Company: GEF
Filing Date: 2025-11-19
Form Type: 10-KT
Source: 0001628280-25-053146
Chunk: 69

Company: GREIF, INC
Filing Date: 2025-11-19
Form: 10-KT
Chunk 69
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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. 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 from 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.

Gains on the cross currency swap agreement were recorded in interest expense for the amount of $6.9 million, $6.4 million and $5.1 million for the years ended September 30, 2025 (11-month), October 31, 2024 and October 31, 2023, respectively.

#### Currency Risk
As a result of our international operations, our operating results are subject to fluctuations in currency exchange rates. The geographic presence of our operations mitigates this exposure to some degree. Additionally, our transaction exposure is somewhat limited because we produce and sell a majority of our products in local currency within most countries in which we operate.

As of September 30, 2025 and October 31, 2024 we had outstanding foreign currency forward contracts in the notional amount of $165.0 million and $74.1 million, respectively. The purpose of these contracts is to hedge our exposure to foreign currency transactions and short-term intercompany loan balances in our international businesses. These contracts resulted in realized gains recorded in other expense, net of $0.4 million, $1.0 million and $1.2 million for the years ended September 30, 2025 (11-month), October 31, 2024 and October 31, 2023, respectively.

A sensitivity analysis (with respect only to these instruments) to changes in the foreign currencies hedged indicates that if the U.S. dollar strengthened by 10 percent, the fair value of these instruments would decrease by $4.8 million to a net liability of $4.9 million. Conversely, if the U.S. dollar weakened by 10 percent, the fair value of these instruments would increase by $6.2 million to a net asset of $6.1 million.

#### Commodity Price Risk
We purchase commodities such as steel, resin, pulpwood and energy. We do not currently engage in material hedging of these commodities.

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