Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 17, 2023 | Mar. 29, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 001-35672 | ||
Entity Registrant Name | BERRY GLOBAL GROUP, INC. | ||
Entity Central Index Key | 0001378992 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-5234618 | ||
Entity Address, Address Line One | 101 Oakley Street | ||
Entity Address, City or Town | Evansville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47710 | ||
City Area Code | 812 | ||
Local Phone Number | 424-2904 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | BERY | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.9 | ||
Entity Common Stock, Shares Outstanding | 115.5 | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Indianapolis, Indiana |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Consolidated Statements of Income [Abstract] | |||
Net sales | $ 12,664 | $ 14,495 | $ 13,850 |
Costs and expenses: | |||
Cost of goods sold | 10,354 | 12,123 | 11,352 |
Selling, general and administrative | 886 | 850 | 867 |
Amortization of intangibles | 243 | 257 | 288 |
Restructuring and transaction activities | 102 | 23 | 51 |
Operating income | 1,079 | 1,242 | 1,292 |
Other expense | 31 | 22 | 51 |
Interest expense | 306 | 286 | 336 |
Income before income taxes | 742 | 934 | 905 |
Income tax expense | 133 | 168 | 172 |
Net income | $ 609 | $ 766 | $ 733 |
Net income per share (see Note 11): | |||
Basic (in dollars per share) | $ 5.07 | $ 5.87 | $ 5.45 |
Diluted (in dollars per share) | $ 4.95 | $ 5.77 | $ 5.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 609 | $ 766 | $ 733 |
Currency translation | 115 | (301) | 124 |
Pension and postretirement benefits | (52) | 35 | 49 |
Derivative instruments | 4 | 159 | 82 |
Other comprehensive (loss) income | 67 | (107) | 255 |
Comprehensive income | $ 676 | $ 659 | $ 988 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,203 | $ 1,410 |
Accounts receivable | 1,568 | 1,777 |
Inventories | 1,557 | 1,802 |
Prepaid expenses and other current assets | 205 | 175 |
Total current assets | 4,533 | 5,164 |
Property, plant and equipment | 4,576 | 4,342 |
Goodwill and intangible assets | 6,684 | 6,685 |
Right-of-use assets | 625 | 521 |
Other assets | 169 | 244 |
Total assets | 16,587 | 16,956 |
Current liabilities: | ||
Accounts payable | 1,528 | 1,795 |
Accrued employee costs | 273 | 253 |
Other current liabilities | 902 | 783 |
Current portion of long-term debt | 10 | 13 |
Total current liabilities | 2,713 | 2,844 |
Long-term debt | 8,970 | 9,242 |
Deferred income taxes | 573 | 707 |
Employee benefit obligations | 193 | 160 |
Operating lease liabilities | 525 | 429 |
Other long-term liabilities | 397 | 378 |
Total liabilities | 13,371 | 13,760 |
Stockholders' equity: | ||
Common stock (115.5 and 124.2 shares issued, respectively) | 1 | 1 |
Additional paid-in capital | 1,231 | 1,177 |
Retained earnings | 2,320 | 2,421 |
Accumulated other comprehensive loss | (336) | (403) |
Total stockholders' equity | 3,216 | 3,196 |
Total liabilities and stockholders' equity | $ 16,587 | $ 16,956 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Stockholders' equity: | ||
Common stock, shares issued (in shares) | 115.5 | 124.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Cash Flows from Operating Activities: | |||
Net income | $ 609 | $ 766 | $ 733 |
Adjustments to reconcile net cash from operating activities: | |||
Depreciation | 575 | 562 | 566 |
Amortization of intangibles | 243 | 257 | 288 |
Non-cash interest expense | (61) | 6 | 32 |
Share-based compensation expense | 42 | 39 | 40 |
Deferred income tax | (117) | (48) | (73) |
Other non-cash operating activities, net | 22 | (22) | 49 |
Settlement of derivatives | 36 | 201 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 294 | (86) | (331) |
Inventories | 343 | (3) | (639) |
Prepaid expenses and other assets | 1 | 11 | (30) |
Accounts payable and other liabilities | (372) | (120) | 945 |
Net cash from operating activities | 1,615 | 1,563 | 1,580 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment, net | (689) | (687) | (676) |
Acquisition of businesses | (87) | 0 | 0 |
Divestiture of businesses | 0 | 128 | 165 |
Settlement of net investment hedges | 0 | 76 | 0 |
Net cash from investing activities | (776) | (483) | (511) |
Cash Flows from Financing Activities: | |||
Proceeds from long-term borrowings | 496 | 0 | 2,716 |
Repayment of long-term borrowings | (869) | (22) | (3,496) |
Proceeds from issuance of common stock | 36 | 27 | 60 |
Repurchase of common stock | (601) | (709) | 0 |
Dividends paid | (127) | 0 | 0 |
Debt financing costs | (6) | 0 | (21) |
Net cash from financing activities | (1,071) | (704) | (741) |
Effect of currency translation on cash | 25 | (57) | 13 |
Net change in cash and cash equivalents | (207) | 319 | 341 |
Cash and cash equivalents at beginning of period | 1,410 | 1,091 | 750 |
Cash and cash equivalents at end of period | $ 1,203 | $ 1,410 | $ 1,091 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balance at Sep. 26, 2020 | $ 1 | $ 1,034 | $ (551) | $ 1,608 | $ 2,092 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 733 | 733 |
Other comprehensive income (loss) | 0 | 0 | 255 | 0 | 255 |
Share-based compensation | 0 | 40 | 0 | 0 | 40 |
Proceeds from issuance of common stock | 0 | 60 | 0 | 0 | 60 |
Balance at Oct. 02, 2021 | 1 | 1,134 | (296) | 2,341 | 3,180 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 766 | 766 |
Other comprehensive income (loss) | 0 | 0 | (107) | 0 | (107) |
Share-based compensation | 0 | 39 | 0 | 0 | 39 |
Proceeds from issuance of common stock | 0 | 27 | 0 | 0 | 27 |
Common stock repurchased and retired | 0 | (23) | 0 | (686) | (709) |
Balance at Oct. 01, 2022 | 1 | 1,177 | (403) | 2,421 | 3,196 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 0 | 0 | 0 | 609 | 609 |
Other comprehensive income (loss) | 0 | 0 | 67 | 0 | 67 |
Share-based compensation | 0 | 42 | 0 | 0 | 42 |
Proceeds from issuance of common stock | 0 | 36 | 0 | 0 | 36 |
Common stock repurchased and retired | (601) | ||||
Common stock repurchased and retired and other | 0 | (24) | 0 | (583) | (607) |
Dividends paid | 0 | 0 | (127) | (127) | |
Balance at Sep. 30, 2023 | $ 1 | $ 1,231 | $ (336) | $ 2,320 | $ 3,216 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Berry Global Group, Inc.’s (“Berry,” “we,” or the “Company”) consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commissions. Periods presented in these financial statements include fiscal periods ending September 30, 2023 (“fiscal 2023”), October 1, 2022 (“fiscal 2022”), and October 2, 2021 (“fiscal 2021”). The Company’s U.S. based results for fiscal 2023 and fiscal 2022 are based on a fifty-two week period. Fiscal 2021 was based on a fifty-three week period. The consolidated financial statements include the accounts of Berry and its subsidiaries, all of which includes our wholly owned and majority owned subsidiaries. The Company has certain foreign subsidiaries that report on a calendar period basis which we consolidate into our respective fiscal period. Intercompany accounts and transactions have been eliminated in consolidation. During fiscal 2023, the Company announced that it has initiated a formal process to evaluate strategic alternatives for its Health, Hygiene and Specialties segment and has determined the segment does not meet the criteria of Held for Sale as of year end. Revenue Recognition and Accounts Receivable Our revenues are primarily derived from the sale of non-woven, flexible and rigid products. Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method. Our main sources of variable consideration are customer rebates. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Generally, our revenue is recognized at a point in time for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The accrual for customer rebates was $106 million and $103 million at September 30, 2023 and October 1, 2022, respectively, and is included in Other current liabilities on the Consolidated Balance Sheets. The Company disaggregates revenue based on reportable business segment, geography, and significant product line. See Note 10. Segment and Geographic Data. Accounts receivable are presented net of allowance for credit losses of $19 million and $18 million at September 30, 2023 and October 1, 2022, respectively. The Company records current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented. The Company has entered into various factoring agreements, primarily customer-based supply chain financing programs, to sell certain receivables to third-party financial institutions. Agreements which result in true sales of the transferred receivables, which occur when receivables are transferred without recourse to the Company, are reflected as a reduction of trade receivables, net on the consolidated balance sheets and the proceeds are included in the cash flows from operating activities in the consolidated statements of cash flows. Research and Development Research and development costs are expensed when incurred. The Company incurred research and development expenditures of $82 million, $81 million, and $90 million in fiscal 2023, 2022, and 2021, respectively. Share-Based Compensation The Company recognized total share-based compensation expense of $42 million, $39 million, and $40 million for fiscal 2023, 2022, and 2021, respectively. The share-based compensation plan is more fully described in Note 9. Stockholders’ Equity. Foreign Currency For the non-U.S. subsidiaries that account in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using period-end exchange rates. Sales and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss within Stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in the Consolidated Statements of Income. Cash and Cash Equivalents All highly liquid investments purchased with a maturity of three months or less from the time of purchase are considered to be cash equivalents. Inventories Inventories are stated at the lower of cost or net realizable value and are valued using the first-in, first-out method. Management periodically reviews inventory balances, using recent and future expected sales to identify slow-moving and/or obsolete items. The cost of spare parts is charged to cost of goods sold when purchased. We evaluate our reserve for inventory obsolescence on a quarterly basis and review inventory on-hand to determine future salability. We base our determinations on the age of the inventory and the experience of our personnel. We reserve inventory that we deem to be not salable in the quarter in which we make the determination. We believe, based on past history and our policies and procedures, that our net inventory is salable. Inventory as of fiscal 2023 and 2022 was: Inventories: 2023 2022 Finished goods $ 933 $ 1,010 Raw materials 624 792 $ 1,557 $ 1,802 Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets ranging from 15 to 40 years for buildings and improvements, 2 to 20 years for machinery, equipment, and tooling, and over the term of the agreement for capital leases. Leasehold improvements are depreciated over the shorter of the useful life of the improvement or the lease term. Repairs and maintenance costs are charged to expense as incurred. Property, plant and equipment as of fiscal 2023 and 2022 was: Property, plant and equipment: 2023 2022 Land, buildings and improvements $ 1,693 $ 1,602 Equipment and construction in progress 7,570 6,916 9,263 8,518 Less accumulated depreciation (4,687 ) (4,176 ) $ 4,576 $ 4,342 Long-lived Assets Long-lived assets, including property, plant and equipment and definite lived intangible assets are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment,” whenever facts and circumstances indicate that the carrying amount may not be recoverable. Specifically, this process involves comparing an asset’s carrying value to the estimated undiscounted future cash flows the asset is expected to generate over its remaining life. If this process were to result in the conclusion that the carrying value of a long-lived asset would not be recoverable, a write-down of the asset to fair value would be recorded through a charge to operations. Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows: Consumer Packaging International Consumer Packaging North America Engineered Materials Health, Hygiene & Specialties Total Balance as of fiscal 2021 $ 2,016 $ 1,541 $ 699 $ 936 $ 5,192 Foreign currency translation adjustment (250 ) (1 ) (37 ) (18 ) (306 ) Dispositions (54 ) — — — (54 ) Balance as of fiscal 2022 $ 1,712 $ 1,540 $ 662 $ 918 $ 4,832 Foreign currency translation adjustment 81 1 17 12 111 Pro-Western acquisition (See Note 2.) — 38 — — 38 Balance as of fiscal 2023 $ 1,793 $ 1,579 $ 679 $ 930 $ 4,981 In fiscal year 2023, the Company completed a qualitative analysis to evaluate impairment of goodwill and concluded that it was more likely than not that the fair value for each reporting unit exceeded the carrying amount. We reached this conclusion based on the stable valuations within the packaging industry and operating results of our reporting units, in addition to value indications provided from third parties related to the Company's evaluation of strategic alternatives for the Health, Hygiene & Specialties segment. As a result of our annual impairment evaluations the Company concluded that no impairment existed in fiscal 2023. Deferred Financing Fees Deferred financing fees are amortized to interest expense using the effective interest method over the lives of the respective debt agreements. Pursuant to ASC 835-30, the Company presents $34 million and $60 million as of fiscal 2023 and fiscal 2022, respectively, of debt issuance and deferred financing costs on the balance sheet as a deduction from the carrying amount of the related debt liability, instead of a deferred charge. Intangible Assets The changes in the carrying amount of intangible assets are as follows: Customer Relationships Trademarks Other Intangibles Accumulated Amortization Total Balance as of fiscal 2021 $ 3,329 $ 525 $ 122 $ (1,734 ) $ 2,242 Foreign currency translation adjustment (172 ) (31 ) (1 ) 66 (138 ) Amortization expense — — — (257 ) (257 ) Additions — — 6 — 6 Balance as of fiscal 2022 $ 3,157 $ 494 $ 127 $ (1,925 ) $ 1,853 Foreign currency translation adjustment 69 12 1 (27 ) 55 Amortization expense — — — (243 ) (243 ) Pro-Western acquisition (See Note 2.) 35 3 — — 38 Balance as of fiscal 2023 $ 3,261 $ 509 $ 128 $ (2,195 ) $ 1,703 Customer relationships are being amortized using an accelerated amortization method which corresponds with the customer attrition rates used in the initial valuation of the intangibles over the estimated life of the relationships which range from 5 to 17 years. Definite lived trademarks are being amortized using the straight-line method over the estimated life of the assets which are not more than 15 years. Other intangibles, which include technology and licenses, are being amortized using the straight-line method over the estimated life of the assets which range from 5 to 14 years. The Company has trademarks that total $248 million that are indefinite lived and we test annually for impairment on the first day of the fourth quarter. We completed the annual impairment test of our indefinite lived trade names utilizing the qualitative method in 2023, 2022, and 2021 and noted no impairment. Future amortization expense for definite lived intangibles as of fiscal 2023 for the next five fiscal years is $232 million, $219 million, $204 million, $171 million, and $147 million each year for fiscal years ending 2024, 2025, 2026, 2027, and 2028, respectively. Insurable Liabilities The Company records liabilities for the self-insured portion of workers’ compensation, health, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated based upon historical claims experience. Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. We recognize right-of-use assets and lease liabilities for leases with original lease terms greater than one year based on the present value of lease payments over the lease term using our incremental borrowing rate on a collateralized basis. Short-term leases, with original lease terms of less than one year, are not recognized on the balance sheet. We are party to certain leases, namely for manufacturing facilities, which offer renewal options to extend the original lease term. Renewal options are included in the right-of-use asset and lease liability based on our assessment of the probability that the options will be exercised. See Note 5. Commitments, Leases and Contingencies. At September 30, 2023, annual lease commitments were as follows: Fiscal Year Operating Leases Finance Leases 2024 $ 117 $ 10 2025 106 7 2026 95 9 2027 83 1 2028 70 1 Thereafter 311 3 Total lease payments 782 31 Less: Interest (141 ) (3 ) Present value of lease liabilities $ 641 $ 28 Income Taxes The Company accounts for income taxes under the asset and liability approach, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the period in which the underlying transactions are recorded. Deferred taxes, with the exception of non-deductible goodwill, are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and such amounts as measured by tax laws. If the Company determines that a deferred tax asset arising from temporary differences is not likely to be utilized, the Company will establish a valuation allowance against that asset to record it at its expected realizable value. The Company recognizes uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s effective tax rate is dependent on many factors including: the impact of enacted tax laws in jurisdictions in which the Company operates; the amount of earnings by jurisdiction, due to varying tax rates in each country; and the Company’s ability to utilize foreign tax credits related to foreign taxes paid on foreign earnings that will be remitted to the U.S. Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes net unrealized gains or losses resulting from currency translations of foreign subsidiaries, changes in the value of our derivative instruments and adjustments to the pension liability. The accumulated balances related to each component of other comprehensive income (loss), net of tax before reclassifications were as follows: Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance as of fiscal 2020 $ (278 ) $ (116 ) $ (157 ) $ (551 ) Other comprehensive income (loss) 124 (5 ) 70 189 Net amount reclassified from accumulated other comprehensive income (loss) — 54 12 66 Balance as of fiscal 2021 $ (154 ) $ (67 ) $ (75 ) $ (296 ) Other comprehensive income (loss) (301 ) 32 158 (111 ) Net amount reclassified from accumulated other comprehensive income (loss) — 3 1 4 Balance as of fiscal 2022 $ (455 ) $ (32 ) $ 84 $ (403 ) Other comprehensive income (loss) 115 (53 ) 39 101 Net amount reclassified from accumulated other comprehensive income (loss) — 1 (35 ) (34 ) Balance as of fiscal 2023 $ (340 ) $ (84 ) $ 88 $ (336 ) Pension The accounting for our pension plans requires us to recognize the overfunded or underfunded status of the pension plans on our balance sheet. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by our actuaries. Pension benefit costs include assumptions for the discount rate, mortality rate, retirement age, and expected return on plan assets. Retiree medical plan costs include assumptions for the discount rate, retirement age, and health-care-cost trend rates. We review annually the discount rate used to calculate the present value of pension plan liabilities. The discount rate used at each measurement date is set based on a high-quality corporate bond yield curve, derived based on bond universe information sourced from reputable third-party indices, data providers, and rating agencies. In countries where there is no deep market in corporate bonds, we have used a government bond approach to set the discount rate. In evaluating other assumptions, the Company considers many factors, including an evaluation of expected return on plan assets and the health-care-cost trend rates of other companies; historical assumptions compared with actual results; an analysis of current market conditions and asset allocations; and the views of advisers. Net Income Per Share The Company calculates basic net income per share based on the weighted-average number of outstanding common shares. The Company calculates diluted net income per share based on the weighted-average number of outstanding common shares plus the effect of dilutive securities. Use of Estimates The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make extensive use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of sales and expenses. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the event or circumstances giving rise to such changes occur. Recently Issued Accounting Pronouncements Reference Rate Reform During fiscal 2023, the Company adopted ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The Company's adoption did not result in a material change to our consolidated financial statements or disclosures. |
Acquisition
Acquisition | 12 Months Ended |
Sep. 30, 2023 | |
Acquisition [Abstract] | |
Acquisition | 2. Acquisition Pro-Western Plastics During fiscal 2023, the Company acquired Pro-Western Plastics Ltd. (“Pro-Western”), a leading plastics injection molding company, for a purchase price of $87 million. The acquired business is operated within the Consumer Packaging North America segment. To finance the purchase, the Company used existing liquidity. The acquisition has been accounted for under the purchase method of accounting and accordingly, the purchase price has been allocated to the identifiable assets and liabilities based on preliminary estimates of fair value at the acquisition date. The results of Pro-Western have been included in the consolidated results of the Company since the date of acquisition. The Company has recognized goodwill on this transaction primarily as a result of expected cost synergies and expects goodwill to be deductible for tax purposes. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 3. Long-Term Debt Long-term debt consists of the following: Facility Maturity Date 2023 2022 Term loan (a) July 2026 (d) $ 3,090 $ 3,440 Revolving line of credit June 2028 — — 0.95 (b) February 2024 279 800 1.00 (c) July 2025 741 686 1.57 January 2026 1,525 1,525 4.875 July 2026 1,250 1,250 1.65 January 2027 400 400 1.50 (c) July 2027 397 367 5.50 April 2028 500 — 4.50 February 2026 291 298 5.625 July 2027 500 500 Debt discounts and deferred fees (34 ) (60 ) Finance leases and other Various 41 49 Total long-term debt 8,980 9,255 Current portion of long-term debt (10 ) (13 ) Long-term debt, less current portion $ 8,970 $ 9,242 (a) Effectively 88% fixed interest rate with interest rate swaps (see Note 4). (b) Indicates debt which has been classified as long-term debt in accordance with the Company's ability and intention to refinance such obligations on a long-term basis. (c) Euro denominated (d) In October 2023, the Company extended the maturity date of $1,550 million of the Term Loans to 2029. During fiscal 2023, the Company issued $500 million aggregate principal amount of 5.50% first priority senior secured notes due 2028. The proceeds were used to repurchase a portion of the Company's 0.95% first priority senior secured notes due 2024. Debt discounts and deferred financing fees are presented net of Long-term debt, less the current portion on the Consolidated Balance Sheets and are amortized to Interest expense on the Consolidated Statements of Income through maturity. Berry Global, Inc. Senior Secured Credit Facility Our wholly owned subsidiary Berry Global, Inc.’s senior secured credit facilities consist of $3.1 billion of term loans and a $1.0 billion asset-based revolving line of credit. The availability under the revolving line of credit is the lesser of $1.0 billion or based on a defined borrowing base which is calculated based on available accounts receivable and inventory. At the end of fiscal 2023, the Company had unused borrowing capacity of $760 million under the revolving line of credit. The term loan facility is payable upon maturity. The Company may voluntarily repay outstanding loans under the senior secured credit facilities at any time without premium or penalty, other than customary “breakage” costs with respect to eurodollar loans. All obligations under the senior secured credit facilities are unconditionally guaranteed by the Company and, subject to certain exceptions, each of the Company’s existing and future direct and indirect domestic subsidiaries. The guarantees of those obligations are secured by substantially all of the Company’s assets as well as those of each domestic subsidiary guarantor. Despite not having financial maintenance covenants, our debt agreements contain certain negative covenants. We are in compliance with all covenants as of September 30, 2023. The failure to comply with these negative covenants could restrict our ability to incur additional indebtedness, effect acquisitions, enter into certain significant business combinations, make distributions or redeem indebtedness. Future maturities of long-term debt as of fiscal year end 2023 are as follows: Fiscal Year Maturities 2024 $ 289 2025 749 2026 6,167 2027 1,299 2028 503 Thereafter 7 $ 9,014 Net cash interest was |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 4. Financial Instruments and Fair Value Measurements In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. The Company may use derivative financial instruments to help manage exposure to fluctuations in interest rates and foreign currencies. These financial instruments are not used for trading or other speculative purposes. For those derivative instruments that are designated and qualify as hedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. To the extent hedging relationships are found to be effective, changes in the fair value of the derivatives are offset by changes in the fair value of the related hedged item and recorded to Accumulated other comprehensive loss. Changes in the fair value of a derivative not designated as a hedge, are recorded to the Consolidated Statements of Income. Cross-Currency Swaps The Company is party to certain cross-currency swaps to hedge a portion of our foreign currency risk. The swap agreements mature June 2024 (€ million) and July 2027 (£ million). In addition to cross-currency swaps, we hedge a portion of our foreign currency risk by designating foreign currency denominated long-term debt as net investment hedges of certain foreign operations. As of , we had outstanding long-term debt of € million that was designated as a hedge of our net investment in certain euro-denominated foreign subsidiaries. When valuing cross-currency swaps the Company utilizes Level 2 inputs (substantially observable). Interest Rate Swaps The primary purpose of the Company’s interest rate swap activities is to manage interest expense fluctuations associated with our outstanding variable rate term loan debt. When valuing interest rate swaps the Company utilizes Level 2 inputs (substantially observable). During fiscal 2023, the Company elected to cash settle existing interest rate swaps and received net proceeds of $36 million. The offset is included in Accumulated other comprehensive loss and is being amortized to Interest expense through the term of the original swaps. Following the settlement, the Company entered into interest rate swaps with matching notional amounts with expiration in June 2026. As of September 30, 2023, the Company effectively had (i) a $450 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.043%, (ii) a $400 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.451%, (iii) an $884 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 4.451%, (iv) a $473 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 3.869%, and (v) a $500 million interest rate swap transaction that swaps a one-month variable SOFR contract for a fixed annual rate of 3.602%%. The Company's interest rate swap transactions all expire in June 2026. See Note 12. Subsequent Events. Balances of our derivative instruments on a gross basis are as follows: Derivative Instruments Hedge Designation Balance Sheet Location 2023 2022 Cross-currency swaps Designated Other assets $ — $ 147 Cross-currency swaps Designated Other current liabilities 66 — Cross-currency swaps Designated Other long-term liabilities 19 — Interest rate swaps Designated Other assets 36 11 Interest rate swaps Not designated Other assets 8 — Interest rate swaps Designated Other long-term liabilities — 3 Interest rate swaps Not designated Other long-term liabilities 104 117 The effect of the Company’s derivative instruments on the Consolidated Statements of Income is as follows: Derivative instruments Statements of Income Location 2023 2022 2021 Cross-currency swaps Interest expense $ (41 ) $ (21 ) $ (8 ) Interest rate swaps Interest expense (59 ) 40 69 The amortization related to unrealized losses in Accumulated other comprehensive loss is expected to be $36 million in the next 12 months. The Company’s financial instruments consist primarily of cash and cash equivalents, long-term debt, interest rate swap agreements, cross-currency swap agreements and capital lease obligations. The book value of our long-term indebtedness exceeded fair value by $381 million as of fiscal 2023 and by $561 million as of fiscal 2022. The Company’s long-term debt fair values were determined using Level 2 inputs as other significant observable inputs were not available. Non-recurring Fair Value Measurements The Company has certain assets that are measured at fair value on a non-recurring basis when impairment indicators are present or when the Company completes an acquisition. The Company adjusts certain long-lived assets to fair value only when the carrying values exceed the fair values. The categorization of the framework used to value the assets is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value. Included in the following tables are the major categories of assets and their current carrying values, along with the impairment 2023 Level 1 Level 2 Level 3 Total Impairment Indefinite lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 4,981 4,981 — Definite lived intangible assets — — 1,455 1,455 — Property, plant and equipment — — 4,576 4,576 8 Total $ — $ — $ 11,260 $ 11,260 $ 8 2022 Level 1 Level 2 Level 3 Total Impairment Indefinite lived trademarks $ — $ — $ 247 $ 247 $ — Goodwill — — 4,832 4,832 — Definite lived intangible assets — — 1,606 1,606 — Property, plant and equipment — — 4,342 4,342 — Total $ — $ — $ 11,027 $ 11,027 $ — |
Commitments, Leases and Conting
Commitments, Leases and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Contingencies and Commitments [Abstract] | |
Commitments, Leases and Contingencies | 5. Commitments, Leases and Contingencies The Company has various purchase commitments for raw materials, supplies and property and equipment incidental to the ordinary conduct of business. Collective Bargaining Agreements At the end of fiscal 2023, we employed approximately 44,000 employees, and approximately 20% of those employees were covered by collective bargaining agreements. The majority of these agreements are due for renegotiation annually. Leases Supplemental lease information is as follows: Leases Classification 2023 2022 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 625 $ 521 Current operating lease liabilities Other current liabilities 116 108 Noncurrent operating lease liabilities Operating lease liability 525 429 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 32 $ 38 Current finance lease liabilities Current portion of long-term debt 9 9 Noncurrent finance lease liabilities Long-term debt, less current portion 19 24 L ease Type Cash Flow Classification Lease Expense Category 2023 2022 Operating leases Operating cash flows Lease cost $ 141 $ 132 Finance leases Operating cash flows Interest expense 1 2 Finance leases Financing cash flows - 5 19 Finance leases - Amortization of right-of-use assets 9 9 2023 2022 Weighted-average remaining lease term - operating leases 9 years 7 years Weighted-average remaining lease term - finance leases 2 years 3 years Weighted-average discount rate - operating leases 5.0 % 4.5 % Weighted-average discount rate - finance leases 4.5 % 4.5 % Right-of-use assets obtained in exchange for new operating lease liabilities were $109 million for fiscal 2023. Litigation The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its financial position, results of operations or cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 6. Income Taxes The Company is being taxed at the U.S. corporate level as a C-Corporation and has provided U.S. Federal, State and foreign income taxes. Significant components of income tax expense for the fiscal years ended are as follows: 2023 2022 2021 Current U.S. Federal $ 118 $ 87 $ 56 State 25 20 14 Non-U.S. 107 109 175 Total current 250 216 245 Deferred: U.S. Federal (26 ) 4 17 State (26 ) (7 ) (6 ) Non-U.S. (65 ) (45 ) (84 ) Total deferred (117 ) (48 ) (73 ) Expense for income taxes $ 133 $ 168 $ 172 U.S. income from continuing operations before income taxes was $375 million, $449 million, and $276 million for fiscal 2023, 2022, and 2021, respectively. Non-U.S. income from continuing operations before income taxes was $367 million, $485 million, and $629 million for fiscal 2023, 2022, and 2021, respectively. The Company paid cash taxes of $240 million, $186 million, and $200 million in fiscal 2023, 2022, and 2021, respectively. The reconciliation between U.S. Federal income taxes at the statutory rate and the Company’s benefit for income taxes on continuing operations for fiscal years ended are as follows: 2023 2022 2021 U.S. Federal income tax expense at the statutory rate $ 156 $ 196 $ 190 Adjustments to reconcile to the income tax provision: U.S. state income tax expense 5 20 11 Federal and state credits (18 ) (15 ) (10 ) Share-based compensation — (3 ) (8 ) Tax law changes — (17 ) 11 Withholding taxes 10 6 13 Changes in foreign valuation allowance 7 (5 ) (14 ) Foreign income taxed in the U.S. 17 8 12 Rate differences between U.S. and foreign (22 ) (8 ) (8 ) Sale of subsidiary — — 16 Permanent foreign currency differences — — (30 ) Uncertain tax positions, net (20 ) (19 ) (5 ) Other (2 ) 5 (6 ) Expense for income taxes $ 133 $ 168 $ 172 Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax liability as of fiscal years ended are as follows: 2023 2022 Deferred tax assets: Accrued liabilities and reserves $ 72 $ 75 Inventories 13 11 Net operating loss carryforward 274 235 Interest expense carryforward 121 107 Lease liability 159 134 Research and development credit carryforward 13 13 Federal and state tax credits 11 9 Capitalization research and development expenditures 39 — Other 38 48 Total deferred tax assets 740 632 Valuation allowance (114 ) (104 ) Total deferred tax assets, net of valuation allowance 626 528 Deferred tax liabilities: Property, plant and equipment 471 450 Intangible assets 437 471 Derivatives 22 94 Leased asset 155 131 Other 22 24 Total deferred tax liabilities 1,107 1,170 Net deferred tax liability $ (481 ) $ (642 ) The Company had $92 million of net deferred tax assets recorded in Other assets, and $573 million of net deferred tax liabilities recorded in Deferred income taxes on the Consolidated Balance Sheets. As of September 30, 2023, the Company has recorded deferred tax assets related to federal, state, and foreign net operating losses, interest expense, and tax credits. These attributes are spread across multiple jurisdictions and generally have expiration periods beginning in 2021 while a portion remains available indefinitely. Each attribute has been assessed for realization and a valuation allowance is recorded against the deferred tax assets to bring the net amount recorded to the amount more likely than not to be realized. The valuation allowance against deferred tax assets was $114 million and $104 million as of the fiscal years ended 2023 and 2022, respectively, related to the foreign and U.S. federal and state operations. The Company is permanently reinvested except to the extent the foreign earnings are previously taxed or to the extent that we have sufficient basis in our non-U.S. subsidiaries to repatriate earnings on an income tax free basis. Uncertain Tax Positions The following table summarizes the activity related to our gross unrecognized tax benefits for fiscal years ended: 2023 2022 Beginning unrecognized tax benefits $ 121 $ 159 Gross increases – tax positions in prior periods 17 2 Gross decreases - tax positions in prior periods (11 ) (19 ) Gross increases – current period tax positions 12 13 Settlements — (9 ) Lapse of statute of limitations (32 ) (25 ) Ending unrecognized tax benefits $ 107 $ 121 As of fiscal year end 2023, the amount of unrecognized tax benefit that, if recognized, would affect our effective tax rate was $105 million and we had $33 million accrued for payment of interest and penalties related to our uncertain tax positions. Our penalties and interest related to uncertain tax positions are included in income tax expense. As a result of global operations, we file income tax returns in the U.S. federal, various state and local, and foreign jurisdictions and are routinely subject to examination by taxing authorities throughout the world. Excluding potential adjustments to net operating losses, the U.S. federal and state income tax returns are no longer subject to income tax assessments for years before 2019. With few exceptions, the major foreign jurisdictions are no longer subject to income tax assessments for year before 2016. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Plans [Abstract] | |
Retirement Plans | 7. Retirement Plans The Company sponsors defined contribution retirement plans covering substantially all employees. Contributions are based upon a fixed dollar amount for employees who participate and percentages of employee contributions at specified thresholds. Contribution expense for these plans was $40 million, $42 million, and $45 million for fiscal 2023, 2022, and 2021, respectively. The majority of the North American and UK defined benefit pension plans, which cover certain manufacturing facilities, are closed to future entrants. The assets of all the plans are held in a separate trustee administered fund to meet long-term liabilities for past and present employees. The majority, $63 million, of Mainland Europe’s total underfunded status relates to non-contributory pension plans within our German operations. There is no external funding for these plans although they are secured by insolvency insurance required under German law. In general, the plans provide a fixed retirement benefit not related to salaries and are closed to new entrants. The net amount of liability recognized is included in Employee Benefit Obligations on the Consolidated Balance Sheets. The Company uses fiscal year end as a measurement date for the retirement plans. 2023 2022 Change in Projected Benefit Obligations (PBO) North America UK Mainland Europe Total North America UK Mainland Europe Total Beginning of period $ 252 $ 480 $ 124 $ 856 $ 338 $ 888 $ 196 $ 1,422 Service cost — — 4 4 — 1 5 6 Interest cost 12 26 5 43 8 17 2 27 Currency — 54 11 65 (1 ) (152 ) (30 ) (183 ) Actuarial loss (gain) (10 ) (26 ) (5 ) (41 ) (77 ) (244 ) (37 ) (358 ) Benefit settlements (20 ) — (1 ) (21 ) — — (5 ) (5 ) Benefits paid (16 ) (29 ) (7 ) (52 ) (16 ) (30 ) (7 ) (53 ) End of period $ 218 $ 505 $ 131 $ 854 $ 252 $ 480 $ 124 $ 856 2023 2022 Change in Fair Value of Plan Assets North America UK Mainland Europe Total North America UK Mainland Europe Total Beginning of period $ 228 $ 446 $ 40 $ 714 $ 286 $ 828 $ 53 $ 1,167 Currency — 51 2 53 (1 ) (146 ) (7 ) (154 ) Return on assets 29 (73 ) 1 (43 ) (41 ) (225 ) (2 ) (268 ) Contributions — 19 8 27 — 19 8 27 Benefit settlements (20 ) — (1 ) (21 ) — — (5 ) (5 ) Benefits paid (16 ) (29 ) (7 ) (52 ) (16 ) (30 ) (7 ) (53 ) End of period $ 221 $ 414 $ 43 $ 678 $ 228 $ 446 $ 40 $ 714 Underfunded status $ 3 $ (91 ) $ (88 ) $ (176 ) $ (24 ) $ (34 ) $ (84 ) $ (142 ) At the end of fiscal 2023, the Company had $112 million of net unrealized losses recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets. The Company expects less than $1 million to be realized in fiscal 2024. The following table presents significant weighted-average assumptions used to determine benefit obligation and benefit cost for the fiscal years ended: (Percentages) 2023 North America UK Mainland Europe Weighted-average assumptions: Discount rate for benefit obligation 5.6 5.5 4.1 Discount rate for net benefit cost 5.1 5.2 3.7 Expected return on plan assets for net benefit costs 6.1 5.7 2.6 (Percentages) 2022 North America UK Mainland Europe Weighted-average assumptions: Discount rate for benefit obligation 5.1 5.2 3.6 Discount rate for net benefit cost 2.5 2.1 1.0 Expected return on plan assets for net benefit costs 6.1 4.2 2.1 In evaluating the expected return on plan assets, Berry considered its historical assumptions compared with actual results, an analysis of current market conditions, asset allocations, and the views of advisors. The return on plan assets is derived from target allocations and historical yield by asset type. A one quarter of a percentage point reduction of expected return on pension assets, mortality rate or discount rate applied to the pension liability would result in an immaterial change to the Company’s pension expense. In accordance with the guidance from the FASB for employers’ disclosure about postretirement benefit plan assets the table below discloses fair values of each pension plan asset category and level within the fair value hierarchy in which it falls. There were no material changes or transfers between level 3 assets and the other levels. Fiscal 2023 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 23 $ — $ — $ 23 U.S. large cap comingled equity funds 80 — — 80 U.S. mid cap equity mutual funds 33 — — 33 U.S. small cap equity & Corporate bond mutual funds 2 — — 2 International equity mutual funds 6 33 — 39 Real estate equity investment funds — 21 105 126 Corporate bonds — 97 70 167 International fixed income funds 6 158 — 164 International insurance policies — — 44 44 Total $ 150 $ 309 $ 219 $ 678 Fiscal 2022 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 14 $ — $ — $ 14 U.S. large cap comingled equity funds 69 — — 69 U.S. mid cap equity mutual funds 35 — — 35 U.S. small cap equity & Corporate bond mutual funds 4 — — 4 International equity mutual funds 9 99 — 108 Real estate equity investment funds 4 26 94 124 Corporate bonds — 128 56 184 International fixed income funds 5 130 — 135 International insurance policies — — 41 41 Total $ 140 $ 383 $ 191 $ 714 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the fiscal year end: North America UK Mainland Europe Total 2024 $ 18 $ 29 $ 9 $ 56 2025 16 30 7 53 2026 16 31 6 53 2027 17 32 7 56 2028 17 33 8 58 2029-2033 80 179 49 308 Net pension expense is recorded in Cost of goods sold 2023 2022 2021 Service cost $ 4 $ 6 $ 5 Interest cost 43 27 24 Amortization of net actuarial loss 1 3 9 Expected return on plan assets (46 ) (51 ) (51 ) Net periodic benefit expense (income) $ 2 $ (15 ) $ (13 ) Our defined benefit pension plan asset allocations as of fiscal years ended are as follows: Asset Category 2023 2022 Equity securities and equity-like instruments 41 % 47 % Debt securities and debt-like 49 45 International insurance policies 7 6 Other 3 2 Total 100 % 100 % The Company’s retirement plan assets are invested with the objective of providing the plans the ability to fund current and future benefit payment requirements while minimizing annual Company contributions. The retirement plans held $31 million of the Company’s stock at the end of fiscal 2023. The Company re-addresses the allocation of its investments on a regular basis. |
Restructuring and Transaction A
Restructuring and Transaction Activities | 12 Months Ended |
Sep. 30, 2023 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring and Transaction Activities | 8. Restructuring and Transaction Activities In the current fiscal year, the Company initiated cost savings initiatives including plant rationalization in all segments as part of the 2023 restructuring plan. The Company expects total cash and non-cash expense to be approximately $ million, with the operations savings intended to counter general economic softness. The initiatives are expected to be fully implemented by the end of fiscal 2025. The table below includes the significant components of our restructuring and transaction activities recognized for the fiscal years ended, by reporting segment: 2023 2022 2021 Consumer Packaging International $ 50 $ 10 $ 56 Consumer Packaging North America 23 5 — Engineered Materials 7 2 (4 ) Health, Hygiene & Specialties 22 6 (1 ) Consolidated $ 102 $ 23 $ 51 Transaction activities consist of acquisition, divestiture and other business optimization related costs. The table below sets forth the activity with respect to the restructuring charges and the impact on our accrued restructuring reserves: Restructuring (a) Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Transaction Activities Total Balance as of fiscal 2021 $ 6 $ 5 $ — $ — $ 11 Charges 7 9 — 7 23 Cash (11 ) (11 ) — (7 ) (29 ) Balance as of fiscal 2022 $ 2 $ 3 $ — $ — $ 5 Charges 39 23 8 32 102 Non-cash items — — (8 ) — (8 ) Cash (31 ) (25 ) — (32 ) (88 ) Balance as of fiscal 2023 $ 10 $ 1 $ — $ — $ 11 (a) Since 2021, cumulative costs attributed to restructuring programs total $105 million. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Share Repurchases During fiscal 2023, the Company repurchased approximately 9.8 million shares for $601 million, at an average price of $61.00. During fiscal 2022, the Company repurchased approximately 12.2 million shares for $709 million, at an average price of $58.30. No shares were repurchased during fiscal 2021. All share repurchases were immediately retired. Common stock was reduced by the number of shares retired at $0.01 par value per share. The Company allocates the excess purchase price over par value between additional paid-in capital and retained earnings. As of fiscal 2023, authorized repurchases of $442 million remain available to the Company. Equity Incentive Plans The Company has shareholder-approved stock plans under which options and restricted stock units have been granted to employees at the market value of the Company's stock on the date of grant. In fiscal 2021, the Company amended the 2015 Berry Global Group, Inc. Long-Term Incentive Plan to authorize the issuance of million shares, an increase of million shares from the previous authorizati on. Information related to the equity incentive plans as of the fiscal years ended are as follows: 2023 2022 Number of Shares (in thousands) Weighted Average Exercise Price Number of Shares (in thousands) Weighted Average Exercise Price Options outstanding, beginning of period 11,656 $ 47.33 11,302 $ 44.54 Options granted 1,343 56.93 1,192 66.47 Options exercised (1,041 ) 35.85 (752 ) 35.31 Options forfeited or cancelled (122 ) 53.96 (86 ) 51.72 Options outstanding, end of period 11,836 $ 49.36 11,656 $ 47.33 Option price range at end of period $ 21.00-66.47 $ 16.00-66.47 Options exercisable at end of period 7,349 6,718 Weighted average fair value of options granted during period $ 17.53 $ 20.73 Generally, options vest annually in equal installments commencing from the date of grant and have a vesting term of either four or , depending on the grant date, and an expiration term of years from the date of grant. 2023 2022 2021 Risk-free interest rate 3.8 % 1.3 % 0.5 % Dividend yield 1.7 % 0.0 % 0.0 % Volatility factor 31.0 % 29.7 % 30.4 % The following table summarizes information about the options outstanding as of fiscal 2023: Intrinsic Value of Outstanding (in millions) Weighted Remaining Contractual Life Number Exercisable (in thousands) Intrinsic Value of Exercisable (in millions) Unrecognized Compensation (in millions) Weighted Recognition Period $ 154 5.7 years 7,349 $ 117 $ 43 1.4 years The Company's issued restricted stock units generally vest in equal installments over four years. Compensation cost is recorded based upon the fair value of the shares at the grant date. 2023 2022 Number of Shares (in thousands) Weighted Average Grant Price Number of Shares (in thousands) Weighted Average Grant Price Awards outstanding, beginning of period 354 $ 61.99 196 $ 54.22 Awards granted 434 56.93 232 66.47 Awards vested (105 ) 61.46 (64 ) 54.70 Awards forfeited or cancelled (23 ) 59.75 (10 ) 60.30 Awards outstanding, end of period 660 $ 58.82 354 $ 61.99 The Company had equity incentive shares available for grant of 5.0 million and 7.1 million as of September 30, 2023 and October 1, 2022, respectively. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Sep. 30, 2023 | |
Segment and Geographic Data [Abstract] | |
Segment and Geographic Data | 10. Segment and Geographic Data Berry’s operations are organized into four reporting segments: Consumer Packaging International, Consumer Packaging North America, Engineered Materials, and Health, Hygiene & Specialties. The structure is designed to align us with our customers, provide improved service, and drive future growth in a cost efficient manner. Selected information by reportable segment is presented in the following tables: 2023 2022 2021 Net sales Consumer Packaging International $ 4,031 $ 4,293 $ 4,242 Consumer Packaging North America 3,122 3,548 3,141 Engineered Materials 2,884 3,488 3,309 Health, Hygiene & Specialties 2,627 3,166 3,158 Total $ 12,664 $ 14,495 $ 13,850 Operating income Consumer Packaging International $ 273 $ 346 $ 317 Consumer Packaging North America 346 338 276 Engineered Materials 333 328 301 Health, Hygiene & Specialties 127 230 398 Total $ 1,079 $ 1,242 $ 1,292 Depreciation and amortization Consumer Packaging International $ 310 $ 317 $ 341 Consumer Packaging North America 217 214 224 Engineered Materials 114 112 112 Health, Hygiene & Specialties 177 176 177 Total $ 818 $ 819 $ 854 2023 2022 Total assets: Consumer Packaging International $ 6,217 $ 6,993 Consumer Packaging North America 4,312 3,992 Engineered Materials 2,476 2,236 Health, Hygiene & Specialties 3,582 3,735 Total assets $ 16,587 $ 16,956 Selected information by geographical region is presented in the following tables: 2023 2022 2021 Net sales: United States and Canada $ 6,893 $ 7,907 $ 7,351 Europe 4,559 5,065 4,898 Rest of world 1,212 1,523 1,601 Total net sales $ 12,664 $ 14,495 $ 13,850 2023 2022 Long-lived assets: United States and Canada $ 6,893 $ 6,826 Europe 3,800 3,616 Rest of world 1,361 1,350 Total long-lived assets $ 12,054 $ 11,792 Selected information by product line is presented in the following tables: (in percentages) 2023 2022 2021 Net sales: Packaging 76 % 76 % 81 % Non-packaging 24 24 19 Consumer Packaging International 100 % 100 % 100 % Rigid Open Top 66 % 62 % 57 % Rigid Closed Top 34 38 43 Consumer Packaging North America 100 % 100 % 100 % Core Films 60 % 59 % 63 % Retail & Industrial 40 41 37 Engineered Materials 100 % 100 % 100 % Health 14 % 14 % 18 % Hygiene 48 51 47 Specialties 38 35 35 Health, Hygiene & Specialties 100 % 100 % 100 % |
Net Income per Share
Net Income per Share | 12 Months Ended |
Sep. 30, 2023 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Net Income per Share | 11. Net Income per Share Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted EPS includes the effects of options and restricted stock units, if dilutive. The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: (in millions, except per share amounts) 2023 2022 2021 Numerator Consolidated net income $ 609 $ 766 $ 733 Denominator Weighted average common shares outstanding - basic 120.1 130.6 134.6 Dilutive shares 2.9 2.2 3.7 Weighted average common and common equivalent shares outstanding - diluted 123.0 132.8 138.3 Per common share earnings Basic $ 5.07 $ 5.87 $ 5.45 Diluted $ 4.95 $ 5.77 $ 5.30 1 million shares were excluded from the fiscal 2023 and 2022 diluted EPS calculation, respectively, as their effect would be anti-dilutive. No shares were excluded from the fiscal 2021 calculation. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Event [Abstract] | |
Subsequent Events | 12. Subsequent Events In October 2023, the Company extended the maturity date of $1,550 million of the Term Loans and $950 million of outstanding interest rate swaps to July 2029. In November 2023 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Berry Global Group, Inc.’s (“Berry,” “we,” or the “Company”) consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commissions. Periods presented in these financial statements include fiscal periods ending September 30, 2023 (“fiscal 2023”), October 1, 2022 (“fiscal 2022”), and October 2, 2021 (“fiscal 2021”). |
Fiscal Period | The Company’s U.S. based results for fiscal 2023 and fiscal 2022 are based on a fifty-two week period. Fiscal 2021 was based on a fifty-three week period. |
Consolidation | The consolidated financial statements include the accounts of Berry and its subsidiaries, all of which includes our wholly owned and majority owned subsidiaries. The Company has certain foreign subsidiaries that report on a calendar period basis which we consolidate into our respective fiscal period. Intercompany accounts and transactions have been eliminated in consolidation. |
Revenue Recognition | Our revenues are primarily derived from the sale of non-woven, flexible and rigid products. Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer using the most likely amount method. Our main sources of variable consideration are customer rebates. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Generally, our revenue is recognized at a point in time for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The accrual for customer rebates was $106 million and $103 million at September 30, 2023 and October 1, 2022, respectively, and is included in Other current liabilities on the Consolidated Balance Sheets. The Company disaggregates revenue based on reportable business segment, geography, and significant product line. See Note 10. Segment and Geographic Data. |
Accounts Receivable | Accounts receivable are presented net of allowance for credit losses of $19 million and $18 million at September 30, 2023 and October 1, 2022, respectively. The Company records current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented. |
Factoring Agreements | The Company has entered into various factoring agreements, primarily customer-based supply chain financing programs, to sell certain receivables to third-party financial institutions. Agreements which result in true sales of the transferred receivables, which occur when receivables are transferred without recourse to the Company, are reflected as a reduction of trade receivables, net on the consolidated balance sheets and the proceeds are included in the cash flows from operating activities in the consolidated statements of cash flows. |
Research and Development | Research and Development Research and development costs are expensed when incurred. The Company incurred research and development expenditures of $82 million, $81 million, and $90 million in fiscal 2023, 2022, and 2021, respectively. |
Stock-Based Compensation | Share-Based Compensation The Company recognized total share-based compensation expense of $42 million, $39 million, and $40 million for fiscal 2023, 2022, and 2021, respectively. The share-based compensation plan is more fully described in Note 9. Stockholders’ Equity. |
Foreign Currency | Foreign Currency For the non-U.S. subsidiaries that account in a functional currency other than U.S. dollars, assets and liabilities are translated into U.S. dollars using period-end exchange rates. Sales and expenses are translated at the average exchange rates in effect during the period. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss within Stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in the Consolidated Statements of Income. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments purchased with a maturity of three months or less from the time of purchase are considered to be cash equivalents. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value and are valued using the first-in, first-out method. Management periodically reviews inventory balances, using recent and future expected sales to identify slow-moving and/or obsolete items. The cost of spare parts is charged to cost of goods sold when purchased. We evaluate our reserve for inventory obsolescence on a quarterly basis and review inventory on-hand to determine future salability. We base our determinations on the age of the inventory and the experience of our personnel. We reserve inventory that we deem to be not salable in the quarter in which we make the determination. We believe, based on past history and our policies and procedures, that our net inventory is salable. Inventory as of fiscal 2023 and 2022 was: Inventories: 2023 2022 Finished goods $ 933 $ 1,010 Raw materials 624 792 $ 1,557 $ 1,802 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets ranging from 15 to 40 years for buildings and improvements, 2 to 20 years for machinery, equipment, and tooling, and over the term of the agreement for capital leases. Leasehold improvements are depreciated over the shorter of the useful life of the improvement or the lease term. Repairs and maintenance costs are charged to expense as incurred. Property, plant and equipment as of fiscal 2023 and 2022 was: Property, plant and equipment: 2023 2022 Land, buildings and improvements $ 1,693 $ 1,602 Equipment and construction in progress 7,570 6,916 9,263 8,518 Less accumulated depreciation (4,687 ) (4,176 ) $ 4,576 $ 4,342 |
Long-Lived Assets | Long-lived Assets Long-lived assets, including property, plant and equipment and definite lived intangible assets are reviewed for impairment in accordance with ASC 360, “Property, Plant and Equipment,” whenever facts and circumstances indicate that the carrying amount may not be recoverable. Specifically, this process involves comparing an asset’s carrying value to the estimated undiscounted future cash flows the asset is expected to generate over its remaining life. If this process were to result in the conclusion that the carrying value of a long-lived asset would not be recoverable, a write-down of the asset to fair value would be recorded through a charge to operations. |
Goodwill | Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows: Consumer Packaging International Consumer Packaging North America Engineered Materials Health, Hygiene & Specialties Total Balance as of fiscal 2021 $ 2,016 $ 1,541 $ 699 $ 936 $ 5,192 Foreign currency translation adjustment (250 ) (1 ) (37 ) (18 ) (306 ) Dispositions (54 ) — — — (54 ) Balance as of fiscal 2022 $ 1,712 $ 1,540 $ 662 $ 918 $ 4,832 Foreign currency translation adjustment 81 1 17 12 111 Pro-Western acquisition (See Note 2.) — 38 — — 38 Balance as of fiscal 2023 $ 1,793 $ 1,579 $ 679 $ 930 $ 4,981 In fiscal year 2023, the Company completed a qualitative analysis to evaluate impairment of goodwill and concluded that it was more likely than not that the fair value for each reporting unit exceeded the carrying amount. We reached this conclusion based on the stable valuations within the packaging industry and operating results of our reporting units, in addition to value indications provided from third parties related to the Company's evaluation of strategic alternatives for the Health, Hygiene & Specialties segment. As a result of our annual impairment evaluations the Company concluded that no impairment existed in fiscal 2023. |
Deferred Financing Fees | Deferred Financing Fees Deferred financing fees are amortized to interest expense using the effective interest method over the lives of the respective debt agreements. Pursuant to ASC 835-30, the Company presents $34 million and $60 million as of fiscal 2023 and fiscal 2022, respectively, of debt issuance and deferred financing costs on the balance sheet as a deduction from the carrying amount of the related debt liability, instead of a deferred charge. |
Intangible Assets | Intangible Assets The changes in the carrying amount of intangible assets are as follows: Customer Relationships Trademarks Other Intangibles Accumulated Amortization Total Balance as of fiscal 2021 $ 3,329 $ 525 $ 122 $ (1,734 ) $ 2,242 Foreign currency translation adjustment (172 ) (31 ) (1 ) 66 (138 ) Amortization expense — — — (257 ) (257 ) Additions — — 6 — 6 Balance as of fiscal 2022 $ 3,157 $ 494 $ 127 $ (1,925 ) $ 1,853 Foreign currency translation adjustment 69 12 1 (27 ) 55 Amortization expense — — — (243 ) (243 ) Pro-Western acquisition (See Note 2.) 35 3 — — 38 Balance as of fiscal 2023 $ 3,261 $ 509 $ 128 $ (2,195 ) $ 1,703 Customer relationships are being amortized using an accelerated amortization method which corresponds with the customer attrition rates used in the initial valuation of the intangibles over the estimated life of the relationships which range from 5 to 17 years. Definite lived trademarks are being amortized using the straight-line method over the estimated life of the assets which are not more than 15 years. Other intangibles, which include technology and licenses, are being amortized using the straight-line method over the estimated life of the assets which range from 5 to 14 years. The Company has trademarks that total $248 million that are indefinite lived and we test annually for impairment on the first day of the fourth quarter. We completed the annual impairment test of our indefinite lived trade names utilizing the qualitative method in 2023, 2022, and 2021 and noted no impairment. Future amortization expense for definite lived intangibles as of fiscal 2023 for the next five fiscal years is $232 million, $219 million, $204 million, $171 million, and $147 million each year for fiscal years ending 2024, 2025, 2026, 2027, and 2028, respectively. |
Insurable Liabilities | Insurable Liabilities The Company records liabilities for the self-insured portion of workers’ compensation, health, product, general and auto liabilities. The determination of these liabilities and related expenses is dependent on claims experience. For most of these liabilities, claims incurred but not yet reported are estimated based upon historical claims experience. |
Leases | Leases The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. We recognize right-of-use assets and lease liabilities for leases with original lease terms greater than one year based on the present value of lease payments over the lease term using our incremental borrowing rate on a collateralized basis. Short-term leases, with original lease terms of less than one year, are not recognized on the balance sheet. We are party to certain leases, namely for manufacturing facilities, which offer renewal options to extend the original lease term. Renewal options are included in the right-of-use asset and lease liability based on our assessment of the probability that the options will be exercised. See Note 5. Commitments, Leases and Contingencies. At September 30, 2023, annual lease commitments were as follows: Fiscal Year Operating Leases Finance Leases 2024 $ 117 $ 10 2025 106 7 2026 95 9 2027 83 1 2028 70 1 Thereafter 311 3 Total lease payments 782 31 Less: Interest (141 ) (3 ) Present value of lease liabilities $ 641 $ 28 |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability approach, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the period in which the underlying transactions are recorded. Deferred taxes, with the exception of non-deductible goodwill, are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and such amounts as measured by tax laws. If the Company determines that a deferred tax asset arising from temporary differences is not likely to be utilized, the Company will establish a valuation allowance against that asset to record it at its expected realizable value. The Company recognizes uncertain tax positions when it is more likely than not that the tax position will be sustained upon examination by relevant taxing authorities, based on the technical merits of the position. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company’s effective tax rate is dependent on many factors including: the impact of enacted tax laws in jurisdictions in which the Company operates; the amount of earnings by jurisdiction, due to varying tax rates in each country; and the Company’s ability to utilize foreign tax credits related to foreign taxes paid on foreign earnings that will be remitted to the U.S. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes net unrealized gains or losses resulting from currency translations of foreign subsidiaries, changes in the value of our derivative instruments and adjustments to the pension liability. The accumulated balances related to each component of other comprehensive income (loss), net of tax before reclassifications were as follows: Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance as of fiscal 2020 $ (278 ) $ (116 ) $ (157 ) $ (551 ) Other comprehensive income (loss) 124 (5 ) 70 189 Net amount reclassified from accumulated other comprehensive income (loss) — 54 12 66 Balance as of fiscal 2021 $ (154 ) $ (67 ) $ (75 ) $ (296 ) Other comprehensive income (loss) (301 ) 32 158 (111 ) Net amount reclassified from accumulated other comprehensive income (loss) — 3 1 4 Balance as of fiscal 2022 $ (455 ) $ (32 ) $ 84 $ (403 ) Other comprehensive income (loss) 115 (53 ) 39 101 Net amount reclassified from accumulated other comprehensive income (loss) — 1 (35 ) (34 ) Balance as of fiscal 2023 $ (340 ) $ (84 ) $ 88 $ (336 ) |
Pension | Pension The accounting for our pension plans requires us to recognize the overfunded or underfunded status of the pension plans on our balance sheet. The selection of assumptions is based on historical trends and known economic and market conditions at the time of valuation, as well as independent studies of trends performed by our actuaries. Pension benefit costs include assumptions for the discount rate, mortality rate, retirement age, and expected return on plan assets. Retiree medical plan costs include assumptions for the discount rate, retirement age, and health-care-cost trend rates. We review annually the discount rate used to calculate the present value of pension plan liabilities. The discount rate used at each measurement date is set based on a high-quality corporate bond yield curve, derived based on bond universe information sourced from reputable third-party indices, data providers, and rating agencies. In countries where there is no deep market in corporate bonds, we have used a government bond approach to set the discount rate. In evaluating other assumptions, the Company considers many factors, including an evaluation of expected return on plan assets and the health-care-cost trend rates of other companies; historical assumptions compared with actual results; an analysis of current market conditions and asset allocations; and the views of advisers. |
Net Income Per Share | Net Income Per Share The Company calculates basic net income per share based on the weighted-average number of outstanding common shares. The Company calculates diluted net income per share based on the weighted-average number of outstanding common shares plus the effect of dilutive securities. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make extensive use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of sales and expenses. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the event or circumstances giving rise to such changes occur. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Reference Rate Reform During fiscal 2023, the Company adopted ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The Company's adoption did not result in a material change to our consolidated financial statements or disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Inventories | Inventories are stated at the lower of cost or net realizable value and are valued using the first-in, first-out method. Management periodically reviews inventory balances, using recent and future expected sales to identify slow-moving and/or obsolete items. The cost of spare parts is charged to cost of goods sold when purchased. We evaluate our reserve for inventory obsolescence on a quarterly basis and review inventory on-hand to determine future salability. We base our determinations on the age of the inventory and the experience of our personnel. We reserve inventory that we deem to be not salable in the quarter in which we make the determination. We believe, based on past history and our policies and procedures, that our net inventory is salable. Inventory as of fiscal 2023 and 2022 was: Inventories: 2023 2022 Finished goods $ 933 $ 1,010 Raw materials 624 792 $ 1,557 $ 1,802 |
Property, Plant and Equipment | Property, plant and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the assets ranging from 15 to 40 years for buildings and improvements, 2 to 20 years for machinery, equipment, and tooling, and over the term of the agreement for capital leases. Leasehold improvements are depreciated over the shorter of the useful life of the improvement or the lease term. Repairs and maintenance costs are charged to expense as incurred. Property, plant and equipment as of fiscal 2023 and 2022 was: Property, plant and equipment: 2023 2022 Land, buildings and improvements $ 1,693 $ 1,602 Equipment and construction in progress 7,570 6,916 9,263 8,518 Less accumulated depreciation (4,687 ) (4,176 ) $ 4,576 $ 4,342 |
Goodwill | The changes in the carrying amount of goodwill by reportable segment are as follows: Consumer Packaging International Consumer Packaging North America Engineered Materials Health, Hygiene & Specialties Total Balance as of fiscal 2021 $ 2,016 $ 1,541 $ 699 $ 936 $ 5,192 Foreign currency translation adjustment (250 ) (1 ) (37 ) (18 ) (306 ) Dispositions (54 ) — — — (54 ) Balance as of fiscal 2022 $ 1,712 $ 1,540 $ 662 $ 918 $ 4,832 Foreign currency translation adjustment 81 1 17 12 111 Pro-Western acquisition (See Note 2.) — 38 — — 38 Balance as of fiscal 2023 $ 1,793 $ 1,579 $ 679 $ 930 $ 4,981 |
Intangible Assets | The changes in the carrying amount of intangible assets are as follows: Customer Relationships Trademarks Other Intangibles Accumulated Amortization Total Balance as of fiscal 2021 $ 3,329 $ 525 $ 122 $ (1,734 ) $ 2,242 Foreign currency translation adjustment (172 ) (31 ) (1 ) 66 (138 ) Amortization expense — — — (257 ) (257 ) Additions — — 6 — 6 Balance as of fiscal 2022 $ 3,157 $ 494 $ 127 $ (1,925 ) $ 1,853 Foreign currency translation adjustment 69 12 1 (27 ) 55 Amortization expense — — — (243 ) (243 ) Pro-Western acquisition (See Note 2.) 35 3 — — 38 Balance as of fiscal 2023 $ 3,261 $ 509 $ 128 $ (2,195 ) $ 1,703 |
Annual Lease Commitments Under Operating and Finance Leases | At September 30, 2023, annual lease commitments were as follows: Fiscal Year Operating Leases Finance Leases 2024 $ 117 $ 10 2025 106 7 2026 95 9 2027 83 1 2028 70 1 Thereafter 311 3 Total lease payments 782 31 Less: Interest (141 ) (3 ) Present value of lease liabilities $ 641 $ 28 |
Accumulated Other Comprehensive Income (Loss) | The accumulated balances related to each component of other comprehensive income (loss), net of tax before reclassifications were as follows: Currency Translation Defined Benefit Pension and Retiree Health Benefit Plans Derivative Instruments Accumulated Other Comprehensive Loss Balance as of fiscal 2020 $ (278 ) $ (116 ) $ (157 ) $ (551 ) Other comprehensive income (loss) 124 (5 ) 70 189 Net amount reclassified from accumulated other comprehensive income (loss) — 54 12 66 Balance as of fiscal 2021 $ (154 ) $ (67 ) $ (75 ) $ (296 ) Other comprehensive income (loss) (301 ) 32 158 (111 ) Net amount reclassified from accumulated other comprehensive income (loss) — 3 1 4 Balance as of fiscal 2022 $ (455 ) $ (32 ) $ 84 $ (403 ) Other comprehensive income (loss) 115 (53 ) 39 101 Net amount reclassified from accumulated other comprehensive income (loss) — 1 (35 ) (34 ) Balance as of fiscal 2023 $ (340 ) $ (84 ) $ 88 $ (336 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Long-term debt consists of the following: Facility Maturity Date 2023 2022 Term loan (a) July 2026 (d) $ 3,090 $ 3,440 Revolving line of credit June 2028 — — 0.95 (b) February 2024 279 800 1.00 (c) July 2025 741 686 1.57 January 2026 1,525 1,525 4.875 July 2026 1,250 1,250 1.65 January 2027 400 400 1.50 (c) July 2027 397 367 5.50 April 2028 500 — 4.50 February 2026 291 298 5.625 July 2027 500 500 Debt discounts and deferred fees (34 ) (60 ) Finance leases and other Various 41 49 Total long-term debt 8,980 9,255 Current portion of long-term debt (10 ) (13 ) Long-term debt, less current portion $ 8,970 $ 9,242 (a) Effectively 88% fixed interest rate with interest rate swaps (see Note 4). (b) Indicates debt which has been classified as long-term debt in accordance with the Company's ability and intention to refinance such obligations on a long-term basis. (c) Euro denominated (d) In October 2023, the Company extended the maturity date of $1,550 million of the Term Loans to 2029. |
Future Maturities of Long-Term Debt | Future maturities of long-term debt as of fiscal year end 2023 are as follows: Fiscal Year Maturities 2024 $ 289 2025 749 2026 6,167 2027 1,299 2028 503 Thereafter 7 $ 9,014 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Fair Value of Derivatives and Location on Consolidated Balance Sheets | Balances of our derivative instruments on a gross basis are as follows: Derivative Instruments Hedge Designation Balance Sheet Location 2023 2022 Cross-currency swaps Designated Other assets $ — $ 147 Cross-currency swaps Designated Other current liabilities 66 — Cross-currency swaps Designated Other long-term liabilities 19 — Interest rate swaps Designated Other assets 36 11 Interest rate swaps Not designated Other assets 8 — Interest rate swaps Designated Other long-term liabilities — 3 Interest rate swaps Not designated Other long-term liabilities 104 117 |
Effect of Derivatives on Consolidated Statements of Income | The effect of the Company’s derivative instruments on the Consolidated Statements of Income is as follows: Derivative instruments Statements of Income Location 2023 2022 2021 Cross-currency swaps Interest expense $ (41 ) $ (21 ) $ (8 ) Interest rate swaps Interest expense (59 ) 40 69 |
Assets Measured at Fair Value on Non-recurring Basis | Included in the following tables are the major categories of assets and their current carrying values, along with the impairment 2023 Level 1 Level 2 Level 3 Total Impairment Indefinite lived trademarks $ — $ — $ 248 $ 248 $ — Goodwill — — 4,981 4,981 — Definite lived intangible assets — — 1,455 1,455 — Property, plant and equipment — — 4,576 4,576 8 Total $ — $ — $ 11,260 $ 11,260 $ 8 2022 Level 1 Level 2 Level 3 Total Impairment Indefinite lived trademarks $ — $ — $ 247 $ 247 $ — Goodwill — — 4,832 4,832 — Definite lived intangible assets — — 1,606 1,606 — Property, plant and equipment — — 4,342 4,342 — Total $ — $ — $ 11,027 $ 11,027 $ — |
Commitments, Leases and Conti_2
Commitments, Leases and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Contingencies and Commitments [Abstract] | |
Lease Assets and Liabilities | Leases Classification 2023 2022 Operating leases: Operating lease right-of-use assets Right-of-use asset $ 625 $ 521 Current operating lease liabilities Other current liabilities 116 108 Noncurrent operating lease liabilities Operating lease liability 525 429 Finance leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 32 $ 38 Current finance lease liabilities Current portion of long-term debt 9 9 Noncurrent finance lease liabilities Long-term debt, less current portion 19 24 |
Lease Cash Flow and Lease Expense | L ease Type Cash Flow Classification Lease Expense Category 2023 2022 Operating leases Operating cash flows Lease cost $ 141 $ 132 Finance leases Operating cash flows Interest expense 1 2 Finance leases Financing cash flows - 5 19 Finance leases - Amortization of right-of-use assets 9 9 |
Weighted Average Remaining Lease Terms and Discount Rates | 2023 2022 Weighted-average remaining lease term - operating leases 9 years 7 years Weighted-average remaining lease term - finance leases 2 years 3 years Weighted-average discount rate - operating leases 5.0 % 4.5 % Weighted-average discount rate - finance leases 4.5 % 4.5 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense | The Company is being taxed at the U.S. corporate level as a C-Corporation and has provided U.S. Federal, State and foreign income taxes. Significant components of income tax expense for the fiscal years ended are as follows: 2023 2022 2021 Current U.S. Federal $ 118 $ 87 $ 56 State 25 20 14 Non-U.S. 107 109 175 Total current 250 216 245 Deferred: U.S. Federal (26 ) 4 17 State (26 ) (7 ) (6 ) Non-U.S. (65 ) (45 ) (84 ) Total deferred (117 ) (48 ) (73 ) Expense for income taxes $ 133 $ 168 $ 172 |
Effective Income Tax Rate Reconciliation | The reconciliation between U.S. Federal income taxes at the statutory rate and the Company’s benefit for income taxes on continuing operations for fiscal years ended are as follows: 2023 2022 2021 U.S. Federal income tax expense at the statutory rate $ 156 $ 196 $ 190 Adjustments to reconcile to the income tax provision: U.S. state income tax expense 5 20 11 Federal and state credits (18 ) (15 ) (10 ) Share-based compensation — (3 ) (8 ) Tax law changes — (17 ) 11 Withholding taxes 10 6 13 Changes in foreign valuation allowance 7 (5 ) (14 ) Foreign income taxed in the U.S. 17 8 12 Rate differences between U.S. and foreign (22 ) (8 ) (8 ) Sale of subsidiary — — 16 Permanent foreign currency differences — — (30 ) Uncertain tax positions, net (20 ) (19 ) (5 ) Other (2 ) 5 (6 ) Expense for income taxes $ 133 $ 168 $ 172 |
Net Deferred Income Tax Liability | Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax liability as of fiscal years ended are as follows: 2023 2022 Deferred tax assets: Accrued liabilities and reserves $ 72 $ 75 Inventories 13 11 Net operating loss carryforward 274 235 Interest expense carryforward 121 107 Lease liability 159 134 Research and development credit carryforward 13 13 Federal and state tax credits 11 9 Capitalization research and development expenditures 39 — Other 38 48 Total deferred tax assets 740 632 Valuation allowance (114 ) (104 ) Total deferred tax assets, net of valuation allowance 626 528 Deferred tax liabilities: Property, plant and equipment 471 450 Intangible assets 437 471 Derivatives 22 94 Leased asset 155 131 Other 22 24 Total deferred tax liabilities 1,107 1,170 Net deferred tax liability $ (481 ) $ (642 ) |
Gross Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for fiscal years ended: 2023 2022 Beginning unrecognized tax benefits $ 121 $ 159 Gross increases – tax positions in prior periods 17 2 Gross decreases - tax positions in prior periods (11 ) (19 ) Gross increases – current period tax positions 12 13 Settlements — (9 ) Lapse of statute of limitations (32 ) (25 ) Ending unrecognized tax benefits $ 107 $ 121 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Plans [Abstract] | |
Change in Projected Benefit Obligations and Fair Value of Plan Assets | The net amount of liability recognized is included in Employee Benefit Obligations on the Consolidated Balance Sheets. The Company uses fiscal year end as a measurement date for the retirement plans. 2023 2022 Change in Projected Benefit Obligations (PBO) North America UK Mainland Europe Total North America UK Mainland Europe Total Beginning of period $ 252 $ 480 $ 124 $ 856 $ 338 $ 888 $ 196 $ 1,422 Service cost — — 4 4 — 1 5 6 Interest cost 12 26 5 43 8 17 2 27 Currency — 54 11 65 (1 ) (152 ) (30 ) (183 ) Actuarial loss (gain) (10 ) (26 ) (5 ) (41 ) (77 ) (244 ) (37 ) (358 ) Benefit settlements (20 ) — (1 ) (21 ) — — (5 ) (5 ) Benefits paid (16 ) (29 ) (7 ) (52 ) (16 ) (30 ) (7 ) (53 ) End of period $ 218 $ 505 $ 131 $ 854 $ 252 $ 480 $ 124 $ 856 2023 2022 Change in Fair Value of Plan Assets North America UK Mainland Europe Total North America UK Mainland Europe Total Beginning of period $ 228 $ 446 $ 40 $ 714 $ 286 $ 828 $ 53 $ 1,167 Currency — 51 2 53 (1 ) (146 ) (7 ) (154 ) Return on assets 29 (73 ) 1 (43 ) (41 ) (225 ) (2 ) (268 ) Contributions — 19 8 27 — 19 8 27 Benefit settlements (20 ) — (1 ) (21 ) — — (5 ) (5 ) Benefits paid (16 ) (29 ) (7 ) (52 ) (16 ) (30 ) (7 ) (53 ) End of period $ 221 $ 414 $ 43 $ 678 $ 228 $ 446 $ 40 $ 714 Underfunded status $ 3 $ (91 ) $ (88 ) $ (176 ) $ (24 ) $ (34 ) $ (84 ) $ (142 ) |
Weighted-Average Assumptions Used to Determine Benefit Obligation and Benefit Cost | The following table presents significant weighted-average assumptions used to determine benefit obligation and benefit cost for the fiscal years ended: (Percentages) 2023 North America UK Mainland Europe Weighted-average assumptions: Discount rate for benefit obligation 5.6 5.5 4.1 Discount rate for net benefit cost 5.1 5.2 3.7 Expected return on plan assets for net benefit costs 6.1 5.7 2.6 (Percentages) 2022 North America UK Mainland Europe Weighted-average assumptions: Discount rate for benefit obligation 5.1 5.2 3.6 Discount rate for net benefit cost 2.5 2.1 1.0 Expected return on plan assets for net benefit costs 6.1 4.2 2.1 |
Fair Value of Plan Assets | In accordance with the guidance from the FASB for employers’ disclosure about postretirement benefit plan assets the table below discloses fair values of each pension plan asset category and level within the fair value hierarchy in which it falls. There were no material changes or transfers between level 3 assets and the other levels. Fiscal 2023 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 23 $ — $ — $ 23 U.S. large cap comingled equity funds 80 — — 80 U.S. mid cap equity mutual funds 33 — — 33 U.S. small cap equity & Corporate bond mutual funds 2 — — 2 International equity mutual funds 6 33 — 39 Real estate equity investment funds — 21 105 126 Corporate bonds — 97 70 167 International fixed income funds 6 158 — 164 International insurance policies — — 44 44 Total $ 150 $ 309 $ 219 $ 678 Fiscal 2022 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 14 $ — $ — $ 14 U.S. large cap comingled equity funds 69 — — 69 U.S. mid cap equity mutual funds 35 — — 35 U.S. small cap equity & Corporate bond mutual funds 4 — — 4 International equity mutual funds 9 99 — 108 Real estate equity investment funds 4 26 94 124 Corporate bonds — 128 56 184 International fixed income funds 5 130 — 135 International insurance policies — — 41 41 Total $ 140 $ 383 $ 191 $ 714 |
Expected Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid for the fiscal year end: North America UK Mainland Europe Total 2024 $ 18 $ 29 $ 9 $ 56 2025 16 30 7 53 2026 16 31 6 53 2027 17 32 7 56 2028 17 33 8 58 2029-2033 80 179 49 308 |
Net Pension Expense | Net pension expense is recorded in Cost of goods sold 2023 2022 2021 Service cost $ 4 $ 6 $ 5 Interest cost 43 27 24 Amortization of net actuarial loss 1 3 9 Expected return on plan assets (46 ) (51 ) (51 ) Net periodic benefit expense (income) $ 2 $ (15 ) $ (13 ) |
Plan Asset Allocations | Our defined benefit pension plan asset allocations as of fiscal years ended are as follows: Asset Category 2023 2022 Equity securities and equity-like instruments 41 % 47 % Debt securities and debt-like 49 45 International insurance policies 7 6 Other 3 2 Total 100 % 100 % |
Restructuring and Transaction_2
Restructuring and Transaction Activities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Restructuring and Transaction Activities [Abstract] | |
Restructuring and Transaction Activity Charges | The table below includes the significant components of our restructuring and transaction activities recognized for the fiscal years ended, by reporting segment: 2023 2022 2021 Consumer Packaging International $ 50 $ 10 $ 56 Consumer Packaging North America 23 5 — Engineered Materials 7 2 (4 ) Health, Hygiene & Specialties 22 6 (1 ) Consolidated $ 102 $ 23 $ 51 |
Restructuring Accrual Activity | Transaction activities consist of acquisition, divestiture and other business optimization related costs. The table below sets forth the activity with respect to the restructuring charges and the impact on our accrued restructuring reserves: Restructuring (a) Employee Severance and Benefits Facility Exit Costs Non-cash Impairment Charges Transaction Activities Total Balance as of fiscal 2021 $ 6 $ 5 $ — $ — $ 11 Charges 7 9 — 7 23 Cash (11 ) (11 ) — (7 ) (29 ) Balance as of fiscal 2022 $ 2 $ 3 $ — $ — $ 5 Charges 39 23 8 32 102 Non-cash items — — (8 ) — (8 ) Cash (31 ) (25 ) — (32 ) (88 ) Balance as of fiscal 2023 $ 10 $ 1 $ — $ — $ 11 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity [Abstract] | |
Stock Option Activity | Information related to the equity incentive plans as of the fiscal years ended are as follows: 2023 2022 Number of Shares (in thousands) Weighted Average Exercise Price Number of Shares (in thousands) Weighted Average Exercise Price Options outstanding, beginning of period 11,656 $ 47.33 11,302 $ 44.54 Options granted 1,343 56.93 1,192 66.47 Options exercised (1,041 ) 35.85 (752 ) 35.31 Options forfeited or cancelled (122 ) 53.96 (86 ) 51.72 Options outstanding, end of period 11,836 $ 49.36 11,656 $ 47.33 Option price range at end of period $ 21.00-66.47 $ 16.00-66.47 Options exercisable at end of period 7,349 6,718 Weighted average fair value of options granted during period $ 17.53 $ 20.73 |
Valuation Assumptions Used for Options Granted | Generally, options vest annually in equal installments commencing from the date of grant and have a vesting term of either four or , depending on the grant date, and an expiration term of years from the date of grant. 2023 2022 2021 Risk-free interest rate 3.8 % 1.3 % 0.5 % Dividend yield 1.7 % 0.0 % 0.0 % Volatility factor 31.0 % 29.7 % 30.4 % |
Options Outstanding | The following table summarizes information about the options outstanding as of fiscal 2023: Intrinsic Value of Outstanding (in millions) Weighted Remaining Contractual Life Number Exercisable (in thousands) Intrinsic Value of Exercisable (in millions) Unrecognized Compensation (in millions) Weighted Recognition Period $ 154 5.7 years 7,349 $ 117 $ 43 1.4 years |
Restricted Stock Units Activity | 2023 2022 Number of Shares (in thousands) Weighted Average Grant Price Number of Shares (in thousands) Weighted Average Grant Price Awards outstanding, beginning of period 354 $ 61.99 196 $ 54.22 Awards granted 434 56.93 232 66.47 Awards vested (105 ) 61.46 (64 ) 54.70 Awards forfeited or cancelled (23 ) 59.75 (10 ) 60.30 Awards outstanding, end of period 660 $ 58.82 354 $ 61.99 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment and Geographic Data [Abstract] | |
Selected Information by Reportable Segment | Selected information by reportable segment is presented in the following tables: 2023 2022 2021 Net sales Consumer Packaging International $ 4,031 $ 4,293 $ 4,242 Consumer Packaging North America 3,122 3,548 3,141 Engineered Materials 2,884 3,488 3,309 Health, Hygiene & Specialties 2,627 3,166 3,158 Total $ 12,664 $ 14,495 $ 13,850 Operating income Consumer Packaging International $ 273 $ 346 $ 317 Consumer Packaging North America 346 338 276 Engineered Materials 333 328 301 Health, Hygiene & Specialties 127 230 398 Total $ 1,079 $ 1,242 $ 1,292 Depreciation and amortization Consumer Packaging International $ 310 $ 317 $ 341 Consumer Packaging North America 217 214 224 Engineered Materials 114 112 112 Health, Hygiene & Specialties 177 176 177 Total $ 818 $ 819 $ 854 2023 2022 Total assets: Consumer Packaging International $ 6,217 $ 6,993 Consumer Packaging North America 4,312 3,992 Engineered Materials 2,476 2,236 Health, Hygiene & Specialties 3,582 3,735 Total assets $ 16,587 $ 16,956 |
Selected Information by Geographical Region | Selected information by geographical region is presented in the following tables: 2023 2022 2021 Net sales: United States and Canada $ 6,893 $ 7,907 $ 7,351 Europe 4,559 5,065 4,898 Rest of world 1,212 1,523 1,601 Total net sales $ 12,664 $ 14,495 $ 13,850 2023 2022 Long-lived assets: United States and Canada $ 6,893 $ 6,826 Europe 3,800 3,616 Rest of world 1,361 1,350 Total long-lived assets $ 12,054 $ 11,792 |
Selected Information by Product Line | Selected information by product line is presented in the following tables: (in percentages) 2023 2022 2021 Net sales: Packaging 76 % 76 % 81 % Non-packaging 24 24 19 Consumer Packaging International 100 % 100 % 100 % Rigid Open Top 66 % 62 % 57 % Rigid Closed Top 34 38 43 Consumer Packaging North America 100 % 100 % 100 % Core Films 60 % 59 % 63 % Retail & Industrial 40 41 37 Engineered Materials 100 % 100 % 100 % Health 14 % 14 % 18 % Hygiene 48 51 47 Specialties 38 35 35 Health, Hygiene & Specialties 100 % 100 % 100 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations: (in millions, except per share amounts) 2023 2022 2021 Numerator Consolidated net income $ 609 $ 766 $ 733 Denominator Weighted average common shares outstanding - basic 120.1 130.6 134.6 Dilutive shares 2.9 2.2 3.7 Weighted average common and common equivalent shares outstanding - diluted 123.0 132.8 138.3 Per common share earnings Basic $ 5.07 $ 5.87 $ 5.45 Diluted $ 4.95 $ 5.77 $ 5.30 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies, Revenue Recognition and Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | ||
Accrual for customer rebates | $ 106 | $ 103 |
Allowance for credit losses | $ 19 | $ 18 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies, Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Research and Development [Abstract] | |||
Research and development expenditures | $ 82 | $ 81 | $ 90 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies, Share-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Share-Based Compensation [Abstract] | |||
Share-based compensation expense | $ 42 | $ 39 | $ 40 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies, Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Inventories [Abstract] | ||
Finished goods | $ 933 | $ 1,010 |
Raw materials | 624 | 792 |
Inventory, total | $ 1,557 | $ 1,802 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies, Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Property, plant and equipment [Abstract] | ||
Property, plant and equipment | $ 9,263 | $ 8,518 |
Less accumulated depreciation | (4,687) | (4,176) |
Property, plant and equipment, net | $ 4,576 | 4,342 |
Buildings and Improvements [Member] | Minimum [Member] | ||
Property, plant and equipment [Abstract] | ||
Useful life | 15 years | |
Buildings and Improvements [Member] | Maximum [Member] | ||
Property, plant and equipment [Abstract] | ||
Useful life | 40 years | |
Machinery, Equipment, and Tooling [Member] | Minimum [Member] | ||
Property, plant and equipment [Abstract] | ||
Useful life | 2 years | |
Machinery, Equipment, and Tooling [Member] | Maximum [Member] | ||
Property, plant and equipment [Abstract] | ||
Useful life | 20 years | |
Land, Buildings and Improvements [Member] | ||
Property, plant and equipment [Abstract] | ||
Property, plant and equipment | $ 1,693 | 1,602 |
Equipment and Construction in Progress [Member] | ||
Property, plant and equipment [Abstract] | ||
Property, plant and equipment | $ 7,570 | $ 6,916 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies, Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 4,832 | $ 5,192 |
Foreign currency translation adjustment | 111 | (306) |
Dispositions | (54) | |
Pro-Western acquisition (See Note 2.) | 38 | |
Goodwill, ending balance | 4,981 | 4,832 |
Impairment charges | 0 | 0 |
Consumer Packaging International [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,712 | 2,016 |
Foreign currency translation adjustment | 81 | (250) |
Dispositions | (54) | |
Pro-Western acquisition (See Note 2.) | 0 | |
Goodwill, ending balance | 1,793 | 1,712 |
Consumer Packaging North America [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,540 | 1,541 |
Foreign currency translation adjustment | 1 | (1) |
Dispositions | 0 | |
Pro-Western acquisition (See Note 2.) | 38 | |
Goodwill, ending balance | 1,579 | 1,540 |
Engineered Materials [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 662 | 699 |
Foreign currency translation adjustment | 17 | (37) |
Dispositions | 0 | |
Pro-Western acquisition (See Note 2.) | 0 | |
Goodwill, ending balance | 679 | 662 |
Health, Hygiene & Specialties [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 918 | 936 |
Foreign currency translation adjustment | 12 | (18) |
Dispositions | 0 | |
Pro-Western acquisition (See Note 2.) | 0 | |
Goodwill, ending balance | $ 930 | $ 918 |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies, Deferred Financing Fees (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Deferred Financing Fees [Abstract] | ||
Debt issuance and deferred financing costs | $ 34 | $ 60 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies, Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Intangible Assets [Abstract] | |||
Additions | $ 6 | ||
Pro-Western acquisition (See Note 2.) | $ 38 | ||
Accumulated Amortization [Abstract] | |||
Accumulated amortization, beginning balance | (1,925) | (1,734) | |
Foreign currency translation adjustment | (27) | 66 | |
Amortization expense | (243) | (257) | $ (288) |
Accumulated amortization, ending balance | (2,195) | (1,925) | (1,734) |
Intangible Assets, Net [Abstract] | |||
Intangible assets, net, beginning balance | 1,853 | 2,242 | |
Foreign currency translation adjustment | 55 | (138) | |
Additions | 6 | ||
Pro-Western acquisition (See Note 2.) | 38 | ||
Intangible assets, net, ending balance | 1,703 | 1,853 | 2,242 |
Intangible Assets [Abstract] | |||
Impairment of indefinite-lived trade names | 0 | 0 | 0 |
Future Amortization Expense for Definite Lived Intangibles [Abstract] | |||
2024 | 232 | ||
2025 | 219 | ||
2026 | 204 | ||
2027 | 171 | ||
2028 | 147 | ||
Customer Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Intangible assets, beginning balance | 3,157 | 3,329 | |
Foreign currency translation adjustment | 69 | (172) | |
Additions | 0 | ||
Pro-Western acquisition (See Note 2.) | 35 | ||
Intangible assets, ending balance | 3,261 | 3,157 | 3,329 |
Intangible Assets, Net [Abstract] | |||
Additions | 0 | ||
Pro-Western acquisition (See Note 2.) | $ 35 | ||
Customer Relationships [Member] | Minimum [Member] | |||
Intangible Assets [Abstract] | |||
Useful life | 5 years | ||
Customer Relationships [Member] | Maximum [Member] | |||
Intangible Assets [Abstract] | |||
Useful life | 17 years | ||
Trademarks [Member] | |||
Intangible Assets [Abstract] | |||
Intangible assets, beginning balance | $ 494 | 525 | |
Foreign currency translation adjustment | 12 | (31) | |
Additions | 0 | ||
Pro-Western acquisition (See Note 2.) | 3 | ||
Intangible assets, ending balance | 509 | 494 | 525 |
Intangible Assets, Net [Abstract] | |||
Additions | 0 | ||
Pro-Western acquisition (See Note 2.) | 3 | ||
Intangible Assets [Abstract] | |||
Indefinite lived intangible assets | $ 248 | ||
Trademarks [Member] | Maximum [Member] | |||
Intangible Assets [Abstract] | |||
Useful life | 15 years | ||
Other Intangibles [Member] | |||
Intangible Assets [Abstract] | |||
Intangible assets, beginning balance | $ 127 | 122 | |
Foreign currency translation adjustment | 1 | (1) | |
Additions | 6 | ||
Pro-Western acquisition (See Note 2.) | 0 | ||
Intangible assets, ending balance | 128 | 127 | $ 122 |
Intangible Assets, Net [Abstract] | |||
Additions | $ 6 | ||
Pro-Western acquisition (See Note 2.) | $ 0 | ||
Other Intangibles [Member] | Minimum [Member] | |||
Intangible Assets [Abstract] | |||
Useful life | 5 years | ||
Other Intangibles [Member] | Maximum [Member] | |||
Intangible Assets [Abstract] | |||
Useful life | 14 years |
Basis of Presentation and Su_12
Basis of Presentation and Summary of Significant Accounting Policies, Leases (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Annual Lease Commitments for Operating Leases [Abstract] | |
2024 | $ 117 |
2025 | 106 |
2026 | 95 |
2027 | 83 |
2028 | 70 |
Thereafter | 311 |
Total lease payments | 782 |
Less: Interest | (141) |
Present value of lease liabilities | 641 |
Annual Lease Commitments for Finance Leases [Abstract] | |
2024 | 10 |
2025 | 7 |
2026 | 9 |
2027 | 1 |
2028 | 1 |
Thereafter | 3 |
Total lease payments | 31 |
Less: Interest | (3) |
Present value of lease liabilities | $ 28 |
Basis of Presentation and Su_13
Basis of Presentation and Summary of Significant Accounting Policies, Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 3,196 | ||
Other comprehensive income (loss) | 101 | $ (111) | $ 189 |
Net amount reclassified from accumulated other comprehensive income (loss) | (34) | 4 | 66 |
Ending balance | 3,216 | 3,196 | |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (403) | (296) | (551) |
Ending balance | (336) | (403) | (296) |
Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (455) | (154) | (278) |
Other comprehensive income (loss) | 115 | (301) | 124 |
Net amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Ending balance | (340) | (455) | (154) |
Defined Benefit Pension and Retiree Health Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (32) | (67) | (116) |
Other comprehensive income (loss) | (53) | 32 | (5) |
Net amount reclassified from accumulated other comprehensive income (loss) | 1 | 3 | 54 |
Ending balance | (84) | (32) | (67) |
Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 84 | (75) | (157) |
Other comprehensive income (loss) | 39 | 158 | 70 |
Net amount reclassified from accumulated other comprehensive income (loss) | (35) | 1 | 12 |
Ending balance | $ 88 | $ 84 | $ (75) |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Acquisition [Abstract] | |||
Purchase price | $ 87 | $ 0 | $ 0 |
Pro-Western Plastics [Member] | |||
Acquisition [Abstract] | |||
Purchase price | $ 87 |
Long-Term Debt, Summary of Long
Long-Term Debt, Summary of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2023 | Oct. 31, 2023 | Oct. 01, 2022 | |||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 9,014 | ||||
Debt discounts and deferred fees | (34) | $ (60) | |||
Total long-term debt | 8,980 | 9,255 | |||
Current portion of long-term debt | (10) | (13) | |||
Long-term debt, less current portion | 8,970 | 9,242 | |||
Subsequent Event [Member] | |||||
Long-term Debt [Abstract] | |||||
Term Loans that had maturity date extended to July 2029 | $ 1,550 | ||||
Term Loan [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 3,090 | [1] | 3,440 | ||
Maturity date | [2] | Jul. 31, 2026 | |||
Percentage of loan hedged with interest rate swaps to fix interest rate | 88% | ||||
Revolving Line of Credit [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 0 | 0 | |||
Maturity date | Jun. 30, 2028 | ||||
0.95% First Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 279 | [3] | 800 | ||
Interest rate | 0.95% | ||||
Maturity date | Feb. 28, 2024 | ||||
1.00% First Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | [4] | $ 741 | 686 | ||
Interest rate | 1% | ||||
Maturity date | Jul. 31, 2025 | ||||
1.57% First Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 1,525 | 1,525 | |||
Interest rate | 1.57% | ||||
Maturity date | Jan. 31, 2026 | ||||
4.875% First Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 1,250 | 1,250 | |||
Interest rate | 4.875% | ||||
Maturity date | Jul. 31, 2026 | ||||
1.65% First Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 400 | 400 | |||
Interest rate | 1.65% | ||||
Maturity date | Jan. 31, 2027 | ||||
1.50% First Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | [4] | $ 397 | 367 | ||
Interest rate | 1.50% | ||||
Maturity date | Jul. 31, 2027 | ||||
5.50% First Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 500 | 0 | |||
Interest rate | 5.50% | ||||
Maturity date | Apr. 30, 2028 | ||||
Face amount of debt issued | $ 500 | ||||
4.50% Second Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 291 | 298 | |||
Interest rate | 4.50% | ||||
Maturity date | Feb. 28, 2026 | ||||
5.625% Second Priority Senior Secured Notes [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 500 | 500 | |||
Interest rate | 5.625% | ||||
Maturity date | Jul. 31, 2027 | ||||
Finance Leases and Other [Member] | |||||
Long-term Debt [Abstract] | |||||
Long-term debt | $ 41 | $ 49 | |||
[1]Effectively 88% fixed interest rate with interest rate swaps (see Note 4).[2] In October 2023, the Company extended the maturity date of $1,550 million of the Term Loans to 2029. |
Long-Term Debt, Berry Global, I
Long-Term Debt, Berry Global, Inc. Senior Secured Credit Facility (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Term Loans [Member] | |
Long-Term Debt [Abstract] | |
Face amount of debt issued | $ 3,100 |
Revolving Line of Credit [Member] | |
Long-Term Debt [Abstract] | |
Maximum borrowing capacity | 1,000 |
Unused borrowing capacity | $ 760 |
Long-Term Debt, Future Maturiti
Long-Term Debt, Future Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Future Maturities of Long-Term Debt [Abstract] | |||
2024 | $ 289 | ||
2025 | 749 | ||
2026 | 6,167 | ||
2027 | 1,299 | ||
2028 | 503 | ||
Thereafter | 7 | ||
Total | 9,014 | ||
Net cash interest | $ 377 | $ 281 | $ 311 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements, Cross-Currency Swaps (Details) - Sep. 30, 2023 € in Millions, £ in Millions, $ in Millions | USD ($) | EUR (€) | GBP (£) |
Cross-Currency Swaps [Abstract] | |||
Long-term debt | $ | $ 9,014 | ||
Euro Denominated [Member] | |||
Cross-Currency Swaps [Abstract] | |||
Long-term debt | € 379 | ||
Cross-Currency Swap Maturing June 2024 [Member] | |||
Cross-Currency Swaps [Abstract] | |||
Notional amount of swap | € 1,625 | ||
Cross-Currency Swap Maturing July 2027 [Member] | |||
Cross-Currency Swaps [Abstract] | |||
Notional amount of swap | £ | £ 700 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements, Interest Rate Swaps (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Interest Rate Swaps [Abstract] | |
Purpose of interest rate swap activities | The primary purpose of the Company’s interest rate swap activities is to manage interest expense fluctuations associated with our outstanding variable rate term loan debt. |
Interest Rate Swaps [Member] | |
Interest Rate Swaps [Abstract] | |
Settlement of derivatives | $ 36 |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 450 |
Fixed annual rate of swap | 4.043% |
Interest Rate Swap Expiring June 2026 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 400 |
Fixed annual rate of swap | 4.451% |
Interest Rate Swap Expiring June 2026 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 884 |
Fixed annual rate of swap | 4.451% |
Interest Rate Swap Expiring June 2026 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 473 |
Fixed annual rate of swap | 3.869% |
Interest Rate Swap Expiring June 2026 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Interest Rate Swap Expiring June 2026 [Member] | |
Interest Rate Swaps [Abstract] | |
Notional amount of swap | $ 500 |
Fixed annual rate of swap | 3.602% |
Interest Rate Swap Expiring June 2026 [Member] | SOFR [Member] | |
Interest Rate Swaps [Abstract] | |
Term of variable rate | 1 month |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements, Fair Value of Derivatives and Location on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 0 | $ 147 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Current Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 66 | 0 |
Cross-Currency Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 19 | 0 |
Interest Rate Swaps [Member] | Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 36 | 11 |
Interest Rate Swaps [Member] | Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 0 | 3 |
Interest Rate Swaps [Member] | Not Designated [Member] | Other Assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | 8 | 0 |
Interest Rate Swaps [Member] | Not Designated [Member] | Other Long-Term Liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of derivative instruments | $ 104 | $ 117 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements, Effect of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Derivative Instruments [Abstract] | |||
Amortization related to unrealized losses in Accumulated other comprehensive loss for next 12 months | $ (36) | ||
Fair value of long-term indebtedness less than book value | (381) | $ (561) | |
Cross-Currency Swaps [Member] | |||
Derivative Instruments [Abstract] | |||
Loss (gain) on derivative instruments | $ (41) | $ (21) | $ (8) |
Cross-Currency Swaps [Member] | Designated [Member] | |||
Derivative Instruments [Abstract] | |||
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
Interest Rate Swaps [Member] | |||
Derivative Instruments [Abstract] | |||
Loss (gain) on derivative instruments | $ (59) | $ 40 | $ 69 |
Loss (Gain) on Derivative Instruments, Statement of Income [Extensible Enumeration] | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net | Interest Income (Expense), Nonoperating, Net |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements, Assets Measured at Fair Value on Non-Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Impairment [Abstract] | |||
Indefinite-lived trademarks | $ 0 | $ 0 | $ 0 |
Goodwill | 0 | 0 | |
Definite lived intangible assets | 0 | 0 | |
Property, plant, and equipment | 8 | 0 | |
Impairment charges | $ 8 | 0 | |
Impairment Charges, Statement of Income [Extensible Enumeration] | Restructuring and transaction activities | ||
Fair Value on Non-Recurring Basis [Member] | |||
Fair Value of Assets [Abstract] | |||
Indefinite-lived trademarks | $ 248 | 247 | |
Goodwill | 4,981 | 4,832 | |
Definite lived intangible assets | 1,455 | 1,606 | |
Property, plant, and equipment | 4,576 | 4,342 | |
Total | 11,260 | 11,027 | |
Fair Value on Non-Recurring Basis [Member] | Level 1 [Member] | |||
Fair Value of Assets [Abstract] | |||
Indefinite-lived trademarks | 0 | 0 | |
Goodwill | 0 | 0 | |
Definite lived intangible assets | 0 | 0 | |
Property, plant, and equipment | 0 | 0 | |
Total | 0 | 0 | |
Fair Value on Non-Recurring Basis [Member] | Level 2 [Member] | |||
Fair Value of Assets [Abstract] | |||
Indefinite-lived trademarks | 0 | 0 | |
Goodwill | 0 | 0 | |
Definite lived intangible assets | 0 | 0 | |
Property, plant, and equipment | 0 | 0 | |
Total | 0 | 0 | |
Fair Value on Non-Recurring Basis [Member] | Level 3 [Member] | |||
Fair Value of Assets [Abstract] | |||
Indefinite-lived trademarks | 248 | 247 | |
Goodwill | 4,981 | 4,832 | |
Definite lived intangible assets | 1,455 | 1,606 | |
Property, plant, and equipment | 4,576 | 4,342 | |
Total | $ 11,260 | $ 11,027 |
Commitments, Leases and Conti_3
Commitments, Leases and Contingencies, Collective Bargaining Agreements (Details) | 12 Months Ended |
Sep. 30, 2023 Employee | |
Contingencies and Commitments [Abstract] | |
Number of employees | 44,000 |
Percentage of employees covered by collective bargaining agreements | 20% |
Commitments, Leases and Conti_4
Commitments, Leases and Contingencies, Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Operating Leases [Abstract] | ||
Operating lease right-of-use assets | $ 625 | $ 521 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease right-of-use assets | Operating lease right-of-use assets |
Current operating lease liabilities | $ 116 | $ 108 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 525 | $ 429 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Noncurrent operating lease liabilities | Noncurrent operating lease liabilities |
Finance Leases [Abstract] | ||
Finance lease right-of-use assets | $ 32 | $ 38 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment | Property, plant and equipment |
Current finance lease liability | $ 9 | $ 9 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Noncurrent finance lease liabilities | $ 19 | $ 24 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Lease Cash Flow and Lease Expense [Abstract] | ||
Operating leases, lease cost | $ 141 | $ 132 |
Finance leases, interest expense | 1 | 2 |
Finance leases, financing cash flows | 5 | 19 |
Finance leases, amortization of right-of-use assets | $ 9 | $ 9 |
Remaining Lease Terms and Discount Rates [Abstract] | ||
Weighted-average remaining lease term - operating leases | 9 years | 7 years |
Weighted-average remaining lease term - finance leases | 2 years | 3 years |
Weighted-average discount rate - operating leases | 5% | 4.50% |
Weighted-average discount rate - finance leases | 4.50% | 4.50% |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 109 |
Income Taxes, Components of Inc
Income Taxes, Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Current [Abstract] | |||
U.S. Federal | $ 118 | $ 87 | $ 56 |
U.S. State | 25 | 20 | 14 |
Non-U.S. | 107 | 109 | 175 |
Total current | 250 | 216 | 245 |
Deferred [Abstract] | |||
U.S. Federal | (26) | 4 | 17 |
U.S. State | (26) | (7) | (6) |
Non-U.S. | (65) | (45) | (84) |
Total deferred | (117) | (48) | (73) |
Expense for income taxes | 133 | 168 | 172 |
U.S. income from continuing operations before income taxes | 375 | 449 | 276 |
Non-U.S. income from continuing operations before income taxes | 367 | 485 | 629 |
Income taxes paid | $ 240 | $ 186 | $ 200 |
Income Taxes, Effective Income
Income Taxes, Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Income Taxes [Abstract] | |||
U.S. Federal income tax expense at the statutory rate | $ 156 | $ 196 | $ 190 |
Adjustments to Reconcile to the Income Tax Provision [Abstract] | |||
U.S. state income tax expense | 5 | 20 | 11 |
Federal and state credits | (18) | (15) | (10) |
Share-based compensation | 0 | (3) | (8) |
Tax law changes | 0 | (17) | 11 |
Withholding taxes | 10 | 6 | 13 |
Changes in foreign valuation allowance | 7 | (5) | (14) |
Foreign income taxed in the U.S. | 17 | 8 | 12 |
Rate differences between U.S. and foreign | (22) | (8) | (8) |
Sale of subsidiary | 0 | 0 | 16 |
Permanent foreign currency differences | 0 | 0 | (30) |
Uncertain tax positions, net | (20) | (19) | (5) |
Other | (2) | 5 | (6) |
Expense for income taxes | $ 133 | $ 168 | $ 172 |
Income Taxes, Net Deferred Inco
Income Taxes, Net Deferred Income Tax Liability (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Deferred Tax Assets [Abstract] | ||
Accrued liabilities and reserves | $ 72 | $ 75 |
Inventories | 13 | 11 |
Net operating loss carryforward | 274 | 235 |
Interest expense carryforward | 121 | 107 |
Lease liability | 159 | 134 |
Research and development credit carryforward | 13 | 13 |
Federal and state tax credits | 11 | 9 |
Capitalization research and development expenditures | 39 | 0 |
Other | 38 | 48 |
Total deferred tax assets | 740 | 632 |
Valuation allowance | (114) | (104) |
Total deferred tax assets, net of valuation allowance | 626 | 528 |
Deferred Tax Liabilities [Abstract] | ||
Property, plant and equipment | 471 | 450 |
Intangible assets | 437 | 471 |
Derivatives | 22 | 94 |
Leased asset | 155 | 131 |
Other | 22 | 24 |
Total deferred tax liabilities | 1,107 | 1,170 |
Net deferred tax liability | (481) | (642) |
Net deferred tax liabilities | 573 | $ 707 |
Other Assets [Member] | ||
Deferred Tax Liabilities [Abstract] | ||
Net deferred tax assets | $ 92 |
Income Taxes, Uncertain Tax Pos
Income Taxes, Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Gross Unrecognized Tax Benefits [Roll Forward] | ||
Beginning unrecognized tax benefits | $ 121 | $ 159 |
Gross increases - tax positions in prior periods | 17 | 2 |
Gross decreases - tax positions in prior periods | (11) | (19) |
Gross increases - current period tax positions | 12 | 13 |
Settlements | 0 | (9) |
Lapse of statue of limitations | (32) | (25) |
Ending unrecognized tax benefits | 107 | $ 121 |
Unrecognized tax benefits that would affect effective tax rate if recognized | 105 | |
Interest and penalties accrued for uncertain tax positions | $ 33 |
Retirement Plans, Change in Pro
Retirement Plans, Change in Projected Benefit Obligations and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Defined Contribution 401 (k) Retirement Plan [Abstract] | |||
Defined contribution plan expense | $ 40 | $ 42 | $ 45 |
Change in Projected Benefit Obligations (PBO) [Roll Forward] | |||
Service cost | 4 | 6 | 5 |
Interest cost | 43 | 27 | 24 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of period | 714 | ||
Plan assets at end of period | 678 | 714 | |
Net unrealized losses in accumulated other comprehensive loss | (112) | ||
Amount expected to be amortized from accumulated other comprehensive loss in fiscal 2023 | 1 | ||
Defined Benefit Pension Plans [Member] | |||
Change in Projected Benefit Obligations (PBO) [Roll Forward] | |||
PBO at beginning of period | 856 | 1,422 | |
Service cost | 4 | 6 | |
Interest cost | 43 | 27 | |
Currency | 65 | (183) | |
Actuarial loss (gain) | (41) | (358) | |
Benefit settlements | (21) | (5) | |
Benefits paid | (52) | (53) | |
PBO at end of period | 854 | 856 | 1,422 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of period | 714 | 1,167 | |
Currency | 53 | (154) | |
Return on assets | (43) | (268) | |
Contributions | 27 | 27 | |
Benefit settlements | (21) | (5) | |
Benefits paid | (52) | (53) | |
Plan assets at end of period | 678 | 714 | 1,167 |
Underfunded status | (176) | (142) | |
Defined Benefit Pension Plans [Member] | North America [Member] | |||
Change in Projected Benefit Obligations (PBO) [Roll Forward] | |||
PBO at beginning of period | 252 | 338 | |
Service cost | 0 | 0 | |
Interest cost | 12 | 8 | |
Currency | 0 | (1) | |
Actuarial loss (gain) | (10) | (77) | |
Benefit settlements | (20) | 0 | |
Benefits paid | (16) | (16) | |
PBO at end of period | 218 | 252 | 338 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of period | 228 | 286 | |
Currency | 0 | (1) | |
Return on assets | 29 | (41) | |
Contributions | 0 | 0 | |
Benefit settlements | (20) | 0 | |
Benefits paid | (16) | (16) | |
Plan assets at end of period | 221 | 228 | 286 |
Underfunded status | 3 | (24) | |
Defined Benefit Pension Plans [Member] | UK [Member] | |||
Change in Projected Benefit Obligations (PBO) [Roll Forward] | |||
PBO at beginning of period | 480 | 888 | |
Service cost | 0 | 1 | |
Interest cost | 26 | 17 | |
Currency | 54 | (152) | |
Actuarial loss (gain) | (26) | (244) | |
Benefit settlements | 0 | 0 | |
Benefits paid | (29) | (30) | |
PBO at end of period | 505 | 480 | 888 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of period | 446 | 828 | |
Currency | 51 | (146) | |
Return on assets | (73) | (225) | |
Contributions | 19 | 19 | |
Benefit settlements | 0 | 0 | |
Benefits paid | (29) | (30) | |
Plan assets at end of period | 414 | 446 | 828 |
Underfunded status | (91) | (34) | |
Defined Benefit Pension Plans [Member] | Mainland Europe [Member] | |||
Change in Projected Benefit Obligations (PBO) [Roll Forward] | |||
PBO at beginning of period | 124 | 196 | |
Service cost | 4 | 5 | |
Interest cost | 5 | 2 | |
Currency | 11 | (30) | |
Actuarial loss (gain) | (5) | (37) | |
Benefit settlements | (1) | (5) | |
Benefits paid | (7) | (7) | |
PBO at end of period | 131 | 124 | 196 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Plan assets at beginning of period | 40 | 53 | |
Currency | 2 | (7) | |
Return on assets | 1 | (2) | |
Contributions | 8 | 8 | |
Benefit settlements | (1) | (5) | |
Benefits paid | (7) | (7) | |
Plan assets at end of period | 43 | 40 | $ 53 |
Underfunded status | (88) | $ (84) | |
Defined Benefit Pension Plans [Member] | Germany [Member] | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Underfunded status | $ (63) |
Retirement Plans, Weighted Aver
Retirement Plans, Weighted Average Assumptions Used to Determine Benefit Obligation and Benefit Cost (Details) - Defined Benefit Pension Plans [Member] | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
North America [Member] | ||
Weighted-Average Assumptions [Abstract] | ||
Discount rate for benefit obligation | 5.60% | 5.10% |
Discount rate for net benefit cost | 5.10% | 2.50% |
Expected return on plan assets for net benefit costs | 6.10% | 6.10% |
UK [Member] | ||
Weighted-Average Assumptions [Abstract] | ||
Discount rate for benefit obligation | 5.50% | 5.20% |
Discount rate for net benefit cost | 5.20% | 2.10% |
Expected return on plan assets for net benefit costs | 5.70% | 4.20% |
Mainland Europe [Member] | ||
Weighted-Average Assumptions [Abstract] | ||
Discount rate for benefit obligation | 4.10% | 3.60% |
Discount rate for net benefit cost | 3.70% | 1% |
Expected return on plan assets for net benefit costs | 2.60% | 2.10% |
Retirement Plans, Fair Value of
Retirement Plans, Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Retirement Plans [Abstract] | ||
Fair value of plan assets | $ 678 | $ 714 |
Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 150 | 140 |
Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 309 | 383 |
Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 219 | 191 |
Cash and Cash Equivalents [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 23 | 14 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 23 | 14 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
U.S. Large Cap Comingled Equity Funds [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 80 | 69 |
U.S. Large Cap Comingled Equity Funds [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 80 | 69 |
U.S. Large Cap Comingled Equity Funds [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
U.S. Large Cap Comingled Equity Funds [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
U.S. Mid Cap Equity Mutual Funds [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 33 | 35 |
U.S. Mid Cap Equity Mutual Funds [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 33 | 35 |
U.S. Mid Cap Equity Mutual Funds [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
U.S. Mid Cap Equity Mutual Funds [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
U.S. Small Cap Equity & Corporate Bond Mutual Funds [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 2 | 4 |
U.S. Small Cap Equity & Corporate Bond Mutual Funds [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 2 | 4 |
U.S. Small Cap Equity & Corporate Bond Mutual Funds [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
U.S. Small Cap Equity & Corporate Bond Mutual Funds [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
International Equity Mutual Funds [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 39 | 108 |
International Equity Mutual Funds [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 6 | 9 |
International Equity Mutual Funds [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 33 | 99 |
International Equity Mutual Funds [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Real Estate Equity Investment Funds [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 126 | 124 |
Real Estate Equity Investment Funds [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 4 |
Real Estate Equity Investment Funds [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 21 | 26 |
Real Estate Equity Investment Funds [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 105 | 94 |
Corporate Bonds [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 167 | 184 |
Corporate Bonds [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Corporate Bonds [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 97 | 128 |
Corporate Bonds [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 70 | 56 |
International Fixed Income Funds [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 164 | 135 |
International Fixed Income Funds [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 6 | 5 |
International Fixed Income Funds [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 158 | 130 |
International Fixed Income Funds [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
International Insurance Policies [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 44 | 41 |
International Insurance Policies [Member] | Level 1 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
International Insurance Policies [Member] | Level 2 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | 0 | 0 |
International Insurance Policies [Member] | Level 3 [Member] | ||
Retirement Plans [Abstract] | ||
Fair value of plan assets | $ 44 | $ 41 |
Retirement Plans, Expected Futu
Retirement Plans, Expected Future Benefit Payments (Details) - Defined Benefit Pension Plans [Member] $ in Millions | Sep. 30, 2023 USD ($) |
Expected Future Benefit Payments [Abstract] | |
2024 | $ 56 |
2025 | 53 |
2026 | 53 |
2027 | 56 |
2028 | 58 |
2029-2033 | 308 |
North America [Member] | |
Expected Future Benefit Payments [Abstract] | |
2024 | 18 |
2025 | 16 |
2026 | 16 |
2027 | 17 |
2028 | 17 |
2029-2033 | 80 |
UK [Member] | |
Expected Future Benefit Payments [Abstract] | |
2024 | 29 |
2025 | 30 |
2026 | 31 |
2027 | 32 |
2028 | 33 |
2029-2033 | 179 |
Mainland Europe [Member] | |
Expected Future Benefit Payments [Abstract] | |
2024 | 9 |
2025 | 7 |
2026 | 6 |
2027 | 7 |
2028 | 8 |
2029-2033 | $ 49 |
Retirement Plans, Net Pension E
Retirement Plans, Net Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Retirement Plans [Abstract] | |||
Service cost | $ 4 | $ 6 | $ 5 |
Interest cost | 43 | 27 | 24 |
Amortization of net actuarial loss | 1 | 3 | 9 |
Expected return on plan assets | (46) | (51) | (51) |
Net periodic benefit expense (income) | $ 2 | $ (15) | $ (13) |
Defined Benefit Plan, Net Periodic Benefit Expense (Income), Statement of Income [Extensible Enumeration] | Cost of goods sold | Cost of goods sold | Cost of goods sold |
Retirement Plans, Plan Asset Al
Retirement Plans, Plan Asset Allocations (Details) - Defined Benefit Pension Plans [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Oct. 01, 2022 |
Retirement Plans [Abstract] | ||
Actual plan asset allocation | 100% | 100% |
Equity Securities and Equity-Like Instruments [Member] | ||
Retirement Plans [Abstract] | ||
Actual plan asset allocation | 41% | 47% |
Company Common Stock [Member] | ||
Retirement Plans [Abstract] | ||
Company stock held in plan assets | $ 31 | |
Debt Securities and Debt-Like [Member] | ||
Retirement Plans [Abstract] | ||
Actual plan asset allocation | 49% | 45% |
International Insurance Policies [Member] | ||
Retirement Plans [Abstract] | ||
Actual plan asset allocation | 7% | 6% |
Other [Member] | ||
Retirement Plans [Abstract] | ||
Actual plan asset allocation | 3% | 2% |
Restructuring and Transaction_3
Restructuring and Transaction Activities, Restructuring Charges by Segment (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Segment | Oct. 01, 2022 USD ($) Facility | Oct. 02, 2021 USD ($) Facility | |
Restructuring Charges [Abstract] | |||
Number of reporting segments | Segment | 4 | ||
Estimated cost of plant rationalizations | $ 200 | ||
Number of facilities shut down | Facility | 0 | 0 | |
Restructuring and transaction activities | 102 | $ 23 | $ 51 |
Consumer Packaging International [Member] | |||
Restructuring Charges [Abstract] | |||
Restructuring and transaction activities | 50 | 10 | 56 |
Consumer Packaging North America [Member] | |||
Restructuring Charges [Abstract] | |||
Restructuring and transaction activities | 23 | 5 | 0 |
Engineered Materials [Member] | |||
Restructuring Charges [Abstract] | |||
Restructuring and transaction activities | 7 | 2 | (4) |
Health, Hygiene & Specialties [Member] | |||
Restructuring Charges [Abstract] | |||
Restructuring and transaction activities | $ 22 | $ 6 | $ (1) |
Restructuring and Transaction_4
Restructuring and Transaction Activities, Restructuring Accrual Activity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Restructuring Accrual [Roll Forward] | ||
Beginning balance | $ 5 | $ 11 |
Charges | 102 | 23 |
Non-cash items | (8) | 0 |
Cash | (88) | (29) |
Ending balance | 11 | 5 |
Cumulative costs since 2021 | 105 | |
Employee Severance and Benefits [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 2 | 6 |
Charges | 39 | 7 |
Non-cash items | 0 | |
Cash | (31) | (11) |
Ending balance | 10 | 2 |
Facility Exit Costs [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 3 | 5 |
Charges | 23 | 9 |
Non-cash items | 0 | |
Cash | (25) | (11) |
Ending balance | 1 | 3 |
Non-Cash Impairment Charges [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 0 | 0 |
Charges | 8 | 0 |
Non-cash items | (8) | |
Cash | 0 | 0 |
Ending balance | 0 | 0 |
Transaction Activities [Member] | ||
Restructuring Accrual [Roll Forward] | ||
Beginning balance | 0 | 0 |
Charges | 32 | 7 |
Non-cash items | 0 | |
Cash | (32) | (7) |
Ending balance | $ 0 | $ 0 |
Stockholders' Equity, Share Rep
Stockholders' Equity, Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Stockholders' Equity [Abstract] | |||
Number of shares repurchased (in shares) | 9,800,000 | 12,200,000 | 0 |
Shares repurchased and retired | $ 601 | $ 709 | |
Average price of shares repurchased (in dollars per share) | $ 61 | $ 58.3 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Remaining amount of share repurchase program | $ 442 |
Stockholders' Equity, Equity In
Stockholders' Equity, Equity Incentive Plans (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Oct. 02, 2021 | |
Stockholders' Equity [Abstract] | ||
Intrinsic value of options exercised | $ 27 | |
2015 Plan [Member] | ||
Stockholders' Equity [Abstract] | ||
Shares authorized for grant (in shares) | 20.8 | |
Increase in shares authorized for grant (in shares) | 8.3 |
Stockholders' Equity, Stock Opt
Stockholders' Equity, Stock Option Activity (Details) - Stock Options [Member] - 2015 Plan [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Number of Shares [Roll Forward] | ||
Options outstanding, beginning of period (in shares) | 11,656 | 11,302 |
Options granted (in shares) | 1,343 | 1,192 |
Options exercised (in shares) | (1,041) | (752) |
Options forfeited or cancelled (in shares) | (122) | (86) |
Options outstanding, end of period (in shares) | 11,836 | 11,656 |
Weighted Average Exercise Price [Roll Forward] | ||
Options outstanding, beginning of period (in dollars per share) | $ 47.33 | $ 44.54 |
Options granted (in dollars per share) | 56.93 | 66.47 |
Options exercised (in dollars per share) | 35.85 | 35.31 |
Options forfeited or cancelled (in dollars per share) | 53.96 | 51.72 |
Options outstanding, end of period (in dollars per share) | 49.36 | 47.33 |
Additional Information [Abstract] | ||
Option price range at end of period, lower limit (in dollars per share) | 21 | 16 |
Option price range at end of period, upper limit (in dollars per share) | $ 66.47 | $ 66.47 |
Options exercisable at end of period (in shares) | 7,349 | 6,718 |
Weighted average fair value of options granted during period (in dollars per share) | $ 17.53 | $ 20.73 |
Stockholders' Equity, Valuation
Stockholders' Equity, Valuation Assumptions used for Options Granted (Details) - Stock Options [Member] - 2015 Plan [Member] | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Equity Incentive Plans [Abstract] | |||
Period after date of grant before vesting commences | 1 year | ||
Expiration term | 10 years | ||
Weighted Average Assumptions [Abstract] | |||
Risk-free interest rate | 3.80% | 1.30% | 0.50% |
Dividend yield | 1.70% | 0% | 0% |
Volatility factor | 31% | 29.70% | 30.40% |
Minimum [Member] | |||
Equity Incentive Plans [Abstract] | |||
Vesting period | 4 years | ||
Maximum [Member] | |||
Equity Incentive Plans [Abstract] | |||
Vesting period | 5 years |
Stockholders' Equity, Options O
Stockholders' Equity, Options Outstanding (Details) - Stock Options [Member] - 2015 Plan [Member] - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Options Outstanding [Abstract] | ||
Intrinsic value of outstanding | $ 154 | |
Weighted remaining contractual life | 5 years 8 months 12 days | |
Number exercisable (in shares) | 7,349 | 6,718 |
Intrinsic value of exercisable | $ 117 | |
Unrecognized compensation | $ 43 | |
Weighted recognition period | 1 year 4 months 24 days |
Stockholders' Equity, Restricte
Stockholders' Equity, Restricted Stock Units Activity (Details) - 2015 Plan [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Equity Incentive Plans [Abstract] | ||
Shares available for grant at end of year (in shares) | 5,000 | 7,100 |
Restricted Stock Units [Member] | ||
Equity Incentive Plans [Abstract] | ||
Vesting period | 4 years | |
Number of Shares [Roll Forward] | ||
Awards outstanding, beginning of period (in shares) | 354 | 196 |
Awards granted (in shares) | 434 | 232 |
Awards vested (in shares) | (105) | (64) |
Awards forfeited or cancelled (in shares) | (23) | (10) |
Awards outstanding, end of period (in shares) | 660 | 354 |
Weighted Average Grant Price [Abstract] | ||
Awards outstanding, beginning of period (in dollars per share) | $ 61.99 | $ 54.22 |
Awards granted (in dollars per share) | 56.93 | 66.47 |
Awards vested (in dollars per share) | 61.46 | 54.7 |
Awards forfeited or cancelled (in dollars per share) | 59.75 | 60.3 |
Awards outstanding, end of period (in dollars per share) | $ 58.82 | $ 61.99 |
Segment and Geographic Data, Se
Segment and Geographic Data, Selected Information by Reportable Segment (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Segment | Oct. 01, 2022 USD ($) | Oct. 02, 2021 USD ($) | |
Segment and Geographic Data [Abstract] | |||
Number of reporting segments | Segment | 4 | ||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | $ 12,664 | $ 14,495 | $ 13,850 |
Operating income | 1,079 | 1,242 | 1,292 |
Depreciation and amortization | 818 | 819 | 854 |
Total assets | 16,587 | 16,956 | |
Operating Segment [Member] | Consumer Packaging International [Member] | |||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | 4,031 | 4,293 | 4,242 |
Operating income | 273 | 346 | 317 |
Depreciation and amortization | 310 | 317 | 341 |
Total assets | 6,217 | 6,993 | |
Operating Segment [Member] | Consumer Packaging North America [Member] | |||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | 3,122 | 3,548 | 3,141 |
Operating income | 346 | 338 | 276 |
Depreciation and amortization | 217 | 214 | 224 |
Total assets | 4,312 | 3,992 | |
Operating Segment [Member] | Engineered Materials [Member] | |||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | 2,884 | 3,488 | 3,309 |
Operating income | 333 | 328 | 301 |
Depreciation and amortization | 114 | 112 | 112 |
Total assets | 2,476 | 2,236 | |
Operating Segment [Member] | Health, Hygiene & Specialties [Member] | |||
Selected Information by Reportable Segment [Abstract] | |||
Net sales | 2,627 | 3,166 | 3,158 |
Operating income | 127 | 230 | 398 |
Depreciation and amortization | 177 | 176 | $ 177 |
Total assets | $ 3,582 | $ 3,735 |
Segment and Geographic Data, _2
Segment and Geographic Data, Selected Information by Geographical Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Selected Information by Geographical Region [Abstract] | |||
Net sales | $ 12,664 | $ 14,495 | $ 13,850 |
Long-lived assets | 12,054 | 11,792 | |
Reportable Geographical Region [Member] | United States and Canada [Member] | |||
Selected Information by Geographical Region [Abstract] | |||
Net sales | 6,893 | 7,907 | 7,351 |
Long-lived assets | 6,893 | 6,826 | |
Reportable Geographical Region [Member] | Europe [Member] | |||
Selected Information by Geographical Region [Abstract] | |||
Net sales | 4,559 | 5,065 | 4,898 |
Long-lived assets | 3,800 | 3,616 | |
Reportable Geographical Region [Member] | Rest of World [Member] | |||
Selected Information by Geographical Region [Abstract] | |||
Net sales | 1,212 | 1,523 | $ 1,601 |
Long-lived assets | $ 1,361 | $ 1,350 |
Segment and Geographic Data, _3
Segment and Geographic Data, Selected Information by Product Line (Details) - Net Sales [Member] - Product Concentration Risk [Member] | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Consumer Packaging International [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 100% | 100% | 100% |
Consumer Packaging International [Member] | Packaging [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 76% | 76% | 81% |
Consumer Packaging International [Member] | Non-packaging [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 24% | 24% | 19% |
Consumer Packaging North America [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 100% | 100% | 100% |
Consumer Packaging North America [Member] | Rigid Open Top [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 66% | 62% | 57% |
Consumer Packaging North America [Member] | Rigid Closed Top [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 34% | 38% | 43% |
Engineered Materials [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 100% | 100% | 100% |
Engineered Materials [Member] | Core Films [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 60% | 59% | 63% |
Engineered Materials [Member] | Retail & Industrial [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 40% | 41% | 37% |
Health, Hygiene & Specialties [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 100% | 100% | 100% |
Health, Hygiene & Specialties [Member] | Health [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 14% | 14% | 18% |
Health, Hygiene & Specialties [Member] | Hygiene [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 48% | 51% | 47% |
Health, Hygiene & Specialties [Member] | Specialties [Member] | |||
Selected Information by Product Line [Abstract] | |||
Concentration risk percentage | 38% | 35% | 35% |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Oct. 02, 2021 | |
Numerator [Abstract] | |||
Consolidated net income | $ 609 | $ 766 | $ 733 |
Denominator [Abstract] | |||
Weighted average common shares outstanding - basic (in shares) | 120.1 | 130.6 | 134.6 |
Dilutive shares (in shares) | 2.9 | 2.2 | 3.7 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 123 | 132.8 | 138.3 |
Per Common Share Earnings [Abstract] | |||
Basic (in dollars per share) | $ 5.07 | $ 5.87 | $ 5.45 |
Diluted (in dollars per share) | $ 4.95 | $ 5.77 | $ 5.3 |
Antidilutive Shares [Abstract] | |||
Antidilutive shares excluded from computation of earnings per share (in shares) | 1 | 1 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
Nov. 17, 2023 | Oct. 31, 2023 | |
Subsequent Events [Abstract] | ||
Term Loans that had maturity date extended to July 2029 | $ 1,550 | |
Interest rate swaps that had maturity date extended to July 2029 | $ 950 | |
Dividend Declared Q1-2024 [Member] | ||
Subsequent Events [Abstract] | ||
Dividend payable, date declared | 2023-11 | |
Cash dividend | $ 0.275 | |
Dividend payable, date to be paid | Dec. 15, 2023 | |
Dividend payable, date of record | Dec. 01, 2023 |