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Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
European RPA | |||||||||||||||
Gross accounts receivable sold to third party financial institution | $ | 160.0 | $ | 165.9 | $ | 463.3 | $ | 552.6 | |||||||
Cash received for accounts receivable sold under the programs | 140.7 | 147.1 | 409.2 | 489.5 | |||||||||||
Deferred purchase price related to accounts receivable sold | 19.3 | 18.8 | 53.7 | 63.1 | |||||||||||
Loss associated with the programs | 0.2 | 0.3 | 0.7 | 1.2 | |||||||||||
Expenses associated with the programs | — | — | — | — | |||||||||||
Singapore RPA | |||||||||||||||
Gross accounts receivable sold to third party financial institution | $ | 11.4 | $ | 12.0 | $ | 32.5 | $ | 36.4 | |||||||
Cash received for accounts receivable sold under the program | 11.4 | 12.0 | 32.5 | 36.4 | |||||||||||
Deferred purchase price related to accounts receivable sold | — | — | — | — | |||||||||||
Loss associated with the program | — | — | — | — | |||||||||||
Expenses associated with the program | — | — | — | 0.1 | |||||||||||
Total RPAs | |||||||||||||||
Gross accounts receivable sold to third party financial institution | $ | 171.4 | $ | 177.9 | $ | 495.8 | $ | 589.0 | |||||||
Cash received for accounts receivable sold under the program | 152.1 | 159.1 | 441.7 | 525.9 | |||||||||||
Deferred purchase price related to accounts receivable sold | 19.3 | 18.8 | 53.7 | 63.1 | |||||||||||
Loss associated with the program | 0.2 | 0.3 | 0.7 | 1.2 | |||||||||||
Expenses associated with the program | — | — | — | 0.1 |
July 31, 2016 | October 31, 2015 | ||||||
European RPA | |||||||
Accounts receivable sold to and held by third party financial institution | $ | 116.8 | $ | 114.8 | |||
Uncollected deferred purchase price related to accounts receivable sold | 25.9 | — | |||||
Deferred purchase price liability related to accounts receivable sold | — | (1.5 | ) | ||||
Singapore RPA | |||||||
Accounts receivable sold to and held by third party financial institution | $ | 3.5 | $ | 4.0 | |||
Uncollected deferred purchase price related to accounts receivable sold | — | — | |||||
Total RPAs | |||||||
Accounts receivable sold to and held by third party financial institution | $ | 120.3 | $ | 118.8 | |||
Uncollected deferred purchase price related to accounts receivable sold | 25.9 | — | |||||
Deferred purchase price liability related to accounts receivable sold | — | (1.5 | ) |
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July 31, 2016 | October 31, 2015 | ||||||
Raw materials | $ | 191.1 | $ | 190.7 | |||
Work-in-process | 12.8 | 18.3 | |||||
Finished Goods | 84.6 | 88.0 | |||||
$ | 288.5 | $ | 297.0 |
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July 31, 2016 | October 31, 2015 | ||||||
Trade accounts receivable, less allowance | $ | — | $ | 2.3 | |||
Inventories | — | 1.6 | |||||
Properties, plants and equipment, net | 11.7 | 8.1 | |||||
Other assets | — | 4.9 | |||||
Assets held for sale | 11.7 | 16.9 | |||||
Accounts payable | — | 1.8 | |||||
Liabilities held for sale | $ | — | $ | 1.8 |
|
Rigid Industrial Packaging & Services | Paper Packaging & Services | Total | |||||||||
Balance at October 31, 2015 | $ | 747.6 | $ | 59.5 | $ | 807.1 | |||||
Goodwill acquired | — | — | — | ||||||||
Goodwill allocated to divestitures and businesses held for sale (1) | 3.4 | — | 3.4 | ||||||||
Goodwill adjustments | — | — | — | ||||||||
Goodwill impairment charge (2) | (21.0 | ) | (21.0 | ) | |||||||
Currency translation | 1.5 | — | 1.5 | ||||||||
Balance at July 31, 2016 | $ | 731.5 | $ | 59.5 | $ | 791.0 |
(1) | Goodwill previously allocated to divestitures and businesses held for sale that was impaired during the first quarter of 2016. |
(2) | Goodwill impairment charge recorded for businesses reclassified to held for sale during the nine months ended July 31, 2016. |
Gross Intangible Assets | Accumulated Amortization | Net Intangible Assets | |||||||||
July 31, 2016: | |||||||||||
Indefinite lived: | |||||||||||
Trademarks and patents | $ | 13.1 | $ | — | $ | 13.1 | |||||
Definite lived: | |||||||||||
Customer relationships | 177.9 | 89.0 | 88.9 | ||||||||
Trademarks and patents | 12.1 | 4.6 | 7.5 | ||||||||
Non-compete agreements | 1.1 | 1.0 | 0.1 | ||||||||
Other | 23.9 | 13.7 | 10.2 | ||||||||
Total | $ | 228.1 | $ | 108.3 | $ | 119.8 | |||||
October 31, 2015: | |||||||||||
Indefinite lived: | |||||||||||
Trademarks and patents | $ | 13.1 | $ | — | $ | 13.1 | |||||
Definite lived: | |||||||||||
Customer relationships | 180.7 | 81.7 | 99.0 | ||||||||
Trademarks and patents | 12.4 | 4.2 | 8.2 | ||||||||
Non-compete agreements | 4.9 | 4.5 | 0.4 | ||||||||
Other | 24.2 | 12.2 | 12.0 | ||||||||
Total | $ | 235.3 | $ | 102.6 | $ | 132.7 |
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Employee Separation Costs | Other Costs | Total | |||||||||
Balance at October 31, 2015 | $ | 14.7 | $ | 6.6 | $ | 21.3 | |||||
Costs incurred and charged to expense | 10.7 | 7.2 | 17.9 | ||||||||
Costs paid or otherwise settled | (16.6 | ) | (7.8 | ) | (24.4 | ) | |||||
Balance at July 31, 2016 | $ | 8.8 | $ | 6.0 | $ | 14.8 |
Total Amounts Expected to be Incurred | Amount expensed during the nine month period ended July 31, 2016 | Amounts Remaining to be Incurred | |||||||||
Rigid Industrial Packaging & Services | |||||||||||
Employee separation costs | $ | 17.4 | $ | 6.6 | $ | 10.8 | |||||
Other restructuring costs | 5.0 | 4.6 | 0.4 | ||||||||
22.4 | 11.2 | 11.2 | |||||||||
Flexible Products & Services | |||||||||||
Employee separation costs | 5.5 | 3.8 | 1.7 | ||||||||
Other restructuring costs | 1.8 | 1.8 | — | ||||||||
7.3 | 5.6 | 1.7 | |||||||||
Paper Packaging & Services | |||||||||||
Employee separation costs | 0.3 | 0.3 | — | ||||||||
Other restructuring costs | 0.8 | 0.8 | — | ||||||||
1.1 | 1.1 | — | |||||||||
$ | 30.8 | $ | 17.9 | $ | 12.9 |
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July 31, 2016 | October 31, 2015 | ||||||
Cash and cash equivalents | $ | 10.3 | $ | 14.5 | |||
Trade accounts receivable, less allowance of $2.9 in 2016 and $3.2 in 2015 | 45.0 | 47.5 | |||||
Inventories | 50.8 | 44.7 | |||||
Properties, plants and equipment, net | 29.0 | 43.1 | |||||
Other assets | 41.7 | 36.8 | |||||
Total Assets | 176.8 | 186.6 | |||||
Accounts payable | 27.6 | 27.9 | |||||
Other liabilities | 43.2 | 50.6 | |||||
Total Liabilities | $ | 70.8 | $ | 78.5 |
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July 31, 2016 | October 31, 2015 | ||||||
Amended Credit Agreement | $ | 205.7 | $ | 217.4 | |||
Senior Notes due 2017 | 300.3 | 300.7 | |||||
Senior Notes due 2019 | 246.7 | 246.0 | |||||
Senior Notes due 2021 | 219.8 | 219.4 | |||||
Amended Receivables Facility | 75.0 | 147.6 | |||||
Other debt | 11.4 | 15.8 | |||||
1,058.9 | 1,146.9 | ||||||
Less current portion | (300.3 | ) | (30.7 | ) | |||
Long-term debt | $ | 758.6 | $ | 1,116.2 |
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July 31, 2016 | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Balance Sheet Location | |||||||||||||
Foreign exchange hedges | $ | — | $ | 0.5 | $ | — | $ | 0.5 | Prepaid expenses and other current assets | ||||||||
Foreign exchange hedges | — | (0.1 | ) | — | (0.1 | ) | Other current liabilities | ||||||||||
Insurance annuity | — | — | 20.1 | 20.1 | Other long-term assets | ||||||||||||
Total* | $ | — | $ | 0.4 | $ | 20.1 | $ | 20.5 |
October 31, 2015 | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Balance Sheet Location | |||||||||||||
Foreign exchange hedges | $ | — | $ | 0.3 | $ | — | $ | 0.3 | Prepaid expenses and other current assets | ||||||||
Foreign exchange hedges | — | (0.2 | ) | — | (0.2 | ) | Other current liabilities | ||||||||||
Insurance annuity | — | — | 20.1 | 20.1 | Other long-term assets | ||||||||||||
Total* | $ | — | $ | 0.1 | $ | 20.1 | $ | 20.2 |
* | The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of July 31, 2016 and October 31, 2015 approximate their fair values because of the short-term nature of these items and are not included in this table. |
July 31, 2016 | October 31, 2015 | ||||||
Senior Notes due 2017 | |||||||
Estimated fair value | $ | 307.2 | $ | 314.8 | |||
Senior Notes due 2019 | |||||||
Estimated fair value | 282.5 | 280.6 | |||||
Senior Notes due 2021 | |||||||
Estimated fair value | 266.9 | 258.7 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
Fair Value of Impairment | Valuation Technique | Unobservable Input | Range of Input Values | ||||||
(in millions) | |||||||||
July 31, 2016 | |||||||||
Impairment of Net Assets Held for Sale | $ | 37.6 | Broker Quote/ Indicative Bids | Indicative Bids | N/A | ||||
Impairment of Long Lived Assets | $ | 7.3 | Sales Value | Sales Value | N/A | ||||
July 31, 2015 | |||||||||
Impairment of Long Lived Assets - Land & Building | $ | 17.7 | Broker Quote/ Indicative Bids | Indicative Bids | N/A | ||||
Impairment of Long Lived Assets - Machinery & Equipment | $ | 3.0 | Sales Value | Sales Value | N/A |
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Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | 3.2 | $ | 4.1 | $ | 9.4 | $ | 12.4 | |||||||
Interest cost | 5.7 | 7.1 | 16.9 | 21.3 | |||||||||||
Expected return on plan assets | (8.3 | ) | (8.4 | ) | (24.9 | ) | (25.3 | ) | |||||||
Amortization of prior service cost, initial net asset and net actuarial gain | 2.8 | 3.7 | 8.6 | 11.0 | |||||||||||
Net periodic pension costs | $ | 3.4 | $ | 6.5 | $ | 10.0 | $ | 19.4 |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 0.2 | 0.1 | 0.4 | 0.5 | |||||||||||
Amortization of prior service cost and recognized actuarial gain | (0.4 | ) | (0.4 | ) | (1.2 | ) | (1.2 | ) | |||||||
Net periodic benefit for postretirement benefits | $ | (0.2 | ) | $ | (0.3 | ) | $ | (0.8 | ) | $ | (0.7 | ) |
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Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||
As of October 31, 2015 | 47,814 | $ | 139.1 | 29,028 | $ | (130.6 | ) | $ | 1,384.5 | $ | (377.4 | ) | $ | 1,015.6 | $ | 44.3 | $ | 1,059.9 | |||||||||||||||
Net income | 66.4 | 66.4 | 2.6 | 69.0 | |||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||
- foreign currency translation | (5.3 | ) | (5.3 | ) | (4.3 | ) | (9.6 | ) | |||||||||||||||||||||||||
- minimum pension liability adjustment, net of income tax expense | 3.5 | 3.5 | 3.5 | ||||||||||||||||||||||||||||||
Comprehensive income (loss) | 64.6 | 62.9 | |||||||||||||||||||||||||||||||
Out of period mark to redemption value of redeemable noncontrolling interest | (19.8 | ) | (19.8 | ) | (19.8 | ) | |||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | (3.1 | ) | (3.1 | ) | (3.1 | ) | |||||||||||||||||||||||||||
Reclassification of redeemable noncontrolling interest | 1.2 | 1.2 | (22.8 | ) | (21.6 | ) | |||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | (3.9 | ) | (3.9 | ) | |||||||||||||||||||||||||||||
Other | — | (0.4 | ) | (0.4 | ) | ||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders | (74.0 | ) | (74.0 | ) | (74.0 | ) | |||||||||||||||||||||||||||
Contributions from noncontrolling interest | — | 0.8 | 0.8 | ||||||||||||||||||||||||||||||
Dividends to noncontrolling interests | (3.9 | ) | (3.9 | ) | |||||||||||||||||||||||||||||
Treasury shares acquired | (110 | ) | 110 | (5.2 | ) | (5.2 | ) | (5.2 | ) | ||||||||||||||||||||||||
Restricted stock executives and directors | 47 | 1.3 | (47 | ) | 0.1 | 1.4 | 1.4 | ||||||||||||||||||||||||||
Long-term incentive shares issued | 41 | 1.0 | (41 | ) | 0.1 | 1.1 | 1.1 | ||||||||||||||||||||||||||
As of July 31, 2016 | 47,792 | $ | 141.4 | 29,050 | $ | (135.6 | ) | $ | 1,355.2 | $ | (379.2 | ) | $ | 981.8 | $ | 12.4 | $ | 994.2 |
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||
As of October 31, 2014 | 47,724 | $ | 135.5 | 29,118 | $ | (130.7 | ) | $ | 1,411.7 | $ | (274.4 | ) | $ | 1,142.1 | $ | 81.1 | $ | 1,223.2 | |||||||||||||||
Net income | 59.5 | 59.5 | (1.5 | ) | 58.0 | ||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||
- foreign currency translation | (87.7 | ) | (87.7 | ) | (21.8 | ) | (109.5 | ) | |||||||||||||||||||||||||
- Net reclassification of cash flow hedges to earnings, net of immaterial income tax benefit | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||
- minimum pension liability adjustment, net of income tax benefit of $2.4 million | 5.5 | 5.5 | 5.5 | ||||||||||||||||||||||||||||||
Comprehensive income (loss) | (22.6 | ) | (45.9 | ) | |||||||||||||||||||||||||||||
Acquisition of noncontrolling interest and other | (0.4 | ) | (0.4 | ) | (10.1 | ) | (10.5 | ) | |||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders | (74.0 | ) | (74.0 | ) | (74.0 | ) | |||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | (4.0 | ) | (4.0 | ) | ||||||||||||||||||||||||||||
Stock options exercised | 10 | 0.2 | (10 | ) | — | 0.2 | 0.2 | ||||||||||||||||||||||||||
Restricted stock executives and directors | 31 | 1.4 | (31 | ) | — | 1.4 | 1.4 | ||||||||||||||||||||||||||
Long-term incentive shares issued | 49 | 2.0 | (49 | ) | 0.1 | 2.1 | 2.1 | ||||||||||||||||||||||||||
As of July 31, 2015 | 47,814 | $ | 139.1 | 29,028 | $ | (130.6 | ) | $ | 1,396.8 | $ | (356.5 | ) | $ | 1,048.8 | $ | 43.7 | $ | 1,092.5 |
Foreign Currency Translation | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance as of October 31, 2015 | $ | (256.6 | ) | $ | (120.8 | ) | $ | (377.4 | ) | ||
Other Comprehensive Income (Loss) Before Reclassifications | (5.3 | ) | 3.5 | (1.8 | ) | ||||||
Current-period Other Comprehensive Income (Loss) | (5.3 | ) | 3.5 | (1.8 | ) | ||||||
Balance as of July 31, 2016 | $ | (261.9 | ) | $ | (117.3 | ) | $ | (379.2 | ) |
Foreign Currency Translation | Cash Flow Hedges | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance as of October 31, 2014 | $ | (144.5 | ) | $ | (0.1 | ) | $ | (129.8 | ) | $ | (274.4 | ) | |||
Other Comprehensive Income (Loss) Before Reclassifications | (87.7 | ) | — | 5.5 | (82.2 | ) | |||||||||
Amounts reclassified from Accumulated Other Comprehensive Loss | — | 0.1 | — | 0.1 | |||||||||||
Current-period Other Comprehensive Income (Loss) | (87.7 | ) | 0.1 | 5.5 | (82.1 | ) | |||||||||
Balance as of July 31, 2015 | $ | (232.2 | ) | $ | — | $ | (124.3 | ) | $ | (356.5 | ) |
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Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 596.8 | $ | 669.0 | $ | 1,721.3 | $ | 1,985.3 | |||||||
Paper Packaging & Services | 172.5 | 176.7 | 498.1 | 496.3 | |||||||||||
Flexible Products & Services | 69.9 | 79.2 | 219.0 | 249.3 | |||||||||||
Land Management | 5.8 | 5.1 | 17.6 | 17.3 | |||||||||||
Total net sales | $ | 845.0 | $ | 930.0 | $ | 2,456.0 | $ | 2,748.2 | |||||||
Operating profit (loss): | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 56.7 | $ | 29.5 | $ | 113.4 | $ | 75.5 | |||||||
Paper Packaging & Services | 19.1 | 21.5 | 64.4 | 76.7 | |||||||||||
Flexible Products & Services | (5.9 | ) | (9.7 | ) | (11.9 | ) | (23.8 | ) | |||||||
Land Management | 1.7 | 2.9 | 6.1 | 32.3 | |||||||||||
Total operating profit | $ | 71.6 | $ | 44.2 | $ | 172.0 | $ | 160.7 | |||||||
Depreciation, depletion and amortization expense: | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 20.8 | $ | 21.8 | $ | 63.7 | $ | 70.2 | |||||||
Paper Packaging & Services | 8.0 | 6.8 | 23.6 | 21.5 | |||||||||||
Flexible Products & Services | 1.8 | 2.2 | 5.9 | 6.6 | |||||||||||
Land Management | 0.9 | 0.8 | 2.6 | 2.6 | |||||||||||
Total depreciation, depletion and amortization expense | $ | 31.5 | $ | 31.6 | $ | 95.8 | $ | 100.9 |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales: | |||||||||||||||
United States | $ | 400.3 | $ | 431.5 | $ | 1,179.0 | $ | 1,269.7 | |||||||
Europe, Middle East and Africa | 318.9 | 337.3 | 905.9 | 979.5 | |||||||||||
Asia Pacific and other Americas | 125.8 | 161.2 | 371.1 | 499.0 | |||||||||||
Total net sales | $ | 845.0 | $ | 930.0 | $ | 2,456.0 | $ | 2,748.2 |
July 31, 2016 | October 31, 2015 | ||||||
Assets: | |||||||
Rigid Industrial Packaging & Services | $ | 1,978.4 | $ | 2,043.3 | |||
Paper Packaging & Services | 444.6 | 444.0 | |||||
Flexible Products & Services | 166.1 | 187.0 | |||||
Land Management | 337.4 | 335.2 | |||||
Total segments | 2,926.5 | 3,009.5 | |||||
Corporate and other | 257.4 | 306.2 | |||||
Total assets | $ | 3,183.9 | $ | 3,315.7 | |||
Properties, plants and equipment, net: | |||||||
United States | $ | 719.3 | $ | 734.1 | |||
Europe, Middle East and Africa | 314.3 | 335.4 | |||||
Asia Pacific and other Americas | 139.4 | 148.2 | |||||
Total properties, plants and equipment, net | $ | 1,173.0 | $ | 1,217.7 |
|
Mandatorily Redeemable Noncontrolling Interest | |||
Balance as of October 31, 2015 | $ | — | |
Reclassification of book value of noncontrolling interest | 10.4 | ||
Out-of period reversal of cumulative income allocated to noncontrolling interest | (1.2 | ) | |
Out-of period mark to redemption value | 0.1 | ||
Current period mark to redemption value | 1.5 | ||
Repurchase of redeemable shareholder interest | (0.8 | ) | |
Balance as of July 31, 2016 | $ | 10.0 |
Redeemable Noncontrolling Interest | |||
Balance as of October 31, 2015 | $ | — | |
Reclassification of book value of noncontrolling interest | 12.4 | ||
Out-of period mark to redemption value* | 19.8 | ||
Current period mark to redemption value | 3.1 | ||
Repurchase of redeemable shareholder interest | (5.5 | ) | |
Redeemable Noncontrolling Interest share of Income/(Loss) and other | 3.9 | ||
Contributions from /(Dividends to) redeemable noncontolling interest and other | (1.4 | ) | |
Balance as of July 31, 2016 | $ | 32.3 |
* | The out-of-period mark to redemption value amounts were charged to retained earnings in the first quarter of 2016. |
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Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
European RPA | |||||||||||||||
Gross accounts receivable sold to third party financial institution | $ | 160.0 | $ | 165.9 | $ | 463.3 | $ | 552.6 | |||||||
Cash received for accounts receivable sold under the programs | 140.7 | 147.1 | 409.2 | 489.5 | |||||||||||
Deferred purchase price related to accounts receivable sold | 19.3 | 18.8 | 53.7 | 63.1 | |||||||||||
Loss associated with the programs | 0.2 | 0.3 | 0.7 | 1.2 | |||||||||||
Expenses associated with the programs | — | — | — | — | |||||||||||
Singapore RPA | |||||||||||||||
Gross accounts receivable sold to third party financial institution | $ | 11.4 | $ | 12.0 | $ | 32.5 | $ | 36.4 | |||||||
Cash received for accounts receivable sold under the program | 11.4 | 12.0 | 32.5 | 36.4 | |||||||||||
Deferred purchase price related to accounts receivable sold | — | — | — | — | |||||||||||
Loss associated with the program | — | — | — | — | |||||||||||
Expenses associated with the program | — | — | — | 0.1 | |||||||||||
Total RPAs | |||||||||||||||
Gross accounts receivable sold to third party financial institution | $ | 171.4 | $ | 177.9 | $ | 495.8 | $ | 589.0 | |||||||
Cash received for accounts receivable sold under the program | 152.1 | 159.1 | 441.7 | 525.9 | |||||||||||
Deferred purchase price related to accounts receivable sold | 19.3 | 18.8 | 53.7 | 63.1 | |||||||||||
Loss associated with the program | 0.2 | 0.3 | 0.7 | 1.2 | |||||||||||
Expenses associated with the program | — | — | — | 0.1 |
July 31, 2016 | October 31, 2015 | ||||||
European RPA | |||||||
Accounts receivable sold to and held by third party financial institution | $ | 116.8 | $ | 114.8 | |||
Uncollected deferred purchase price related to accounts receivable sold | 25.9 | — | |||||
Deferred purchase price liability related to accounts receivable sold | — | (1.5 | ) | ||||
Singapore RPA | |||||||
Accounts receivable sold to and held by third party financial institution | $ | 3.5 | $ | 4.0 | |||
Uncollected deferred purchase price related to accounts receivable sold | — | — | |||||
Total RPAs | |||||||
Accounts receivable sold to and held by third party financial institution | $ | 120.3 | $ | 118.8 | |||
Uncollected deferred purchase price related to accounts receivable sold | 25.9 | — | |||||
Deferred purchase price liability related to accounts receivable sold | — | (1.5 | ) |
|
July 31, 2016 | October 31, 2015 | ||||||
Raw materials | $ | 191.1 | $ | 190.7 | |||
Work-in-process | 12.8 | 18.3 | |||||
Finished Goods | 84.6 | 88.0 | |||||
$ | 288.5 | $ | 297.0 |
|
July 31, 2016 | October 31, 2015 | ||||||
Trade accounts receivable, less allowance | $ | — | $ | 2.3 | |||
Inventories | — | 1.6 | |||||
Properties, plants and equipment, net | 11.7 | 8.1 | |||||
Other assets | — | 4.9 | |||||
Assets held for sale | 11.7 | 16.9 | |||||
Accounts payable | — | 1.8 | |||||
Liabilities held for sale | $ | — | $ | 1.8 |
|
Rigid Industrial Packaging & Services | Paper Packaging & Services | Total | |||||||||
Balance at October 31, 2015 | $ | 747.6 | $ | 59.5 | $ | 807.1 | |||||
Goodwill acquired | — | — | — | ||||||||
Goodwill allocated to divestitures and businesses held for sale (1) | 3.4 | — | 3.4 | ||||||||
Goodwill adjustments | — | — | — | ||||||||
Goodwill impairment charge (2) | (21.0 | ) | (21.0 | ) | |||||||
Currency translation | 1.5 | — | 1.5 | ||||||||
Balance at July 31, 2016 | $ | 731.5 | $ | 59.5 | $ | 791.0 |
(1) | Goodwill previously allocated to divestitures and businesses held for sale that was impaired during the first quarter of 2016. |
(2) | Goodwill impairment charge recorded for businesses reclassified to held for sale during the nine months ended July 31, 2016. |
Gross Intangible Assets | Accumulated Amortization | Net Intangible Assets | |||||||||
July 31, 2016: | |||||||||||
Indefinite lived: | |||||||||||
Trademarks and patents | $ | 13.1 | $ | — | $ | 13.1 | |||||
Definite lived: | |||||||||||
Customer relationships | 177.9 | 89.0 | 88.9 | ||||||||
Trademarks and patents | 12.1 | 4.6 | 7.5 | ||||||||
Non-compete agreements | 1.1 | 1.0 | 0.1 | ||||||||
Other | 23.9 | 13.7 | 10.2 | ||||||||
Total | $ | 228.1 | $ | 108.3 | $ | 119.8 | |||||
October 31, 2015: | |||||||||||
Indefinite lived: | |||||||||||
Trademarks and patents | $ | 13.1 | $ | — | $ | 13.1 | |||||
Definite lived: | |||||||||||
Customer relationships | 180.7 | 81.7 | 99.0 | ||||||||
Trademarks and patents | 12.4 | 4.2 | 8.2 | ||||||||
Non-compete agreements | 4.9 | 4.5 | 0.4 | ||||||||
Other | 24.2 | 12.2 | 12.0 | ||||||||
Total | $ | 235.3 | $ | 102.6 | $ | 132.7 |
|
Employee Separation Costs | Other Costs | Total | |||||||||
Balance at October 31, 2015 | $ | 14.7 | $ | 6.6 | $ | 21.3 | |||||
Costs incurred and charged to expense | 10.7 | 7.2 | 17.9 | ||||||||
Costs paid or otherwise settled | (16.6 | ) | (7.8 | ) | (24.4 | ) | |||||
Balance at July 31, 2016 | $ | 8.8 | $ | 6.0 | $ | 14.8 |
Total Amounts Expected to be Incurred | Amount expensed during the nine month period ended July 31, 2016 | Amounts Remaining to be Incurred | |||||||||
Rigid Industrial Packaging & Services | |||||||||||
Employee separation costs | $ | 17.4 | $ | 6.6 | $ | 10.8 | |||||
Other restructuring costs | 5.0 | 4.6 | 0.4 | ||||||||
22.4 | 11.2 | 11.2 | |||||||||
Flexible Products & Services | |||||||||||
Employee separation costs | 5.5 | 3.8 | 1.7 | ||||||||
Other restructuring costs | 1.8 | 1.8 | — | ||||||||
7.3 | 5.6 | 1.7 | |||||||||
Paper Packaging & Services | |||||||||||
Employee separation costs | 0.3 | 0.3 | — | ||||||||
Other restructuring costs | 0.8 | 0.8 | — | ||||||||
1.1 | 1.1 | — | |||||||||
$ | 30.8 | $ | 17.9 | $ | 12.9 |
|
July 31, 2016 | October 31, 2015 | ||||||
Cash and cash equivalents | $ | 10.3 | $ | 14.5 | |||
Trade accounts receivable, less allowance of $2.9 in 2016 and $3.2 in 2015 | 45.0 | 47.5 | |||||
Inventories | 50.8 | 44.7 | |||||
Properties, plants and equipment, net | 29.0 | 43.1 | |||||
Other assets | 41.7 | 36.8 | |||||
Total Assets | 176.8 | 186.6 | |||||
Accounts payable | 27.6 | 27.9 | |||||
Other liabilities | 43.2 | 50.6 | |||||
Total Liabilities | $ | 70.8 | $ | 78.5 |
|
July 31, 2016 | October 31, 2015 | ||||||
Amended Credit Agreement | $ | 205.7 | $ | 217.4 | |||
Senior Notes due 2017 | 300.3 | 300.7 | |||||
Senior Notes due 2019 | 246.7 | 246.0 | |||||
Senior Notes due 2021 | 219.8 | 219.4 | |||||
Amended Receivables Facility | 75.0 | 147.6 | |||||
Other debt | 11.4 | 15.8 | |||||
1,058.9 | 1,146.9 | ||||||
Less current portion | (300.3 | ) | (30.7 | ) | |||
Long-term debt | $ | 758.6 | $ | 1,116.2 |
|
July 31, 2016 | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Balance Sheet Location | |||||||||||||
Foreign exchange hedges | $ | — | $ | 0.5 | $ | — | $ | 0.5 | Prepaid expenses and other current assets | ||||||||
Foreign exchange hedges | — | (0.1 | ) | — | (0.1 | ) | Other current liabilities | ||||||||||
Insurance annuity | — | — | 20.1 | 20.1 | Other long-term assets | ||||||||||||
Total* | $ | — | $ | 0.4 | $ | 20.1 | $ | 20.5 |
October 31, 2015 | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Balance Sheet Location | |||||||||||||
Foreign exchange hedges | $ | — | $ | 0.3 | $ | — | $ | 0.3 | Prepaid expenses and other current assets | ||||||||
Foreign exchange hedges | — | (0.2 | ) | — | (0.2 | ) | Other current liabilities | ||||||||||
Insurance annuity | — | — | 20.1 | 20.1 | Other long-term assets | ||||||||||||
Total* | $ | — | $ | 0.1 | $ | 20.1 | $ | 20.2 |
* | The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of July 31, 2016 and October 31, 2015 approximate their fair values because of the short-term nature of these items and are not included in this table. |
July 31, 2016 | October 31, 2015 | ||||||
Senior Notes due 2017 | |||||||
Estimated fair value | $ | 307.2 | $ | 314.8 | |||
Senior Notes due 2019 | |||||||
Estimated fair value | 282.5 | 280.6 | |||||
Senior Notes due 2021 | |||||||
Estimated fair value | 266.9 | 258.7 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
Fair Value of Impairment | Valuation Technique | Unobservable Input | Range of Input Values | ||||||
(in millions) | |||||||||
July 31, 2016 | |||||||||
Impairment of Net Assets Held for Sale | $ | 37.6 | Broker Quote/ Indicative Bids | Indicative Bids | N/A | ||||
Impairment of Long Lived Assets | $ | 7.3 | Sales Value | Sales Value | N/A | ||||
July 31, 2015 | |||||||||
Impairment of Long Lived Assets - Land & Building | $ | 17.7 | Broker Quote/ Indicative Bids | Indicative Bids | N/A | ||||
Impairment of Long Lived Assets - Machinery & Equipment | $ | 3.0 | Sales Value | Sales Value | N/A |
|
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | 3.2 | $ | 4.1 | $ | 9.4 | $ | 12.4 | |||||||
Interest cost | 5.7 | 7.1 | 16.9 | 21.3 | |||||||||||
Expected return on plan assets | (8.3 | ) | (8.4 | ) | (24.9 | ) | (25.3 | ) | |||||||
Amortization of prior service cost, initial net asset and net actuarial gain | 2.8 | 3.7 | 8.6 | 11.0 | |||||||||||
Net periodic pension costs | $ | 3.4 | $ | 6.5 | $ | 10.0 | $ | 19.4 |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | |||||||
Interest cost | 0.2 | 0.1 | 0.4 | 0.5 | |||||||||||
Amortization of prior service cost and recognized actuarial gain | (0.4 | ) | (0.4 | ) | (1.2 | ) | (1.2 | ) | |||||||
Net periodic benefit for postretirement benefits | $ | (0.2 | ) | $ | (0.3 | ) | $ | (0.8 | ) | $ | (0.7 | ) |
|
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||
As of October 31, 2015 | 47,814 | $ | 139.1 | 29,028 | $ | (130.6 | ) | $ | 1,384.5 | $ | (377.4 | ) | $ | 1,015.6 | $ | 44.3 | $ | 1,059.9 | |||||||||||||||
Net income | 66.4 | 66.4 | 2.6 | 69.0 | |||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||
- foreign currency translation | (5.3 | ) | (5.3 | ) | (4.3 | ) | (9.6 | ) | |||||||||||||||||||||||||
- minimum pension liability adjustment, net of income tax expense | 3.5 | 3.5 | 3.5 | ||||||||||||||||||||||||||||||
Comprehensive income (loss) | 64.6 | 62.9 | |||||||||||||||||||||||||||||||
Out of period mark to redemption value of redeemable noncontrolling interest | (19.8 | ) | (19.8 | ) | (19.8 | ) | |||||||||||||||||||||||||||
Current period mark to redemption value of redeemable noncontrolling interest | (3.1 | ) | (3.1 | ) | (3.1 | ) | |||||||||||||||||||||||||||
Reclassification of redeemable noncontrolling interest | 1.2 | 1.2 | (22.8 | ) | (21.6 | ) | |||||||||||||||||||||||||||
Net income allocated to redeemable noncontrolling interests | (3.9 | ) | (3.9 | ) | |||||||||||||||||||||||||||||
Other | — | (0.4 | ) | (0.4 | ) | ||||||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders | (74.0 | ) | (74.0 | ) | (74.0 | ) | |||||||||||||||||||||||||||
Contributions from noncontrolling interest | — | 0.8 | 0.8 | ||||||||||||||||||||||||||||||
Dividends to noncontrolling interests | (3.9 | ) | (3.9 | ) | |||||||||||||||||||||||||||||
Treasury shares acquired | (110 | ) | 110 | (5.2 | ) | (5.2 | ) | (5.2 | ) | ||||||||||||||||||||||||
Restricted stock executives and directors | 47 | 1.3 | (47 | ) | 0.1 | 1.4 | 1.4 | ||||||||||||||||||||||||||
Long-term incentive shares issued | 41 | 1.0 | (41 | ) | 0.1 | 1.1 | 1.1 | ||||||||||||||||||||||||||
As of July 31, 2016 | 47,792 | $ | 141.4 | 29,050 | $ | (135.6 | ) | $ | 1,355.2 | $ | (379.2 | ) | $ | 981.8 | $ | 12.4 | $ | 994.2 |
Capital Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Greif, Inc. Equity | Non controlling interests | Total Equity | |||||||||||||||||||||||||||
Common Shares | Amount | Treasury Shares | Amount | ||||||||||||||||||||||||||||||
As of October 31, 2014 | 47,724 | $ | 135.5 | 29,118 | $ | (130.7 | ) | $ | 1,411.7 | $ | (274.4 | ) | $ | 1,142.1 | $ | 81.1 | $ | 1,223.2 | |||||||||||||||
Net income | 59.5 | 59.5 | (1.5 | ) | 58.0 | ||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||
- foreign currency translation | (87.7 | ) | (87.7 | ) | (21.8 | ) | (109.5 | ) | |||||||||||||||||||||||||
- Net reclassification of cash flow hedges to earnings, net of immaterial income tax benefit | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||
- minimum pension liability adjustment, net of income tax benefit of $2.4 million | 5.5 | 5.5 | 5.5 | ||||||||||||||||||||||||||||||
Comprehensive income (loss) | (22.6 | ) | (45.9 | ) | |||||||||||||||||||||||||||||
Acquisition of noncontrolling interest and other | (0.4 | ) | (0.4 | ) | (10.1 | ) | (10.5 | ) | |||||||||||||||||||||||||
Dividends paid to Greif, Inc. shareholders | (74.0 | ) | (74.0 | ) | (74.0 | ) | |||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | (4.0 | ) | (4.0 | ) | ||||||||||||||||||||||||||||
Stock options exercised | 10 | 0.2 | (10 | ) | — | 0.2 | 0.2 | ||||||||||||||||||||||||||
Restricted stock executives and directors | 31 | 1.4 | (31 | ) | — | 1.4 | 1.4 | ||||||||||||||||||||||||||
Long-term incentive shares issued | 49 | 2.0 | (49 | ) | 0.1 | 2.1 | 2.1 | ||||||||||||||||||||||||||
As of July 31, 2015 | 47,814 | $ | 139.1 | 29,028 | $ | (130.6 | ) | $ | 1,396.8 | $ | (356.5 | ) | $ | 1,048.8 | $ | 43.7 | $ | 1,092.5 |
Foreign Currency Translation | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | |||||||||
Balance as of October 31, 2015 | $ | (256.6 | ) | $ | (120.8 | ) | $ | (377.4 | ) | ||
Other Comprehensive Income (Loss) Before Reclassifications | (5.3 | ) | 3.5 | (1.8 | ) | ||||||
Current-period Other Comprehensive Income (Loss) | (5.3 | ) | 3.5 | (1.8 | ) | ||||||
Balance as of July 31, 2016 | $ | (261.9 | ) | $ | (117.3 | ) | $ | (379.2 | ) |
Foreign Currency Translation | Cash Flow Hedges | Minimum Pension Liability Adjustment | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance as of October 31, 2014 | $ | (144.5 | ) | $ | (0.1 | ) | $ | (129.8 | ) | $ | (274.4 | ) | |||
Other Comprehensive Income (Loss) Before Reclassifications | (87.7 | ) | — | 5.5 | (82.2 | ) | |||||||||
Amounts reclassified from Accumulated Other Comprehensive Loss | — | 0.1 | — | 0.1 | |||||||||||
Current-period Other Comprehensive Income (Loss) | (87.7 | ) | 0.1 | 5.5 | (82.1 | ) | |||||||||
Balance as of July 31, 2015 | $ | (232.2 | ) | $ | — | $ | (124.3 | ) | $ | (356.5 | ) |
|
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 596.8 | $ | 669.0 | $ | 1,721.3 | $ | 1,985.3 | |||||||
Paper Packaging & Services | 172.5 | 176.7 | 498.1 | 496.3 | |||||||||||
Flexible Products & Services | 69.9 | 79.2 | 219.0 | 249.3 | |||||||||||
Land Management | 5.8 | 5.1 | 17.6 | 17.3 | |||||||||||
Total net sales | $ | 845.0 | $ | 930.0 | $ | 2,456.0 | $ | 2,748.2 | |||||||
Operating profit (loss): | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 56.7 | $ | 29.5 | $ | 113.4 | $ | 75.5 | |||||||
Paper Packaging & Services | 19.1 | 21.5 | 64.4 | 76.7 | |||||||||||
Flexible Products & Services | (5.9 | ) | (9.7 | ) | (11.9 | ) | (23.8 | ) | |||||||
Land Management | 1.7 | 2.9 | 6.1 | 32.3 | |||||||||||
Total operating profit | $ | 71.6 | $ | 44.2 | $ | 172.0 | $ | 160.7 | |||||||
Depreciation, depletion and amortization expense: | |||||||||||||||
Rigid Industrial Packaging & Services | $ | 20.8 | $ | 21.8 | $ | 63.7 | $ | 70.2 | |||||||
Paper Packaging & Services | 8.0 | 6.8 | 23.6 | 21.5 | |||||||||||
Flexible Products & Services | 1.8 | 2.2 | 5.9 | 6.6 | |||||||||||
Land Management | 0.9 | 0.8 | 2.6 | 2.6 | |||||||||||
Total depreciation, depletion and amortization expense | $ | 31.5 | $ | 31.6 | $ | 95.8 | $ | 100.9 |
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales: | |||||||||||||||
United States | $ | 400.3 | $ | 431.5 | $ | 1,179.0 | $ | 1,269.7 | |||||||
Europe, Middle East and Africa | 318.9 | 337.3 | 905.9 | 979.5 | |||||||||||
Asia Pacific and other Americas | 125.8 | 161.2 | 371.1 | 499.0 | |||||||||||
Total net sales | $ | 845.0 | $ | 930.0 | $ | 2,456.0 | $ | 2,748.2 |
July 31, 2016 | October 31, 2015 | ||||||
Assets: | |||||||
Rigid Industrial Packaging & Services | $ | 1,978.4 | $ | 2,043.3 | |||
Paper Packaging & Services | 444.6 | 444.0 | |||||
Flexible Products & Services | 166.1 | 187.0 | |||||
Land Management | 337.4 | 335.2 | |||||
Total segments | 2,926.5 | 3,009.5 | |||||
Corporate and other | 257.4 | 306.2 | |||||
Total assets | $ | 3,183.9 | $ | 3,315.7 | |||
Properties, plants and equipment, net: | |||||||
United States | $ | 719.3 | $ | 734.1 | |||
Europe, Middle East and Africa | 314.3 | 335.4 | |||||
Asia Pacific and other Americas | 139.4 | 148.2 | |||||
Total properties, plants and equipment, net | $ | 1,173.0 | $ | 1,217.7 |
|
Redeemable Noncontrolling Interest | |||
Balance as of October 31, 2015 | $ | — | |
Reclassification of book value of noncontrolling interest | 12.4 | ||
Out-of period mark to redemption value* | 19.8 | ||
Current period mark to redemption value | 3.1 | ||
Repurchase of redeemable shareholder interest | (5.5 | ) | |
Redeemable Noncontrolling Interest share of Income/(Loss) and other | 3.9 | ||
Contributions from /(Dividends to) redeemable noncontolling interest and other | (1.4 | ) | |
Balance as of July 31, 2016 | $ | 32.3 |
* | The out-of-period mark to redemption value amounts were charged to retained earnings in the first quarter of 2016. |
Mandatorily Redeemable Noncontrolling Interest | |||
Balance as of October 31, 2015 | $ | — | |
Reclassification of book value of noncontrolling interest | 10.4 | ||
Out-of period reversal of cumulative income allocated to noncontrolling interest | (1.2 | ) | |
Out-of period mark to redemption value | 0.1 | ||
Current period mark to redemption value | 1.5 | ||
Repurchase of redeemable shareholder interest | (0.8 | ) | |
Balance as of July 31, 2016 | $ | 10.0 |
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