Company: GEF
Filing Date: 2025-02-27
Form Type: 10-Q
Source: 0000043920-25-000009
Chunk: 68

Company: GREIF, INC
Filing Date: 2025-02-27
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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 and ended October 31, 2024.

NOTE 8 — INCOME TAXES

Income tax expense for the quarter and year to date was computed in accordance with ASC 740-270, "Income Taxes - Interim Reporting." Under this method, losses from jurisdictions for which a valuation allowance has been provided have not been included in the amount to which the ASC 740-270 rate was applied. The Company’s income tax expense may fluctuate due to changes in estimated losses and income from jurisdictions for which a valuation allowance has been provided, the timing of recognition of the related tax expense under ASC 740-270, and the impact of discrete items in the respective quarter.For the three months ended January 31, 2025, income tax expense was $7.8 million compared to income tax benefit of $38.2 million for the three months ended January 31, 2024. The $46.0 million net increase in total income tax expense was primarily attributable to a reduction in pre-tax book earnings, a significant non-recurring discrete benefit recorded in 2024 related to the recognition of deferred tax assets due to the onshoring of certain intangible property, and other discrete tax expense.As part of the Ipackchem Acquisition, a deferred tax liability of $62.6 million has been recorded. This liability arises from the temporary differences between the fair value of the acquired assets and liabilities and their respective tax bases. The primary components of the deferred tax liability include intangible assets, property, plant and equipment, and inventory. The deferred tax liability will be amortized over the useful lives of the related assets, in accordance with the applicable tax regulations. The Company will continue to assess the realizability of deferred tax assets and liabilities on an ongoing basis.

NOTE 9 — POST RETIREMENT BENEFIT PLANS

The components of net periodic pension cost include the following: Three Months EndedJanuary 31,(in millions)20252024Service cost$1.7 $1.7 Interest cost7.7 8.6 Expected return on plan assets(9.6)(10.8)Amortization of prior service benefit— (0.1)Recognized net actuarial loss (gain)0.1 (0.2)Net periodic pension benefit$(0.1)$(0.8)The Company expects to make employer contributions of $5.9 million, including benefits paid directly by the Company, during 2025.The components of