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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_______________________________________________________________________________________
FORM 10-Q
_______________________________________________________________________________________
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-39205
_______________________________________________________________________________________
REYNOLDS CONSUMER PRODUCTS INC.
(Exact name of Registrant as specified in its charter)
_______________________________________________________________________________________
Delaware45-3464426
(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: (800) 879-5067
(Registrant’s telephone number, including area code)
_______________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading
Symbol
Name of each exchange on which registered
Common stock, $0.001 par valueREYNThe 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 þ No o
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 þ No o
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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filerþAccelerated filero
Non-accelerated fileroSmaller reporting companyo
Emerging growth companyo
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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ
As of July 31, 2024, the registrant had 210,138,321 shares of common stock, $0.001 par value per share, outstanding.


Table of Contents

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i

FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q 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,” “intends,” “outlook,” “forecast,” “position,” “committed,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “model,” “assumes,” “confident,” “look forward,” “potential,” “on track,” or “continue,” or 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 and anticipated trends in 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 risks and uncertainties discussed in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and as updated in our Quarterly Reports on Form 10-Q. You should specifically consider the numerous risks outlined in the “Risk Factors” sections. These risks and uncertainties include factors related to:

changes in consumer preferences, lifestyle, economic circumstances and environmental concerns;
relationships with our major customers, consolidation of our customer bases and loss of a significant customer;
competition and pricing pressures;
loss of, or disruption at, any of our key manufacturing facilities;
our suppliers of raw materials and any interruption in our supply of raw materials;
loss due to an accident, labor issues, weather conditions, natural disaster, or disease outbreak, including epidemics, pandemics or similar widespread public health concerns;
costs of raw materials, energy, labor and freight, including the impact of tariffs, trade sanctions and similar matters affecting our importation of certain raw materials;
labor shortages and increased labor costs;
our ability to develop and maintain brands that are critical to our success;
economic downturns in our target markets;
our ability to acquire businesses;
impacts from inflationary trends;
difficulty meeting our sales growth objectives and innovation goals; and
changes in market interest rates and the availability of capital.
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. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We are under no duty to update any of these forward-looking statements after the date of this Quarterly Report on Form 10-Q to conform our prior statements to actual results or revised expectations.
Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed on February 7, 2024, under Part I, Item 1A. “Risk Factors” and as updated in our Quarterly Reports on Form 10-Q.
1

PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
Reynolds Consumer Products Inc.
Condensed Consolidated Statements of Income
(in millions, except for per share data)
(Unaudited)

For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2024202320242023
Net revenues$914 $922 $1,726 $1,774 
Related party net revenues16 18 38 40 
Total net revenues930 940 1,764 1,814 
Cost of sales(674)(712)(1,306)(1,430)
Gross profit256 228 458 384 
Selling, general and administrative expenses(116)(107)(227)(212)
Other income (expense), net (1) (1)
Income from operations140 120 231 171 
Interest expense, net(25)(31)(51)(60)
Income before income taxes115 89 180 111 
Income tax expense(18)(23)(35)(28)
Net income$97 $66 $145 $83 
Earnings per share:
Basic$0.46 $0.32 $0.69 $0.40 
Diluted$0.46 $0.32 $0.69 $0.40 
Weighted average shares outstanding:
Basic210.1 210.0 210.1 210.0 
Effect of dilutive securities0.1  0.1  
Diluted210.2 210.0 210.2 210.0 

See accompanying notes to the condensed consolidated financial statements.
2

Reynolds Consumer Products Inc.
Condensed Consolidated Statements of Comprehensive Income
(in millions)
(Unaudited)

For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2024202320242023
Net income$97 $66 $145 $83 
Other comprehensive (loss) income, net of income taxes:
Currency translation adjustment  (1) 
Employee benefit plans(2)(1)(3)(2)
Derivative instruments 14 5 2 
Other comprehensive (loss) income, net of income taxes(2)13 1  
Comprehensive income$95 $79 $146 $83 


See accompanying notes to the condensed consolidated financial statements.
3

Reynolds Consumer Products Inc.
Condensed Consolidated Balance Sheets
(in millions, except for per share data)

(Unaudited)
As of June 30,
2024
As of December 31,
2023
Assets
Cash and cash equivalents$101 $115 
Accounts receivable (net of allowance for doubtful accounts of $1 and $1)
371 347 
Other receivables5 7 
Related party receivables7 7 
Inventories584 524 
Other current assets45 41 
Total current assets1,113 1,041 
Property, plant and equipment (net of accumulated depreciation of $938 and $897)
729 732 
Operating lease right-of-use assets, net79 56 
Goodwill1,895 1,895 
Intangible assets, net987 1,001 
Other assets62 55 
Total assets$4,865 $4,780 
Liabilities
Accounts payable$310 $219 
Related party payables29 34 
Current operating lease liabilities19 16 
Income taxes payable1 22 
Accrued and other current liabilities164 187 
Total current liabilities523 478 
Long-term debt1,784 1,832 
Long-term operating lease liabilities63 42 
Deferred income taxes359 357 
Long-term postretirement benefit obligation16 16 
Other liabilities80 72 
Total liabilities$2,825 $2,797 
Commitments and contingencies (Note 7)
Stockholders’ equity
Common stock, $0.001 par value; 2,000 shares authorized; 210.1 shares issued and outstanding
  
Additional paid-in capital1,404 1,396 
Accumulated other comprehensive income51 50 
Retained earnings585 537 
Total stockholders’ equity2,040 1,983 
Total liabilities and stockholders’ equity$4,865 $4,780 

See accompanying notes to the condensed consolidated financial statements.
4

Reynolds Consumer Products Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(in millions, except for per share data)
(Unaudited)

Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Total
Equity
Balance as of December 31, 2022$ $1,385 $431 $52 $1,868 
Net income— — 17 — 17 
Other comprehensive loss, net of income taxes— — — (13)(13)
Dividends ($0.23 per share declared and paid)
— — (48)— (48)
Other— 1 — — 1 
Balance as of March 31, 2023$ $1,386 $400 $39 $1,825 
Net income— — 66 — 66 
Other comprehensive income, net of income taxes— — — 13 13 
Dividends ($0.23 per share declared and paid)
— — (48)— (48)
Other— 3 — — 3 
Balance as of June 30, 2023$ $1,389 $418 $52 $1,859 
Balance as of December 31, 2023$ $1,396 $537 $50 $1,983 
Net income— — 49 — 49 
Other comprehensive income, net of income taxes— — — 3 3 
Dividends ($0.23 per share declared and paid)
— — (48)— (48)
Other— 3 (1)— 2 
Balance as of March 31, 2024$ $1,399 $537 $53 $1,989 
Net income— — 97 — 97 
Other comprehensive loss, net of income taxes— — — (2)(2)
Dividends ($0.23 per share declared and paid)
— — (48)— (48)
Other— 5 (1)— 4 
Balance as of June 30, 2024$ $1,404 $585 $51 $2,040 



See accompanying notes to the condensed consolidated financial statements.
5

Reynolds Consumer Products Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(Unaudited)
Six Months Ended
June 30,
20242023
Cash provided by operating activities
Net income$145 $83 
Adjustments to reconcile net income to operating cash flows:
Depreciation and amortization63 61 
Deferred income taxes 2 
Stock compensation expense9 6 
Change in assets and liabilities:
Accounts receivable, net(23)(38)
Other receivables2 11 
Related party receivables  
Inventories(60)108 
Accounts payable92 (15)
Related party payables(5)(12)
Income taxes payable / receivable(22)(11)
Accrued and other current liabilities(21)19 
Other assets and liabilities3 (7)
Net cash provided by operating activities183 207 
Cash used in investing activities
Acquisition of property, plant and equipment(48)(51)
Net cash used in investing activities(48)(51)
Cash used in financing activities
Repayment of long-term debt(50)(12)
Dividends paid(96)(96)
Other financing activities(3)(3)
Net cash used in financing activities(149)(111)
Net (decrease) increase in cash and cash equivalents(14)45 
Cash and cash equivalents at beginning of period115 38 
Cash and cash equivalents at end of period$101 $83 
Cash paid:
Interest - long-term debt, net of interest rate swaps51 58 
Income taxes56 36 


See accompanying notes to the condensed consolidated financial statements.
6

Reynolds Consumer Products Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
Note 1 – Description of Business and Basis of Presentation
Description of Business:
Reynolds Consumer Products Inc. and its subsidiaries (“we”, “us” or “our”) produce and sell products across three broad categories: cooking products, waste and storage products and tableware. We sell our products under brands such as Reynolds and Hefty, and also under store brands. Our product portfolio includes aluminum foil, wraps, disposable bakeware, trash bags, food storage bags and disposable tableware. We report four business segments: Reynolds Cooking & Baking; Hefty Waste & Storage; Hefty Tableware; and Presto Products.
Basis of Presentation:
We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for comprehensive annual financial statements.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2023, and should be read in conjunction with the disclosures therein. In our opinion, these interim condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly the financial condition, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of annual operating results.
Non-Cash Lease Transactions:
We recorded $32 million in new operating lease right-of-use assets obtained in exchange for lease liabilities during the six months ended June 30, 2024. New operating lease right-of-use assets obtained in exchange for lease liabilities during the six months ended June 30, 2023, were not material.
New finance lease right-of-use assets obtained in exchange for lease liabilities for the six months ended June 30, 2024 and 2023, were not material.

Supply Chain Financing:

In March 2023, we initiated a voluntary Supply Chain Finance program (the “SCF”) with a global financial institution (the “SCF Bank”). Under the SCF, qualifying suppliers may elect to sell their receivables from us to the SCF Bank. These participating suppliers negotiate their receivables sales arrangements directly with the SCF Bank. We are not party to those agreements, nor do we provide any security or other forms of guarantees to the SCF Bank. The participation in the program is at the sole discretion of the supplier, we have no economic interest in a supplier’s decision to enter into the agreement and have no direct financial relationship with the SCF Bank, as it relates to the SCF. Once a qualifying supplier elects to participate in the SCF and reaches an agreement with the SCF Bank, they elect which individual invoices they sell to the SCF Bank.

The terms of our payment obligations are not impacted by a supplier’s participation in the SCF and as such, the SCF has no impact on our balance sheets, cash flows, or liquidity. Our payment terms with our suppliers for similar services and materials within individual markets are consistent between suppliers that elect to participate in the SCF and those that do not participate.

All outstanding amounts related to suppliers participating in the SCF are recorded within accounts payable in our condensed consolidated balance sheet and associated payments are included as an operating cash flow in the condensed consolidated statement of cash flows. As of June 30, 2024, the amount of obligations outstanding that we have confirmed as valid under the SCF was $9 million. As of December 31, 2023, the amount of obligations outstanding that we had confirmed as valid under the SCF was $19 million.

7


Note 2 – New Accounting Standards
Recently Adopted Accounting Guidance:
In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. These amendments require disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. These amendments were effective for fiscal years beginning after December 31, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 31, 2023. We adopted the standard as of January 1, 2023, other than the amendment on rollforward information, which will be adopted prospectively in our Annual Report on Form 10-K for the year ending December 31, 2024 as required. The adoption relates to disclosure only, and does not have an impact on our condensed consolidated financial statements.

Accounting Guidance Issued But Not Yet Adopted:

In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280), which enhances disclosures about significant segment expenses by requiring disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently assessing the impact of this standard on our consolidated financial statements.

In December 2023, FASB issued ASU 2023-09, Income Taxes (Topic 740), which enhances disclosures within the income tax rate reconciliation and information disclosed related to income taxes paid, and requires disaggregation of certain financial statement captions between domestic, foreign, federal and state. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently assessing the impact of this standard on our consolidated financial statements.

In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, which will require public companies to include climate-related disclosures in their annual reports and registration statements. The final rules will require, among other matters, information about climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, a registrant, including on its strategy, results of operations, or financial condition. In addition, under the final rules, certain disclosures related to severe weather events and other natural conditions will be required in the audited financial statements. The disclosure requirements related to financial statements are expected to be effective for our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. We are currently assessing the impact of these rules on our consolidated financial statements and related disclosures.
Note 3 – Inventories
Inventories consisted of the following:
June 30,
2024
December 31,
2023
(in millions)
Raw materials$142 $153 
Work in progress58 60 
Finished goods327 260 
Spare parts57 51 
Inventories$584 $524 

8


Note 4 – Debt
Long-term debt consisted of the following:

June 30,
2024
December 31,
2023
(in millions)
Term loan facility$1,795 $1,845 
Deferred financing transaction costs(10)(12)
Original issue discounts(1)(1)
1,784 1,832 
Less: current portion  
Long-term debt$1,784 $1,832 

External Debt Facilities
In February 2020, we entered into new external debt facilities (“External Debt Facilities”), which consist of (i) a $2,475 million senior secured term loan facility (“Term Loan Facility”); and (ii) a $250 million senior secured revolving credit facility (“Revolving Facility”). In February 2023, we amended the External Debt Facilities (“Amendment No.1”) which replaced the interest rate benchmark from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”). Additionally, in November 2023, we further amended the External Debt Facilities (“Amendment No. 2”) to extend the maturity of the Revolving Facility by one year. Other than the foregoing, the material terms of the External Debt Facilities, as amended by Amendment No. 1 and Amendment No. 2 (“Amended External Debt Facilities”) remain unchanged, and our election to use practical expedients under ASU 2020-04 and ASU 2021-01 resulted in no material impacts on our condensed consolidated financial statements.
Borrowings under the Amended External Debt Facilities bear interest at a rate per annum equal to, at our option, either a base rate plus an applicable margin of 0.75% or a SOFR plus an applicable margin of 1.75%. We have entered into a series of interest rate swaps to hedge a portion of the interest rate exposure resulting from these borrowings. Refer to Note 5 – Financial Instruments for further details.
The Amended External Debt Facilities contain a springing financial covenant requiring compliance with a ratio of first lien net indebtedness to consolidated EBITDA, applicable solely to the Revolving Facility. The financial covenant is tested on the last day of any fiscal quarter only if the aggregate principal amount of borrowings under the Revolving Facility and drawn but unreimbursed letters of credit exceed 35% of the total amount of commitments under the Revolving Facility on such day. We are currently in compliance with the covenants contained in our Amended External Debt Facilities.
If an event of default occurs, the lenders under the Amended External Debt Facilities are entitled to take various actions, including the acceleration of amounts due under the Amended External Debt Facilities and all actions permitted to be taken by secured creditors.
Term Loan Facility
The Term Loan Facility matures in February 2027. The Term Loan Facility amortizes in equal quarterly installments of $6 million, which commenced in June 2020, with the balance payable on maturity. During the year ended December 31, 2023, we made voluntary principal payments of $250 million related to our Term Loan Facility, which were first applied to pay the remaining quarterly amortization payments in full, with the residual balance applied to the outstanding principal balance due at maturity. During the three months ended June 30, 2024, we made a voluntary principal payment of $50 million related to our Term Loan Facility, which was applied to the outstanding principal balance due at maturity.
Revolving Facility
In November 2023, we amended the External Debt Facilities to extend the maturity date of the Revolving Facility by one year. The Revolving Facility matures in February 2026 and includes a sub-facility for letters of credit. As of June 30, 2024, we had no outstanding borrowings under the Revolving Facility, and we had $6 million of letters of credit outstanding, which reduces the borrowing capacity under the Revolving Facility.
9


Fair Value of Our Long-Term Debt
The fair value of our long-term debt as of June 30, 2024, which is a Level 2 fair value measurement, approximates the carrying value due to the variable market interest rate and the stability of our credit profile.
Note 5 - Financial Instruments
Interest Rate Derivatives
During 2020 and 2022, we entered into a series of interest rate swaps to fix the LIBOR of our External Debt Facilities. In February 2023, we amended our interest rate swaps to replace the interest rate benchmark from the LIBOR to SOFR. Other than the foregoing, the material terms of the interest rate swap agreements remained unchanged, and our election to use practical expedients under ASUs 2020-04 and 2021-01, resulted in no material impacts on our condensed consolidated financial statements. The aggregate notional amount of the interest rate swaps still in effect as of June 30, 2024 was $1,150 million, and the SOFR is fixed at an annual rate of 0.40% to 3.40% (for an annual effective interest rate of 2.15% to 5.15%, including margin).
The interest rate swaps outstanding as of June 30, 2024 hedge a portion of the interest rate exposure resulting from our Term Loan Facility for a period of approximately one to two years. We classified these instruments as cash flow hedges. The effective portion of the gain or loss on the open hedging instrument is recorded in accumulated other comprehensive income and is reclassified into earnings as interest expense, net when settled. The associated asset or liability on the open hedges is recorded at its fair value in other assets or other liabilities, as applicable. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based swap yield curves, taking into account current interest rates, and is classified as Level 2 within the fair value hierarchy.
The following table provides the notional amounts, the annual rates, the weighted average annual effective rates, and the fair value of our interest rate derivatives:

(In millions)Notional AmountAnnual RateWeighted Average Annual
Effective Rate
Fair Value - Other Current AssetsFair Value - Other Assets
As of June 30, 2024$1,150 
2.15% to 5.15%
4.38 %$26 $8 
As of December 31, 2023$1,150 
2.15% to 5.15%
4.38 %$23 $7 

Note 6 Stock-based Compensation
Our equity incentive plan was established in 2020, for purposes of granting stock-based compensation awards to certain members of our senior management, our non-executive directors and to certain employees, to incentivize their performance and align their interests with ours. We have granted restricted stock units (“RSUs”) to certain employees and non-employee directors that have a service-based vesting condition. In addition, we have granted performance stock units (“PSUs”) to certain members of management that have a performance-based vesting condition. We account for forfeitures of outstanding but unvested grants in the period they occur. A maximum of 10.5 million shares of common stock were initially available for issuance under equity incentive awards granted pursuant to the plan. In the three and six months ended June 30, 2024, zero and 0.3 million RSUs and zero and 0.3 million PSUs were granted, respectively.
As of June 30, 2024, there were stock-based compensation awards representing 1.4 million shares outstanding compared to 0.8 million shares outstanding as of December 31, 2023. Stock-based compensation expense was $5 million and $9 million for the three and six months ended June 30, 2024, respectively, compared to $3 million and $6 million in the comparable prior year periods.
10


Note 7 – Commitments and Contingencies
Legal Proceedings:
We are from time to time party to litigation, legal proceedings and tax examinations arising from our operations. Most of these matters involve allegations of damages against us relating to employment matters, consumer complaints, advertising/labelling claims, personal injury and commercial or contractual disputes. We record estimates for claims and proceedings that constitute a present obligation when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of such obligation can be made. While it is not possible to predict the outcome of any of these matters, based on our assessment of the facts and circumstances as of June 30, 2024, we do not believe any of these matters, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our financial position, results of operations or cash flows in a future period.
Note 8 – Accumulated Other Comprehensive Income
The following table summarizes the changes in our balances of each component of accumulated other comprehensive income.
(In millions)Currency Translation AdjustmentsEmployee Benefit PlansDerivative InstrumentsAccumulated Other Comprehensive Income
Balance as of December 31, 2022$(7)$23 $36 $52 
Loss arising during the period— — (10)(10)
Reclassification to earnings— (1)(6)(7)
Effect of deferred taxes— — 4 4 
Balance as of March 31, 2023$(7)$22 $24 $39 
Gain arising during the period— — 25 25 
Reclassification to earnings— (1)(7)(8)
Effect of deferred taxes— — (4)(4)
Balance as of June 30, 2023$(7)$21 $38 $52 
Balance as of December 31, 2023$(7)$34 $23 $50 
Gain (loss) arising during the period(1)— 15 14 
Reclassification to earnings— (1)(8)(9)
Effect of deferred taxes— — (2)(2)
Balance as of March 31, 2024$(8)$33 $28 $53 
Gain arising during the period— — 8 8 
Reclassification to earnings— (2)(8)(10)
Effect of deferred taxes— — —  
Balance as of June 30, 2024$(8)$31 $28 $51 

Note 9 - Income Taxes
For the three months ended June 30, 2024, we recorded income tax expense of $18 million on income before income taxes of $115 million, or an effective tax rate of 16.0%, compared to income tax expense of $23 million on income before income taxes of $89 million, or an effective tax rate of 25.4%, for the three months ended June 30, 2023.
For the six months ended June 30, 2024, we recorded income tax expense of $35 million on income before income taxes of $180 million, or an effective tax rate of 19.2%, compared to income tax expense of $28 million on income before income taxes of $111 million, or an effective tax rate of 25.3% for the six months ended June 30, 2023.
For the three and six months ended June 30, 2024, our income tax expense included a discrete tax benefit for the remeasurement of deferred tax liabilities due to a change in our state tax rates after apportionment.
11


Note 10Segment Information
Our Chief Executive Officer, who has been identified as our Chief Operating Decision Maker (“CODM”), has evaluated how he views and measures our performance. In applying the criteria set forth in the standards for reporting information about segments in financial statements, we have determined that we have four reportable segments - Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware and Presto Products. The key factors used to identify these reportable segments are the organization and alignment of our internal operations and the nature of our products. This reflects how our CODM monitors performance, allocates capital and makes strategic and operational decisions. Our segments are described as follows:
Reynolds Cooking & Baking
Our Reynolds Cooking & Baking segment produces branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners. Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and EZ Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America.
Hefty Waste & Storage
Our Hefty Waste & Storage segment produces both branded and store brand trash and food storage bags. Our branded products are sold under the Hefty Ultra Strong and Hefty Strong brands for trash bags, and as the Hefty and Baggies brands for our food storage bags.
Hefty Tableware
Our Hefty Tableware segment sells both branded and store brand disposable and compostable plates, bowls, platters, cups and cutlery. Our Hefty branded products include dishes and party cups.
Presto Products
Our Presto Products segment primarily sells store brand products in four main categories: food storage bags, trash bags, reusable storage containers and plastic wrap. Our Presto Products segment also includes our specialty business, which serves other consumer products companies by providing Fresh-Lock and Slide-Rite resealable closure systems.
Information by Segment
We present segment adjusted EBITDA (“Adjusted EBITDA”) as this is the financial measure by which management and our CODM allocate resources and analyze the performance of our reportable segments.
Adjusted EBITDA represents each segment’s earnings before interest, tax, depreciation and amortization and may be further adjusted to exclude certain non-recurring costs, if applicable.
Total assets by segment are those assets directly associated with the respective operating activities, comprising inventory, property, plant and equipment and operating lease right-of-use assets. Other assets, such as cash, accounts receivable and intangible assets, are monitored on an entity-wide basis and not included in segment information that is regularly reviewed by our CODM.
Transactions between segments are at negotiated prices.

12


 Reynolds
Cooking
& Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Segment
Total
Unallocated(1)
Total
Three Months Ended June 30, 2024(in millions)
Net revenues$304 $236 $245 $147 $932 $(2)$930 
Intersegment revenues 2  3 5 (5) 
Total segment net revenues$304 $238 $245 $150 $937 $(7)$930 
Adjusted EBITDA56 69 39 37 201  
Depreciation and amortization8 5 4 5 22 10 32 
Reynolds
Cooking
& Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Segment
Total
Unallocated(1)
Total
Three Months Ended June 30, 2023(in millions)
Net revenues$321 $227 $251 $144 $943 $(3)$940 
Intersegment revenues 2  1 3 (3) 
Total segment net revenues$321 $229 $251 $145 $946 $(6)$940 
Adjusted EBITDA40 62 45 28 175  
Depreciation and amortization7 5 4 5 21 9 30 

Reynolds
Cooking
& Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Segment
Total
Unallocated(1)
Total
Six Months Ended June 30, 2024(in millions)
Net revenues$568 $462 $450 $287 $1,767 $(3)$1,764 
Intersegment revenues 6  6 12 (12) 
Total segment net revenues$568 $468 $450 $293 $1,779 $(15)$1,764 
Adjusted EBITDA89 134 70 66 359 
Depreciation and amortization16 9 8 11 44 19 63 
Reynolds
Cooking
& Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Segment
Total
Unallocated(1)
Total
Six Months Ended June 30, 2023(in millions)
Net revenues$604 $457 $475 $285 $1,821 $(7)$1,814 
Intersegment revenues 6  3 9 (9) 
Total segment net revenues$604 $463 $475 $288 $1,830 $(16)$1,814 
Adjusted EBITDA43 117 76 47 283 
Depreciation and amortization14 10 8 11 43 18 61 


13


Segment assets consisted of the following:

Reynolds
Cooking
& Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Segment
Total
Unallocated(1)
Total
(in millions)
As of June 30, 2024$584 $274 $234 $242 $1,334 $3,531 $4,865 
As of December 31, 2023556 267 216 239 1,278 3,502 4,780 

(1)Unallocated includes the elimination of intersegment revenues, other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets.
The following table presents a reconciliation of segment Adjusted EBITDA to GAAP income before income taxes:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions) (in millions)
Segment Adjusted EBITDA$201 $175 $359 $283 
Corporate / unallocated expenses(29)(25)(65)(51)
172 150 294 232 
Adjustments to reconcile to GAAP income before income taxes  
Depreciation and amortization(32)(30)(63)(61)
Interest expense, net(25)(31)(51)(60)
Consolidated GAAP income before income taxes$115 $89 $180 $111 
Information in Relation to Products
Net revenues by product line are as follows:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions) (in millions)
Waste and storage products (1)
$388 $374 $761 $751 
Cooking products304 321 568 604 
Tableware245 251 450 475 
Unallocated(7)(6)(15)(16)
Net revenues$930 $940 $1,764 $1,814 

(1)Waste and storage products are comprised of our Hefty Waste & Storage and Presto Products segments.
Our different product lines are generally sold to a common group of customers. For all product lines, there is a relatively short time period between the receipt of the order and the transfer of control over the goods to the customer.

14


Note 11 – Related Party Transactions
Packaging Finance Limited (“PFL”) owns the majority of our outstanding common stock and owns the majority of the outstanding common stock of Pactiv Evergreen Inc. and its subsidiaries (“PEI Group”). We sell and purchase various goods and services with PEI Group under contractual arrangements that expire over a variety of periods through December 31, 2027. During the year ended December 31, 2023 and the six months ended June 30, 2024, we amended these contractual arrangements with PEI Group, which, among other things, extended the expiration date for certain arrangements. Transactions between us and PEI Group are described below.
For each of the three and six months ended June 30, 2024, revenues from products sold to PEI Group were $16 million and $38 million, respectively, compared to $18 million and $40 million in the comparable prior year periods. For the three and six months ended June 30, 2024, products purchased from PEI Group were $83 million and $163 million, respectively, compared to $93 million and $199 million in the comparable prior year periods. For the three and six months ended June 30, 2024, PEI Group charged us freight and warehousing costs of $7 million and $15 million, respectively, compared to $9 million and $18 million in the comparable prior year periods, which were included in cost of sales. The resulting related party receivables and payables are settled regularly in the normal course of business.
Furthermore, $36 million of the dividends paid during each of the three months ended June 30, 2024 and June 30, 2023, and $72 million of the dividends paid during each of the six months ended June 30, 2024 and June 30, 2023, were paid to PFL.


Note 12 – Subsequent Events
Quarterly Cash Dividend
On July 25, 2024, our Board of Directors approved a cash dividend of $0.23 per common share to be paid on August 30, 2024 to shareholders of record on August 16, 2024.
Term Loan Facility
Subsequent to June 30, 2024, we made a voluntary principal payment of $50 million related to our Term Loan Facility.
Except as described above, there have been no events subsequent to June 30, 2024 which would require accrual or disclosure in these condensed consolidated financial statements.
15


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Our management’s discussion and analysis is intended to help the reader understand our results of operations and financial condition and is provided as an addition to, and should be read in connection with, our condensed consolidated financial statements and the accompanying notes included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2023.
Description of the Company and its Business Segments
We are a market-leading consumer products company with a presence in 95% of households across the United States. We produce and sell products across three broad categories: cooking products, waste and storage products and tableware. We sell our products under iconic brands such as Reynolds and Hefty and also under store brands that are strategically important to our retail partners. Overall, across both our branded and store brand offerings, we hold the #1 or #2 U.S. market share position in the majority of product categories in which we participate. Over 65% of our revenue comes from products that are #1 in their respective categories. We have developed our market-leading position by investing in our product categories and consistently developing innovative products that meet the evolving needs and preferences of the modern consumer.
Our mix of branded and store brand products is a key competitive advantage that aligns our goal of growing the overall product categories where we have offerings. Our retail partners also measure their success in category growth, which positions us as a trusted strategic partner.
We manage our operations in four operating and reportable segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware and Presto Products:
Reynolds Cooking & Baking: Through our Reynolds Cooking & Baking segment, we sell both branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners. Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and EZ Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America. With our flagship Reynolds Wrap products, we hold the #1 market position in the U.S. consumer foil market measured by retail sales and volume. We also hold the #1 market position in the Canadian branded foil market under the ALCAN brand. We have no significant branded competitor in this market. Reynolds is one of the most recognized household brands in the United States and has been the top trusted brand in the consumer foil market for over 75 years, with greater than 50% market share in most of its categories.
Hefty Waste & Storage: Through our Hefty Waste & Storage segment, we produce both branded and store brand trash and food storage bags. Hefty is a well-recognized leader in the trash bag and food storage bag categories and our private label products offer value to our retail partners. Our branded products are sold under the Hefty Ultra Strong and Hefty Strong brands for trash bags, and as the Hefty and Baggies brands for our food storage bags. We have the #1 branded market share in the U.S. large black trash bag and slider bag segments, and the #2 branded market share in the tall kitchen trash bag segment. Our robust product portfolio in this segment includes a full suite of products, including sustainable solutions such as blue and clear recycling bags, compostable bags, bags made from recycled materials and orange bags through the Hefty ReNew Program.
Hefty Tableware: Through our Hefty Tableware segment, we sell both branded and store brand disposable and compostable plates, bowls, platters, cups and cutlery. Our Hefty branded products include dishes and party cups. Hefty branded party cups are the #1 party cup in America measured by market share. Our branded products use our Hefty brand to represent both quality and great value, and we bring this same quality and value promise to all of our store brands as well. We sell across a broad range of materials and price points in all retail channels, allowing our consumers to select the product that best suits their price, function and aesthetic needs. These materials include sustainable solutions, such as Hefty ECOSAVE™ and Hefty Compostable Printed Paper Plates.
Presto Products: Through our Presto Products segment, we primarily sell store brand products in four main categories: food storage bags, trash bags, reusable storage containers and plastic wrap. Presto Products is a market leader in food storage bags and differentiates itself by providing access to category management, consumer insights, marketing, merchandising and research and development (“R&D”) resources. Presto Products was the first in the U.S. market to offer a store branded sandwich bag made with an approximately 20% proprietary blend of plant and ocean, renewable materials. Our Presto Products segment also includes our specialty business, which serves other consumer products companies by providing Fresh-Lock and Slide-Rite resealable closure systems.
16


Overview
Total net revenues decreased 1% in the three months ended June 30, 2024 compared to the same period in 2023. The revenue decrease was due to lower volume in our non-retail business. Our retail net revenue grew by $6 million, in contrast to a $16 million decline in our lower-margin non-retail net revenue.
Total net revenues decreased 3% in the six months ended June 30, 2024 compared to the same period in 2023. The revenue decrease was primarily due to lower volume, 2% of which was in our lower-margin non-retail business and 1% of which was in our retail business.
During the three months ended June 30, 2024, our net income increased by 47%, driven by lower material and manufacturing costs, as well as a reduction in interest expense as a result of a lower outstanding principal balance due to repayments made on our term loan facility and lower income tax expense primarily due to a discrete tax benefit in the quarter. These were partially offset by higher selling, general and administrative expenses.
During the six months ended June 30, 2024, our net income increased by 75%, primarily driven by declines in material and manufacturing costs, as well as a reduction in interest expense as a result of a lower outstanding principal balance due to repayments made on our term loan facility. These were partially offset by higher selling, general and administrative expenses.
Non-GAAP Measures
In this Quarterly Report on Form 10-Q we use the non-GAAP financial measure “Adjusted EBITDA”, which is a non- GAAP measure.
We define Adjusted EBITDA as net income calculated in accordance with GAAP, plus the sum of income tax expense, net interest expense, depreciation and amortization and as may be further adjusted to exclude certain non-recurring items, if applicable.
We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. In addition, our chief operating decision maker uses Adjusted EBITDA of each reportable segment to evaluate the operating performance of such segments. Accordingly, we believe presenting this measure provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors.
Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.
The following table presents a reconciliation of our net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions)(in millions)
Net income – GAAP$97 $66 $145 $83 
Income tax expense18 23 35 28 
Interest expense, net25 31 51 60 
Depreciation and amortization32 30 63 61 
Adjusted EBITDA (Non-GAAP)$172 $150 $294 $232 

Results of Operations – Three Months Ended June 30, 2024
The following discussion should be read in conjunction with our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Detailed comparisons of revenue and results are presented in the discussions of the operating segments, which follow our consolidated results discussion.
17


Certain discussions in this section provide a breakdown of net revenues between our retail and non-retail businesses. Our retail business net revenues consist of sales to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets and eCommerce retailers. Our non-retail business net revenues consist of aluminum sales to food service customers, which are classified as related party revenues, and industrial customers.
Aggregation of Segment Revenue and Adjusted EBITDA

(in millions)Reynolds
Cooking &
Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Unallocated⁽1
Total
Reynolds
Consumer
Products
Net revenues for the three months ended June 30:
2024$304 $238 $245 $150 $(7)$930 
2023321 229 251 145 (6)940 
Adjusted EBITDA⁽²⁾ for the three months ended June 30:
2024$56 $69 $39 $37 $(29)$172 
202340 62 45 28 (25)150 

(1)The unallocated net revenues include elimination of intersegment revenues and other revenue adjustments. The unallocated Adjusted EBITDA represents the combination of corporate expenses which are not allocated to our segments and other unallocated revenue adjustments.
(2)Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” for details, including a reconciliation between net income and Adjusted EBITDA.

Three Months Ended June 30, 2024 Compared with the Three Months Ended June 30, 2023
Total Reynolds Consumer Products

For the Three Months Ended June 30,
(in millions, except for %)2024% of
Revenue
2023% of
Revenue
Change% Change
Net revenues$91498%$92298%$(8)(1)%
Related party net revenues162%182%(2)(11)%
Total net revenues930100%940100%(10)(1)%
Cost of sales(674)(72)%(712)(76)%38 5%
Gross profit25628%22824%28 12%
Selling, general and administrative expenses(116)(12)%(107)(11)%(9)(8)%
Other expense, net%(1)%NM
Income from operations14015%12013%20 17%
Interest expense, net(25)(3)%(31)(3)%19%
Income before income taxes11512%899%26 29%
Income tax expense(18)(2)%(23)(2)%22%
Net income$9710%$667%$31 47%
Adjusted EBITDA ⁽¹⁾$17218%$15016%$22 15%
_________________________________________
NM - Percentage change is not meaningful.
(1)Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” for details, including a reconciliation between net income and Adjusted EBITDA.
18


Components of Change in Net Revenues for the Three Months Ended June 30, 2024 vs. the Three Months Ended June 30, 2023

PriceVolume/MixTotal
RetailNon-Retail
Reynolds Cooking & Baking%%(5)%(5)%
Hefty Waste & Storage2%2%%4%
Hefty Tableware(1)%(1)%%(2)%
Presto Products1%2%%3%
Total RCP%%(1)%(1)%

Total Net Revenues. Total net revenues decreased by $10 million, or 1%, to $930 million. The decrease was driven by lower volume in our non-retail business. Our retail net revenue increased by $6 million, in contrast to a $16 million decline in our lower-margin non-retail net revenue.

Cost of Sales. Cost of sales decreased by $38 million, or 5%, to $674 million. The decrease was primarily driven by lower material and manufacturing costs and lower volume.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $9 million, or 8%, to $116 million, primarily due to higher personnel and advertising costs.

Other Expense, Net. Other expense, net was zero in the three months ended June 30, 2024 compared to $1 million in the three months ended June 30, 2023.

Interest Expense, Net. Interest expense, net decreased by $6 million, or 19%, to $25 million. The decrease was primarily due to a lower outstanding principal balance as a result of voluntary principal payments made on our term loan facility.

Income Tax Expense. Our effective tax rate declined by 9.4%, from 25.4% for the three months ended June 30, 2023 to 16.0% for the three months ended June 30, 2024. The decrease was primarily due to the recognition of a discrete tax benefit for the remeasurement of deferred tax liabilities.

Adjusted EBITDA. Adjusted EBITDA increased by $22 million, or 15%, to $172 million. The increase in Adjusted EBITDA was primarily due to lower material and manufacturing costs, partially offset by higher selling, general and administrative expenses.
Segment Information
Reynolds Cooking & Baking
For the Three Months Ended June 30,
(in millions, except for %)20242023Change% Change
Retail net revenues$265 $266 (1)— 
Non-retail net revenues$39 $55 (16)(29)
Total segment net revenues$304 $321 $(17)(5)%
Segment Adjusted EBITDA56 40 16 40%
Segment Adjusted EBITDA Margin18%12%

Total Segment Net Revenues. Reynolds Cooking & Baking total segment net revenues decreased by $17 million, or 5%, to $304 million. The decrease in net revenues was primarily due to a $16 million decline in our non-retail business.
Adjusted EBITDA. Reynolds Cooking & Baking Adjusted EBITDA increased by $16 million, or 40%, to $56 million. The increase in Adjusted EBITDA was primarily driven by lower material and manufacturing costs.
19


Hefty Waste & Storage
For the Three Months Ended June 30,
(in millions, except for %)20242023Change% Change
Total segment net revenues$238 $229 $4%
Segment Adjusted EBITDA69 62 11%
Segment Adjusted EBITDA Margin29 %27 %

Total Segment Net Revenues. Hefty Waste & Storage total segment net revenues increased $9 million, or 4%, to $238 million. The increase in net revenues was primarily due to higher pricing due to timing of promotional spend and increased volume.
Adjusted EBITDA. Hefty Waste & Storage Adjusted EBITDA increased by $7 million, or 11%, to $69 million. The increase in Adjusted EBITDA was primarily driven by lower material and manufacturing costs and the benefit from increased revenue, partially offset by higher advertising costs.
Hefty Tableware
For the Three Months Ended June 30,
(in millions, except for %)20242023Change% Change
Total segment net revenues$245 $251 $(6)(2)%
Segment Adjusted EBITDA39 45 (6)(13)%
Segment Adjusted EBITDA Margin16 %18 %

Total Segment Net Revenues. Hefty Tableware total segment net revenues decreased by $6 million, or 2%, to $245 million. The decrease in net revenues was primarily due to lower pricing and volume.
Adjusted EBITDA. Hefty Tableware Adjusted EBITDA decreased by $6 million, or 13%, to $39 million. The decrease in Adjusted EBITDA was primarily driven by higher material and manufacturing costs and the impact of lower revenue.
Presto Products
For the Three Months Ended June 30,
(in millions, except for %)20242023Change% Change
Total segment net revenues$150 $145 $3%
Segment Adjusted EBITDA37 28 32%
Segment Adjusted EBITDA Margin25 %19 %

Total Segment Net Revenues. Presto Products total segment net revenues increased by $5 million, or 3%, to $150 million. The increase in net revenues was primarily due to higher volume and higher pricing associated with the contractual pass through of commodity costs.
Adjusted EBITDA. Presto Products Adjusted EBITDA increased by $9 million, or 32%, to $37 million. The increase in Adjusted EBITDA was primarily driven by lower material and manufacturing costs and the benefit from increased revenue.
Results of Operations – Six Months Ended June 30, 2024
The following discussion should be read in conjunction with our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Detailed comparisons of revenue and results are presented in the discussions of the operating segments, which follow our consolidated results discussion.
20


Aggregation of Segment Revenue and Adjusted EBITDA

(in millions)Reynolds
Cooking &
Baking
Hefty
Waste &
Storage
Hefty
Tableware
Presto
Products
Unallocated⁽1
Total
Reynolds
Consumer
Products
Net revenues for the six months ended June 30:
2024$568 $468 $450 $293 $(15)$1,764 
2023604 463 475 288 (16)1,814 
Adjusted EBITDA⁽²⁾ for the six months ended June 30:
2024$89 $134 $70 $66 $(65)$294 
202343 117 76 47 (51)232 

(1)The unallocated net revenues include elimination of intersegment revenues and other revenue adjustments. The unallocated Adjusted EBITDA represents the combination of corporate expenses which are not allocated to our segments and other unallocated revenue adjustments.
(2)Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” for details, including a reconciliation between net income and Adjusted EBITDA.

Six Months Ended June 30, 2024 Compared with the Six Months Ended June 30, 2023
Total Reynolds Consumer Products
For the Six Months Ended June 30,
(in millions, except for %)2024% of
Revenue
2023% of
Revenue
Change% Change
Net revenues$1,726 98%$1,774 98%$(48)(3)%
Related party net revenues38 2%40 2%(2)(5)%
Total net revenues1,764 100%1,814 100%(50)(3)%
Cost of sales(1,306)(74)%(1,430)(79)%124 9%
Gross profit458 26%384 21%74 19%
Selling, general and administrative expenses(227)(13)%(212)(12)%(15)(7)%
Other expense, net— %(1)%NM%
Income from operations231 13%171 9%60 35%
Interest expense, net(51)(3)%(60)(3)%15%
Income before income taxes180 10%111 6%69 62%
Income tax expense(35)(2)%(28)(2)%(7)(25)%
Net income$145 8%$83 5%$62 75%
Adjusted EBITDA ⁽¹⁾$294 17%$232 13%$62 27%
_________________________________________
NM - Percentage change is not meaningful.
(1)Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” for details, including a reconciliation between net income and Adjusted EBITDA.
21


Components of Change in Net Revenues for the Six Months Ended June 30, 2024 vs. the Six Months Ended June 30, 2023
PriceVolume/MixTotal
RetailNon-Retail
Reynolds Cooking & Baking%(1)%(5)%(6)%
Hefty Waste & Storage1%%%1%
Hefty Tableware(2)%(3)%%(5)%
Presto Products1%1%%2%
Total RCP%(1)%(2)%(3)%

Total Net Revenues. Total net revenues decreased by $50 million, or 3%, to $1,764 million. The decrease was driven by a $35 million decline in our lower-margin non-retail net revenue as well as a $15 million decline in our retail net revenue.

Cost of Sales. Cost of sales decreased by $124 million, or 9%, to $1,306 million. The decrease was driven by lower material and manufacturing costs, as well as lower volume.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $15 million, or 7%, to $227 million primarily due to higher personnel and advertising costs.

Other Expense, Net. Other expense, net was zero in the six months ended June 30, 2024 compared to $1 million in the six months ended June 30, 2023.

Interest Expense, Net. Interest expense, net decreased by $9 million, or 15%, to $51 million. The decrease was primarily due to a lower outstanding principal balance as a result of voluntary principal payments made on our term loan facility.

Income Tax Expense. Our effective tax rate declined by 6.1%, from 25.3% for the six months ended June 30, 2023 to 19.2% for the six months ended June 30, 2024. The decrease was primarily due to the recognition of a discrete tax benefit for the remeasurement of deferred tax liabilities.
Adjusted EBITDA. Adjusted EBITDA increased by $62 million, or 27%, to $294 million. The increase in Adjusted EBITDA was primarily attributable to lower material and manufacturing costs, partially offset by higher selling, general and administrative expenses.
Segment Information
Reynolds Cooking & Baking
For the Six Months Ended June 30,
(in millions, except for %)20242023Change% Change
Retail net revenues$491 $492 $(1)%
Non-retail net revenues77 112 (35)(31)%
Total segment net revenues$568 $604 $(36)(6)%
Segment Adjusted EBITDA89 43 46 107%
Segment Adjusted EBITDA Margin16%7%

Total Segment Net Revenues. Reynolds Cooking & Baking total segment net revenues decreased by $36 million, or 6%, to $568 million. The decrease in net revenues was primarily due to a $35 million decline in our lower-margin non-retail net revenues driven by lower volume.
Adjusted EBITDA. Reynolds Cooking & Baking Adjusted EBITDA increased by $46 million, or 107%, to $89 million. The increase in Adjusted EBITDA was primarily driven by lower material and manufacturing costs.
22


Hefty Waste & Storage
For the Six Months Ended June 30,
(in millions, except for %)20242023Change% Change
Total segment net revenues$468 $463 $1%
Segment Adjusted EBITDA134 117 17 15%
Segment Adjusted EBITDA Margin29 %25 %

Total Segment Net Revenues. Hefty Waste & Storage total segment net revenues increased by $5 million, or 1%, to $468 million. The increase in net revenues was primarily driven by higher pricing due to timing of promotional spend.
Adjusted EBITDA. Hefty Waste & Storage Adjusted EBITDA increased by $17 million, or 15%, to $134 million. The increase in Adjusted EBITDA was primarily driven by lower material and manufacturing costs and the benefit of higher revenue, partially offset by higher advertising costs.
Hefty Tableware
For the Six Months Ended June 30,
(in millions, except for %)20242023Change% Change
Total segment net revenues$450 $475 $(25)(5)%
Segment Adjusted EBITDA70 76 (6)(8)%
Segment Adjusted EBITDA Margin16 %16 %

Total Segment Net Revenues. Hefty Tableware total segment net revenues decreased by $25 million, or 5%, to $450 million. The decrease in net revenues was primarily driven by lower volume and lower pricing.
Adjusted EBITDA. Hefty Tableware Adjusted EBITDA decreased by $6 million, or 8%, to $70 million. The decrease in Adjusted EBITDA was primarily driven by the impact of lower revenue, partially offset by lower material and manufacturing costs.
Presto Products
For the Six Months Ended June 30,
(in millions, except for %)20242023Change% Change
Total segment net revenues$293 $288 $2%
Segment Adjusted EBITDA66 47 19 40%
Segment Adjusted EBITDA Margin23 %16 %

Total Segment Net Revenues. Presto Products total segment net revenues increased by $5 million, or 2%, to $293 million. The increase in net revenues was primarily driven by higher volume and higher pricing associated with the contractual pass through of commodity costs.
Adjusted EBITDA. Presto Products Adjusted EBITDA increased by $19 million, or 40%, to $66 million. The increase in Adjusted EBITDA was primarily driven by lower material and manufacturing costs and the benefit of increased revenue.
23


Liquidity and Capital Resources
Our principal sources of liquidity are existing cash and cash equivalents, cash generated from operating activities and available borrowings under the Revolving Facility.
The following table discloses our cash flows for the periods presented:

For the Six Months Ended June 30,
(in millions)20242023