0000950170-22-014525 | 10-Q | XBRL Viewer

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Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2022	Jul. 29, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity File Number	001-39528
Entity Registrant Name	PACTIV EVERGREEN INC.
Entity Central Index Key	0001527508
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-1538656
Entity Address, Address Line One	1900 W. Field Court
Entity Address, City or Town	Lake Forest
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60045
City Area Code	847
Local Phone Number	482-2000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		177,733,992
Title of each class	Common stock, $0.001 par value
Trading Symbol(s)	PTVE
Name of each exchange on which registered	NASDAQ

Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net revenues	$ 1,640	$ 1,352	$ 3,135	$ 2,516
Cost of sales	(1,332)	(1,202)	(2,595)	(2,258)
Gross profit	308	150	540	258
Selling, general and administrative expenses	(148)	(115)	(290)	(241)
Restructuring, asset impairment and other related charges	(1)	(10)	(1)	(8)
Other income, net	12	5	40	11
Operating income from continuing operations	171	30	289	20
Non-operating (expense) income, net	(2)	25	8	48
Interest expense, net	(50)	(42)	(99)	(84)
Income (loss) from continuing operations before tax	119	13	198	(16)
Income tax (expense) benefit	(45)	(5)	(81)	13
Income (loss) from continuing operations	74	8	117	(3)
Loss from discontinued operations, net of income taxes		(1)		(4)
Net income (loss)	74	7	117	(7)
Income attributable to non-controlling interests	(1)		(1)	(1)
Net income (loss) attributable to Pactiv Evergreen Inc. common shareholders	$ 73	$ 7	$ 116	$ (8)
From continuing operations
Basic	$ 0.41	$ 0.05	$ 0.65	$ (0.02)
Diluted	0.40	0.05	0.65	(0.02)
From discontinued operations
Basic		(0.01)		(0.02)
Diluted		(0.01)		(0.02)
Total
Basic	0.41	0.04	0.65	(0.04)
Diluted	$ 0.40	$ 0.04	$ 0.65	$ (0.04)

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement Of Other Comprehensive Income [Abstract]
Net income (loss)	$ 74	$ 7	$ 117	$ (7)
Other comprehensive (loss) income, net of income taxes:
Currency translation adjustments	(10)	7	(6)	(13)
Defined benefit plans			(103)
Other comprehensive (loss) income	(10)	7	(109)	(13)
Comprehensive income (loss)	64	14	8	(20)
Comprehensive income attributable to non-controlling interests	(1)		(1)	(1)
Comprehensive income (loss) attributable to Pactiv Evergreen Inc. common shareholders	$ 63	$ 14	$ 7	$ (21)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

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- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 246	$ 197
Accounts receivable, net of allowances for doubtful accounts of $4 and $3	527	474
Related party receivables	50	48
Inventories	1,103	854
Other current assets	137	127
Assets held for sale	131	162
Total current assets	2,194	1,862
Property, plant and equipment, net	1,759	1,786
Operating lease right-of-use assets, net	271	278
Goodwill	1,814	1,812
Intangible assets, net	1,096	1,127
Deferred income taxes	7	7
Other noncurrent assets	144	149
Total assets	7,285	7,021
Liabilities
Accounts payable	493	364
Related party payables	9	10
Current portion of long-term debt	30	30
Current portion of operating lease liabilities	63	61
Income taxes payable	6	8
Accrued and other current liabilities	372	315
Liabilities held for sale	24	31
Total current liabilities	997	819
Long-term debt	4,207	4,220
Long-term operating lease liabilities	219	229
Deferred income taxes	257	246
Long-term employee benefit obligations	196	79
Other noncurrent liabilities	140	140
Total liabilities	6,016	5,733
Commitments and contingencies (Note 12)
Equity
Common stock, $0.001 par value; 2,000,000,000 shares authorized; 177,733,992 and 177,250,974 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	0	0
Preferred stock, $0.001 par value; 200,000,000 shares authorized; no shares issued or outstanding	0	0
Additional paid in capital	634	625
Accumulated other comprehensive loss	(208)	(99)
Retained earnings	838	758
Total equity attributable to Pactiv Evergreen Inc. common shareholders	1,264	1,284
Non-controlling interests	5	4
Total equity	1,269	1,288
Total liabilities and equity	$ 7,285	$ 7,021

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4	$ 3
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	177,733,992	177,250,974
Common stock, shares outstanding (in shares)	177,733,992	177,250,974
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	200,000,000	200,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Non-controlling Interests
Beginning balance at Dec. 31, 2020	$ 1,074		$ 614	$ (349)	$ 806	$ 3
Beginning balance, Shares at Dec. 31, 2020		177,200,000
Net (loss) income	(7)				(8)	1
Other comprehensive income (loss), net of income taxes	(13)			(13)
Equity based compensation	6		6
Dividends paid to common shareholders	(35)				(35)
Ending balance at Jun. 30, 2021	1,025		620	(362)	763	4
Ending balance, Shares at Jun. 30, 2021		177,200,000
Beginning balance at Mar. 31, 2021	1,026		618	(369)	773	4
Beginning balance, Shares at Mar. 31, 2021		177,200,000
Net (loss) income	7				7
Other comprehensive income (loss), net of income taxes	7			7
Equity based compensation	2		2
Dividends paid to common shareholders	(17)				(17)
Ending balance at Jun. 30, 2021	1,025		620	(362)	763	4
Ending balance, Shares at Jun. 30, 2021		177,200,000
Beginning balance at Dec. 31, 2021	$ 1,288		625	(99)	758	4
Beginning balance, Shares at Dec. 31, 2021	177,250,974	177,300,000
Net (loss) income	$ 117				116	1
Other comprehensive income (loss), net of income taxes	(109)			(109)
Equity based compensation	10		10
Vesting of restricted stock units, net of tax withholdings	(1)		(1)
Vesting of restricted stock units, net of tax withholdings, Shares		400,000
Dividends paid to common shareholders	(36)				(36)
Ending balance at Jun. 30, 2022	$ 1,269		634	(208)	838	5
Ending balance, Shares at Jun. 30, 2022	177,733,992	177,700,000
Beginning balance at Mar. 31, 2022	$ 1,217		628	(198)	783	4
Beginning balance, Shares at Mar. 31, 2022		177,700,000
Net (loss) income	74				73	1
Other comprehensive income (loss), net of income taxes	(10)			(10)
Equity based compensation	6		6
Dividends paid to common shareholders	(18)				(18)
Ending balance at Jun. 30, 2022	$ 1,269		$ 634	$ (208)	$ 838	$ 5
Ending balance, Shares at Jun. 30, 2022	177,733,992	177,700,000

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement Of Stockholders Equity [Abstract]
Common stock, dividends	$ 0.10	$ 0.10	$ 0.20	$ 0.20

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash provided by operating activities
Net income (loss)	$ 117	$ (7)
Adjustments to reconcile net income (loss) to operating cash flows:
Depreciation and amortization	170	150
Deferred income taxes	45	(30)
Unrealized (gain) loss on derivatives	(6)	4
Gain on sale of businesses and noncurrent assets	(27)
Non-cash portion of employee benefit obligations	(7)	(45)
Non-cash portion of operating lease expense	41	39
Amortization of OID and DIC	2	3
Loss on extinguishment of debt		1
Equity based compensation	10	6
Other non-cash items, net	11	3
Change in assets and liabilities:
Accounts receivable, net	(54)	(84)
Inventories	(269)	(28)
Other current assets	(12)	(1)
Accounts payable	127	85
Operating lease payments	(40)	(39)
Income taxes payable/receivable		48
Accrued and other current liabilities	58	14
Employee benefit obligation contributions	(3)	(2)
Other assets and liabilities	3	5
Net cash provided by operating activities	166	122
Cash used in investing activities
Acquisition of property, plant and equipment	(114)	(131)
Acquisition of business, net of cash acquired	(2)
Disposal of businesses and joint venture equity interests, net of cash disposed	47	(6)
Net cash used in investing activities	(69)	(137)
Cash used in financing activities
Long-term debt repayments	(11)	(65)
Premium on redemption of long-term debt		(1)
Dividends paid to common shareholders	(36)	(35)
Other financing activities	(6)	(1)
Net cash used in financing activities	(53)	(102)
Effect of exchange rate changes on cash and cash equivalents	(3)	(1)
Increase (decrease) in cash and cash equivalents	41	(118)
Cash and cash equivalents, including amounts classified as held for sale, as of beginning of the period	214	468
Cash and cash equivalents as of end of the period	255	350
Cash and cash equivalents are comprised of:
Cash and cash equivalents	246	350
Cash and cash equivalents classified as assets held for sale	9	0
Cash and cash equivalents as of end of the period	255	350
Cash paid (received):
Interest	98	80
Income taxes paid (refunded), net	$ 35	$ (32)

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement Of Cash Flows [Abstract]
Right-of-use assets and lease liabilities recorded during period	$ 25	$ 41
Finance lease right-of-use assets and lease liabilities		$ 19

Nature of Operations and Basis of Presentation

6 Months Ended

Jun. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Nature of Operations and Basis of Presentation

Note 1. Nature of Operations and Basis of Presentation

The accompanying condensed consolidated financial statements comprise the accounts of Pactiv Evergreen Inc. (“PTVE”) and its subsidiaries (“we”, “us”, “our” or the “Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and the related notes thereto included in our latest Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 24, 2022. Operating results for interim periods are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. All intercompany transactions and balances have been eliminated in consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Although our current estimates contemplate current conditions and how we expect them to change in the future, as appropriate, it is reasonably possible that actual conditions could differ from what was anticipated in those estimates, which could materially affect our results of operations and balance sheet. Among other effects, such changes could result in future impairments of goodwill, intangibles and long-lived assets, and adjustments to reserves for employee benefits and income taxes. The estimated recoverable amounts associated with asset impairments represent Level 3 measurements in the fair value hierarchy, which include inputs that are not based on observable market data.

The worldwide COVID-19 pandemic has had, and will continue to have, a significant impact on our results of operations, and it may also have additional far-reaching impacts on many aspects of our operations including the impact on customer behaviors, business and manufacturing operations, our employees and the market in general. The extent to which the COVID-19 pandemic impacts our business, financial condition, results of operations, cash flows and liquidity may differ from management’s current estimates due to inherent uncertainties regarding the progress of the pandemic, actions taken to contain the virus, the implementation and effectiveness of vaccinations and how quickly and to what extent normal economic and operating conditions can resume.

Accounting Guidance Issued but Not Yet Adopted as of June 30, 2022

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Accounting Standards Codification Topic 606: Revenue from Contracts with Customers (“ASC 606”). Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. This ASU will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASC 606. This ASU is effective for annual and interim periods beginning after December 15, 2022. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. This ASU should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We are currently evaluating the impact of the new guidance on our condensed consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. This ASU is effective upon issuance and generally can

be applied through the end of calendar year 2022. We are currently evaluating the impact and whether we plan to adopt the optional expedients and exceptions provided under this new standard.

We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our condensed consolidated financial statements.

Acquisitions and Dispositions

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Acquisitions and Dispositions

Note 2. Acquisitions and Dispositions

Acquisitions

On October 1, 2021, we acquired 100% of the outstanding ownership interests of Fabri-Kal LLC, Monarch Mill Pond LLC and Pure Pulp Products LLC (collectively, “Fabri-Kal”) for a purchase price of $378 million, including final adjustments for cash, indebtedness and working capital of $2 million which was paid during the six months ended June 30, 2022. Fabri-Kal is a U.S. manufacturer of thermoformed plastic packaging products. Its products include portion cups, lids, clamshells, drink cups and yogurt containers for the institutional foodservice and consumer packaged goods markets. The acquisition includes four manufacturing facilities in the United States. The acquisition is expected to broaden our portfolio of sustainable packaging products and expand our manufacturing capacity to better serve our customers. The acquisition was funded with our existing cash resources and a portion of the U.S. term loans Tranche B-3 incurred in September 2021.

The Fabri-Kal acquisition was accounted for under the acquisition method of accounting and the results of operations were included in our condensed consolidated financial statements from the date of acquisition. Included in our condensed consolidated statements of income (loss) are Fabri-Kal’s net revenues of $121 million and $223 million for the three and six months ended June 30, 2022, respectively.

The following table summarizes the preliminary purchase price allocation of the fair value of net tangible and intangible assets acquired and liabilities assumed:


	As of October 1, 2021
Cash and cash equivalents	$	3
Accounts receivable		46
Inventories		84
Other current assets		2
Property, plant and equipment		126
Operating lease right-of-use assets		31
Goodwill		68
Customer relationships		56
Trademarks		34
Deferred income taxes		8
Assets acquired	$	458
Accounts payable	$	17
Current portion of long-term debt		1
Current portion of operating lease liabilities		3
Accrued and other current liabilities		26
Long-term debt		1
Long-term operating lease liabilities		25
Long-term employee benefit obligations		6
Other noncurrent liabilities		1
Liabilities assumed	$	80
Total purchase price	$	378

We allocated the intangible assets acquired to the Foodservice segment which included $56 million of customer relationships with an estimated life of 8 years and $34 million of definite-lived trademarks with an estimated life of 10 years. We increased the cost of acquired inventories by $12 million, all of which was expensed as a component of cost of sales during the year ended December 31, 2021. We allocated $68 million of goodwill to the Foodservice segment, of which $42 million is expected to be tax deductible. Goodwill arises principally as a result of expansion opportunities provided by Fabri-Kal’s manufacturing capacity to better serve our customers and plant operation synergies. The purchase price allocation in the table above is preliminary and subject to the finalization of our valuation analysis. The purchase price allocation in the table above reflects a

measurement period adjustment we recorded during the three months ended June 30, 2022 which increased goodwill and decreased inventories by $2 million.

Real property and personal property fair values were determined using the cost approach. The fair values for customer relationships at the acquisition date were determined using the multi-period excess earnings method under the income approach. Significant assumptions used in assessing the fair value of the customer relationships intangible asset were forecasted Adjusted EBITDA margins and contributory asset charges. Trademark fair values were determined using the relief from royalty method. The fair value measurements of intangible assets are based on significant unobservable inputs and thus represent Level 3 inputs.

Dispositions

During the fourth quarter of 2021, we committed to a plan to sell our carton packaging and filling machinery businesses in China, Korea and Taiwan (“Beverage Merchandising Asia”) included in the Beverage Merchandising segment. As a result, we classified the assets and liabilities of Beverage Merchandising Asia as held for sale as of December 31, 2021. The operations of Beverage Merchandising Asia did not meet the criteria to be presented as discontinued operations.

On January 4, 2022, we entered into a definitive agreement with SIG Schweizerische Industrie-Gesellschaft GmbH to sell Beverage Merchandising Asia. The transaction closed on August 2, 2022, and we received preliminary proceeds of $336 million, which are subject to adjustments for cash, indebtedness and working capital as of the date of completion. We expect to recognize a gain on sale in the third quarter of 2022.

The carrying amounts of the major classes of Beverage Merchandising Asia’s assets and liabilities as of June 30, 2022 and December 31, 2021 comprised the following:


	As of June 30, 2022		As of December 31, 2021
Cash and cash equivalents	$	9	$	17
Accounts receivable, net		28		27
Inventories		27		23
Other current assets		3		3
Property, plant and equipment, net		45		48
Goodwill		14		14
Deferred income taxes		2		3
Other noncurrent assets		3		4
Total current assets held for sale	$	131	$	139
Accounts payable	$	6	$	7
Income taxes payable		1		3
Accrued and other current liabilities		14		18
Long-term employee benefit obligations		1		1
Deferred income taxes		2		2
Total current liabilities held for sale	$	24	$	31

Income from operations before income taxes for Beverage Merchandising Asia for the three months ended June 30, 2022 and 2021 and for the six months ended June 30, 2022 and 2021 was $6 million, $5 million, $11 million and $11 million, respectively.

On October 12, 2021, we entered into a definitive agreement for the sale of our equity interests in Naturepak Beverage Packaging Co. Ltd., our 50% joint venture with Naturepak Limited, to affiliates of Elopak ASA. As a result, as of December 31, 2021, we reclassified the carrying value of our interests in Naturepak Beverage Packaging Co. Ltd. to assets held for sale. The transaction closed on March 29, 2022, and we received preliminary proceeds of $47 million, which are subject to adjustments for cash, indebtedness and working capital as of the date of completion, resulting in a preliminary gain on the sale of our equity interests of $27 million during the six months ended June 30, 2022 which was reflected in other income, net. Our interests in Naturepak Beverage Packaging Co. Ltd. did not meet the criteria to be presented as discontinued operations. The income from operations before income taxes from our equity interests in Naturepak Beverage Packaging Co. Ltd. for the six months ended June 30, 2022 and the three and six months ended June 30, 2021 was insignificant.

During the third quarter of 2020, we committed to a plan to sell the South American closures businesses included in the Other operating segment. In December 2020, we entered into an agreement to sell the businesses. On March 31, 2021, we completed the sale of the South American closures businesses for an immaterial amount. The operations of the South American closures

businesses did not meet the criteria to be presented as discontinued operations. The South American closures businesses’ income from operations before income taxes for the six months ended June 30, 2021 was insignificant.

Restructuring, Asset Impairment and Other Related Charges

6 Months Ended

Jun. 30, 2022

Restructuring And Related Activities [Abstract]

Restructuring, Asset Impairment and Other Related Charges

Note 3. Restructuring, Asset Impairment and Other Related Charges

During the three and six months ended June 30, 2022, we recorded $1 million of other restructuring charges within the Beverage Merchandising segment.

During the three months ended June 30, 2021, we recorded the following restructuring, asset impairment and other related charges:


	Other Asset Impairment		Employee Terminations		Total
Beverage Merchandising	$	—	$	8	$	8
Other		2		—		2
Total	$	2	$	8	$	10

During the six months ended June 30, 2021, we recorded the following restructuring and other related charges:


	Employee Terminations		Total
Beverage Merchandising	$	8	$	8
Other		—		—
Total	$	8	$	8

On July 28, 2021, we announced the decision to close our coated groundwood paper production line located in our Pine Bluff, Arkansas mill. On October 31, 2021, we ceased manufacturing coated groundwood paper. As a result of the closure, we recognized $1 million for disassembly costs in the three months ended June 30, 2022 and $8 million for contractual termination benefits in the three months ended June 30, 2021. In addition, related to the sale of our South American closures businesses, we recorded a non-cash impairment charge of $2 million during the three months ended June 30, 2021 which offset a previously recorded partial reversal of impairment charges. Refer to Note 2, Acquisitions and Dispositions, for additional details.

The following table summarizes the changes to our restructuring liability for the six months ended June 30, 2022:


	December 31, 2021		Charges to Earnings		Cash Paid			June 30, 2022
Employee termination costs	$	2	$	—	$	(1	)	$	1
Total	$	2	$	—	$	(1	)	$	1

We expect to settle our restructuring liability within twelve months.

Inventories

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

Note 4. Inventories

The components of inventories consisted of the following:


	As of June 30, 2022		As of December 31, 2021
Raw materials	$	273	$	226
Work in progress		130		102
Finished goods		599		427
Spare parts		101		99
Inventories	$	1,103	$	854

Property, Plant and Equipment, Net

6 Months Ended

Jun. 30, 2022

Property Plant And Equipment [Abstract]

Property, Plant and Equipment, Net

Note 5. Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following:


	As of June 30, 2022			As of December 31, 2021
Land and land improvements	$	72		$	72
Buildings and building improvements		651			638
Machinery and equipment		3,448			3,383
Construction in progress		167			170
Property, plant and equipment, at cost		4,338			4,263
Less: accumulated depreciation		(2,579	)		(2,477	)
Property, plant and equipment, net	$	1,759		$	1,786

Depreciation expense related to property, plant and equipment was recognized in the following components in the condensed consolidated statements of income (loss):


	For the Three Months Ended June 30,				For The Six Months Ended June 30,
	2022		2021		2022		2021
Cost of sales	$	65	$	58	$	128	$	112
Selling, general and administrative expenses		6		6		12		12
Total depreciation expense	$	71	$	64	$	140	$	124

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

Goodwill by reportable segment was as follows:


	Foodservice		Food Merchandising		Beverage Merchandising		Other (1)		Total
Balance as of December 31, 2021	$	990	$	770	$	52	$	—	$	1,812
Measurement period adjustment		2		—		—		—		2
Balance as of June 30, 2022	$	992	$	770	$	52	$	—	$	1,814
Accumulated impairment losses	$	—	$	—	$	—	$	15	$	15

(1)

Other includes operations that do not meet the quantitative threshold for reportable segments.

Intangible assets, net consisted of the following:


	As of June 30, 2022							As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Finite-lived intangible assets
Customer relationships	$	1,073	$	(622	)	$	451	$	1,075	$	(594	)	$	481
Trademarks		42		(10	)		32		42		(9	)		33
Other		12		(12	)		—		12		(12	)		—
Total finite-lived intangible assets	$	1,127	$	(644	)	$	483	$	1,129	$	(615	)	$	514
Indefinite-lived intangible assets
Trademarks	$	554	$	—		$	554	$	554	$	—		$	554
Other		59		—			59		59		—			59
Total indefinite-lived intangible assets	$	613	$	—		$	613	$	613	$	—		$	613
Total intangible assets	$	1,740	$	(644	)	$	1,096	$	1,742	$	(615	)	$	1,127

Amortization expense for intangible assets of $15 million and $13 million for the three months ended June 30, 2022 and 2021, respectively, and $30 million and $26 million for the six months ended June 30, 2022 and 2021, respectively, was recognized in selling, general and administrative expenses.

Accrued and Other Current Liabilities

6 Months Ended

Jun. 30, 2022

Payables And Accruals [Abstract]

Accrued and Other Current Liabilities

Note 7. Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following:


	As of June 30, 2022		As of December 31, 2021
Accrued personnel costs	$	111	$	86
Accrued rebates and credits		95		87
Accrued interest		17		19
Other(1)		149		123
Accrued and other current liabilities	$	372	$	315

(1) Other includes items such as accruals for freight, utilities and property and other non-income related taxes.

Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Note 8. Debt

Debt consisted of the following:


	As of			As of
	June 30,			December 31,
	2022			2021
Credit Agreement	$	2,239		$	2,250
Notes:
4.000% Senior Secured Notes due 2027		1,000			1,000
4.375% Senior Secured Notes due 2028		500			500
Pactiv Debentures:
7.950% Debentures due 2025		276			276
8.375% Debentures due 2027		200			200
Other		49			53
Total principal amount of borrowings		4,264			4,279
Deferred financing transaction costs (“DIC”)		(16	)		(17	)
Original issue discounts, net of premiums (“OID”)		(11	)		(12	)
		4,237			4,250
Less: current portion		(30	)		(30	)
Long-term debt	$	4,207		$	4,220

We were in compliance with all debt covenants during the six months ended June 30, 2022 and the year ended December 31, 2021.

On September 24, 2021, we incurred $1,015 million of term loans (“U.S. term loans tranche B-3”) and issued $500 million aggregate principal amount of 4.375% Senior Secured Notes due 2028 (“4.375% Notes”). A portion of the net proceeds from the U.S. term loans Tranche B-3, along with the net proceeds from the 4.375% Notes, was used to repay the $1,207 million of existing U.S. term loans Tranche B-1 maturing in February 2023, including accrued interest, extinguishing this tranche of borrowings. The balance of the net proceeds from the U.S. term loans Tranche B-3 was used to partially fund the acquisition of Fabri-Kal. During the six months ended June 30, 2021, we repaid the remaining $59 million of the 5.125% senior secured notes at a price of 101.281%. The early repayment of these senior secured notes resulted in a loss on extinguishment of debt of $1 million in respect of the premium on redemption, which was recognized in interest expense, net.

Credit Agreement

PTVE and certain of its U.S. subsidiaries are parties to a senior secured credit agreement dated August 5, 2016 as amended (the “Credit Agreement”). The Credit Agreement comprises the following term and revolving tranches:


	Maturity Date	Value Drawn or Utilized as of June 30, 2022		Applicable Interest Rate as of June 30, 2022
Term Tranches
U.S. term loans Tranche B-2	February 5, 2026	$	1,231	LIBOR (floor of 0.000%) + 3.250%
U.S. term loans Tranche B-3	September 24, 2028	$	1,008	LIBOR (floor of 0.500%) + 3.500%
Revolving Tranche(1)
U.S. Revolving Loans	August 5, 2024	$	44		—

(1) The Revolving Tranche represents a $250 million facility. The amount utilized is in the form of letters of credit.

The weighted average contractual interest rates related to our U.S. term loans Tranche B-2 and Tranche B-3 for the six months ended June 30, 2022 were 3.74% and 4.15%, respectively. The weighted average contractual interest rates related to our U.S. term loans Tranche B-1 and B-2 for the six months ended June 30, 2021 were 2.87% and 3.37%, respectively. The effective interest rates of our debt obligations under the Credit Agreement are not materially different from the contractual interest rates.

PTVE and certain of its U.S. subsidiaries have guaranteed on a senior basis the obligations under the Credit Agreement to the extent permitted by law. The borrowers and the guarantors have granted security over substantially all of their assets to support the obligations under the Credit Agreement. This security is expected to be shared on a first priority basis with the holders of the Notes.

Indebtedness under the Credit Agreement may be voluntarily repaid, in whole or in part, and must be mandatorily repaid in certain circumstances. We are required to make quarterly amortization payments of 0.25% of the principal amount of U.S. term loans. Additionally, we are required to make annual prepayments of term loans with up to 50% of excess cash flow (which will be reduced to 25% or 0% if specified senior secured first lien leverage ratios are met) as determined in accordance with the Credit Agreement. No excess cash flow prepayments were due in 2021 or are due in 2022 for the year ended December 31, 2021.

The Credit Agreement contains customary covenants which restrict us from certain activities including, among other things, incurring debt, creating liens over assets, selling assets and making restricted payments, in each case except as permitted under the Credit Agreement.

Notes

Outstanding Notes, as of June 30, 2022, are summarized below:


	Maturity Date	Interest Payment Dates
4.000% Senior Secured Notes due 2027	October 15, 2027	April 15 and October 15
4.375% Senior Secured Notes due 2028	October 15, 2028	April 15 and October 15 commencing April 15, 2022

The effective interest rates of our debt obligations under the Notes are not materially different from the contractual interest rates.

PTVE and certain of its U.S. subsidiaries have guaranteed on a senior basis the obligations under the Notes to the extent permitted by law. The issuers and the guarantors have granted security over substantially all of their assets to support the obligations under the Notes. This security is expected to be shared on a first priority basis with the creditors under the Credit Agreement.

The respective indentures governing the 4.000% Senior Secured Notes due 2027 (“4.000% Notes”) and the 4.375% Notes (together with the 4.000% Notes, the “Notes”) contain customary covenants which restrict us from certain activities including, among other things, incurring debt, creating liens over assets, selling assets and making restricted payments, in each case except as permitted under the respective indentures governing the Notes.

Under the respective indentures governing the Notes, we can, at our option, elect to redeem the Notes under terms and conditions specified in the indentures. Under the respective indentures governing the Notes, in certain circumstances which would constitute a change in control, the holders of the Notes have the right to require us to repurchase the Notes at a premium.

Pactiv Debentures

As of June 30, 2022, we had the following outstanding debentures (together, the “Pactiv Debentures”):


	Maturity Date	Interest Payment Dates
7.950% Debentures due 2025	December 15, 2025	June 15 and December 15
8.375% Debentures due 2027	April 15, 2027	April 15 and October 15

The effective interest rates of our debt obligations under the Pactiv Debentures are not materially different from the contractual interest rates.

The Pactiv Debentures are not guaranteed and are unsecured.

The indentures governing the Pactiv Debentures contain a negative pledge clause limiting the ability of certain of our entities, subject to certain exceptions, to (i) incur or guarantee debt that is secured by liens on “Principal Manufacturing Properties” (as such term is defined in the indentures governing the Pactiv Debentures) or on the capital stock or debt of certain subsidiaries that own or lease any such Principal Manufacturing Property and (ii) sell and then take an immediate lease back of such Principal Manufacturing Property.

The 8.375% Debentures due 2027 may be redeemed at any time at our option, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus a make-whole premium, if any, plus accrued and unpaid interest to the date of the redemption.

Other borrowings

Other borrowings represented finance lease obligations of $49 million and $53 million as of June 30, 2022 and December 31, 2021, respectively.

Scheduled maturities

Below is a schedule of required future repayments on our debt outstanding as of June 30, 2022:



2022	$	15
2023		30
2024		29
2025		304
2026		1,202
Thereafter		2,684
Total principal amount of borrowings	$	4,264

Fair value of our long-term debt

The fair value of our long-term debt as of June 30, 2022 and December 31, 2021 is a Level 2 fair value measurement. Below is a schedule of carrying values and fair values of our debt outstanding:


	As of June 30, 2022				As of December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Agreement	$	2,228	$	2,111	$	2,239	$	2,243
Notes:
4.000% Senior Secured Notes due 2027		992		856		991		975
4.375% Senior Secured Notes due 2028		495		426		495		497
Pactiv Debentures:
7.950% Debentures due 2025		274		243		273		305
8.375% Debentures due 2027		199		176		199		222
Other		49		49		53		53
Total	$	4,237	$	3,861	$	4,250	$	4,295

Interest expense, net

Interest expense, net consisted of the following:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Interest expense:
Credit Agreement	$	23		$	20		$	44		$	39
Notes		16			10			31			20
Pactiv Debentures		9			9			19			19
Interest income		(1	)		—			(1	)		(1	)
Amortization:
DIC		—			1			1			2
OID		1			1			1			1
Net foreign currency exchange (gains) losses		—			(1	)		1			—
Loss on extinguishment of debt:
Redemption premiums		—			—			—			1
Other		2			2			3			3
Interest expense, net	$	50		$	42		$	99		$	84

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Financial Instruments

6 Months Ended

Jun. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Financial Instruments

Note 9. Financial Instruments

We had the following derivative instruments recorded at fair value in our condensed consolidated balance sheets:


	As of June 30, 2022					As of December 31, 2021
	Asset Derivatives		Liability Derivatives			Asset Derivatives		Liability Derivatives
Commodity swap contracts	$	7	$	(1	)	$	1	$	(1	)
Total fair value	$	7	$	(1	)	$	1	$	(1	)
Recorded in:
Other current assets	$	7	$	—		$	1	$	—
Accrued and other current liabilities		—		—			—		(1	)
Other noncurrent liabilities		—		(1	)		—		—
Total fair value	$	7	$	(1	)	$	1	$	(1	)

Our derivatives are comprised of commodity swaps. All derivatives represent Level 2 financial assets and liabilities. Our derivatives are valued using an income approach based on the observable market index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of these financial instruments takes into consideration the risk of non-performance, including counterparty credit risk. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with our derivatives by limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties.

During the three and six months ended June 30, 2022, we recognized an unrealized gain of $1 million and $6 million, respectively, compared to an unrealized loss of $3 million and $4 million for the three and six months ended June 30, 2021, respectively, in cost of sales.

The following table provides the detail of outstanding commodity derivative contracts as of June 30, 2022:


Type	Unit of Measure	Contracted Volume		Contracted Price Range	Contracted Date of Maturity
Benzene swaps	U.S. liquid gallon		3,916,502	$3.12 - $4.13	Aug 2022 - Feb 2023
Natural gas swaps	Million BTU		3,148,940	$2.81 - $4.63	Aug 2022 - Dec 2025

Employee Benefits

6 Months Ended

Jun. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Employee Benefits

Note 10. Employee Benefits

Net periodic benefit (expense) income for defined benefit pension plans and other post-employment benefit plans consisted of the following:


	For the Three Months Ended June 30,						For The Six Months Ended June 30,
	2022			2021			2022			2021
Service cost	$	(1	)	$	(1	)	$	(1	)	$	(3	)
Interest cost		(16	)		(28	)		(37	)		(55	)
Expected return on plan assets		14			53			35			103
Ongoing net periodic benefit (expense) income		(3	)		24			(3	)		45
Income due to settlement(1)		—			—			10			—
Total net periodic benefit (expense) income	$	(3	)	$	24		$	7		$	45

(1)

Refer to the Pension Partial Settlement Transactions section below for additional details.

Net periodic benefit (expense) income for defined benefit pension plans and other post-employment benefit plans was recognized as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Cost of sales	$	(1	)	$	(1	)	$	(1	)	$	(3	)
Non-operating (expense) income, net		(2	)		25			8			48
Total net periodic benefit (expense) income	$	(3	)	$	24		$	7		$	45

No contributions to the Pactiv Evergreen Pension Plan (“PEPP”) are expected to be made in 2022.

Pension Partial Settlement Transactions

On February 24, 2022, we purchased with $1,260 million of PEPP assets a non-participating group annuity contract from an insurance company and transferred $1,257 million of the PEPP’s projected benefit obligations. Under the transaction, the insurance company assumed responsibility for pension benefits and annuity administration for approximately 13,300 retirees or their beneficiaries. As a result of this transaction, the PEPP’s projected benefit obligations and plan assets were remeasured, and we recognized a non-cash pre-tax pension settlement gain of $10 million in the six months ended June 30, 2022.

On July 21, 2021, we purchased with $941 million of PEPP assets a non-participating group annuity contract from an insurance company and transferred $959 million of the PEPP’s projected benefit obligations. Under the transaction, the insurance company assumed responsibility for pension benefits and annuity administration for approximately 16,300 retirees or their beneficiaries. As a result of this transaction, the PEPP’s projected benefit obligations and plan assets were remeasured, and we recognized a non-cash pre-tax pension settlement gain of $22 million in the third quarter of 2021.

Other Income, Net

6 Months Ended

Jun. 30, 2022

Other Income And Expenses [Abstract]

Other Income, Net

Note 11. Other Income, Net

Other income, net consisted of the following:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Gain on sale of businesses and noncurrent assets	$	—		$	—		$	27		$	—
Gain on legal settlement(1)		15			—			15			—
Foreign exchange losses on cash(2)		—			(1	)		(2	)		(1	)
Transition service agreement income(3)		—			3			1			7
Other		(3	)		3			(1	)		5
Other income, net	$	12		$	5		$	40		$	11

(1)

Reflects a gain, net of costs, arising from the settlement of a historical legal action.

(2)

Primarily arose from holding U.S. dollars in non-U.S. dollar functional currency entities.

(3)

Refer to Note 15, Related Party Transactions, for additional details. The transition services agreement income is primarily attributable to services provided to our former segments, Reynolds Consumer Products Inc. (“RCPI”) and Graham Packaging Company Inc. (“GPCI”), and our former closures businesses.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12. Commitments and Contingencies

We are from time to time party to litigation, legal proceedings and tax examinations arising from our operations. Most of these matters involve allegations of damages against us relating to employment matters, personal injury and commercial or contractual disputes. We record estimates for claims and proceedings that constitute a present obligation when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of such obligation can be made. While it is not possible to predict the outcome of any of these matters, based on our assessment of the facts and circumstances, we do not believe any of these matters, individually or in the aggregate, will have a material adverse effect on our balance sheet, results of operations or cash flows. However, actual outcomes may differ from those expected and could have a material effect on our balance sheet, results of operations or cash flows in a future period. Except for amounts provided, there were no legal proceedings pending other than those for which we have determined that the possibility of a material outflow is remote.

Legal Proceedings

On April 14, 2021, MP2 Energy LLC (“MP2”) filed a lawsuit against Pactiv LLC (“Pactiv”), one of our indirect subsidiaries, in state court in Montgomery County, Texas. In this lawsuit, MP2 sought to collect approximately $50 million from Pactiv that MP2 claimed that Pactiv owed MP2 under an energy management services agreement (“EMSA”). Pactiv disputed any liability to MP2 and maintained that Pactiv acted reasonably at all times and that the event of Force Majeure excused any obligation Pactiv had to supply the contract quantity under the EMSA and Transaction Confirmation No. 4 or to reimburse MP2 for its cost in contracting for any shortfall in the contract quantity.

On July 20, 2022, the parties entered into a settlement agreement pursuant to which, among other things, MP2 dismissed its claims with prejudice, Pactiv paid MP2 an immaterial cash payment and the parties entered into new commercial arrangements.

Indemnities

As part of the agreements for the sale of various businesses, we have provided certain warranties and indemnities to the respective purchasers as set out in the respective sale agreements. These warranties and indemnities are subject to various terms and conditions affecting the duration and total amount of the indemnities. As of June 30, 2022, we are not aware of any material claims under these agreements that would give rise to an additional liability. However, if such claims arise in the future, they could have a material effect on our balance sheet, results of operations or cash flows.

Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 13. Accumulated Other Comprehensive Loss

The following table summarizes the changes in our balances of each component of accumulated other comprehensive loss (“AOCL”):


	For the Three Months Ended June 30,						For The Six Months Ended June 30,
	2022			2021			2022			2021
Currency translation adjustments:
Balance as of beginning of period	$	(203	)	$	(209	)	$	(207	)	$	(189	)
Currency translation adjustments		(10	)		7			(6	)		(2	)
Amounts reclassified from AOCL(1)		—			—			—			(11	)
Other comprehensive (loss) income		(10	)		7			(6	)		(13	)
Balance as of end of period	$	(213	)	$	(202	)	$	(213	)	$	(202	)
Defined benefit plans:
Balance as of beginning of period	$	5		$	(160	)	$	108		$	(160	)
Net actuarial loss arising during year(2)		—			—			(126	)		—
Deferred tax benefit on net actuarial loss		—			—			31			—
Gain reclassified from AOCL
Defined benefit plan settlement gain		—			—			(10	)		—
Deferred tax expense on reclassification		—			—			2			—
Other comprehensive loss		—			—			(103	)		—
Balance as of end of period	$	5		$	(160	)	$	5		$	(160	)
AOCL
Balance as of beginning of period	$	(198	)	$	(369	)	$	(99	)	$	(349	)
Other comprehensive (loss) income		(10	)		7			(109	)		(13	)
Balance as of end of period	$	(208	)	$	(362	)	$	(208	)	$	(362	)

(1) The reclassification of currency translation adjustment amounts to earnings during the six months ended June 30, 2021 relates to the sale of the South American closures businesses. Refer to Note 2, Acquisitions and Dispositions, for additional details.

(2) Net actuarial loss arising during the six months ended June 30, 2022 relates to the interim remeasurement of the PEPP due to the pension partial settlement transaction. The net actuarial loss for the six months ended June 30, 2022 was primarily due to asset returns, partially offset by an increase in the discount rate utilized in measuring plan obligations, reflecting changes in market rates. Refer to Note 10, Employee Benefits, for additional details.

Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 14. Income Taxes

The effective tax rates for the three and six months ended June 30, 2022 and 2021 represent our estimate of the annual effective tax rates expected to be applicable for the respective full fiscal years, adjusted for any discrete events which are recorded in the period that they occur.

During the three months ended June 30, 2022, we recognized a tax expense of $45 million on income from continuing operations before tax of $119 million. The effective tax rate was driven primarily by the mix of income taxed at varying rates among the jurisdictions in which we operate and an inability to recognize a tax benefit on all interest expense. During the six months ended June 30, 2022, we recognized a tax expense of $81 million on income from continuing operations before tax of $198 million. The effective tax rate was driven primarily by a $14 million discrete expense from the sale of our equity interests in Naturepak Beverage Packaging Co. Ltd., as well as the mix of income taxed at varying rates among the jurisdictions in which we operate and an inability to recognize a tax benefit on all interest expense.

During the three months ended June 30, 2021, we recognized tax expense of $5 million on income from continuing operations before tax of $13 million. The effective tax rate was driven primarily by the mix of income and losses taxed at varying rates among the jurisdictions in which we operate. During the six months ended June 30, 2021, we recognized a tax benefit of $13 million on a loss from continuing operations before tax of $16 million. The effective tax rate was driven primarily by a $10 million discrete benefit from the partial release of our valuation allowance for deferred interest deductions, which was partially offset by varying tax rates among the jurisdictions in which we operate.

We are under audit by the Internal Revenue Service (“IRS”) and other taxing authorities. The IRS is currently auditing our U.S. income tax returns for 2016-2017. As of June 30, 2022, we have not received any proposed adjustments from taxing authorities that would be material. Although the ultimate timing is uncertain, it is reasonably possible that a reduction of up to $10 million of unrecognized tax benefits could occur within the next twelve months due to changes in audit status, settlements of tax assessments and other events.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Related Party Transactions

6 Months Ended

Jun. 30, 2022

Related Party Transactions

Note 15. Related Party Transactions

As of June 30, 2022, approximately 78% of our shares are owned by PFL.

The related party entities and types of transactions we entered into with them are detailed below. All related parties detailed below have a common ultimate controlling shareholder, except for the joint ventures.


	Transaction Value for the						Transaction Value for the
	Three Months Ended June 30,						For The Six Months Ended June 30,						Balance Outstanding as of
	2022			2021			2022			2021			June 30, 2022			December 31, 2021
Balances and transactions with joint ventures
Included in other current assets													$	4		$	9
Sale of goods and services(1)	$	3		$	6		$	10		$	16
Balances and transactions with other entities controlled by Mr. Graeme Hart
Current related party receivables(2)														50			48
Sale of goods and services(2)		106			93			206			171
Transition services agreements and rental income(2)		—			3			1			7
Charges(3)		3			2			3			7
Related party payables(2)														(9	)		(10	)
Purchase of goods(2)		(21	)		(26	)		(48	)		(51	)
Charges(3)		(3	)		—			(6	)		(6	)

(1)

All transactions with joint ventures are settled in cash. Sales of goods and services are negotiated based on market rates. All amounts are unsecured, non-interest bearing and repayable on demand.

(2)

Following the distribution of RCPI on February 4, 2020, we continue to trade with them, selling and purchasing various goods and services under contractual arrangements that expire over a variety of periods through December 31, 2024. As part of the separation process, among other agreements, we have entered into two lease arrangements with RCPI and entered into a transition services agreement to provide ongoing agreed services to RCPI, as requested. We do not trade with GPCI on an ongoing basis. We have entered into a transition services agreement to provide ongoing agreed services to GPCI, as requested. We have also entered into a tax matters agreement with GPCI. We have recognized a payable of $1 million under the tax matters agreement in relation to GPCI’s share of U.S. state tax refunds in respect of the periods through to September 16, 2020.

(3)

These charges are for various costs incurred including services provided, financing and other activities. All amounts are unsecured, non-interest bearing and settled on normal trade terms. As part of our initial public offering (“IPO”), we have entered into a transition services agreement with Rank Group Limited (“Rank”), an entity controlled by Mr. Graeme Hart, under which Rank will, upon our request, continue to provide certain administrative and support services to us, and we will provide support services to Rank upon request. All services provided will be charged at an agreed hourly rate plus any third party costs. The agreements with Rank and affiliated entities also include an insurance sharing agreement and an investment advisory agreement in respect of our pension plan investment committee.

Equity Based Compensation

6 Months Ended

Jun. 30, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Based Compensation

Note 16. Equity Based Compensation

In conjunction with our IPO, we established the Pactiv Evergreen Inc. Equity Incentive Plan (the “Equity Incentive Plan”) for purposes of granting stock or other equity-based compensation awards to our employees (including our senior management), directors, consultants and advisors. The maximum number of shares of common stock available for issuance under our Equity Incentive Plan is 9,079,395 shares.

Equity-based compensation expense of $6 million and $2 million for the three months ended June 30, 2022 and 2021, respectively, and $10 million and $6 million for the six months ended June 30, 2022 and 2021, respectively, was recognized in selling, general and administrative expenses.

Restricted Stock Units

During the six months ended June 30, 2022, we granted restricted stock units (“RSUs”) to certain members of management and certain members of our Board of Directors. These RSUs required future service to be provided and vest in annual installments over a period ranging from 1 to 3 years beginning on the first anniversary of the grant date. During the vesting period, the RSUs carry dividend-equivalent rights, but the RSUs do not have voting rights. The RSUs and any related dividend-equivalent rights are forfeited in the event the holder is no longer an employee on the vesting date, unless the holder satisfies certain retirement-eligibility criteria. The following table summarizes RSU activity during 2022:


(In thousands, except per share amounts)	Number of Stock Units			Weighted Average Grant Date Fair Value
Non-vested, at January 1		1,491		$	14.67
Granted(1)		1,261			9.23
Forfeited		(83	)		12.44
Vested		(412	)		15.39
Non-vested, at June 30		2,257		$	11.58

(1)

Includes 21 thousand shares reserved for issuance upon the settlement of dividend-equivalent rights carried by the reported RSUs concurrently with the settlement of such RSUs for shares.

Unrecognized compensation cost related to unvested RSUs as of June 30, 2022 was $16 million, which is expected to be recognized over a weighted average period of 2.1 years. The total vest date fair value of shares that vested during the six months ended June 30, 2022 was $4 million.

Performance Share Units

During the six months ended June 30, 2022, we granted performance share units (“PSUs”) to certain members of management which vest on the third anniversary of the grant date. Based on the achievement of a company performance target during a performance period set by our Compensation Committee, upon vesting, the PSUs are exchanged for a number of shares of common stock equal to the number of PSUs multiplied by a factor between 0% and 200%. We use our stock price on the grant date to estimate the fair value of our PSUs. We adjust the expense based on the likelihood of future achievement of performance metrics. If any of the performance targets are not achieved, the awards are forfeited. During the vesting period, the PSUs carry dividend-equivalent rights, but the PSUs do not have voting rights. The PSUs and any related dividend-equivalent rights are forfeited in the event the holder is no longer an employee on the vesting date, unless the holder satisfies certain retirement-eligibility criteria. The following table summarizes PSU activity during 2022:


(In thousands, except per share amounts)	Number of Stock Units			Weighted Average Grant Date Fair Value
Non-vested, at January 1		—		$	—
Granted(1)		1,160			9.13
Forfeited		(49	)		9.18
Non-vested, at June 30		1,111		$	9.13

(1)

Includes 21 thousand shares reserved for issuance upon the settlement of dividend-equivalent rights carried by the reported PSUs concurrently with the settlement of such PSUs for shares.

Unrecognized compensation cost related to unvested PSUs as of June 30, 2022 was $8 million, which is expected to be recognized over a weighted average period of 2.2 years.

Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Note 17. Earnings Per Share

Earnings (loss) per share, including a reconciliation of the number of shares used for our earnings (loss) per share calculation, was as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Numerator
Net earnings (loss) attributable to common shareholders - continuing operations	$	73		$	8		$	116		$	(4	)
Less: dividend-equivalents declared for equity based awards		(1	)		—			(1	)		—
Net earnings (loss) available to common shareholders - continuing operations		72			8			115			(4	)
Net loss attributable to common shareholders - discontinued operations		—			(1	)		—			(4	)
Total net earnings (loss) available to common shareholders	$	72		$	7		$	115		$	(8	)
Denominator
Weighted average number of shares outstanding - basic		177.7			177.4			177.7			177.3
Effect of dilutive securities		0.6			0.3			0.5			—
Weighted average number of shares outstanding - diluted		178.3			177.7			178.2			177.3
Earnings (loss) per share attributable to Pactiv Evergreen Inc. common shareholders
From continuing operations
Basic	$	0.41		$	0.05		$	0.65		$	(0.02	)
Diluted	$	0.40		$	0.05		$	0.65		$	(0.02	)
From discontinued operations
Basic	$	—		$	(0.01	)	$	—		$	(0.02	)
Diluted	$	—		$	(0.01	)	$	—		$	(0.02	)
Total
Basic	$	0.41		$	0.04		$	0.65		$	(0.04	)
Diluted	$	0.40		$	0.04		$	0.65		$	(0.04	)

The weighted average number of anti-dilutive potential common shares excluded from the calculation above was 0.4 million shares and 0.7 million shares for the three and six months ended June 30, 2022, respectively. There were no anti-dilutive potential common shares excluded from the calculation above for the three months ended June 30, 2021. The weighted average number of anti-dilutive potential common shares excluded from the calculation above was 0.2 million shares for the six months ended June 30, 2021.

On August 1, 2022, our Board of Directors declared a dividend of $0.10 per share to be paid on September 15, 2022 to shareholders of record as of August 31, 2022.

Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Note 18. Segment Information

ASC 280 Segment Reporting establishes the standards for reporting information about segments in financial statements. In applying the criteria set forth in ASC 280, we have three reportable segments: Foodservice, Food Merchandising and Beverage Merchandising. These reportable segments reflect our operating structure and the manner in which our Chief Operating

Decision Maker (“CODM”), who is our President and Chief Executive Officer, assesses information for decision-making purposes.

The key factors used to identify these reportable segments are the organization and alignment of our internal operations and the nature of our products. This reflects how our CODM monitors performance, allocates capital and makes strategic and operational decisions. Our reportable segments are described as follows:

Foodservice - Manufactures a broad range of products that enable consumers to eat and drink where they want and when they want with convenience. Foodservice manufactures food containers, drinkware (hot and cold cups and lids), tableware, serviceware and other products which make eating on-the-go more enjoyable and easy to do.

Food Merchandising - Manufactures products that protect and attractively display food while preserving freshness. Food Merchandising products include clear rigid-display containers, containers for prepared and ready-to-eat food, trays for meat and poultry and egg cartons.

Beverage Merchandising - Manufactures cartons for fresh refrigerated beverage products, primarily serving dairy (including plant-based, organic and specialties), juice and other specialty beverage end-markets. Beverage Merchandising manufactures and supplies integrated fresh carton systems, which include printed cartons, spouts and filling machinery. It also produces fiber-based liquid packaging board for its internal requirements and to sell to other fresh beverage carton manufacturers as well as a range of paper-based products which it sells to paper and packaging converters.

Other/Unallocated - In addition to our reportable segments, we have other operating segments that do not meet the threshold for presentation as a reportable segment. These operating segments include the remaining components of our former closures business, which generate revenue from the sale of caps and closures, and are presented as “Other” in the reconciliation between total reportable segment amounts and the equivalent consolidated measure. Unallocated includes corporate costs, primarily relating to companywide functions such as finance, tax and legal and the effects of the PEPP and equity based compensation.

Information by Segment

We present reportable segment Adjusted EBITDA as this is the financial measure by which management and our CODM allocate resources and analyze the performance of our reportable segments.

A segment’s Adjusted EBITDA represents its earnings before interest, tax, depreciation and amortization and is further adjusted to exclude certain items, including but not limited to, restructuring, asset impairment and other related charges, gains or losses on the sale of businesses and noncurrent assets, non-cash pension income or expense, operational process engineering-related consultancy costs, business acquisition and integration costs and purchase accounting adjustments, unrealized gains or losses on derivatives, foreign exchange gains or losses on cash, executive transition charges and gains or losses on certain legal settlements.

Reportable segment assets represent trade receivables, inventory and property, plant and equipment.


	Foodservice		Food Merchandising		Beverage Merchandising			Reportable Segment Total
For the Three Months Ended June 30, 2022
Net revenues	$	791	$	444	$	378		$	1,613
Intersegment revenues		—		—		42			42
Total reportable segment net revenues	$	791	$	444	$	420		$	1,655
Adjusted EBITDA	$	165	$	78	$	29		$	272

For the Three Months Ended June 30, 2021
Net revenues	$	571	$	388	$	369		$	1,328
Intersegment revenues		—		—		18			18
Total reportable segment net revenues	$	571	$	388	$	387		$	1,346
Adjusted EBITDA	$	62	$	59	$	15		$	136

For the Six Months Ended June 30, 2022
Net revenues	$	1,488	$	848	$	750		$	3,086
Intersegment revenues		—		—		73			73
Total reportable segment net revenues	$	1,488	$	848	$	823		$	3,159
Adjusted EBITDA	$	281	$	138	$	53		$	472

For the Six Months Ended June 30, 2021
Net revenues	$	1,025	$	730	$	708		$	2,463
Intersegment revenues		—		—		36			36
Total reportable segment net revenues	$	1,025	$	730	$	744		$	2,499
Adjusted EBITDA	$	123	$	114	$	(17	)	$	220

Reportable segment assets consisted of the following:


	Foodservice		Food Merchandising		Beverage Merchandising		Reportable Segment Total
As of June 30, 2022	$	1,528	$	819	$	991	$	3,338
As of December 31, 2021		1,380		737		951		3,068

The following table presents a reconciliation of reportable segment Adjusted EBITDA to consolidated GAAP income (loss) from continuing operations before income taxes:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Reportable segment Adjusted EBITDA	$	272		$	136		$	472		$	220
Other		2			2			2			3
Unallocated		(25	)		(8	)		(43	)		(16	)
		249			130			431			207
Adjustments to reconcile to GAAP income (loss) from continuing operations before income taxes
Interest expense, net		(50	)		(42	)		(99	)		(84	)
Depreciation and amortization		(86	)		(77	)		(170	)		(150	)
Restructuring, asset impairment and other related charges		(1	)		(10	)		(1	)		(8	)
Gain on sale of businesses and noncurrent assets		—			—			27			—
Non-cash pension (expense) income		(2	)		25			8			48
Operational process engineering-related consultancy costs		(1	)		(7	)		(4	)		(10	)
Business acquisition and integration costs and purchase accounting adjustments		(2	)		—			(6	)		—
Unrealized gains (losses) on derivatives		1			(3	)		6			(4	)
Foreign exchange losses on cash		—			(1	)		(2	)		(1	)
Executive transition charges		(2	)		—			(2	)		(10	)
Gain on legal settlement		15			—			15			—
Costs associated with legacy sold facility		(3	)		—			(6	)		—
Other		1			(2	)		1			(4	)
Income (loss) from continuing operations before tax	$	119		$	13		$	198		$	(16	)

The following table presents a reconciliation of reportable segment assets to consolidated assets:


	As of June 30, 2022		As of December 31, 2021
Reportable segment assets	$	3,338	$	3,068
Other		45		37
Unallocated(1)		3,902		3,916
Total assets	$	7,285	$	7,021

(1)

Unallocated is comprised of cash and cash equivalents, other current assets, assets held for sale, entity-wide property, plant and equipment, operating lease right-of-use assets, goodwill, intangible assets, deferred income taxes, related party receivables and other noncurrent assets.

Information in Relation to Products

Net revenues by product line are as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Foodservice
Drinkware	$	352		$	233		$	620			398
Containers		312			238			620			447
Tableware		73			51			138			89
Serviceware and other		54			49			110			91
Food Merchandising
Tableware		111			99			213			181
Bakery/snack/produce/fruit containers		111			87			202			156
Meat trays		90			93			175			180
Prepared food trays		41			38			82			72
Egg cartons		29			21			57			47
Other		62			50			119			94
Beverage Merchandising
Cartons for fresh beverage products		230			208			447			400
Liquid packaging board		121			96			236			187
Paper products		69			83			140			157
Reportable segment net revenues		1,655			1,346			3,159			2,499
Other / Unallocated
Other		27			24			49			53
Intersegment eliminations		(42	)		(18	)		(73	)		(36	)
Net revenues	$	1,640		$	1,352		$	3,135		$	2,516

For all product lines, there is a relatively short time period between the receipt of the order and the transfer of control over the goods to the customer.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Nature of Operations and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Accounting Guidance Issued but Not Yet Adopted

Accounting Guidance Issued but Not Yet Adopted as of June 30, 2022

be applied through the end of calendar year 2022. We are currently evaluating the impact and whether we plan to adopt the optional expedients and exceptions provided under this new standard.

Acquisitions and Dispositions (Tables)

6 Months Ended

Jun. 30, 2022

Summary of Preliminary Purchase Price Allocation

The following table summarizes the preliminary purchase price allocation of the fair value of net tangible and intangible assets acquired and liabilities assumed:


	As of October 1, 2021
Cash and cash equivalents	$	3
Accounts receivable		46
Inventories		84
Other current assets		2
Property, plant and equipment		126
Operating lease right-of-use assets		31
Goodwill		68
Customer relationships		56
Trademarks		34
Deferred income taxes		8
Assets acquired	$	458
Accounts payable	$	17
Current portion of long-term debt		1
Current portion of operating lease liabilities		3
Accrued and other current liabilities		26
Long-term debt		1
Long-term operating lease liabilities		25
Long-term employee benefit obligations		6
Other noncurrent liabilities		1
Liabilities assumed	$	80
Total purchase price	$	378

Disposal Group, Held-for-sale, Not Discontinued Operations | Beverage Merchandising Asia

Carrying Amount of Major Classes of Assets and Liabilities

The carrying amounts of the major classes of Beverage Merchandising Asia’s assets and liabilities as of June 30, 2022 and December 31, 2021 comprised the following:


	As of June 30, 2022		As of December 31, 2021
Cash and cash equivalents	$	9	$	17
Accounts receivable, net		28		27
Inventories		27		23
Other current assets		3		3
Property, plant and equipment, net		45		48
Goodwill		14		14
Deferred income taxes		2		3
Other noncurrent assets		3		4
Total current assets held for sale	$	131	$	139
Accounts payable	$	6	$	7
Income taxes payable		1		3
Accrued and other current liabilities		14		18
Long-term employee benefit obligations		1		1
Deferred income taxes		2		2
Total current liabilities held for sale	$	24	$	31

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Restructuring, Asset Impairment and Other Related Charges (Tables)

6 Months Ended

Jun. 30, 2022

Restructuring And Related Activities [Abstract]

Summary of Restructuring, Asset Impairment and Other Related Charges

During the three months ended June 30, 2021, we recorded the following restructuring, asset impairment and other related charges:


	Other Asset Impairment		Employee Terminations		Total
Beverage Merchandising	$	—	$	8	$	8
Other		2		—		2
Total	$	2	$	8	$	10

During the six months ended June 30, 2021, we recorded the following restructuring and other related charges:


	Employee Terminations		Total
Beverage Merchandising	$	8	$	8
Other		—		—
Total	$	8	$	8

Summary of Restructuring Liability

The following table summarizes the changes to our restructuring liability for the six months ended June 30, 2022:


	December 31, 2021		Charges to Earnings		Cash Paid			June 30, 2022
Employee termination costs	$	2	$	—	$	(1	)	$	1
Total	$	2	$	—	$	(1	)	$	1

Inventories (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Summary of the Components of Inventory

The components of inventories consisted of the following:


	As of June 30, 2022		As of December 31, 2021
Raw materials	$	273	$	226
Work in progress		130		102
Finished goods		599		427
Spare parts		101		99
Inventories	$	1,103	$	854

Property, Plant and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2022

Property Plant And Equipment [Abstract]

Summary of Property, Plant and Equipment, Net and Depreciation Expense

Property, plant and equipment, net consisted of the following:


	As of June 30, 2022			As of December 31, 2021
Land and land improvements	$	72		$	72
Buildings and building improvements		651			638
Machinery and equipment		3,448			3,383
Construction in progress		167			170
Property, plant and equipment, at cost		4,338			4,263
Less: accumulated depreciation		(2,579	)		(2,477	)
Property, plant and equipment, net	$	1,759		$	1,786

Depreciation expense related to property, plant and equipment was recognized in the following components in the condensed consolidated statements of income (loss):


	For the Three Months Ended June 30,				For The Six Months Ended June 30,
	2022		2021		2022		2021
Cost of sales	$	65	$	58	$	128	$	112
Selling, general and administrative expenses		6		6		12		12
Total depreciation expense	$	71	$	64	$	140	$	124

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill by Reportable Segment

Goodwill by reportable segment was as follows:


	Foodservice		Food Merchandising		Beverage Merchandising		Other (1)		Total
Balance as of December 31, 2021	$	990	$	770	$	52	$	—	$	1,812
Measurement period adjustment		2		—		—		—		2
Balance as of June 30, 2022	$	992	$	770	$	52	$	—	$	1,814
Accumulated impairment losses	$	—	$	—	$	—	$	15	$	15

(1)

Other includes operations that do not meet the quantitative threshold for reportable segments.

Summary of Indefinite-Lived Intangible Assets

Intangible assets, net consisted of the following:


	As of June 30, 2022							As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Finite-lived intangible assets
Customer relationships	$	1,073	$	(622	)	$	451	$	1,075	$	(594	)	$	481
Trademarks		42		(10	)		32		42		(9	)		33
Other		12		(12	)		—		12		(12	)		—
Total finite-lived intangible assets	$	1,127	$	(644	)	$	483	$	1,129	$	(615	)	$	514
Indefinite-lived intangible assets
Trademarks	$	554	$	—		$	554	$	554	$	—		$	554
Other		59		—			59		59		—			59
Total indefinite-lived intangible assets	$	613	$	—		$	613	$	613	$	—		$	613
Total intangible assets	$	1,740	$	(644	)	$	1,096	$	1,742	$	(615	)	$	1,127

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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-Name Accounting Standards Codification
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+ Details

Accrued and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Payables And Accruals [Abstract]

Schedule of Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following:


	As of June 30, 2022		As of December 31, 2021
Accrued personnel costs	$	111	$	86
Accrued rebates and credits		95		87
Accrued interest		17		19
Other(1)		149		123
Accrued and other current liabilities	$	372	$	315

(1) Other includes items such as accruals for freight, utilities and property and other non-income related taxes.

Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Summary of Debt

Debt consisted of the following:


	As of			As of
	June 30,			December 31,
	2022			2021
Credit Agreement	$	2,239		$	2,250
Notes:
4.000% Senior Secured Notes due 2027		1,000			1,000
4.375% Senior Secured Notes due 2028		500			500
Pactiv Debentures:
7.950% Debentures due 2025		276			276
8.375% Debentures due 2027		200			200
Other		49			53
Total principal amount of borrowings		4,264			4,279
Deferred financing transaction costs (“DIC”)		(16	)		(17	)
Original issue discounts, net of premiums (“OID”)		(11	)		(12	)
		4,237			4,250
Less: current portion		(30	)		(30	)
Long-term debt	$	4,207		$	4,220

Summary of Components of the Credit Agreement

The Credit Agreement comprises the following term and revolving tranches:


	Maturity Date	Value Drawn or Utilized as of June 30, 2022		Applicable Interest Rate as of June 30, 2022
Term Tranches
U.S. term loans Tranche B-2	February 5, 2026	$	1,231	LIBOR (floor of 0.000%) + 3.250%
U.S. term loans Tranche B-3	September 24, 2028	$	1,008	LIBOR (floor of 0.500%) + 3.500%
Revolving Tranche(1)
U.S. Revolving Loans	August 5, 2024	$	44		—

(1) The Revolving Tranche represents a $250 million facility. The amount utilized is in the form of letters of credit.

Schedule of Outstanding Notes

Outstanding Notes, as of June 30, 2022, are summarized below:


	Maturity Date	Interest Payment Dates
4.000% Senior Secured Notes due 2027	October 15, 2027	April 15 and October 15
4.375% Senior Secured Notes due 2028	October 15, 2028	April 15 and October 15 commencing April 15, 2022

As of June 30, 2022, we had the following outstanding debentures (together, the “Pactiv Debentures”):


	Maturity Date	Interest Payment Dates
7.950% Debentures due 2025	December 15, 2025	June 15 and December 15
8.375% Debentures due 2027	April 15, 2027	April 15 and October 15

Schedule of Required Future Repayments of Outstanding Debt

Below is a schedule of required future repayments on our debt outstanding as of June 30, 2022:



2022	$	15
2023		30
2024		29
2025		304
2026		1,202
Thereafter		2,684
Total principal amount of borrowings	$	4,264

Schedule of Carrying Values and Fair Values of Debt Outstanding

Below is a schedule of carrying values and fair values of our debt outstanding:


	As of June 30, 2022				As of December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Agreement	$	2,228	$	2,111	$	2,239	$	2,243
Notes:
4.000% Senior Secured Notes due 2027		992		856		991		975
4.375% Senior Secured Notes due 2028		495		426		495		497
Pactiv Debentures:
7.950% Debentures due 2025		274		243		273		305
8.375% Debentures due 2027		199		176		199		222
Other		49		49		53		53
Total	$	4,237	$	3,861	$	4,250	$	4,295

Interest Expense, Net

Interest expense, net consisted of the following:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Interest expense:
Credit Agreement	$	23		$	20		$	44		$	39
Notes		16			10			31			20
Pactiv Debentures		9			9			19			19
Interest income		(1	)		—			(1	)		(1	)
Amortization:
DIC		—			1			1			2
OID		1			1			1			1
Net foreign currency exchange (gains) losses		—			(1	)		1			—
Loss on extinguishment of debt:
Redemption premiums		—			—			—			1
Other		2			2			3			3
Interest expense, net	$	50		$	42		$	99		$	84

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

We had the following derivative instruments recorded at fair value in our condensed consolidated balance sheets:


	As of June 30, 2022					As of December 31, 2021
	Asset Derivatives		Liability Derivatives			Asset Derivatives		Liability Derivatives
Commodity swap contracts	$	7	$	(1	)	$	1	$	(1	)
Total fair value	$	7	$	(1	)	$	1	$	(1	)
Recorded in:
Other current assets	$	7	$	—		$	1	$	—
Accrued and other current liabilities		—		—			—		(1	)
Other noncurrent liabilities		—		(1	)		—		—
Total fair value	$	7	$	(1	)	$	1	$	(1	)

Summary of Outstanding Commodity Derivative Contracts

The following table provides the detail of outstanding commodity derivative contracts as of June 30, 2022:


Type	Unit of Measure	Contracted Volume		Contracted Price Range	Contracted Date of Maturity
Benzene swaps	U.S. liquid gallon		3,916,502	$3.12 - $4.13	Aug 2022 - Feb 2023
Natural gas swaps	Million BTU		3,148,940	$2.81 - $4.63	Aug 2022 - Dec 2025

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details

Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Net Periodic Benefit (Expense) Income for Defined Benefit Pension Plans and Other Post-employment Benefit Plans

Net periodic benefit (expense) income for defined benefit pension plans and other post-employment benefit plans consisted of the following:


	For the Three Months Ended June 30,						For The Six Months Ended June 30,
	2022			2021			2022			2021
Service cost	$	(1	)	$	(1	)	$	(1	)	$	(3	)
Interest cost		(16	)		(28	)		(37	)		(55	)
Expected return on plan assets		14			53			35			103
Ongoing net periodic benefit (expense) income		(3	)		24			(3	)		45
Income due to settlement(1)		—			—			10			—
Total net periodic benefit (expense) income	$	(3	)	$	24		$	7		$	45

(1)

Refer to the Pension Partial Settlement Transactions section below for additional details.

Net periodic benefit (expense) income for defined benefit pension plans and other post-employment benefit plans was recognized as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Cost of sales	$	(1	)	$	(1	)	$	(1	)	$	(3	)
Non-operating (expense) income, net		(2	)		25			8			48
Total net periodic benefit (expense) income	$	(3	)	$	24		$	7		$	45

Other Income, Net (Tables)

6 Months Ended

Jun. 30, 2022

Other Income And Expenses [Abstract]

Schedule of Other Income, Net

Other income, net consisted of the following:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Gain on sale of businesses and noncurrent assets	$	—		$	—		$	27		$	—
Gain on legal settlement(1)		15			—			15			—
Foreign exchange losses on cash(2)		—			(1	)		(2	)		(1	)
Transition service agreement income(3)		—			3			1			7
Other		(3	)		3			(1	)		5
Other income, net	$	12		$	5		$	40		$	11

(1)

Reflects a gain, net of costs, arising from the settlement of a historical legal action.

(2)

Primarily arose from holding U.S. dollars in non-U.S. dollar functional currency entities.

(3)

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table summarizes the changes in our balances of each component of accumulated other comprehensive loss (“AOCL”):


	For the Three Months Ended June 30,						For The Six Months Ended June 30,
	2022			2021			2022			2021
Currency translation adjustments:
Balance as of beginning of period	$	(203	)	$	(209	)	$	(207	)	$	(189	)
Currency translation adjustments		(10	)		7			(6	)		(2	)
Amounts reclassified from AOCL(1)		—			—			—			(11	)
Other comprehensive (loss) income		(10	)		7			(6	)		(13	)
Balance as of end of period	$	(213	)	$	(202	)	$	(213	)	$	(202	)
Defined benefit plans:
Balance as of beginning of period	$	5		$	(160	)	$	108		$	(160	)
Net actuarial loss arising during year(2)		—			—			(126	)		—
Deferred tax benefit on net actuarial loss		—			—			31			—
Gain reclassified from AOCL
Defined benefit plan settlement gain		—			—			(10	)		—
Deferred tax expense on reclassification		—			—			2			—
Other comprehensive loss		—			—			(103	)		—
Balance as of end of period	$	5		$	(160	)	$	5		$	(160	)
AOCL
Balance as of beginning of period	$	(198	)	$	(369	)	$	(99	)	$	(349	)
Other comprehensive (loss) income		(10	)		7			(109	)		(13	)
Balance as of end of period	$	(208	)	$	(362	)	$	(208	)	$	(362	)

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Related Party Transactions


	Transaction Value for the						Transaction Value for the
	Three Months Ended June 30,						For The Six Months Ended June 30,						Balance Outstanding as of
	2022			2021			2022			2021			June 30, 2022			December 31, 2021
Balances and transactions with joint ventures
Included in other current assets													$	4		$	9
Sale of goods and services(1)	$	3		$	6		$	10		$	16
Balances and transactions with other entities controlled by Mr. Graeme Hart
Current related party receivables(2)														50			48
Sale of goods and services(2)		106			93			206			171
Transition services agreements and rental income(2)		—			3			1			7
Charges(3)		3			2			3			7
Related party payables(2)														(9	)		(10	)
Purchase of goods(2)		(21	)		(26	)		(48	)		(51	)
Charges(3)		(3	)		—			(6	)		(6	)

(1)

All transactions with joint ventures are settled in cash. Sales of goods and services are negotiated based on market rates. All amounts are unsecured, non-interest bearing and repayable on demand.

(2)

(3)

Equity Based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Restricted Stock Units (RSUs)

Summary of Restricted Stock Unit Activity

The following table summarizes RSU activity during 2022:


(In thousands, except per share amounts)	Number of Stock Units			Weighted Average Grant Date Fair Value
Non-vested, at January 1		1,491		$	14.67
Granted(1)		1,261			9.23
Forfeited		(83	)		12.44
Vested		(412	)		15.39
Non-vested, at June 30		2,257		$	11.58

(1)

Includes 21 thousand shares reserved for issuance upon the settlement of dividend-equivalent rights carried by the reported RSUs concurrently with the settlement of such RSUs for shares.

Performance Stock Units (PSU)

Summary of Performance Stock Unit Activity

The following table summarizes PSU activity during 2022:


(In thousands, except per share amounts)	Number of Stock Units			Weighted Average Grant Date Fair Value
Non-vested, at January 1		—		$	—
Granted(1)		1,160			9.13
Forfeited		(49	)		9.18
Non-vested, at June 30		1,111		$	9.13

(1)

Includes 21 thousand shares reserved for issuance upon the settlement of dividend-equivalent rights carried by the reported PSUs concurrently with the settlement of such PSUs for shares.

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Summary of the Basic and Diluted Earnings (Loss) Per Share

Earnings (loss) per share, including a reconciliation of the number of shares used for our earnings (loss) per share calculation, was as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Numerator
Net earnings (loss) attributable to common shareholders - continuing operations	$	73		$	8		$	116		$	(4	)
Less: dividend-equivalents declared for equity based awards		(1	)		—			(1	)		—
Net earnings (loss) available to common shareholders - continuing operations		72			8			115			(4	)
Net loss attributable to common shareholders - discontinued operations		—			(1	)		—			(4	)
Total net earnings (loss) available to common shareholders	$	72		$	7		$	115		$	(8	)
Denominator
Weighted average number of shares outstanding - basic		177.7			177.4			177.7			177.3
Effect of dilutive securities		0.6			0.3			0.5			—
Weighted average number of shares outstanding - diluted		178.3			177.7			178.2			177.3
Earnings (loss) per share attributable to Pactiv Evergreen Inc. common shareholders
From continuing operations
Basic	$	0.41		$	0.05		$	0.65		$	(0.02	)
Diluted	$	0.40		$	0.05		$	0.65		$	(0.02	)
From discontinued operations
Basic	$	—		$	(0.01	)	$	—		$	(0.02	)
Diluted	$	—		$	(0.01	)	$	—		$	(0.02	)
Total
Basic	$	0.41		$	0.04		$	0.65		$	(0.04	)
Diluted	$	0.40		$	0.04		$	0.65		$	(0.04	)

Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Reportable segment assets represent trade receivables, inventory and property, plant and equipment.


	Foodservice		Food Merchandising		Beverage Merchandising			Reportable Segment Total
For the Three Months Ended June 30, 2022
Net revenues	$	791	$	444	$	378		$	1,613
Intersegment revenues		—		—		42			42
Total reportable segment net revenues	$	791	$	444	$	420		$	1,655
Adjusted EBITDA	$	165	$	78	$	29		$	272

For the Three Months Ended June 30, 2021
Net revenues	$	571	$	388	$	369		$	1,328
Intersegment revenues		—		—		18			18
Total reportable segment net revenues	$	571	$	388	$	387		$	1,346
Adjusted EBITDA	$	62	$	59	$	15		$	136

For the Six Months Ended June 30, 2022
Net revenues	$	1,488	$	848	$	750		$	3,086
Intersegment revenues		—		—		73			73
Total reportable segment net revenues	$	1,488	$	848	$	823		$	3,159
Adjusted EBITDA	$	281	$	138	$	53		$	472

For the Six Months Ended June 30, 2021
Net revenues	$	1,025	$	730	$	708		$	2,463
Intersegment revenues		—		—		36			36
Total reportable segment net revenues	$	1,025	$	730	$	744		$	2,499
Adjusted EBITDA	$	123	$	114	$	(17	)	$	220

Reportable segment assets consisted of the following:


	Foodservice		Food Merchandising		Beverage Merchandising		Reportable Segment Total
As of June 30, 2022	$	1,528	$	819	$	991	$	3,338
As of December 31, 2021		1,380		737		951		3,068

Reconciliation of Operating Profit (Loss)

The following table presents a reconciliation of reportable segment Adjusted EBITDA to consolidated GAAP income (loss) from continuing operations before income taxes:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Reportable segment Adjusted EBITDA	$	272		$	136		$	472		$	220
Other		2			2			2			3
Unallocated		(25	)		(8	)		(43	)		(16	)
		249			130			431			207
Adjustments to reconcile to GAAP income (loss) from continuing operations before income taxes
Interest expense, net		(50	)		(42	)		(99	)		(84	)
Depreciation and amortization		(86	)		(77	)		(170	)		(150	)
Restructuring, asset impairment and other related charges		(1	)		(10	)		(1	)		(8	)
Gain on sale of businesses and noncurrent assets		—			—			27			—
Non-cash pension (expense) income		(2	)		25			8			48
Operational process engineering-related consultancy costs		(1	)		(7	)		(4	)		(10	)
Business acquisition and integration costs and purchase accounting adjustments		(2	)		—			(6	)		—
Unrealized gains (losses) on derivatives		1			(3	)		6			(4	)
Foreign exchange losses on cash		—			(1	)		(2	)		(1	)
Executive transition charges		(2	)		—			(2	)		(10	)
Gain on legal settlement		15			—			15			—
Costs associated with legacy sold facility		(3	)		—			(6	)		—
Other		1			(2	)		1			(4	)
Income (loss) from continuing operations before tax	$	119		$	13		$	198		$	(16	)

Reconciliation of Assets from Segment to Consolidated

The following table presents a reconciliation of reportable segment assets to consolidated assets:


	As of June 30, 2022		As of December 31, 2021
Reportable segment assets	$	3,338	$	3,068
Other		45		37
Unallocated(1)		3,902		3,916
Total assets	$	7,285	$	7,021

(1)

Summary of Net Revenues by Product Line

Net revenues by product line are as follows:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2022			2021			2022			2021
Foodservice
Drinkware	$	352		$	233		$	620			398
Containers		312			238			620			447
Tableware		73			51			138			89
Serviceware and other		54			49			110			91
Food Merchandising
Tableware		111			99			213			181
Bakery/snack/produce/fruit containers		111			87			202			156
Meat trays		90			93			175			180
Prepared food trays		41			38			82			72
Egg cartons		29			21			57			47
Other		62			50			119			94
Beverage Merchandising
Cartons for fresh beverage products		230			208			447			400
Liquid packaging board		121			96			236			187
Paper products		69			83			140			157
Reportable segment net revenues		1,655			1,346			3,159			2,499
Other / Unallocated
Other		27			24			49			53
Intersegment eliminations		(42	)		(18	)		(73	)		(36	)
Net revenues	$	1,640		$	1,352		$	3,135		$	2,516

Acquisitions and Dispositions - Additional Information (Details) $ in Millions					3 Months Ended		6 Months Ended
	Mar. 29, 2022 USD ($)	Jan. 04, 2022 USD ($)	Oct. 12, 2021	Oct. 01, 2021 USD ($) Facility	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Acquisitions And Dispositions [Line Items]
Proceeds from sale of business	$ 47
Gain on sale of businesses							$ 27
Goodwill					$ 1,814		1,814		$ 1,812
Percentage of dispositions joint venture			50.00%
Preliminary gain on sale of equity interests							27
Discontinued operations, disposed of by sale \| SIG Schweizerische Industrie-Gesellschaft GmbH \| Beverage Merchandising Asia
Acquisitions And Dispositions [Line Items]
Proceeds from sale of business		$ 336
Income from operations before income taxes					6	$ 5	11	$ 11
Foodservice
Acquisitions And Dispositions [Line Items]
Goodwill					992		992		$ 990
Fabri-Kal
Acquisitions And Dispositions [Line Items]
Percentage of outstanding ownership interests acquired				100.00%
Purchase price				$ 378
Proceeds from sale of business							2
Net revenues					121		$ 223
Increase in cost of acquired inventories				12
Goodwill				68
Business combination increase decrease in goodwill					2
Business combination, increase decrease in inventory					$ 2
Fabri-Kal \| Foodservice
Acquisitions And Dispositions [Line Items]
Goodwill				68
Goodwill expected to be tax deductible				42
Fabri-Kal \| Trademarks
Acquisitions And Dispositions [Line Items]
Intangible assets				34
Fabri-Kal \| Trademarks \| Foodservice
Acquisitions And Dispositions [Line Items]
Intangible assets				$ 34
Finite-lived intangible assets estimated useful lives				10 years
Fabri-Kal \| Customer Relationships
Acquisitions And Dispositions [Line Items]
Intangible assets				$ 56
Fabri-Kal \| Customer Relationships \| Foodservice
Acquisitions And Dispositions [Line Items]
Intangible assets				$ 56
Finite-lived intangible assets estimated useful lives				8 years
Fabri-Kal \| United States
Acquisitions And Dispositions [Line Items]
Number of manufacturing facilities acquired \| Facility				4

Acquisitions and Dispositions - Summary of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021	Oct. 01, 2021
Business Acquisition [Line Items]
Goodwill	$ 1,814	$ 1,812
Fabri-Kal
Business Acquisition [Line Items]
Cash and cash equivalents			$ 3
Accounts receivable			46
Inventories			84
Other current assets			2
Property, plant and equipment			126
Operating lease right-of-use assets			31
Goodwill			68
Deferred income taxes			8
Assets acquired			458
Accounts payable			17
Current portion of long-term debt			1
Current portion of operating lease liabilities			3
Accrued and other current liabilities			26
Long-term debt			1
Long-term operating lease liabilities			25
Long-term employee benefit obligations			6
Other noncurrent liabilities			1
Liabilities assumed			80
Total purchase price			378
Customer Relationships \| Fabri-Kal
Business Acquisition [Line Items]
Intangible assets			56
Trademarks \| Fabri-Kal
Business Acquisition [Line Items]
Intangible assets			$ 34

Acquisitions and Dispositions - Carrying Amount of Major Classes of Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash and cash equivalents	$ 9		$ 0
Disposal Group, Held-for-sale, Not Discontinued Operations \| Beverage Merchandising Asia
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash and cash equivalents	9	$ 17
Accounts receivable, net	28	27
Inventories	27	23
Other current assets	3	3
Property, plant and equipment, net	45	48
Goodwill	14	14
Deferred income taxes	2	3
Other noncurrent assets	3	4
Total current assets held for sale	131	139
Accounts payable	6	7
Income taxes payable	1	3
Accrued and other current liabilities	14	18
Long-term employee benefit obligations	1	1
Deferred income taxes	2	2
Total current liabilities held for sale	$ 24	$ 31

Restructuring, Asset Impairment and Other Related Charges - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Restructuring Cost And Reserve [Line Items]
Contractual termination benefits		$ 8		$ 8
South American closures business
Restructuring Cost And Reserve [Line Items]
Non-cash impairment charge		2
Coated Groundwood Paper Production Line
Restructuring Cost And Reserve [Line Items]
Recognized disassembly costs	$ 1
Contractual termination benefits		8
Beverage Merchandising
Restructuring Cost And Reserve [Line Items]
Other restructuring charges	$ 1		$ 1
Contractual termination benefits		$ 8		$ 8

Restructuring, Asset Impairment and Other Related Charges - Summary of Restructuring, Asset Impairment and Other Related Charges (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Restructuring Cost And Reserve [Line Items]
Other asset impairment charges	$ 2
Employee Terminations	8	$ 8
Total	10	8
Beverage Merchandising
Restructuring Cost And Reserve [Line Items]
Employee Terminations	8	8
Total	8	$ 8
Other
Restructuring Cost And Reserve [Line Items]
Other asset impairment charges	2
Total	$ 2

Restructuring, Asset Impairment and Other Related Charges - Summary of Restructuring Liability (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	$ 2
Cash Paid	(1)
Restructuring liability, ending balance	1
Employee terminations
Restructuring Reserve [Roll Forward]
Restructuring liability, beginning balance	2
Cash Paid	(1)
Restructuring liability, ending balance	$ 1

Inventories - Summary of the Components of Inventory (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 273	$ 226
Work in progress	130	102
Finished goods	599	427
Spare parts	101	99
Inventories	$ 1,103	$ 854

Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 4,338	$ 4,263
Less: accumulated depreciation	(2,579)	(2,477)
Property, plant and equipment, net	1,759	1,786
Land and Land Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	72	72
Buildings and Building Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	651	638
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	3,448	3,383
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, at cost	$ 167	$ 170

Property, Plant and Equipment, Net - Depreciation Expense Related to Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property Plant And Equipment [Abstract]
Cost of sales	$ 65	$ 58	$ 128	$ 112
Selling, general and administrative expenses	6	6	12	12
Total depreciation expense	$ 71	$ 64	$ 140	$ 124

Goodwill and Intangible Assets - Summary of Goodwill by Reportable Segment (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Line Items]
Beginning Balance	$ 1,812
Measurement period adjustment	2
Ending Balance	1,814
Accumulated impairment losses	15
Foodservice
Goodwill [Line Items]
Beginning Balance	990
Measurement period adjustment	2
Ending Balance	992
Food Merchandising
Goodwill [Line Items]
Beginning Balance	770
Measurement period adjustment	0
Ending Balance	770
Beverage Merchandising
Goodwill [Line Items]
Beginning Balance	52
Measurement period adjustment	0
Ending Balance	52
Other
Goodwill [Line Items]
Accumulated impairment losses	$ 15

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,127	$ 1,129
Accumulated Amortization	(644)	(615)
Net	483	514
Indefinite-lived intangible assets	613	613
Gross Carrying Amount	1,740	1,742
Net	1,096	1,127
Trademarks
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	554	554
Other
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	59	59
Customer Relationships
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,073	1,075
Accumulated Amortization	(622)	(594)
Net	451	481
Trademarks
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	42	42
Accumulated Amortization	(10)	(9)
Net	32	33
Other
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items]
Gross Carrying Amount	12	12
Accumulated Amortization	$ (12)	$ (12)

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Selling, General and Administrative Expenses
Finite Lived Intangible Assets [Line Items]
Amortization expense	$ 15	$ 13	$ 30	$ 26

Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Payables And Accruals [Abstract]
Accrued personnel costs	$ 111	$ 86
Accrued rebates and credits	95	87
Accrued interest	17	19
Other	149	123
Accrued and other current liabilities	$ 372	$ 315

Debt - Summary of Debt (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total principal amount of borrowings	$ 4,264	$ 4,279
Deferred financing transaction costs (“DIC”)	(16)	(17)
Original issue discounts, net of premiums (“OID”)	(11)	(12)
Debt, net	4,237	4,250
Less: current portion	(30)	(30)
Long-term debt	4,207	4,220
4.000% Senior Secured Notes due 2027 \| Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	1,000	1,000
4.375% Senior Secured Notes due 2028 \| Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	500	500
7.950% Debentures due 2025 \| Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	276	276
8.375% Debentures due 2027 \| Unsecured Debt
Debt Instrument [Line Items]
Long-term debt, gross	200	200
Other
Debt Instrument [Line Items]
Long-term debt, gross	49	53
Secured Debt \| Credit Agreement \| Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,239	$ 2,250

Debt - Summary of Debt (Parenthetical) (Details)	6 Months Ended	12 Months Ended
Debt - Summary of Debt (Parenthetical) (Details)	Jun. 30, 2022	Dec. 31, 2021
4.000% Senior Secured Notes due 2027 \| Senior Notes
Debt Instrument [Line Items]
Interest rate	4.00%	4.00%
Debt instrument maturity year	2027	2027
4.375% Senior Secured Notes due 2028 \| Senior Notes
Debt Instrument [Line Items]
Interest rate	4.375%	4.375%
Debt instrument maturity year	2028	2028
7.950% Debentures due 2025 \| Unsecured Debt
Debt Instrument [Line Items]
Interest rate	7.95%	7.95%
Debt instrument maturity year	2025	2025
8.375% Debentures due 2027 \| Unsecured Debt
Debt Instrument [Line Items]
Interest rate	8.375%	8.375%
Debt instrument maturity year	2027	2027

Debt - Additional Information (Details) - USD ($) $ in Millions		6 Months Ended
	Sep. 24, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Instrument [Line Items]
Repayments of Long-term Debt		$ 11	$ 65
Five Point One Two Five Percent Notes Due Two Thousand Twenty Three
Debt Instrument [Line Items]
Interest rate			5.125%
Repayments of Long-term Debt			$ 59
Redemption price percentage			101.281%
Loss on extinguishment of debt		1
U S Term Loans Tranche B3 \| Credit Agreement \| Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,015	$ 1,008
U S Term Loans Tranche B3 \| 4.375% Senior Secured Notes due 2028
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 500
Interest rate	4.375%
U S Term Loans Tranche B1 \| Credit Agreement \| Line of Credit
Debt Instrument [Line Items]
Repayments of Long-term Debt	$ 1,207

Debt -Summary of Components of the Credit Agreement (Details) - Line of Credit - Credit Agreement - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Sep. 24, 2021
U S Term Loans Tranche B2
Line Of Credit Facility [Line Items]
Debt Instrument Maturity Date	Feb. 05, 2026
Long-term debt, gross	$ 1,231
U S Term Loans Tranche B2 \| London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Variable rate floor	0.00%
Basis spread on variable rate	3.25%
U S Term Loans Tranche B3
Line Of Credit Facility [Line Items]
Debt Instrument Maturity Date	Sep. 24, 2028
Long-term debt, gross	$ 1,008	$ 1,015
U S Term Loans Tranche B3 \| London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Variable rate floor	0.50%
Basis spread on variable rate	3.50%
U.S. Revolving Loans
Line Of Credit Facility [Line Items]
Debt Instrument Maturity Date	Aug. 05, 2024
Value Utilized	$ 44

Debt - Summary of Components of the Credit Agreement (Parenthetical) (Details)	Jun. 30, 2022 USD ($)
Line of Credit \| Credit Agreement \| U.S. Revolving Loans
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 250,000,000

Debt - Credit Agreement - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021
U S Term Loans Tranche B2 \| Credit Agreement \| Line of Credit
Line Of Credit Facility [Line Items]
Weighted average contractual interest rate	3.74%		3.37%
U S Term Loans Tranche B3
Line Of Credit Facility [Line Items]
Weighted average contractual interest rate	4.15%
U S Term Loans Tranche B1 \| Credit Agreement \| Line of Credit
Line Of Credit Facility [Line Items]
Weighted average contractual interest rate			2.87%
Secured Debt \| Credit Agreement \| Line of Credit
Line Of Credit Facility [Line Items]
Percentage of quarterly amortization payments	0.25%
Due amount of excess cash flow prepayments		$ 0
Secured Debt \| Credit Agreement \| Line of Credit \| Maximum
Line Of Credit Facility [Line Items]
Percentage of quarterly amortization payments	50.00%
Periodic prepayment percentage if leverage ratio threshold met	25.00%
Secured Debt \| Credit Agreement \| Line of Credit \| Minimum
Line Of Credit Facility [Line Items]
Periodic prepayment percentage if leverage ratio threshold met	0.00%

Debt - Schedule of Outstanding Notes (Details) - Senior Notes	6 Months Ended
	Jun. 30, 2022
4.000% Senior Secured Notes due 2027
Debt Instrument [Line Items]
Maturity Date	Oct. 15, 2027
Interest Payment Dates	April 15 and October 15
4.375% Senior Secured Notes due 2028
Debt Instrument [Line Items]
Maturity Date	Oct. 15, 2028
Interest Payment Dates	April 15 and October 15commencing April 15, 2022

Debt - Schedule of Outstanding Notes (Parenthetical) (Details) - Senior Secured Notes	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
4.000% Senior Secured Notes due 2027
Debt Instrument [Line Items]
Interest rate	4.00%	4.00%
Debt instrument maturity year	2027	2027
4.375% Senior Secured Notes due 2028
Debt Instrument [Line Items]
Interest rate	4.375%	4.375%
Debt instrument maturity year	2028	2028

Debt - Notes - Additional Information (Details) - Senior Notes	Jun. 30, 2022	Dec. 31, 2021
4.000% Senior Secured Notes due 2027
Debt Instrument [Line Items]
Interest rate	4.00%	4.00%
4.375% Senior Secured Notes due 2028
Debt Instrument [Line Items]
Interest rate	4.375%	4.375%

Debt - Schedule of Outstanding Debentures (Details) - Unsecured Debt	6 Months Ended
	Jun. 30, 2022
7.950% Debentures due 2025
Debt Instrument [Line Items]
Maturity Date	Dec. 15, 2025
Interest Payment Dates	June 15 and December 15
8.375% Debentures due 2027
Debt Instrument [Line Items]
Maturity Date	Apr. 15, 2027
Interest Payment Dates	April 15 and October 15

Debt - Schedule of Outstanding Debentures (Parenthetical) (Details) - Unsecured Debt	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
7.950% Debentures due 2025
Debt Instrument [Line Items]
Interest rate	7.95%	7.95%
Debt instrument maturity year	2025	2025
8.375% Debentures due 2027
Debt Instrument [Line Items]
Interest rate	8.375%	8.375%
Debt instrument maturity year	2027	2027

Debt - Debentures - Additional Information (Details) - Unsecured Debt - 8.375% Debentures due 2027	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Interest rate	8.375%	8.375%
Redemption price percentage	100.00%

Debt - Other Debt - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Other
Debt Instrument [Line Items]
Long-term debt, gross	$ 49	$ 53

Debt -Schedule of Required Future Repayments of Outstanding Debt (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
2022	$ 15
2023	30
2024	29
2025	304
2026	1,202
Thereafter	2,684
Total principal amount of borrowings	$ 4,264	$ 4,279

Debt - Schedule of Carrying Values and Fair Values of Debt Outstanding (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
4.000% Senior Secured Notes due 2027 \| Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	$ 1,000	$ 1,000
4.375% Senior Secured Notes due 2028 \| Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	500	500
7.950% Debentures due 2025 \| Unsecured Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	276	276
8.375% Debentures due 2027 \| Unsecured Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	200	200
Other
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	49	53
Secured Debt \| Credit Agreement \| Line of Credit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	2,239	2,250
Reported Value Measurement
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total	4,237	4,250
Reported Value Measurement \| 4.000% Senior Secured Notes due 2027 \| Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	992	991
Reported Value Measurement \| 4.375% Senior Secured Notes due 2028 \| Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	495	495
Reported Value Measurement \| 7.950% Debentures due 2025 \| Unsecured Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	274	273
Reported Value Measurement \| 8.375% Debentures due 2027 \| Unsecured Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	199	199
Reported Value Measurement \| Other
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	49	53
Reported Value Measurement \| Secured Debt \| Credit Agreement \| Line of Credit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	2,228	2,239
Estimate of Fair Value Measurement
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total	3,861	4,295
Estimate of Fair Value Measurement \| 4.000% Senior Secured Notes due 2027 \| Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	856	975
Estimate of Fair Value Measurement \| 4.375% Senior Secured Notes due 2028 \| Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	426	497
Estimate of Fair Value Measurement \| 7.950% Debentures due 2025 \| Unsecured Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	243	305
Estimate of Fair Value Measurement \| 8.375% Debentures due 2027 \| Unsecured Debt
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	176	222
Estimate of Fair Value Measurement \| Other
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, gross	49	53
Estimate of Fair Value Measurement \| Secured Debt \| Credit Agreement \| Line of Credit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 2,111	$ 2,243

Debt - Schedule of Carrying Values and Fair Values of Debt Outstanding (Parenthetical) (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Senior Notes \| 4.000% Senior Secured Notes due 2027
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest rate	4.00%	4.00%
Debt instrument maturity year	2027	2027
Senior Notes \| 4.375% Senior Secured Notes due 2028
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest rate	4.375%	4.375%
Debt instrument maturity year	2028	2028
Unsecured Debt \| 7.950% Debentures due 2025
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest rate	7.95%	7.95%
Debt instrument maturity year	2025	2025
Unsecured Debt \| 8.375% Debentures due 2027
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Interest rate	8.375%	8.375%
Debt instrument maturity year	2027	2027

Debt - Interest Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Instrument [Line Items]
Interest income	$ (1)		$ (1)	$ (1)
Amortization of deferred financing transaction costs		$ 1	1	2
Amortization of original issue discounts	1	1	1	1
Net foreign currency exchange (gains) losses		(1)	1
Redemption premiums				1
Other	2	2	3	3
Interest expense, net	50	42	99	84
Line of Credit \| Secured Debt \| Credit Agreement
Debt Instrument [Line Items]
Interest expense, debt	23	20	44	39
Senior Notes
Debt Instrument [Line Items]
Interest expense, debt	16	10	31	20
Unsecured Debt
Debt Instrument [Line Items]
Interest expense, debt	$ 9	$ 9	$ 19	$ 19

Financial Instruments - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Asset Derivatives	$ 7	$ 1
Liability Derivatives	(1)	(1)
Other current assets
Derivative [Line Items]
Asset Derivatives	7	1
Other noncurrent liabilities
Derivative [Line Items]
Liability Derivatives	(1)
Commodity swap contracts
Derivative [Line Items]
Asset Derivatives	7	1
Liability Derivatives	$ (1)	(1)
Accrued and other current liabilities
Derivative [Line Items]
Liability Derivatives		$ (1)

Financial Instruments - Additional information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Unrealized gain (loss) on derivatives	$ 1	$ (3)	$ 6	$ (4)

Financial Instruments - Summary of Outstanding Commodity Derivative Contracts (Details)	6 Months Ended
	Jun. 30, 2022 MMBTU $ / MMBTU $ / gal gal
Natural gas swaps
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Energy Measure \| MMBTU	3,148,940
Benzene swaps
Derivative [Line Items]
Contracted volume \| gal	3,916,502
Minimum \| Natural gas swaps
Derivative [Line Items]
Contracted price range \| $ / MMBTU	2.81
Minimum \| Benzene swaps
Derivative [Line Items]
Contracted price range \| $ / gal	3.12
Maximum \| Natural gas swaps
Derivative [Line Items]
Contracted price range \| $ / MMBTU	4.63
Maximum \| Benzene swaps
Derivative [Line Items]
Contracted price range \| $ / gal	4.13

Employee Benefits - Net Periodic Benefit (Expense) Income for Defined Benefit Pension Plans and Other Post-employment Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Compensation And Retirement Disclosure [Abstract]
Service cost	$ (1)	$ (1)	$ (1)	$ (3)
Interest cost	(16)	(28)	(37)	(55)
Expected return on plan assets	14	53	35	103
Ongoing net periodic benefit (expense) income	(3)	24	(3)	45
Income due to settlement			10
Total net periodic benefit (expense) income	$ (3)	$ 24	$ 7	$ 45

Employee Benefits - Net Periodic Defined Benefit (Expense) Income for Defined Benefit Pension Plans and Other Post-employment Benefit Plans Recognized (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plan Disclosure [Line Items]
Total net periodic benefit (expense) income	$ (3)	$ 24	$ 7	$ 45
Cost of Sales
Defined Benefit Plan Disclosure [Line Items]
Total net periodic benefit (expense) income	(1)	(1)	(1)	(3)
Non-operating Income, Net
Defined Benefit Plan Disclosure [Line Items]
Total net periodic benefit (expense) income	$ (2)	$ 25	$ 8	$ 48

Employee Benefits - Narrative (Details) $ in Millions			3 Months Ended			6 Months Ended
Employee Benefits - Narrative (Details) $ in Millions	Feb. 24, 2022 USD ($) Retiree	Jul. 21, 2021 USD ($) Retiree	Jun. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Non-cash pre-tax pension settlement gain			$ 2		$ (25)	$ (8)	$ (48)
Pactiv Evergreen Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions made						0
PEPP asset purchased	$ 1,260	$ 941
Projected benefit obligations	$ 1,257	$ 959
Pension benefits and annuity administration for retirees or their beneficiaries \| Retiree	13,300	16,300
Non-cash pre-tax pension settlement gain				$ 22		$ 10

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Other Income, Net - Schedule of Other Income, Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Income And Expenses [Abstract]
Gain on sale of businesses and noncurrent assets			$ 27
Gain on legal settlement	$ 15		15
Foreign exchange losses on cash		$ (1)	(2)	$ (1)
Transition service agreement income		3	1	7
Other	(3)	3	(1)	5
Other income, net	$ 12	$ 5	$ 40	$ 11

Commitments and Contingencies - Additional Information (Details) $ in Millions	Apr. 14, 2021 USD ($)
MP2 Energy LLC
Loss Contingencies [Line Items]
Loss contingency, damages sought, value	$ 50

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,217	$ 1,026	$ 1,288	$ 1,074
Ending balance	1,269	1,025	1,269	1,025
Currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(203)	(209)	(207)	(189)
Currency translation adjustments	(10)	7	(6)	(2)
Amounts reclassified from AOCL				(11)
Other comprehensive (loss) income	(10)	7	(6)	(13)
Ending balance	(213)	(202)	(213)	(202)
Defined benefit plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	5	(160)	108	(160)
Net actuarial loss arising during year			(126)
Deferred tax benefit on net actuarial gain			31
Defined benefit plan settlement gain			(10)
Deferred tax expense on reclassification			2
Other comprehensive (loss) income			(103)
Ending balance	5	(160)	5	(160)
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(198)	(369)	(99)	(349)
Other comprehensive (loss) income	(10)	7	(109)	(13)
Ending balance	$ (208)	$ (362)	$ (208)	$ (362)

Income Taxes - Additional information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income (loss) from continuing operations before tax	$ 119	$ 13	$ 198	$ (16)
Income tax (expense) benefit	$ (45)	$ (5)	(81)	13
Tax rate benefit amount			14	$ 10
Unrecognized tax benefits decrease in income tax returns			$ 10

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Related Party Transactions - Additional Information (Details)	Jun. 30, 2022
Packaging Finance Limited And Other Entities
Related Party Transaction [Line Items]
Ownership percentage	78.00%

Related Party Transactions - Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Due from related parties, current	$ 50		$ 50		$ 48
Purchase of goods	(21)	$ (26)	(48)	$ (51)
Joint Ventures
Related Party Transaction [Line Items]
Due from related parties, current	4		4		9
Sale of goods and services	3	6	10	16
Affiliated Entity
Related Party Transaction [Line Items]
Current related party receivables	50		50		48
Related party payables	(9)		(9)		$ (10)
Sale of goods and services \| Affiliated Entity
Related Party Transaction [Line Items]
Sale of goods and services	106	93	206	171
Transition services agreements and rental income \| Affiliated Entity
Related Party Transaction [Line Items]
Transition services agreements and rental income		3	1	7
Charges
Related Party Transaction [Line Items]
Related party transactions, expenses	(3)	0	(6)	(6)
Charges \| Affiliated Entity
Related Party Transaction [Line Items]
Amount of related party transaction	$ 3	$ 2	$ 3	$ 7

Related Party Transactions - Related Party Transactions (Parenthetical) (Details) - Affiliated Entity $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) Lease_agreement
Tax Matters Agreement
Related Party Transaction [Line Items]
Current related party payable \| $	$ 1
Lease Agreements
Related Party Transaction [Line Items]
Number of lease agreements \| Lease_agreement	2

Equity Based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 21, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized (in shares)					9,079,395
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized share-based compensation	$ 16		$ 16
Unrecognized share-based compensation, weighted-average recognition period (in years)			2 years 1 month 6 days
Fair value of shares vested			$ 4
Restricted Stock Units (RSUs) \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period			1 year
Restricted Stock Units (RSUs) \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period			3 years
Performance Stock Units (PSU)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized share-based compensation	8		$ 8
Unrecognized share-based compensation, weighted-average recognition period (in years)			2 years 2 months 12 days
Performance Stock Units (PSU) \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation PSUs vesting percentage			0.00%
Performance Stock Units (PSU) \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation PSUs vesting percentage			200.00%
Selling, General and Administrative Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 6	$ 2	$ 10	$ 6

Equity Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Number of Stock Units
Beginning balance, Non-vested \| shares	1,491
Granted \| shares	1,261
Forfeited \| shares	(83)
Vested \| shares	(412)
Ending balance, Non-vested \| shares	2,257
Weighted-Average Grant Date Fair Value
Beginning balance, Non-vested \| $ / shares	$ 14.67
Granted \| $ / shares	9.23
Forfeited \| $ / shares	12.44
Vested \| $ / shares	15.39
Ending balance, Non-vested \| $ / shares	$ 11.58

Equity Based Compensation - Summary of Restricted Stock Unit Activity (Parenthetical) (Details) shares in Thousands	Jun. 30, 2022 shares
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance	21

Equity Based Compensation - Summary of Performance Share Units Activity (Details) - Performance Stock Units (PSU) shares in Millions	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Number of Stock Units
Granted \| shares	1,160
Forfeited \| shares	(49)
Ending balance, Non-vested \| shares	1,111
Weighted-Average Grant Date Fair Value
Granted \| $ / shares	$ 9.13
Forfeited \| $ / shares	9.18
Ending balance, Non-vested \| $ / shares	$ 9.13

Equity Based Compensation - Summary of Performance Share Units Activity (Parenthetical) (Details) shares in Thousands	Jun. 30, 2022 shares
Performance Stock Units (PSU)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance	21

Earnings Per Share - Summary of the Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator
Net earnings (loss) attributable to common shareholders - continuing operations	$ 73	$ 8	$ 116	$ (4)
Less: dividend-equivalents declared for equity based awards	(1)		(1)
Net earnings (loss) available to common shareholders - continuing operations	72	8	115	(4)
Net loss attributable to common shareholders - discontinued operations		(1)		(4)
Total net earnings (loss) available to common shareholders	$ 72	$ 7	$ 115	$ (8)
Denominator
Weighted average number of shares outstanding - basic	177.7	177.4	177.7	177.3
Effect of dilutive securities	0.6	0.3	0.5
Weighted average number of shares outstanding - diluted	178.3	177.7	178.2	177.3
Earnings (loss) per share attributable to Pactiv Evergreen Inc. common stockholders, from continuing operations
Basic	$ 0.41	$ 0.05	$ 0.65	$ (0.02)
Diluted	0.40	0.05	0.65	(0.02)
Earnings (loss) per share attributable to Pactiv Evergreen Inc. common stockholders, from discontinued operations
Basic		(0.01)		(0.02)
Diluted		(0.01)		(0.02)
Earnings (loss) per share attributable to Pactiv Evergreen Inc. common stockholders, total
Basic	0.41	0.04	0.65	(0.04)
Diluted	$ 0.40	$ 0.04	$ 0.65	$ (0.04)

Earnings Per Share - Additional Information (Details) - $ / shares shares in Millions		3 Months Ended	6 Months Ended
	Aug. 01, 2022	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share Basic [Line Items]
Weighted average number of shares outstanding (in shares)		0.4	0.7	0.2
Subsequent Event
Earnings Per Share Basic [Line Items]
Dividends payable, per share	$ 0.10
Dividends payable, date declared	Aug. 01, 2022
Dividends payable, date to be paid	Sep. 15, 2022
Dividends payable, date of record	Aug. 31, 2022

Segment Information - Additional Information (Details)	6 Months Ended
Segment Information - Additional Information (Details)	Jun. 30, 2022 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segment Information - Segment Financial Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 1,640	$ 1,352	$ 3,135	$ 2,516
Reportable segment assets	7,285		7,285		$ 7,021
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net revenues	(42)	(18)	(73)	(36)
Unallocated
Segment Reporting Information [Line Items]
Reportable segment assets	3,902		3,902		3,916
Foodservice
Segment Reporting Information [Line Items]
Net revenues	791	571	1,488	1,025
Foodservice \| Operating Segments
Segment Reporting Information [Line Items]
Net revenues	791	571	1,488	1,025
Adjusted EBITDA	165	62	281	123
Reportable segment assets	1,528		1,528		1,380
Food Merchandising
Segment Reporting Information [Line Items]
Net revenues	444	388	848	730
Food Merchandising \| Operating Segments
Segment Reporting Information [Line Items]
Net revenues	444	388	848	730
Adjusted EBITDA	78	59	138	114
Reportable segment assets	819		819		737
Beverage Merchandising
Segment Reporting Information [Line Items]
Net revenues	378	369	750	708
Beverage Merchandising \| Intersegment Eliminations
Segment Reporting Information [Line Items]
Net revenues	42	18	73	36
Beverage Merchandising \| Operating Segments
Segment Reporting Information [Line Items]
Net revenues	420	387	823	744
Adjusted EBITDA	29	15	53	(17)
Reportable segment assets	991		991		951
Reportable Segments
Segment Reporting Information [Line Items]
Net revenues	1,613	1,328	3,086	2,463
Reportable Segments \| Intersegment Eliminations
Segment Reporting Information [Line Items]
Net revenues	42	18	73	36
Reportable Segments \| Operating Segments
Segment Reporting Information [Line Items]
Net revenues	1,655	1,346	3,159	2,499
Adjusted EBITDA	272	136	472	220
Reportable segment assets	3,338		3,338		3,068
Other \| Operating Segments
Segment Reporting Information [Line Items]
Net revenues	27	$ 24	49	$ 53
Reportable segment assets	$ 45		$ 45		$ 37

Segment Information - Reconciliation of EBITDA to Income (Loss) from Continuing Operations Before Income Tax (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Adjusted EBITDA	$ 249	$ 130	$ 431	$ 207
Interest expense, net	(50)	(42)	(99)	(84)
Depreciation and amortization	(86)	(77)	(170)	(150)
Restructuring, asset impairment and other related charges	(1)	(10)	(1)	(8)
Gain on sale of businesses and noncurrent assets			27
Non-cash pension (expense) income	(2)	25	8	48
Operational process engineering-related consultancy costs	(1)	(7)	(4)	(10)
Business acquisition and integration costs and purchase accounting adjustments	(2)		(6)
Unrealized gain (losses) on derivatives	1	(3)	6	(4)
Foreign exchange losses on cash		(1)	(2)	(1)
Executive transition charges	(2)		(2)	(10)
Gain on legal settlement	15		15
Costs associated with legacy sold facility	(3)		(6)
Other	1	(2)	1	(4)
Income (loss) from continuing operations before tax	119	13	198	(16)
Operating Segments \| Reportable Segments
Segment Reporting Information [Line Items]
Adjusted EBITDA	272	136	472	220
Operating Segments \| Other
Segment Reporting Information [Line Items]
Adjusted EBITDA	2	2	2	3
Unallocated
Segment Reporting Information [Line Items]
Adjusted EBITDA	$ (25)	$ (8)	$ (43)	$ (16)

Segment Information - Net Revenues by Product Lines (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Net revenues	$ 1,640	$ 1,352	$ 3,135	$ 2,516
Foodservice
Segment Reporting Information [Line Items]
Net revenues	791	571	1,488	1,025
Food Merchandising
Segment Reporting Information [Line Items]
Net revenues	444	388	848	730
Beverage Merchandising
Segment Reporting Information [Line Items]
Net revenues	378	369	750	708
Reportable Segments
Segment Reporting Information [Line Items]
Net revenues	1,613	1,328	3,086	2,463
Operating Segments \| Foodservice
Segment Reporting Information [Line Items]
Net revenues	791	571	1,488	1,025
Operating Segments \| Foodservice \| Containers
Segment Reporting Information [Line Items]
Net revenues	312	238	620	447
Operating Segments \| Foodservice \| Drinkware
Segment Reporting Information [Line Items]
Net revenues	352	233	620	398
Operating Segments \| Foodservice \| Tableware
Segment Reporting Information [Line Items]
Net revenues	73	51	138	89
Operating Segments \| Foodservice \| Serviceware and other
Segment Reporting Information [Line Items]
Net revenues	54	49	110	91
Operating Segments \| Food Merchandising
Segment Reporting Information [Line Items]
Net revenues	444	388	848	730
Operating Segments \| Food Merchandising \| Tableware
Segment Reporting Information [Line Items]
Net revenues	111	99	213	181
Operating Segments \| Food Merchandising \| Bakery/snack/produce/fruit containers
Segment Reporting Information [Line Items]
Net revenues	111	87	202	156
Operating Segments \| Food Merchandising \| Meat trays
Segment Reporting Information [Line Items]
Net revenues	90	93	175	180
Operating Segments \| Food Merchandising \| Prepared food trays
Segment Reporting Information [Line Items]
Net revenues	41	38	82	72
Operating Segments \| Food Merchandising \| Egg cartons
Segment Reporting Information [Line Items]
Net revenues	29	21	57	47
Operating Segments \| Food Merchandising \| Other
Segment Reporting Information [Line Items]
Net revenues	62	50	119	94
Operating Segments \| Beverage Merchandising
Segment Reporting Information [Line Items]
Net revenues	420	387	823	744
Operating Segments \| Beverage Merchandising \| Cartons for fresh beverage products
Segment Reporting Information [Line Items]
Net revenues	230	208	447	400
Operating Segments \| Beverage Merchandising \| Liquid packaging board
Segment Reporting Information [Line Items]
Net revenues	121	96	236	187
Operating Segments \| Beverage Merchandising \| Paper products
Segment Reporting Information [Line Items]
Net revenues	69	83	140	157
Operating Segments \| Reportable Segments
Segment Reporting Information [Line Items]
Net revenues	1,655	1,346	3,159	2,499
Operating Segments \| Other
Segment Reporting Information [Line Items]
Net revenues	27	24	49	53
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net revenues	(42)	(18)	(73)	(36)
Intersegment Eliminations \| Beverage Merchandising
Segment Reporting Information [Line Items]
Net revenues	42	18	73	36
Intersegment Eliminations \| Reportable Segments
Segment Reporting Information [Line Items]
Net revenues	$ 42	$ 18	$ 73	$ 36