Company: GEF
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0000043920-25-000025
Chunk: 70

Company: GREIF, INC
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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years. Acquired property, plant and equipment are being depreciated over their estimated remaining useful lives on a straight-line basis.The fair value for acquired customer relationship intangibles was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from customer relationships that existed on the acquisition date over their estimated lives, including the probability of expected future contract renewals and revenue, less a contributory assets charge, all of which is discounted to present value. The fair value for acquired developed technology was determined as of the acquisition date based on estimates and judgments regarding expectations for the future after-tax cash flows arising from the revenue from developed technology that existed on the acquisition date over their estimated lives. The fair values of the trademark intangible assets were determined utilizing the relief from royalty method, which is a form of the income approach. Under this method, a royalty rate based on observed market royalties is applied to projected revenue supporting the trademarks and discounted to present value using an appropriate discount rate. 

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Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the final purchase price allocation and weighted average remaining useful lives for identifiable intangible assets acquired as of the acquisition date:(in millions)Purchase Price AllocationWeighted Average Estimated Useful LifeCustomer relationships$183.8 13.5Developed technology39.0 8.0Trademarks10.3 5.0Total intangible assets$233.1 Pro Forma ResultsThe following unaudited supplemental pro forma data presents consolidated information as if the Ipackchem Acquisition had been completed on November 1, 2022. These amounts were calculated after adjusting Ipackchem’s results to reflect interest expense incurred on the debt to finance the acquisition, additional depreciation and amortization that would have been charged assuming the fair value of property, plant and equipment and intangible assets had been applied from November 1, 2022, the adjusted income tax expense, and related transaction costs.Three Months EndedApril 30,Six Months EndedApril 30,(in millions, except per share amounts)20242024Pro forma net sales$1,404.3 $2,665.7 Pro forma net income attributable to Greif, Inc.54.6 130.2 Basic earnings per share attributable to Greif, Inc. common shareholders:Class A common stock$0.94 $2.26 Class B common stock$1.42