||||||
Non-cash items | — | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||||||
Cash payments | (7 | ) | (1 | ) | (8 | ) | (17 | ) | (2 | ) | — | (28 | ) | (47 | ) | |||||||||||||||||
Balance at December 30, 2017 | $ | 17 | $ | 5 | $ | 22 | ||||||||||||||||||||||||||
Balance as of June 27, 2020 | $ | 9 | $ | 4 | $ | — | $ | — | $ | 13 |
Leases | Classification | June 27, 2020 | |||
Assets | |||||
Operating lease right-of-use assets | Right-of-use assets | $ | 563 | ||
Finance lease right-of-use assets | Property, plant, and equipment | 88 | |||
Current liabilities | |||||
Operating lease liabilities | Other current liabilities | $ | 111 | ||
Finance lease liabilities | Current portion of long-term debt | 17 | |||
Non-current liabilities | |||||
Operating lease liabilities | Operating lease liabilities | $ | 468 | ||
Finance lease liabilities | Long-term debt, less current portion | 71 |
Lease cost | Quarterly Period Ended June 27, 2020 | Three Quarterly Periods Ended June 27, 2020 | ||||||
Operating lease cost | $ | 29 | $ | 86 | ||||
Finance lease cost: | ||||||||
Amortization of right-of-use assets | 3 | 11 | ||||||
Interest on lease liabilities | 1 | 3 | ||||||
Total finance lease cost | 4 | 14 | ||||||
Short-term lease cost | 3 | 11 | ||||||
Total lease cost | $ | 36 | $ | 111 |
Cash paid for amounts included in lease liabilities | Three Quarterly Periods Ended June 27, 2020 | |||
Operating cash flows from operating leases | $ | 86 | ||
Operating cash flows from finance leases | 3 | |||
Financing cash flows from finance leases | 25 |
June 27, 2020 | ||||
Weighted-average remaining lease term - operating leases | 8 years | |||
Weighted-average remaining lease term - finance leases | 4 years | |||
Weighted-average discount rate - operating leases | 4.6 | % | ||
Weighted-average discount rate - finance leases | 3.7 | % |
December 30, 2017 | September 30, 2017 | |||||||
Employee compensation | $ | 122 | $ | 147 | ||||
Accrued taxes | 107 | 90 | ||||||
Rebates | 59 | 58 | ||||||
Interest | 34 | 36 | ||||||
Tax receivable agreement obligation | 24 | 35 | ||||||
Restructuring | 22 | 19 | ||||||
Accrued operating expenses | 86 | 78 | ||||||
$ | 454 | $ | 463 |
December 30, 2017 | September 30, 2017 | |||||||
Pension liability | $ | 53 | $ | 56 | ||||
Deferred purchase price | 46 | 46 | ||||||
Lease retirement obligation | 42 | 37 | ||||||
Transition tax | 36 | — | ||||||
Interest rate swaps | 26 | 27 | ||||||
Sale-lease back deferred gain | 23 | 24 | ||||||
Tax receivable agreement obligation | 13 | 34 | ||||||
Other | 75 | 76 | ||||||
$ | 314 | $ | 300 |
Fiscal Year | Operating Leases | Finance Leases | ||||||
Remainder of 2020 | $ | 35 | $ | 8 | ||||
2021 | 108 | 22 | ||||||
2022 | 100 | 26 | ||||||
2023 | 85 | 16 | ||||||
2024 | 70 | 6 | ||||||
Thereafter | 303 | 15 | ||||||
Total lease payments | 701 | 93 | ||||||
Less: Interest | (122 | ) | (5 | ) | ||||
Present value of lease liabilities | $ | 579 | $ | 88 |
Maturity Date | December 30, 2017 | September 30, 2017 | ||||||||||||||||
Term loan | February 2020 | $ | 900 | $ | 1,000 | |||||||||||||
Facility | Maturity Date | June 27, 2020 | September 28, 2019 | |||||||||||||||
Term loan | January 2021 | 814 | 814 | October 2022 | $ | 1,545 | $ | 1,545 | ||||||||||
Term loan | October 2022 | 1,645 | 1,645 | January 2024 | 450 | 489 | ||||||||||||
Term loan | January 2024 | 496 | 498 | July 2026 | 4,218 | 4,250 | ||||||||||||
Revolving line of credit | May 2020 | — | — | May 2024 | — | — | ||||||||||||
5 1/8% Second Priority Senior Secured Notes | July 2023 | 700 | 700 | |||||||||||||||
5 1/2% Second Priority Senior Secured Notes | May 2022 | 500 | 500 | |||||||||||||||
6% Second Priority Senior Secured Notes | October 2022 | 400 | 400 | |||||||||||||||
5.50% Second Priority Senior Secured Notes | May 2022 | 150 | 500 | |||||||||||||||
6.00% Second Priority Senior Secured Notes | October 2022 | 200 | 400 | |||||||||||||||
5.125% Second Priority Senior Secured Notes | July 2023 | 700 | 700 | |||||||||||||||
1.00% First Priority Senior Secured Notes(a) | July 2025 | 786 | — | |||||||||||||||
4.50% Second Priority Senior Secured Notes | February 2026 | 500 | 500 | |||||||||||||||
4.875% First Priority Senior Secured Notes | July 2026 | 1,250 | 1,250 | |||||||||||||||
5.625% Second Priority Senior Secured Notes | July 2027 | 500 | 500 | |||||||||||||||
1.50% First Priority Senior Secured Notes(a) | July 2027 | 421 | — | |||||||||||||||
Debt discounts and deferred fees | (46 | ) | (48 | ) | (92 | ) | (112 | ) | ||||||||||
Capital leases and other | Various | 127 | 132 | |||||||||||||||
Finance leases and other | Various | 132 | 167 | |||||||||||||||
Retired debt | — | 1,176 | ||||||||||||||||
Total long-term debt | 5,536 | 5,641 | 10,760 | 11,365 | ||||||||||||||
Current portion of long-term debt | (34 | ) | (33 | ) | (70 | ) | (104 | ) | ||||||||||
Long-term debt, less current portion | $ | 5,502 | $ | 5,608 | $ | 10,690 | 11,261 |
Derivatives Instruments | Hedge Designation | Balance Sheet Location | December 30, 2017 | September 30, 2017 | ||||||||||||||||
Derivative Instruments | Hedge Designation | Balance Sheet Location | June 27, 2020 | September 28, 2019 | ||||||||||||||||
Cross-currency swaps | Designated | Other assets | $ | — | $ | 88 | ||||||||||||||
Cross-currency swaps | Designated | Other long-term liabilities | $ | 15 | $ | — | Designated | Other long-term liabilities | 153 | — | ||||||||||
Interest rate swaps | Designated | Other assets | 7 | 1 | Designated | Other long-term liabilities | 228 | 81 | ||||||||||||
Interest rate swaps | Not designated | Other assets | 8 | 13 | ||||||||||||||||
Interest rate swaps | Designated | Other long-term liabilities | 1 | 15 | ||||||||||||||||
Interest rate swaps | Not designated | Other long-term liabilities | 10 | 13 |
Quarterly Period Ended | Quarterly Period Ended | Three Quarterly Periods Ended | ||||||||||||||||||||||||
Derivatives instruments | Statement of Operations Location | December 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
Derivative Instruments | Statements of Income Location | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||||
Cross-currency swaps | Interest expense, net | $ | (1 | ) | $ | — | Interest expense, net | $ | (2 | ) | $ | (2 | ) | $ | (5 | ) | $ | (5 | ) | |||||||
Foreign currency swaps | Other expense (income), net | — | 1 | |||||||||||||||||||||||
Cross-currency swaps | Other expense, net | — | 18 | — | 18 | |||||||||||||||||||||
Foreign exchange forward contracts | Other expense, net | — | 120 | — | 138 | |||||||||||||||||||||
Interest rate swaps | Interest expense, net | 2 | 5 | Interest expense, net | 13 | (4 | ) | 17 | (13 | ) |
As of December 30, 2017 | As of June 27, 2020 | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Impairment | Level 1 | Level 2 | Level 3 | Total | Impairment | |||||||||||||||||||||||||||||||
Indefinite-lived trademarks | $ | — | $ | — | $ | 248 | $ | 248 | $ | — | $ | — | $ | — | $ | 248 | $ | 248 | $ | — | ||||||||||||||||||||
Goodwill | — | — | 2,777 | 2,777 | — | — | — | 5,184 | 5,184 | — | ||||||||||||||||||||||||||||||
Definite lived intangible assets | — | — | 999 | 999 | — | — | — | 2,288 | 2,288 | — | ||||||||||||||||||||||||||||||
Property, plant, and equipment | — | — | 2,363 | 2,363 | — | — | — | 4,481 | 4,481 | 2 | ||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 6,387 | $ | 6,387 | $ | — | $ | — | $ | — | $ | 12,201 | $ | 12,201 | $ | 2 |
As of September 30, 2017 | As of September 28, 2019 | |||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Impairment | Level 1 | Level 2 | Level 3 | Total | Impairment | |||||||||||||||||||||||||||||||
Indefinite-lived trademarks | $ | — | $ | — | $ | 248 | $ | 248 | $ | — | $ | — | $ | — | $ | 248 | $ | 248 | $ | — | ||||||||||||||||||||
Goodwill | — | — | 2,775 | 2,775 | — | — | — | 5,051 | 5,051 | — | ||||||||||||||||||||||||||||||
Definite lived intangible assets | — | — | 1,038 | 1,038 | — | — | — | 2,532 | 2,532 | — | ||||||||||||||||||||||||||||||
Property, plant, and equipment | — | — | 2,366 | 2,366 | 2 | — | — | 4,714 | 4,714 | 8 | ||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 6,427 | $ | 6,427 | $ | 2 | $ | — | $ | — | $ | 12,545 | $ | 12,545 | $ | 8 |
Quarterly Period Ended | Quarterly Period Ended | Three Quarterly Periods Ended | ||||||||||||||||||||||
December 30, 2017 | December 31, 2016 | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 1,020 | $ | 52 | $ | 3,125 | $ | 153 | ||||||||||||||||
Consumer Packaging North America | 718 | 652 | 2,104 | 1,892 | ||||||||||||||||||||
Engineered Materials | $ | 648 | $ | 383 | 564 | 630 | 1,747 | 1,910 | ||||||||||||||||
Health, Hygiene & Specialties | 577 | 570 | 608 | 603 | 1,725 | 1,904 | ||||||||||||||||||
Consumer Packaging | 551 | 549 | ||||||||||||||||||||||
Total net sales | $ | 1,776 | $ | 1,502 | $ | 2,910 | $ | 1,937 | $ | 8,701 | $ | 5,859 | ||||||||||||
Operating income: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 89 | $ | (1 | ) | $ | 195 | $ | (2 | ) | ||||||||||||||
Consumer Packaging North America | 93 | 73 | 226 | 168 | ||||||||||||||||||||
Engineered Materials | $ | 88 | $ | 53 | 81 | 83 | 239 | 250 | ||||||||||||||||
Health, Hygiene & Specialties | 37 | 59 | 84 | 60 | 170 | 160 | ||||||||||||||||||
Consumer Packaging | 38 | 34 | ||||||||||||||||||||||
Total operating income | $ | 163 | $ | 146 | $ | 347 | $ | 215 | $ | 830 | $ | 576 | ||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||
Consumer Packaging International | $ | 79 | $ | 4 | $ | 240 | $ | 12 | ||||||||||||||||
Consumer Packaging North America | 62 | 50 | 190 | 156 | ||||||||||||||||||||
Engineered Materials | $ | 29 | $ | 17 | 25 | 27 | 80 | 87 | ||||||||||||||||
Health, Hygiene & Specialties | 46 | 44 | 43 | 46 | 128 | 142 | ||||||||||||||||||
Consumer Packaging | 54 | 59 | ||||||||||||||||||||||
Total depreciation and amortization | $ | 129 | $ | 120 | $ | 209 | $ | 127 | $ | 638 | $ | 397 |
December 30, 2017 | September 30, 2017 | |||||||
Total assets: | ||||||||
Engineered Materials | $ | 1,753 | $ | 1,803 | ||||
Health, Hygiene & Specialties | 3,475 | 3,496 | ||||||
Consumer Packaging | 3,192 | 3,177 | ||||||
Total assets | $ | 8,420 | $ | 8,476 |
Quarterly Period Ended | ||||||||
December 30, 2017 | December 31, 2016 | |||||||
Net sales: | ||||||||
North America | $ | 1,466 | $ | 1,204 | ||||
South America | 74 | 80 | ||||||
Europe | 170 | 149 | ||||||
Asia | 66 | 69 | ||||||
Total net sales | $ | 1,776 | $ | 1,502 | ||||
December 30, 2017 | September 30, 2017 | |||||||
Long-lived assets: | ||||||||
North America | $ | 5,313 | $ | 5,350 | ||||
South America | 358 | 371 | ||||||
Europe | 470 | 467 | ||||||
Asia | 298 | 284 | ||||||
Total long-lived assets: | $ | 6,439 | $ | 6,472 |
Quarterly Period Ended | Three Quarterly Periods Ended | |||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||
Net sales: | ||||||||||||||||
United States and Canada | $ | 1,430 | $ | 1,556 | $ | 4,648 | $ | 4,672 | ||||||||
Europe | 1,172 | 200 | 3,156 | 614 | ||||||||||||
Rest of world | 308 | 181 | 897 | 573 | ||||||||||||
Total net sales | $ | 2,910 | $ | 1,937 | $ | 8,701 | $ | 5,859 |
Quarterly Period Ended | Quarterly Period Ended | Three Quarterly Periods Ended | ||||||||||||||||||||||
December 30, 2017 | December 31, 2016 | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||||
Net sales: | ||||||||||||||||||||||||
Performance Materials | 45 | 73 | ||||||||||||||||||||||
Engineered Products | 55 | 27 | ||||||||||||||||||||||
Packaging | 84 | 100 | 82 | 100 | ||||||||||||||||||||
Non-packaging | 16 | — | 18 | — | ||||||||||||||||||||
Consumer Packaging International | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Rigid Open Top | 44 | 47 | 45 | 45 | ||||||||||||||||||||
Rigid Closed Top | 56 | 53 | 55 | 55 | ||||||||||||||||||||
Consumer Packaging North America | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Core Films | 38 | 40 | 38 | 40 | ||||||||||||||||||||
Retail & Industrial | 62 | 60 | 62 | 60 | ||||||||||||||||||||
Engineered Materials | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Health | 19 | 20 | 22 | 15 | 19 | 15 | ||||||||||||||||||
Hygiene | 44 | 46 | 52 | 52 | 53 | 54 | ||||||||||||||||||
Specialties | 37 | 34 | 26 | 33 | 28 | 31 | ||||||||||||||||||
Health, Hygiene & Specialties | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Rigid Open Top | 43 | 42 | ||||||||||||||||||||||
Rigid Closed Top | 57 | 58 | ||||||||||||||||||||||
Consumer Packaging | 100 | % | 100 | % |
Engineered Materials | Health, Hygiene & Specialties | Consumer Packaging | Total | |||||||||||||
Balance as of September 30, 2017 | $ | 545 | $ | 819 | $ | 1,411 | $ | 2,775 | ||||||||
Acquisitions, net | 4 | — | — | 4 | ||||||||||||
Foreign currency translation adjustment | — | (2 | ) | — | (2 | ) | ||||||||||
Balance as of December 30, 2017 | $ | 549 | $ | 817 | $ | 1,411 | $ | 2,777 |
Quarterly Period Ended | Quarterly Period Ended | Three Quarterly Periods Ended | ||||||||||||||||||||||
(in millions, except per share amounts) | December 30, 2017 | December 31, 2016 | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Consolidated net income | $ | 163 | $ | 51 | $ | 191 | $ | 13 | $ | 364 | $ | 175 | ||||||||||||
Denominator | ||||||||||||||||||||||||
Weighted average common shares outstanding - basic | 131.0 | 122.0 | 132.5 | 131.5 | 132.4 | 131.0 | ||||||||||||||||||
Dilutive shares | 5.0 | 5.8 | 1.7 | 2.7 | 1.9 | 3.0 | ||||||||||||||||||
Weighted average common and common equivalent shares outstanding - diluted | 136.0 | 127.8 | 134.2 | 134.2 | 134.3 | 134.0 | ||||||||||||||||||
Per common share income | ||||||||||||||||||||||||
Basic | $ | 1.24 | $ | 0.42 | $ | 1.44 | $ | 0.10 | $ | 2.75 | $ | 1.34 | ||||||||||||
Diluted | $ | 1.20 | $ | 0.40 | $ | 1.42 | $ | 0.10 | $ | 2.71 | $ | 1.31 |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Interest Rate Swaps | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at September 30, 2017 | $ | (48 | ) | $ | (16 | ) | $ | (4 | ) | $ | (68 | ) | ||||
Other comprehensive income (loss) before reclassifications | (24 | ) | (1 | ) | 14 | (11 | ) | |||||||||
Net amount reclassified from accumulated other comprehensive income (loss) | — | — | 3 | 3 | ||||||||||||
Provision for income taxes | — | — | (4 | ) | (4 | ) | ||||||||||
Balance at December 30, 2017 | $ | (72 | ) | $ | (17 | ) | $ | 9 | $ | (80 | ) |
Quarterly Period Ended | 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 income (loss), net of tax before reclassifications | 11 | — | (23 | ) | (12 | ) | ||||||||||
Net amount reclassified from accumulated other comprehensive loss | — | — | 10 | 10 | ||||||||||||
Balance at June 27, 2020 | $ | (333 | ) | $ | (57 | ) | $ | (160 | ) | $ | (550 | ) |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Interest Rate Swaps | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at October 1, 2016 | $ | (82 | ) | $ | (44 | ) | $ | (22 | ) | $ | (148 | ) | ||||
Other comprehensive income (loss) before reclassifications | (45 | ) | — | 12 | (33 | ) | ||||||||||
Net amount reclassified from accumulated other comprehensive income (loss) | — | — | 5 | 5 | ||||||||||||
Provision for income taxes | — | — | (6 | ) | (6 | ) | ||||||||||
Balance at December 31, 2016 | $ | (127 | ) | $ | (44 | ) | $ | (11 | ) | $ | (182 | ) |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Derivative Instruments | Accumulated Other Comprehensive Loss | |||||||||||||
Balance at March 30, 2019 | $ | (173 | ) | $ | (13 | ) | $ | — | $ | (186 | ) | |||||
Other comprehensive income (loss), net of tax before reclassifications | 10 | — | (32 | ) | (22 | ) | ||||||||||
Net amount reclassified from accumulated other comprehensive loss | — | — | (3 | ) | (3 | ) | ||||||||||
Balance at June 29, 2019 | $ | (163 | ) | $ | (13 | ) | $ | (35 | ) | $ | (211 | ) |
Three Quarterly Periods Ended | 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, net of tax before reclassifications | (54 | ) | (1 | ) | (126 | ) | (181 | ) | ||||||||
Net amount reclassified from accumulated other comprehensive loss | — | — | 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 29, 2018 | $ | (175 | ) | $ | (13 | ) | $ | 32 | $ | (156 | ) | |||||
Other comprehensive income (loss), net of tax before reclassifications | 12 | — | (59 | ) | (47 | ) | ||||||||||
Net amount reclassified from accumulated other comprehensive loss | — | — | (8 | ) | (8 | ) | ||||||||||
Balance at June 29, 2019 | $ | (163 | ) | $ | (13 | ) | $ | (35 | ) | $ | (211 | ) |
December 30, 2017 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non— Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Current assets | — | 126 | 1,127 | 728 | — | 1,981 | ||||||||||||||||||
Intercompany receivable | 334 | 2,286 | — | — | (2,620 | ) | — | |||||||||||||||||
Property, plant, and equipment, net | — | 73 | 1,564 | 726 | — | 2,363 | ||||||||||||||||||
Other assets | 1,152 | 5,401 | 4,555 | 528 | (7,560 | ) | 4,076 | |||||||||||||||||
Total assets | $ | 1,486 | $ | 7,886 | $ | 7,246 | $ | 1,982 | $ | (10,180 | ) | $ | 8,420 | |||||||||||
Current liabilities | 24 | 279 | 560 | 291 | — | 1,154 | ||||||||||||||||||
Intercompany payable | — | — | 2,571 | 49 | (2,620 | ) | — | |||||||||||||||||
Other long-term liabilities | 288 | 5,649 | 90 | 65 | — | 6,092 | ||||||||||||||||||
Stockholders' equity | 1,174 | 1,958 | 4,025 | 1,577 | (7,560 | ) | 1,174 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,486 | $ | 7,886 | $ | 7,246 | $ | 1,982 | $ | (10,180 | ) | $ | 8,420 |
September 30, 2017 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non— Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Current assets | — | 116 | 1,113 | 775 | — | 2,004 | ||||||||||||||||||
Intercompany receivable | 512 | 2,217 | — | — | (2,729 | ) | — | |||||||||||||||||
Property, plant and equipment, net | — | 80 | 1,564 | 722 | — | 2,366 | ||||||||||||||||||
Other assets | 992 | 5,335 | 4,583 | 533 | (7,337 | ) | 4,106 | |||||||||||||||||
Total assets | $ | 1,504 | $ | 7,748 | $ | 7,260 | $ | 2,030 | $ | (10,066 | ) | $ | 8,476 | |||||||||||
Current liabilities | 36 | 243 | 537 | 318 | — | 1,134 | ||||||||||||||||||
Intercompany payable | — | — | 2,667 | 62 | (2,729 | ) | — | |||||||||||||||||
Other long-term liabilities | 453 | 5,707 | 99 | 68 | — | 6,327 | ||||||||||||||||||
Stockholders' equity | 1,015 | 1,798 | 3,957 | 1,582 | (7,337 | ) | 1,015 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,504 | $ | 7,748 | $ | 7,260 | $ | 2,030 | $ | (10,066 | ) | $ | 8,476 |
Quarterly Period Ended December 30, 2017 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Net sales | $ | — | $ | 138 | $ | 1,225 | $ | 413 | $ | — | $ | 1,776 | ||||||||||||
Cost of goods sold | — | 106 | 989 | 352 | — | 1,447 | ||||||||||||||||||
Selling, general and administrative | — | 12 | 80 | 25 | — | 117 | ||||||||||||||||||
Amortization of intangibles | — | — | 31 | 7 | — | 38 | ||||||||||||||||||
Restructuring and impairment charges | — | — | 7 | 4 | — | 11 | ||||||||||||||||||
Operating income | — | 20 | 118 | 25 | — | 163 | ||||||||||||||||||
Other expense (income), net | — | 5 | 7 | (3 | ) | — | 9 | |||||||||||||||||
Interest expense, net | — | 5 | 43 | 14 | — | 62 | ||||||||||||||||||
Equity in net income of subsidiaries | (92 | ) | (72 | ) | — | — | 164 | — | ||||||||||||||||
Income before income taxes | 92 | 82 | 68 | 14 | (164 | ) | 92 | |||||||||||||||||
Income tax expense | (71 | ) | (81 | ) | — | 10 | 71 | (71 | ) | |||||||||||||||
Consolidated net income | $ | 163 | $ | 163 | $ | 68 | $ | 4 | $ | (235 | ) | $ | 163 | |||||||||||
Comprehensive net income | $ | 163 | $ | 160 | $ | 68 | $ | (5 | ) | $ | (235 | ) | $ | 151 | ||||||||||
Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Cash Flow from Operating Activities | $ | — | $ | 35 | $ | 139 | $ | (21 | ) | $ | — | $ | 153 | |||||||||||
Cash Flow from Investing Activities | ||||||||||||||||||||||||
Additions to property, plant, and equipment | — | (3 | ) | (61 | ) | (30 | ) | — | (94 | ) | ||||||||||||||
Proceeds from sale of assets | — | — | — | 3 | — | 3 | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries | (4 | ) | 4 | — | — | — | — | |||||||||||||||||
Intercompany advances (repayments) | — | 69 | — | — | (69 | ) | — | |||||||||||||||||
Net cash from investing activities | (4 | ) | 70 | (61 | ) | (27 | ) | (69 | ) | (91 | ) | |||||||||||||
Cash Flow from Financing Activities | ||||||||||||||||||||||||
Repayments on long-term borrowings | — | (106 | ) | (2 | ) | — | — | (108 | ) | |||||||||||||||
Proceeds from issuance of common stock | 4 | — | — | — | — | 4 | ||||||||||||||||||
Payment of tax receivable agreement | (37 | ) | — | — | — | — | (37 | ) | ||||||||||||||||
Changes in intercompany balances | 37 | — | (86 | ) | (20 | ) | 69 | — | ||||||||||||||||
Net cash from financing activities | 4 | (106 | ) | (88 | ) | (20 | ) | 69 | (141 | ) | ||||||||||||||
Effect of exchange rate changes on cash | — | — | — | 1 | — | 1 | ||||||||||||||||||
Net change in cash | — | (1 | ) | (10 | ) | (67 | ) | — | (78 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 18 | 12 | 276 | — | 306 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 17 | $ | 2 | $ | 209 | $ | — | $ | 228 |
Quarterly Period Ended December 31, 2016 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non— Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Net sales | $ | — | $ | 143 | $ | 979 | $ | 380 | $ | — | $ | 1,502 | ||||||||||||
Cost of goods sold | — | 116 | 789 | 301 | — | 1,206 | ||||||||||||||||||
Selling, general and administrative | — | 42 | 75 | (4 | ) | — | 113 | |||||||||||||||||
Amortization of intangibles | — | 2 | 25 | 6 | — | 33 | ||||||||||||||||||
Restructuring and impairment charges | — | — | 4 | — | — | 4 | ||||||||||||||||||
Operating income (loss) | — | (17 | ) | 86 | 77 | — | 146 | |||||||||||||||||
Other income, net | — | 4 | — | (5 | ) | — | (1 | ) | ||||||||||||||||
Interest expense, net | — | 6 | 45 | 17 | — | 68 | ||||||||||||||||||
Equity in net income of subsidiaries | (79 | ) | (92 | ) | — | — | 171 | — | ||||||||||||||||
Income before income taxes | 79 | 65 | 41 | 65 | (171 | ) | 79 | |||||||||||||||||
Income tax expense | 28 | 14 | — | 14 | (28 | ) | 28 | |||||||||||||||||
Consolidated net income | $ | 51 | $ | 51 | $ | 41 | $ | 51 | $ | (143 | ) | $ | 51 | |||||||||||
Comprehensive net income | $ | 51 | $ | 62 | $ | 41 | $ | 6 | $ | (143 | ) | $ | 17 |
Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Cash Flow from Operating Activities | $ | — | $ | (19 | ) | $ | 120 | $ | 42 | $ | — | $ | 143 | |||||||||||
Cash Flow from Investing Activities | ||||||||||||||||||||||||
Additions to property, plant, and equipment | — | (2 | ) | (50 | ) | (13 | ) | — | (65 | ) | ||||||||||||||
Proceeds from sale of assets | — | 1 | 1 | — | — | 2 | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries | (5 | ) | 5 | — | — | — | — | |||||||||||||||||
Intercompany advances (repayments) | — | 39 | — | — | (39 | ) | — | |||||||||||||||||
Other investing activities, net | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||
Net cash from investing activities | (5 | ) | 42 | (49 | ) | (13 | ) | (39 | ) | (64 | ) | |||||||||||||
Cash Flow from Financing Activities | ||||||||||||||||||||||||
Repayments on long-term borrowings | — | (9 | ) | (1 | ) | — | — | (10 | ) | |||||||||||||||
Proceeds from issuance of common stock | 5 | — | — | — | — | 5 | ||||||||||||||||||
Payment of tax receivable agreement | (60 | ) | — | — | — | — | (60 | ) | ||||||||||||||||
Changes in intercompany balances | 60 | — | (67 | ) | (32 | ) | 39 | — | ||||||||||||||||
Net cash from financing activities | 5 | (9 | ) | (68 | ) | (32 | ) | 39 | (65 | ) | ||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||
Net change in cash | — | 14 | 3 | (9 | ) | — | 8 | |||||||||||||||||
Cash and cash equivalents at beginning of period | — | 102 | 5 | 216 | — | 323 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 116 | $ | 8 | $ | 207 | $ | — | $ | 331 |
Polyethylene Butene Film | Polypropylene | |||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||
1st quarter | $ | .58 | $ | .64 | $ | .68 | $ | .58 | $ | .76 | $ | .71 | ||||||||||||
2nd quarter | .59 | .61 | .69 | .53 | .63 | .75 | ||||||||||||||||||
3rd quarter | .56 | .63 | .68 | .48 | .62 | .76 | ||||||||||||||||||
4th quarter | — | .59 | .66 | — | .62 | .85 |
Polyethylene Butene Film | Polypropylene | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||||
1st quarter | $ | .87 | $ | .75 | $ | .69 | $ | .84 | $ | .69 | $ | .70 | ||||||||||||
2nd quarter | — | .77 | .66 | — | .80 | .75 | ||||||||||||||||||
3rd quarter | — | .79 | .73 | — | .74 | .71 | ||||||||||||||||||
4th quarter | — | .81 | .75 | — | .75 | .71 |
Consolidated Overview | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 1,776 | $ | 1,502 | $ | 274 | 18 | % | $ | 2,910 | $ | 1,937 | $ | 973 | 50 | % | ||||||||||||||||
Operating income | $ | 163 | $ | 146 | $ | 17 | 12 | % | $ | 347 | $ | 215 | $ | 132 | 61 | % | ||||||||||||||||
Operating income percentage of net sales | 9 | % | 10 | % | 12 | % | 11 | % |
Consumer Packaging International | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 1,020 | $ | 52 | $ | 968 | — | |||||||||
Operating income (loss) | $ | 89 | $ | (1 | ) | $ | 90 | — | ||||||||
Operating income percentage of net sales | 9 | % | (2 | )% |
Consumer Packaging North America | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 718 | $ | 652 | $ | 66 | 10 | % | ||||||||
Operating income | $ | 93 | $ | 73 | $ | 20 | 27 | % | ||||||||
Operating income percentage of net sales | 13 | % | 11 | % |
Engineered Materials | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 564 | $ | 630 | $ | (66 | ) | (10 | )% | |||||||
Operating income | $ | 81 | $ | 83 | $ | (2 | ) | (2 | )% | |||||||
Operating income percentage of net sales | 14 | % | 13 | % |
Health, Hygiene & Specialties | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 608 | $ | 603 | $ | 5 | 1 | % | ||||||||
Operating income | $ | 84 | $ | 60 | $ | 24 | 40 | % | ||||||||
Operating income percentage of net sales | 14 | % | 10 | % |
Other (income) expense, net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Other (income) expense, net | $ | (7 | ) | $ | 136 | $ | (143 | ) | (105 | )% |
Interest expense, net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Interest expense, net | $ | 110 | $ | 71 | $ | 39 | 55 | % |
Income tax expense (benefit) | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Income tax expense (benefit) | $ | 53 | $ | (5 | ) | $ | 58 | — |
Consolidated Overview | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 8,701 | $ | 5,859 | $ | 2,842 | 49 | % | ||||||||
Operating income | $ | 830 | $ | 576 | $ | 254 | 44 | % | ||||||||
Operating income percentage of net sales | 10 | % | 10 | % |
Consumer Packaging International | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 3,125 | $ | 153 | $ | 2,972 | — | |||||||||
Operating income | $ | 195 | $ | (2 | ) | $ | 197 | — | ||||||||
Operating income percentage of net sales | 6 | % | (1 | )% |
Consumer Packaging North America | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 2,104 | $ | 1,892 | $ | 212 | 11 | % | ||||||||
Operating income | $ | 226 | $ | 168 | $ | 58 | 35 | % | ||||||||
Operating income percentage of net sales | 11 | % | 9 | % |
Engineered Materials | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 1,747 | $ | 1,910 | $ | (163 | ) | (9 | )% | |||||||
Operating income | $ | 239 | $ | 250 | $ | (11 | ) | (4 | )% | |||||||
Operating income percentage of net sales | 14 | % | 13 | % |
Health, Hygiene & Specialties | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Net sales | $ | 1,725 | $ | 1,904 | $ | (179 | ) | (9 | )% | |||||||
Operating income | $ | 170 | $ | 160 | $ | 10 | 6 | % | ||||||||
Operating income percentage of net sales | 10 | % | 8 | % |
Engineered Materials | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 648 | $ | 383 | $ | 265 | 69 | % | ||||||||
Operating income | $ | 88 | $ | 53 | $ | 35 | 66 | % | ||||||||
Percentage of net sales | 14 | % | 14 | % |
Other expense, net | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Other expense, net | $ | 6 | $ | 159 | $ | (153 | ) | (105 | )% |
Health, Hygiene & Specialties | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 577 | $ | 570 | $ | 7 | 1 | % | ||||||||
Operating income | $ | 37 | $ | 59 | $ | (22 | ) | (37 | %) | |||||||
Percentage of net sales | 6 | % | 10 | % |
Consumer Packaging | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 551 | $ | 549 | $ | 2 | 0 | % | ||||||||
Operating income | $ | 38 | $ | 34 | $ | 4 | 12 | % | ||||||||
Percentage of net sales | 7 | % | 6 | % |
Other expense (income), net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Other expense (income), net | $ | 9 | $ | (1 | ) | $ | 10 | 1,000 | % |
Interest expense, net | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | YTD | Prior YTD | $ Change | % Change | |||||||||||||||||||||||||
Interest expense, net | $ | 62 | $ | 68 | $ | (6 | ) | (9 | %) | $ | 339 | $ | 201 | $ | 138 | 69 | % |
Income tax expense (benefit) | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Income tax expense (benefit) | $ | (71 | ) | $ | 28 | $ | (99 | ) | (354 | %) |
Income tax expense | ||||||||||||||||
YTD | Prior YTD | $ Change | % Change | |||||||||||||
Income tax expense | $ | 121 | $ | 41 | $ | 80 | 195 | % |
Quarterly Period Ended | Three Quarterly Periods Ended | |||||||||||
December 30, 2017 | December 31, 2016 | June 27, 2020 | ||||||||||
Cash flow from operating activities | $ | 153 | $ | 143 | $ | 979 | ||||||
Additions to property, plant and equipment, net | (91 | ) | (63 | ) | (419 | ) | ||||||
Payments of tax receivable agreement | (37 | ) | (60 | ) | ||||||||
Adjusted free cash flow | $ | 25 | $ | 20 | ||||||||
Free cash flow | $ | 560 |
Three Quarterly Periods Ended | ||||
June 27, 2020 | ||||
Net sales | $ | 4,361 | ||
Gross profit | 932 | |||
Earnings from continuing operations | 189 | |||
Net income | $ | 189 |
June 27, 2020 | September 28, 2019 | |||||||
Assets | ||||||||
Current assets | $ | 1,674 | $ | 1,237 | ||||
Noncurrent assets | 6,339 | 5,088 | ||||||
Liabilities | ||||||||
Current liabilities | $ | 915 | $ | 862 | ||||
Noncurrent liabilities | 12,391 | 11,915 |
(b) Changes in internal controls. |
● | risks associated with our substantial indebtedness and debt service; |
● | changes in prices and availability of resin and other raw materials and our ability to pass on changes in raw material prices to our customers on a timely basis; |
● | risks related to |
● | risk related to international business, including as a result of the RPC transaction, including foreign currency exchange rate risk and the risks of compliance with applicable export controls, sanctions, anti-corruption laws and regulations; |
● | uncertainty regarding the United Kingdom’s withdrawal from the European Union and the outcome of future arrangements between the United Kingdom and the European Union; |
● | reliance on unpatented proprietary know-how and trade secrets; |
● | the phase-out of the London Interbank Offered Rate (LIBOR), or the replacement of LIBOR with a different reference rate or modification of the method used to calculate LIBOR, which may adversely affect interest rates; |
● | increases in the cost of compliance with laws and regulations, including environmental, safety, |
● | employee shutdowns or strikes or the failure to renew effective bargaining agreements; |
● | risks related to disruptions in the overall economy and the financial markets that may adversely impact our |
● | risk of catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions; |
● | risks related to the failure of, inadequacy of, or cybersecurity attacks on our information technology systems and infrastructure; |
● | risks related to market acceptance of our developing technologies and products; |
● | general business and economic conditions, particularly an economic downturn; |
● | risks that our restructuring |
● |
● | risks related to future write-offs of our substantial goodwill; |
● | risks of competition, including foreign competition, in our existing and future markets; |
● | new legislation or new regulations and the Company's corresponding interpretations of either may affect our business and consolidated financial condition and results of operations; and |
● | the other factors discussed in our most recent Form 10-K and in this Form 10-Q in the section titled "Risk Factors." |
Description of Exhibit | ||
31.1* | ||
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. | |
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data | ||
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). |
Berry Global Group, Inc. | |||
By: | /s/ Mark W. Miles | ||
Mark W. Miles | |||
Chief Financial Officer |