A Delaware corporation | 101 Oakley Street, Evansville, Indiana, 47710 (812) 424-2904 | IRS employer identification number 20-5234618 |
Class | Outstanding at February | |
Common Stock, $.01 par value per share |
Part I. | Financial Information | Page No. | |
Consolidated Statements of Income and Comprehensive Income | 4 | ||
Part II. | Other Information | ||
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||
December 30, 2017 | December 31, 2016 | December 29, 2018 | December 30, 2017 | |||||||||||||
Net sales | $ | 1,776 | $ | 1,502 | $ | 1,972 | $ | 1,776 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of goods sold | 1,447 | 1,206 | 1,619 | 1,447 | ||||||||||||
Selling, general and administrative | 117 | 113 | 124 | 117 | ||||||||||||
Amortization of intangibles | 38 | 33 | 42 | 38 | ||||||||||||
Restructuring and impairment charges | 11 | 4 | 11 | 11 | ||||||||||||
Operating income | 163 | 146 | 176 | 163 | ||||||||||||
Other expense (income), net | 9 | (1 | ) | |||||||||||||
Other (income) expense, net | — | 9 | ||||||||||||||
Interest expense, net | 62 | 68 | 64 | 62 | ||||||||||||
Income before income taxes | 92 | 79 | 112 | 92 | ||||||||||||
Income tax expense (benefit) | (71 | ) | 28 | 24 | (71 | ) | ||||||||||
Net income | $ | 163 | $ | 51 | $ | 88 | $ | 163 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 1.24 | $ | 0.42 | $ | 0.67 | $ | 1.24 | ||||||||
Diluted | 1.20 | 0.40 | 0.66 | 1.20 | ||||||||||||
Outstanding weighted-average shares: | ||||||||||||||||
Basic | 131.0 | 122.0 | 131.1 | 131.0 | ||||||||||||
Diluted | 136.0 | 127.8 | 133.8 | 136.0 |
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||
December 30, 2017 | December 31, 2016 | December 29, 2018 | December 30, 2017 | |||||||||||||
Net income | $ | 163 | $ | 51 | $ | 88 | $ | 163 | ||||||||
Currency translation | (24 | ) | (45 | ) | (4 | ) | (24 | ) | ||||||||
Pension and other postretirement benefits | (1 | ) | — | — | (1 | ) | ||||||||||
Interest rate hedges | 17 | 17 | (24 | ) | 17 | |||||||||||
Provision for income taxes | (4 | ) | (6 | ) | 7 | (4 | ) | |||||||||
Other comprehensive loss, net of tax | (12 | ) | (34 | ) | (21 | ) | (12 | ) | ||||||||
Comprehensive income | $ | 151 | $ | 17 | $ | 67 | $ | 151 |
December 30, 2017 | September 30, 2017 | December 29, 2018 | September 29, 2018 | |||||||||||||
Assets | (Unaudited) | (Unaudited) | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 228 | $ | 306 | $ | 293 | $ | 381 | ||||||||
Accounts receivable (less allowance of $13) | 780 | 847 | 879 | 941 | ||||||||||||
Inventories: | ||||||||||||||||
Finished goods | 498 | 428 | 545 | 503 | ||||||||||||
Raw materials and supplies | 380 | 334 | 411 | 384 | ||||||||||||
878 | 762 | 956 | 887 | |||||||||||||
Prepaid expenses and other current assets | 95 | 89 | 78 | 76 | ||||||||||||
Total current assets | 1,981 | 2,004 | 2,206 | 2,285 | ||||||||||||
Property, plant, and equipment, net | 2,363 | 2,366 | 2,457 | 2,488 | ||||||||||||
Goodwill and intangible assets, net | 4,024 | 4,061 | 4,243 | 4,284 | ||||||||||||
Other assets | 52 | 45 | 66 | 74 | ||||||||||||
Total assets | $ | 8,420 | $ | 8,476 | $ | 8,972 | $ | 9,131 | ||||||||
Liabilities | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 666 | $ | 638 | $ | 715 | $ | 783 | ||||||||
Accrued expenses and other current liabilities | 454 | 463 | 427 | 416 | ||||||||||||
Current portion of long-term debt | 34 | 33 | 37 | 38 | ||||||||||||
Total current liabilities | 1,154 | 1,134 | 1,179 | 1,237 | ||||||||||||
Long-term debt, less current portion | 5,502 | 5,608 | 5,700 | 5,806 | ||||||||||||
Deferred income taxes | 276 | 419 | 357 | 365 | ||||||||||||
Other long-term liabilities | 314 | 300 | 281 | 289 | ||||||||||||
Total liabilities | 7,246 | 7,461 | 7,517 | 7,697 | ||||||||||||
Stockholders' equity | ||||||||||||||||
Common stock (131.1 and 130.9 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Common stock (130.6 and 131.4 million shares issued, respectively) | 1 | 1 | ||||||||||||||
Additional paid-in capital | 831 | 823 | 873 | 867 | ||||||||||||
Non-controlling interest | 3 | 3 | 3 | 3 | ||||||||||||
Retained earnings | 419 | 256 | 755 | 719 | ||||||||||||
Accumulated other comprehensive loss | (80 | ) | (68 | ) | (177 | ) | (156 | ) | ||||||||
Total stockholders' equity | 1,174 | 1,015 | 1,455 | 1,434 | ||||||||||||
Total liabilities and stockholders' equity | $ | 8,420 | $ | 8,476 | $ | 8,972 | $ | 9,131 |
Quarterly Period Ended | ||||||||
December 30, 2017 | December 31, 2016 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 163 | $ | 51 | ||||
Adjustments to reconcile net cash provided by operating activities: | ||||||||
Depreciation | 91 | 87 | ||||||
Amortization of intangibles | 38 | 33 | ||||||
Non-cash interest expense | 3 | 1 | ||||||
Deferred income tax | (121 | ) | 14 | |||||
Stock compensation expense | 4 | 3 | ||||||
Other non-cash operating activities, net | 6 | (1 | ) | |||||
Changes in working capital | (66 | ) | (43 | ) | ||||
Changes in other assets and liabilities | 35 | (2 | ) | |||||
Net cash from operating activities | 153 | 143 | ||||||
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 | ) | |||||
Net cash from investing activities | (91 | ) | (64 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Repayments on long-term borrowings | (108 | ) | (10 | ) | ||||
Proceeds from issuance of common stock | 4 | 5 | ||||||
Payment of tax receivable agreement | (37 | ) | (60 | ) | ||||
Net cash from financing activities | (141 | ) | (65 | ) | ||||
Effect of exchange rate changes on cash | 1 | (6 | ) | |||||
Net change in cash | (78 | ) | 8 | |||||
Cash and cash equivalents at beginning of period | 306 | 323 | ||||||
Cash and cash equivalents at end of period | $ | 228 | $ | 331 |
Common Stock | Additional Paid-in Capital | Non-Controlling Interest | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||
Balance at September 30, 2017 | $ | 1 | $ | 823 | $ | 3 | $ | (68 | ) | $ | 256 | $ | 1,015 | |||||||||||
Share-based compensation expense | — | 4 | — | — | — | 4 | ||||||||||||||||||
Proceeds from issuance of common stock | — | 4 | — | — | — | 4 | ||||||||||||||||||
Interest rate hedges, net of tax | — | — | — | 13 | — | 13 | ||||||||||||||||||
Net income attributable to the Company | — | — | — | — | 163 | 163 | ||||||||||||||||||
Currency translation | — | — | — | (24 | ) | — | (24 | ) | ||||||||||||||||
Pension | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Balance at December 30, 2017 | $ | 1 | $ | 831 | $ | 3 | $ | (80 | ) | $ | 419 | $ | 1,174 | |||||||||||
Balance at September 29, 2018 | $ | 1 | $ | 867 | $ | 3 | $ | (156 | ) | $ | 719 | $ | 1,434 | |||||||||||
Share-based compensation expense | — | 3 | — | — | — | 3 | ||||||||||||||||||
Proceeds from issuance of common stock | — | 5 | — | — | — | 5 | ||||||||||||||||||
Common stock repurchased and retired | — | (2 | ) | — | — | (52 | ) | (54 | ) | |||||||||||||||
Interest rate hedges, net of tax | — | — | — | (17 | ) | — | (17 | ) | ||||||||||||||||
Net income attributable to the Company | — | — | — | — | 88 | 88 | ||||||||||||||||||
Currency translation | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||
Balance at December 29, 2018 | $ | 1 | $ | 873 | $ | 3 | $ | (177 | ) | $ | 755 | $ | 1,455 |
Quarterly Period Ended | ||||||||
December 29, 2018 | December 30, 2017 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 88 | $ | 163 | ||||
Adjustments to reconcile net cash provided by operating activities: | ||||||||
Depreciation | 96 | 91 | ||||||
Amortization of intangibles | 42 | 38 | ||||||
Non-cash interest expense | (1 | ) | 3 | |||||
Deferred income tax | 4 | (121 | ) | |||||
Share-based compensation expense | 3 | 4 | ||||||
Other non-cash operating activities, net | 4 | 6 | ||||||
Changes in working capital | (71 | ) | (66 | ) | ||||
Changes in other assets and liabilities | (4 | ) | 35 | |||||
Net cash from operating activities | 161 | 153 | ||||||
Cash Flows from Investing Activities: | ||||||||
Additions to property, plant and equipment | (75 | ) | (94 | ) | ||||
Proceeds from sale of assets | — | 3 | ||||||
Net cash from investing activities | (75 | ) | (91 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Repayments on long-term borrowings | (110 | ) | (108 | ) | ||||
Proceeds from issuance of common stock | 5 | 4 | ||||||
Repurchase of common stock | (52 | ) | — | |||||
Payment of tax receivable agreement | (16 | ) | (37 | ) | ||||
Net cash from financing activities | (173 | ) | (141 | ) | ||||
Effect of exchange rate changes on cash | (1 | ) | 1 | |||||
Net change in cash | (88 | ) | (78 | ) | ||||
Cash and cash equivalents at beginning of period | 381 | 306 | ||||||
Cash and cash equivalents at end of period | $ | 293 | $ | 228 |
1. | Basis of Presentation |
2. Recently Issued Accounting Pronouncements |
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 |
Working capital (a) | $ | 70 | ||
Property and equipment | 164 | |||
Intangible assets | 125 | |||
Goodwill | 111 | |||
Other assets and long-term liabilities | 5 |
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||
December 30, 2017 | December 31, 2016 | December 29, 2018 | December 30, 2017 | |||||||||||||
Consumer Packaging | $ | 1 | $ | 2 | $ | — | $ | 1 | ||||||||
Health, Hygiene & Specialties | 10 | 2 | 10 | 10 | ||||||||||||
Engineered Materials | — | — | 1 | — | ||||||||||||
Consolidated | $ | 11 | $ | 4 | $ | 11 | $ | 11 |
Employee Severance and Benefits | Facility Exit Costs | Total | Employee Severance and Benefits | Facility Exit Costs | Non-cash Impairment Charges | Total | ||||||||||||||||||||||
Balance at September 30, 2017 | $ | 14 | $ | 5 | $ | 19 | ||||||||||||||||||||||
Balance at September 29, 2018 | $ | 9 | 4 | — | $ | 13 | ||||||||||||||||||||||
Charges | 10 | 1 | 11 | 3 | 1 | 7 | 11 | |||||||||||||||||||||
Non-cash asset impairment | — | — | (7 | ) | (7 | ) | ||||||||||||||||||||||
Cash payments | (7 | ) | (1 | ) | (8 | ) | (6 | ) | (1 | ) | — | (7 | ) | |||||||||||||||
Balance at December 30, 2017 | $ | 17 | $ | 5 | $ | 22 | ||||||||||||||||||||||
Balance at December 29, 2018 | $ | 6 | 4 | — | $ | 10 |
December 30, 2017 | September 30, 2017 | December 29, 2018 | September 29, 2018 | |||||||||||||
Employee compensation | $ | 122 | $ | 147 | $ | 106 | $ | 113 | ||||||||
Accrued taxes | 107 | 90 | 79 | 72 | ||||||||||||
Rebates | 59 | 58 | 64 | 58 | ||||||||||||
Interest | 34 | 36 | 43 | 49 | ||||||||||||
Tax receivable agreement obligation | 24 | 35 | 12 | 16 | ||||||||||||
Restructuring | 22 | 19 | 10 | 13 | ||||||||||||
Accrued operating expenses | 86 | 78 | 113 | 95 | ||||||||||||
$ | 454 | $ | 463 | $ | 427 | $ | 416 |
December 30, 2017 | September 30, 2017 | December 29, 2018 | September 29, 2018 | |||||||||||||
Uncertain tax positions | $ | 68 | $ | 67 | ||||||||||||
Deferred purchase price | 43 | 40 | ||||||||||||||
Pension liability | $ | 53 | $ | 56 | 42 | 45 | ||||||||||
Deferred purchase price | 46 | 46 | ||||||||||||||
Lease retirement obligation | 42 | 37 | 40 | 39 | ||||||||||||
Sale-lease back deferred gain | 21 | 21 | ||||||||||||||
Transition tax | 36 | — | 18 | 18 | ||||||||||||
Interest rate swaps | 26 | 27 | ||||||||||||||
Sale-lease back deferred gain | 23 | 24 | ||||||||||||||
Derivative instruments | 13 | 12 | ||||||||||||||
Tax receivable agreement obligation | 13 | 34 | 12 | 23 | ||||||||||||
Other | 75 | 76 | 24 | 24 | ||||||||||||
$ | 314 | $ | 300 | $ | 281 | $ | 289 |
Maturity Date | December 30, 2017 | September 30, 2017 | Maturity Date | December 29, 2018 | September 29, 2018 | |||||||||||||
Term loan | February 2020 | $ | 900 | $ | 1,000 | February 2020 | $ | 700 | $ | 800 | ||||||||
Term loan | January 2021 | 814 | 814 | January 2021 | 814 | 814 | ||||||||||||
Term loan | October 2022 | 1,645 | 1,645 | October 2022 | 1,545 | 1,545 | ||||||||||||
Term loan | January 2024 | 496 | 498 | January 2024 | 493 | 493 | ||||||||||||
Revolving line of credit | May 2020 | — | — | May 2020 | — | — | ||||||||||||
5 1/8% Second Priority Senior Secured Notes | July 2023 | 700 | 700 | |||||||||||||||
5 1/2% Second Priority Senior Secured Notes | May 2022 | 500 | 500 | May 2022 | 500 | 500 | ||||||||||||
6% Second Priority Senior Secured Notes | October 2022 | 400 | 400 | October 2022 | 400 | 400 | ||||||||||||
5 1/8% Second Priority Senior Secured Notes | July 2023 | 700 | 700 | |||||||||||||||
4 1/2% Second Priority Senior Secured Notes | February 2026 | 500 | 500 | |||||||||||||||
Debt discounts and deferred fees | (46 | ) | (48 | ) | (40 | ) | (43 | ) | ||||||||||
Capital leases and other | Various | 127 | 132 | Various | 125 | 135 | ||||||||||||
Total long-term debt | 5,536 | 5,641 | 5,737 | 5,844 | ||||||||||||||
Current portion of long-term debt | (34 | ) | (33 | ) | (37 | ) | (38 | ) | ||||||||||
Long-term debt, less current portion | $ | 5,502 | $ | 5,608 | $ | 5,700 | $ | 5,806 |
9. Financial Instruments and Fair Value Measurements |
Derivatives Instruments | Hedge Designation | Balance Sheet Location | December 30, 2017 | September 30, 2017 | Hedge Designation | Balance Sheet Location | December 29, 2018 | September 29, 2018 | ||||||||||||
Cross-currency swaps | Designated | Other long-term liabilities | $ | 15 | $ | — | Designated | Other long-term liabilities | $ | 3 | $ | 11 | ||||||||
Interest rate swaps | Designated | Other assets | 7 | 1 | Designated | Other assets | 7 | 16 | ||||||||||||
Interest rate swaps | Not designated | Other assets | 8 | 13 | Designated | Other long-term liabilities | 10 | — | ||||||||||||
Interest rate swaps | Designated | Other long-term liabilities | 1 | 15 | Not designated | Other long-term liabilities | — | 1 | ||||||||||||
Interest rate swaps | Not designated | Other long-term liabilities | 10 | 13 |
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||||
Derivatives instruments | Statement of Operations Location | December 30, 2017 | December 31, 2016 | Statement of Operations Location | December 29, 2018 | December 30, 2017 | ||||||||||||
Cross-currency swaps | Interest expense, net | $ | (1 | ) | $ | — | ||||||||||||
Foreign currency swaps | Other expense (income), net | — | 1 | Other (income) expense, net | $ | (4 | ) | $ | 2 | |||||||||
Interest rate swaps | Interest expense, net | 2 | 5 | Interest expense, net | (2 | ) | (1 | ) |
As of December 30, 2017 | As of December 29, 2018 | |||||||||||||||||||||||||||||||||||||||
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 | — | — | — | 2,941 | 2,941 | — | ||||||||||||||||||||||||||||||
Definite lived intangible assets | — | — | 999 | 999 | — | — | — | 1,054 | 1,054 | — | ||||||||||||||||||||||||||||||
Property, plant, and equipment | — | — | 2,363 | 2,363 | — | — | — | 2,457 | 2,457 | 7 | ||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 6,387 | $ | 6,387 | $ | — | $ | — | $ | — | $ | 6,700 | $ | 6,700 | $ | 7 |
As of September 30, 2017 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Impairment | ||||||||||||||||
Indefinite-lived trademarks | $ | — | $ | — | $ | 248 | $ | 248 | $ | — | ||||||||||
Goodwill | — | — | 2,775 | 2,775 | — | |||||||||||||||
Definite lived intangible assets | — | — | 1,038 | 1,038 | — | |||||||||||||||
Property, plant, and equipment | — | — | 2,366 | 2,366 | 2 | |||||||||||||||
Total | $ | — | $ | — | $ | 6,427 | $ | 6,427 | $ | 2 |
As of September 29, 2018 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Impairment | ||||||||||||||||
Indefinite-lived trademarks | $ | — | $ | — | $ | 248 | $ | 248 | $ | — | ||||||||||
Goodwill | — | — | 2,944 | 2,944 | — | |||||||||||||||
Definite lived intangible assets | — | — | 1,092 | 1,092 | — | |||||||||||||||
Property, plant, and equipment | — | — | 2,488 | 2,488 | — | |||||||||||||||
Total | $ | — | $ | — | $ | 6,772 | $ | 6,772 | $ | — |
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||
December 30, 2017 | December 31, 2016 | December 29, 2018 | December 30, 2017 | |||||||||||||
Net sales: | ||||||||||||||||
Engineered Materials | $ | 648 | $ | 383 | $ | 669 | $ | 648 | ||||||||
Health, Hygiene & Specialties | 577 | 570 | 702 | 577 | ||||||||||||
Consumer Packaging | 551 | 549 | 601 | 551 | ||||||||||||
Total net sales | $ | 1,776 | $ | 1,502 | $ | 1,972 | $ | 1,776 | ||||||||
Operating income: | ||||||||||||||||
Engineered Materials | $ | 88 | $ | 53 | $ | 94 | $ | 88 | ||||||||
Health, Hygiene & Specialties | 37 | 59 | 49 | 37 | ||||||||||||
Consumer Packaging | 38 | 34 | 33 | 38 | ||||||||||||
Total operating income | $ | 163 | $ | 146 | $ | 176 | $ | 163 | ||||||||
Depreciation and amortization: | ||||||||||||||||
Engineered Materials | $ | 29 | $ | 17 | $ | 31 | $ | 29 | ||||||||
Health, Hygiene & Specialties | 46 | 44 | 54 | 46 | ||||||||||||
Consumer Packaging | 54 | 59 | 53 | 54 | ||||||||||||
Total depreciation and amortization | $ | 129 | $ | 120 | $ | 138 | $ | 129 |
December 30, 2017 | September 30, 2017 | December 29, 2018 | September 29, 2018 | |||||||||||||
Total assets: | ||||||||||||||||
Engineered Materials | $ | 1,753 | $ | 1,803 | $ | 1,964 | $ | 1,998 | ||||||||
Health, Hygiene & Specialties | 3,475 | 3,496 | 3,811 | 3,913 | ||||||||||||
Consumer Packaging | 3,192 | 3,177 | 3,197 | 3,220 | ||||||||||||
Total assets | $ | 8,420 | $ | 8,476 | $ | 8,972 | $ | 9,131 | ||||||||
Total goodwill: | ||||||||||||||||
Engineered Materials | $ | 630 | $ | 633 | ||||||||||||
Health, Hygiene & Specialties | 903 | 902 | ||||||||||||||
Consumer Packaging | 1,408 | 1,409 | ||||||||||||||
Total goodwill | $ | 2,941 | $ | 2,944 |
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||
December 30, 2017 | December 31, 2016 | December 29, 2018 | December 30, 2017 | |||||||||||||
Net sales: | ||||||||||||||||
North America | $ | 1,466 | $ | 1,204 | $ | 1,605 | $ | 1,466 | ||||||||
South America | 74 | 80 | 96 | 74 | ||||||||||||
Europe | 170 | 149 | 204 | 170 | ||||||||||||
Asia | 66 | 69 | 67 | 66 | ||||||||||||
Total net sales | $ | 1,776 | $ | 1,502 | $ | 1,972 | $ | 1,776 | ||||||||
December 30, 2017 | September 30, 2017 | December 29, 2018 | September 29, 2018 | |||||||||||||
Long-lived assets: | ||||||||||||||||
North America | $ | 5,313 | $ | 5,350 | $ | 5,685 | $ | 5,764 | ||||||||
South America | 358 | 371 | 332 | 320 | ||||||||||||
Europe | 470 | 467 | 451 | 463 | ||||||||||||
Asia | 298 | 284 | 298 | 299 | ||||||||||||
Total long-lived assets: | $ | 6,439 | $ | 6,472 | $ | 6,766 | $ | 6,846 |
Quarterly Period Ended | ||||||||
December 30, 2017 | December 31, 2016 | |||||||
Net sales: | ||||||||
Performance Materials | 45 | 73 | ||||||
Engineered Products | 55 | 27 | ||||||
Engineered Materials | 100 | % | 100 | % | ||||
Health | 19 | 20 | ||||||
Hygiene | 44 | 46 | ||||||
Specialties | 37 | 34 | ||||||
Health, Hygiene & Specialties | 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 | ||||||||
December 29, 2018 | December 30, 2017 | |||||||
Net sales: | ||||||||
Performance Materials | 39 | 43 | ||||||
Engineered Products | 61 | 57 | ||||||
Engineered Materials | 100 | % | 100 | % | ||||
Health | 18 | 19 | ||||||
Hygiene | 52 | 44 | ||||||
Specialties | 30 | 37 | ||||||
Health, Hygiene & Specialties | 100 | % | 100 | % | ||||
Rigid Open Top | 44 | 43 | ||||||
Rigid Closed Top | 56 | 57 | ||||||
Consumer Packaging | 100 | % | 100 | % |
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||
(in millions, except per share amounts) | December 30, 2017 | December 31, 2016 | December 29, 2018 | December 30, 2017 | ||||||||||||
Numerator | ||||||||||||||||
Consolidated net income | $ | 163 | $ | 51 | $ | 88 | $ | 163 | ||||||||
Denominator | ||||||||||||||||
Weighted average common shares outstanding - basic | 131.0 | 122.0 | 131.1 | 131.0 | ||||||||||||
Dilutive shares | 5.0 | 5.8 | 2.7 | 5.0 | ||||||||||||
Weighted average common and common equivalent shares outstanding - diluted | 136.0 | 127.8 | 133.8 | 136.0 | ||||||||||||
Per common share income | ||||||||||||||||
Basic | $ | 1.24 | $ | 0.42 | $ | 0.67 | $ | 1.24 | ||||||||
Diluted | $ | 1.20 | $ | 0.40 | $ | 0.66 | $ | 1.20 |
Currency Translation | Defined Benefit Pension and Retiree Health Benefit Plans | Interest Rate Swaps | Accumulated Other Comprehensive Loss | 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 | ) | ||||||||||||||||||||
Balance at September 29, 2018 | $ | (175 | ) | $ | (13 | ) | $ | 32 | $ | (156 | ) | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (24 | ) | (1 | ) | 14 | (11 | ) | (4 | ) | — | (22 | ) | (26 | ) | ||||||||||||||||||
Net amount reclassified from accumulated other comprehensive income (loss) | — | — | 3 | 3 | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||||
Provision for income taxes | — | — | (4 | ) | (4 | ) | — | — | 7 | 7 | ||||||||||||||||||||||
Balance at December 30, 2017 | $ | (72 | ) | $ | (17 | ) | $ | 9 | $ | (80 | ) | |||||||||||||||||||||
Balance at December 29, 2018 | $ | (179 | ) | $ | (13 | ) | $ | 15 | $ | (177 | ) |
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 | 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 | ) |
16. Guarantor and Non-Guarantor Financial Information |
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 |
Quarterly Period Ended December 29, 2018 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Net sales | $ | — | $ | 141 | $ | 1,377 | $ | 454 | $ | — | $ | 1,972 | ||||||||||||
Cost of goods sold | — | 85 | 1,142 | 392 | — | 1,619 | ||||||||||||||||||
Selling, general and administrative | — | 13 | 87 | 24 | — | 124 | ||||||||||||||||||
Amortization of intangibles | — | — | 36 | 6 | — | 42 | ||||||||||||||||||
Restructuring and impairment charges | — | — | 7 | 4 | — | 11 | ||||||||||||||||||
Operating income | — | 43 | 105 | 28 | — | 176 | ||||||||||||||||||
Other expense (income), net | — | 1 | 1 | (2 | ) | — | — | |||||||||||||||||
Interest expense, net | — | 5 | 45 | 14 | — | 64 | ||||||||||||||||||
Equity in net income of subsidiaries | (112 | ) | (67 | ) | — | — | 179 | — | ||||||||||||||||
Income before income taxes | 112 | 104 | 59 | 16 | (179 | ) | 112 | |||||||||||||||||
Income tax expense | 24 | 16 | — | 8 | (24 | ) | 24 | |||||||||||||||||
Net income | $ | 88 | $ | 88 | $ | 59 | $ | 8 | $ | (155 | ) | $ | 88 | |||||||||||
Comprehensive net income | $ | 88 | $ | 79 | $ | 59 | $ | (4 | ) | $ | (155 | ) | $ | 67 |
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 (loss) | — | 20 | 118 | 25 | — | 163 | ||||||||||||||||||
Other 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 | ) | |||||||||||||||
Net income | $ | 163 | $ | 163 | $ | 68 | $ | 4 | $ | (235 | ) | $ | 163 | |||||||||||
Comprehensive net income | $ | 163 | $ | 160 | $ | 68 | $ | (5 | ) | $ | (235 | ) | $ | 151 |
December 29, 2018 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Current assets | — | 214 | 1,243 | 749 | — | 2,206 | ||||||||||||||||||
Intercompany receivable | 248 | 1,878 | — | 28 | (2,154 | ) | — | |||||||||||||||||
Property, plant, and equipment, net | — | 79 | 1,660 | 718 | — | 2,457 | ||||||||||||||||||
Other assets | 1,593 | 6,326 | 4,808 | 486 | (8,904 | ) | 4,309 | |||||||||||||||||
Total assets | $ | 1,841 | $ | 8,497 | $ | 7,711 | $ | 1,981 | $ | (11,058 | ) | $ | 8,972 | |||||||||||
Current liabilities | 18 | 248 | 621 | 292 | — | 1,179 | ||||||||||||||||||
Intercompany payable | — | — | 2,154 | — | (2,154 | ) | — | |||||||||||||||||
Other long-term liabilities | 368 | 5,851 | 58 | 61 | — | 6,338 | ||||||||||||||||||
Stockholders' equity | 1,455 | 2,398 | 4,878 | 1,628 | (8,904 | ) | 1,455 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,841 | $ | 8,497 | $ | 7,711 | $ | 1,981 | $ | (11,058 | ) | $ | 8,972 |
September 29, 2018 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Current assets | — | 249 | 1,240 | 796 | — | 2,285 | ||||||||||||||||||
Intercompany receivable | 296 | 1,907 | — | 49 | (2,252 | ) | — | |||||||||||||||||
Property, plant and equipment, net | — | 79 | 1,684 | 725 | — | 2,488 | ||||||||||||||||||
Other assets | 1,544 | 6,247 | 4,849 | 487 | (8,769 | ) | 4,358 | |||||||||||||||||
Total assets | $ | 1,840 | $ | 8,482 | $ | 7,773 | $ | 2,057 | $ | (11,021 | ) | $ | 9,131 | |||||||||||
Current liabilities | 18 | 218 | 635 | 366 | — | 1,237 | ||||||||||||||||||
Intercompany payable | — | — | 2,252 | — | (2,252 | ) | — | |||||||||||||||||
Other long-term liabilities | 388 | 5,945 | 68 | 59 | — | 6,460 | ||||||||||||||||||
Stockholders' equity | 1,434 | 2,319 | 4,818 | 1,632 | (8,769 | ) | 1,434 | |||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,840 | $ | 8,482 | $ | 7,773 | $ | 2,057 | $ | (11,021 | ) | $ | 9,131 |
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 29, 2018 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
Cash Flow from Operating Activities | $ | — | $ | 55 | $ | 155 | $ | (49 | ) | $ | — | $ | 161 | |||||||||||
Cash Flow from Investing Activities | ||||||||||||||||||||||||
Additions to property, plant, and equipment | — | — | (59 | ) | (16 | ) | — | (75 | ) | |||||||||||||||
Proceeds from sale of assets | — | — | — | — | — | — | ||||||||||||||||||
(Contributions) distributions to/from subsidiaries | 47 | (47 | ) | — | — | — | — | |||||||||||||||||
Intercompany advances (repayments) | — | 38 | — | — | (38 | ) | — | |||||||||||||||||
Net cash from investing activities | 47 | (9 | ) | (59 | ) | (16 | ) | (38 | ) | (75 | ) | |||||||||||||
Cash Flow from Financing Activities | ||||||||||||||||||||||||
Repayments on long-term borrowings | — | (108 | ) | (2 | ) | — | — | (110 | ) | |||||||||||||||
Proceeds from issuance of common stock | 5 | — | — | — | — | 5 | ||||||||||||||||||
Repurchase of common stock | (52 | ) | — | — | — | — | (52 | ) | ||||||||||||||||
Payment of tax receivable agreement | (16 | ) | — | — | — | — | (16 | ) | ||||||||||||||||
Changes in intercompany balances | 16 | — | (93 | ) | 39 | 38 | — | |||||||||||||||||
Net cash from financing activities | (47 | ) | (108 | ) | (95 | ) | 39 | 38 | (173 | ) | ||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||
Net change in cash | — | (62 | ) | 1 | (27 | ) | — | (88 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 133 | 4 | 244 | — | 381 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 71 | $ | 5 | $ | 217 | $ | — | $ | 293 |
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 |
Quarterly Period Ended December 30, 2017 | ||||||||||||||||||||||||
Parent | Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||||||
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 | ) | — | |||||||||||||||||
Other investing activities, net | — | — | — | — | — | — | ||||||||||||||||||
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 |
Polyethylene Butene Film | Polypropylene | Polyethylene Butene Film | Polypropylene | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||
1st quarter | $ | .87 | $ | .75 | $ | .69 | $ | .84 | $ | .69 | $ | .70 | $ | .64 | $ | .68 | $ | .56 | $ | .76 | $ | .71 | $ | .56 | ||||||||||||||||||||||||
2nd quarter | — | .77 | .66 | — | .80 | .75 | — | .69 | .58 | — | .75 | .67 | ||||||||||||||||||||||||||||||||||||
3rd quarter | — | .79 | .73 | — | .74 | .71 | — | .68 | .60 | — | .76 | .61 | ||||||||||||||||||||||||||||||||||||
4th quarter | — | .81 | .75 | — | .75 | .71 | — | .66 | .62 | — | .85 | .62 |
Consolidated Overview | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Net sales | $ | 1,776 | $ | 1,502 | $ | 274 | 18 | % | $ | 1,972 | $ | 1,776 | $ | 196 | 11 | % | ||||||||||||||||
Operating income | $ | 163 | $ | 146 | $ | 17 | 12 | % | $ | 176 | $ | 163 | $ | 13 | 8 | % | ||||||||||||||||
Operating income percentage of net sales | 9 | % | 10 | % | 9 | % | 9 | % |
Engineered Materials | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 669 | $ | 648 | $ | 21 | 3 | % | ||||||||
Operating income | $ | 94 | $ | 88 | $ | 6 | 7 | % | ||||||||
Percentage of net sales | 14 | % | 14 | % |
Health, Hygiene & Specialties | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 702 | $ | 577 | $ | 125 | 22 | % | ||||||||
Operating income | $ | 49 | $ | 37 | $ | 12 | 32 | % | ||||||||
Percentage of net sales | 7 | % | 6 | % |
Consumer Packaging | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Net sales | $ | 601 | $ | 551 | $ | 50 | 9 | % | ||||||||
Operating income | $ | 33 | $ | 38 | $ | (5 | ) | (13 | %) | |||||||
Percentage of net sales | 5 | % | 7 | % |
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 (income) expense, net | ||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | |||||||||||||
Other (income) expense, net | $ | — | $ | 9 | $ | (9 | ) | 100 | % |
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 | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Interest expense, net | $ | 62 | $ | 68 | $ | (6 | ) | (9 | %) | $ | 64 | $ | 62 | $ | 2 | 3 | % |
Income tax expense (benefit) | ||||||||||||||||||||||||||||||||
Quarter | Prior Quarter | $ Change | % Change | Quarter | Prior Quarter | $ Change | % Change | |||||||||||||||||||||||||
Income tax expense (benefit) | $ | (71 | ) | $ | 28 | $ | (99 | ) | (354 | %) | $ | 24 | $ | (71 | ) | $ | 95 | (134 | %) |
Quarterly Period Ended | Quarterly Period Ended | |||||||||||||||
December 30, 2017 | December 31, 2016 | December 29, 2018 | December 30, 2017 | |||||||||||||
Cash flow from operating activities | $ | 153 | $ | 143 | $ | 161 | $ | 153 | ||||||||
Additions to property, plant and equipment, net | (91 | ) | (63 | ) | (75 | ) | (91 | ) | ||||||||
Payments of tax receivable agreement | (37 | ) | (60 | ) | (16 | ) | (37 | ) | ||||||||
Adjusted free cash flow | $ | 25 | $ | 20 | $ | 70 | $ | 25 |
(a) Evaluation of disclosure controls and procedures. |
(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 on a timely basis; |
● | performance of our business and future operating results; |
● | risks related to |
● | reliance on unpatented proprietary know-how and trade secrets; |
● | increases in the cost of compliance with laws and regulations, including environmental, safety, and production and product laws and regulations; |
● | risks related to disruptions in the overall economy and the financial markets that may adversely impact our business; |
● | risk of catastrophic loss of one of our key manufacturing facilities, natural disasters, and other unplanned business interruptions; |
● | risks related to |
● | general business and economic conditions, particularly an economic downturn; |
● | risks that our restructuring |
● |
● | 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." |
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 | 212,328 | $ | 44.02 | 212,328 | $ | 456 | ||||||||||
Fiscal November | 139,094 | 49.72 | 139,094 | 449 | ||||||||||||
Fiscal December | 781,015 | 47.86 | 781,015 | 412 | ||||||||||||
Total | 1,132,437 | $ | 47.37 | 1,132,437 | $ | 412 |
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. | Interactive Data Files. |
* | Filed |
Berry Global Group, Inc. | |||
February | By: | /s/ Mark W. Miles | |
Mark W. Miles | |||
Chief Financial Officer |