Company: GEF
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000043920-25-000025
Chunk: 32

Company: GREIF, INC
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 October 31, 2024.

NOTE 8 — INCOME TAXES

Income tax expense for the quarter and year-to-date was calculated according to ASC 740-270, “Income Taxes - Interim Reporting.” This method uses forecasted annual earnings and other amounts, such as uncertain tax positions and withholding taxes, to estimate annual tax expense. Losses from jurisdictions with a valuation allowance are excluded from the annual estimated tax rate. Each quarter’s income tax expense is based on the year-to-date annual estimated tax rate, adjusted for discrete taxable events during the interim period.For the six months ended April 30, 2025 and 2024, 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