v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
In January 2026, we reorganized the previous Hefty Waste & Storage and Presto Products segments by consolidating waste bags into the new Hefty Waste & Clean-Up segment and food bags and storage products into the new Hefty Storage & Organization segment in an effort to increase efficiencies, sharpen focus on innovation and establish a structure that can better facilitate entry into adjacent categories. Comparative segment disclosures have been recast to reflect this realignment. Prior periods will be similarly recast in each quarterly update during 2026. These changes had no effect on our previously reported condensed consolidated results of operations. In addition to the segment realignment, we have renamed our existing Reynolds Cooking & Baking segment and Hefty Tableware segment to Reynolds Cooking & Kitchen Essentials and Hefty Home & Tableware, respectively.
As part of the segment reorganization, $803 million of goodwill was reallocated on a relative fair value basis from the previous Hefty Waste & Storage and Presto Products segments to the new Hefty Waste & Clean-Up and Hefty Storage & Organization segments. We performed a goodwill impairment analysis immediately before and after the segment reorganization, and concluded that goodwill was not impaired. The goodwill balances as of March 31, 2026, for Reynolds Cooking & Kitchen Essentials, Hefty Waste & Clean-Up, Hefty Home & Tableware, and Hefty Storage & Organization were $794 million, $520 million, $298 million and $283 million, respectively.
Our Chief Executive Officer, who has been identified as our Chief Operating Decision Maker (“CODM”), has evaluated how he views and measures our performance. In applying the criteria set forth in the standards for reporting information about segments in financial statements, we have determined that we have four reportable segments - Reynolds Cooking & Kitchen Essentials, Hefty Waste & Clean-Up, Hefty Home & Tableware, and Hefty Storage & Organization. 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 segments are described as follows:
Reynolds Cooking & Kitchen Essentials
Our Reynolds Cooking & Kitchen Essentials segment produces branded and store brand aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags and slow cooker liners. Our branded products are sold under the Reynolds Wrap, Reynolds KITCHENS and EZ Foil brands in the United States and selected international markets, under the ALCAN brand in Canada and under the Diamond brand outside of North America.
Hefty Waste & Clean-Up
Through our new focused Hefty Waste & Clean-Up segment, we produce both branded and store brand trash bags. Our branded products are sold under the Hefty Ultra Strong, Hefty Strong, Hefty Essentials, and Brute brands in the U.S. and select international markets.
Hefty Home & Tableware
Our Hefty Home & Tableware segment sells both branded and store brand disposable and compostable plates, bowls, platters, containers, cups and cutlery. Our Hefty branded products include dishes, party cups, cutlery and containers.
Hefty Storage & Organization
Our Hefty Storage & Organization segment produces both branded and store brand food storage bags. Our branded products are sold under the Hefty brand for our food storage bags in the U.S. Our food storage bags are sold internationally as Reynolds, Diamond, or Hefty Basics brands based on region. Our Hefty Storage & Organization segment also includes our specialty business, which serves other consumer products companies by providing Fresh-Lock and Slide-Rite resealable closure systems.
Information by Segment
We present segment Adjusted EBITDA as this is the financial measure by which management and our CODM evaluates the performance of each segment and allocates resources (including employees, property and financial or capital resources) for each segment, predominantly in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a monthly basis, as well as performance versus the prior year, when making decisions about allocating capital and personnel to the segments.
Adjusted EBITDA represents each segment’s earnings before interest, tax, depreciation and amortization and may be further adjusted to exclude certain items, if applicable.
Total assets by segment are those assets directly associated with the respective operating activities, comprising inventory, property, plant and equipment and operating lease right-of-use assets. Other assets, such as cash, accounts receivable and intangible assets, are monitored on an entity-wide basis and not included in segment information that is regularly reviewed by our CODM.
 Reynolds
Cooking
& Kitchen Essentials		Hefty
Waste & Clean-Up		Hefty Home &
Tableware		Hefty
Storage & Organization		Segment
Total
Unallocated(1)
Total
Three Months Ended March 31, 2026(in millions)
Total segment net revenues$314 $224 $180 $159 $877 $— $877 
Other segment items(2)
(270)(162)(152)(132)(716)
Adjusted EBITDA44 62 28 27 161 
Depreciation and amortization10 4 6 5 25 8 33 

Reynolds
Cooking
& Kitchen Essentials		Hefty
Waste & Clean-Up		Hefty Home &
Tableware 		Hefty
Storage & Organization		Segment
Total
Unallocated(1)
Total
Three Months Ended March 31, 2025(in millions)
Total segment net revenues$259 $226 $179 $153 $817 $1 $818 
Other segment items(2)
(221)(164)(162)(132)(679)
Adjusted EBITDA38 62 17 21 138 
Depreciation and amortization9 5 5 5 24 8 32 


Segment assets consisted of the following:

Reynolds
Cooking
& Kitchen Essentials		Hefty
Waste & Clean-Up		Hefty Home &
Tableware		Hefty
 Storage & Organization		Segment
Total
Unallocated(1)
Total
(in millions)
As of March 31, 2026$657 $262 $252 $315 $1,486 $3,444 $4,930 
As of December 31, 2025612 264 242 305 1,423 3,513 4,936 

(1)Unallocated includes other revenue adjustments and certain corporate costs, depreciation and amortization and assets not allocated to segments. Unallocated assets are comprised of cash, accounts receivable, other receivables, entity-wide property, plant and equipment, entity-wide operating lease right-of-use assets, goodwill, intangible assets, related party receivables and other assets.

(2)Other segment items reflected in Segment Adjusted EBITDA primarily include cost of sales (including input, manufacturing and logistics costs), salaries and benefits, advertising expenses and professional fees. These items are monitored on an entity-wide basis and are not included in segment information that is regularly reviewed by our CODM.
The following table presents a reconciliation of total segment Adjusted EBITDA to GAAP income before income taxes:

Three Months Ended March 31,
20262025
(in millions)
Segment Adjusted EBITDA$161 $138 
Corporate / unallocated expenses(30)(21)
131 117 
Adjustments to reconcile to GAAP income before income taxes
Depreciation and amortization(33)(32)
Interest expense, net(21)(21)
Debt refinancing expense(1)
— (13)
Costs to execute strategic initiatives(2)
— (5)
CEO transition costs(3)
— (4)
Consolidated GAAP income before income taxes$77 $42 
(1)    Reflects the expense recorded related to our March 2025 Term Loan Facility refinancing.
(2)    Reflects costs related to the execution of cost savings and revenue growth strategic initiatives.
(3)    Reflects compensation and other costs related to the CEO transition effective January 1, 2025.

Information in Relation to Products

Our different product lines are generally sold to a common group of customers. 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.