10-Q 1 ptve-10q_20220331.htm 10-Q ptve-10q_20220331.htm
false Q1 0001527508 --12-31 0.03250 0.03500 0.00000 0.00500 3.12 4.05 2.81 2.81 April 15 and October 15, commencing April 15, 2022 0001527508 2022-01-01 2022-03-31 xbrli:shares 0001527508 2022-04-29 iso4217:USD 0001527508 2021-01-01 2021-03-31 iso4217:USD xbrli:shares 0001527508 2022-03-31 0001527508 2021-12-31 0001527508 us-gaap:CommonStockMember 2020-12-31 0001527508 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001527508 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001527508 us-gaap:RetainedEarningsMember 2020-12-31 0001527508 us-gaap:NoncontrollingInterestMember 2020-12-31 0001527508 2020-12-31 0001527508 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001527508 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001527508 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001527508 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001527508 us-gaap:CommonStockMember 2021-03-31 0001527508 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001527508 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001527508 us-gaap:RetainedEarningsMember 2021-03-31 0001527508 us-gaap:NoncontrollingInterestMember 2021-03-31 0001527508 2021-03-31 0001527508 us-gaap:CommonStockMember 2021-12-31 0001527508 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001527508 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001527508 us-gaap:RetainedEarningsMember 2021-12-31 0001527508 us-gaap:NoncontrollingInterestMember 2021-12-31 0001527508 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001527508 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001527508 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001527508 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001527508 us-gaap:CommonStockMember 2022-03-31 0001527508 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001527508 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001527508 us-gaap:RetainedEarningsMember 2022-03-31 0001527508 us-gaap:NoncontrollingInterestMember 2022-03-31 0001527508 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember ptve:BeverageMerchandisingAsiaMember 2022-01-01 2022-03-31 0001527508 us-gaap:RestrictedStockUnitsRSUMember 2022-01-01 2022-03-31 0001527508 ptve:PerformanceStockUnitsMember 2022-01-01 2022-03-31 xbrli:pure 0001527508 ptve:FabriKalCorporationMember 2021-10-01 0001527508 ptve:FabriKalCorporationMember 2021-10-01 2021-10-01 0001527508 ptve:FabriKalCorporationMember 2022-01-01 2022-03-31 ptve:Facility 0001527508 ptve:FabriKalCorporationMember country:US 2021-10-01 2021-10-01 0001527508 us-gaap:CustomerRelationshipsMember ptve:FabriKalCorporationMember 2021-10-01 0001527508 us-gaap:TrademarksMember ptve:FabriKalCorporationMember 2021-10-01 0001527508 ptve:FabriKalCorporationMember us-gaap:CustomerRelationshipsMember ptve:FoodserviceMember 2021-10-01 0001527508 ptve:FabriKalCorporationMember us-gaap:CustomerRelationshipsMember ptve:FoodserviceMember 2021-10-01 2021-10-01 0001527508 ptve:FabriKalCorporationMember us-gaap:TrademarksMember ptve:FoodserviceMember 2021-10-01 0001527508 ptve:FabriKalCorporationMember us-gaap:TrademarksMember ptve:FoodserviceMember 2021-10-01 2021-10-01 0001527508 ptve:FabriKalCorporationMember ptve:FoodserviceMember 2021-10-01 0001527508 ptve:SIGSchweizerischeIndustrieGesellschaftGmbHMember ptve:BeverageMerchandisingAsiaMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2022-01-04 2022-01-04 0001527508 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember ptve:BeverageMerchandisingAsiaMember 2022-03-31 0001527508 us-gaap:DisposalGroupHeldforsaleNotDiscontinuedOperationsMember ptve:BeverageMerchandisingAsiaMember 2021-12-31 0001527508 ptve:SIGSchweizerischeIndustrieGesellschaftGmbHMember ptve:BeverageMerchandisingAsiaMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2022-01-01 2022-03-31 0001527508 ptve:SIGSchweizerischeIndustrieGesellschaftGmbHMember ptve:BeverageMerchandisingAsiaMember us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2021-01-01 2021-03-31 0001527508 2021-10-12 2021-10-12 0001527508 2022-03-29 2022-03-29 0001527508 ptve:SouthAmericanClosuresBusinessMember 2021-01-01 2021-03-31 0001527508 us-gaap:AllOtherSegmentsMember 2021-01-01 2021-03-31 0001527508 us-gaap:EmployeeSeveranceMember 2021-12-31 0001527508 us-gaap:EmployeeSeveranceMember 2022-03-31 0001527508 us-gaap:LandAndLandImprovementsMember 2022-03-31 0001527508 us-gaap:LandAndLandImprovementsMember 2021-12-31 0001527508 us-gaap:BuildingAndBuildingImprovementsMember 2022-03-31 0001527508 us-gaap:BuildingAndBuildingImprovementsMember 2021-12-31 0001527508 us-gaap:MachineryAndEquipmentMember 2022-03-31 0001527508 us-gaap:MachineryAndEquipmentMember 2021-12-31 0001527508 us-gaap:ConstructionInProgressMember 2022-03-31 0001527508 us-gaap:ConstructionInProgressMember 2021-12-31 0001527508 ptve:FoodserviceMember 2021-12-31 0001527508 ptve:FoodMerchandisingMember 2021-12-31 0001527508 ptve:BeverageMerchandisingMember 2021-12-31 0001527508 ptve:FoodserviceMember 2022-01-01 2022-03-31 0001527508 ptve:FoodMerchandisingMember 2022-01-01 2022-03-31 0001527508 ptve:BeverageMerchandisingMember 2022-01-01 2022-03-31 0001527508 ptve:FoodserviceMember 2022-03-31 0001527508 ptve:FoodMerchandisingMember 2022-03-31 0001527508 ptve:BeverageMerchandisingMember 2022-03-31 0001527508 us-gaap:AllOtherSegmentsMember 2022-03-31 0001527508 us-gaap:CustomerRelationshipsMember 2022-03-31 0001527508 us-gaap:TrademarksMember 2022-03-31 0001527508 us-gaap:OtherIntangibleAssetsMember 2022-03-31 0001527508 us-gaap:CustomerRelationshipsMember 2021-12-31 0001527508 us-gaap:TrademarksMember 2021-12-31 0001527508 us-gaap:OtherIntangibleAssetsMember 2021-12-31 0001527508 us-gaap:TrademarksMember 2022-03-31 0001527508 us-gaap:UnclassifiedIndefinitelivedIntangibleAssetsMember 2022-03-31 0001527508 us-gaap:TrademarksMember 2021-12-31 0001527508 us-gaap:UnclassifiedIndefinitelivedIntangibleAssetsMember 2021-12-31 0001527508 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2022-01-01 2022-03-31 0001527508 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-01-01 2021-03-31 0001527508 us-gaap:SecuredDebtMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-03-31 0001527508 us-gaap:SecuredDebtMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2021-12-31 0001527508 ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2022-03-31 0001527508 ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2021-12-31 0001527508 ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember us-gaap:SeniorNotesMember 2022-03-31 0001527508 ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember us-gaap:SeniorNotesMember 2021-12-31 0001527508 ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember us-gaap:UnsecuredDebtMember 2022-03-31 0001527508 ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember us-gaap:UnsecuredDebtMember 2021-12-31 0001527508 ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember us-gaap:UnsecuredDebtMember 2022-03-31 0001527508 ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember us-gaap:UnsecuredDebtMember 2021-12-31 0001527508 ptve:OtherLongTermDebtMember 2022-03-31 0001527508 ptve:OtherLongTermDebtMember 2021-12-31 0001527508 us-gaap:SeniorNotesMember ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember 2022-01-01 2022-03-31 0001527508 us-gaap:SeniorNotesMember ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember 2022-01-01 2022-03-31 0001527508 us-gaap:UnsecuredDebtMember ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember 2022-01-01 2022-03-31 0001527508 us-gaap:UnsecuredDebtMember ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember 2022-01-01 2022-03-31 0001527508 us-gaap:SeniorNotesMember ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember 2021-01-01 2021-12-31 0001527508 us-gaap:SeniorNotesMember ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember 2021-01-01 2021-12-31 0001527508 us-gaap:UnsecuredDebtMember ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember 2021-01-01 2021-12-31 0001527508 us-gaap:UnsecuredDebtMember ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember 2021-01-01 2021-12-31 0001527508 ptve:USTermLoansTrancheB3Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2021-09-24 0001527508 ptve:USTermLoansTrancheB3Member ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember 2021-09-24 0001527508 ptve:USTermLoansTrancheB1Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2021-09-24 2021-09-24 0001527508 ptve:FivePointOneTwoFivePercentNotesDueTwoThousandTwentyThreeMember 2021-01-01 2021-03-31 0001527508 ptve:FivePointOneTwoFivePercentNotesDueTwoThousandTwentyThreeMember 2021-03-31 0001527508 ptve:FivePointOneTwoFivePercentNotesDueTwoThousandTwentyThreeMember 2022-01-01 2022-03-31 0001527508 ptve:USTermLoansTrancheB2Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-01-01 2022-03-31 0001527508 ptve:USTermLoansTrancheB3Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-01-01 2022-03-31 0001527508 us-gaap:RevolvingCreditFacilityMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-01-01 2022-03-31 0001527508 ptve:USTermLoansTrancheB2Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-03-31 0001527508 ptve:USTermLoansTrancheB3Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-03-31 0001527508 us-gaap:RevolvingCreditFacilityMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-03-31 0001527508 ptve:USTermLoansTrancheB2Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2022-01-01 2022-03-31 0001527508 ptve:USTermLoansTrancheB3Member ptve:CreditAgreementMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2022-01-01 2022-03-31 0001527508 ptve:USTermLoansTrancheB3Member 2022-03-31 0001527508 ptve:USTermLoansTrancheB1Member us-gaap:LineOfCreditMember ptve:CreditAgreementMember 2021-03-31 0001527508 ptve:USTermLoansTrancheB2Member us-gaap:LineOfCreditMember ptve:CreditAgreementMember 2021-03-31 0001527508 us-gaap:SecuredDebtMember srt:MaximumMember us-gaap:LineOfCreditMember ptve:CreditAgreementMember 2022-03-31 0001527508 us-gaap:SecuredDebtMember srt:MaximumMember us-gaap:LineOfCreditMember ptve:CreditAgreementMember 2022-01-01 2022-03-31 0001527508 us-gaap:SecuredDebtMember srt:MinimumMember us-gaap:LineOfCreditMember ptve:CreditAgreementMember 2022-01-01 2022-03-31 0001527508 us-gaap:SecuredDebtMember us-gaap:LineOfCreditMember ptve:CreditAgreementMember 2021-01-01 2021-12-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SecuredDebtMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-03-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SecuredDebtMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2022-03-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SecuredDebtMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2021-12-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:SecuredDebtMember ptve:CreditAgreementMember us-gaap:LineOfCreditMember 2021-12-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2022-03-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2022-03-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2021-12-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:FourPointZeroPercentNotesDueTwoThousandTwentySevenMember us-gaap:SeniorNotesMember 2021-12-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember us-gaap:SeniorNotesMember 2022-03-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember us-gaap:SeniorNotesMember 2022-03-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember us-gaap:SeniorNotesMember 2021-12-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:FourPointThreeSevenFivePercentNotesDueTwoThousandTwentyEightMember us-gaap:SeniorNotesMember 2021-12-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember us-gaap:UnsecuredDebtMember 2022-03-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember us-gaap:UnsecuredDebtMember 2022-03-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember us-gaap:UnsecuredDebtMember 2021-12-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:SevenPointNineFiveZeroPercentDebenturesDueTwoThousandTwentyFiveMember us-gaap:UnsecuredDebtMember 2021-12-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember us-gaap:UnsecuredDebtMember 2022-03-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember us-gaap:UnsecuredDebtMember 2022-03-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember us-gaap:UnsecuredDebtMember 2021-12-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:EightPointThreeSevenFivePercentDebenturesDueTwoThousandTwentySevenMember us-gaap:UnsecuredDebtMember 2021-12-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:OtherLongTermDebtMember 2022-03-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:OtherLongTermDebtMember 2022-03-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember ptve:OtherLongTermDebtMember 2021-12-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember ptve:OtherLongTermDebtMember 2021-12-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2022-03-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-03-31 0001527508 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-12-31 0001527508 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001527508 us-gaap:LineOfCreditMember us-gaap:SecuredDebtMember ptve:CreditAgreementMember 2022-01-01 2022-03-31 0001527508 us-gaap:LineOfCreditMember us-gaap:SecuredDebtMember ptve:CreditAgreementMember 2021-01-01 2021-03-31 0001527508 us-gaap:SeniorNotesMember 2022-01-01 2022-03-31 0001527508 us-gaap:SeniorNotesMember 2021-01-01 2021-03-31 0001527508 us-gaap:UnsecuredDebtMember 2022-01-01 2022-03-31 0001527508 us-gaap:UnsecuredDebtMember 2021-01-01 2021-03-31 0001527508 us-gaap:CommodityContractMember 2022-03-31 0001527508 us-gaap:OtherCurrentAssetsMember 2022-03-31 0001527508 us-gaap:CommodityContractMember 2021-12-31 0001527508 us-gaap:OtherCurrentAssetsMember 2021-12-31 0001527508 us-gaap:AccruedLiabilitiesMember 2021-12-31 iso4217:USD utr:gal 0001527508 srt:MinimumMember ptve:BenzeneSwapsMay2022ToDecember2022Member 2022-03-31 0001527508 srt:MaximumMember ptve:BenzeneSwapsMay2022ToDecember2022Member 2022-03-31 iso4217:USD utr:MMBTU 0001527508 srt:MinimumMember ptve:NaturalGasSwapMay2022ToSeptember2022Member 2022-03-31 0001527508 srt:MaximumMember ptve:NaturalGasSwapMay2022ToSeptember2022Member 2022-03-31 utr:gal 0001527508 ptve:BenzeneSwapsMay2022ToDecember2022Member 2022-01-01 2022-03-31 utr:MMBTU 0001527508 ptve:NaturalGasSwapMay2022ToSeptember2022Member 2022-01-01 2022-03-31 0001527508 us-gaap:CostOfSalesMember 2021-01-01 2021-03-31 0001527508 us-gaap:NonoperatingIncomeExpenseMember 2022-01-01 2022-03-31 0001527508 us-gaap:NonoperatingIncomeExpenseMember 2021-01-01 2021-03-31 0001527508 ptve:PactivEvergreenPensionPlanMember 2022-01-01 2022-03-31 0001527508 ptve:PactivEvergreenPensionPlanMember 2022-02-24 2022-02-24 0001527508 ptve:PactivEvergreenPensionPlanMember 2022-02-24 ptve:Retiree 0001527508 ptve:PactivEvergreenPensionPlanMember 2021-07-21 2021-07-21 0001527508 ptve:PactivEvergreenPensionPlanMember 2021-07-21 0001527508 ptve:PactivEvergreenPensionPlanMember 2021-07-01 2021-09-30 0001527508 srt:SubsidiariesMember 2021-04-14 2021-04-14 0001527508 us-gaap:AccumulatedTranslationAdjustmentMember 2021-12-31 0001527508 us-gaap:AccumulatedTranslationAdjustmentMember 2020-12-31 0001527508 us-gaap:AccumulatedTranslationAdjustmentMember 2022-01-01 2022-03-31 0001527508 us-gaap:AccumulatedTranslationAdjustmentMember 2021-01-01 2021-03-31 0001527508 us-gaap:AccumulatedTranslationAdjustmentMember 2022-03-31 0001527508 us-gaap:AccumulatedTranslationAdjustmentMember 2021-03-31 0001527508 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-12-31 0001527508 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-12-31 0001527508 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-01-01 2022-03-31 0001527508 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-03-31 0001527508 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-03-31 0001527508 ptve:PackagingFinanceLimitedAndOtherEntitiesMember 2022-03-31 0001527508 us-gaap:CorporateJointVentureMember 2022-03-31 0001527508 us-gaap:CorporateJointVentureMember 2021-12-31 0001527508 us-gaap:CorporateJointVentureMember 2022-01-01 2022-03-31 0001527508 us-gaap:CorporateJointVentureMember 2021-01-01 2021-03-31 0001527508 srt:AffiliatedEntityMember 2022-03-31 0001527508 srt:AffiliatedEntityMember 2021-12-31 0001527508 ptve:SaleOfGoodsAndServicesMember srt:AffiliatedEntityMember 2022-01-01 2022-03-31 0001527508 ptve:SaleOfGoodsAndServicesMember srt:AffiliatedEntityMember 2021-01-01 2021-03-31 0001527508 ptve:TransactionServiceAgreementAndRentalIncomeMember srt:AffiliatedEntityMember 2022-01-01 2022-03-31 0001527508 ptve:TransactionServiceAgreementAndRentalIncomeMember srt:AffiliatedEntityMember 2021-01-01 2021-03-31 0001527508 ptve:ChargesMember srt:AffiliatedEntityMember 2022-01-01 2022-03-31 0001527508 ptve:ChargesMember srt:AffiliatedEntityMember 2021-01-01 2021-03-31 0001527508 ptve:ChargesMember 2022-01-01 2022-03-31 0001527508 ptve:ChargesMember 2021-01-01 2021-03-31 ptve:lease_agreement 0001527508 srt:AffiliatedEntityMember us-gaap:LeaseAgreementsMember 2022-01-01 2022-03-31 0001527508 srt:AffiliatedEntityMember ptve:TaxMattersAgreementMember 2022-03-31 0001527508 2020-09-21 0001527508 us-gaap:RestrictedStockUnitsRSUMember srt:MinimumMember 2022-01-01 2022-03-31 0001527508 us-gaap:RestrictedStockUnitsRSUMember srt:MaximumMember 2022-01-01 2022-03-31 0001527508 us-gaap:RestrictedStockUnitsRSUMember 2021-12-31 0001527508 us-gaap:RestrictedStockUnitsRSUMember 2022-03-31 0001527508 ptve:PerformanceStockUnitsMember srt:MinimumMember 2022-01-01 2022-03-31 0001527508 ptve:PerformanceStockUnitsMember srt:MaximumMember 2022-01-01 2022-03-31 0001527508 ptve:PerformanceStockUnitsMember 2022-03-31 0001527508 us-gaap:SubsequentEventMember 2022-05-03 0001527508 us-gaap:SubsequentEventMember 2022-05-03 2022-05-03 ptve:Segment 0001527508 ptve:ReportableSegmentsMember 2022-01-01 2022-03-31 0001527508 us-gaap:IntersegmentEliminationMember ptve:BeverageMerchandisingMember 2022-01-01 2022-03-31 0001527508 us-gaap:IntersegmentEliminationMember ptve:ReportableSegmentsMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:ReportableSegmentsMember 2022-01-01 2022-03-31 0001527508 ptve:FoodserviceMember 2021-01-01 2021-03-31 0001527508 ptve:FoodMerchandisingMember 2021-01-01 2021-03-31 0001527508 ptve:BeverageMerchandisingMember 2021-01-01 2021-03-31 0001527508 ptve:ReportableSegmentsMember 2021-01-01 2021-03-31 0001527508 us-gaap:IntersegmentEliminationMember ptve:BeverageMerchandisingMember 2021-01-01 2021-03-31 0001527508 us-gaap:IntersegmentEliminationMember ptve:ReportableSegmentsMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:ReportableSegmentsMember 2021-01-01 2021-03-31 0001527508 ptve:FoodserviceMember us-gaap:OperatingSegmentsMember 2022-03-31 0001527508 ptve:FoodMerchandisingMember us-gaap:OperatingSegmentsMember 2022-03-31 0001527508 ptve:BeverageMerchandisingMember us-gaap:OperatingSegmentsMember 2022-03-31 0001527508 ptve:ReportableSegmentsMember us-gaap:OperatingSegmentsMember 2022-03-31 0001527508 ptve:FoodserviceMember us-gaap:OperatingSegmentsMember 2021-12-31 0001527508 ptve:FoodMerchandisingMember us-gaap:OperatingSegmentsMember 2021-12-31 0001527508 ptve:BeverageMerchandisingMember us-gaap:OperatingSegmentsMember 2021-12-31 0001527508 ptve:ReportableSegmentsMember us-gaap:OperatingSegmentsMember 2021-12-31 0001527508 us-gaap:AllOtherSegmentsMember us-gaap:OperatingSegmentsMember 2021-01-01 2021-03-31 0001527508 us-gaap:CorporateNonSegmentMember 2022-01-01 2022-03-31 0001527508 us-gaap:CorporateNonSegmentMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2021-12-31 0001527508 us-gaap:CorporateNonSegmentMember 2022-03-31 0001527508 us-gaap:CorporateNonSegmentMember 2021-12-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:ContainersFoodserviceMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:ContainersFoodserviceMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:DrinkwareMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:DrinkwareMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:TablewareMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:TablewareMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:ServicewareAndOtherMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodserviceMember ptve:ServicewareAndOtherMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:TablewareMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:TablewareMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:BakerySnackProduceFruitContainersMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:BakerySnackProduceFruitContainersMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:MeatTraysMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:MeatTraysMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:PreparedFoodTraysMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:PreparedFoodTraysMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:EggCartonsMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:EggCartonsMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:OtherMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:FoodMerchandisingMember ptve:OtherMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember ptve:CartonsforFreshBeverageProductsMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember ptve:CartonsforFreshBeverageProductsMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember ptve:LiquidPackagingBoardMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember ptve:LiquidPackagingBoardMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember ptve:PaperProductsMember 2022-01-01 2022-03-31 0001527508 us-gaap:OperatingSegmentsMember ptve:BeverageMerchandisingMember ptve:PaperProductsMember 2021-01-01 2021-03-31 0001527508 us-gaap:OperatingSegmentsMember us-gaap:AllOtherSegmentsMember 2022-01-01 2022-03-31 0001527508 us-gaap:IntersegmentEliminationMember 2022-01-01 2022-03-31 0001527508 us-gaap:IntersegmentEliminationMember 2021-01-01 2021-03-31

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     

Commission File Number: 001-39528

 

PACTIV EVERGREEN INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

 

98-1538656

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification Number)

 

1900 W. Field Court

Lake Forest, Illinois 60045

(Address of principal executive offices) (Zip Code)

Telephone: (847482-2000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock, $0.001 par value

 

PTVE

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes No

The registrant had 177,668,402 shares of common stock, $0.001 par value per share, outstanding as of April 29, 2022.

 

 

 


 

Table of Contents

 

 

 

 

 

 

 

Page

PART I.

 

FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements (Unaudited)

 

3

 

 

Condensed Consolidated Statements of Income (Loss)

 

3

 

 

Condensed Consolidated Statements of Comprehensive Loss

 

4

 

 

Condensed Consolidated Balance Sheets

 

5

 

 

Condensed Consolidated Statements of Equity

 

6

 

 

Condensed Consolidated Statements of Cash Flows

 

7

 

 

Notes to the Condensed Consolidated Financial Statements

 

8

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

26

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

 

33

Item 4.

 

Controls and Procedures

 

33

PART II.

 

OTHER INFORMATION

 

34

Item 1.

 

Legal Proceedings

 

34

Item 1A.

 

Risk Factors

 

34

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

34

Item 3.

 

Defaults Upon Senior Securities

 

34

Item 4.

 

Mine Safety Disclosures

 

34

Item 5.

 

Other Information

 

34

Item 6.

 

Exhibits

 

35

 

 

Signatures

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

FORWARD-LOOKING STATEMENTS

This report contains certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies, anticipated trends in our business and anticipated growth in the markets served by our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the caption entitled “Risk Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2021. You should specifically consider these numerous risks. These risks include, among others, those related to:

 

fluctuations in raw material, energy and freight costs;

 

labor shortages and increased labor costs;

 

our ability to meet demand for our products;

 

the uncertain economic, operational and financial impacts of the coronavirus pandemic;

 

failure to maintain satisfactory relationships with our major customers;

 

our dependence on suppliers of raw materials and any interruption to our supply of raw materials;

 

the impact of natural disasters, public health crises and catastrophic events outside of our control;

 

our ability to realize the benefits of our capital investment, acquisitions, restructuring and other cost savings programs;

 

our safety performance;

 

uncertain global economic conditions;

 

competition in the markets in which we operate;

 

changes in consumer lifestyle, eating habits, nutritional preferences and health-related, environmental and sustainability concerns;

 

the impact of our significant debt on our financial condition and ability to operate our business;

 

compliance with, and liabilities related to, applicable laws and regulations;

 

the ownership of a majority of the voting power of our common stock by Packaging Finance Limited, our parent company, which we refer to as PFL, and another entity affiliated with Mr. Graeme Hart, which, together with PFL, we refer to as the Hart Stockholders; and

 

our ability to establish independent financial, administrative and other support functions.

 

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We are under no duty to update any of these forward-looking statements after the date of this report to conform our prior statements to actual results or revised expectations.

2


 

 

 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Pactiv Evergreen Inc.

Condensed Consolidated Statements of Income (Loss)

(In millions, except per share amounts)

(Unaudited)

 

 

 

For the Three Months Ended

March 31,

 

 

 

2022

 

 

2021

 

Net revenues

 

$

1,495

 

 

$

1,164

 

Cost of sales

 

 

(1,263

)

 

 

(1,056

)

Gross profit

 

 

232

 

 

 

108

 

Selling, general and administrative expenses

 

 

(142

)

 

 

(126

)

Restructuring, asset impairment and other related charges

 

 

 

 

 

2

 

Other income, net

 

 

28

 

 

 

6

 

Operating income (loss) from continuing operations

 

 

118

 

 

 

(10

)

Non-operating income, net

 

 

10

 

 

 

23

 

Interest expense, net

 

 

(49

)

 

 

(42

)

Income (loss) from continuing operations before tax

 

 

79

 

 

 

(29

)

Income tax (expense) benefit

 

 

(36

)

 

 

18

 

Income (loss) from continuing operations

 

 

43

 

 

 

(11

)

Loss from discontinued operations, net of income taxes

 

 

 

 

 

(3

)

Net income (loss)

 

 

43

 

 

 

(14

)

Income attributable to non-controlling interests

 

 

 

 

 

(1

)

Net income (loss) attributable to Pactiv Evergreen Inc. common shareholders

 

$

43

 

 

$

(15

)

Earnings (loss) per share attributable to Pactiv Evergreen Inc.

   common shareholders

 

 

 

 

 

 

 

 

From continuing operations

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

(0.07

)

Diluted

 

$

0.24

 

 

$

(0.07

)

From discontinued operations

 

 

 

 

 

 

 

 

Basic

 

$

 

 

$

(0.02

)

Diluted

 

$

 

 

$

(0.02

)

Total

 

 

 

 

 

 

 

 

Basic

 

$

0.24

 

 

$

(0.09

)

Diluted

 

$

0.24

 

 

$

(0.09

)

 

See accompanying notes to the condensed consolidated financial statements.

3


 

Pactiv Evergreen Inc.

Condensed Consolidated Statements of Comprehensive Loss

(In millions)

(Unaudited)

 

 

 

For the Three Months Ended

March 31,

 

 

 

2022

 

 

2021

 

Net income (loss)

 

$

43

 

 

$

(14

)

Other comprehensive loss, net of income taxes:

 

 

 

 

 

 

 

 

Currency translation adjustments

 

 

4

 

 

 

(20

)

Defined benefit plans

 

 

(103

)

 

 

 

Other comprehensive loss

 

 

(99

)

 

 

(20

)

Comprehensive loss

 

 

(56

)

 

 

(34

)

Comprehensive income attributable to non-controlling interests

 

 

 

 

 

(1

)

Comprehensive loss attributable to Pactiv Evergreen Inc.

   common shareholders

 

$

(56

)

 

$

(35

)

 

See accompanying notes to the condensed consolidated financial statements.

4


 

Pactiv Evergreen Inc.

Condensed Consolidated Balance Sheets

(In millions, except share amounts)

(Unaudited)

 

 

 

As of March 31,

2022

 

 

As of December 31,

2021

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

283

 

 

$

197

 

Accounts receivable, net of allowances for doubtful accounts of $4 and $3

 

 

502

 

 

 

474

 

Related party receivables

 

 

41

 

 

 

48

 

Inventories

 

 

968

 

 

 

854

 

Other current assets

 

 

113

 

 

 

127

 

Assets held for sale

 

 

134

 

 

 

162

 

Total current assets

 

 

2,041

 

 

 

1,862

 

Property, plant and equipment, net

 

 

1,771

 

 

 

1,786

 

Operating lease right-of-use assets, net

 

 

272

 

 

 

278

 

Goodwill

 

 

1,812

 

 

 

1,812

 

Intangible assets, net

 

 

1,112

 

 

 

1,127

 

Deferred income taxes

 

 

7

 

 

 

7

 

Other noncurrent assets

 

 

147

 

 

 

149

 

Total assets

 

$

7,162

 

 

$

7,021

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

433

 

 

$

364

 

Related party payables

 

 

11

 

 

 

10

 

Current portion of long-term debt

 

 

30

 

 

 

30

 

Current portion of operating lease liabilities

 

 

62

 

 

 

61

 

Income taxes payable

 

 

5

 

 

 

8

 

Accrued and other current liabilities

 

 

373

 

 

 

315

 

Liabilities held for sale

 

 

27

 

 

 

31

 

Total current liabilities

 

 

941

 

 

 

819

 

Long-term debt

 

 

4,213

 

 

 

4,220

 

Long-term operating lease liabilities

 

 

222

 

 

 

229

 

Deferred income taxes

 

 

231

 

 

 

246

 

Long-term employee benefit obligations

 

 

194

 

 

 

79

 

Other noncurrent liabilities

 

 

144

 

 

 

140

 

Total liabilities

 

$

5,945

 

 

$

5,733

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 2,000,000,000 shares authorized; 177,668,402 and 177,250,974 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively

 

$

 

 

$

 

Preferred stock, $0.001 par value; 200,000,000 shares authorized; no shares

issued or outstanding

 

 

 

 

 

 

Additional paid in capital

 

 

628

 

 

 

625

 

Accumulated other comprehensive loss

 

 

(198

)

 

 

(99

)

Retained earnings

 

 

783

 

 

 

758

 

Total equity attributable to Pactiv Evergreen Inc. common shareholders

 

 

1,213

 

 

 

1,284

 

Non-controlling interests

 

 

4

 

 

 

4

 

Total equity

 

 

1,217

 

 

 

1,288

 

Total liabilities and equity

 

$

7,162

 

 

$

7,021

 

See accompanying notes to the condensed consolidated financial statements.

5


 

Pactiv Evergreen Inc.

Condensed Consolidated Statements of Equity

(In millions, except per share amounts)

(Unaudited)

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Additional

Paid In

Capital

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Retained

Earnings

 

 

Non-

Controlling

Interests

 

 

Total

Equity

 

For the Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

 

177.2

 

 

$

 

 

$

614

 

 

$

(349

)

 

$

806

 

 

$

3

 

 

$

1,074

 

Net (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15

)

 

 

1

 

 

 

(14

)

Other comprehensive loss, net of income taxes

 

 

 

 

 

 

 

 

 

 

 

(20

)

 

 

 

 

 

 

 

 

(20

)

Equity based compensation

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Dividends declared - common shareholders ($0.10 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

Balance as of March 31, 2021

 

 

177.2

 

 

$

 

 

$

618

 

 

$

(369

)

 

$

773

 

 

$

4

 

 

$

1,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2021

 

 

177.3

 

 

$

 

 

$

625

 

 

$

(99

)

 

$

758

 

 

$

4

 

 

$

1,288

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43

 

 

 

 

 

 

43

 

Other comprehensive loss, net of income taxes

 

 

 

 

 

 

 

 

 

 

 

(99

)

 

 

 

 

 

 

 

 

(99

)

Equity based compensation

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Vesting of restricted stock units, net of tax withholdings

 

 

0.4

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

(1

)

Dividends declared - common shareholders ($0.10 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

Balance as of March 31, 2022

 

 

177.7

 

 

$

 

 

$

628

 

 

$

(198

)

 

$

783

 

 

$

4

 

 

$

1,217

 

See accompanying notes to the condensed consolidated financial statements.

6


 

Pactiv Evergreen Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

 

 

For the Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Cash provided by operating activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

43

 

 

$

(14

)

Adjustments to reconcile net income (loss) to operating cash flows:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

84

 

 

 

73

 

Deferred income taxes

 

 

18

 

 

 

(27

)

Unrealized (gain) loss on derivatives

 

 

(5

)

 

 

1

 

Other asset impairment charges

 

 

 

 

 

(2

)

Gain on sale of businesses and noncurrent assets

 

 

(27

)

 

 

 

Non-cash portion of employee benefit obligations

 

 

(10

)

 

 

(21

)

Non-cash portion of operating lease expense

 

 

19

 

 

 

20

 

Amortization of OID and DIC

 

 

1

 

 

 

1

 

Loss on extinguishment of debt

 

 

 

 

 

1

 

Equity based compensation

 

 

4

 

 

 

4

 

Other non-cash items, net

 

 

2

 

 

 

(2

)

Change in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(11

)

 

 

(51

)

Inventories

 

 

(115

)

 

 

(35

)

Other current assets

 

 

9

 

 

 

(3

)

Accounts payable

 

 

66

 

 

 

41

 

Operating lease payments

 

 

(19

)

 

 

(19

)

Income taxes payable/receivable

 

 

(1

)

 

 

25

 

Accrued and other current liabilities

 

 

59

 

 

 

13

 

Employee benefit obligation contributions

 

 

(1

)

 

 

 

Other assets and liabilities

 

 

4

 

 

 

4

 

Net cash provided by operating activities

 

 

120

 

 

 

9

 

Cash used in investing activities

 

 

 

 

 

 

 

 

Acquisition of property, plant and equipment

 

 

(50

)

 

 

(60

)

Acquisition of business, net of cash acquired

 

 

(2

)

 

 

 

Disposal of businesses and joint venture equity interests, net of cash disposed

 

 

47

 

 

 

(6

)

Net cash used in investing activities

 

 

(5

)

 

 

(66

)

Cash used in financing activities

 

 

 

 

 

 

 

 

Long-term debt repayments

 

 

(6

)

 

 

(62

)

Premium on redemption of long-term debt

 

 

 

 

 

(1

)

Dividends paid to common shareholders

 

 

(18

)

 

 

(18

)

Other financing activities

 

 

(3

)

 

 

 

Net cash used in financing activities

 

 

(27

)

 

 

(81

)

Effect of exchange rate changes on cash and cash equivalents

 

 

 

 

 

(2

)

Increase (decrease) in cash and cash equivalents

 

 

88

 

 

 

(140

)

Cash and cash equivalents, including amounts classified as held for sale, as of beginning of the period

 

 

214

 

 

 

468

 

Cash and cash equivalents as of end of the period

 

$

302

 

 

$

328

 

Cash and cash equivalents are comprised of:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

283

 

 

$

328

 

Cash and cash equivalents classified as assets held for sale

 

 

19

 

 

 

 

Cash and cash equivalents as of end of the period

 

$

302

 

 

$

328

 

Cash paid (received):

 

 

 

 

 

 

 

 

Interest

 

$

22

 

 

$

20

 

Income taxes paid (refunded), net

 

 

19

 

 

 

(16

)

Significant non-cash investing and financing activities

During the three months ended March 31, 2022 and 2021, we recognized operating lease right-of-use assets and lease liabilities of $10 million and $33 million, respectively.

See accompanying notes to the condensed consolidated financial statements.

 

7


Pactiv Evergreen Inc.

Notes to the Condensed Consolidated Financial Statements

(In millions, except per share data and unless otherwise indicated)

(Unaudited)

 

 

Note 1. Nature of Operations and Basis of Presentation

The accompanying condensed consolidated financial statements comprise the