Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-50189 | |
Entity Registrant Name | CROWN HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 75-3099507 | |
Entity Address, Address Line One | 770 Township Line Road | |
Entity Address, City or Town | Yardley | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19067 | |
City Area Code | 215 | |
Local Phone Number | 698-5100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 134,675,393 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001219601 | |
Current Fiscal Year End Date | --12-31 | |
New York Stock Exchange | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock $5.00 Par Value | |
Trading Symbol | CCK | |
Security Exchange Name | NYSE | |
7 3/8% Debentures Due 2026 | New York Stock Exchange | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7 3/8% Debentures Due 2026 | |
Trading Symbol | CCK26 | |
Security Exchange Name | NYSE | |
7 1/2% Debentures Due 2096 | New York Stock Exchange | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7 1/2% Debentures Due 2096 | |
Trading Symbol | CCK96 | |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 2,757 | $ 2,755 |
Cost of products sold, excluding depreciation and amortization | 2,220 | 2,210 |
Depreciation and amortization | 122 | 122 |
Selling and administrative expense | 162 | 157 |
Restructuring and other | 7 | 4 |
Income from operations | 246 | 262 |
Loss from early extinguishments of debt | 0 | 6 |
Other pension and postretirement | 31 | (18) |
Interest expense | 80 | 98 |
Interest income | (4) | (3) |
Foreign exchange | (12) | 1 |
Income before income taxes | 151 | 178 |
Provision for income taxes | 38 | 48 |
Equity earnings / (loss) in affiliates | 1 | 1 |
Net income | 114 | 131 |
Net income attributable to noncontrolling interests | (26) | (28) |
Net income attributable to Crown Holdings | $ 88 | $ 103 |
Earnings per common share attributable to Crown Holdings: | ||
Basic (in usd per share) | $ 0.66 | $ 0.77 |
Diluted (in usd per share) | $ 0.65 | $ 0.77 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 114 | $ 131 |
Other comprehensive (loss) / income, net of tax: | ||
Foreign currency translation adjustments | (319) | 59 |
Pension and other postretirement benefits | 257 | 14 |
Derivatives qualifying as hedges | (34) | 12 |
Total other comprehensive (loss) / income | (96) | 85 |
Total comprehensive income | 18 | 216 |
Net income attributable to noncontrolling interests | (26) | (28) |
Translation adjustments attributable to noncontrolling interests | 3 | 0 |
Derivatives qualifying as hedges attributable to noncontrolling interests | 2 | 0 |
Comprehensive (loss) / income attributable to Crown Holdings | $ (3) | $ 188 |
Consolidated Balance Sheets (Co
Consolidated Balance Sheets (Condensed) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 765 | $ 607 |
Receivables, net | 1,554 | 1,528 |
Inventories | 1,668 | 1,626 |
Prepaid expenses and other current assets | 263 | 241 |
Total current assets | 4,250 | 4,002 |
Goodwill | 4,249 | 4,430 |
Intangible assets, net | 1,893 | 2,015 |
Property, plant and equipment, net | 3,752 | 3,887 |
Operating lease right-of-use assets, net | 207 | 204 |
Other non-current assets | 1,182 | 967 |
Total | 15,533 | 15,505 |
Current liabilities | ||
Short-term debt | 100 | 75 |
Current maturities of long-term debt | 78 | 62 |
Current portion of operating lease liabilities | 53 | 51 |
Accounts payable | 2,077 | 2,646 |
Accrued liabilities | 930 | 1,065 |
Total current liabilities | 3,238 | 3,899 |
Long-term debt, excluding current maturities | 8,631 | 7,818 |
Current portion of operating lease liabilities | 157 | 156 |
Postretirement and pension liabilities | 658 | 683 |
Other non-current liabilities | 796 | 857 |
Commitments and contingent liabilities | ||
Noncontrolling interests | 389 | 379 |
Crown Holdings shareholders’ equity | 1,664 | 1,713 |
Total equity | 2,053 | 2,092 |
Total | $ 15,533 | $ 15,505 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Condensed) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 114 | $ 131 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 122 | 122 |
Restructuring and other | 7 | 4 |
Pension expense | 43 | (2) |
Pension contributions | (5) | (7) |
Stock-based compensation | 10 | 8 |
Changes in assets and liabilities: | ||
Working capital changes and other | (898) | (922) |
Net cash used for operating activities | (607) | (666) |
Cash flows from investing activities | ||
Capital expenditures | (110) | (75) |
Proceeds from sale of property, plant and equipment | 0 | 5 |
Net investment hedge | 14 | 6 |
Net cash used for investing activities | (96) | (64) |
Cash flows from financing activities | ||
Proceeds from long-term debt | 93 | 0 |
Payments of long-term debt | (12) | (281) |
Net change in revolving credit facility and short-term debt | 872 | 731 |
Payments of finance leases | (1) | (14) |
Common stock issued | 1 | 2 |
Common stock repurchased | (57) | (1) |
Contributions from noncontrolling interests | 2 | 0 |
Dividends paid to noncontrolling interests | (11) | (9) |
Foreign exchange derivatives related to debt | (5) | (11) |
Net cash provided by financing activities | 882 | 417 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21) | 2 |
Net change in cash, cash equivalents and restricted cash | 158 | (311) |
Cash, cash equivalents and restricted cash beginning balance | 663 | 659 |
Cash, cash equivalents and restricted cash ending balance | $ 821 | $ 348 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Accumulated Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Crown Equity | Noncontrolling Interests |
Balance at beginning of period at Dec. 31, 2018 | $ 1,286 | $ 929 | $ 186 | $ 3,449 | $ (3,374) | $ (253) | $ 937 | $ 349 |
Net income attributable to Crown Holdings | 103 | 103 | 103 | |||||
Net income attributable to noncontrolling interests | 28 | 28 | ||||||
Net income | 131 | |||||||
Other comprehensive income | 85 | 85 | 85 | |||||
Dividends paid to noncontrolling interests | (9) | 0 | (9) | |||||
Restricted stock awarded | 0 | (1) | 1 | 0 | ||||
Stock-based compensation | 8 | 8 | 8 | |||||
Common stock issued | 2 | 2 | 2 | |||||
Common stock repurchased | (1) | (1) | (1) | |||||
Balance at end of period at Mar. 31, 2019 | 1,502 | 929 | 194 | 3,552 | (3,289) | (252) | 1,134 | 368 |
Balance at beginning of period at Dec. 31, 2019 | 2,092 | 929 | 207 | 3,959 | (3,131) | (251) | 1,713 | 379 |
Net income attributable to Crown Holdings | 88 | 88 | 88 | |||||
Net income attributable to noncontrolling interests | 26 | 26 | ||||||
Net income | 114 | |||||||
Other comprehensive income | (96) | (91) | (91) | (5) | ||||
Dividends paid to noncontrolling interests | (11) | (11) | ||||||
Restricted stock awarded | 0 | (1) | 1 | |||||
Stock-based compensation | 10 | 10 | 10 | |||||
Common stock issued | 1 | 1 | 1 | |||||
Common stock repurchased | (57) | (52) | (5) | (57) | ||||
Balance at end of period at Mar. 31, 2020 | $ 2,053 | $ 929 | $ 165 | $ 4,047 | $ (3,222) | $ (255) | $ 1,664 | $ 389 |
Statement of Information Furnis
Statement of Information Furnished | 3 Months Ended |
Mar. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Statement of Information Furnished | Statement of Information Furnished The consolidated financial statements include the accounts of Crown Holdings, Inc. and its consolidated subsidiaries (the “Company”). The accompanying unaudited interim consolidated financial statements have been prepared in accordance with Form 10-Q instructions. In the opinion of management, these consolidated financial statements contain all adjustments of a normal and recurring nature necessary for a fair statement of the financial position of the Company as of March 31, 2020 and the results of its operations for the three months ended March 31, 2020 and 2019 and of its cash flows for the three months ended March 31, 2020 and 2019 . The results reported in these consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year including the impact of the coronavirus pandemic which cannot be determined at this time. These results have been determined on the basis of accounting principles generally accepted in the United States of America (“GAAP”), the application of which requires management’s utilization of estimates, and actual results may differ materially from the estimates utilized. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been condensed or omitted. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 |
Accounting and Reporting Develo
Accounting and Reporting Developments | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting and Reporting Developments | Accounting and Reporting Developments Recently Adopted Accounting Standards In June 2016, the FASB issued new guidance on the accounting for credit losses on financial instruments. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in operating leases and off-balance-sheet credit exposures. The guidance became effective for the Company on January 1, 2020 and did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued new guidance which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service arrangement (i.e. hosting arrangement) with the guidance on capitalizing costs for internal use software. The Company adopted the guidance on a prospective basis on January 1, 2020. The guidance did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Standards In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by, among other things, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws. The guidance is effective for the Company on January 1, 2021. The Company is currently evaluating the impact of adopting this standard and does not expect the guidance to have a material impact on its consolidated financial statements. In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying GAAP to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and can be applied through December 31, 2022. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Mar. 31, 2020 | |
Restricted Cash [Abstract] | |
Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash included in the Company's Consolidated Balance Sheets and Statement of Cash Flows were as follows: March 31, 2020 December 31, 2019 Cash and cash equivalents $ 765 $ 607 Restricted cash included in prepaid expenses and other current assets $ 55 $ 50 Restricted cash included in other non-current assets 1 6 Total restricted cash $ 56 $ 56 Total cash, cash equivalents and restricted cash $ 821 $ 663 Amounts included in restricted cash primarily represent amounts required to be segregated by certain of the Company's receivables securitization agreements. |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Receivables | Receivables March 31, 2020 December 31, 2019 Accounts receivable $ 1,164 $ 1,162 Less: allowance for credit losses (61 ) (62 ) Net trade receivables 1,103 1,100 Unbilled receivables 245 226 Miscellaneous receivables 206 202 Receivables, net $ 1,554 $ 1,528 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Gross [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or market, with cost principally determined under the first-in first-out ("FIFO") or average cost method. March 31, 2020 December 31, 2019 Raw materials and supplies $ 916 $ 905 Work in process 158 151 Finished goods 594 570 $ 1,668 $ 1,626 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Gross carrying amounts and accumulated amortization of finite-lived intangible assets by major class were as follows: March 31, 2020 December 31, 2019 Gross Accumulated amortization Net Gross Accumulated amortization Net Customer relationships $ 1,554 $ (347 ) $ 1,207 $ 1,621 $ (331 ) $ 1,290 Trade names 535 (45 ) 490 541 (40 ) 501 Technology 156 (46 ) 110 158 (41 ) 117 Long term supply contracts 120 (39 ) 81 150 (48 ) 102 Patents 14 (9 ) 5 14 (9 ) 5 $ 2,379 $ (486 ) $ 1,893 $ 2,484 $ (469 ) $ 2,015 Total amortization expense of intangible assets was $45 and $47 for the three months ended March 31, 2020 and 2019. |
Restructuring and Other
Restructuring and Other | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Reserve [Abstract] | |
Restructuring and Other | Restructuring and Other The Company recorded restructuring and other charges / (benefits) as follows: Three Months Ended March 31, 2020 2019 Asset impairments and sales $ 1 $ 4 Restructuring 3 9 Other costs / (income) 3 (9 ) $ 7 $ 4 For the three months ended March 31, 2020, restructuring included charges related to internal reorganizations within the Transit Packaging division, including headcount reductions. For the three months ended March 31, 2019, asset impairments and sales included $6 related to a fire at a production facility in Asia and restructuring included a charge of $8 related to headcount reductions in the Company's European Division. Asset impairment and sales also included gains on asset sales related to prior restructuring actions. For the three months ended March 31, 2019, other income related to gains arising from favorable court rulings related to the recovery of indirect taxes paid in prior years by certain of the Company's Brazilian subsidiaries. At March 31, 2020 , the Company had restructuring accruals of $15 , primarily related to current and prior year actions to reduce manufacturing capacity and headcount in its European businesses. The Company expects to pay these amounts over the next twelve months. The Company continues to review its supply and demand profile and long-term plans in its businesses, and it is possible that the Company may record additional restructuring charges in the future. |
Asbestos-Related Liabilities
Asbestos-Related Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Liability for Asbestos and Environmental Claims [Abstract] | |
Asbestos-Related Liabilities | Asbestos-Related Liabilities Crown Cork & Seal Company, Inc. (“Crown Cork”) is one of many defendants in a substantial number of lawsuits filed throughout the U.S. by persons alleging bodily injury as a result of exposure to asbestos. These claims arose from the insulation operations of a U.S. company, the majority of whose stock Crown Cork purchased in 1963. Approximately ninety days after the stock purchase, this U.S. company sold its insulation assets and was later merged into Crown Cork. Prior to 1998, amounts paid to asbestos claimants were covered by a fund made available to Crown Cork under a 1985 settlement with carriers insuring Crown Cork through 1976, when Crown Cork became self-insured. The fund was depleted in 1998 and the Company has no remaining coverage for asbestos-related costs. In December 2001, the Commonwealth of Pennsylvania enacted legislation that limits the asbestos-related liabilities of Pennsylvania corporations that are successors by corporate merger to companies involved with asbestos. The legislation limits the successor’s liability for asbestos to the acquired company’s asset value adjusted for inflation. Crown Cork has paid significantly more for asbestos-related claims than the acquired company’s adjusted asset value. In November 2004, the legislation was amended to address a Pennsylvania Supreme Court decision (Ieropoli v. AC&S Corporation, et. al., No. 117 EM 2002) which held that the statute violated the Pennsylvania Constitution due to retroactive application. The Company cautions that the limitations of the statute, as amended, are subject to litigation and may not be upheld. In June 2003, the state of Texas enacted legislation that limits the asbestos-related liabilities in Texas courts of companies such as Crown Cork that allegedly incurred these liabilities because they are successors by corporate merger to companies that had been involved with asbestos. The Texas legislation, which applies to future claims and pending claims, caps asbestos-related liabilities at the total gross value of the predecessor’s assets adjusted for inflation. Crown Cork has paid significantly more for asbestos-related claims than the total adjusted value of its predecessor’s assets. In October 2010, the Texas Supreme Court held that the Texas legislation was unconstitutional under the Texas Constitution when applied to asbestos-related claims pending against Crown Cork when the legislation was enacted in June 2003. The Company believes that the decision of the Texas Supreme Court is limited to retroactive application of the Texas legislation to asbestos-related cases that were pending against Crown Cork in Texas on June 11, 2003 and therefore, in its accrual, continues to assign no value to claims filed after June 11, 2003. In recent years, the states of Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Michigan, Mississippi, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, West Virginia, Wisconsin and Wyoming enacted legislation that limits asbestos-related liabilities under state law of companies such as Crown Cork that allegedly incurred these liabilities because they are successors by corporate merger to companies that had been involved with asbestos. The legislation, which applies to future and, with the exception of Arkansas, Georgia, South Carolina, South Dakota, West Virginia and Wyoming, pending claims, caps asbestos-related liabilities at the fair market value of the predecessor's total gross assets adjusted for inflation. Crown Cork has paid significantly more for asbestos-related claims than the total value of its predecessor's assets adjusted for inflation. Crown Cork has integrated the legislation into its claims defense strategy. The Company further cautions that an adverse ruling in any litigation relating to the constitutionality or applicability to Crown Cork of one or more statutes that limits the asbestos-related liability of alleged defendants like Crown Cork could have a material impact on the Company. During the three months ended March 31, 2020 , the Company paid $1 to settle outstanding claims and had claims activity as follows: Beginning claims 56,000 New claims 500 Settlements or dismissals (500 ) Ending claims 56,000 In the fourth quarter of each year, the Company performs an analysis of outstanding claims and categorizes these claims by year of exposure and state filed. As of December 31, 2019 , the Company's outstanding claims were: Claimants alleging first exposure after 1964 16,500 Claimants alleging first exposure before or during 1964 filed in: Texas 13,000 Pennsylvania 1,500 Other states that have enacted asbestos legislation 6,000 Other states 19,000 Total claims outstanding 56,000 The outstanding claims in each period exclude approximately 19,000 inactive claims. Due to the passage of time, the Company considers it unlikely that the plaintiffs in these cases will pursue further action against the Company. The exclusion of these inactive claims had no effect on the calculation of the Company’s accrual as the claims were filed in states, as described above, where the Company’s liability is limited by statute. With respect to claimants alleging first exposure to asbestos before or during 1964, the Company does not include in its accrual any amounts for settlements in states where the Company’s liability is limited by statute except for certain pending claims in Texas as described earlier. With respect to post-1964 claims, regardless of the existence of asbestos legislation, the Company does not include in its accrual any amounts for settlement of these claims because of increased difficulty of establishing identification of relevant insulation products as the cause of injury. Given the Company's settlement experience with post-1964 claims, it does not believe that an adverse ruling in the Texas or Pennsylvania asbestos litigation cases, or in any other state that has enacted asbestos legislation, would have a material impact on the Company with respect to such claims. As of December 31, the percentage of outstanding claims related to claimants alleging serious diseases (primarily mesothelioma and other malignancies) were as follows: 2019 2018 Total claims 22 % 22 % Pre-1964 claims in states without asbestos legislation 41 % 41 % Crown Cork has entered into arrangements with plaintiffs’ counsel in certain jurisdictions with respect to claims which are not yet filed, or asserted, against it. However, Crown Cork expects claims under these arrangements to be filed or asserted against Crown Cork in the future. The projected value of these claims is included in the Company’s estimated liability as of March 31, 2020 . As of March 31, 2020 , the Company’s accrual for pending and future asbestos-related claims and related legal costs was $ 270 , including $ 227 for unasserted claims. The Company determines its accrual without limitation to a specific time period. It is reasonably possible that the actual loss could be in excess of the Company’s accrual. However, the Company is unable to estimate the reasonably possible loss in excess of its accrual due to uncertainty in the following assumptions that underlie the Company’s accrual and the possibility of losses in excess of such accrual: the amount of damages sought by the claimant (which was not specified for approximately 81% of the claims outstanding at the end of 2019 ), the Company and claimant’s willingness to negotiate a settlement, the terms of settlements of other defendants with asbestos-related liabilities, the bankruptcy filings of other defendants (which may result in additional claims and higher settlements for non-bankrupt defendants), the nature of pending and future claims (including the seriousness of alleged disease, whether claimants allege first exposure to asbestos before or during 1964 and the claimant’s ability to demonstrate the alleged link to Crown Cork), the volatility of the litigation environment, the defense strategies available to the Company, the level of future claims, the rate of receipt of claims, the jurisdiction in which claims are filed, and the effect of state asbestos legislation (including the validity and applicability of the Pennsylvania legislation to non-Pennsylvania jurisdictions, where the substantial majority of the Company’s asbestos cases are filed). |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The Company, along with others in most cases, has been identified by the U.S. Environmental Protection Agency or a comparable state environmental agency as a Potentially Responsible Party (“PRP”) at a number of sites and has recorded aggregate accruals of $8 for its share of estimated future remediation costs at these sites. The Company has been identified as having either directly or indirectly disposed of commercial or industrial waste at the sites subject to the accrual, and where appropriate and supported by available information, generally has agreed to be responsible for a percentage of future remediation costs based on an estimated volume of materials disposed in proportion to the total materials disposed at each site. The Company has not had monetary sanctions imposed nor has the Company been notified of any potential monetary sanctions at any of the sites. The Company has also recorded aggregate accruals of $6 for remediation activities at various worldwide locations that are owned by the Company and for which the Company is not a member of a PRP group. Although the Company believes its accruals are adequate to cover its portion of future remediation costs, there can be no assurance that the ultimate payments will not exceed the amount of the Company’s accruals and will not have a material effect on its results of operations, financial position and cash flow. Any possible loss or range of potential loss that may be incurred in excess of the recorded accruals cannot be estimated. In March 2015, the Bundeskartellamt, or German Federal Cartel Office (“FCO”), conducted unannounced inspections of the premises of several metal packaging manufacturers, including a German subsidiary of the Company. The local court order authorizing the inspection cited FCO suspicions of anti-competitive agreements in the German market for the supply of metal packaging products. The Company conducted an internal investigation into the matter and discovered instances of inappropriate conduct by certain employees of German subsidiaries of the Company. The Company cooperated with the FCO and submitted a leniency application with the FCO which disclosed the findings of its internal investigation to date. In April 2018, the FCO discontinued its national investigation and referred the matter to the European Commission (the “Commission”). Following the referral, Commission officials conducted unannounced inspections of the premises of several metal packaging manufacturers, including Company subsidiaries in Germany, France and the United Kingdom. The Commission's investigation is ongoing and, to date, the Commission has not officially charged the Company or any of its subsidiaries with violations of competition law. The Company is cooperating with the Commission and submitted a leniency application with the Commission with respect to the findings of the investigation in Germany referenced above. This application may lead to the reduction of possible future penalties. At this stage of the investigation the Company believes that a loss is probable but is unable to predict the ultimate outcome of the Commission’s investigation and is unable to estimate the loss or possible range of losses that could be incurred, and has therefore not recorded a charge in connection with the actions by the Commission. If the Commission finds that the Company or any of its subsidiaries violated competition law, fines levied by the Commission could be material to the Company's operating results and cash flows for the periods in which they are resolved or become reasonably estimable. In March 2017, U.S. Customs and Border Protection (“CBP”) at the Port of Milwaukee issued a penalty notification alleging that certain of the Company’s subsidiaries intentionally misclassified the importation of certain goods into the U.S. during the period 2004-2009. CBP initially assessed a penalty of $18 and subsequently mitigated to $6 . The Company has acknowledged to CBP that the goods were misclassified and has paid all related duties. The Company has asserted that the misclassification was unintentional and disputes the penalty assessment. At the present time, based on the information available, the Company does not believe that a loss for the alleged intentional misclassification is probable. There can be no assurance the Company will be successful in contesting the assessed penalty. The Company and its subsidiaries are also subject to various other lawsuits and claims with respect to governmental, labor, environmental, securities, vendor and other matters arising out of the Company’s normal course of business. While the impact on future financial results is not subject to reasonable estimation because considerable uncertainty exists, management believes that the ultimate liabilities resulting from such lawsuits and claims will not materially affect the Company’s consolidated earnings, financial position or cash flow. The Company has various commitments to purchase materials, supplies and utilities as part of the ordinary course of business. The Company’s basic raw materials for its products are steel and aluminum, both of which are purchased from multiple sources. The Company is subject to fluctuations in the cost of these raw materials (including in connection with tariffs recently imposed in the U.S., which may increase costs) and has periodically adjusted its selling prices to reflect these movements. There can be no assurance that the Company will be able to fully recover any increases or fluctuations in raw material costs from its customers. The Company also has commitments for standby letters of credit and for purchases of capital assets. At March 31, 2020 |
Derivative and Other Financial
Derivative and Other Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative and Other Financial Instruments | Derivative and Other Financial Instruments Fair Value Measurements Under GAAP a framework exists for measuring fair value, providing a three-tier hierarchy of pricing inputs used to report assets and liabilities that are adjusted to fair value. Level 1 includes inputs such as quoted prices which are available in active markets for identical assets or liabilities as of the report date. Level 2 includes inputs other than those available in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 includes unobservable pricing inputs that are not corroborated by market data or other objective sources. The Company has no recurring items valued using Level 3 inputs other than certain pension plan assets. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities measured at fair value and their placement within the fair value hierarchy. The Company applies a market approach to value its commodity price hedge contracts. Prices from observable markets are used to develop the fair value of these financial instruments and they are reported under Level 2. The Company uses an income approach to value its foreign exchange forward contracts. These contracts are valued using a discounted cash flow model that calculates the present value of future cash flows under the terms of the contracts using market information as of the reporting date, such as foreign exchange spot and forward rates, and are reported under Level 2 of the fair value hierarchy. Fair value disclosures for financial assets and liabilities that were accounted for at fair value on a recurring basis are provided later in this note. In addition, see Note K for fair value disclosures related to debt. Derivative Financial Instruments In the normal course of business the Company is subject to risk from adverse fluctuations in currency exchange rates, interest rates and commodity prices. The Company manages these risks through a program that includes the use of derivative financial instruments, primarily swaps and forwards. Counterparties to these contracts are major financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company does not use derivative instruments for trading or speculative purposes. The Company’s objective in managing exposure to market and interest rate risk is to limit the impact on earnings and cash flow. The extent to which the Company uses such instruments is dependent upon its access to these contracts in the financial markets and its success using other methods, such as netting exposures in the same currencies to mitigate foreign exchange risk, using sales agreements that permit the pass-through of commodity price and foreign exchange rate risk to customers and borrowing both fixed and floating debt instruments to manage interest rate risk. For derivative financial instruments accounted for in hedging relationships, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the manner in which effectiveness will be assessed. The Company formally assesses, both at inception and at least quarterly thereafter, whether the hedging relationships are effective in offsetting changes in fair value or cash flows of the related underlying exposures. When a hedge no longer qualifies for hedge accounting, the change in fair value from the date of the last effectiveness test is recognized in earnings. Any gain or loss which has accumulated in other comprehensive income at the date of the last effectiveness test is reclassified into earnings at the same time of the underlying exposure. Cash Flow Hedges The Company designates certain derivative financial instruments as cash flow hedges. No components of the hedging instruments are excluded from the assessment of hedge effectiveness. Changes in fair value of outstanding derivatives accounted for as cash flow hedges are recorded in accumulated other comprehensive income until earnings are impacted by the hedged transaction. Classification of the gain or loss in the Consolidated Statements of Operations upon reclassification from accumulated comprehensive income is the same as that of the underlying exposure. Contracts outstanding at March 31, 2020 mature between one and thirty months. When the Company discontinues hedge accounting because it is no longer probable that an anticipated transaction will occur in the originally specified period, changes to the fair value accumulated in other comprehensive income are recognized immediately in earnings. The Company uses commodity forward contracts to hedge anticipated purchases of various commodities, including aluminum, fuel oil and natural gas, and these exposures are hedged by a central treasury unit. The Company also designates certain foreign exchange contracts as cash flow hedges of anticipated foreign currency denominated sales or purchases. The Company manages these risks at the operating unit level. Foreign currency risk is generally hedged with the related commodity price risk. The Company also uses interest rate swaps to convert interest on floating rate debt to a fixed-rate. The following tables set forth financial information about the impact on other comprehensive income ("OCI"), accumulated other comprehensive income (“AOCI”) and earnings from changes in the fair value of derivative instruments. Amount of gain/(loss) recognized in OCI Three Months Ended March 31, Derivatives in cash flow hedges 2020 2019 Foreign exchange $ 1 $ (4 ) Interest Rate (1 ) — Commodities (39 ) 10 $ (39 ) $ 6 Amount of gain/ (loss) reclassified from AOCI into income Three Months Ended March 31, Affected line items in the Derivatives in cash flow hedges 2020 2019 Statement of Operations Foreign exchange $ (1 ) $ (1 ) Net sales Commodities 3 3 Net sales Foreign exchange (1 ) — Cost of products sold Commodities (10 ) (10 ) Cost of products sold (9 ) (8 ) Income before taxes 2 2 Provision for income taxes Total reclassified $ (7 ) $ (6 ) Net income For the twelve-month period ending March 31, 2021, a net loss of $51 ( $41 , net of tax) is expected to be reclassified to earnings for commodity and foreign exchange contracts. No amounts were reclassified during the three months ended March 31, 2020 and 2019 in connection with anticipated transactions that were no longer considered probable. Fair Value Hedges and Contracts Not Designated as Hedges The Company designates certain derivative financial instruments as fair value hedges of recognized foreign-denominated assets and liabilities, generally trade accounts receivable and payable and unrecognized firm commitments. The notional values and maturity dates of the derivative instruments coincide with those of the hedged items. Changes in fair value of the derivative financial instruments, excluding time value, are offset by changes in fair value of the related hedged items. For the three months ended March 31, 2020 and 2019, the Company recorded a loss of less than $1 and a gain of less than $1 from foreign exchange contracts designated as fair value hedges. These adjustments were reported within foreign exchange in the Consolidated Statements of Operations. Certain derivative financial instruments, including foreign exchange contracts related to intercompany debt, were not designated or did not quality for hedge accounting; however, they are effective economic hedges as the changes in their fair value, except for time value, are offset by changes arising from re-measurement of the related hedged items. The Company’s primary use of these derivative instruments is to offset the earnings impact that fluctuations in foreign exchange rates have on certain monetary assets and liabilities denominated in nonfunctional currencies. Changes in fair value of these derivative instruments are immediately recognized in earnings as foreign exchange adjustments. The following table sets forth the impact on earnings from derivatives not designated as hedges. Pre-tax amount of gain/ (loss) recognized in income on derivative Three Months Ended March 31, Affected line item in the Derivatives not designated as hedges 2020 2019 Statement of Operations Foreign exchange $ (1 ) $ (1 ) Net sales Foreign exchange 1 1 Cost of products sold Foreign exchange 6 (15 ) Foreign exchange $ 6 $ (15 ) Net Investment Hedges The Company designates certain debt and derivative instruments as net investment hedges to manage foreign currency risk relating to net investments in subsidiaries denominated in foreign currencies and reduce the variability in the functional currency equivalent cash flows. During the three months ended March 31, 2020 and 2019, the Company recorded a gain of $26 ( $26 , net of tax) and a gain of $28 ( $28 , net of tax) in other comprehensive income for certain debt instruments that are designated as hedges of its net investment in a euro-based subsidiary. As of March 31, 2020 a cumulative loss of $6 (gain of $17 , net of tax) and as of December 31, 2019, a cumulative loss of $32 ( $9 , net of tax) were recognized in accumulated other comprehensive income related to these net investment hedges and the carrying amount of the hedged net investment was €1,138 ( $1,253 at March 31, 2020). The following tables set forth the impact on OCI from changes in the fair value of derivative instruments designated as net investment hedges. Amount of gain/(loss) recognized in OCI Three months ended March 31, Derivatives designated as net investment hedges 2020 2019 Foreign exchange $ 61 $ 26 Gains and losses representing components excluded from the assessment of effectiveness on derivatives designated as net investment hedges are recognized in accumulated other comprehensive income. Gains or losses on net investment hedges remain in accumulated other comprehensive income until disposal of the underlying assets. Fair Values of Derivative Financial Instruments and Valuation Hierarchy The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 , respectively. The fair values of these financial instruments were reported under Level 2 of the fair value hierarchy. Balance Sheet classification March 31, December 31, 2019 Balance Sheet classification March 31, December 31, 2019 Derivatives designated as hedging instruments Foreign exchange contracts cash flow Other current assets $ 10 $ 10 Accrued liabilities $ 11 $ 15 Other non-current assets 1 1 Other non-current liabilities — 1 Foreign exchange contracts fair value Other current assets 15 1 Accrued liabilities 2 3 Commodities contracts cash flow Other current assets 17 11 Accrued liabilities 67 21 Other non-current assets 1 — Other non-current liabilities 4 — Interest rate contracts cash flow Other non-current assets — — Other non-current liabilities 3 1 Net investment hedge Other non-current assets 128 51 Other non-current liabilities — 2 $ 172 $ 74 $ 87 $ 43 Balance Sheet classification March 31, December 31, 2019 Balance Sheet classification March 31, December 31, 2019 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets $ 26 $ 7 Accrued liabilities $ 15 $ 5 Other non-current assets 2 2 Other non-current liabilities 1 1 $ 28 $ 9 $ 16 $ 6 Total derivatives $ 200 $ 83 $ 103 $ 49 Fair Value Hedge Carrying Amounts Carrying amount of the hedged assets/(liabilities) March 31, December 31, Line item in the Balance Sheet in which the hedged item is included Receivables, net 11 12 Accounts payable (90 ) (83 ) As of March 31, 2020 , the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedge assets and liabilities were a gain of $13 . As of December 31, 2019 , the cumulative amounts of fair value hedging adjustments included in the carrying amount of the hedge assets and liabilities were a loss of $2 . Offsetting of Derivative Assets and Liabilities Certain derivative financial instruments are subject to agreements with counterparties similar to master netting arrangements and are eligible for offset. The Company has made an accounting policy election not to offset the fair values of these instruments within the statement of financial position. In the table below, the aggregate fair values of the Company's derivative assets and liabilities are presented on both a gross and net basis, where appropriate. Gross amounts recognized in the Balance Sheet Gross amounts not offset in the Balance Sheet Net amount Balance at March 31, 2020 Derivative assets $200 $21 $179 Derivative liabilities 103 21 82 Balance at December 31, 2019 Derivative assets 83 16 67 Derivative liabilities 49 16 33 Notional Values of Outstanding Derivative Instruments The aggregate U.S. dollar-equivalent notional values of outstanding derivative instruments in the Consolidated Balance Sheets at March 31, 2020 and December 31, 2019 were: March 31, 2020 December 31, 2019 Derivatives designated as cash flow hedges: Foreign exchange $ 807 $ 1,030 Commodities 356 334 Interest rate 200 200 Derivatives designated as fair value hedges: Foreign exchange 158 142 Derivatives designated as net investment hedges: Foreign exchange 1,075 1,075 Derivatives not designated as hedges: Foreign exchange 921 1,017 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's outstanding debt was as follows: March 31, 2020 December 31, 2019 Principal Carrying Principal Carrying outstanding amount outstanding amount Short-term debt $ 100 $ 100 $ 75 $ 75 Long-term debt Senior secured borrowings: Revolving credit facilities 828 828 — — Term loan facilities U.S. dollar at LIBOR + 1.5% due 2024 1,093 1,086 1,100 1,094 Euro at EURIBOR + 1.5% due 2024 1 492 492 505 504 Senior notes and debentures: €650 at 4.0% due 2022 715 711 729 725 U. S. dollar at 4.50% due 2023 1,000 996 1,000 995 €335 at 2.25% due 2023 369 365 376 372 €500 at 0.75% due 2023 605 600 617 610 €600 at 2.625% due 2024 661 656 673 668 €600 at 3.375% due 2025 661 656 673 667 U.S. dollar at 4.25% due 2026 400 395 400 395 U.S. dollar at 4.75% due 2026 875 863 875 863 U.S. dollar at 7.375% due 2026 350 348 350 348 €500 at 2.875% due 2026 550 543 561 554 U.S. dollar at 7.50% due 2096 40 40 40 40 Other indebtedness in various currencies 130 130 45 45 Total long-term debt 8,769 8,709 7,944 7,880 Less current maturities (78 ) (78 ) (62 ) (62 ) Total long-term debt, less current maturities $ 8,691 $ 8,631 $ 7,882 $ 7,818 (1) €447 and €450 at March 31, 2020 and December 31, 2019 The estimated fair value of the Company’s long-term borrowings, using a market approach incorporating Level 2 inputs such as quoted market prices for the same or similar issues, was $8,792 at March 31, 2020 and $8,410 at December 31, 2019 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The components of net periodic pension and other postretirement benefits costs for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, Pension benefits – U.S. plans 2020 2019 Service cost $ 5 $ 5 Interest cost 10 13 Expected return on plan assets (18 ) (18 ) Recognized net loss 14 14 Net periodic cost $ 11 $ 14 Three Months Ended March 31, Pension benefits – Non-U.S. plans 2020 2019 Service cost $ 3 $ 4 Interest cost 14 19 Expected return on plan assets (31 ) (35 ) Curtailment gain — (14 ) Settlement loss 37 — Recognized net loss 9 10 Net periodic cost / (benefit) $ 32 $ (16 ) Three Months Ended March 31, Other postretirement benefits 2020 2019 Interest cost 1 1 Recognized prior service credit (6 ) (9 ) Recognized net loss 1 1 Net periodic benefit $ (4 ) $ (7 ) In the three months ended March 31, 2020, the Company recorded settlement charges related to the payment of lump sum buy-outs to settle certain non-U.S. pension obligations using plan assets. The Company may incur additional settlement charges in 2020. In the three months ended March 31, 2019, the Company recorded a curtailment gain to recognize prior service credits that were previously recorded in accumulated other comprehensive income in connection with the closure of a non-U.S. defined benefit pension plan. The components of net periodic cost / (benefit) other than the service cost component are included in other pension and postretirement in the Consolidated Statement of Operations. The following table provides information about amounts reclassified from accumulated other comprehensive income. Three Months Ended Details about accumulated other March 31, Affected line item in the comprehensive income components 2020 2019 statement of operations Actuarial losses $ 24 $ 25 Other pension and postretirement Settlements 37 — Other pension and postretirement Prior service credit (6 ) (9 ) Other pension and postretirement Curtailments — (14 ) Other pension and postretirement 55 2 Income before taxes (4 ) (1 ) Provision for income taxes Total reclassified $ 51 $ 1 Net income |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table provides information about the changes in each component of accumulated other comprehensive income. Defined benefit plans Foreign currency translation Gains and losses on cash flow hedges Total Balance at January 1, 2019 $ (1,533 ) $ (1,817 ) $ (24 ) $ (3,374 ) Other comprehensive income before reclassifications 13 59 6 78 Amounts reclassified from accumulated other comprehensive income 1 — 6 7 Other comprehensive income 14 59 12 85 Balance at March 31, 2019 $ (1,519 ) $ (1,758 ) $ (12 ) $ (3,289 ) Balance at January 1, 2020 $ (1,449 ) $ (1,668 ) $ (14 ) $ (3,131 ) Other comprehensive income / (loss) before reclassifications 206 (316 ) (39 ) (149 ) Amounts reclassified from accumulated other comprehensive income 51 — 7 58 Other comprehensive income / (loss) 257 (316 ) (32 ) (91 ) Balance at March 31, 2020 $ (1,192 ) $ (1,984 ) $ (46 ) $ (3,222 ) See Note J and Note L for further details of amounts related to cash flow hedges and defined benefit plans. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation A summary of restricted and deferred stock transactions during the three months ended March 31, 2020 is as follows: Number of shares Non-vested stock awards outstanding at January 1, 2020 2,102,654 Awarded: Time-vesting shares 68,824 Performance-based shares 161,426 Released: Time-vesting shares (82,427 ) Performance-based shares (163,458 ) Forfeitures: Time-vesting shares (47,700 ) Performance-based shares — Non-vested stock awards outstanding at March 31, 2020 2,039,319 The performance-based share awards are subject to either a market condition or a performance condition. For awards subject to a market condition, the performance metric is the Company's total shareholder return, which includes share price appreciation and dividends paid during the three-year term of the award, measured against a peer group of companies. These awards cliff vest at the end of three years . The number of performance-based shares that will ultimately vest is based on the level of market performance achieved, ranging between 0% and 200% of the shares originally awarded, and are settled in stock. For awards subject to a performance condition, the performance metric is the Company's average return on invested capital over the three-year term. These awards cliff vest at the end of three years . The number of performance-based shares that will ultimately vest is based on the level of performance achieved, ranging between 0% and 200% of the shares originally awarded, and are settled in stock. The time-vesting restricted and deferred stock awards vest ratably over three to five years. The weighted average grant-date fair values of awards issued during the three months ended March 31, 2020 were $70.31 for the time-vesting stock awards and $72.47 for the performance-based stock awards. The fair value of the performance-based shares subject to a market condition awarded in 2020 was calculated using a Monte Carlo valuation model, including a weighted average stock price volatility of 22.0% , an expected term of three years, and a weighted average risk-free interest rate of 1.60% . As of March 31, 2020 , unrecognized compensation cost related to outstanding non-vested stock awards was $70 . The weighted average period over which the expense is expected to be recognized is 2.83 years. The aggregate market value of the shares released on the vesting dates was $12 for the three months ended March 31, 2020 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue For the three months ended March 31, 2020 and 2019, the Company recognized revenue as follows: Three Months Ended March 31, 2020 2019 Revenue recognized over time $ 1,475 $ 1,365 Revenue recognized at a point in time 1,282 1,390 Total revenue $ 2,757 $ 2,755 See Note Q for further disaggregation of the Company's revenue. The Company has applied the practical expedient to exclude disclosure of remaining performance obligations as its binding orders typically have a term of one year or less. Contract Assets and Contract Liabilities Contract assets and liabilities are reported in a net position on a contract-by-contract basis. Net contract assets were as follows: March 31, 2020 December 31, 2019 Contract assets included in prepaid and other current assets $ 32 $ 30 Contract liabilities included in accrued liabilities (4 ) (5 ) Net contract asset $ 28 $ 25 Contract assets at March 31, 2020 primarily relates to revenue recognized for customized work-in-process inventory in the Company's equipment business and European three-piece food can product businesses. During the three months ended March 31, 2020 , the Company recognized revenue of $1 related to contract liabilities at December 31, 2019 for performance obligations satisfied during the period. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table summarizes the computations of basic and diluted earnings per share attributable to the Company. Three Months Ended March 31, 2020 2019 Net income attributable to Crown Holdings $ 88 $ 103 Weighted average shares outstanding: Basic 134.1 133.8 Dilutive restricted stock 0.9 0.6 Diluted 135.0 134.4 Basic earnings per share $ 0.66 $ 0.77 Diluted earnings per share $ 0.65 $ 0.77 For the three months ended March 31, 2020 and 2019, 0.4 million and 0.2 million contingently issuable common shares were excluded from the computation of diluted earnings per share because the effect would be anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company evaluates performance and allocates resources based on segment income, which is not a defined term under GAAP. The Company defines segment income as income from operations adjusted to exclude intangibles amortization charges, provisions for asbestos and restructuring and other, and the impact of fair value adjustments to inventory acquired in an acquisition. Segment income should not be considered in isolation or as a substitute for net income prepared in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies. The tables below present information about the Company's operating segments. External Sales Three Months Ended March 31, 2020 2019 Americas Beverage $ 871 $ 788 European Beverage 346 339 European Food 402 423 Asia Pacific 301 321 Transit Packaging 522 569 Total reportable segments 2,442 2,440 Non-reportable segments 315 315 Total $ 2,757 $ 2,755 The primary sources of revenue included in non-reportable segments are the Company's food can and closures business in North America, aerosol can businesses in North America and Europe, its promotional packaging business in Europe and its tooling and equipment operations in the U.S. and U.K. Intersegment Sales Three Months Ended March 31, 2020 2019 Americas Beverage $ 6 $ 4 European Beverage 1 1 European Food 21 18 Transit Packaging 4 3 Total reportable segments 32 26 Non-reportable segments 29 26 Total $ 61 $ 52 Intersegment sales primarily include sales of ends and components used to manufacture cans, such as printed and coated metal, as well as parts and equipment used in the manufacturing process. Segment Income Three Months Ended March 31, 2020 2019 Americas Beverage $ 134 $ 113 European Beverage 39 39 European Food 33 48 Asia Pacific 45 45 Transit Packaging 66 73 Total reportable segments $ 317 $ 318 A reconciliation of segment income of reportable segments to income before income taxes is as follows: Three Months Ended March 31, 2020 2019 Segment income of reportable segments $ 317 $ 318 Segment income of non-reportable segments 19 36 Corporate and unallocated items (38 ) (39 ) Restructuring and other (7 ) (4 ) Amortization of intangibles (45 ) (47 ) Accelerated depreciation — (2 ) Other pension and postretirement (31 ) 18 Loss from early extinguishments of debt — (6 ) Interest expense (80 ) (98 ) Interest income 4 3 Foreign exchange 12 (1 ) Income before income taxes $ 151 $ 178 For the three months ended March 31, 2020 , intercompany profits of less than $1 were eliminated within segment income of non-reportable segments. For the three months ended March 31, 2019, intercompany profits of $1 were eliminated within segment income of non-reportable segments. Corporate and unallocated items includes corporate and division administrative costs, technology costs, and unallocated items such as stock-based compensation. |
Accounting and Reporting Deve_2
Accounting and Reporting Developments (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards | Recently Issued Accounting Standards In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by, among other things, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws. The guidance is effective for the Company on January 1, 2021. The Company is currently evaluating the impact of adopting this standard and does not expect the guidance to have a material impact on its consolidated financial statements. In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying GAAP to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The guidance is effective upon issuance and can be applied through December 31, 2022. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash Cash (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restricted Cash [Abstract] | |
Schedule of Restricted Cash | Cash, cash equivalents, and restricted cash included in the Company's Consolidated Balance Sheets and Statement of Cash Flows were as follows: March 31, 2020 December 31, 2019 Cash and cash equivalents $ 765 $ 607 Restricted cash included in prepaid expenses and other current assets $ 55 $ 50 Restricted cash included in other non-current assets 1 6 Total restricted cash $ 56 $ 56 Total cash, cash equivalents and restricted cash $ 821 $ 663 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Receivables | March 31, 2020 December 31, 2019 Accounts receivable $ 1,164 $ 1,162 Less: allowance for credit losses (61 ) (62 ) Net trade receivables 1,103 1,100 Unbilled receivables 245 226 Miscellaneous receivables 206 202 Receivables, net $ 1,554 $ 1,528 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Gross [Abstract] | |
Components of Inventories | March 31, 2020 December 31, 2019 Raw materials and supplies $ 916 $ 905 Work in process 158 151 Finished goods 594 570 $ 1,668 $ 1,626 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amounts and Accumulated Amortization of Finite-lived Intangible Assets by Major Class | Gross carrying amounts and accumulated amortization of finite-lived intangible assets by major class were as follows: March 31, 2020 December 31, 2019 Gross Accumulated amortization Net Gross Accumulated amortization Net Customer relationships $ 1,554 $ (347 ) $ 1,207 $ 1,621 $ (331 ) $ 1,290 Trade names 535 (45 ) 490 541 (40 ) 501 Technology 156 (46 ) 110 158 (41 ) 117 Long term supply contracts 120 (39 ) 81 150 (48 ) 102 Patents 14 (9 ) 5 14 (9 ) 5 $ 2,379 $ (486 ) $ 1,893 $ 2,484 $ (469 ) $ 2,015 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Reserve [Abstract] | |
Restructuring and Other Charges (Benefits) | The Company recorded restructuring and other charges / (benefits) as follows: Three Months Ended March 31, 2020 2019 Asset impairments and sales $ 1 $ 4 Restructuring 3 9 Other costs / (income) 3 (9 ) $ 7 $ 4 |
Asbestos-Related Liabilities (T
Asbestos-Related Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Liability for Asbestos and Environmental Claims [Abstract] | |
Summary of Claims Activity | During the three months ended March 31, 2020 , the Company paid $1 to settle outstanding claims and had claims activity as follows: Beginning claims 56,000 New claims 500 Settlements or dismissals (500 ) Ending claims 56,000 |
Summary of Outstanding Asbestos Claims by Years of Exposure and State Filed | In the fourth quarter of each year, the Company performs an analysis of outstanding claims and categorizes these claims by year of exposure and state filed. As of December 31, 2019 , the Company's outstanding claims were: Claimants alleging first exposure after 1964 16,500 Claimants alleging first exposure before or during 1964 filed in: Texas 13,000 Pennsylvania 1,500 Other states that have enacted asbestos legislation 6,000 Other states 19,000 Total claims outstanding 56,000 |
Summary of Percentage of Outstanding Claims Related to Claimants Alleging Serious Diseases | As of December 31, the percentage of outstanding claims related to claimants alleging serious diseases (primarily mesothelioma and other malignancies) were as follows: 2019 2018 Total claims 22 % 22 % Pre-1964 claims in states without asbestos legislation 41 % 41 % |
Derivative and Other Financia_2
Derivative and Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Impact on Earnings from Derivatives Not Designated as Hedging Instruments | The following table sets forth the impact on earnings from derivatives not designated as hedges. Pre-tax amount of gain/ (loss) recognized in income on derivative Three Months Ended March 31, Affected line item in the Derivatives not designated as hedges 2020 2019 Statement of Operations Foreign exchange $ (1 ) $ (1 ) Net sales Foreign exchange 1 1 Cost of products sold Foreign exchange 6 (15 ) Foreign exchange $ 6 $ (15 ) |
Schedule of Derivative Instruments Included in Earnings | |
Accumulated Other Comprehensive Income (AOCI) and Earnings From Changes In Fair Value Related To Derivative Instruments | The following tables set forth financial information about the impact on other comprehensive income ("OCI"), accumulated other comprehensive income (“AOCI”) and earnings from changes in the fair value of derivative instruments. Amount of gain/(loss) recognized in OCI Three Months Ended March 31, Derivatives in cash flow hedges 2020 2019 Foreign exchange $ 1 $ (4 ) Interest Rate (1 ) — Commodities (39 ) 10 $ (39 ) $ 6 Amount of gain/ (loss) reclassified from AOCI into income Three Months Ended March 31, Affected line items in the Derivatives in cash flow hedges 2020 2019 Statement of Operations Foreign exchange $ (1 ) $ (1 ) Net sales Commodities 3 3 Net sales Foreign exchange (1 ) — Cost of products sold Commodities (10 ) (10 ) Cost of products sold (9 ) (8 ) Income before taxes 2 2 Provision for income taxes Total reclassified $ (7 ) $ (6 ) Net income The following tables set forth the impact on OCI from changes in the fair value of derivative instruments designated as net investment hedges. Amount of gain/(loss) recognized in OCI Three months ended March 31, Derivatives designated as net investment hedges 2020 2019 Foreign exchange $ 61 $ 26 |
Fair Value of Outstanding Derivative Instruments in the Consolidated Balance Sheets | The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 , respectively. The fair values of these financial instruments were reported under Level 2 of the fair value hierarchy. Balance Sheet classification March 31, December 31, 2019 Balance Sheet classification March 31, December 31, 2019 Derivatives designated as hedging instruments Foreign exchange contracts cash flow Other current assets $ 10 $ 10 Accrued liabilities $ 11 $ 15 Other non-current assets 1 1 Other non-current liabilities — 1 Foreign exchange contracts fair value Other current assets 15 1 Accrued liabilities 2 3 Commodities contracts cash flow Other current assets 17 11 Accrued liabilities 67 21 Other non-current assets 1 — Other non-current liabilities 4 — Interest rate contracts cash flow Other non-current assets — — Other non-current liabilities 3 1 Net investment hedge Other non-current assets 128 51 Other non-current liabilities — 2 $ 172 $ 74 $ 87 $ 43 Balance Sheet classification March 31, December 31, 2019 Balance Sheet classification March 31, December 31, 2019 Derivatives not designated as hedging instruments Foreign exchange contracts Other current assets $ 26 $ 7 Accrued liabilities $ 15 $ 5 Other non-current assets 2 2 Other non-current liabilities 1 1 $ 28 $ 9 $ 16 $ 6 Total derivatives $ 200 $ 83 $ 103 $ 49 |
Schedule of Offsetting Derivative Assets and Liabilities | In the table below, the aggregate fair values of the Company's derivative assets and liabilities are presented on both a gross and net basis, where appropriate. Gross amounts recognized in the Balance Sheet Gross amounts not offset in the Balance Sheet Net amount Balance at March 31, 2020 Derivative assets $200 $21 $179 Derivative liabilities 103 21 82 Balance at December 31, 2019 Derivative assets 83 16 67 Derivative liabilities 49 16 33 |
Notional Values of Outstanding Derivative Instruments in the Consolidated Balance Sheet | The aggregate U.S. dollar-equivalent notional values of outstanding derivative instruments in the Consolidated Balance Sheets at March 31, 2020 and December 31, 2019 were: March 31, 2020 December 31, 2019 Derivatives designated as cash flow hedges: Foreign exchange $ 807 $ 1,030 Commodities 356 334 Interest rate 200 200 Derivatives designated as fair value hedges: Foreign exchange 158 142 Derivatives designated as net investment hedges: Foreign exchange 1,075 1,075 Derivatives not designated as hedges: Foreign exchange 921 1,017 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The Company's outstanding debt was as follows: March 31, 2020 December 31, 2019 Principal Carrying Principal Carrying outstanding amount outstanding amount Short-term debt $ 100 $ 100 $ 75 $ 75 Long-term debt Senior secured borrowings: Revolving credit facilities 828 828 — — Term loan facilities U.S. dollar at LIBOR + 1.5% due 2024 1,093 1,086 1,100 1,094 Euro at EURIBOR + 1.5% due 2024 1 492 492 505 504 Senior notes and debentures: €650 at 4.0% due 2022 715 711 729 725 U. S. dollar at 4.50% due 2023 1,000 996 1,000 995 €335 at 2.25% due 2023 369 365 376 372 €500 at 0.75% due 2023 605 600 617 610 €600 at 2.625% due 2024 661 656 673 668 €600 at 3.375% due 2025 661 656 673 667 U.S. dollar at 4.25% due 2026 400 395 400 395 U.S. dollar at 4.75% due 2026 875 863 875 863 U.S. dollar at 7.375% due 2026 350 348 350 348 €500 at 2.875% due 2026 550 543 561 554 U.S. dollar at 7.50% due 2096 40 40 40 40 Other indebtedness in various currencies 130 130 45 45 Total long-term debt 8,769 8,709 7,944 7,880 Less current maturities (78 ) (78 ) (62 ) (62 ) Total long-term debt, less current maturities $ 8,691 $ 8,631 $ 7,882 $ 7,818 (1) €447 and €450 at March 31, 2020 and December 31, 2019 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table provides information about amounts reclassified from accumulated other comprehensive income. Three Months Ended Details about accumulated other March 31, Affected line item in the comprehensive income components 2020 2019 statement of operations Actuarial losses $ 24 $ 25 Other pension and postretirement Settlements 37 — Other pension and postretirement Prior service credit (6 ) (9 ) Other pension and postretirement Curtailments — (14 ) Other pension and postretirement 55 2 Income before taxes (4 ) (1 ) Provision for income taxes Total reclassified $ 51 $ 1 Net income |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Pension and Other Postretirement Benefits Costs | Three Months Ended March 31, Other postretirement benefits 2020 2019 Interest cost 1 1 Recognized prior service credit (6 ) (9 ) Recognized net loss 1 1 Net periodic benefit $ (4 ) $ (7 ) |
U.S. | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Pension and Other Postretirement Benefits Costs | The components of net periodic pension and other postretirement benefits costs for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, Pension benefits – U.S. plans 2020 2019 Service cost $ 5 $ 5 Interest cost 10 13 Expected return on plan assets (18 ) (18 ) Recognized net loss 14 14 Net periodic cost $ 11 $ 14 |
Pension Benefits - Non-U.S. Plans | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Pension and Other Postretirement Benefits Costs | Three Months Ended March 31, Pension benefits – Non-U.S. plans 2020 2019 Service cost $ 3 $ 4 Interest cost 14 19 Expected return on plan assets (31 ) (35 ) Curtailment gain — (14 ) Settlement loss 37 — Recognized net loss 9 10 Net periodic cost / (benefit) $ 32 $ (16 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides information about the changes in each component of accumulated other comprehensive income. Defined benefit plans Foreign currency translation Gains and losses on cash flow hedges Total Balance at January 1, 2019 $ (1,533 ) $ (1,817 ) $ (24 ) $ (3,374 ) Other comprehensive income before reclassifications 13 59 6 78 Amounts reclassified from accumulated other comprehensive income 1 — 6 7 Other comprehensive income 14 59 12 85 Balance at March 31, 2019 $ (1,519 ) $ (1,758 ) $ (12 ) $ (3,289 ) Balance at January 1, 2020 $ (1,449 ) $ (1,668 ) $ (14 ) $ (3,131 ) Other comprehensive income / (loss) before reclassifications 206 (316 ) (39 ) (149 ) Amounts reclassified from accumulated other comprehensive income 51 — 7 58 Other comprehensive income / (loss) 257 (316 ) (32 ) (91 ) Balance at March 31, 2020 $ (1,192 ) $ (1,984 ) $ (46 ) $ (3,222 ) See Note J and Note L for further details of amounts related to cash flow hedges and defined benefit plans. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Restricted Stock Transactions | A summary of restricted and deferred stock transactions during the three months ended March 31, 2020 is as follows: Number of shares Non-vested stock awards outstanding at January 1, 2020 2,102,654 Awarded: Time-vesting shares 68,824 Performance-based shares 161,426 Released: Time-vesting shares (82,427 ) Performance-based shares (163,458 ) Forfeitures: Time-vesting shares (47,700 ) Performance-based shares — Non-vested stock awards outstanding at March 31, 2020 2,039,319 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2020 2019 Revenue recognized over time $ 1,475 $ 1,365 Revenue recognized at a point in time 1,282 1,390 Total revenue $ 2,757 $ 2,755 |
Net Contract Assets and Liabilities | Net contract assets were as follows: March 31, 2020 December 31, 2019 Contract assets included in prepaid and other current assets $ 32 $ 30 Contract liabilities included in accrued liabilities (4 ) (5 ) Net contract asset $ 28 $ 25 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table summarizes the computations of basic and diluted earnings per share attributable to the Company. Three Months Ended March 31, 2020 2019 Net income attributable to Crown Holdings $ 88 $ 103 Weighted average shares outstanding: Basic 134.1 133.8 Dilutive restricted stock 0.9 0.6 Diluted 135.0 134.4 Basic earnings per share $ 0.66 $ 0.77 Diluted earnings per share $ 0.65 $ 0.77 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Information of Information about Operating Segments | The tables below present information about the Company's operating segments. External Sales Three Months Ended March 31, 2020 2019 Americas Beverage $ 871 $ 788 European Beverage 346 339 European Food 402 423 Asia Pacific 301 321 Transit Packaging 522 569 Total reportable segments 2,442 2,440 Non-reportable segments 315 315 Total $ 2,757 $ 2,755 The primary sources of revenue included in non-reportable segments are the Company's food can and closures business in North America, aerosol can businesses in North America and Europe, its promotional packaging business in Europe and its tooling and equipment operations in the U.S. and U.K. Intersegment Sales Three Months Ended March 31, 2020 2019 Americas Beverage $ 6 $ 4 European Beverage 1 1 European Food 21 18 Transit Packaging 4 3 Total reportable segments 32 26 Non-reportable segments 29 26 Total $ 61 $ 52 Intersegment sales primarily include sales of ends and components used to manufacture cans, such as printed and coated metal, as well as parts and equipment used in the manufacturing process. Segment Income Three Months Ended March 31, 2020 2019 Americas Beverage $ 134 $ 113 European Beverage 39 39 European Food 33 48 Asia Pacific 45 45 Transit Packaging 66 73 Total reportable segments $ 317 $ 318 |
Reconciliation of Segment Income | A reconciliation of segment income of reportable segments to income before income taxes is as follows: Three Months Ended March 31, 2020 2019 Segment income of reportable segments $ 317 $ 318 Segment income of non-reportable segments 19 36 Corporate and unallocated items (38 ) (39 ) Restructuring and other (7 ) (4 ) Amortization of intangibles (45 ) (47 ) Accelerated depreciation — (2 ) Other pension and postretirement (31 ) 18 Loss from early extinguishments of debt — (6 ) Interest expense (80 ) (98 ) Interest income 4 3 Foreign exchange 12 (1 ) Income before income taxes $ 151 $ 178 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 765 | $ 607 | ||
Restricted cash included in prepaid expenses and other current assets | 55 | 50 | ||
Restricted cash included in other non-current assets | 1 | 6 | ||
Total restricted cash | 56 | 56 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 821 | $ 663 | $ 348 | $ 659 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 1,164 | $ 1,162 |
Less: allowance for credit losses | (61) | (62) |
Net trade receivables | 1,103 | 1,100 |
Unbilled receivables | 245 | 226 |
Miscellaneous receivables | 206 | 202 |
Receivables, net | $ 1,554 | $ 1,528 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory, Gross [Abstract] | ||
Raw materials and supplies | $ 916 | $ 905 |
Work in process | 158 | 151 |
Finished goods | 594 | 570 |
Total inventories | $ 1,668 | $ 1,626 |
Intangible Assets Gross Carryin
Intangible Assets Gross Carrying Amount and Accumulated Amortization of Finite-lived Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 2,379 | $ 2,484 |
Accumulated amortization | (486) | (469) |
Net | 1,893 | 2,015 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,554 | 1,621 |
Accumulated amortization | (347) | (331) |
Net | 1,207 | 1,290 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 535 | 541 |
Accumulated amortization | (45) | (40) |
Net | 490 | 501 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 156 | 158 |
Accumulated amortization | (46) | (41) |
Net | 110 | 117 |
Long term supply contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 120 | 150 |
Accumulated amortization | (39) | (48) |
Net | 81 | 102 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14 | 14 |
Accumulated amortization | (9) | (9) |
Net | $ 5 | $ 5 |
Intangible Assets Narrative (De
Intangible Assets Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 45 | $ 47 |
Restructuring and Other - Restr
Restructuring and Other - Restructuring Charges by Action/Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Abstract] | ||
Asset impairments and sales | $ 1 | $ 4 |
Restructuring | 3 | 9 |
Other Restructuring Costs | 3 | (9) |
Restructuring and other | $ 7 | $ 4 |
Restructuring and Other - Narra
Restructuring and Other - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 1 | $ 4 |
Restructuring accrual | 15 | |
Asia Pacific | ||
Restructuring Cost and Reserve [Line Items] | ||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 6 | |
Headcount Reductions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 8 |
Asbestos-Related Liabilities -
Asbestos-Related Liabilities - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)inactive_claim | Dec. 31, 2019 | |
Liability for Asbestos and Environmental Claims [Abstract] | ||
Holding period for insulation operations (in days) | 90 days | |
Liability for asbestos and environmental claims net claims paid | $ 1 | |
Inactive claims (in claims) | inactive_claim | 19,000 | |
Accrued asbestos claims and related legal costs | $ 270 | |
Unasserted claims | $ 227 | |
Percentage of claims that do not specify damages | 81.00% |
Asbestos-Related Liabilities _2
Asbestos-Related Liabilities - Summary of Claims Activity (Details) | 3 Months Ended |
Mar. 31, 2020Claim | |
Loss Contingency Accrual [Roll Forward] | |
Beginning claims | 56,000 |
New claims | 500 |
Settlements or dismissals | (500) |
Ending claims | 56,000 |
Asbestos-Related Liabilities _3
Asbestos-Related Liabilities - Summary of Outstanding Claims by Year of Exposure and State Filed (Details) - Claim | Mar. 31, 2020 | Dec. 31, 2019 |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims outstanding | 56,000 | 56,000 |
Asbestos After 1964 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims outstanding | 16,500 | |
Texas | Asbestos Before Or During 1964 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims outstanding | 13,000 | |
Pennsylvania | Asbestos Before Or During 1964 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims outstanding | 1,500 | |
Other states that have enacted asbestos legislation | Asbestos Before Or During 1964 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims outstanding | 6,000 | |
Other states | Asbestos Before Or During 1964 | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims outstanding | 19,000 |
Asbestos-Related Liabilities _4
Asbestos-Related Liabilities - Summary of Percentage of Outstanding Claims Related to Claimants Alleging Serious Diseases (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims alleging serious diseases | 22.00% | 22.00% |
Pre-1964 claims in states without asbestos legislation | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Claims alleging serious diseases | 41.00% | 41.00% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Mar. 31, 2017 |
PRP site | ||
Commitments And Contingent Liabilities [Line Items] | ||
Estimated future remediation costs | $ 8 | |
Non- PRP sites | ||
Commitments And Contingent Liabilities [Line Items] | ||
Estimated future remediation costs | 6 | |
Penalty Notification Alleging Misclassification of Importation of Certain Goods into U.S. During 2004-2009 | U.S. Customs and Border Protection (CBP) | ||
Commitments And Contingent Liabilities [Line Items] | ||
Assessed penalty | $ 6 | $ 18 |
Derivative and Other Financia_3
Derivative and Other Financial Instruments - Narrative (Details) € in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2020EUR (€) | Mar. 31, 2020USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Objective for using derivative instruments | The Company’s objective in managing exposure to market and interest rate risk is to limit the impact on earnings and cash flow. | ||||
Loss expected to be reclassified to earnings | $ 51,000,000 | ||||
Loss, net of tax, expected to be reclassified to earnings | 41,000,000 | ||||
Reclassification of anticipated transactions that were no longer considered probable | $ 0 | $ 0 | |||
Minimum | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, remaining maturity range | 1 month | ||||
Maximum | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, remaining maturity range | 30 months | ||||
Derivatives not designated as hedges | Foreign exchange | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | $ 1,017,000,000 | $ 921,000,000 | |||
Derivatives in cash flow hedges | Interest Rate Swap | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain/(loss) recognized in AOCI (effective portion) | $ (1,000,000) | 0 | |||
Derivative, Notional Amount | 200,000,000 | 200,000,000 | |||
Derivatives in cash flow hedges | Commodities | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | 334,000,000 | 356,000,000 | |||
Derivatives in cash flow hedges | Foreign exchange | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | 1,030,000,000 | 807,000,000 | |||
Derivatives in cash flow hedges | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain/(loss) recognized in AOCI (effective portion) | (39,000,000) | 6,000,000 | |||
Derivatives in cash flow hedges | Designated as Hedging Instrument | Commodities | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain/(loss) recognized in AOCI (effective portion) | (39,000,000) | 10,000,000 | |||
Derivatives in cash flow hedges | Designated as Hedging Instrument | Foreign exchange | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain/(loss) recognized in AOCI (effective portion) | 1,000,000 | (4,000,000) | |||
Derivatives in fair value hedges | Foreign exchange | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | 142,000,000 | 158,000,000 | |||
Derivatives in fair value hedges | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cumulative amount of fair value hedging adjustment included in the carrying about of the hedged assets | 2,000,000 | 13,000,000 | |||
Derivatives in fair value hedges | Designated as Hedging Instrument | Foreign exchange | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Losses from foreign exchange contracts designated as fair value hedges (less than) | 1,000,000 | 1,000,000 | |||
Derivatives designated as net investment hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Carrying amount of hedged net investment | € 1,253 | 1,138,000,000 | |||
Derivatives designated as net investment hedges | Accumulated Other Comprehensive Income | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loss on net investment hedge settlements | 6,000,000 | 32,000,000 | |||
Loss on net investment hedge settlements, net of tax | 17,000,000 | (9,000,000) | |||
Derivatives designated as net investment hedges | Foreign exchange | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | $ 1,075,000,000 | $ 1,075,000,000 | |||
Derivatives designated as net investment hedges | Designated as Hedging Instrument | Foreign exchange | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of gain/(loss) recognized in AOCI (effective portion) | 61,000,000 | 26,000,000 | |||
Derivatives designated as net investment hedges | Other Comprehensive Income | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loss on net investment hedge settlements | (26,000,000) | (28,000,000) | |||
Loss on net investment hedge settlements, net of tax | $ 26,000,000 | $ 28,000,000 |
Derivative and Other Financia_4
Derivative and Other Financial Instruments - Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net sales | $ 2,757 | $ 2,755 |
Cost of products sold | 2,220 | 2,210 |
Income Tax Expense (Benefit) | (38) | (48) |
Net income | 114 | 131 |
Derivatives in cash flow hedges | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) recognized in AOCI (effective portion) | (1) | 0 |
Designated as Hedging Instrument | Derivatives in cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) recognized in AOCI (effective portion) | (39) | 6 |
Designated as Hedging Instrument | Derivatives in cash flow hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) recognized in AOCI (effective portion) | 1 | (4) |
Designated as Hedging Instrument | Derivatives in cash flow hedges | Commodities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) recognized in AOCI (effective portion) | (39) | 10 |
Reclassification out of Accumulated Other Comprehensive Income | Designated as Hedging Instrument | Derivatives in cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain/(loss) reclassified from AOCI into earnings, before tax | (9) | (8) |
Income Tax Expense (Benefit) | 2 | 2 |
Net income | (7) | (6) |
Reclassification out of Accumulated Other Comprehensive Income | Designated as Hedging Instrument | Derivatives in cash flow hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net sales | (1) | (1) |
Cost of products sold | (1) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Designated as Hedging Instrument | Derivatives in cash flow hedges | Commodities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net sales | 3 | 3 |
Cost of products sold | $ (10) | $ (10) |
Derivative and Other Financia_5
Derivative and Other Financial Instruments - Fair Value Hedges and Contracts Not Designated as Hedges (Details) - Derivatives not designated as hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net, pretax | $ 6 | $ (15) |
Net sales | Foreign exchange | ||
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net, pretax | (1) | (1) |
Cost of products sold | Foreign exchange | ||
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net, pretax | 1 | 1 |
Foreign exchange | Foreign exchange | ||
Derivative [Line Items] | ||
Gain (loss) on derivative instruments, net, pretax | $ 6 | $ (15) |
Derivative and Other Financia_6
Derivative and Other Financial Instruments - Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivatives designated as net investment hedges | Designated as Hedging Instrument | Foreign exchange | ||
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in AOCI | $ 61 | $ 26 |
Derivative and Other Financia_7
Derivative and Other Financial Instruments - Fair Values of Derivative Instruments and Valuation Hierarchy (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative assets | ||
Total | $ 200 | $ 83 |
Derivative liabilities | ||
Total | 103 | 49 |
Fair Value, Inputs, Level 2 | ||
Derivative assets | ||
Total | 200 | 83 |
Derivative liabilities | ||
Total | 103 | 49 |
Fair Value, Inputs, Level 2 | Other current assets | Foreign exchange | Derivatives not designated as hedges | ||
Derivative assets | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 26 | 7 |
Fair Value, Inputs, Level 2 | Accrued liabilities | Foreign exchange | Derivatives not designated as hedges | ||
Derivative assets | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 15 | 5 |
Fair Value, Inputs, Level 2 | Other non-current assets | Foreign exchange | Derivatives not designated as hedges | ||
Derivative assets | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 2 | 2 |
Fair Value, Inputs, Level 2 | Other non-current liabilities | Foreign exchange | Derivatives not designated as hedges | ||
Derivative assets | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1 | 1 |
Fair Value, Inputs, Level 2 | Other assets | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 172 | 74 |
Fair Value, Inputs, Level 2 | Other assets | Derivatives not designated as hedges | ||
Derivative assets | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 28 | 9 |
Fair Value, Inputs, Level 2 | Other liabilities | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 87 | 43 |
Fair Value, Inputs, Level 2 | Other liabilities | Derivatives not designated as hedges | ||
Derivative assets | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 16 | 6 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other current assets | Foreign exchange | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 10 | 10 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other current assets | Commodities | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges, Commodities | 17 | 11 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Accrued liabilities | Foreign exchange | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 11 | 15 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Accrued liabilities | Commodities | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges, Commodities | 67 | 21 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other non-current assets | Foreign exchange | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 1 | 1 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other non-current assets | Commodities | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges, Commodities | 1 | 0 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other non-current assets | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 0 | 0 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other non-current liabilities | Foreign exchange | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 0 | 1 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other non-current liabilities | Commodities | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges, Commodities | 4 | 0 |
Cash Flow Hedging [Member] | Fair Value, Inputs, Level 2 | Other non-current liabilities | Interest Rate Contract [Member] | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 3 | 1 |
Derivatives in fair value hedges | Accrued liabilities | Designated as Hedging Instrument | ||
Derivative liabilities | ||
Derivatives designated as hedges, Foreign exchange | 90 | 83 |
Derivatives in fair value hedges | Fair Value, Inputs, Level 2 | Other current assets | Foreign exchange | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 15 | 1 |
Derivatives in fair value hedges | Fair Value, Inputs, Level 2 | Accrued liabilities | Foreign exchange | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 2 | 3 |
Derivatives designated as net investment hedges | Fair Value, Inputs, Level 2 | Other non-current assets | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | 128 | 51 |
Derivatives designated as net investment hedges | Fair Value, Inputs, Level 2 | Other non-current liabilities | Designated as Hedging Instrument | ||
Derivative assets | ||
Derivatives designated as hedges | $ 0 | $ 2 |
Derivative and Other Financia_8
Derivative and Other Financial Instruments - Fair Value Hedge Carrying Amounts (Details) - Derivatives in fair value hedges - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Cumulative amount of fair value hedging adjustment included in the carrying about of the hedged assets | $ 13 | $ 2 |
Receivables, net | ||
Derivative [Line Items] | ||
Carrying amount of hedged assets | 11 | 12 |
Accrued liabilities | ||
Derivative [Line Items] | ||
Accounts payable | $ (90) | $ (83) |
Derivative and Other Financia_9
Derivative and Other Financial Instruments - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts Recognized in the Balance Sheet, Derivative Assets | $ 200 | $ 83 |
Gross Amounts Not Offset in the Balance Sheet, Derivative Assets | 21 | 16 |
Net Amount, Derivative Assets | 179 | 67 |
Gross Amounts Recognized in the Balance Sheet, Derivative Liabilities | 103 | 49 |
Gross Amounts Not Offset in the Balance Sheet, Derivative Liabilities | 21 | 16 |
Net Amount, Derivative Liabilities | $ 82 | $ 33 |
Derivative and Other Financi_10
Derivative and Other Financial Instruments - Notional Values of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Foreign exchange | Derivatives not designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 921 | $ 1,017 |
Foreign exchange | Derivatives in cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 807 | 1,030 |
Foreign exchange | Derivatives in fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 158 | 142 |
Foreign exchange | Derivatives designated as net investment hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,075 | 1,075 |
Commodities | Derivatives in cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 356 | 334 |
Interest Rate Swap | Derivatives in cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 200 | $ 200 |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 100 | $ 75 | ||
Principal outstanding | ||||
Total long-term debt | 8,769 | 7,944 | ||
Less: current maturities | (78) | (62) | ||
Total long-term debt, less current maturities | 8,691 | 7,882 | ||
Carrying amount | ||||
Total long-term debt | 8,709 | 7,880 | ||
Less: current maturities | (78) | (62) | ||
Total long-term debt, less current maturities | 8,631 | 7,818 | ||
Senior Secured Borrowings | U.S. Dollar at LIBOR Plus One Point Five Due Two Thousand Twenty Four [Member] | ||||
Principal outstanding | ||||
Total long-term debt | 1,093 | 1,100 | ||
Carrying amount | ||||
Total long-term debt | 1,086 | 1,094 | ||
Senior Secured Borrowings | Euro at EURIBOR Plus One Point Five Percentage Due Two Thousand and Twenty Four [Member] | ||||
Principal outstanding | ||||
Total long-term debt | 492 | 505 | ||
Carrying amount | ||||
Total long-term debt | 492 | 504 | ||
Debt, face amount | € | € 447,000,000 | € 450,000,000 | ||
Senior Notes and Debentures | €650 at 4.0% due 2022 | ||||
Principal outstanding | ||||
Total long-term debt | 715 | 729 | ||
Carrying amount | ||||
Total long-term debt | $ 711 | 725 | ||
Debt, face amount | € | € 650,000,000 | |||
Debt instrument stated percentage | 4.00% | 4.00% | ||
Senior Notes and Debentures | U. S. dollar at 4.50% due 2023 | ||||
Principal outstanding | ||||
Total long-term debt | $ 1,000 | 1,000 | ||
Carrying amount | ||||
Total long-term debt | $ 996 | 995 | ||
Debt instrument stated percentage | 4.50% | 4.50% | ||
Senior Notes and Debentures | €335 at 2.250% due 2023 | ||||
Principal outstanding | ||||
Total long-term debt | $ 369 | 376 | ||
Carrying amount | ||||
Total long-term debt | $ 365 | 372 | ||
Debt, face amount | € | € 335,000,000 | |||
Debt instrument stated percentage | 2.25% | 2.25% | ||
Senior Notes and Debentures | Euro .75% due 2023 [Member] | ||||
Principal outstanding | ||||
Total long-term debt | $ 605 | 617 | ||
Carrying amount | ||||
Total long-term debt | $ 600 | 610 | ||
Debt, face amount | € | € 500,000,000 | |||
Debt instrument stated percentage | 0.75% | 0.75% | ||
Senior Notes and Debentures | €600 at 2.625% due 2024 | ||||
Principal outstanding | ||||
Total long-term debt | $ 661 | 673 | ||
Carrying amount | ||||
Total long-term debt | $ 656 | 668 | ||
Debt, face amount | € | € 600,000,000 | |||
Debt instrument stated percentage | 2.625% | 2.625% | ||
Senior Notes and Debentures | €600 at 3.375% due 2025 | ||||
Principal outstanding | ||||
Total long-term debt | $ 661 | 673 | ||
Carrying amount | ||||
Total long-term debt | $ 656 | 667 | ||
Debt, face amount | € | € 600,000,000 | |||
Debt instrument stated percentage | 3.375% | 3.375% | ||
Senior Notes and Debentures | U.S. dollar at 4.25% due 2026 | ||||
Principal outstanding | ||||
Total long-term debt | $ 400 | 400 | ||
Carrying amount | ||||
Total long-term debt | $ 395 | 395 | ||
Debt instrument stated percentage | 4.25% | 4.25% | ||
Senior Notes and Debentures | U.S. dollar at 4.75% due 2026 | ||||
Principal outstanding | ||||
Total long-term debt | $ 875 | 875 | ||
Carrying amount | ||||
Total long-term debt | $ 863 | 863 | ||
Debt instrument stated percentage | 4.75% | 4.75% | ||
Senior Notes and Debentures | U.S. dollar at 7.375% due 2026 | ||||
Principal outstanding | ||||
Total long-term debt | $ 350 | 350 | ||
Carrying amount | ||||
Total long-term debt | $ 348 | 348 | ||
Debt instrument stated percentage | 7.375% | 7.375% | ||
Senior Notes and Debentures | €500 at 2.875% due 2026 | ||||
Principal outstanding | ||||
Total long-term debt | $ 550 | 561 | ||
Carrying amount | ||||
Total long-term debt | $ 543 | 554 | ||
Debt, face amount | € | € 500,000,000 | |||
Debt instrument stated percentage | 2.875% | 2.875% | ||
Senior Notes and Debentures | U.S. dollar at 7.50% due 2096 | ||||
Principal outstanding | ||||
Total long-term debt | $ 40 | 40 | ||
Carrying amount | ||||
Total long-term debt | $ 40 | 40 | ||
Debt instrument stated percentage | 7.50% | 7.50% | ||
Other Indebtedness, Fixed Rate | ||||
Principal outstanding | ||||
Total long-term debt | $ 130 | 45 | ||
Carrying amount | ||||
Total long-term debt | 130 | 45 | ||
Revolving Credit Facility | Line of Credit | ||||
Principal outstanding | ||||
Total long-term debt | 828 | 0 | ||
Carrying amount | ||||
Total long-term debt | $ 828 | $ 0 | ||
LIBOR | Senior Secured Borrowings | U.S. Dollar at LIBOR Plus One Point Five Due Two Thousand Twenty Four [Member] | ||||
Carrying amount | ||||
Basis spread on variable rate (as a percent) | 1.50% | |||
EURIBOR | Senior Secured Borrowings | Euro at EURIBOR Plus One Point Five Percentage Due Two Thousand and Twenty Four [Member] | ||||
Carrying amount | ||||
Basis spread on variable rate (as a percent) | 1.50% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | Mar. 31, 2020EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) |
Fair Value, Inputs, Level 2 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ | $ 8,792 | $ 8,410 | ||
Senior Notes | Euro .75% due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, face amount | € 500,000,000 | |||
Debt instrument stated percentage | 0.75% | 0.75% | ||
Senior Secured Borrowings | Euro at EURIBOR Plus One Point Five Percentage Due Two Thousand and Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, face amount | € 447,000,000 | € 450,000,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 1 | $ 1 |
Recognized prior service credit | (6) | (9) |
Recognized net loss | 1 | 1 |
Net periodic cost (benefit) | (4) | (7) |
U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5 | 5 |
Interest cost | 10 | 13 |
Expected return on plan assets | (18) | (18) |
Recognized net loss | 14 | 14 |
Net periodic cost (benefit) | 11 | 14 |
Pension Benefits - Non-U.S. Plans | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 3 | 4 |
Interest cost | 14 | 19 |
Expected return on plan assets | (31) | (35) |
Pension settlements and curtailments | 0 | (14) |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 37 | 0 |
Recognized net loss | 9 | 10 |
Net periodic cost (benefit) | $ 32 | $ (16) |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits Amounts reclassified from accumulated other comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income before income taxes | $ 151 | $ 178 |
Income Tax Expense (Benefit) | (38) | (48) |
Net income | 114 | 131 |
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit plans | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Actuarial losses | 24 | 25 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 37 | |
Prior service credit | (6) | (9) |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | (14) |
Income before income taxes | 55 | 2 |
Income Tax Expense (Benefit) | (4) | (1) |
Net income | $ 51 | $ 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ (3,131) | $ (3,374) |
Other comprehensive income / (loss) before reclassifications | (149) | 78 |
Amounts reclassified from accumulated other comprehensive income | 58 | 7 |
Other comprehensive income | (91) | 85 |
Balance at end of period | (3,222) | (3,289) |
Defined benefit plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (1,449) | (1,533) |
Other comprehensive income / (loss) before reclassifications | 206 | 13 |
Amounts reclassified from accumulated other comprehensive income | 51 | 1 |
Other comprehensive income | 257 | 14 |
Balance at end of period | (1,192) | (1,519) |
Foreign currency translation | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (1,668) | (1,817) |
Other comprehensive income / (loss) before reclassifications | (316) | 59 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other comprehensive income | (316) | 59 |
Balance at end of period | (1,984) | (1,758) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (14) | (24) |
Other comprehensive income / (loss) before reclassifications | (39) | 6 |
Amounts reclassified from accumulated other comprehensive income | 7 | 6 |
Other comprehensive income | (32) | 12 |
Balance at end of period | $ (46) | $ (12) |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Stock Transactions) (Details) | 3 Months Ended |
Mar. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested stock awards outstanding at beginning of period (in shares) | 2,102,654 |
Nonvested stock awards outstanding at end of period (in shares) | 2,039,319 |
Time-vesting shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Awarded (in shares) | 68,824 |
Released (in shares) | (82,427) |
Forfeitures (in shares) | (47,700) |
Performance-based shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Awarded (in shares) | 161,426 |
Released (in shares) | (163,458) |
Forfeitures (in shares) | 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ | $ 70 |
Cost expected to be recognized, weighted average period (in years) | 2 years 9 months 29 days |
Performance-Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for shares awarded (in years) | 3 years |
Weighted average grant-date fair value (in dollars per share) | $ / shares | $ 72.47 |
Weighted average stock price volatility | 22.00% |
Expected term (in years) | 3 years |
Risk free interest rate | 1.60% |
Time Vested Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant-date fair value (in dollars per share) | $ / shares | $ 70.31 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate market value of shares released and issued | $ | $ 12 |
Minimum | Time Vested Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for shares awarded (in years) | 3 years |
Maximum | Time Vested Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period for shares awarded (in years) | 5 years |
Performance Metric, Market Conditions, Total shareholder Returns | Performance-Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric, term of award period | 3 years |
Cliff vesting period | 3 years |
Level of market performance achieved based on shares awarded, minimum (as a percent) | 0.00% |
Level of market performance achieved based on shares awarded, maximum (as a percent) | 200.00% |
Performance Metric, Average Return on Invested Capital | Performance-Based Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric, term of award period | 3 years |
Cliff vesting period | 3 years |
Level of market performance achieved based on shares awarded, minimum (as a percent) | 0.00% |
Level of market performance achieved based on shares awarded, maximum (as a percent) | 200.00% |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 2,757 | $ 2,755 |
Over time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,475 | 1,365 |
Point in time | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 1,282 | $ 1,390 |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets included in prepaid and other current assets | $ 32 | $ 30 |
Contract liabilities included in accrued liabilities | (4) | (5) |
Net contract asset | 28 | $ 25 |
Revenue recognized related to contract liabilities | $ 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Crown Holdings | $ 88 | $ 103 |
Weighted average shares outstanding: | ||
Basic (in shares) | 134.1 | 133.8 |
Add: dilutive stock options and restricted stock (in shares) | 0.9 | 0.6 |
Diluted (in shares) | 135 | 134.4 |
Basic earnings per share (in usd per share) | $ 0.66 | $ 0.77 |
Diluted earnings per share (in usd per share) | $ 0.65 | $ 0.77 |
Value of shares excluded from the computation of diluted earnings per share | 0.4 | 0.2 |
Segment Information - Informati
Segment Information - Information about Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Income from operations | $ 246 | $ 262 |
Net sales | 2,757 | 2,755 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Income from operations | 317 | 318 |
Net sales | 2,442 | 2,440 |
Operating Segments | Americas Beverage | ||
Segment Reporting Information [Line Items] | ||
Income from operations | 134 | 113 |
Net sales | 871 | 788 |
Operating Segments | European Beverage | ||
Segment Reporting Information [Line Items] | ||
Income from operations | 39 | 39 |
Net sales | 346 | 339 |
Operating Segments | European Food | ||
Segment Reporting Information [Line Items] | ||
Income from operations | 33 | 48 |
Net sales | 402 | 423 |
Operating Segments | Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Income from operations | 45 | 45 |
Net sales | 301 | 321 |
Operating Segments | Transit Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Income from operations | 66 | 73 |
Net sales | 522 | 569 |
Segment Reconciling Items | Non-reportable segments | ||
Segment Reporting Information [Line Items] | ||
Income from operations | 19 | 36 |
Net sales | 315 | 315 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net sales | 61 | 52 |
Intersegment Eliminations | Americas Beverage | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6 | 4 |
Intersegment Eliminations | European Beverage | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1 | 1 |
Intersegment Eliminations | European Food | ||
Segment Reporting Information [Line Items] | ||
Net sales | 21 | 18 |
Intersegment Eliminations | Transit Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 4 | 3 |
Intersegment Eliminations | Non-reportable segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 29 | 26 |
Intersegment Eliminations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 32 | $ 26 |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Intercompany profit eliminated | $ 1 | $ 1 |
Non-reportable segments | ||
Segment Reporting Information [Line Items] | ||
Segment description | The primary sources of revenue included in non-reportable segments are the Company's food can and closures business in North America, aerosol can businesses in North America and Europe, its promotional packaging business in Europe and its tooling and equipment operations in the U.S. and U.K. |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | $ 246 | $ 262 |
Restructuring and other | (7) | (4) |
Amortization of intangibles | (45) | (47) |
Other pension and postretirement | (31) | 18 |
Interest expense | (80) | (98) |
Interest income | 4 | 3 |
Foreign exchange | 12 | (1) |
Income before income taxes | 151 | 178 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 317 | 318 |
Operating Segments | Americas Beverage | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 134 | 113 |
Operating Segments | European Beverage | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 39 | 39 |
Operating Segments | European Food | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 33 | 48 |
Operating Segments | Asia Pacific | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 45 | 45 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Restructuring and other | (7) | (4) |
Amortization of intangibles | (45) | (47) |
Restructuring and Related Cost, Accelerated Depreciation | 0 | (2) |
Other pension and postretirement | (31) | 18 |
Loss from early extinguishments of debt | 0 | (6) |
Interest expense | (80) | (98) |
Interest income | 4 | 3 |
Foreign exchange | 12 | (1) |
Segment Reconciling Items | Non-reportable segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 19 | 36 |
Corporate, Non-Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Corporate and unallocated items | $ (38) | $ (39) |