Company: GEF
Filing Date: 2025-11-19
Form Type: 10-KT
Source: 0001628280-25-053146
Chunk: 104

Company: GREIF, INC
Filing Date: 2025-11-19
Form: 10-KT
Chunk 104
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As of September 30, 2025, the Company had various cross currency interest rate swaps that synthetically swap $ 534.9million ($ 447.6million as of October 31, 2024) of U.S. fixed rate debt to Euro denominated fixed rate debt. The Company receives a weighted average rate of 1.64% on these swaps. These agreements are designated as either net investment hedges or cash flow hedges for accounting purposes and will mature between October 5, 2026 and November 3, 2028.

The gain or loss on the net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted, or liquidated. See Note 14 herein for additional disclosures of the aggregate gain or loss included within other comprehensive income. The gain or loss on the cash flow hedge derivative instruments is included in the unrealized foreign exchange component of other expense, offset by the underlying gain or loss on the underlying cash flows that are being hedged. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net on the consolidated statements of income. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Euro to United States dollar exchange rate market.

For the years ended September 30, 2025 (11-month), October 31, 2024 and October 31, 2023, gains recorded in interest expense, net under the cross currency swap agreements were $ 6.9million, $ 6.4million and $ 5.1million, respectively.

During the first quarter of 2025, the Company executed a cash settlement of certain cross-currency swap contracts and simultaneously entered into new cross-currency swaps at prevailing market rates. The net cash settlement from restriking these swaps resulted in a cash receipt of $ 22.5million of which $ 11.5million related to cross-currency swap contracts designated as net investment hedges and $ 11.0million related to cross-currency swap contracts designated as cash flow hedges.

The net investment hedges that were settled resulted in a final gain of $ 11.3million, which is included in the foreign currency translation component of other comprehensive income (“OCI”) and the final OCI balance on these transactions is maintained on the balance sheet until the underlying hedged subsidiary is either sold or substantially liquidated.