Document and Entity Information - shares |
3 Months Ended | |
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Jan. 31, 2019 |
Feb. 25, 2019 |
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Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GEF | |
Entity Registrant Name | GREIF INC | |
Entity Central Index Key | 0000043920 | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 26,232,799 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,007,725 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | |
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Jan. 31, 2019 |
Jan. 31, 2018 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 35.8 | $ 60.1 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | 5.2 | 38.4 |
Derivative financial instruments | (5.7) | 3.9 |
Minimum pension liabilities | (0.8) | (0.9) |
Other comprehensive income, net of tax | (1.3) | 41.4 |
Comprehensive income | 34.5 | 101.5 |
Comprehensive income attributable to noncontrolling interests | 7.1 | 4.0 |
Comprehensive income attributable to Greif, Inc. | $ 27.4 | $ 97.5 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
Jan. 31, 2019 |
Oct. 31, 2018 |
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Statement of Financial Position [Abstract] | ||
Allowance of trade accounts receivable | $ 5.7 | $ 4.2 |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Jan. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) begins on November 1 and ends on October 31 of the following year. Any references to the year 2019 or 2018, or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheets as of January 31, 2019 and October 31, 2018, the interim condensed consolidated statements of income and comprehensive income for the three months ended January 31, 2019 and 2018 and the interim condensed consolidated statements of cash flows for the three months ended January 31, 2019 and 2018 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling influence and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in the Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2018 (the “2018 Form 10-K”). Newly Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in ASC 605, "Revenue Recognition." This new revenue standard introduces a five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new revenue standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted the ASU all of the related amendments using the modified retrospective method on November 1, 2018. The adoption of the ASU and related amendments did not impact the Company’s financial position, results of operations, comprehensive income, cash flows or disclosures other than as discussed above and disclosed within Note 2 to the interim condensed consolidated financial statements. Additionally, no cumulative effect adjustment was recorded to opening retained earnings as of November 1, 2018. Based on current operations, the Company does not expect a material impact on an ongoing basis as a result of the adoption of the new standard. See Note 2 to the interim condensed consolidated financial statements for additional disclosures related to revenue from contracts with customers. In August of 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230)," which amends the classification of certain cash receipts and cash payments on the statement of cash flows. This update clarifies guidance on eight specific cash flow items. The ASU requires the beneficial interests obtained through securitization of financial assets be disclosed as a non-cash activity and cash receipts from beneficial interests be classified as cash inflows from investing activities. Under previous guidance, the Company classified cash receipts from beneficial interests in securitized receivables and cash payments resulting from debt prepayment or extinguishment as cash flows from operating activities. The amendments in this update are required to be applied using a retrospective approach, excluding amendments for which retrospective application is impractical. On November 1, 2018, the Company adopted the provisions of ASU 2016-15 on a retrospective basis with the exception of the Company's beneficial interests obtained through securitization of financial assets, for which the Company adopted this update on a prospective basis due to the impracticality of the retrospective basis. The adoption of this update did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows or disclosures for the periods presented. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)," which improves the accounting for income tax consequences of intra-entity transfers of assets other than inventory. This update requires transferring entities to recognize a current tax expense or benefit at the time of transfer and receiving entities to recognize a corresponding deferred tax asset or liability. The Company adopted this standard on November 1, 2018 using a modified retrospective approach. The adoption of this update resulted in a reclassification of approximately $15.1 million from "Prepaid Tax Assets" to "Retained Earnings", offset by the establishment of a deferred tax asset of $13.0 million for a net impact on retained earnings of $2.1 million as of November 1, 2018. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows or disclosures other than the impact discussed above. In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business," which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. The Company adopted this standard effective November 1, 2018 on a prospective basis. The Company will apply this guidance to the Company's acquisition of Caraustar Industries, Inc. ("Caraustar") and other applicable transactions after the adoption date. See Note 17 to the interim condensed consolidated financial statements for additional disclosures related to the acquisition of Caraustar. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows or disclosures other than the impact discussed above. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which amends the lease accounting and disclosure requirements in ASC 840, "Leases". The objective of this update is to increase transparency and comparability among organizations recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. This ASU will require the recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements (ASU 2018-11)," which permits companies to initially apply the new leases standard at the adoption date and not restate periods prior to adoption. The Company plans to adopt ASU 2018-11 on November 1, 2019 and as a result, will not adjust its comparative period financial information or make the new required lease disclosures for periods before the effective date. The Company is currently in the process of collecting and evaluating all of its leases, which primarily consist of equipment and real estate leases, as well as implementing a technology tool to assist with the accounting and reporting requirements of the new standard. The Company also plans to update its processes and controls around leases. The Company will adopt the standard effective November 1, 2019 and expects to elect certain available transitional practical expedients. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flows and disclosures, but does expect to recognize a significant liability and corresponding asset associated with in-scope operating leases. |
REVENUE |
3 Months Ended |
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Jan. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company generates substantially all of its revenue by providing its customers with industrial packaging products serving a variety of end markets. The Company may enter into fixed term sale agreements, including multi-year master supply agreements which outline the terms under which the Company does business. The Company also sells to certain customers solely based on purchase orders. As master supply agreements do not typically include fixed volumes, customers generally purchase products pursuant to purchase orders or other communications that are short-term in nature. The Company has concluded for the vast majority of its revenues, that its contracts with customers are either a purchase order or the combination of a purchase order with a master supply agreement. A performance obligation is considered an individual unit sold. Contracts or purchase orders with customers could include a single type of product or it could include multiple types or specifications of products. Regardless, the contracted price with the customer is agreed at the individual product level outlined in the customer contracts or purchase orders. The Company does not bundle prices. Negotiations with customers are based on a variety of factors including the level of anticipated contractual volume, geographic location, complexity of the product, key input costs and a variety of other factors. The Company has concluded that prices negotiated with each individual customer are representative of the stand-alone selling price of the product. The Company typically satisfies the obligation to provide packaging to customers at a point in time when control is transferred to customers. The point in time when control of goods is transferred is largely dependent on delivery terms. Revenue is recorded at the time of shipment for delivery terms designated shipping point. For sales transactions designated destination, revenue is recorded when the product is delivered to the customer’s delivery site. Purchases by the Company’s customers are generally manufactured and shipped with minimal lead time; therefore, performance obligations are generally settled shortly after manufacturing and shipment. The Company manufactures certain products that have no alternative use to the Company once they are printed or manufactured to customer specifications; however, the Company does not have an enforceable right to payment that includes a reasonable profit for custom products at all times in the manufacturing process, and therefore revenue is recognized at the point in time at which control transfers. As revenue recognition is dependent upon individual contractual terms, the Company will continue its evaluation of any new or amended contracts entered into, including contracts that the Company might assume as a result of acquisition activity. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for transferring goods or providing services. Standalone selling prices for each performance obligation are generally stated in the contract. When the Company offers variable consideration in the form of volume rebates to customers, it estimates the amount of revenue to which it is expected to be entitled to based on contract terms and historical experience of actual results, and includes the estimate in the transaction price, limited to the amount which is probable will not result in reversal of cumulative revenue recognized when the variable consideration is resolved. The Company provides prompt pay discounts to certain customers if invoices are paid within a predetermined period. Prompt payment discounts are treated as a reduction of revenue and are determinable within a short period of the sale. Contract Balances Contract liabilities relate primarily to prepayments received from the Company’s customers before revenue is recognized and volume rebates to customers. These amounts are included in other current liabilities in the interim condensed consolidated balance sheets. The Company does not have any material contract assets. Practical Expedients The Company’s contracts generally include standard commercial payment terms generally acceptable in each region. Customer payment terms are typically less than one year and as such, the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Costs to obtain a contract are generally immaterial, but the Company has elected the practical expedient to expense these costs as incurred if the amortization period of the capitalized cost would be one year or less. We have applied the practical expedient to exclude disclosure of remaining performance obligations as our contracts typically have a term of one year or less. Freight charged to customers is included in net sales in the income statement. For shipping and handling activities performed after a customer obtains control of the goods, the company has elected to account for these costs as activities to fulfill the promise to transfer the goods; therefore, these activities are not assessed as separate performance obligations. Disaggregation of Revenues Our contracts with customers are broadly similar in nature throughout our reportable segments, but the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic factors. See Note 15 to the interim condensed consolidated financial statements for additional disclosures of revenue disaggregated by geography for each reportable segment. |
SALE OF NON-UNITED STATES ACCOUNTS RECEIVABLE |
3 Months Ended |
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Jan. 31, 2019 | |
Receivables [Abstract] | |
SALE OF NON-UNITED STATES ACCOUNTS RECEIVABLE | SALE OF NON-UNITED STATES ACCOUNTS RECEIVABLE During the first quarter of 2019, as part of a larger capital structure alignment in preparation for the Company's acquisition of Caraustar, a parent-level guarantee was added to the European RPA and the Singapore RPA (as such terms are defined below). A parent-level guarantee nullifies legal isolation and true-sale accounting treatment because a parent-level guarantee is a form of continuing involvement. As a result, the $92.1 million amount of receivables outstanding under the European RPA and the Singapore RPA as of January 31, 2019 is reported as long-term debt in the interim condensed consolidated balance sheet because the Company intends to refinance these obligations on a long-term basis and has the intent and ability to consummate a long-term refinancing by exercising the renewal option in the respective agreement or entering into new financing arrangements. In 2012, Cooperage Receivables Finance B.V. (the “Main SPV”) and Greif Coordination Center BVBA, an indirect wholly owned subsidiary of Greif, Inc. (“Seller”), entered into the Nieuw Amsterdam Receivables Purchase Agreement (the “European RPA”) with affiliates of a major international bank (the “Purchasing Bank Affiliates”). On April 18, 2017, the Main SPV and Seller amended and extended the term of the existing European RPA. Under the European RPA, as amended, the maximum amount of receivables that may be sold and outstanding under the European RPA at any time is €100.0 million ($114.3 million as of January 31, 2019). Under the terms of the European RPA, the Company has the ability to loan excess cash to the Purchasing Bank Affiliates in the form of a subordinated loan receivable. Under the terms of the European RPA, the Company has agreed to sell trade receivables meeting certain eligibility requirements that the Seller had purchased from other indirect wholly-owned subsidiaries of the Company under a factoring agreement. Prior to November 1, 2018, the structure of the transactions provided for a legal true sale, on a revolving basis, of the receivables transferred from the Company's various subsidiaries to the respective Purchasing Bank Affiliates. The purchaser funds an initial purchase price of a certain percentage of eligible receivables based on a formula, with the initial purchase price approximating 75 percent to 90 percent of eligible receivables. The remaining deferred purchase price is settled upon collection of the receivables. In October 2007, Greif Singapore Pte. Ltd., an indirect wholly-owned subsidiary of Greif, Inc., entered into the Singapore Receivable Purchase Agreement (the “Singapore RPA”) with a major international bank. The maximum amount of aggregate receivables that may be financed under the Singapore RPA is 15.0 million Singapore Dollars ($11.1 million as of January 31, 2019). Under the terms of the Singapore RPA, the Company has agreed to sell trade receivables in exchange for an initial purchase price of approximately 90 percent of the eligible receivables. The remaining deferred purchase price is settled upon collection of the receivables. Prior to November 1, 2018, the Company removed from accounts receivable the amount of proceeds received from the initial purchase price since they met the applicable criteria of ASC 860, “Transfers and Servicing,” and the Company continued to recognize the deferred purchase price in other current assets or other current liabilities on the Company’s interim condensed consolidated balance sheets, as appropriate. The receivables were sold on a non-recourse basis with the total funds in the servicing collection accounts pledged to the banks between settlement dates. The cash initially received, along with the deferred purchase price, related to the sale or ultimate collection of the underlying receivables and was not subject to significant other risks given their short term nature. Therefore, the Company reflected all cash flows under the accounts receivable sales programs as operating cash flows on the Company’s interim condensed consolidated statements of cash flows. The Company performs collections and administrative functions on the receivables, related to the both the European RPA and Singapore RPA, similar to the procedures it uses for collecting all of its receivables. The servicing liability for these receivables is not material to the interim condensed consolidated financial statements. |
ASSETS AND LIABILITIES HELD FOR SALE AND DISPOSALS OF PROPERTIES, PLANTS AND EQUIPMENT, NET |
3 Months Ended |
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Jan. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS AND LIABILITIES HELD FOR SALE AND DISPOSALS OF PROPERTIES, PLANTS AND EQUIPMENT, NET | ASSETS AND LIABILITIES HELD FOR SALE AND DISPOSALS OF PROPERTIES, PLANTS AND EQUIPMENT, NET As of January 31, 2019, there were two asset groups within the Rigid Industrial Packaging & Services segment classified as assets and liabilities held for sale and one asset group within the Paper Packaging & Services segment classified as assets held for sale. The assets and liabilities held for sale are being marketed for sale, and it is the Company’s intention to complete the sales within twelve months following their initial classification as held for sale. As of October 31, 2018, there were two asset groups in the Rigid Industrial Packaging & Services segment classified as assets held for sale and one asset group within the Paper Packaging & Services segment classified as assets held for sale. For the three months ended January 31, 2019, the Company recorded a gain on disposal of properties, plants and equipment, net of $0.9 million. This included disposals of assets in the Rigid Industrial Packaging & Services segment that resulted in gains of $0.3 million, disposals of assets in the Paper Packaging & Services segment that resulted in gains of $0.1 million, and special use property sales that resulted in gains of $0.5 million in the Land Management segment. For the three months ended January 31, 2018, the Company recorded a gain on disposal of properties, plants and equipment, net of $4.6 million. This included disposals of assets in the Rigid Industrial Packaging & Services segment that resulted in gains of $3.4 million and special use property sales that resulted in gains of $1.2 million in the Land Management segment. |
GOODWILL AND OTHER INTANGIBLE ASSETS |
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GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the changes in the carrying amount of goodwill by segment for the three month period ended January 31, 2019:
The following table summarizes the carrying amount of net other intangible assets by class as of January 31, 2019 and October 31, 2018:
Amortization expense for the three months ended January 31, 2019 and 2018 was $3.7 million and $3.8 million, respectively. Amortization expense for the next five years is expected to be $14.6 million in 2019, $14.1 million in 2020, $12.5 million in 2021, $8.7 million in 2022 and $7.5 million in 2023. Definite lived intangible assets for the periods presented are subject to amortization and are being amortized using the straight-line method over periods that are contractually, legally determined, or over the period a market participant would benefit from the asset. |
RESTRUCTURING CHARGES |
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RESTRUCTURING CHARGES | RESTRUCTURING CHARGES The following is a reconciliation of the beginning and ending restructuring reserve balances for the three month period ended January 31, 2019:
The focus for restructuring activities in 2019 is to continue to rationalize operations and close underperforming assets in the Rigid Industrial Packaging & Services and Flexible Products & Services segments. During the three months ended January 31, 2019, the Company recorded restructuring charges of $3.7 million, as compared to $4.1 million of restructuring charges recorded during the three months ended January 31, 2018. The restructuring activity for the three months ended January 31, 2019 consisted of $3.5 million in employee separation costs and $0.2 million in other restructuring costs. The following is a reconciliation of the total amounts expected to be incurred from approved restructuring plans or plans that are being formulated and have not been announced as of the date of this Form 10-Q. Remaining amounts expected to be incurred are $13.2 million as of January 31, 2019 compared to $18.6 million as of October 31, 2018. The change was due to the costs incurred or otherwise settled, offset by the formulations of new plans during the period.
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CONSOLIDATION OF VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | CONSOLIDATION OF VARIABLE INTEREST ENTITIES The Company evaluates whether an entity is a variable interest entity (“VIE”) whenever reconsideration events occur and performs reassessments of all VIEs quarterly to determine if the primary beneficiary status is appropriate. The Company consolidates VIEs for which it is the primary beneficiary. If the Company is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity or cost methods of accounting, as appropriate. When assessing the determination of the primary beneficiary, the Company considers all relevant facts and circumstances, including: the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. Paper Packaging Joint Venture In 2018, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Paper Packaging JV” or "PPS VIE") with a third party. The Paper Packaging JV has been consolidated into the operations of the Company since its formation date of April 20, 2018. The Paper Packaging JV is deemed to be a VIE as the equity investors at risk, as a group, lack the characteristics of a controlling financial interest. The structure of the Paper Packaging JV has governing provisions that, for purposes of GAAP, are the functional equivalent of a limited partnership whereby the Company is the managing member that makes all the decisions related to the activities that most significantly affect the economic performance of the PPS VIE. In addition, the third party does not have any substantive kick-out rights or substantive participating rights in the Paper Packaging JV. The major factor that led to the conclusion that the Paper Packaging JV is a VIE was that all limited partnerships are considered to be VIEs unless the limited partners have substantive kick-out rights or substantive participating rights. As of January 31, 2019, the Paper Packaging JV’s net assets consist of cash and cash equivalents of $2.1 million and properties, plants, and equipment, net of $7.9 million compared to cash and cash equivalents of $2.8 million and properties, plants, and equipment, net of $7.2 million as of October 31, 2018. For the three months ended January 31, 2019, there is no net income (loss) as the PPS JV is in the startup phase and has not yet commenced operations. Significant Nonstrategic Timberland Transactions In 2005, the Company sold certain timber properties to Plum Creek Timberlands, L.P. (“Plum Creek”) in a series of transactions that included the creation of two separate legal entities that are now consolidated as separate VIEs. One is an indirect subsidiary of Plum Creek (the “Buyer SPE”), and the other is STA Timber LLC, an indirect wholly owned subsidiary of the Company (“STA Timber”). As of January 31, 2019 and October 31, 2018, consolidated assets of the Buyer SPE consisted of $50.9 million of restricted bank financial instruments which are expected to be held to maturity. For both of the three month periods ended January 31, 2019 and 2018, Buyer SPE recorded interest income of $0.6 million. As of January 31, 2019 and October 31, 2018, STA Timber had consolidated long-term debt of $43.3 million. For both of the three month periods ended January 31, 2019 and 2018, STA Timber recorded interest expense of $0.6 million. The intercompany borrowing arrangement between the two VIEs is eliminated in consolidation. STA Timber is exposed to credit-related losses in the event of nonperformance by an issuer of a deed of guarantee in the transaction. Flexible Packaging Joint Venture In 2010, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Flexible Packaging JV” or “FPS VIE”) with Dabbagh Group Holding Company Limited and one of its subsidiaries, originally National Scientific Company Limited and now Gulf Refined Packaging for Industrial Packaging Company LTD. The Flexible Packaging JV owns the operations in the Flexible Products & Services segment. The Flexible Packaging JV has been consolidated into the operations of the Company as of its formation date in 2010. The Flexible Packaging JV is deemed to be a VIE since the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support. The major factors that led to the conclusion that the Company was the primary beneficiary of this VIE were that (1) the Company has the power to direct the most significant activities due to its ability to direct the operating decisions of the FPS VIE, which power is derived from the significant CEO discretion over the operations of the FPS VIE combined with the Company’s sole and exclusive right to appoint the CEO of the FPS VIE, and (2) the significant variable interest through the Company’s equity interest in the FPS VIE. All entities contributed to the Flexible Packaging JV were existing businesses acquired by one of the Company's indirect subsidiaries that were reorganized under Greif Flexibles Asset Holding B.V. and Greif Flexibles Trading Holding B.V. The following table presents the Flexible Packaging JV total net assets:
Net income attributable to the noncontrolling interest in the Flexible Packaging JV for the three months ended January 31, 2019 and 2018 was $3.3 million and $1.1 million, respectively. Non-United States Accounts Receivable VIE As further described in Note 3 to the interim condensed consolidated financial statements, Cooperage Receivables Finance B.V. is a party to the European RPA. Cooperage Receivables Finance B.V. is deemed to be a VIE since this entity is not able to satisfy its liabilities without the financial support from the Company. While this entity is a separate and distinct legal entity from the Company and no ownership interest in this entity is held by the Company, the Company is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE. As a result, Cooperage Receivables Finance B.V. has been consolidated into the operations of the Company. |
LONG-TERM DEBT |
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LONG-TERM DEBT | LONG-TERM DEBT Long-term debt is summarized as follows:
2017 Credit Agreement Since November 2016, the Company and certain of its international subsidiaries have been borrowers under a senior secured credit agreement (the “2017 Credit Agreement”) with a syndicate of financial institutions. The 2017 Credit Agreement replaced, in its entirety the Company's prior $1.0 billion senior secured credit agreement. The total available borrowing under the 2017 Credit Agreement was $693.7 million as of January 31, 2019, which has been reduced by $12.9 million for outstanding letters of credit, all of which was then available without violating covenants. The 2017 Credit Agreement provides for an $800.0 million revolving multicurrency credit facility expiring November 3, 2021, and a $300.0 million term loan, with quarterly principal installments that commenced on April 30, 2017, through maturity on November 3, 2021, both with an option to add an aggregate of $550.0 million to the facilities with the agreement of the lenders. The Company used the term loan on February 1, 2017, to repay the principal of the Company’s $300.0 million 6.75% Senior Notes that matured on that date. The revolving credit facility is available to fund ongoing working capital and capital expenditure needs, for general corporate purposes, and to finance acquisitions. Interest is based on either a Eurodollar rate or a base rate that resets periodically plus a calculated margin amount. On November 3, 2016, a total of approximately $208.0 million was used to pay the obligations outstanding under the prior credit agreement in full and certain costs and expenses incurred in connection with the 2017 Credit Agreement. The financing costs associated with the 2017 Credit Agreement totaled $3.9 million as of January 31, 2019, and are recorded as a direct deduction from the long-term debt liability. The 2017 Credit Agreement contains certain covenants, which include financial covenants that require the Company to maintain a certain leverage ratio and an interest coverage ratio. The leverage ratio generally requires that at the end of any fiscal quarter the Company will not permit the ratio of (a) its total consolidated indebtedness, to (b) the Company's net income plus depreciation, depletion, and amortization, interest expense (including capitalized interest), and income taxes, minus certain extraordinary gains and non-recurring gains (or plus certain extraordinary losses and non-recurring losses) and plus or minus certain other items for the preceding twelve months (as used in this paragraph only, "Adjusted EBITDA") to be greater than 4.00 to 1.00 (or 3.75 to 1.00, during any collateral release period). The interest coverage ratio generally requires that at the end of any fiscal quarter the Company will not permit the ratio of (a) Adjusted EBITDA, to (b) the consolidated interest expense to the extent paid or payable, to be less than 3.00 to 1.00, during the applicable preceding twelve month period. The terms of the 2017 Credit Agreement limit the Company's ability to make "restricted payments", which include dividends and purchases, redemptions and acquisitions of equity interests of the Company. The repayment of this facility is secured by a security interest in the personal property of the Company and the personal property of certain United States subsidiaries, including equipment and inventory and certain intangible assets, as well as a pledge of the capital stock of substantially all of the Company's United States subsidiaries and is secured, in part, by the capital stock of the non-U.S. borrowers. However, in the event that the Company receives and maintains an investment grade rating from either Moody's Investors Service, Inc. or Standard & Poor's Corporation, the Company may request the release of such collateral. The payment of outstanding principal under the 2017 Credit Agreement and accrued interest thereon may be accelerated and become immediately due and payable upon the Company's default in its payment or other performance obligations or its failure to comply with the financial and other covenants in the 2017 Credit Agreement, subject to applicable notice requirements and cure periods as provided in the 2017 Credit Agreement. As of January 31, 2019, $363.4 million was outstanding under the 2017 Credit Agreement. The current portion of the 2017 Credit Agreement was $18.8 million and the long-term portion was $344.6 million. The weighted average interest rate for borrowings under the 2017 Credit Agreement was 3.44% for the three months ended January 31, 2019. The actual interest rate for borrowings under the 2017 Credit Agreement was 3.37% as of January 31, 2019. See Note 17 to the interim condensed consolidated financial statements for information concerning the Company’s amended and restated senior secured credit agreement, dated February 11, 2019, which amended, restated and replaced the 2017 Credit Agreement. Senior Notes due 2019 On July 28, 2009, the Company issued $250.0 million of 7.75% Senior Notes due August 1, 2019 (the "Senior Notes due 2019"). Interest on these Senior Notes is payable semi-annually. The financing costs associated with the Senior Notes due 2019 totaled $0.2 million as of January 31, 2019, and are recorded as a direct deduction from the long-term liability. The $249.4 million outstanding balance as of January 31, 2019 is reported in long-term debt in the interim condensed consolidated balance sheets because the Company intends to refinance the obligation on a long-term basis by utilizing financing available under the 2017 Credit Agreement or entering into a new financial arrangement. See Note 17 to the interim condensed consolidated financial statements for information concerning the Company’s intention is to redeem its Senior Notes due August 1, 2019. Senior Notes due 2021 On July 15, 2011, Greif, Inc.’s wholly-owned subsidiary, Greif Nevada Holdings, Inc., S.C.S. issued €200.0 million of 7.375% Senior Notes due July 15, 2021. These Senior Notes are fully and unconditionally guaranteed on a senior basis by Greif, Inc. Interest on these Senior Notes is payable semi-annually. United States Trade Accounts Receivable Credit Facility On September 26, 2018, the Company amended and restated its existing subsidiary receivables facility in the United States to establish a $150.0 million United States Trade Accounts Receivable Credit Facility (the "U.S. Receivables Facility") with a financial institution. The U.S. Receivables Facility matures on September 26, 2019. The $150.0 million outstanding balance under the U.S. Receivables Facility as of January 31, 2019 is reported in long-term debt in the interim condensed consolidated balance sheets because the Company intends to refinance the obligation on a long-term basis and has the intent and ability to consummate a long-term refinancing by exercising the renewal option in the agreement or entering into a new financing arrangement. The financing costs associated with the U.S. Receivables Facility are $0.1 million as of January 31, 2019, and are recorded as a direct deduction from the long-term debt liability. International Trade Accounts Receivable Credit Facilities See Note 3 to the interim condensed consolidated financial statements for additional disclosures. |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of January 31, 2019 and October 31, 2018:
The carrying amounts of cash and cash equivalents, trade accounts receivable, accounts payable, current liabilities and short-term borrowings as of January 31, 2019 and October 31, 2018 approximate their fair values because of the short-term nature of these items and are not included in this table. Interest Rate Derivatives The Company has various borrowing facilities which charge interest based on the one month U.S. dollar LIBOR rate plus an interest spread. During the first quarter of 2019, the Company entered into four forward interest rate swaps relating to the debt incurred subsequent to the end of the quarter. See Note 17 to the interim condensed consolidated financial statements for additional disclosures. These four forward interest rate swaps have a total notional amount of $866.7 million and are effective March 11, 2019. The Company will begin to receive variable rate interest payments based upon one month U.S. dollar LIBOR and in return is obligated to pay interest at a weighted-average interest rate of 2.50%. During the first quarter of 2017, the Company also entered into a forward interest rate swap with a notional amount of $300.0 million. As of February 1, 2017, the Company began to receive variable rate interest payments based upon one month U.S. dollar LIBOR and in return was obligated to pay interest at a fixed rate of 1.19% plus an interest spread. This effectively converted the borrowing rate on $300.0 million of debt from a variable rate to a fixed rate. These derivatives are designated as cash flow hedges for accounting purposes. Accordingly, the gain or loss on these derivative instruments are reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transactions and in the same period during which the hedged transactions affect earnings. See Note 14 to the interim condensed consolidated financial statements for additional disclosures of the gain or loss included within other comprehensive income. The assumptions used in measuring fair value of these interest rate derivatives are considered level 2 inputs, which are based upon observable market rates, including LIBOR and interest paid based upon a designated fixed rate over the life of the swap agreements. Gains reclassified to earnings under these contracts were $0.9 million for the three months ended January 31, 2019. Losses reclassified to earnings under these contracts were $0.2 million for the three months ended January 31, 2018. A derivative gain of $3.9 million, based upon interest rates at January 31, 2019, is expected to be reclassified from accumulated other comprehensive income to earnings in the next twelve months. Foreign Exchange Hedges The Company conducts business in various international currencies and is subject to risks associated with changing foreign exchange rates. The Company’s objective is to reduce volatility associated with foreign exchange rate changes. Accordingly, the Company enters into various contracts that change in value as foreign exchange rates change to protect the value of certain existing foreign currency assets and liabilities, commitments and anticipated foreign currency cash flows. As of January 31, 2019, the Company had outstanding foreign currency forward contracts in the notional amount of $185.8 million ($194.4 million as of October 31, 2018). Adjustments to fair value are recognized in earnings, offsetting the impact of the hedged profits. The assumptions used in measuring fair value of foreign exchange hedges are considered level 2 inputs, which were based on observable market pricing for similar instruments, principally foreign exchange futures contracts. Realized gains (losses) recorded in other expense, net under fair value contracts were $0.8 million and $(0.5) million for the three months ended January 31, 2019, and 2018, respectively. The Company recognized in other expense, net an unrealized net gain (loss) of $3.0 million and $(3.1) million during the three months ended January 31, 2019 and 2018, respectively. Cross Currency Swap The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. On March 6, 2018, the Company entered into a cross currency interest rate swap agreement that synthetically swaps $100.0 million of fixed rate debt to Euro denominated fixed rate debt at a rate of 2.35%. The agreement is designated as a net investment hedge for accounting purposes and will mature on March 6, 2023. Accordingly, the gain or loss on this derivative instrument is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted or liquidated. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the interim condensed consolidated statements of income. For the three months ended January 31, 2019, gains recorded in interest expense, net under the cross currency swap agreement were $0.6 million. See Note 14 to the interim condensed consolidated financial statements for additional disclosure of the gain or loss included within other comprehensive income. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Euro to United States Dollar exchange rate market. Other Financial Instruments The fair values of the Company’s 2017 Credit Agreement and the Receivables Facility do not materially differ from carrying value as the Company’s cost of borrowing is variable and approximates current borrowing rates. The fair values of the Company’s long-term obligations are estimated based on either the quoted market prices for the same or similar issues or the current interest rates offered for the debt of the same remaining maturities, which are considered level 2 inputs in accordance with ASC Topic 820, "Fair Value Measurements and Disclosures." The following table presents the estimated fair values of the Company’s Senior Notes and Assets held by special purpose entities:
Non-Recurring Fair Value Measurements The Company recognized asset impairment charges of $2.1 million during the three months ended January 31, 2019 and $2.9 million for the three months ended January 31, 2018. The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the three months ended January 31, 2019 and 2018:
Long-Lived Assets As a result of the Company measuring long-lived assets at fair value on a non-recurring basis, the Company recorded no impairment charges related to properties, plants and equipment, net during the three months ended January 31, 2019 and $2.9 million during the three months ended January 31, 2018. The assumptions used in measuring fair value of long-lived assets are considered level 3 inputs, which include bids received from third parties, recent purchase offers, market comparable information and discounted cash flows based on assumptions that market participants would use. Reclassification of Assets and Liabilities Held for Sale During the three month period ended January 31, 2019, one asset group was reclassified to assets and liabilities held for sale, resulting in a $2.1 million impairment to net realizable value. The assumptions used in measuring fair value of assets and liabilities held for sale are considered level 3 inputs, which include recent purchase offers, market comparables and/or data obtained from commercial real estate brokers. |
INCOME TAXES |
3 Months Ended |
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Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”), which went into law on December 22, 2017, has significantly changed U.S. tax law by, among other items, (1) lowering the corporate income tax rate from 35% to 21%, effective January 1, 2018; (2) allowing for the acceleration of expensing of qualified business assets; (3) requiring companies to pay a one-time transition tax on certain unremitted earnings of foreign subsidiaries that may be payable over eight years; (4) adding a new limitation on deductible interest expense; (5) adding limitations on the deductibility of certain executive compensation; and (6) eliminating U.S. federal income tax on dividends from foreign subsidiaries. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Bulletin also provides for a measurement period that should not extend beyond one year from the U.S. Tax Reform enactment date. In accordance with the Bulletin, as of October 31, 2018, the Company recorded a tax benefit related to the revaluation of deferred tax assets and liabilities of $72.0 million and a provisional tax expense for the one-time transition tax liability of $52.8 million. As a result of additional analysis, as of January 31, 2019, the Company revised its calculation for the one-time transition tax to $55.1 million. Further, in this quarter the provisions of the U.S. Tax Reform Act caused the Company to re-evaluate its permanent reinvestment assertion, concluding that the unremitted earnings and profits of certain non-U.S. subsidiaries and affiliates will no longer be permanently reinvested. These changes in assertion required the recognition of a tax benefit of $1.7 million due to Section 986(c) currency losses. The Company has recognized a total net tax benefit of $18.6 million related to these tax reform items. The Tax Reform Act also subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries and allows a benefit for foreign-derived intangible income (“FDII”). These provisions of tax reform are first effective for the Company’s current year. The Company has made sufficient progress in its calculation to reasonably estimate the tax impact related to GILTI and FDII and these estimates are included as period costs in the estimated annual effective tax rate. We consider the tax expense recorded for the Tax Reform Act to be complete at this time. However, it is possible that additional legislation, regulations and/or guidance may be issued in the future that may result in additional adjustments to the tax expense recorded. We will continue to monitor and assess the impact of any new developments. Income tax expense for the quarter and year to date was computed in accordance with ASC 740-270 "Income Taxes - Interim Reporting". Under this method, losses from jurisdictions for which a valuation allowance has been provided have not been included in the amount to which the ASC 740-270 rate was applied. Income tax expense of the Company fluctuates primarily due to changes in losses and income from jurisdictions for which a valuation allowance has been provided, the timing of recognition of the related tax expense under ASC 740-270, and the impact of discrete items in the respective quarter. For the three months ended January 31, 2019, income tax expense was $20.0 million; whereas, for the three months ended January 31, 2018 the income tax benefit was $15.6 million. The income tax benefit recorded in the first quarter of 2018 reflected a net tax benefit resulting from the re-measurement of deferred tax assets and liabilities, reduced by the increase in the tax expense related to the one-time transition tax liability. |
POST RETIREMENT BENEFIT PLANS |
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POST RETIREMENT BENEFIT PLANS | POST RETIREMENT BENEFIT PLANS The components of net periodic pension cost include the following:
Contributions, including benefits paid directly by the Company, to the pension plans were $3.7 million and $6.8 million, in the three months ended January 31, 2019 and 2018, respectively. The components of net periodic cost for post-retirement benefits include the following:
The components of net periodic pension cost and net periodic benefit for post-retirement benefits, other than the service cost components, are included in the line item "Other (income) expense, net" in the interim condensed consolidated statements of income. |
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES |
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Jan. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES | CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES Litigation-related Liabilities The Company may become involved from time-to-time in litigation and regulatory matters incidental to its business, including governmental investigations, enforcement actions, personal injury claims, product liability, employment health and safety matters, commercial disputes, intellectual property matters, disputes regarding environmental clean-up costs, litigation in connection with acquisitions and divestitures, and other matters arising out of the normal conduct of its business. The Company intends to vigorously defend itself in such litigation. The Company does not believe that the outcome of any pending litigation will have a material adverse effect on its interim condensed consolidated financial statements. The Company may accrue for contingencies related to litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews contingencies to determine whether its accruals are adequate. The amount of ultimate loss may differ from these estimates. The Company is currently involved in legal proceedings outside of the United States related to various wrongful termination lawsuits filed by former employees and benefit claims filed by some existing employees of the Company's Flexible Products & Services segment. The lawsuits include claims for severance for employment periods prior to the Company’s ownership in the business. As of January 31, 2019 and October 31, 2018, the estimated liability recorded related to these matters were $1.6 million and $2.0 million, respectively. The estimated liability has been determined based on the number of active cases and the settlements and rulings on previous cases. It is reasonably possible the estimated liability could increase if additional cases are filed or adverse rulings are made. Since 2017, three reconditioning facilities in the Milwaukee, Wisconsin area that are owned by Container Life Cycle Management LLC ("CLCM"), the Company’s U.S. reconditioning joint venture company, have been subject to investigations conducted by federal, state and local governmental agencies concerning, among other matters, potential violations of environmental laws and regulations. As a result of these investigations, the United States Environmental Protection Agency (“U.S. EPA”) and the Wisconsin Department of Natural Resources (“WDNR”) have issued notices of violations to the Company and CLCM regarding violations of certain federal and state environmental laws and regulations. The remedies being sought in these proceedings include compliance with the applicable environmental laws and regulations as being interpreted by the U.S. EPA and WDNR and monetary sanctions. The Company has cooperated with the governmental agencies in these investigations and proceedings. As of March 1, 2019, no material citations have been issued or material fines assessed with respect to any violation of environmental laws and regulations. Since these proceedings are in their early stages, the Company is unable to predict the outcome of these proceedings or estimate a range of reasonable possible monetary sanctions or costs associated with any remedial actions that may be required or requested by the U.S. EPA or WDNR. In addition, on November 8, 2017, the Company, CLCM and other parties were named as defendants in a punitive class action lawsuit filed in Wisconsin state court concerning one of CLCM’s Milwaukee reconditioning facilities. The plaintiffs are alleging that odors from this facility have invaded their property and are interfering with the use and enjoyment of their property and causing damage to the value of their property. Plaintiffs are seeking compensatory and punitive damages, along with their legal fees. The Company and CLCM are vigorously defending themselves in this lawsuit. The lawsuit is at an early stage. The Company is unable to predict the outcome of this lawsuit or estimate a range of reasonably possible losses. Environmental Reserves As of January 31, 2019 and October 31, 2018, environmental reserves were $6.3 million and $6.8 million, respectively, and were recorded on an undiscounted basis. These reserves are principally based on environmental studies and cost estimates provided by third parties, but also take into account management estimates. The estimated liabilities are reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of relevant costs. For sites that involve formal actions subject to joint and several liabilities, these actions have formal agreements in place to apportion the liability. As of January 31, 2019 and October 31, 2018, environmental reserves of the Company included $3.6 million and $3.7 million, respectively, for various European drum facilities acquired from Blagden and Van Leer; $0.2 million and $0.2 million, respectively, for its various container life cycle management and recycling facilities acquired in 2011 and 2010; $0.5 million and $0.9 million, respectively, for remediation of sites no longer owned by the Company; and $2.0 million and $2.0 million, respectively, for various other facilities around the world. The Company’s exposure to adverse developments with respect to any individual site is not expected to be material. Although environmental remediation could have a material effect on results of operations if a series of adverse developments occur in a particular quarter or year, the Company believes that the chance of a series of adverse developments occurring in the same quarter or year is remote. Future information and developments will require the Company to continually reassess the expected impact of these environmental matters. |
EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE The Company has two classes of common stock and, as such, applies the “two-class method” of computing earnings per share (“EPS”) as prescribed in ASC 260, “Earnings Per Share.” In accordance with this guidance, earnings are allocated in the same fashion as dividends would be distributed. Under the Company’s articles of incorporation, any distribution of dividends in any year must be made in proportion of one cent a share for Class A Common Stock to one and one-half cents a share for Class B Common Stock, which results in a 40% to 60% split to Class A and B shareholders, respectively. In accordance with this, earnings are allocated first to Class A and Class B Common Stock to the extent that dividends are actually paid and the remainder is allocated assuming all of the earnings for the period have been distributed in the form of dividends. The Company calculates EPS as follows:
The following table provides EPS information for each period, respectively:
The Class A Common Stock has no voting rights unless four quarterly cumulative dividends upon the Class A Common Stock are in arrears. The Class B Common Stock has full voting rights. There is no cumulative voting for the election of directors. Common Stock Repurchases The Board of Directors has authorized the Company to repurchase shares of the Company's Class A Common Stock or Class B Common Stock or any combination of the foregoing. As of January 31, 2019, the remaining amount of shares that may be repurchased under this authorization was 4,703,487. During 2017, the Stock Repurchase Committee authorized and the Company executed the repurchase of 2,000 shares of Class B Common Stock. There have been no other shares repurchased under this program from November 1, 2017 through January 31, 2019. The following table summarizes the Company’s Class A and Class B common and treasury shares as of the specified dates:
The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:
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EQUITY AND COMPREHENSIVE INCOME (LOSS) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY AND COMPREHENSIVE INCOME (LOSS) | EQUITY AND COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in equity from October 31, 2018 to January 31, 2019 (Dollars in millions, shares in thousands):
The following table summarizes the changes in equity from October 31, 2017 to January 31, 2018 (Dollars in millions, shares in thousands):
The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2019:
The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2018:
The components of accumulated other comprehensive income (loss) above are presented net of tax, as applicable. |
BUSINESS SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has eight operating segments, which are aggregated into four reportable business segments: Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services; and Land Management. The Company’s reportable business segments offer different products and services. The accounting policies of the reportable business segments are substantially the same as those described in the “Basis of Presentation and Summary of Significant Accounting Policies” note in the 2018 Form 10-K. The following table presents net sales disaggregated by geographic area for each reportable segment for the three months ended January 31, 2019:
The following table presents net sales disaggregated by geographic area for each reportable segment for the three months ended January 31, 2018:
The following segment information is presented for the periods indicated:
The following table presents total assets by segment and total properties, plants and equipment, net by geographic area:
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REDEEMABLE NONCONTROLLING INTERESTS |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS Mandatorily Redeemable Noncontrolling Interests The terms of the joint venture agreement for one joint venture within the Rigid Industrial Packaging & Services segment include mandatory redemption by the Company, in cash, of the noncontrolling interest holders’ equity at a formulaic price after the expiration of a lockout period specific to each noncontrolling interest holder. The redemption features cause the interest to be classified as a mandatorily redeemable instrument under the accounting guidance, and this interest is included at the current redemption value each period in long-term or short-term liabilities of the Company, as applicable. The impact of marking to redemption value at each period end is recorded in interest expense. The Company has a contractual obligation to redeem the outstanding equity interest of each remaining partner in 2021 and 2022, respectively. The following table summarizes the change in mandatorily redeemable noncontrolling interest for the three months ended January 31, 2019:
Redeemable Noncontrolling Interests Redeemable noncontrolling interests related to two joint venture within the Paper Packaging & Services segment and one joint venture within the Rigid Industrial Packaging & Services segment are held by the respective noncontrolling interest owners. The holders of these interests share in the profits and losses of these entities on a pro rata basis with the Company. However, the noncontrolling interest owners have the right to put all or a portion of those noncontrolling interests to the Company at a formulaic price after a set period of time, specific to each agreement. On November 15, 2018, one of the noncontrolling interest owners related to one of the Paper Packaging & Services joint ventures exercised their put option for all of their ownership interest. The Company made a payment to the noncontrolling interest owner in the first quarter of 2019 for approximately $10.1 million. Also in the first quarter of 2019, the Company entered into a Stock Purchase Agreement with another noncontrolling interest owner related to the same Paper Packaging & Services joint venture, pursuant to which the owner received a $1.8 million payment. Redeemable noncontrolling interests are reflected in the interim condensed consolidated balance sheets at redemption value. The following table summarizes the change in redeemable noncontrolling interest for the three months ended January 31, 2019:
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SUBSEQUENT EVENTS |
3 Months Ended |
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Jan. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On December 20, 2018, two of the Company's subsidiaries entered into a definitive Agreement and Plan of Merger (the "Merger Agreement") with the parent of Caraustar providing for the acquisition of Caraustar for a purchase price of $1.8 billion in cash, subject to the purchase price adjustment as set forth in the Merger Agreement. On February 11, 2019, the Company completed the Caraustar Acquisition. Caraustar is a leader in the production of uncoated recycled paperboard and coated recycled paperboard, with a variety of applications that include tubes and cores and a diverse mix of specialty products. Caraustar has over 80 operating facilities throughout the United States and Canada. Concurrently with the completion of the Caraustar Acquisition, and in order to fund the payment of the purchase price for the Caraustar Acquisition, among other things, the following changes were made to the Company's capital structure: (i) the Company issued new $500.0 million aggregate principal amount of 6.50% Senior Notes due 2027, and (ii) the Company entered into an amended and restated senior secured credit agreement, which amended, restated and replaced the 2017 Credit Agreement, consisting of a $600.0 million secured revolving multicurrency facility, a $200.0 million secured revolving U.S. dollar facility, a $1,275.0 million secured term loan A-1 facility with quarterly principal installments commencing on April 30, 2019 and maturing January 31, 2024, and a $400.0 million secured term loan A-2 facility with quarterly principal installments commencing on April 30, 2019 and maturing January 31, 2026. In addition, the Company intends to redeem its $250.0 million Senior Notes due August 1, 2019. Due to the limited time since the Company has completed the acquisition, the Company has not yet completed the initial acquisition accounting for the transaction, including the determination of the fair values of the assets acquired and the liabilities assumed. The Company will complete the preliminary purchase price allocation in the second quarter, which will be reflected in the Company's April 30, 2019 financial statements. The results of operations of the acquired business will be included in the Company's results from February 11, 2019, the date of the closing of the acquisition. |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Jan. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. Actual amounts could differ from those estimates. The fiscal year of Greif, Inc. and its subsidiaries (the “Company”) begins on November 1 and ends on October 31 of the following year. Any references to the year 2019 or 2018, or to any quarter of those years, relates to the fiscal year or quarter, as the case may be, ended in that year, unless otherwise stated. The information filed herein reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated balance sheets as of January 31, 2019 and October 31, 2018, the interim condensed consolidated statements of income and comprehensive income for the three months ended January 31, 2019 and 2018 and the interim condensed consolidated statements of cash flows for the three months ended January 31, 2019 and 2018 of the Company. The interim condensed consolidated financial statements include the accounts of Greif, Inc., all wholly-owned and consolidated subsidiaries and investments in limited liability companies, partnerships and joint ventures in which it has controlling influence or is the primary beneficiary. Non-majority owned entities include investments in limited liability companies, partnerships and joint ventures in which the Company does not have controlling influence and are accounted for using either the equity or cost method, as appropriate. The unaudited interim condensed consolidated financial statements included in the Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2018 (the “2018 Form 10-K”). |
Newly Adopted Accounting Standards and Recently Issued Accounting Standards | Newly Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in ASC 605, "Revenue Recognition." This new revenue standard introduces a five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new revenue standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted the ASU all of the related amendments using the modified retrospective method on November 1, 2018. The adoption of the ASU and related amendments did not impact the Company’s financial position, results of operations, comprehensive income, cash flows or disclosures other than as discussed above and disclosed within Note 2 to the interim condensed consolidated financial statements. Additionally, no cumulative effect adjustment was recorded to opening retained earnings as of November 1, 2018. Based on current operations, the Company does not expect a material impact on an ongoing basis as a result of the adoption of the new standard. See Note 2 to the interim condensed consolidated financial statements for additional disclosures related to revenue from contracts with customers. In August of 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230)," which amends the classification of certain cash receipts and cash payments on the statement of cash flows. This update clarifies guidance on eight specific cash flow items. The ASU requires the beneficial interests obtained through securitization of financial assets be disclosed as a non-cash activity and cash receipts from beneficial interests be classified as cash inflows from investing activities. Under previous guidance, the Company classified cash receipts from beneficial interests in securitized receivables and cash payments resulting from debt prepayment or extinguishment as cash flows from operating activities. The amendments in this update are required to be applied using a retrospective approach, excluding amendments for which retrospective application is impractical. On November 1, 2018, the Company adopted the provisions of ASU 2016-15 on a retrospective basis with the exception of the Company's beneficial interests obtained through securitization of financial assets, for which the Company adopted this update on a prospective basis due to the impracticality of the retrospective basis. The adoption of this update did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows or disclosures for the periods presented. In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)," which improves the accounting for income tax consequences of intra-entity transfers of assets other than inventory. This update requires transferring entities to recognize a current tax expense or benefit at the time of transfer and receiving entities to recognize a corresponding deferred tax asset or liability. The Company adopted this standard on November 1, 2018 using a modified retrospective approach. The adoption of this update resulted in a reclassification of approximately $15.1 million from "Prepaid Tax Assets" to "Retained Earnings", offset by the establishment of a deferred tax asset of $13.0 million for a net impact on retained earnings of $2.1 million as of November 1, 2018. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows or disclosures other than the impact discussed above. In January 2017, the FASB issued ASU 2017-01, "Clarifying the Definition of a Business," which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. The Company adopted this standard effective November 1, 2018 on a prospective basis. The Company will apply this guidance to the Company's acquisition of Caraustar Industries, Inc. ("Caraustar") and other applicable transactions after the adoption date. See Note 17 to the interim condensed consolidated financial statements for additional disclosures related to the acquisition of Caraustar. The adoption did not have a material impact on the Company's financial position, results of operations, comprehensive income, cash flows or disclosures other than the impact discussed above. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which amends the lease accounting and disclosure requirements in ASC 840, "Leases". The objective of this update is to increase transparency and comparability among organizations recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. This ASU will require the recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842): Targeted Improvements (ASU 2018-11)," which permits companies to initially apply the new leases standard at the adoption date and not restate periods prior to adoption. The Company plans to adopt ASU 2018-11 on November 1, 2019 and as a result, will not adjust its comparative period financial information or make the new required lease disclosures for periods before the effective date. The Company is currently in the process of collecting and evaluating all of its leases, which primarily consist of equipment and real estate leases, as well as implementing a technology tool to assist with the accounting and reporting requirements of the new standard. The Company also plans to update its processes and controls around leases. The Company will adopt the standard effective November 1, 2019 and expects to elect certain available transitional practical expedients. The Company is in the process of determining the potential impact of adopting this guidance on its financial position, results of operations, comprehensive income, cash flows and disclosures, but does expect to recognize a significant liability and corresponding asset associated with in-scope operating leases. |
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Carrying Amount of Goodwill by Segment | The following table summarizes the changes in the carrying amount of goodwill by segment for the three month period ended January 31, 2019:
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Summary of Carrying Amount of Net Other Intangible Assets by Class | The following table summarizes the carrying amount of net other intangible assets by class as of January 31, 2019 and October 31, 2018:
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RESTRUCTURING CHARGES (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Beginning and Ending Restructuring Reserve Balances | The following is a reconciliation of the beginning and ending restructuring reserve balances for the three month period ended January 31, 2019:
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Reconciliation of Total Amounts Expected to be Incurred from Open Restructuring Plans Anticipated to be Realized | The following is a reconciliation of the total amounts expected to be incurred from approved restructuring plans or plans that are being formulated and have not been announced as of the date of this Form 10-Q. Remaining amounts expected to be incurred are $13.2 million as of January 31, 2019 compared to $18.6 million as of October 31, 2018. The change was due to the costs incurred or otherwise settled, offset by the formulations of new plans during the period.
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CONSOLIDATION OF VARIABLE INTEREST ENTITIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Net Assets of Flexible Packaging JV | The following table presents the Flexible Packaging JV total net assets:
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LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Long-Term Debt | Long-term debt is summarized as follows:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | The following table presents the fair value for those assets and (liabilities) measured on a recurring basis as of January 31, 2019 and October 31, 2018:
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Estimated Fair Values for the Company's Senior Notes and Assets Held by Special Purpose Entities | The following table presents the estimated fair values of the Company’s Senior Notes and Assets held by special purpose entities:
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Summary of Quantitative about Significant Unobservable Inputs Used to Determine Fair Value of Impairment of Long-Lived Assets Held and Used and Net Assets Held for Sale | The following table presents quantitative information about the significant unobservable inputs used to determine the fair value of the impairment of long-lived assets held and used and net assets held for sale for the three months ended January 31, 2019 and 2018:
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POST RETIREMENT BENEFIT PLANS (Tables) |
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Pension Cost | The components of net periodic pension cost include the following:
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Components of Net Periodic Cost for Postretirement Benefits | The components of net periodic cost for post-retirement benefits include the following:
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EARNINGS PER SHARE (Tables) |
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Computation of Class Based Basic and Diluted Earnings Per Share | The Company calculates EPS as follows:
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Computation of Earnings Per Share Basic and Diluted | The following table provides EPS information for each period, respectively:
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Summarization of Company's Class A and Class B Common and Treasury Shares | The following table summarizes the Company’s Class A and Class B common and treasury shares as of the specified dates:
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Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share | The following is a reconciliation of the shares used to calculate basic and diluted earnings per share:
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EQUITY AND COMPREHENSIVE INCOME (LOSS) (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Equity | The following table summarizes the changes in equity from October 31, 2018 to January 31, 2019 (Dollars in millions, shares in thousands):
The following table summarizes the changes in equity from October 31, 2017 to January 31, 2018 (Dollars in millions, shares in thousands):
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Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2019:
The following table provides the rollforward of accumulated other comprehensive income (loss) for the three months ended January 31, 2018:
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BUSINESS SEGMENT INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas | The following table presents net sales disaggregated by geographic area for each reportable segment for the three months ended January 31, 2019:
The following table presents net sales disaggregated by geographic area for each reportable segment for the three months ended January 31, 2018:
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Segment Information | The following segment information is presented for the periods indicated:
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Properties, Plants and Equipment, Net by Geographical Area | The following table presents total assets by segment and total properties, plants and equipment, net by geographic area:
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REDEEMABLE NONCONTROLLING INTERESTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rollforward of Redeemable Noncontrolling Interest | The following table summarizes the change in mandatorily redeemable noncontrolling interest for the three months ended January 31, 2019:
Redeemable noncontrolling interests are reflected in the interim condensed consolidated balance sheets at redemption value. The following table summarizes the change in redeemable noncontrolling interest for the three months ended January 31, 2019:
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ASSETS AND LIABILITIES HELD FOR SALE AND DISPOSALS OF PROPERTIES, PLANTS AND EQUIPMENT, NET (Detail) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2019
USD ($)
asset_group
|
Jan. 31, 2018
USD ($)
|
Oct. 31, 2018
asset_group
|
|
Long Lived Assets Held-for-sale [Line Items] | |||
Gain on disposal of properties, plants and equipment, net | $ (0.9) | $ (4.6) | |
Rigid Industrial Packaging & Services | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Number of assets groups with assets and liabilities held for sale (asset group) | asset_group | 2 | 2 | |
Gain on disposal of properties, plants and equipment, net | $ (0.3) | (3.4) | |
Paper Packaging & Services | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Gain on disposal of properties, plants and equipment, net | (0.1) | ||
Land Management | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Gain on disposal of properties, plants and equipment, net | $ (0.5) | $ (1.2) |
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions |
3 Months Ended |
---|---|
Jan. 31, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
October 31, 2018 | $ 776.0 |
Currency translation | 2.2 |
January 31, 2019 | 778.2 |
Rigid Industrial Packaging & Services | |
Goodwill [Roll Forward] | |
October 31, 2018 | 716.5 |
Currency translation | 2.2 |
January 31, 2019 | 718.7 |
Paper Packaging & Services | |
Goodwill [Roll Forward] | |
October 31, 2018 | 59.5 |
Currency translation | 0.0 |
January 31, 2019 | $ 59.5 |
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 3.7 | $ 3.8 |
Amortization expense, 2019 | 14.6 | |
Future amortization expense, 2020 | 14.1 | |
Future amortization expense, 2021 | 12.5 | |
Future amortization expense, 2022 | 8.7 | |
Future amortization expense, 2023 | $ 7.5 |
RESTRUCTURING CHARGES - Reconciliation of Beginning and Ending Restructuring Reserve Balances (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 4.4 | |
Costs incurred and charged to expense | 3.7 | $ 4.1 |
Costs paid or otherwise settled | (4.6) | |
Ending balance | 3.5 | |
Employee Separation Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 4.2 | |
Costs incurred and charged to expense | 3.5 | |
Costs paid or otherwise settled | (4.4) | |
Ending balance | 3.3 | |
Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.2 | |
Costs incurred and charged to expense | 0.2 | |
Costs paid or otherwise settled | (0.2) | |
Ending balance | $ 0.2 |
RESTRUCTURING CHARGES - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Oct. 31, 2018 |
|
Restructuring and Related Costs [Line Items] | |||
Restructuring charges | $ 3.7 | $ 4.1 | |
Amounts remaining to be incurred | 13.2 | $ 18.6 | |
Employee Separation Costs | |||
Restructuring and Related Costs [Line Items] | |||
Restructuring charges | 3.5 | ||
Other Costs | |||
Restructuring and Related Costs [Line Items] | |||
Restructuring charges | $ 0.2 |
CONSOLIDATION OF VARIABLE INTEREST ENTITIES - Total Net Assets of Flexible Packaging JV (Detail) - USD ($) $ in Millions |
Jan. 31, 2019 |
Oct. 31, 2018 |
Jan. 31, 2018 |
Oct. 31, 2017 |
---|---|---|---|---|
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 84.5 | $ 94.2 | $ 94.3 | $ 142.3 |
Trade accounts receivable, less allowance of $0.6 in 2019 and $0.6 in 2018 | 561.4 | 456.7 | ||
Properties, plants and equipment, net | 1,183.1 | 1,191.9 | ||
Total Assets | 50.9 | 50.9 | ||
Accounts payable | 377.0 | 403.8 | ||
Total Liabilities | 43.3 | 43.3 | ||
Allowance of trade accounts receivable | 5.7 | 4.2 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 30.7 | 22.2 | ||
Trade accounts receivable, less allowance of $0.6 in 2019 and $0.6 in 2018 | 50.3 | 53.2 | ||
Inventories | 54.5 | 49.0 | ||
Properties, plants and equipment, net | 29.1 | 28.8 | ||
Other assets | 24.2 | 21.5 | ||
Total Assets | 188.8 | 174.7 | ||
Accounts payable | 30.9 | 29.0 | ||
Other liabilities | 23.4 | 24.8 | ||
Total Liabilities | 54.3 | 53.8 | ||
Allowance of trade accounts receivable | $ 0.6 | $ 0.6 |
LONG-TERM DEBT - Senior Notes (Detail) |
Jan. 31, 2019
USD ($)
|
Oct. 31, 2018
USD ($)
|
Jul. 15, 2011
EUR (€)
|
Jul. 28, 2009
USD ($)
|
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Debt issuance costs, net | $ 4,200,000 | $ 4,700,000 | ||
Long-term debt | 1,083,500,000 | 907,600,000 | ||
Senior Notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 250,000,000 | |||
Interest of senior notes | 7.75% | |||
Debt issuance costs, net | 200,000 | |||
Senior Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt issued | € | € 200,000,000 | |||
Interest of senior notes | 7.375% | |||
Senior Notes | Senior Notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 249,400,000 | 249,100,000 | ||
Senior Notes | Senior Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 227,800,000 | $ 226,500,000 |
LONG-TERM DEBT - United States, Internantional Trade Accounts Receivable Credit Facility (Detail) - USD ($) |
Jan. 31, 2019 |
Oct. 31, 2018 |
Sep. 26, 2018 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,083,500,000 | $ 907,600,000 | |
Less deferred financing costs | 4,200,000 | 4,700,000 | |
Domestic Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt | 242,100,000 | $ 150,000,000 | |
Accounts receivable credit facilities | Domestic Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 150,000,000.0 | ||
Long-term debt | 150,000,000 | ||
Less deferred financing costs | $ 100,000 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Estimated Fair Values for the Company's Senior Notes and Assets Held by Special Purpose Entities (Detail) - USD ($) $ in Millions |
Jan. 31, 2019 |
Oct. 31, 2018 |
---|---|---|
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Assets held by special purpose entities | $ 50.9 | $ 50.9 |
Estimate of Fair Value Measurement | ||
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Assets held by special purpose entities | 51.8 | 51.6 |
Senior Notes due 2019 | Estimate of Fair Value Measurement | ||
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Estimated fair value | 255.3 | 257.4 |
Senior Notes due 2021 | Estimate of Fair Value Measurement | ||
Estimated Fair Value Of Financial Instruments [Line Items] | ||
Estimated fair value | $ 261.2 | $ 263.4 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Summary of Significant Unobservable Inputs Used to Determine Fair Value Long-Lived Assets Held and Used (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impairment of Long Lived Assets | $ 0 | $ 2,900,000 |
Non-cash asset impairment charges | 2,100,000 | 2,900,000 |
Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Non-cash asset impairment charges | 2,100,000 | 2,900,000 |
Level 3 | Indicative Bids | Land and Building | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impairment of Net Assets Held for Sale | $ 2,100,000 | |
Level 3 | Discounted Cash Flows | Machinery and Equipment | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impairment of Long Lived Assets | $ 2,900,000 |
INCOME TAXES (Detail) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
Oct. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||
Tax Cuts And Jobs Act Of 2017 change in tax rate, benefit | $ (72.0) | ||
Tax cuts and jobs act of 2017, transition tax liability | $ 52.8 | ||
Tax cuts and jobs act of 2017, incomplete accounting, change in tax rate, deferred tax liability, provisional income tax benefit | 55.1 | ||
Tax Cuts And Jobs Act Of 2017, income tax Benefit, foreign currency loss | 1.7 | ||
Tax Cuts And Jobs Act Of 2017, income tax expense (benefit) | (18.6) | ||
Income tax expense | $ (20.0) | $ 15.6 |
POST RETIREMENT BENEFIT PLANS - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Pension Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2.5 | $ 3.3 |
Interest cost | 5.2 | 4.6 |
Expected return on plan assets | (6.2) | (6.1) |
Amortization of prior service cost and net actuarial loss | 1.8 | 3.6 |
Net periodic costs (benefits) for pension and post-retirement benefits | 3.3 | 5.4 |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.1 | 0.1 |
Amortization of prior service cost and net actuarial loss | (0.4) | (0.4) |
Net periodic costs (benefits) for pension and post-retirement benefits | $ (0.3) | $ (0.3) |
POST RETIREMENT BENEFIT PLANS - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Postemployment Benefits [Abstract] | ||
Company's pension contributions | $ 3.7 | $ 6.8 |
CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES (Detail) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Oct. 31, 2017
facility
|
Jan. 31, 2019
USD ($)
|
Oct. 31, 2018
USD ($)
|
|
Site Contingency [Line Items] | |||
Number of reconditioning facilities subject to litigation | facility | 3 | ||
Environmental liability reserves | $ 6.3 | $ 6.8 | |
European Drum Facilities | |||
Site Contingency [Line Items] | |||
Environmental liability reserves | 3.6 | 3.7 | |
Life Cycle Management and Recycling Facilities | |||
Site Contingency [Line Items] | |||
Environmental liability reserves | 0.2 | 0.2 | |
Owned by Other Company | |||
Site Contingency [Line Items] | |||
Environmental liability reserves | 0.5 | 0.9 | |
Other Facilities | |||
Site Contingency [Line Items] | |||
Environmental liability reserves | 2.0 | 2.0 | |
Wrongful Termination Lawsuits | Pending Litigation | |||
Site Contingency [Line Items] | |||
Estimated liability recorded for legal proceedings | $ 1.6 | $ 2.0 |
EARNINGS PER SHARE - Additional Information (Detail) - shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Jan. 31, 2019 |
Oct. 31, 2017 |
|
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Percentage of shares outstanding used in two class method calculation | 40.00% | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Percentage of shares outstanding used in two class method calculation | 60.00% | |
Board Of Director Authorized | ||
Class of Stock [Line Items] | ||
Number of shares authorized to be purchased (shares) | 4,703,487 | |
Stock Repurchase Committee Authorized | ||
Class of Stock [Line Items] | ||
Repurchase of common stock (shares) | 0 | 2,000 |
EARNINGS PER SHARE - Computation of Earnings Per Share Basic and Diluted (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Numerator for basic and diluted EPS | ||
Net income attributable to Greif, Inc. | $ 29.7 | $ 56.5 |
Cash dividends | (25.7) | (24.5) |
Undistributed net income (loss) attributable to Greif, Inc. | $ 4.0 | $ 32.0 |
EARNINGS PER SHARE - Summarization of Company's Class A and Class B Common and Treasury Shares (Detail) - shares |
Jan. 31, 2019 |
Oct. 31, 2018 |
---|---|---|
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares | 128,000,000 | 128,000,000 |
Issued Shares | 42,281,920 | 42,281,920 |
Outstanding Shares | 26,232,799 | 25,941,279 |
Treasury Shares | 16,049,121 | 16,340,641 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Authorized Shares | 69,120,000 | 69,120,000 |
Issued Shares | 34,560,000 | 34,560,000 |
Outstanding Shares | 22,007,725 | 22,007,725 |
Treasury Shares | 12,552,275 | 12,552,275 |
EARNINGS PER SHARE - Reconciliation of Shares Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Basic shares | 25,991,433 | 25,845,758 |
Assumed conversion of restricted shares | 0 | 0 |
Diluted shares | 25,991,433 | 25,845,758 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Basic shares | 22,000,000 | 22,000,000 |
Diluted shares | 22,000,000 | 22,000,000 |
Basic and diluted shares | 22,007,725 | 22,007,725 |
BUSINESS SEGMENT INFORMATION - Additional Information (Detail) |
3 Months Ended |
---|---|
Jan. 31, 2019
Segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 8 |
Number of reportable business segment | 4 |
BUSINESS SEGMENT INFORMATION - Segment Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Segment Reporting Information [Line Items] | ||
Total operating profit (loss) | $ 67.2 | $ 65.5 |
Total depreciation, depletion and amortization expense | 31.3 | 31.7 |
Rigid Industrial Packaging & Services | ||
Segment Reporting Information [Line Items] | ||
Total operating profit (loss) | 23.3 | 31.2 |
Total depreciation, depletion and amortization expense | 19.7 | 20.6 |
Paper Packaging & Services | ||
Segment Reporting Information [Line Items] | ||
Total operating profit (loss) | 35.3 | 27.9 |
Total depreciation, depletion and amortization expense | 8.8 | 8.3 |
Flexible Products & Services | ||
Segment Reporting Information [Line Items] | ||
Total operating profit (loss) | 6.0 | 3.2 |
Total depreciation, depletion and amortization expense | 1.7 | 1.8 |
Land Management | ||
Segment Reporting Information [Line Items] | ||
Total operating profit (loss) | 2.6 | 3.2 |
Total depreciation, depletion and amortization expense | $ 1.1 | $ 1.0 |
REDEEMABLE NONCONTROLLING INTERESTS - Rollforward of Mandatorily Redeemable Noncontrolling Interest (Detail) $ in Millions |
3 Months Ended |
---|---|
Jan. 31, 2019
USD ($)
| |
Redeemable Noncontrolling Interest, Equity [Roll Forward] | |
October 31, 2018 | $ 35.5 |
Current period mark to redemption value | (0.2) |
January 31, 2019 | 23.9 |
Container Life Cycle Management LLC | |
Redeemable Noncontrolling Interest, Equity [Roll Forward] | |
October 31, 2018 | 8.6 |
Current period mark to redemption value | (0.2) |
January 31, 2019 | $ 8.4 |
REDEEMABLE NONCONTROLLING INTERESTS - Additional Information (Detail) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019
USD ($)
joint_venture
|
Jan. 31, 2018
USD ($)
|
|
Redeemable Noncontrolling Interest [Line Items] | ||
Payments for repurchase of redeemable moncontrolling interest | $ 11.9 | $ 0.0 |
Paper Packaging & Services | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Number of joint ventures | joint_venture | 2 | |
Rigid Industrial Packaging & Services | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Number of joint ventures | joint_venture | 1 | |
Owner One | Paper Packaging & Services | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Payments for repurchase of redeemable moncontrolling interest | $ 10.1 | |
Owner Two | Paper Packaging & Services | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Payments for repurchase of redeemable moncontrolling interest | $ 1.8 |
REDEEMABLE NONCONTROLLING INTERESTS - Rollforward of Redeemable Noncontrolling Interest (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 31, 2019 |
Jan. 31, 2018 |
|
Redeemable Noncontrolling Interest, Equity [Roll Forward] | ||
October 31, 2018 | $ 35.5 | |
Current period mark to redemption value | (0.2) | |
Repurchase of redeemable shareholder interest | (11.9) | |
Redeemable noncontrolling interest share of income and other | 0.8 | $ 1.1 |
Dividends to redeemable noncontrolling interest and other | (0.3) | |
January 31, 2019 | $ 23.9 |