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CONSOLIDATION OF VARIABLE INTEREST ENTITIES | 12 Months Ended
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Oct. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
CONSOLIDATION OF VARIABLE INTEREST ENTITIES | CONSOLIDATION OF VARIABLE INTEREST ENTITIESThe Company evaluates whether an entity is a VIE whenever reconsideration events occur and performs reassessments of all VIEs quarterly to determine if the primary beneficiary status is appropriate. The Company consolidates VIEs for which it is the primary beneficiary. If the Company is not the primary beneficiary and an ownership interest is held, the VIE is accounted for under the equity or cost method of accounting, as appropriate. When assessing the determination of the primary beneficiary, the Company considers all relevant facts and circumstances, including: the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and the obligation to absorb the expected losses and/or the right to receive the expected returns of the VIE. Flexible Packaging Joint Venture On September 29, 2010, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Flexible Packaging JV” or "FPS VIE") with Dabbagh Group Holding Company Limited and one of its subsidiaries, originally National Scientific Company Limited and now Gulf Refined Packaging for Industrial Packaging Company LTD ("GRP"). The Flexible Packaging JV owns the operations in the Company's flexible packaging business, which are included in Global Industrial Packaging reportable segment. The Flexible Packaging JV has been consolidated into the operations of the Company since its formation date of September 29, 2010. The Flexible Packaging JV is deemed to be a VIE since the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support. The major factors that led to the conclusion that the Company was the primary beneficiary of this VIE was that (1) the Company has the power to direct the most significant activities due to its ability to direct the operating decisions of the FPS VIE, which power is derived from the significant CEO discretion over the operations of the FPS VIE combined with the Company's sole and exclusive right to appoint the CEO of the FPS VIE, and (2) the significant variable interest through the Company's equity interest in the FPS VIE. The economic and business purpose underlying the Flexible Packaging JV is to establish a global industrial flexible products enterprise through a series of targeted acquisitions and major investments in plant, machinery and equipment. All entities contributed to the Flexible Packaging JV were existing businesses acquired by an indirect subsidiary of the Company and that were reorganized under Greif Flexibles Asset Holding B.V. and Greif Flexibles Trading Holding B.V. (“Asset Co.” and “Trading Co.”), respectively. The Company has 51 percent ownership in Trading Co. and 49 percent ownership in Asset Co. However, the Company and GRP have equal economic interests in the Flexible Packaging JV, notwithstanding the actual ownership interests in the various legal entities. All investments, loans and capital contributions are to be shared equally by the Company and GRP and each partner has committed to contribute capital of up to $150.0 million and obtain third party financing for up to $150.0 million as required. The following table presents the Flexible Packaging JV total net assets:
(in millions) | October 31, 2021 |  | October 31, 2020
Cash and cash equivalents | $ | 19.6 |  |  | $ | 19.0 |
Trade accounts receivable, less allowance of $0.4 in 2021 and $0.7 in 2020 | 59.0 |  |  | 47.5 |
Inventories | 58.5 |  |  | 36.0 |
Properties, plants and equipment, net | 25.8 |  |  | 22.8 |
Other assets | 25.1 |  |  | 20.3 |
Total assets | $ | 188.0 |  |  | $ | 145.6 |
Accounts payable | $ | 45.3 |  |  | $ | 29.4 |
Other liabilities | 40.7 |  |  | 22.8 |
Total liabilities | $ | 86.0 |  |  | $ | 52.2 |
Net income attributable to the noncontrolling interest in the Flexible Packaging JV for the years ended October 31, 2021, 2020 and 2019 were $7.9 million, $6.4 million and $12.4 million, respectively. Paper Packaging Joint Venture On April 20, 2018, Greif, Inc. and one of its indirect subsidiaries formed a joint venture (referred to herein as the “Paper Packaging JV” or "PPS VIE") with a third party. The Paper Packaging JV has been consolidated into the operations of the Company since its formation date of April 20, 2018. The Paper Packaging JV is deemed to be a VIE as the equity investors at risk, as a group, lack the characteristics of a controlling financial interest. The structure of the Paper Packaging JV has governing provisions that are the functional equivalent of a limited partnership whereby the Company is the managing member that makes all the decisions related to the activities that most significantly affect the economic performance of the PPS VIE. In addition, the third party does not have any substantive kick-out rights or substantive participating rights in the Paper Packaging JV. The major factors that led to the conclusion that the Paper Packaging JV is a VIE was that all limited partnerships are considered to be VIE’s unless the limited partners have substantive kick-out rights or substantive participating rights. The following table presents the Paper Packaging JV total net assets:
(in millions) | October 31, 2021 |  | October 31, 2020
Cash and cash equivalents | $ | 5.9 |  |  | $ | — |
Trade accounts receivable, less allowance of $0.0 in 2021 and $0.0 in 2020 | 9.4 |  |  | 5.5 |
Inventories | 10.8 |  |  | 6.3 |
Properties, plants and equipment, net | 31.1 |  |  | 34.3 |
Other assets | 0.5 |  |  | 0.6 |
Total assets | $ | 57.7 |  |  | $ | 46.7 |
Accounts payable | 3.4 |  |  | 5.2 |
Other liabilities | 1.7 |  |  | 1.3 |
Total liabilities | $ | 5.1 |  |  | $ | 6.5 |
Net income (loss) attributable to the noncontrolling interest in the Paper Packaging JV for the years ended October 31, 2021, 2020 and 2019 were $0.5 million, $(1.8) million and $(0.1) million, respectively. Non-United States Accounts Receivable VIE As further described in Note 5 of the Notes to Consolidated Financial Statements, Cooperage Receivables Finance B.V. is a party to the Nieuw Amsterdam Receivables Financing Agreement (the "European RFA"). Cooperage Receivables Finance B.V. is deemed to be a VIE since this entity is not able to satisfy its liabilities without the financial support from the Company. While this entity is a separate and distinct legal entity from the Company and no ownership interest in this entity is held by the Company, the Company is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE. As a result, Cooperage Receivables Finance B.V. has been consolidated into the operations of the Company.

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
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