Company: GEF
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000043920-25-000025
Chunk: 79

Company: GREIF, INC
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 As of April 30, 2025, and October 31, 2024, the Company had outstanding foreign currency forward contracts in the notional amount of $112.5 million and $74.1 million, respectively.Adjustments to fair value are recognized in earnings, offsetting the impact of the hedged profits. The assumptions used in measuring fair value of foreign exchange hedges are considered level 2 inputs, which are based on observable market pricing for similar instruments, principally foreign exchange futures contracts.For the three months ended April 30, 2025, and 2024, the Company recorded realized gains of $1.1 million and $2.9 million, respectively, under fair value contracts in other expense, net. For the six months ended April 30, 2025, and 2024, the Company recorded realized gains of $0.9 million and $2.9 million, respectively, under fair value contracts in other expense, net.For the three months ended April 30, 2025, and 2024, the Company recorded unrealized net losses of $0.8 million and $2.8 million, respectively, in other expense, net. For the six months ended April 30, 2025, and 2024, the Company recorded unrealized net losses of $0.7 million and $0.4 million, respectively, in other expense, net.Cross Currency SwapThe Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. As of April 30, 2025, the Company has various cross currency interest rate swaps that synthetically swap $534.9 million ($447.6 million 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 these net investment hedge derivative instruments is included in the foreign currency translation component of other comprehensive income (loss) until the net investment is sold, diluted, or liquidated. See Note 12 to the interim condensed consolidated financial statements for additional disclosures of the aggregate gain or loss included within other comprehensive income (loss). The gain or loss on the cash flow hedge derivative instruments is included in the unrealized foreign exchange component