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Greif(GEF_B) - 2024 Q4 - Annual Report
GEF_BGreif(GEF_B)2024-12-23 15:31

Financial Performance - Total net sales for the year ended October 31, 2024, reached 5,218.6million,with5,218.6 million, with 3,332.3 million from Global Industrial Packaging and 2,260.5 million from Paper Packaging & Services[230]. - U.S. income before income tax expense was 85.1 million in 2024, down from 240.7millionin2023[169].Thecompanyseffectiveincometaxratedecreasedto8.51240.7 million in 2023[169]. - The company's effective income tax rate decreased to 8.51% in 2024 from 23.81% in 2023[201]. - The balance of unrecognized tax benefits increased to 25.5 million as of October 31, 2024, up from 23.4millionin2023[172].Thecompanyreportedadecreaseinactiveparticipantsinpostretirementbenefitplansfrom1,509in2023to1,323in2024[206].Thecompanysaccumulatedothercomprehensiveloss(pretax)was23.4 million in 2023[172]. - The company reported a decrease in active participants in post-retirement benefit plans from 1,509 in 2023 to 1,323 in 2024[206]. - The company's accumulated other comprehensive loss (pre-tax) was 109.2 million as of October 31, 2024[215]. Acquisitions and Divestitures - The company completed the Ipackchem Acquisition on March 26, 2024, enhancing its position in high-performance plastic packaging[227]. - The cash consideration for the ColePak acquisition was 74.6million,withanoncontrollinginterestvaluedat74.6 million, with a noncontrolling interest valued at 72.1 million[131]. - Total identifiable net assets acquired in the ColePak acquisition were 86.6million,withgoodwillrecognizedat86.6 million, with goodwill recognized at 60.1 million[131]. - The fair value of customer relationships acquired in the Ipackchem acquisition was 183.8millionwithaweightedaverageestimatedusefullifeof13.5years[127].TheTamaDivestituregeneratednetcashproceedsof183.8 million with a weighted average estimated useful life of 13.5 years[127]. - The Tama Divestiture generated net cash proceeds of 100.0 million and resulted in a gain on sale of business of 54.6million,includinggoodwillallocatedtothesaleof54.6 million, including goodwill allocated to the sale of 22.5 million[143]. Capital Investments and Financial Agreements - The company is making significant capital investments in new equipment automation and technology to increase capacity, productivity, and safety[68]. - An Incremental Term Loan Agreement was executed on March 25, 2024, as an amendment to the existing credit agreement[104]. - The company has a Second Amended and Restated Credit Agreement dated March 1, 2022, with various financial institutions as lenders[103]. - The outstanding balance under the 2022 and 2023 Credit Agreements was 2,369.9millionasofOctober31,2024,withaweightedaverageinterestrateof6.522,369.9 million as of October 31, 2024, with a weighted average interest rate of 6.52%[152]. - The company has a secured revolving credit facility of 800.0 million, maturing on March 1, 2027[181]. Economic and Market Conditions - The company faces significant competitors in its markets, with pricing pressure expected to continue due to lower customer demand patterns experienced in fiscal years 2023 and 2024[66]. - Economic downturns or geopolitical uncertainties could materially adversely affect the company's business and cash flows[83]. - The ongoing military conflict in Ukraine has increased risks such as foreign exchange volatility and supply chain disruptions, potentially impacting financial performance[84]. - The company operates in various industries including chemicals, food and beverage, and pharmaceuticals, which are sensitive to economic conditions[82]. - The company faces challenges in forecasting revenues and operating results due to global economic conditions, leading to potential stock price volatility[87]. Employee and Safety Initiatives - The company is committed to employee well-being through various wellness programs, including health care insurances and mental health support[77]. - The company has established safety policies and programs to comply with extensive health and safety regulations, which are not expected to materially affect financial condition[51]. - The company utilizes Greif University for employee training and development, enhancing leadership and customer service skills[79]. Pension and Benefit Obligations - The benefit obligation at the end of the year for October 31, 2024, is 654.1million,anincreasefrom654.1 million, an increase from 604.1 million at the end of the previous year[240]. - The net periodic pension cost for the company was 7.2million,with7.2 million, with 4.8 million attributed to the United States and 2.4milliontointernationaloperations[177].TheactuariallossfortheyearendedOctober31,2024,was2.4 million to international operations[177]. - The actuarial loss for the year ended October 31, 2024, was 52.8 million, primarily due to changes in discount rates used to measure benefit obligations[241]. - The service cost for the year ended October 31, 2024, was 6.8million,comparedto6.8 million, compared to 8.0 million in the previous year[240]. - The investment policy aims for a well-diversified asset portfolio to meet long-term funding obligations without undue risk[242]. Asset Management and Impairments - Asset impairment charges recognized were 2.6millionin2024and2.6 million in 2024 and 20.3 million in 2023, with significant write-downs in long-lived assets[160]. - The impairment of long-lived assets was recorded at 2.6millionfortheyearendedOctober31,2024,downfrom2.6 million for the year ended October 31, 2024, down from 20.3 million in 2023[192]. - The company has recorded valuation allowances of $65.2 million against non-U.S. deferred tax assets as of October 31, 2024[203].