Company: GEF
Filing Date: 2025-11-19
Form Type: 10-KT
Source: 0001628280-25-053146
Chunk: 50

Company: GREIF, INC
Filing Date: 2025-11-19
Form: 10-KT
Chunk 50
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, deferred tax assets and liabilities are recognized currently based on the anticipated future tax consequences of changes in the temporary differences between the book and tax bases of assets and liabilities. This method includes an estimate of the future realization of tax benefits associated with tax losses. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those assets are expected to be realized or settled.

Income tax expense for 2025 was $64.8 million on $103.7 million of pretax income and for 2024 was $18.9 million on $262.5 million of pretax income. The $45.9 million increase in income tax expense for 2025 was primarily attributable to non-recurring items affecting pre-tax income, significant permanent items, withholding taxes, uncertain tax positions, and valuation allowance adjustments. The income tax expense for 2024 was favorably impacted by the recognition of a deferred tax asset from the onshoring of certain intangible property.

We evaluate potential income tax liabilities related to uncertain tax positions in both United States and international jurisdictions, in accordance with Accounting Standards Codification (“ASC”) 740, “Income Taxes.” Estimating these liabilities involves significant judgment due to the complexity of tax laws and uncertainties in their application. We periodically reassess both new and existing reserves based on evolving facts and circumstances, including the expiration of statutes of limitation. During 2025, new uncertain tax position liabilities were partially offset by statute of limitation lapses, resulting in a net increase in our uncertain tax position liability. The net 2025 activity in uncertain tax positions provided a $10.3 million increase in tax expense over the prior year.

The ultimate resolution of uncertain tax positions may differ materially from our current estimates. If actual outcomes vary from our ASC 740 estimates, the resulting adjustments could materially affect our financial condition and results of operations. While the timing and outcome of specific tax matters remain uncertain, we believe our tax accounts for uncertain tax positions are appropriately stated.

See Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-KT for further information.

Year 2024 (12 months ended October 31, 2024) Compared to Year 2023 (12 months ended October 31, 2023)

#### Net Sales
Net sales were $4,354.9 million for 2024 compared with $4,175.3 million for 2023. The $179.6 million increase was primarily due