Company: GEF
Filing Date: 2025-02-27
Form Type: 10-Q
Source: 0000043920-25-000009
Chunk: 44

Company: GREIF, INC
Filing Date: 2025-02-27
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 increase in future periods as further jurisdictions enact legislation.

Income tax expense for the first quarter of 2025 was $7.8 million on $21.8 million of pretax income, and income tax benefit for the first quarter of 2024 was $38.2 million on $35.6 million of pretax income. The $46.0 million net increase in income tax expense was primarily attributable to the following:

•A $48.1 million increase related to non-recurring discrete tax benefits was recorded during the first quarter of 2024 related to the recognition of deferred tax assets due to the onshoring of certain intangible property;

•A $2.7 million increase related to other miscellaneous discrete items; and

•A $4.8 million decrease related to changes in the expected mix of earnings among tax jurisdictions, including jurisdictions for which valuation allowances have been recorded, as well as the timing of recognition of the related tax expense.

We are subject to audits by U.S. federal, state and local tax authorities and foreign tax authorities. We believe that adequate provisions have been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the tax audits are resolved in a manner not consistent with management’s expectations, we could be required to adjust our provision for income taxes in the period such resolution occurs. 

The estimated net decrease in unrecognized tax benefits for the next 12 months ranges from zero to $4.7 million. Actual results may differ materially from this estimate.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are operating cash flows and borrowings under our senior secured credit facilities and proceeds from our trade accounts receivable credit facilities. We use these sources to fund our working capital needs, capital expenditures, cash dividends, debt repayment, and acquisitions. We anticipate continuing to fund these items in a like manner. We currently expect that operating cash flows, borrowings under our senior secured credit facilities, and proceeds from our trade accounts receivable credit facilities will be sufficient to fund our anticipated working capital, capital expenditures, cash dividends, debt repayment, potential acquisitions of businesses, and other liquidity needs for at least 12 months.

Cash Flow

Three Months Ended January 31, (in millions)20252024Net cash (used in) provided by operating activities$(30.8)$4.5 Net cash used in investing activities(19.0)(53.6)