Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 001-39205 | |
Entity Registrant Name | REYNOLDS CONSUMER PRODUCTS INC. | |
Entity Central Index Key | 0001786431 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-3464426 | |
Entity Address, Address Line One | 1900 W. Field Court | |
Entity Address, City or Town | Lake Forest | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60045 | |
City Area Code | 800 | |
Local Phone Number | 879-5067 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | REYN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 209,758,602 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenues | $ 732 | $ 691 |
Related party net revenues | 25 | 39 |
Total net revenues | 757 | 730 |
Cost of sales | (565) | (541) |
Gross profit | 192 | 189 |
Selling, general and administrative expenses | (78) | (82) |
Other expense, net | (3) | (15) |
Income from operations | 111 | 92 |
Interest expense, net | (12) | (27) |
Income before income taxes | 99 | 65 |
Income tax expense | (25) | (39) |
Net income | $ 74 | $ 26 |
Earnings per share: | ||
Basic | $ 0.35 | $ 0.14 |
Diluted | $ 0.35 | $ 0.14 |
Weighted average shares outstanding: | ||
Basic | 209.7 | 188.8 |
Effect of dilutive securities | 0.1 | 0.2 |
Diluted | 209.8 | 189 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 74 | $ 26 |
Other comprehensive income (loss), net of income taxes: | ||
Currency translation adjustment | (2) | |
Interest rate derivatives | 3 | |
Other comprehensive income (loss), net of income taxes | 3 | (2) |
Comprehensive income | $ 77 | $ 24 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 144 | $ 312 |
Accounts receivable (net of allowance for doubtful accounts of $1 and $1) | 283 | 292 |
Other receivables | 5 | 9 |
Related party receivables | 10 | 8 |
Inventories | 507 | 419 |
Other current assets | 22 | 13 |
Total current assets | 971 | 1,053 |
Property, plant and equipment (net of accumulated depreciation of $710 and $692) | 611 | 612 |
Operating lease right-of-use assets, net | 62 | 61 |
Goodwill | 1,879 | 1,879 |
Intangible assets, net | 1,084 | 1,092 |
Other assets | 32 | 25 |
Total assets | 4,639 | 4,722 |
Liabilities | ||
Accounts payable | 203 | 185 |
Related party payables | 36 | 41 |
Current portion of long-term debt | 25 | 25 |
Income taxes payable | 34 | 6 |
Accrued and other current liabilities | 126 | 175 |
Total current liabilities | 424 | 432 |
Long-term debt | 2,102 | 2,208 |
Long-term operating lease liabilities | 52 | 51 |
Deferred income taxes | 322 | 326 |
Long-term postretirement benefit obligation | 54 | 53 |
Other liabilities | 42 | 37 |
Total liabilities | 2,996 | 3,107 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity | ||
Additional paid-in capital | 1,380 | 1,381 |
Accumulated other comprehensive income | 4 | 1 |
Retained earnings | 259 | 233 |
Total stockholders' equity | 1,643 | 1,615 |
Total liabilities and stockholders' equity | $ 4,639 | $ 4,722 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1 | $ 1 |
Property, plant and equipment, accumulated depreciation | $ 710 | $ 692 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 210,000,000 | 210,000,000 |
Common stock, shares outstanding | 210,000,000 | 210,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Net Parent (Deficit) | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2019 | $ (818) | $ (823) | $ 5 | ||
Net income | 26 | $ 20 | 6 | ||
Other comprehensive income (loss), net of income taxes | (2) | (2) | |||
Net transfers from Parent | 855 | 855 | |||
Reclassification of net parent (deficit) in RCP | $ 38 | $ (38) | |||
Issuance of common stock, net of costs | 1,339 | 1,339 | |||
Dividends | (31) | (31) | |||
Other | 1 | 1 | |||
Ending balance at Mar. 31, 2020 | 1,370 | 1,378 | (11) | 3 | |
Beginning balance at Dec. 31, 2020 | 1,615 | 1,381 | 233 | 1 | |
Net income | 74 | 74 | |||
Other comprehensive income (loss), net of income taxes | 3 | 3 | |||
Dividends | (48) | (48) | |||
Other | (1) | (1) | |||
Ending balance at Mar. 31, 2021 | $ 1,643 | $ 1,380 | $ 259 | $ 4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2021$ / shares | |
Statement Of Stockholders Equity [Abstract] | |
Dividends, per share, declared | $ 0.23 |
Dividends, per share, paid | $ 0.23 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash provided by (used in) operating activities | ||
Net income | $ 74 | $ 26 |
Adjustments to reconcile net income to operating cash flows: | ||
Depreciation and amortization | 26 | 24 |
Deferred income taxes | (6) | 28 |
Unrealized losses on derivatives | 4 | |
Stock compensation expense | 2 | 1 |
Change in assets and liabilities: | ||
Accounts receivable, net | 9 | (303) |
Other receivables | 4 | (1) |
Related party receivables | (2) | 9 |
Inventories | (88) | (16) |
Accounts payable | 23 | 10 |
Related party payables | (4) | (20) |
Related party accrued interest payable | (18) | |
Income taxes payable | 29 | 11 |
Accrued and other current liabilities | (50) | (7) |
Other assets and liabilities | (8) | (3) |
Net cash provided by (used in) operating activities | 9 | (255) |
Cash used in investing activities | ||
Acquisition of property, plant and equipment | (23) | (23) |
Net cash used in investing activities | (23) | (23) |
Cash (used in) provided by financing activities | ||
Repayment of long-term debt | (106) | |
Dividends paid | (48) | |
Proceeds from long-term debt, net of discounts | 2,472 | |
Repayments of PEI Group Credit Agreement | (8) | |
Advances from related parties | 240 | |
Repayments to related parties | (3,627) | |
Deferred debt transaction costs | (28) | |
Proceeds from IPO settlement facility | 1,168 | |
Repayment of IPO settlement facility | (1,168) | |
Issuance of common stock | 1,410 | |
Equity issuance costs | (69) | |
Net transfers to Parent | (14) | |
Net cash (used in) provided by financing activities | (154) | 376 |
Net (decrease) increase in cash and cash equivalents | (168) | 98 |
Cash and cash equivalents at beginning of period | 312 | 102 |
Cash and cash equivalents at end of period | $ 144 | $ 200 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies Description of Business: Reynolds Consumer Products Inc. and its subsidiaries (“we”, “us” or “our”) produce and sell products across three broad categories: cooking products, waste & storage products and tableware. We sell our products under brands such as Reynolds and Hefty, and also under store brands. Our product portfolio includes aluminum foil, wraps, disposable bakeware, trash bags, food storage bags and disposable tableware. We report four business segments: Reynolds Cooking & Baking; Hefty Waste & Storage; Hefty Tableware; and Presto Products. Basis of Presentation: We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by GAAP for comprehensive annual financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2020, and should be read in conjunction with the disclosures therein. In our opinion, these interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial condition, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. Prior to the completion of our Corporate Reorganization, as defined in our Registration Statement on Form S-1 (File No. 333-234731), and initial public offering (“IPO”) on February 4, 2020, we operated as part of Pactiv Evergreen Inc. (“PEI”) and not as a stand-alone entity. We represented the business that was previously reported as the Reynolds Consumer Products segment in the consolidated financial statements of PEI and its subsidiaries (collectively, “PEI Group” or the “Parent”). As part of our Corporate Reorganization, we reorganized the legal structure of our entities so they are all under a single parent entity, Reynolds Consumer Products Inc. In conjunction with our Corporate Reorganization and IPO, we separated from PEI Group on February 4, 2020. Net Parent deficit represented the former Parent’s interest in our net assets. As a direct ownership relationship did not exist between the various entities of our previously combined group, a Net Parent deficit account was shown in our previously combined financial statements. The majority of transactions between us and PEI Group have a history of settlement or were settled for cash in conjunction with our separation from PEI Group and IPO. These transactions have been reflected in our condensed consolidated balance sheets as related party receivables and payables. Transactions that did not have a history of settlement were reflected in equity (deficit) in our previously combined balance sheets as Net Parent deficit and, when cash was utilized (contributed), in our condensed consolidated statements of cash flows as a financing activity in net transfers from (to) Parent. Initial Public Offering: On February 4, 2020, we completed our separation from PEI Group and the IPO of our common stock pursuant to a Registration Statement on Form S-1. In the IPO, we sold an aggregate of 54,245,500 shares of common stock, including 7,075,500 shares of common stock purchased by the underwriters on February 7, 2020 pursuant to their option to purchase additional shares, under the Registration Statement at a public offering price of $26.00 per share. In conjunction with our separation from PEI Group and IPO, we reclassified PEI Group’s historical net investment in us to additional paid-in capital. Each share of our outstanding common stock, immediately prior to our IPO, was exchanged into 155,455 shares of common stock. In addition, certain related party borrowings owed to PEI Group were contributed as additional paid-in capital without the issuance of any additional shares. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Standards | Note 2 – New Accounting Standards Recently Adopted Accounting Guidance: In August 2018, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Accounting Guidance Issued But Not Yet Adopted: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 – Inventories Inventories consisted of the following: March 31, 2021 December 31, 2020 (in millions) Raw materials $ 152 $ 138 Work in progress 51 54 Finished goods 270 194 Spare parts 34 33 Inventories $ 507 $ 419 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instruments [Abstract] | |
Debt | Note 4 – Debt Long-term debt consisted of the following: March 31, 2021 December 31, 2020 (in millions) Term loan facility $ 2,150 $ 2,257 Deferred financing transaction costs (20 ) (21 ) Original issue discounts (3 ) (3 ) 2,127 2,233 Less: current portion (25 ) (25 ) Long-term debt $ 2,102 $ 2,208 External Debt Facilities In February 2020, we entered into new external debt facilities (“External Debt Facilities”), which consist of (i) a $2,475 million senior secured term loan facility (“Term Loan Facility”); and (ii) a $250 million senior secured revolving credit facility (“Revolving Facility”). In addition, on February 4, 2020 we entered into, and extinguished, a $1,168 million facility (“IPO Settlement Facility”). The proceeds from the Term Loan Facility and IPO Settlement Facility, net of transaction costs and original issue discounts, together with available cash, were used to repay accrued related party interest and a portion of the related party loans payable. Borrowings under the External Debt Facilities bear interest at a rate per annum equal to, at our option, either a base rate or a LIBO rate plus an applicable margin of 1.75%. During September 2020, we entered into a series of interest rate swaps to hedge a portion of the interest rate exposure resulting from these borrowings. The External Debt Facilities contain a springing financial covenant requiring compliance with a ratio of first lien net indebtedness to consolidated EBITDA, 35% We are currently in compliance with the covenants contained in our External Debt Facilities. If an event of default occurs, the lenders under the External Debt Facilities are entitled to take various actions, including the acceleration of amounts due under the External Debt Facilities and all actions permitted to be taken by secured creditors. Term Loan Facility The Term Loan Facility matures in February 2027. The Term Loan Facility amortizes in equal quarterly installments of $6 million, which commenced in June 2020, with the balance payable on maturity. During the first quarter of 2021, we made a voluntary principal payment of $100 million related to our Term Loan Facility. Revolving Facility The Revolving Facility matures in February 2025 and includes a sub-facility for letters of credit. As of March 31, 2021, we had no outstanding borrowings under the Revolving Facility, and we had $7 million of letters of credit outstanding, which reduces the borrowing capacity under the Revolving Facility. Fair Value of Our Long-Term Debt The fair value of our long-term debt as of March 31, 2021, which is a Level 2 fair value measurement, approximates the carrying value due to the variable market interest rate and the stability of our credit profile. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 5 – Stock-based Compensation We granted restricted stock units (“RSUs”) in July 2019 to certain members of management, pursuant to retention agreements entered into with these employees (the “IPO Grants”). These RSUs vest upon satisfaction of both a performance-based vesting condition (the “IPO Condition”) and a service-based vesting condition (the “Service Condition”). The IPO Condition was satisfied when we completed our IPO on February 4, 2020. The Service Condition will be satisfied with respect to one-third of an employee’s RSUs on each anniversary from the date of our IPO for three consecutive years, subject to the employee’s continued employment through the applicable vesting date. In addition, in conjunction with our Corporate Reorganization and IPO, we established an equity incentive plan for purposes of granting stock-based compensation awards to certain of our senior management, our non-executive directors and to certain employees, to incentivize their performance and align their interests with ours. We have granted RSUs to certain employees and non-employee directors that have a service-based vesting condition. In addition, we granted performance stock units (“PSUs”) to certain members of management that have a performance-based vesting condition. We account for forfeitures of outstanding but unvested grants in the period they occur. 10.5 . In the three months ended March 31, 2021, 0.2 million As of March 31, 2021, there were stock-based compensation awards representing approximately 0.6 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 – Commitments and Contingencies Legal Proceedings: We are from time to time party to litigation, legal proceedings and tax examinations arising from our operations. Most of these matters involve allegations of damages against us relating to employment matters, personal injury and commercial or contractual disputes. We record estimates for claims and proceedings that constitute a present obligation when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of such obligation can be made. While it is not possible to predict the outcome of any of these matters, based on our assessment of the facts and circumstances, we do not believe any of these matters, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our financial position, results of operations or cash flows in a future period. As of March 31, 2021, there were no legal proceedings pending other than those for which we have determined that the possibility of a material outflow is remote. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Note 7 – Accumulated Other Comprehensive Income The following table summarizes the changes in our balances of each component of accumulated other comprehensive income. Three Months Ended March 31, 2021 2020 (in millions) Currency translation adjustments: Balance as of beginning of period $ (6 ) $ (6 ) Currency translation adjustments — (2 ) Other comprehensive income (loss) — (2 ) Balance as of end of period $ (6 ) $ (8 ) Employee benefit plans: Balance as of beginning of period $ 8 $ 11 Other comprehensive income — — Balance as of end of period $ 8 $ 11 Interest rate derivatives: Balance as of beginning of period $ (1 ) $ — Income arising during period 3 — Other comprehensive income 3 — Balance as of end of period $ 2 $ — Accumulated other comprehensive income Balance as of beginning of period $ 1 $ 5 Other comprehensive income (loss) 3 (2 ) Balance as of end of period $ 4 $ 3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes Prior to our separation from PEI Group and IPO, our U.S. operations were included in the U.S. federal consolidated and certain state and local tax returns filed by PEI Group. We also file certain separate U.S. state and local and foreign income tax returns. For the periods prior to separation, income tax (expense) benefit and deferred tax balances are presented in these condensed consolidated financial statements as if we filed tax returns on a stand-alone basis. Upon separation from PEI Group, becoming a separate taxable entity and the change from carve-out financial statements to consolidated financial statements, we have remeasured certain deferred taxes. These adjustments have been recognized directly in equity. Our income tax expense for the three months ended March 31, 2021 incorporated an expected annualized effective tax rate of approximately 24.5%, excluding the impact of discrete items, compared to 24.7% in the comparable prior year period. Our income tax expense for the three months ended March 31, 2020 included an incremental discrete expense of $23 million due to the remeasurement of our deferred tax asset associated with the deductibility of interest expense as a result of the enactment, subsequent to our separation from PEI Group, of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act on March 27, 2020. As a result of our inclusion in PEI Group’s U.S. federal consolidated and certain state and local tax returns prior to our IPO, the completion of PEI Group’s tax returns for the year ended December 31, 2020 may result in changes to deferred taxes we recognized as of February 4, 2020. Any future changes in these deferred taxes may impact our reported tax expense in a future period. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 9 – Segment Information Our Chief Executive Officer, who has been identified as our Chief Operating Decision Maker ("CODM"), has evaluated how he views and measures our performance. In applying the criteria set forth in the standards for reporting information about segments in financial statements, we have determined that we have four reportable segments - Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware and Presto Products. The key factors used to identify these reportable segments are the organization and alignment of our internal operations and the nature of our products. This reflects how our CODM monitors performance, allocates capital and makes strategic and operational decisions. Our segments are described as follows: Reynolds Cooking & Baking Our Reynolds Cooking & Baking segment produces branded and store brand foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, plastic wrap, baking cups, oven bags and slow cooker liners. Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and E-Z Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America. Hefty Waste & Storage Our Hefty Waste & Storage segment produces both branded and store brand trash and food storage bags. Our branded products are sold under the Hefty Ultra Strong, Hefty Strong Trash Bags, Hefty Renew and Hefty Slider Bags brands. Hefty Tableware Our Hefty Tableware segment sells both branded and store brand disposable and compostable plates, bowls, platters, cups and cutlery. Our Hefty branded products include dishes and party cups. Presto Products Our Presto Products segment primarily sells store brand products in four main categories: food storage bags, trash bags, reusable storage containers and plastic wrap. Our Presto Products segment also includes our specialty business, which serves other consumer products companies by providing Fresh-Lock and Slide-Rite resealable closure systems. Information by Segment We present segment adjusted EBITDA ("Adjusted EBITDA") as this is the financial measure by which management and our CODM allocate resources and analyze the performance of our reportable segments. Adjusted EBITDA represents each segment's earnings before interest, tax, depreciation and amortization and is further adjusted to e xclude unrealized gains and losses on commodity derivatives and IPO and separation-related costs. Total assets by segment are those assets directly associated with the respective operating activities, comprising inventory, property, plant and equipment and operating lease right-of-use assets. Other assets, such as cash, accounts receivable and intangible assets, are monitored on an entity-wide basis and not included in segment information that is regularly reviewed by our CODM. Transactions between segments are at negotiated prices. Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2021 (in millions) Net revenues $ 272 $ 192 $ 170 $ 126 $ 760 $ (3 ) $ 757 Intersegment revenues — 2 — — 2 (2 ) — Total segment net revenues 272 194 170 126 762 (5 ) 757 Adjusted EBITDA 53 44 34 18 149 Depreciation and amortization 5 4 4 5 18 8 26 Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2020 (in millions) Net revenues $ 243 $ 189 $ 178 $ 127 $ 737 $ (7 ) $ 730 Intersegment revenues — 3 — — 3 (3 ) — Total segment net revenues 243 192 178 127 740 (10 ) 730 Adjusted EBITDA 40 55 35 23 153 Depreciation and amortization 6 4 3 4 17 7 24 Segment assets consisted of the following: Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total (in millions) As of March 31, 2021 $ 475 $ 268 $ 167 $ 217 $ 1,127 $ 3,512 $ 4,639 As of December 31, 2020 433 248 157 204 1,042 3,680 4,722 (1) Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets. The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes: Three Months Ended March 31, 2021 2020 (in millions) Segment Adjusted EBITDA $ 149 $ 153 Corporate / unallocated expenses (9 ) (18 ) 140 135 Adjustments to reconcile to GAAP income before income taxes Depreciation and amortization (26 ) (24 ) Interest expense, net (12 ) (27 ) IPO and separation-related costs (3 ) (14 ) Unrealized losses on derivatives — (4 ) Other — (1 ) Consolidated GAAP income before income taxes $ 99 $ 65 Information in Relation to Products Net revenues by product line are as follows: Three Months Ended March 31, 2021 2020 (in millions) Waste and storage products (1) $ 318 $ 316 Cooking products 272 243 Tableware 170 178 Unallocated (3 ) (7 ) Net revenues $ 757 $ 730 (1) Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments. Our different product lines are generally sold to a common group of customers. For all product lines, there is a relatively short time period between the receipt of the order and the transfer of control over the goods to the customer. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions We historically operated as part of PEI Group. In preparation for our IPO, PEI Group transferred its interest in us to Packaging Finance Limited (“PFL”). PFL owns the majority of our outstanding common stock and owns the majority of the outstanding common stock of PEI Group. Transactions between us and PEI Group are described below. Ongoing Related Party Transactions For the three months ended March 31, 2021, revenues from products sold to PEI Group were $25 million, compared to $39 million in the comparable prior year period. For the three months ended March 31, 2021, products purchased from PEI Group were $74 million, compared to $83 million in the comparable prior year period. For the three months ended March 31, 2021, PEI Group charged us freight and warehousing costs of $14 million, compared to $26 million in the comparable prior year period, which were included in cost of sales. The resulting related party receivables and payables are settled regularly with PEI Group in the normal course of business. Furthermore, $36 million of the dividends paid during the three months ended March 31, 2021, were paid to PFL. Transactions Related to our Separation from PEI Group On January 30, 2020, we repurchased all of the U.S. accounts receivable that we previously sold through PEI Group’s securitization facility for $264 million, $240 million of which was settled in cash and the remaining amount used to settle certain current related party receivables. The cash to purchase these receivables was provided by an increase in related party borrowings, which was subsequently settled as discussed below. On January 30, 2020, our outstanding borrowings, net of deferred financing transaction costs and original issue discounts plus accrued interest incurred under the PEI Group Credit Agreement were reallocated to an entity within PEI Group and on February 4, 2020, we were fully and unconditionally released from the security and guarantee arrangements relating to PEI Group’s borrowings. This reallocation resulted in a payment to PEI Group of $8 million for accrued interest and an increase of $2,001 million in related party borrowings, which was subsequently settled as discussed below. On February 4, 2020, we repaid $3,627 million of related party borrowings and $22 million of related party accrued interest owed to PEI Group and capitalized, as additional paid-in capital without the issuance of any additional shares, the remaining $831 million balance of the related party borrowings owed to PEI Group. On February 4, 2020, we entered into a transition services agreement with a subsidiary of PEI Group, whereby PEI Group will continue to provide certain administrative services to us, including information technology services; accounting, treasury, financial reporting and transaction support; human resources; procurement; tax, legal and compliance related services; and other corporate services for up to 24 months. In addition, we entered into a transition services agreement with Rank Group Limited (an affiliate of PEI Group) whereby, upon our request, Rank Group Limited will provide certain administrative services to us, including financial reporting, consulting and compliance services, insurance procurement and human resources support, legal and corporate secretarial support, and related services for up to 24 months. For the three months ended March 31, 2021, we incurred $2 million related to transition services which were included in selling, general and administrative expenses in our condensed consolidated statements of income compared to $3 million for the three months ended March 31, 2020. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events Quarterly Cash Dividend On April 29, 2021, our Board of Directors approved a cash dividend of $0.23 per common share to be paid on May 27, 2021 to shareholders of record on May 13, 2021. Purchase of Leased Building On April 28, 2021, we purchased a building that was previously accounted for as a leased asset for $24 million. The termination of the lease did not have a material impact on our consolidated balance sheet. Except as described above, there have been no events subsequent to March 31, 2021 which would require accrual or disclosure in these condensed consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: Reynolds Consumer Products Inc. and its subsidiaries (“we”, “us” or “our”) produce and sell products across three broad categories: cooking products, waste & storage products and tableware. We sell our products under brands such as Reynolds and Hefty, and also under store brands. Our product portfolio includes aluminum foil, wraps, disposable bakeware, trash bags, food storage bags and disposable tableware. We report four business segments: Reynolds Cooking & Baking; Hefty Waste & Storage; Hefty Tableware; and Presto Products. |
Basis of Presentation | Basis of Presentation: We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and notes required by GAAP for comprehensive annual financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2020, and should be read in conjunction with the disclosures therein. In our opinion, these interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial condition, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results. Prior to the completion of our Corporate Reorganization, as defined in our Registration Statement on Form S-1 (File No. 333-234731), and initial public offering (“IPO”) on February 4, 2020, we operated as part of Pactiv Evergreen Inc. (“PEI”) and not as a stand-alone entity. We represented the business that was previously reported as the Reynolds Consumer Products segment in the consolidated financial statements of PEI and its subsidiaries (collectively, “PEI Group” or the “Parent”). As part of our Corporate Reorganization, we reorganized the legal structure of our entities so they are all under a single parent entity, Reynolds Consumer Products Inc. In conjunction with our Corporate Reorganization and IPO, we separated from PEI Group on February 4, 2020. Net Parent deficit represented the former Parent’s interest in our net assets. As a direct ownership relationship did not exist between the various entities of our previously combined group, a Net Parent deficit account was shown in our previously combined financial statements. The majority of transactions between us and PEI Group have a history of settlement or were settled for cash in conjunction with our separation from PEI Group and IPO. These transactions have been reflected in our condensed consolidated balance sheets as related party receivables and payables. Transactions that did not have a history of settlement were reflected in equity (deficit) in our previously combined balance sheets as Net Parent deficit and, when cash was utilized (contributed), in our condensed consolidated statements of cash flows as a financing activity in net transfers from (to) Parent. |
Initial Public Offering | Initial Public Offering: On February 4, 2020, we completed our separation from PEI Group and the IPO of our common stock pursuant to a Registration Statement on Form S-1. In the IPO, we sold an aggregate of 54,245,500 shares of common stock, including 7,075,500 shares of common stock purchased by the underwriters on February 7, 2020 pursuant to their option to purchase additional shares, under the Registration Statement at a public offering price of $26.00 per share. In conjunction with our separation from PEI Group and IPO, we reclassified PEI Group’s historical net investment in us to additional paid-in capital. Each share of our outstanding common stock, immediately prior to our IPO, was exchanged into 155,455 shares of common stock. In addition, certain related party borrowings owed to PEI Group were contributed as additional paid-in capital without the issuance of any additional shares. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance: In August 2018, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Accounting Guidance Issued But Not Yet Adopted | Accounting Guidance Issued But Not Yet Adopted: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: March 31, 2021 December 31, 2020 (in millions) Raw materials $ 152 $ 138 Work in progress 51 54 Finished goods 270 194 Spare parts 34 33 Inventories $ 507 $ 419 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following: March 31, 2021 December 31, 2020 (in millions) Term loan facility $ 2,150 $ 2,257 Deferred financing transaction costs (20 ) (21 ) Original issue discounts (3 ) (3 ) 2,127 2,233 Less: current portion (25 ) (25 ) Long-term debt $ 2,102 $ 2,208 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Changes in Balances for Each Component of Accumulated Other Comprehensive Income | The following table summarizes the changes in our balances of each component of accumulated other comprehensive income. Three Months Ended March 31, 2021 2020 (in millions) Currency translation adjustments: Balance as of beginning of period $ (6 ) $ (6 ) Currency translation adjustments — (2 ) Other comprehensive income (loss) — (2 ) Balance as of end of period $ (6 ) $ (8 ) Employee benefit plans: Balance as of beginning of period $ 8 $ 11 Other comprehensive income — — Balance as of end of period $ 8 $ 11 Interest rate derivatives: Balance as of beginning of period $ (1 ) $ — Income arising during period 3 — Other comprehensive income 3 — Balance as of end of period $ 2 $ — Accumulated other comprehensive income Balance as of beginning of period $ 1 $ 5 Other comprehensive income (loss) 3 (2 ) Balance as of end of period $ 4 $ 3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Adjusted EBITDA | Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2021 (in millions) Net revenues $ 272 $ 192 $ 170 $ 126 $ 760 $ (3 ) $ 757 Intersegment revenues — 2 — — 2 (2 ) — Total segment net revenues 272 194 170 126 762 (5 ) 757 Adjusted EBITDA 53 44 34 18 149 Depreciation and amortization 5 4 4 5 18 8 26 Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total Three Months Ended March 31, 2020 (in millions) Net revenues $ 243 $ 189 $ 178 $ 127 $ 737 $ (7 ) $ 730 Intersegment revenues — 3 — — 3 (3 ) — Total segment net revenues 243 192 178 127 740 (10 ) 730 Adjusted EBITDA 40 55 35 23 153 Depreciation and amortization 6 4 3 4 17 7 24 |
Summary of Segment Assets | Segment assets consisted of the following: Reynolds Cooking & Baking Hefty Waste & Storage Hefty Tableware Presto Products Segment Total Unallocated (1) Total (in millions) As of March 31, 2021 $ 475 $ 268 $ 167 $ 217 $ 1,127 $ 3,512 $ 4,639 As of December 31, 2020 433 248 157 204 1,042 3,680 4,722 (1) Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets. |
Reconciliation of Segment Adjusted EBITDA to GAAP Income Before Income Taxes | The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes: Three Months Ended March 31, 2021 2020 (in millions) Segment Adjusted EBITDA $ 149 $ 153 Corporate / unallocated expenses (9 ) (18 ) 140 135 Adjustments to reconcile to GAAP income before income taxes Depreciation and amortization (26 ) (24 ) Interest expense, net (12 ) (27 ) IPO and separation-related costs (3 ) (14 ) Unrealized losses on derivatives — (4 ) Other — (1 ) Consolidated GAAP income before income taxes $ 99 $ 65 |
Summary of Net Revenues by Product Line | Net revenues by product line are as follows: Three Months Ended March 31, 2021 2020 (in millions) Waste and storage products (1) $ 318 $ 316 Cooking products 272 243 Tableware 170 178 Unallocated (3 ) (7 ) Net revenues $ 757 $ 730 (1) Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Feb. 07, 2020shares | Feb. 04, 2020$ / sharesshares | Mar. 31, 2021Segment |
Related Party Transaction [Line Items] | |||
Number of reportable segments | Segment | 4 | ||
Pactiv Evergreen Inc. | |||
Related Party Transaction [Line Items] | |||
Outstanding common stock shares exchanged immediately prior to IPO | 155,455 | ||
Pactiv Evergreen Inc. | Underwriters | |||
Related Party Transaction [Line Items] | |||
Number of common stock shares sold | 7,075,500 | ||
IPO | Pactiv Evergreen Inc. | |||
Related Party Transaction [Line Items] | |||
Number of common stock shares sold | 54,245,500 | ||
Shares issued, price per share | $ / shares | $ 26 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 152 | $ 138 |
Work in progress | 51 | 54 |
Finished goods | 270 | 194 |
Spare parts | 34 | 33 |
Inventories | $ 507 | $ 419 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Deferred financing transaction costs | $ (20) | $ (21) |
Original issue discounts | (3) | (3) |
Total debt | 2,127 | 2,233 |
Less: current portion | (25) | (25) |
Long-term debt | 2,102 | 2,208 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt | $ 2,150 | $ 2,257 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Feb. 29, 2020 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||
Line of credit facility, description | The External Debt Facilities contain a springing financial covenant requiring compliance with a ratio of first lien net indebtedness to consolidated EBITDA, applicable solely to the Revolving Facility. The financial covenant is tested on the last day of any fiscal quarter only if the aggregate principal amount of borrowings under the Revolving Facility and drawn but unreimbursed letters of credit exceed 35% of the total amount of commitments under the Revolving Facility on such day. We are currently in compliance with the covenants contained in our External Debt Facilities. | |
Quarterly unreimbursed letters of credit minimum percentage | 35.00% | |
Debt instrument, maturity period | Feb. 28, 2025 | |
Letters of credit outstanding | $ 7,000,000 | |
Outstanding borrowings under revolving facility | $ 0 | |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity period | Feb. 28, 2027 | |
Debt instrument, periodic payment | $ 6,000,000 | |
Debt instrument, voluntary principal payment | $ 100,000,000 | |
External Debt Facilities | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.75% | |
External Debt Facilities | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maximum borrowing capacity | $ 2,475,000,000 | |
External Debt Facilities | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, maximum borrowing capacity | 250,000,000 | |
External Debt Facilities | IPO Settlement Facility | ||
Debt Instrument [Line Items] | ||
Extinguishment of debt | $ 1,168,000,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of employees can satisfied the service condition | 33.33% | ||
Minimum period of employees need to continued employment | 3 years | ||
Number of common stock available for issuance | 10.5 | ||
Shares issued | 0.6 | 0.4 | |
Stock-based compensation expense | $ 2 | $ 1 | |
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares granted | 0.2 | ||
PSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares granted | 0.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Changes in Balances for Each Component of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ 1,615 | $ (818) |
Other comprehensive income (loss) | 3 | (2) |
Ending balance | 1,643 | 1,370 |
Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance as of beginning of period | (6) | (6) |
Currency translation adjustments | (2) | |
Other comprehensive income (loss) | (2) | |
Balance as of end of period | (6) | (8) |
Employee Benefit Plans | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance as of beginning of period | 8 | 11 |
Balance as of end of period | 8 | 11 |
Interest Rate Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance as of beginning of period | (1) | |
Income arising during period | 3 | |
Other comprehensive income (loss) | 3 | |
Balance as of end of period | 2 | |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | 1 | 5 |
Other comprehensive income (loss) | 3 | (2) |
Ending balance | $ 4 | $ 3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax [Line Items] | ||
Expected annualized effective tax rate | 24.50% | 24.70% |
Income tax expense | $ 25 | $ 39 |
RGHL Group | ||
Income Tax [Line Items] | ||
Income tax expense | $ 23 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information - Summary o
Segment Information - Summary of Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 757 | $ 730 |
Adjusted EBITDA | 140 | 135 |
Depreciation and amortization | 26 | 24 |
Net Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 757 | 730 |
Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 762 | 740 |
Adjusted EBITDA | 149 | 153 |
Depreciation and amortization | 18 | 17 |
Operating Segment | Net Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 760 | 737 |
Operating Segment | Intersegment Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 2 | 3 |
Operating Segment | Reynolds Cooking & Baking | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 272 | 243 |
Adjusted EBITDA | 53 | 40 |
Depreciation and amortization | 5 | 6 |
Operating Segment | Reynolds Cooking & Baking | Net Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 272 | 243 |
Operating Segment | Hefty Waste & Storage | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 194 | 192 |
Adjusted EBITDA | 44 | 55 |
Depreciation and amortization | 4 | 4 |
Operating Segment | Hefty Waste & Storage | Net Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 192 | 189 |
Operating Segment | Hefty Waste & Storage | Intersegment Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 2 | 3 |
Operating Segment | Hefty Tableware | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 170 | 178 |
Adjusted EBITDA | 34 | 35 |
Depreciation and amortization | 4 | 3 |
Operating Segment | Hefty Tableware | Net Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 170 | 178 |
Operating Segment | Presto Products | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 126 | 127 |
Adjusted EBITDA | 18 | 23 |
Depreciation and amortization | 5 | 4 |
Operating Segment | Presto Products | Net Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 126 | 127 |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Net revenues | (5) | (10) |
Adjusted EBITDA | (9) | (18) |
Depreciation and amortization | 8 | 7 |
Unallocated | Net Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | (3) | (7) |
Unallocated | Intersegment Revenues | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ (2) | $ (3) |
Segment Information - Summary_2
Segment Information - Summary of Segment Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Assets | $ 4,639 | $ 4,722 |
Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,127 | 1,042 |
Operating Segment | Reynolds Cooking & Baking | ||
Segment Reporting Information [Line Items] | ||
Assets | 475 | 433 |
Operating Segment | Hefty Waste & Storage | ||
Segment Reporting Information [Line Items] | ||
Assets | 268 | 248 |
Operating Segment | Hefty Tableware | ||
Segment Reporting Information [Line Items] | ||
Assets | 167 | 157 |
Operating Segment | Presto Products | ||
Segment Reporting Information [Line Items] | ||
Assets | 217 | 204 |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 3,512 | $ 3,680 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Adjusted EBITDA to GAAP Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | $ 140 | $ 135 |
Adjustments to reconcile to GAAP income before income taxes | ||
Depreciation and amortization | (26) | (24) |
Interest expense, net | (12) | (27) |
IPO and separation-related costs | (3) | (14) |
Unrealized losses on derivatives | (4) | |
Other | (1) | |
Income before income taxes | 99 | 65 |
Segment Adjusted EBITDA | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | 149 | 153 |
Adjustments to reconcile to GAAP income before income taxes | ||
Depreciation and amortization | (18) | (17) |
Corporate / Unallocated Expenses | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (9) | (18) |
Adjustments to reconcile to GAAP income before income taxes | ||
Depreciation and amortization | $ (8) | $ (7) |
Segment Information - Summary_3
Segment Information - Summary of Net Revenues by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 757 | $ 730 |
Waste and Storage Products | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 318 | 316 |
Cooking Products | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 272 | 243 |
Tableware | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 170 | 178 |
Unallocated | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ (3) | $ (7) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Feb. 04, 2020 | Jan. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||
Revenues | $ 757 | $ 730 | |||
Costs of sales | 565 | 541 | |||
Related party borrowings | 36 | $ 41 | |||
PEI Group | |||||
Related Party Transaction [Line Items] | |||||
Revenues | 25 | 39 | |||
Products purchased | 74 | 83 | |||
Repurchase of accounts receivable | $ 264 | ||||
Cash payments to acquire receivables | 240 | ||||
Repayment of related party accrued interest | $ 22 | 8 | |||
Increase in related party borrowings | $ 2,001 | ||||
Repayments of related party borrowings | 3,627 | ||||
Related party borrowings | $ 831 | ||||
PEI Group | Selling, General and Administrative Expenses | |||||
Related Party Transaction [Line Items] | |||||
Transition services | 2 | 3 | |||
PFL | |||||
Related Party Transaction [Line Items] | |||||
Dividend paid | 36 | ||||
Freight and Warehousing Costs | PEI Group | |||||
Related Party Transaction [Line Items] | |||||
Costs of sales | $ 14 | $ 26 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 29, 2021 | Apr. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsequent Event [Line Items] | ||||
Cash dividend per common share | $ 0.23 | $ 0.15 | ||
Subsequent Events | ||||
Subsequent Event [Line Items] | ||||
Cash dividend per common share | $ 0.23 | |||
Cash dividend per common share, date to be paid | May 27, 2021 | |||
Cash dividend per common share, date of record | May 13, 2021 | |||
Payments to acquire leased building | $ 24 |