QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction | (I.R.S. Employer | ||||||||||
of incorporation or organization) | Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
SILGAN HOLDINGS INC. | |||||
TABLE OF CONTENTS | |||||
Page No. | |||||
March 31, 2023 | March 31, 2022 | Dec. 31, 2022 | |||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Trade accounts receivable, net | |||||||||||||||||
Inventories | |||||||||||||||||
Prepaid expenses and other current assets | |||||||||||||||||
Total current assets | |||||||||||||||||
Property, plant and equipment, net | |||||||||||||||||
Goodwill | |||||||||||||||||
Other intangible assets, net | |||||||||||||||||
Other assets, net | |||||||||||||||||
$ | $ | $ | |||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Revolving loans and current portion of long-term debt | $ | $ | $ | ||||||||||||||
Trade accounts payable | |||||||||||||||||
Accrued payroll and related costs | |||||||||||||||||
Accrued liabilities | |||||||||||||||||
Total current liabilities | |||||||||||||||||
Long-term debt | |||||||||||||||||
Deferred income taxes | |||||||||||||||||
Other liabilities | |||||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Common stock | |||||||||||||||||
Paid-in capital | |||||||||||||||||
Retained earnings | |||||||||||||||||
Accumulated other comprehensive loss | ( | ( | ( | ||||||||||||||
Treasury stock | ( | ( | ( | ||||||||||||||
Total stockholders’ equity | |||||||||||||||||
$ | $ | $ |
2023 | 2022 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of goods sold | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative expenses | |||||||||||
Rationalization charges | |||||||||||
Other pension and postretirement expense (income) | ( | ||||||||||
Income before interest and income taxes | |||||||||||
Interest and other debt expense before loss on early extinguishment of debt | |||||||||||
Loss on early extinguishment of debt | |||||||||||
Interest and other debt expense | |||||||||||
Income before income taxes | |||||||||||
Provision for income taxes | |||||||||||
Net income | $ | $ | |||||||||
Earnings per share: | |||||||||||
Basic net income per share | $ | $ | |||||||||
Diluted net income per share | $ | $ | |||||||||
Weighted average number of shares: | |||||||||||
Basic | |||||||||||
Effect of dilutive securities | |||||||||||
Diluted | |||||||||||
2023 | 2022 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Changes in net prior service credit and actuarial losses | |||||||||||
Change in fair value of derivatives | ( | ||||||||||
Foreign currency translation | |||||||||||
Other comprehensive income | |||||||||||
Comprehensive income | $ | $ |
2023 | 2022 | ||||||||||
Cash flows provided by (used in) operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Rationalization charges | |||||||||||
Stock compensation expense | |||||||||||
Loss on early extinguishment of debt | |||||||||||
Other changes that provided (used) cash, net of effects from acquisitions: | |||||||||||
Trade accounts receivable, net | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Trade accounts payable | ( | ( | |||||||||
Accrued liabilities | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net cash (used in) operating activities | ( | ( | |||||||||
Cash flows provided by (used in) investing activities: | |||||||||||
Purchase of businesses, net of cash acquired | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Other, net | ( | ||||||||||
Net cash (used in) investing activities | ( | ( | |||||||||
Cash flows provided by (used in) financing activities: | |||||||||||
Borrowings under revolving loans | |||||||||||
Repayments under revolving loans | ( | ( | |||||||||
Proceeds from issuance of long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Changes in outstanding checks - principally vendors | ( | ( | |||||||||
Dividends paid on common stock | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | |||||||||||
Cash and cash equivalents: | |||||||||||
Net (decrease) | ( | ( | |||||||||
Balance at beginning of year | |||||||||||
Balance at end of period | $ | $ | |||||||||
Interest paid, net | $ | $ | |||||||||
Income taxes paid, net |
2023 | 2022 | ||||||||||
Common stock - shares outstanding | |||||||||||
Balance at beginning of period | |||||||||||
Net issuance of treasury stock for vested restricted stock units | |||||||||||
Repurchases of common stock | ( | ||||||||||
Balance at end of period | |||||||||||
Common stock - par value | |||||||||||
Balance at beginning and end of period | $ | $ | |||||||||
Paid-in capital | |||||||||||
Balance at beginning of period | |||||||||||
Stock compensation expense | |||||||||||
Net issuance of treasury stock for vested restricted stock units | ( | ( | |||||||||
Balance at end of period | |||||||||||
Retained earnings | |||||||||||
Balance at beginning of period | |||||||||||
Net income | |||||||||||
Dividends declared on common stock | ( | ( | |||||||||
Balance at end of period | |||||||||||
Accumulated other comprehensive loss | |||||||||||
Balance at beginning of period | ( | ( | |||||||||
Other comprehensive income | |||||||||||
Balance at end of period | ( | ( | |||||||||
Treasury stock | |||||||||||
Balance at beginning of period | ( | ( | |||||||||
Net issuance of treasury stock for vested restricted stock units | ( | ( | |||||||||
Repurchases of common stock | ( | ||||||||||
Balance at end of period | ( | ( | |||||||||
Total stockholders’ equity | $ | $ | |||||||||
Dividends declared on common stock per share | $ | $ |
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Dispensing and Specialty Closures | $ | $ | |||||||||
Metal Containers | |||||||||||
Custom Containers | |||||||||||
$ | $ |
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
North America | $ | $ | |||||||||
Europe and other | |||||||||||
$ | $ |
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Dispensing and Specialty Closures | $ | $ | |||||||||
Metal Containers | |||||||||||
Custom Containers | |||||||||||
$ | $ |
Employee Severance and Benefits | Plant Exit Costs | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ||||||||||||||
Charged to expense | |||||||||||||||||
Utilized and currency translation | ( | ( | ( | ||||||||||||||
Balance at March 31, 2023 | $ | $ | $ |
Unrecognized Net Defined Benefit Plan Costs | Change in Fair Value of Derivatives | Foreign Currency Translation | Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income before reclassifications | ( | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||
Other comprehensive income | ( | ||||||||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( |
March 31, 2023 | March 31, 2022 | Dec. 31, 2022 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Raw materials | $ | $ | $ | ||||||||||||||
Work-in-process | |||||||||||||||||
Finished goods | |||||||||||||||||
Other | |||||||||||||||||
Adjustment to value inventory at cost on the LIFO method | ( | ( | ( | ||||||||||||||
$ | $ | $ |
March 31, 2023 | March 31, 2022 | Dec. 31, 2022 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Bank debt | |||||||||||||||||
Bank revolving loans | $ | $ | $ | ||||||||||||||
U.S. term loans | |||||||||||||||||
Other foreign bank revolving and term loans | |||||||||||||||||
Total bank debt | |||||||||||||||||
3¼% Senior Notes | |||||||||||||||||
4⅛% Senior Notes | |||||||||||||||||
2¼% Senior Notes | |||||||||||||||||
1.4% Senior Secured Notes | |||||||||||||||||
Finance leases | |||||||||||||||||
Total debt - principal | |||||||||||||||||
Less unamortized debt issuance costs and debt discount | |||||||||||||||||
Total debt | |||||||||||||||||
Less current portion | |||||||||||||||||
$ | $ | $ |
Carrying Amount | Fair Value | ||||||||||
(Dollars in thousands) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Liabilities: | |||||||||||
Bank debt | $ | $ | |||||||||
3¼% Senior Notes | |||||||||||
4⅛% Senior Notes | |||||||||||
2¼% Senior Notes | |||||||||||
1.4% Senior Secured Notes | |||||||||||
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Service cost | $ | $ | |||||||||
Interest cost | |||||||||||
Expected return on plan assets | ( | ( | |||||||||
Amortization of prior service cost | |||||||||||
Amortization of actuarial losses | |||||||||||
Net periodic benefit cost (credit) | $ | $ | ( |
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Service cost | $ | $ | |||||||||
Interest cost | |||||||||||
Amortization of prior service credit | ( | ( | |||||||||
Amortization of actuarial gains | ( | ( | |||||||||
Net periodic benefit credit | $ | ( | $ | ( |
Dispensing and Specialty Closures | Metal Containers | Custom Containers | Corporate | Total | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Adjusted EBIT | ( | ||||||||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||||||||
Three months ended March 31, 2022 | |||||||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Adjusted EBIT | ( | ||||||||||||||||||||||||||||
Depreciation |
2023 | 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Total adjusted EBIT | $ | $ | |||||||||
Less: | |||||||||||
Acquired intangible asset amortization expense | |||||||||||
Other pension expense (income) for U.S. pension plans | ( | ||||||||||
Rationalization charges | |||||||||||
Income before interest and income taxes | |||||||||||
Less interest and other debt expense | |||||||||||
Income before income taxes | $ | $ |
2023 | 2022 | ||||||||||
Net sales | |||||||||||
Dispensing and Specialty Closures | 40.9 | % | 41.5 | % | |||||||
Metal Containers | 47.2 | 45.1 | |||||||||
Custom Containers | 11.9 | 13.4 | |||||||||
Consolidated | 100.0 | 100.0 | |||||||||
Cost of goods sold | 83.2 | 83.8 | |||||||||
Gross profit | 16.8 | 16.2 | |||||||||
Selling, general and administrative expenses | 7.1 | 7.0 | |||||||||
Rationalization charges | 0.3 | 0.1 | |||||||||
Other pension and postretirement expense (income) | 0.1 | (0.8) | |||||||||
Income before interest and income taxes | 9.3 | 9.9 | |||||||||
Interest and other debt expense | 2.6 | 2.1 | |||||||||
Income before income taxes | 6.7 | 7.8 | |||||||||
Provision for income taxes | 1.6 | 1.9 | |||||||||
Net income | 5.1 | % | 5.9 | % |
2023 | 2022 | ||||||||||
(dollars in millions) | |||||||||||
Net sales | |||||||||||
Dispensing and Specialty Closures | $ | 579.9 | $ | 597.9 | |||||||
Metal Containers | 670.1 | 650.7 | |||||||||
Custom Containers | 168.3 | 193.3 | |||||||||
Consolidated | $ | 1,418.3 | $ | 1,441.9 | |||||||
Income before interest and income taxes | |||||||||||
Dispensing and Specialty Closures | $ | 70.9 | $ | 87.3 | |||||||
Metal Containers | 47.8 | 38.0 | |||||||||
Custom Containers | 18.5 | 24.7 | |||||||||
Corporate | (6.0) | (6.6) | |||||||||
Consolidated | $ | 131.2 | $ | 143.4 |
2023 | 2022 | ||||||||||
(dollars in millions) | |||||||||||
Dispensing and Specialty Closures: | |||||||||||
Income before interest and income taxes (EBIT) | $ | 70.9 | $ | 87.3 | |||||||
Acquired intangible asset amortization expense | 11.8 | 12.0 | |||||||||
Other pension expense (income) for U.S. pension plans | 0.1 | (2.8) | |||||||||
Rationalization charges | 0.1 | — | |||||||||
Adjusted EBIT | $ | 82.9 | $ | 96.5 | |||||||
Metal Containers | |||||||||||
Income before interest and income taxes (EBIT) | $ | 47.8 | $ | 38.0 | |||||||
Acquired intangible asset amortization expense | 0.3 | 0.3 | |||||||||
Other pension expense (income) for U.S. pension plans | 0.4 | (6.7) | |||||||||
Rationalization charges | 3.9 | 1.3 | |||||||||
Adjusted EBIT | $ | 52.4 | $ | 32.9 | |||||||
Custom Containers | |||||||||||
Income before interest and income taxes (EBIT) | $ | 18.5 | $ | 24.7 | |||||||
Acquired intangible asset amortization expense | 1.1 | 1.1 | |||||||||
Other pension expense (income) for U.S. pension plans | 0.4 | (2.5) | |||||||||
Rationalization charges | 0.1 | 0.1 | |||||||||
Adjusted EBIT | $ | 20.1 | $ | 23.4 | |||||||
Corporate | |||||||||||
Loss before interest and income taxes (EBIT) | $ | (6.0) | $ | (6.6) | |||||||
Adjusted EBIT | $ | (6.0) | $ | (6.6) | |||||||
Total adjusted EBIT | $ | 149.4 | $ | 146.2 |
2023 | 2022 | ||||||||||
(dollars in millions) | |||||||||||
Net sales | $ | 579.9 | $ | 597.9 | |||||||
Income before interest and income taxes (EBIT) | 70.9 | 87.3 | |||||||||
Income before interest and income taxes margin (EBIT margin) | 12.2 | % | 14.6 | % | |||||||
Adjusted EBIT | $ | 82.9 | $ | 96.5 | |||||||
Adjusted EBIT margin | 14.3 | % | 16.1 | % |
2023 | 2022 | ||||||||||
(dollars in millions) | |||||||||||
Net sales | $ | 670.1 | $ | 650.7 | |||||||
Income before interest and income taxes (EBIT) | 47.8 | 38.0 | |||||||||
Income before interest and income taxes margin (EBIT margin) | 7.1 | % | 5.8 | % | |||||||
Adjusted EBIT | $ | 52.4 | $ | 32.9 | |||||||
Adjusted EBIT margin | 7.8 | % | 5.1 | % |
2023 | 2022 | ||||||||||
(dollars in millions) | |||||||||||
Net sales | $ | 168.3 | $ | 193.3 | |||||||
Income before interest and income taxes (EBIT) | 18.5 | 24.7 | |||||||||
Income before interest and income taxes margin (EBIT margin) | 11.0 | % | 12.8 | % | |||||||
Adjusted EBIT | $ | 20.1 | $ | 23.4 | |||||||
Adjusted EBIT margin | 11.9 | % | 12.1 | % |
March 31, 2023 | Dec. 31, 2022 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Current assets | $1,718.6 | $1,247.4 | |||||||||||||||
Noncurrent assets | 4,043.2 | 4,028.4 | |||||||||||||||
Current liabilities | 1,493.8 | 1,077.7 | |||||||||||||||
Noncurrent liabilities | 3,946.5 | 3,911.4 |
Three months ended March 31, 2023 | |||||||||||
(Dollars in millions) | |||||||||||
Net sales | $1,020.7 | ||||||||||
Gross profit | 146.6 | ||||||||||
Net income | 45.0 |
ISSUER PURCHASES OF EQUITY SECURITIES | |||||||||||||||||||||||
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (1) | ||||||||||||||||||||||
(a) Total Number of Shares Purchased | |||||||||||||||||||||||
(b) Average Price Paid per Share | |||||||||||||||||||||||
January 1-31, 2023 | — | $ | — | — | $267.9 | ||||||||||||||||||
February 1-28, 2023 | — | $ | — | — | $267.9 | ||||||||||||||||||
March 1-31, 2023 | 92,996 | $ | 51.60 | 92,996 | $263.1 | ||||||||||||||||||
Total | 92,996 | $ | 51.60 | 92,996 | $263.1 |
Exhibit Number | Description | |||||||
22 | ||||||||
10.1 | ||||||||
*31.1 | ||||||||
*31.2 | ||||||||
*32.1 | ||||||||
*32.2 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | |||||||
SILGAN HOLDINGS INC. | ||||||||
Dated: May 3, 2023 | /s/ Kimberly I. Ulmer | |||||||
Kimberly I. Ulmer | ||||||||
Senior Vice President, | ||||||||
Chief Financial Officer and Treasurer | ||||||||
(Principal Financial and | ||||||||
Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2023 of Silgan Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 3, 2023 | /s/ Adam J. Greenlee | ||||
Adam J. Greenlee | |||||
President and | |||||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2023 of Silgan Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 3, 2023 | /s/ Kimberly I. Ulmer | ||||
Kimberly I. Ulmer | |||||
Senior Vice President, | |||||
Chief Financial Officer and Treasurer |
(1) The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||
(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Adam J. Greenlee | ||
Adam J. Greenlee | ||
President and | ||
Chief Executive Officer |
(1) The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||
(2) The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Kimberly I. Ulmer | ||
Kimberly I. Ulmer | ||
Senior Vice President, | ||
Chief Financial Officer and Treasurer |
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Current assets: | |||
Cash and cash equivalents | $ 501,060 | $ 585,622 | $ 259,564 |
Trade accounts receivable, net | 936,048 | 657,968 | 852,876 |
Inventories | 1,055,079 | 769,403 | 1,018,685 |
Prepaid expenses and other current assets | 132,822 | 119,659 | 150,646 |
Total current assets | 2,625,009 | 2,132,652 | 2,281,771 |
Property, plant and equipment, net | 1,930,003 | 1,931,497 | 1,979,681 |
Goodwill | 2,001,753 | 1,984,952 | 2,024,340 |
Other intangible assets, net | 755,883 | 763,812 | 817,450 |
Other assets, net | 549,074 | 532,844 | 607,168 |
Assets, total | 7,861,722 | 7,345,757 | 7,710,410 |
Current liabilities: | |||
Revolving loans and current portion of long-term debt | 784,795 | 80,061 | 539,134 |
Trade accounts payable | 716,487 | 974,030 | 850,532 |
Accrued payroll and related costs | 101,881 | 98,914 | 109,096 |
Accrued liabilities | 240,952 | 284,855 | 218,194 |
Total current liabilities | 1,844,115 | 1,437,860 | 1,716,956 |
Long-term debt | 3,370,346 | 3,345,381 | 3,445,633 |
Deferred income taxes | 389,010 | 388,677 | 433,843 |
Other liabilities | 476,961 | 455,583 | 475,739 |
Stockholders’ equity: | |||
Common stock | 1,751 | 1,751 | 1,751 |
Paid-in capital | 342,157 | 339,839 | 328,201 |
Retained earnings | 3,013,104 | 2,961,079 | 2,758,697 |
Accumulated other comprehensive loss | (324,570) | (345,310) | (244,642) |
Treasury stock | (1,251,152) | (1,239,103) | (1,205,768) |
Total stockholders’ equity | 1,781,290 | 1,718,256 | 1,638,239 |
Liabilities and equity, total | $ 7,861,722 | $ 7,345,757 | $ 7,710,410 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2023 |
Mar. 31, 2022 |
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Statement of Comprehensive Income [Abstract] | ||
Net income | $ 72,029 | $ 84,875 |
Other comprehensive income (loss), net of tax: | ||
Changes in net prior service credit and actuarial losses | 2,306 | 499 |
Change in fair value of derivatives | (1,287) | 2,337 |
Foreign currency translation | 19,721 | 12,350 |
Other comprehensive income | 20,740 | 15,186 |
Comprehensive income | $ 92,769 | $ 100,061 |
Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Silgan Holdings Inc., or Silgan, have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. The results of operations for any interim period are not necessarily indicative of the results of operations for the full year. The Condensed Consolidated Balance Sheet at December 31, 2022 has been derived from our audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. You should read the accompanying condensed consolidated financial statements in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.
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Revenue |
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Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue The following tables present our revenues disaggregated by reportable segment and geography as they best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenues by segment for the three months ended March 31 were as follows:
Revenues by geography for the three months ended March 31 were as follows:
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Rationalization Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rationalization Charges | Rationalization Charges We continually evaluate cost reduction opportunities across each of our segments, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Rationalization charges by segment for the three months ended March 31 were as follows:
Activity in reserves for our rationalization plans were as follows:
Rationalization reserves as of March 31, 2023 were recorded in our Condensed Consolidated Balance Sheet as accrued liabilities of $3.2 million and other liabilities of $27.6 million. Excluding the impact of our withdrawal from the Central States, Southeast and Southwest Areas Pension Plan, or the Central States Pension Plan, in 2019, remaining expenses and cash expenditures for our rationalization plans are expected to be $1.7 million and $5.4 million, respectively. Remaining expenses for the accretion of interest for the withdrawal liability related to the Central States Pension Plan are expected to average approximately $0.9 million per year and be recognized annually through 2040, and remaining cash expenditures for the withdrawal liability related to the Central States Pension Plan are expected to be approximately $0.8 million in 2023 and $2.6 million annually thereafter through 2040.
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is reported in our Condensed Consolidated Statements of Stockholders’ Equity. Amounts included in accumulated other comprehensive loss, net of tax, were as follows:
The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the three months ended March 31, 2023 were net (losses) of $(2.6) million, excluding income tax benefits of $0.3 million. These net (losses) consisted of amortization of net actuarial (losses) of $(2.8) million and amortization of net prior service credit of $0.2 million. Amortization of net actuarial losses and net prior service credit was recorded in other pension and postretirement income in our Condensed Consolidated Statements of Income. See Note 10 for further information. The amounts reclassified to earnings from the change in fair value of derivatives component of accumulated other comprehensive loss for the three months ended March 31, 2023 were not significant. Other comprehensive loss before reclassifications related to foreign currency translation for the three months ended March 31, 2023 consisted of (i) foreign currency gains related to translation of quarter end financial statements of foreign subsidiaries utilizing a functional currency other than the U.S. dollar of $25.6 million, (ii) foreign currency gains related to intra-entity foreign currency transactions that are of a long-term investment nature of $0.8 million, and (iii) foreign currency (losses) related to our net investment hedges of $(8.8) million, excluding an income tax benefit of $2.1 million. See Note 7 for further discussion.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following:
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following:
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Financial Instruments |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments The financial instruments recorded in our Condensed Consolidated Balance Sheets include cash and cash equivalents, trade accounts receivable, trade accounts payable, debt obligations and swap agreements. Due to their short-term maturity, the carrying amounts of trade accounts receivable and trade accounts payable approximate their fair market values. The following table summarizes the carrying amounts and estimated fair values of our other financial instruments at March 31, 2023:
Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP classifies the inputs used to measure fair value into a hierarchy consisting of three levels. Level 1 inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs represent unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs represent unobservable inputs for the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Financial Instruments Measured at Fair Value The financial assets and liabilities that were measured on a recurring basis at March 31, 2023 consisted of our cash and cash equivalents and derivative instruments. We measured the fair value of cash and cash equivalents using Level 1 inputs. We measured the fair value of our derivative instruments using the income approach. The fair value of our derivative instruments reflects the estimated amounts that we would pay or receive based on the present value of the expected cash flows derived from market interest rates and prices. As such, these derivative instruments were classified within Level 2. Financial Instruments Not Measured at Fair Value Our bank debt, 3¼% Senior Notes, 4⅛% Senior Notes, 2¼% Senior Notes and 1.4% Senior Secured Notes were recorded at historical amounts in our Condensed Consolidated Balance Sheets, as we have not elected to measure them at fair value. We measured the fair value of our variable rate bank debt using the market approach based on Level 2 inputs. Fair values of the 3¼% Senior Notes, 4⅛% Senior Notes, 2¼% Senior Notes and 1.4% Senior Secured Notes were estimated based on quoted market prices, a Level 1 input. Derivative Instruments and Hedging Activities Our derivative financial instruments were recorded in the Condensed Consolidated Balance Sheets at their fair values. Changes in fair values of derivatives are recorded in each period in earnings or comprehensive income, depending on whether a derivative is designated as part of a hedge transaction and, if it is, the type of hedge transaction. We utilize certain derivative financial instruments to manage a portion of our interest rate and natural gas cost exposures. We generally limit our use of derivative financial instruments to interest rate and natural gas swap agreements. We do not engage in trading or other speculative uses of these financial instruments. For a financial instrument to qualify as a hedge, we must be exposed to interest rate or price risk, and the financial instrument must reduce the exposure and be designated as a hedge. Financial instruments qualifying for hedge accounting must maintain a high correlation between the hedging instrument and the item being hedged, both at inception and throughout the hedged period. We also utilize certain internal hedging strategies to minimize our foreign currency exchange rate risk. Net investment hedges that qualify for hedge accounting result in the recognition of foreign currency gains or losses, net of tax, in accumulated other comprehensive loss. Interest Rate Swap Agreements We had two U.S. dollar interest rate swap agreements, each for $50.0 million notional principal amount, to manage a portion of our exposure to interest rate fluctuations, with a fixed rate of 2.878 percent, that matured on March 24, 2023. In March 2023, we entered into four U.S. dollar interest rate swap agreements, each for $75.0 million notional principal amount, to manage a portion of our exposure to interest rate fluctuations. These agreements have a fixed rate ranging from 3.930 percent to 3.942 percent, mature on April 3, 2026 and were entered into with financial institutions which are expected to fully perform under the terms thereof. The difference between amounts to be paid or received on our interest rate swap agreements is recorded in interest and other debt expense in our Condensed Consolidated Statements of Income and was not significant for the three months ended March 31, 2023. The total fair value of our interest rate swaps agreements in effect at March 31, 2023 was not significant. Natural Gas Swap Agreements We have entered into natural gas swap agreements to manage a portion of our exposure to fluctuations in natural gas prices. The difference between amounts to be paid or received on our natural gas swap agreements is recorded in cost of goods sold in our Condensed Consolidated Statements of Income and was not significant for the three months ended March 31, 2023. These agreements are with a financial institution which is expected to fully perform under the terms thereof. The total fair value of our natural gas swap agreements in effect at March 31, 2023 was not significant. Foreign Currency Exchange Rate Risk In an effort to minimize our foreign currency exchange rate risk, we have financed acquisitions of foreign operations primarily with borrowings denominated in Euros. In addition, where available, we have borrowed funds in local currency or implemented certain internal hedging strategies to minimize our foreign currency exchange rate risk related to foreign operations, including net investment hedges related to the 3¼% Senior Notes which are Euro denominated. Foreign currency (losses) related to our net investment hedges included in accumulated other comprehensive loss for the three months ended March 31, 2023 were $(8.8) million.
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are a party to other legal proceedings, contract disputes and claims arising in the ordinary course of our business. We are not a party to, and none of our properties are subject to, any pending legal proceedings which could have a material adverse effect on our business or financial condition. |
Supply Chain Finance Program |
3 Months Ended |
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Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Supply Chain Finance Program | Supply Chain Finance ProgramWe have a supply chain finance (“SCF”) program with a major global financial institution. Under this SCF program, qualifying suppliers may elect, but are not obligated, to sell their receivables from us to such financial institution. We agree to pay the financial institution the stated amount of invoices from our suppliers electing to participate on the original maturity dates of the invoices. We may terminate our agreement with the financial institution upon at least 30 days’ notice, and the financial institution may terminate our agreement upon at least 10 days’ notice. Additionally, suppliers who elect to participate in this SCF program may terminate their participation upon at least 30 days’ notice. The suppliers' invoices sold under this SCF program can be outstanding up to 210 days from the invoice date. Suppliers’ invoices included in this SCF program were $318.4 million, $372.2 million and $346.8 million at March 31, 2023 and 2022 and December 31, 2022, respectively, and were included in accounts payable in our Condensed Consolidated Balance Sheets. |
Retirement Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits | Retirement Benefits The components of the net periodic pension benefit cost (credit) for the three months ended March 31 were as follows:
The components of the net periodic other postretirement benefit credit for the three months ended March 31 were as follows:
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Income Taxes |
3 Months Ended |
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Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesSilgan and its subsidiaries file U.S. Federal income tax returns, as well as income tax returns in various states and foreign jurisdictions. The Internal Revenue Service, or IRS, has completed its review of the 2021 tax year with no change to our filed federal income tax return. We have been accepted into the Compliance Assurance Program for the 2022 and 2023 tax years which provides for the review by the IRS of tax matters relating to our tax return prior to filing. |
Treasury Stock |
3 Months Ended |
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Mar. 31, 2023 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock On March 4, 2022, our Board of Directors authorized the repurchase by us of up to an aggregate of $300.0 million of our common stock by various means from time to time through and including December 31, 2026. During the three months ended March 31, 2023, we repurchased an aggregate of 92,996 shares of our common stock at an average price per share of $51.60, for a total purchase price of $4.8 million. At March 31, 2023, we had approximately $263.1 million remaining under this authorization for the repurchase of our common stock. During the first three months of 2023, we issued 427,763 treasury shares which had an average cost of $3.19 per share for restricted stock units that vested during the period that had been previously issued under the Silgan Holdings Inc. Amended and Restated 2004 Stock Incentive Plan. In accordance with the applicable agreements for such restricted stock units, we repurchased 161,328 shares of our common stock at an average cost of $53.38 to satisfy minimum employee withholding tax requirements resulting from the vesting of such restricted stock units. We account for treasury shares using the first-in, first-out (FIFO) cost method. As of March 31, 2023, 64,860,050 shares of our common stock were held in treasury.
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Segment Information |
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We evaluate performance of our business segments and allocate resources based on the adjusted EBIT of our business segments. Adjusted EBIT is not a defined term under GAAP. We define adjusted EBIT as income before interest and income taxes excluding acquired intangible asset amortization expense, other pension expense (income) for U.S. pension plans, rationalization charges, the impact from charges for the write-up of acquired inventory required under purchase accounting, the charge for the European Commission settlement and costs attributed to announced acquisitions. We began using adjusted EBIT in 2023. Previously, we used segment income, without any adjustments, for our business segments. We have provided adjusted EBIT for 2022 below for comparative purposes. Adjusted EBIT should not be considered in isolation or as a substitute for income before interest and income taxes or any other financial data prepared in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies. Reportable segment information for the three months ended March 31 was as follows:
Total adjusted EBIT is reconciled to income before income taxes for the three months ended March 31 as follows:
Net sales and adjusted EBIT of our metal containers segment and of part of our dispensing and specialty closures segment are dependent, in part, upon the vegetable and fruit harvests in the United States and, to a lesser extent, in a variety of national growing regions in Europe. The size and quality of these harvests varies from year to year, depending in large part upon the weather conditions in applicable regions. Because of the seasonality of the harvests, we have historically experienced higher unit sales volume in the third quarter of our fiscal year and generated a disproportionate amount of our annual adjusted EBIT during that quarter.
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Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of Silgan Holdings Inc., or Silgan, have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. The results of operations for any interim period are not necessarily indicative of the results of operations for the full year. The Condensed Consolidated Balance Sheet at December 31, 2022 has been derived from our audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. You should read the accompanying condensed consolidated financial statements in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022.
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Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Revenues by segment for the three months ended March 31 were as follows:
Revenues by geography for the three months ended March 31 were as follows:
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Rationalization Charges (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Rationalization Plan Reserves | Rationalization charges by segment for the three months ended March 31 were as follows:
Activity in reserves for our rationalization plans were as follows:
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | Amounts included in accumulated other comprehensive loss, net of tax, were as follows:
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Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consisted of the following:
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Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term debt consisted of the following:
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Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carrying Amounts and Estimated Fair Values of Other Financial Instruments | The following table summarizes the carrying amounts and estimated fair values of our other financial instruments at March 31, 2023:
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Retirement Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost (Credit) | The components of the net periodic pension benefit cost (credit) for the three months ended March 31 were as follows:
The components of the net periodic other postretirement benefit credit for the three months ended March 31 were as follows:
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Operating Segment Information | Reportable segment information for the three months ended March 31 was as follows:
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Reconciliation of Adjusted EBIT to Income before Income Taxes | Total adjusted EBIT is reconciled to income before income taxes for the three months ended March 31 as follows:
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Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,418,281 | $ 1,441,886 | |
Trade Accounts Receivable | Unbilled Accounts Receivable | |||
Segment Reporting Information [Line Items] | |||
Contract assets | 108,500 | 99,100 | $ 110,200 |
North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,056,526 | 1,086,224 | |
Europe and other | |||
Segment Reporting Information [Line Items] | |||
Net sales | 361,755 | 355,662 | |
Dispensing and Specialty Closures | |||
Segment Reporting Information [Line Items] | |||
Net sales | 579,932 | 597,927 | |
Metal Containers | |||
Segment Reporting Information [Line Items] | |||
Net sales | 670,096 | 650,726 | |
Custom Containers | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 168,253 | $ 193,233 |
Rationalization Charges - Rationalization Charges by Business Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Restructuring Cost and Reserve [Line Items] | ||
Rationalization charges | $ 4,121 | $ 1,379 |
Dispensing and Specialty Closures | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalization charges | 114 | 0 |
Metal Containers | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalization charges | 3,903 | 1,274 |
Custom Containers | ||
Restructuring Cost and Reserve [Line Items] | ||
Rationalization charges | $ 104 | $ 105 |
Rationalization Charges - Activity in Rationalization Plan Reserves (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2022 | $ 31,800 | |
Charged to expense | 4,121 | $ 1,379 |
Utilized and currency translation | (5,132) | |
Balance at March 31, 2023 | 30,789 | |
Employee Severance and Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2022 | 31,641 | |
Charged to expense | 1,797 | |
Utilized and currency translation | (2,813) | |
Balance at March 31, 2023 | 30,625 | |
Plant Exit Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2022 | 159 | |
Charged to expense | 2,324 | |
Utilized and currency translation | (2,319) | |
Balance at March 31, 2023 | $ 164 |
Rationalization Charges - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 30,789 | $ 31,800 |
Other Restructuring | Rationalization Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining expenses | 1,700 | |
Remaining cash expenditures | 5,400 | |
Next Fiscal Year Following Current Fiscal Year | Central States Pension Plan Withdrawal | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining cash expenditures | 800 | |
Annually Through 2040 | Central States Pension Plan withdrawal | ||
Restructuring Cost and Reserve [Line Items] | ||
Remaining cash expenditures | 2,600 | |
Accretion expense | 900 | |
Accrued Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | 3,200 | |
Other Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 27,600 |
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials | $ 498,580 | $ 409,349 | $ 295,713 |
Work-in-process | 254,373 | 218,691 | 263,878 |
Finished goods | 630,233 | 469,212 | 607,087 |
Other | 16,205 | 16,463 | 14,787 |
Inventories, gross | 1,399,391 | 1,113,715 | 1,181,465 |
Adjustment to value inventory at cost on the LIFO method | (344,312) | (344,312) | (162,780) |
Inventories | $ 1,055,079 | $ 769,403 | $ 1,018,685 |
Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt, current maturities | $ 784,795 | $ 80,061 | $ 539,134 |
Finance Leases | |||
Debt Instrument [Line Items] | |||
Long-term debt, current maturities | 2,400 | ||
Bank debt | Other Foreign Bank Revolving and Term Loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, current maturities | $ 27,400 |
Supply Chain Finance Program (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
|
Payables and Accruals [Abstract] | |||
Termination notice period (at least) | 30 days | ||
Termination notice period by financial institution (at least) | 10 days | ||
Supply chain finance program, payment period (up to) | 210 days | ||
Supplier chain finance program obligation, current | $ 318.4 | $ 346.8 | $ 372.2 |
Retirement Benefits - Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Pension Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2,229 | $ 3,300 |
Interest cost | 8,709 | 5,159 |
Expected return on plan assets | (10,189) | (17,314) |
Amortization of prior service cost | 28 | 55 |
Amortization of actuarial losses (gains) | 2,945 | 1,155 |
Net periodic benefit cost (credit) | 3,722 | (7,645) |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 14 | 25 |
Interest cost | 189 | 109 |
Amortization of prior service cost | (235) | (416) |
Amortization of actuarial losses (gains) | (161) | (77) |
Net periodic benefit cost (credit) | $ (193) | $ (359) |
Segment Information - Reportable Business Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,418,281 | $ 1,441,886 |
Adjusted EBIT | 149,404 | 146,219 |
Depreciation | 51,622 | 54,177 |
Dispensing and Specialty Closures | ||
Segment Reporting Information [Line Items] | ||
Net sales | 579,932 | 597,927 |
Adjusted EBIT | 82,936 | 96,528 |
Depreciation | 24,759 | 24,661 |
Metal Containers | ||
Segment Reporting Information [Line Items] | ||
Net sales | 670,096 | 650,726 |
Adjusted EBIT | 52,400 | 32,951 |
Depreciation | 17,988 | 20,731 |
Custom Containers | ||
Segment Reporting Information [Line Items] | ||
Net sales | 168,253 | 193,233 |
Adjusted EBIT | 20,034 | 23,364 |
Depreciation | 8,835 | 8,743 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Adjusted EBIT | (5,966) | (6,624) |
Depreciation | $ 40 | $ 42 |
Segment Information - Reconciliation of Adjusted EBIT to Income before Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Segment Reporting Information [Line Items] | ||
Total adjusted EBIT | $ 149,404 | $ 146,219 |
Less: | ||
Other pension expense (income) for U.S. pension plans | 1,286 | (11,329) |
Rationalization charges | 4,121 | 1,379 |
Income before interest and income taxes | 131,228 | 143,392 |
Less interest and other debt expense | 36,766 | 30,830 |
Income before income taxes | 94,462 | 112,562 |
Segment Reconciling Items | ||
Less: | ||
Acquired intangible asset amortization expense | 13,221 | 13,430 |
Other pension expense (income) for U.S. pension plans | 834 | (11,982) |
Rationalization charges | $ 4,121 | $ 1,379 |
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