Company: GEF
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000043920-25-000025
Chunk: 83

Company: GREIF, INC
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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4, income tax expense (benefit) was $37.6 million and $(21.2) million, respectively. The $58.8 million increase in income tax expense was primarily due to a significant one-time discrete tax benefit in 2024 from recognizing deferred tax assets related to the onshoring of certain intangible property.As part of the Ipackchem Acquisition, a deferred tax liability of $63.6 million has been recorded through purchase accounting. This liability arises from the temporary differences between the fair value of the acquired assets and liabilities and their respective tax basis through the measurement period. The primary components of the deferred tax liability include intangible assets, property, plant and equipment, and inventory. The goodwill is not deductible for tax purposes.

NOTE 9 — POST RETIREMENT BENEFIT PLANS

The components of net periodic pension cost include the following: Three Months EndedApril 30,Six Months EndedApril 30,(in millions)2025202420252024Service cost$1.6 $1.7 $3.3 $3.4 Interest cost7.8 8.7 15.5 17.3 Expected return on plan assets(9.5)(10.7)(19.1)(21.5)Amortization of prior service benefit(0.1)(0.1)(0.1)(0.2)Recognized net actuarial loss (gain)0.2 (0.3)0.3 (0.5)Net periodic pension benefit$— $(0.7)$(0.1)$(1.5)The Company expects to make employer contributions of $5.9 million, including benefits paid directly by the Company, during 2025.The components of net periodic pension cost and net periodic post-retirement benefit, other than the service cost components, are included in the line item “Other expense, net” in the interim condensed consolidated statements of income.

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NOTE 10 — CONTINGENT LIABILITIES AND ENVIRONMENTAL RESERVES

Litigation-related LiabilitiesThe Company may become involved from time-to-time in litigation and regulatory matters incidental to its business, including governmental investigations, enforcement actions, personal injury claims, product liability, employment health and safety matters, commercial disputes, intellectual property matters, disputes regarding environmental clean-up costs, litigation in connection with acquisitions and divestitures, and other matters arising out of the normal conduct of its business. The Company