Company: GEF
Filing Date: 2025-02-27
Form Type: 10-Q
Source: 0000043920-25-000009
Chunk: 87

Company: GREIF, INC
Filing Date: 2025-02-27
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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.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)Net cash provided by financing activities62.5 36.1 Effects of exchange rates on cash(9.3)11.4 Net increase (decrease) in cash and cash equivalents3.4 (1.6)Cash and cash equivalents at beginning of year197.7 180.9 Cash and cash equivalents at end of period$201.1 $179.3 

Operating Activities

During the first three months of 2025 and 2024, cash provided by change in accounts receivable was $31.9 million and $21.5 million, respectively. The favorable change in accounts receivable levels was primarily due to an increase in net sales and timing of collections.

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During the first three months of 2025 and 2024, cash used in change in inventories was $(21.5) million and $(28.0) million, respectively. The favorable change in inventories was primarily due to decrease in raw material prices.

During the first three months of