Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SLGN | |
Entity Registrant Name | Silgan Holdings Inc | |
Entity Central Index Key | 849,869 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 110,599,464 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 174,540 | $ 53,533 | $ 350,621 |
Trade accounts receivable, net | 578,584 | 454,637 | 331,668 |
Inventories | 743,286 | 721,290 | 712,854 |
Prepaid expenses and other current assets | 72,127 | 62,462 | 48,356 |
Total current assets | 1,568,537 | 1,291,922 | 1,443,499 |
Property, plant and equipment, net | 1,502,880 | 1,489,872 | 1,166,609 |
Goodwill | 1,183,678 | 1,171,454 | 607,004 |
Other intangible assets, net | 413,240 | 417,088 | 177,907 |
Other assets, net | 284,152 | 275,113 | 254,987 |
Assets, Total | 4,952,487 | 4,645,449 | 3,650,006 |
Current liabilities: | |||
Revolving loans and current portion of long-term debt | 758,652 | 108,789 | 580,247 |
Trade accounts payable | 552,707 | 659,629 | 390,288 |
Accrued payroll and related costs | 66,764 | 66,257 | 42,943 |
Accrued liabilities | 81,173 | 123,602 | 79,514 |
Total current liabilities | 1,459,296 | 958,277 | 1,092,992 |
Long-term debt | 2,174,709 | 2,438,502 | 1,591,764 |
Deferred income taxes | 268,023 | 262,394 | 298,410 |
Other liabilities | 225,668 | 220,211 | 176,514 |
Stockholders’ equity: | |||
Common stock | 1,751 | 1,751 | 876 |
Paid-in capital | 265,022 | 262,201 | 252,128 |
Retained earnings | 1,853,351 | 1,809,845 | 1,571,711 |
Accumulated other comprehensive loss | (174,707) | (188,973) | (216,110) |
Treasury stock | (1,120,626) | (1,118,759) | (1,118,279) |
Total stockholders’ equity | 824,791 | 766,065 | 490,326 |
Liabilities and Equity, Total | $ 4,952,487 | $ 4,645,449 | $ 3,650,006 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | |||
Net sales | $ 1,012,280 | $ 805,407 | |
Cost of goods sold | 852,246 | 687,427 | |
Gross profit | 160,034 | 117,980 | |
Selling, general and administrative expenses | 76,747 | 68,659 | |
Rationalization charges | 703 | 885 | |
Other pension and postretirement income | (9,598) | (8,326) | |
Income before interest and income taxes | 92,182 | 56,762 | |
Interest and other debt expense before loss on early extinguishment of debt | 30,481 | 20,418 | |
Loss on early extinguishment of debt | 0 | 2,677 | |
Interest and other debt expense | 30,481 | 23,095 | |
Income before income taxes | 61,701 | 33,667 | |
Provision for income taxes | 15,980 | 10,435 | |
Net income | $ 45,721 | $ 23,232 | |
Earnings per share | |||
Basic net income per share (usd per share) | $ 0.41 | $ 0.21 | [1] |
Diluted net income per share (usd per share) | 0.41 | 0.21 | [1] |
Dividends per share (usd per share) | $ 0.10 | $ 0.09 | [1] |
Weighted average number of shares | |||
Basic (in shares) | 110,492 | 110,231 | [1] |
Effect of dilutive securities (in shares) | 1,066 | 984 | [1] |
Diluted (in shares) | 111,558 | 111,215 | [1] |
[1] | Per share and share amounts for 2017 have been retroactively adjusted for the two-for-one stock split discussed in Note 1. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Income (Parenthetical) | 3 Months Ended |
Mar. 31, 2017 | |
Income Statement [Abstract] | |
Stock split ratio (in shares) | 2 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 45,721 | $ 23,232 |
Other comprehensive income, net of tax: | ||
Changes in net prior service credit and actuarial losses | 856 | 629 |
Change in fair value of derivatives | (390) | (340) |
Foreign currency translation | 13,800 | 7,457 |
Other comprehensive income | 14,266 | 7,746 |
Comprehensive income | $ 59,987 | $ 30,978 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 45,721 | $ 23,232 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 48,931 | 37,572 |
Rationalization charges | 703 | 885 |
Stock compensation expense | 3,700 | 3,279 |
Loss on early extinguishment of debt | 0 | 2,677 |
Other changes that provided (used) cash: | ||
Trade accounts receivable, net | (49,615) | (41,452) |
Inventories | (74,451) | (107,446) |
Trade accounts payable | (16,077) | (36,806) |
Accrued liabilities | (41,215) | (17,583) |
Other, net | (7,816) | (5,287) |
Net cash used in operating activities | (90,119) | (140,929) |
Cash flows provided by (used in) investing activities: | ||
Capital expenditures | (49,196) | (38,893) |
Other, net | 800 | 386 |
Net cash used in investing activities | (48,396) | (38,507) |
Cash flows provided by (used in) financing activities: | ||
Borrowings under revolving loans | 444,595 | 655,633 |
Repayments under revolving loans | (79,821) | (508,865) |
Proceeds from issuance of long-term debt | 0 | 989,200 |
Repayments of long-term debt | (4,638) | (521,666) |
Changes in outstanding checks - principally vendors | (87,795) | (78,946) |
Dividends paid on common stock | (11,333) | (10,115) |
Debt issuance costs | 0 | (16,643) |
Repurchase of common stock under stock plan | (2,746) | (3,231) |
Net cash provided by financing activities | 258,262 | 505,367 |
Effect of exchange rate changes on cash and cash equivalents | 1,260 | 0 |
Cash and cash equivalents: | ||
Net increase | 121,007 | 325,931 |
Balance at beginning of year | 53,533 | 24,690 |
Balance at end of period | 174,540 | 350,621 |
Interest paid, net | 39,953 | 12,234 |
Income taxes paid, net | $ 21,835 | $ 8,065 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Dec. 31, 2016 | $ 469,415 | $ 876 | $ 249,763 | $ 1,558,594 | $ (223,856) | $ (1,115,962) |
Beginning Balance (in shares) at Dec. 31, 2016 | 55,051 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 23,232 | 23,232 | ||||
Other comprehensive income | 7,746 | 7,746 | ||||
Dividends declared on common stock | (10,115) | (10,115) | ||||
Stock compensation expense | 3,279 | 3,279 | ||||
Net issuance of treasury stock for vested restricted stock units (in shares) | 91 | |||||
Net issuance of treasury stock for vested restricted stock units | (3,231) | (914) | (2,317) | |||
Ending Balance at Mar. 31, 2017 | 490,326 | $ 876 | 252,128 | 1,571,711 | (216,110) | (1,118,279) |
Ending Balance (in shares) at Mar. 31, 2017 | 55,142 | |||||
Beginning Balance at Dec. 31, 2017 | 766,065 | $ 1,751 | 262,201 | 1,809,845 | (188,973) | (1,118,759) |
Beginning Balance (in shares) at Dec. 31, 2017 | 110,385 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of accounting standards update for revenue recognition | 9,061 | 9,061 | ||||
Net income | 45,721 | 45,721 | ||||
Other comprehensive income | 14,266 | 14,266 | ||||
Dividends declared on common stock | (11,276) | (11,276) | ||||
Stock compensation expense | 3,700 | 3,700 | ||||
Net issuance of treasury stock for vested restricted stock units (in shares) | 184 | |||||
Net issuance of treasury stock for vested restricted stock units | (2,746) | (879) | (1,867) | |||
Ending Balance at Mar. 31, 2018 | $ 824,791 | $ 1,751 | $ 265,022 | $ 1,853,351 | $ (174,707) | $ (1,120,626) |
Ending Balance (in shares) at Mar. 31, 2018 | 110,569 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation . The accompanying unaudited condensed consolidated financial statements of Silgan Holdings Inc., or Silgan, have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. The results of operations for any interim period are not necessarily indicative of the results of operations for the full year. The Condensed Consolidated Balance Sheet at December 31, 2017 has been derived from our audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. Deferred income taxes as of March 31, 2017 previously included in other liabilities have been presented as a separate line item on the Condensed Consolidated Balance Sheet to conform to current period presentation. You should read the accompanying condensed consolidated financial statements in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. Stock Split . On May 3, 2017, our Board of Directors declared a two -for-one stock split of our issued common stock. The stock split was effected on May 26, 2017 in the form of a stock dividend. Stockholders of record at the close of business on May 15, 2017 were issued one additional share of common stock for each share of common stock owned on that date. Information pertaining to per share and share amounts have been retroactively adjusted in the Condensed Consolidated Statement of Income for the three months ended March 31, 2017. Recently Adopted Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, that amends the guidance for revenue recognition. This amendment contains principles that require an entity to recognize revenue to depict the transfer of promised goods and services to customers at an amount that an entity expects to be entitled to in exchange for those promised goods or services. We adopted this amendment on January 1, 2018, using the modified retrospective method. Results for the reporting period beginning January 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted. The adoption of this amendment required us to accelerate the recognition of revenue prior to shipment to certain customers in cases where we produce promised goods with no alternative use to us and for which we have an enforceable right of payment for production completed. As a result of the adoption of this amendment, we increased trade accounts receivable, net by $69.4 million , decreased inventories by $56.6 million , increased accrued liabilities by $0.9 million and increased long-term deferred income tax liabilities by $2.8 million , resulting in a net increase to retained earnings of $9.1 million , all as of January 1, 2018. The adoption of this amendment did not have a material impact on our financial position, results of operations or cash flows. See Note 2 for further information. In August 2016, the FASB issued an ASU that provides guidance for cash flow classification for certain cash receipts and cash payments to address diversity in practice in the manner in which items are classified on the statement of cash flows as either operating, investing or financing activities. We have adopted this amendment as of January 1, 2018 using the retrospective approach. The adoption of this amendment did not have a material impact on our statement of cash flows. In March 2017, the FASB issued an ASU that amends the presentation of net periodic pension cost and net periodic postretirement benefit cost. This amendment requires an entity to disaggregate the service cost component from the other components of net periodic benefit cost, to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit cost (which include interest cost, expected return on plan assets, amortization of prior service cost or credit and actuarial gains and losses) separately. In addition, capitalization of net periodic benefit cost in assets is limited to the service cost component. We have adopted this amendment as of January 1, 2018. As a result of separately reporting the other components of net periodic benefit cost, we retrospectively increased cost of goods sold by $6.6 million , increased selling, general and administrative expenses by $1.7 million and reported other pension and postretirement income of $8.3 million in our Condensed Consolidated Statement of Income for the three months ended March 31, 2017 based on amounts previously included in net periodic benefit costs for retirement benefits as disclosed in Note 10. The adoption of this amendment did not have a material impact on our financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements. In February 2016, the FASB issued an ASU that amends existing guidance for certain leases by lessees. This amendment will require an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. In addition, this amendment clarifies the presentation requirements of the effects of leases in the statement of income and statement of cash flows. This amendment will be effective for us on January 1, 2019. Early adoption is permitted. This amendment is required to be adopted using a modified retrospective approach. We are currently evaluating the impact of this amendment on our financial position, results of operations and cash flows. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue | Revenue Our revenues are primarily derived from the sale of rigid packaging products to customers. We recognize revenue at the amount we expect to be entitled to in exchange for promised goods for which we have transferred control to customers. If the consideration agreed to in a contract includes a variable amount, we estimate the amount of consideration we expect to be entitled to in exchange for transferring the promised goods to the customer. Generally, revenue is recognized at a point in time for standard promised goods at the time of shipment when title and risk of loss pass to the customer, and revenue is recognized over time in cases where we produce promised goods with no alternative use to us and for which we have an enforceable right of payment for production completed. The production cycle for customer contracts subject to over time recognition is generally completed in less than one month. We have elected to treat shipping and handling costs after the control of goods have been transferred to the customer as a fulfillment cost. Sales and similar taxes that are imposed on our sales and collected from customers are excluded from revenues. The following tables present our revenues disaggregated by reportable business segment and geography as they best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenues by business segment for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Metal containers $ 485,954 $ 466,236 Closures 370,345 197,682 Plastics 155,981 141,489 $ 1,012,280 $ 805,407 Revenues by geography for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) North America $ 779,790 $ 674,839 Europe and other 232,490 130,568 $ 1,012,280 $ 805,407 Our contracts generally include standard commercial payment terms generally acceptable in each region. We do not provide financing with extended payment terms beyond generally standard commercial payment terms for the applicable industry. We have no significant obligations for refunds, warranties or similar obligations. Trade accounts receivable, net are shown separately on our Condensed Consolidated Balance Sheet. Contract assets are the result of the timing of revenue recognition, billings and cash collections. Our contract assets primarily consist of unbilled accounts receivable related to over time revenue recognition and were $73.6 million as of March 31, 2018. Unbilled receivables are included in trade accounts receivable, net on our Condensed Consolidated Balance Sheet. Had we not adopted the amended guidance for revenue recognition on January 1, 2018, our trade accounts receivable, net would have been $505.0 million and our inventories would have been $804.1 million as of March 31, 2018. |
Acquisition (Notes)
Acquisition (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Acquisition [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition On April 6, 2017, we acquired the specialty closures and dispensing systems operations of WestRock Company, now operating under the name Silgan Dispensing Systems, or SDS. During the three months ended March 31, 2018, we finalized our purchase price allocation. There were no material changes to the previously recorded fair values of assets acquired and liabilities assumed. |
Rationalization Charges
Rationalization Charges | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Rationalization Charges | Rationalization Charges We continually evaluate cost reduction opportunities across each of our businesses, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Rationalization charges by business segment for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Metal containers $ 482 $ 722 Closures 39 53 Plastic containers 182 110 $ 703 $ 885 Activity in reserves for our rationalization plans for the three months ended March 31 was as follows: Employee Severance and Benefits Plant Exit Costs Non-Cash Asset Write-Down Total (Dollars in thousands) Balance at December 31, 2017 $ 22 $ 2,397 $ — $ 2,419 Charged to expense 377 65 261 703 Utilized and currency translation (342 ) (521 ) (261 ) (1,124 ) Balance at March 31, 2018 $ 57 $ 1,941 $ — $ 1,998 Rationalization reserves as of March 31, 2018 were recorded in our Consolidated Balance Sheets as accrued liabilities and other liabilities of $0.9 million and $1.1 million , respectively. Remaining expenses for our rationalization plans of $1.4 million are expected primarily within the next twelve months. Remaining cash expenditures for our rationalization plans of $3.4 million are expected through 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is reported in our Condensed Consolidated Statements of Stockholders’ Equity. Amounts included in accumulated other comprehensive loss, net of tax, were as follows: Unrecognized Net Defined Benefit Plan Costs Change in Fair Value of Derivatives Foreign Currency Translation Total (Dollars in thousands) Balance at December 31, 2017 $ (104,822 ) $ (89 ) $ (84,062 ) $ (188,973 ) Other comprehensive income before reclassifications — (366 ) 13,800 13,434 Amounts reclassified from accumulated other comprehensive loss 856 (24 ) — 832 Other comprehensive income 856 (390 ) 13,800 14,266 Balance at March 31, 2018 $ (103,966 ) $ (479 ) $ (70,262 ) $ (174,707 ) The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the three months ended March 31, 2018 were net (losses) of $(1.1) million , excluding an income tax benefit of $0.2 million . These net (losses) consisted of amortization of net actuarial (losses) of $(1.7) million and amortization of net prior service credit of $0.6 million . Amortization of net actuarial losses and net prior service credit was recorded in other pension and postretirement income in our Condensed Consolidated Statements of Income. See Note 10 for further information. The amounts reclassified to earnings from the change in fair value of derivatives component of accumulated other comprehensive loss for the three months ended March 31, 2018 were not significant. Other comprehensive income before reclassifications related to foreign currency translation for the three months ended March 31, 2018 consisted of (i) foreign currency gains related to translation of quarter end financial statements of foreign subsidiaries utilizing a functional currency other than the U.S. dollar of $20.5 million , (ii) foreign currency gains related to intra-entity foreign currency transactions that are of a long-term investment nature of $0.6 million and (iii) foreign currency (losses) related to our net investment hedges of $(9.6) million , excluding an income tax benefit of $2.3 million . See Note 8 for further discussion. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: March 31, 2018 March 31, 2017 Dec. 31, 2017 (Dollars in thousands) Raw materials $ 230,847 $ 187,897 $ 233,410 Work-in-process 133,271 125,941 124,396 Finished goods 449,133 452,931 433,937 Other 12,858 14,504 12,370 826,109 781,273 804,113 Adjustment to value inventory at cost on the LIFO method (82,823 ) (68,419 ) (82,823 ) $ 743,286 $ 712,854 $ 721,290 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: March 31, 2018 March 31, 2017 Dec. 31, 2017 (Dollars in thousands) Bank debt Bank revolving loans $ 415,000 $ 319,510 $ — U.S. term loans 800,000 — 800,000 Canadian term loans 23,362 34,166 27,147 Other foreign bank revolving and term loans 30,135 46,507 76,798 Total bank debt 1,268,497 400,183 903,945 5% Senior Notes 280,000 500,000 280,000 5½% Senior Notes 300,000 300,000 300,000 4¾% Senior Notes 300,000 300,000 300,000 3¼% Senior Notes 801,060 692,380 780,325 Total debt - principal 2,949,557 2,192,563 2,564,270 Less unamortized debt issuance costs 16,196 20,552 16,979 Total debt 2,933,361 2,172,011 2,547,291 Less current portion 758,652 580,247 108,789 $ 2,174,709 $ 1,591,764 $ 2,438,502 At March 31, 2018, the current portion of long-term debt consisted of $415.0 million of bank revolving loans under our amended and restated senior secured credit facility, or the Credit Agreement, $40.0 million of term loans under the Credit Agreement, $23.7 million of foreign bank revolving and term loans and $280.0 million of our 5% Senior Notes due 2020, or the 5% Notes, which were redeemed on April 16, 2018. See Note 15 for more information on such redemption. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments The financial instruments recorded in our Condensed Consolidated Balance Sheets include cash and cash equivalents, trade accounts receivable, trade accounts payable, debt obligations and swap agreements. Due to their short-term maturity, the carrying amounts of trade accounts receivable and trade accounts payable approximate their fair market values. The following table summarizes the carrying amounts and estimated fair values of our other financial instruments at March 31, 2018: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 174,540 $ 174,540 Liabilities: Bank debt $ 1,268,497 $ 1,268,497 5% Senior Notes 280,000 280,162 5½% Senior Notes 300,000 306,195 4¾% Senior Notes 300,000 291,585 3¼% Senior Notes 801,060 817,105 Derivative instruments (accrued and other liabilities) 626 626 Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP classifies the inputs used to measure fair value into a hierarchy consisting of three levels. Level 1 inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs represent unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs represent unobservable inputs for the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Financial Instruments Measured at Fair Value The financial assets and liabilities that were measured on a recurring basis at March 31, 2018 consisted of our cash and cash equivalents and derivative instruments. We measured the fair value of cash and cash equivalents using Level 1 inputs. We measured the fair value of our derivative instruments using the income approach. The fair value of our derivative instruments reflects the estimated amounts that we would pay or receive based on the present value of the expected cash flows derived from market interest rates and prices. As such, these derivative instruments were classified within Level 2. Financial Instruments Not Measured at Fair Value Our bank debt, 5% Notes, 5½% Senior Notes, 4¾% Senior Notes and 3¼% Senior Notes were recorded at historical amounts in our Condensed Consolidated Balance Sheets, as we have not elected to measure them at fair value. We measured the fair value of our variable rate bank debt using the market approach based on Level 2 inputs. Fair values of the 5% Notes, 5½% Senior Notes, 4¾% Senior Notes and 3¼% Senior Notes were estimated based on quoted market prices, a Level 1 input. Derivative Instruments and Hedging Activities Our derivative financial instruments were recorded in the Condensed Consolidated Balance Sheets at their fair values. Changes in fair values of derivatives are recorded in each period in earnings or comprehensive income, depending on whether a derivative is designated as part of a hedge transaction and, if it is, the type of hedge transaction. We utilize certain derivative financial instruments to manage a portion of our interest rate and natural gas cost exposures. We generally limit our use of derivative financial instruments to interest rate and natural gas swap agreements. We do not engage in trading or other speculative uses of these financial instruments. For a financial instrument to qualify as a hedge, we must be exposed to interest rate or price risk, and the financial instrument must reduce the exposure and be designated as a hedge. Financial instruments qualifying for hedge accounting must maintain a high correlation between the hedging instrument and the item being hedged, both at inception and throughout the hedged period. We utilize certain internal hedging strategies to minimize our foreign currency exchange rate risk. Net investment hedges that qualify for hedge accounting result in the recognition of foreign currency gains or losses, net of tax, in accumulated other comprehensive loss. We generally do not utilize external derivative financial instruments to manage our foreign currency exchange rate risk. Interest Rate Swap Agreements We have entered into two U.S. dollar interest rate swap agreements, each for $50.0 million notional principal amount, to manage a portion of our exposure to interest rate fluctuations. These agreements have a fixed rate of 2.878 percent , become effective on March 29, 2019 and mature on March 24, 2023. The difference between amounts to be paid or received on our interest rate swap agreements will be recorded in interest and other debt expense in our Condensed Consolidated Statements of Income. These agreements are with financial institutions which are expected to fully perform under the terms thereof. The total fair value of our interest rate swap agreements in effect at March 31, 2018 was not significant. Natural Gas Swap Agreements We have entered into natural gas swap agreements with a major financial institution to manage a portion of our exposure to fluctuations in natural gas prices. The difference between amounts to be paid or received on our natural gas swap agreements is recorded in cost of goods sold in our Condensed Consolidated Statements of Income and was not significant for the quarter ended March 31, 2018. These agreements are with financial institutions which are expected to fully perform under the terms thereof. The total fair value of our natural gas swap agreements in effect at March 31, 2018 was not significant. Foreign Currency Exchange Rate Risk In an effort to minimize foreign currency exchange rate risk, we have financed acquisitions of foreign operations primarily with borrowings denominated in Euros and Canadian dollars. In addition, where available, we have borrowed funds in local currency or implemented certain internal hedging strategies to minimize our foreign currency exchange rate risk related to foreign operations. We have designated the 3¼% Senior Notes, which are Euro denominated, as net investment hedges. Foreign currency (losses) related to our net investment hedges included in accumulated other comprehensive loss for the three months ended March 31, 2018 were $(9.6) million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies A competition authority in Germany commenced an antitrust investigation in 2015 involving the industry association for metal packaging in Germany and its members, including our metal container and closures subsidiaries in Germany. At the end of April 2018, the European Commission commenced an antitrust investigation involving the metal packaging industry in Europe including our metal container and closures subsidiaries, which should effectively close out the investigation in Germany. Given the early stage, we cannot reasonably assess what actions may result from these investigations or estimate what costs we may incur as a result thereof. We are a party to other legal proceedings, contract disputes and claims arising in the ordinary course of our business. We are not a party to, and none of our properties are subject to, any pending legal proceedings which could have a material adverse effect on our business or financial condition. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of the net periodic pension benefit credit for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Service cost $ 3,721 $ 3,168 Interest cost 6,309 6,270 Expected return on plan assets (17,123 ) (15,713 ) Amortization of prior service cost 35 80 Amortization of actuarial losses 1,786 1,853 Net periodic benefit credit $ (5,272 ) $ (4,342 ) The components of the net periodic other postretirement benefit credit for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Service cost $ 31 $ 36 Interest cost 163 176 Amortization of prior service credit (649 ) (853 ) Amortization of actuarial gains (119 ) (139 ) Net periodic benefit credit $ (574 ) $ (780 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Silgan and its subsidiaries file U.S. Federal income tax returns, as well as income tax returns in various states and foreign jurisdictions. We have been accepted into the Compliance Assurance Program for the 2017 and 2018 tax years which provides for the review by the Internal Revenue Service of tax matters relating to our tax return prior to filing. We do not expect a material change to our unrecognized tax benefits within the next twelve months. In December 2017, the staff of the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, which provides guidance for the application of GAAP as it pertains to accounting for income taxes and allows us to record provisional amounts pertaining to the enacted legislation in the United States commonly referred to as the Tax Cuts and Jobs Act, or the 2017 Tax Act, during a measurement period ending in December 2018. For the three months ended March 31, 2018, we did not have any significant adjustments to our provisional amounts. Additional work is necessary to complete the analysis of open items, including our deferred tax assets and liabilities and our historical foreign earnings. Any subsequent adjustment to the provisional amounts will be recorded in current tax expense in the fiscal quarter of 2018 during which the analysis is completed. |
Treasury Stock
Treasury Stock | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock On October 17, 2016, our Board of Directors authorized the repurchase by us of up to an aggregate of $300.0 million of our common stock by various means from time to time through and including December 31, 2021, of which we had approximately $129.4 million remaining under this authorization for the repurchase of our common stock at March 31, 2018. We did not repurchase any shares of our common stock under this authorization during the three months ended March 31, 2018. During the first three months of 2018, we issued 279,840 treasury shares which had an average cost of $3.14 per share for restricted stock units that vested during the period. In accordance with the Silgan Holdings Inc. Amended and Restated 2004 Stock Incentive Plan, we repurchased 96,182 shares of our common stock at an average cost of $28.55 to satisfy minimum employee withholding tax requirements resulting from the vesting of such restricted stock units. We account for treasury shares using the first-in, first-out (FIFO) cost method. As of March 31, 2018, 64,543,494 shares of our common stock were held in treasury. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We currently have one stock-based compensation plan in effect under which we have issued options and restricted stock units to our officers, other key employees and outside directors. During the first three months of 2018, 355,400 restricted stock units were granted to certain of our officers and other key employees. The fair value of these restricted stock units at the grant date was $10.1 million , which is being amortized ratably over the respective vesting period from the grant date. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Reportable business segment information for the three months ended March 31 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended March 31, 2018 Net sales $ 485,954 $ 370,345 $ 155,981 $ — $ 1,012,280 Depreciation and amortization (1) 20,254 18,650 8,950 22 47,876 Rationalization charges 482 39 182 — 703 Segment income 37,093 48,224 11,082 (4,217 ) 92,182 Three Months Ended March 31, 2017 Net sales $ 466,236 $ 197,682 $ 141,489 $ — $ 805,407 Depreciation and amortization (1) 18,798 9,182 8,437 23 36,440 Rationalization charges 722 53 110 — 885 Segment income (2) 43,870 23,799 6,834 (17,741 ) 56,762 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $1.1 million for each of the three months ended March 31, 2018 and 2017. (2) Segment income for Corporate includes costs attributed to announced acquisitions of $13.2 million for the three months ended March 31, 2017. Total segment income is reconciled to income before income taxes as follows: 2018 2017 (Dollars in thousands) Total segment income $ 92,182 $ 56,762 Interest and other debt expense 30,481 23,095 Income before income taxes $ 61,701 $ 33,667 Sales and segment income of our metal container business and part of our closures business are dependent, in part, upon fruit and vegetable harvests. The size and quality of these harvests varies from year to year, depending in large part upon the weather conditions in applicable regions. Because of the seasonality of the harvests, we have historically experienced higher unit sales volume in the third quarter of our fiscal year and generated a disproportionate amount of our annual segment income during that quarter. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Event [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On April 16, 2018, we redeemed all outstanding 5% Notes ( $280.0 million aggregate principal amount) at a redemption price of 100 percent of their principal amount plus accrued and unpaid interest up to the redemption date. We funded this redemption with revolving loan borrowings under the Credit Agreement and cash on hand. As a result of the redemption of the 5% Notes, we expect to record a pre-tax charge for the loss on early extinguishment of debt of approximately $1.4 million during the second quarter of 2018 for the write-off of unamortized debt issuance costs. |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation . The accompanying unaudited condensed consolidated financial statements of Silgan Holdings Inc., or Silgan, have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. The results of operations for any interim period are not necessarily indicative of the results of operations for the full year. The Condensed Consolidated Balance Sheet at December 31, 2017 has been derived from our audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. Deferred income taxes as of March 31, 2017 previously included in other liabilities have been presented as a separate line item on the Condensed Consolidated Balance Sheet to conform to current period presentation. You should read the accompanying condensed consolidated financial statements in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017. |
Recently Issued Accounting Pronouncements | Stock Split . On May 3, 2017, our Board of Directors declared a two -for-one stock split of our issued common stock. The stock split was effected on May 26, 2017 in the form of a stock dividend. Stockholders of record at the close of business on May 15, 2017 were issued one additional share of common stock for each share of common stock owned on that date. Information pertaining to per share and share amounts have been retroactively adjusted in the Condensed Consolidated Statement of Income for the three months ended March 31, 2017. Recently Adopted Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, that amends the guidance for revenue recognition. This amendment contains principles that require an entity to recognize revenue to depict the transfer of promised goods and services to customers at an amount that an entity expects to be entitled to in exchange for those promised goods or services. We adopted this amendment on January 1, 2018, using the modified retrospective method. Results for the reporting period beginning January 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted. The adoption of this amendment required us to accelerate the recognition of revenue prior to shipment to certain customers in cases where we produce promised goods with no alternative use to us and for which we have an enforceable right of payment for production completed. As a result of the adoption of this amendment, we increased trade accounts receivable, net by $69.4 million , decreased inventories by $56.6 million , increased accrued liabilities by $0.9 million and increased long-term deferred income tax liabilities by $2.8 million , resulting in a net increase to retained earnings of $9.1 million , all as of January 1, 2018. The adoption of this amendment did not have a material impact on our financial position, results of operations or cash flows. See Note 2 for further information. In August 2016, the FASB issued an ASU that provides guidance for cash flow classification for certain cash receipts and cash payments to address diversity in practice in the manner in which items are classified on the statement of cash flows as either operating, investing or financing activities. We have adopted this amendment as of January 1, 2018 using the retrospective approach. The adoption of this amendment did not have a material impact on our statement of cash flows. In March 2017, the FASB issued an ASU that amends the presentation of net periodic pension cost and net periodic postretirement benefit cost. This amendment requires an entity to disaggregate the service cost component from the other components of net periodic benefit cost, to report the service cost component in the same line item as other compensation costs and to report the other components of net periodic benefit cost (which include interest cost, expected return on plan assets, amortization of prior service cost or credit and actuarial gains and losses) separately. In addition, capitalization of net periodic benefit cost in assets is limited to the service cost component. We have adopted this amendment as of January 1, 2018. As a result of separately reporting the other components of net periodic benefit cost, we retrospectively increased cost of goods sold by $6.6 million , increased selling, general and administrative expenses by $1.7 million and reported other pension and postretirement income of $8.3 million in our Condensed Consolidated Statement of Income for the three months ended March 31, 2017 based on amounts previously included in net periodic benefit costs for retirement benefits as disclosed in Note 10. The adoption of this amendment did not have a material impact on our financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements. In February 2016, the FASB issued an ASU that amends existing guidance for certain leases by lessees. This amendment will require an entity to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. In addition, this amendment clarifies the presentation requirements of the effects of leases in the statement of income and statement of cash flows. This amendment will be effective for us on January 1, 2019. Early adoption is permitted. This amendment is required to be adopted using a modified retrospective approach. We are currently evaluating the impact of this amendment on our financial position, results of operations and cash flows. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Revenues by business segment for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Metal containers $ 485,954 $ 466,236 Closures 370,345 197,682 Plastics 155,981 141,489 $ 1,012,280 $ 805,407 Revenues by geography for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) North America $ 779,790 $ 674,839 Europe and other 232,490 130,568 $ 1,012,280 $ 805,407 |
Rationalization Charges (Tables
Rationalization Charges (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Activity in Rationalization Plan Reserves | Rationalization charges by business segment for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Metal containers $ 482 $ 722 Closures 39 53 Plastic containers 182 110 $ 703 $ 885 Activity in reserves for our rationalization plans for the three months ended March 31 was as follows: Employee Severance and Benefits Plant Exit Costs Non-Cash Asset Write-Down Total (Dollars in thousands) Balance at December 31, 2017 $ 22 $ 2,397 $ — $ 2,419 Charged to expense 377 65 261 703 Utilized and currency translation (342 ) (521 ) (261 ) (1,124 ) Balance at March 31, 2018 $ 57 $ 1,941 $ — $ 1,998 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax | Amounts included in accumulated other comprehensive loss, net of tax, were as follows: Unrecognized Net Defined Benefit Plan Costs Change in Fair Value of Derivatives Foreign Currency Translation Total (Dollars in thousands) Balance at December 31, 2017 $ (104,822 ) $ (89 ) $ (84,062 ) $ (188,973 ) Other comprehensive income before reclassifications — (366 ) 13,800 13,434 Amounts reclassified from accumulated other comprehensive loss 856 (24 ) — 832 Other comprehensive income 856 (390 ) 13,800 14,266 Balance at March 31, 2018 $ (103,966 ) $ (479 ) $ (70,262 ) $ (174,707 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, 2018 March 31, 2017 Dec. 31, 2017 (Dollars in thousands) Raw materials $ 230,847 $ 187,897 $ 233,410 Work-in-process 133,271 125,941 124,396 Finished goods 449,133 452,931 433,937 Other 12,858 14,504 12,370 826,109 781,273 804,113 Adjustment to value inventory at cost on the LIFO method (82,823 ) (68,419 ) (82,823 ) $ 743,286 $ 712,854 $ 721,290 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt consisted of the following: March 31, 2018 March 31, 2017 Dec. 31, 2017 (Dollars in thousands) Bank debt Bank revolving loans $ 415,000 $ 319,510 $ — U.S. term loans 800,000 — 800,000 Canadian term loans 23,362 34,166 27,147 Other foreign bank revolving and term loans 30,135 46,507 76,798 Total bank debt 1,268,497 400,183 903,945 5% Senior Notes 280,000 500,000 280,000 5½% Senior Notes 300,000 300,000 300,000 4¾% Senior Notes 300,000 300,000 300,000 3¼% Senior Notes 801,060 692,380 780,325 Total debt - principal 2,949,557 2,192,563 2,564,270 Less unamortized debt issuance costs 16,196 20,552 16,979 Total debt 2,933,361 2,172,011 2,547,291 Less current portion 758,652 580,247 108,789 $ 2,174,709 $ 1,591,764 $ 2,438,502 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Summary of Carrying Amounts and Estimated Fair Values of Other Financial Instruments | The following table summarizes the carrying amounts and estimated fair values of our other financial instruments at March 31, 2018: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 174,540 $ 174,540 Liabilities: Bank debt $ 1,268,497 $ 1,268,497 5% Senior Notes 280,000 280,162 5½% Senior Notes 300,000 306,195 4¾% Senior Notes 300,000 291,585 3¼% Senior Notes 801,060 817,105 Derivative instruments (accrued and other liabilities) 626 626 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of the net periodic pension benefit credit for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Service cost $ 3,721 $ 3,168 Interest cost 6,309 6,270 Expected return on plan assets (17,123 ) (15,713 ) Amortization of prior service cost 35 80 Amortization of actuarial losses 1,786 1,853 Net periodic benefit credit $ (5,272 ) $ (4,342 ) The components of the net periodic other postretirement benefit credit for the three months ended March 31 were as follows: 2018 2017 (Dollars in thousands) Service cost $ 31 $ 36 Interest cost 163 176 Amortization of prior service credit (649 ) (853 ) Amortization of actuarial gains (119 ) (139 ) Net periodic benefit credit $ (574 ) $ (780 ) |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Business Segment Information | Reportable business segment information for the three months ended March 31 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended March 31, 2018 Net sales $ 485,954 $ 370,345 $ 155,981 $ — $ 1,012,280 Depreciation and amortization (1) 20,254 18,650 8,950 22 47,876 Rationalization charges 482 39 182 — 703 Segment income 37,093 48,224 11,082 (4,217 ) 92,182 Three Months Ended March 31, 2017 Net sales $ 466,236 $ 197,682 $ 141,489 $ — $ 805,407 Depreciation and amortization (1) 18,798 9,182 8,437 23 36,440 Rationalization charges 722 53 110 — 885 Segment income (2) 43,870 23,799 6,834 (17,741 ) 56,762 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $1.1 million for each of the three months ended March 31, 2018 and 2017. (2) Segment income for Corporate includes costs attributed to announced acquisitions of $13.2 million for the three months ended March 31, 2017. |
Reconciliation of Segment Income from Operations to Income before Income Taxes | Total segment income is reconciled to income before income taxes as follows: 2018 2017 (Dollars in thousands) Total segment income $ 92,182 $ 56,762 Interest and other debt expense 30,481 23,095 Income before income taxes $ 61,701 $ 33,667 |
Significant Accounting Polici32
Significant Accounting Policies Revenue From Contracts with Customers ASU 2014-09 (Details) - Accounting Standards Update 2014-09 [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accounts Receivable [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | $ 69.4 |
Inventories [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | (56.6) |
Accrued Liabilities [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | 0.9 |
Long Term Deferred Income Tax Liabilities | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | 2.8 |
Retained Earnings | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | $ 9.1 |
Significant Accounting Polici33
Significant Accounting Policies Stock Split (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Stock split ratio (in shares) | 2 |
Significant Accounting Polici34
Significant Accounting Policies Net Periodic Pension Cost and Net Postretirement Benefit Cost (Details) - Accounting Standards Update 2017-07 [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Cost of Goods, Total [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | $ 6.6 |
Selling, General and Administrative Expenses [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | 1.7 |
Pension and Other Postretirement Income [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Increase (Decrease) | $ 8.3 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Net sales | $ 1,012,280 | $ 805,407 | |
Contract assets | 73,600 | ||
Trade accounts receivable, net | 578,584 | 331,668 | $ 454,637 |
Inventories | 743,286 | 712,854 | $ 721,290 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Trade accounts receivable, net | 505,000 | ||
Inventories | 804,100 | ||
Metal Containers [Member] | |||
Net sales | 485,954 | 466,236 | |
Closures [Member] | |||
Net sales | 370,345 | 197,682 | |
Plastic Containers [Member] | |||
Net sales | 155,981 | 141,489 | |
North America [Member] | |||
Net sales | 779,790 | 674,839 | |
Europe and Other [Member] | |||
Net sales | $ 232,490 | $ 130,568 |
Rationalization Charges Activit
Rationalization Charges Activity in Rationalization Plan Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2017 | $ 2,419 | |
Charged to expense | 703 | $ 885 |
Utilized and currency translation | (1,124) | |
Balance at March 31, 2018 | 1,998 | |
Employee Severance and Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2017 | 22 | |
Charged to expense | 377 | |
Utilized and currency translation | (342) | |
Balance at March 31, 2018 | 57 | |
Plant Exit Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2017 | 2,397 | |
Charged to expense | 65 | |
Utilized and currency translation | (521) | |
Balance at March 31, 2018 | 1,941 | |
Non-Cash Asset Write-Down [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2017 | 0 | |
Charged to expense | 261 | |
Utilized and currency translation | (261) | |
Balance at March 31, 2018 | 0 | |
Metal Containers [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Charged to expense | 482 | 722 |
Closures [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Charged to expense | 39 | 53 |
Plastic Containers [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Charged to expense | 182 | $ 110 |
Accrued Liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2018 | 900 | |
Other Liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2018 | 1,100 | |
Rationalization Plan [Member] | Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses for our rationalization plans expected primarily within the next twelve months | 1,400 | |
Restructuring Reserve [Roll Forward] | ||
Remaining cash expenditures for our rationalization plans expected through 2023 | $ 3,400 |
Amounts Included in Accumulated
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2017 | $ (188,973) | |
Other comprehensive income before reclassifications | 13,434 | |
Amounts reclassified from accumulated other comprehensive loss | 832 | |
Other comprehensive income | 14,266 | $ 7,746 |
Balance at March 31, 2018 | (174,707) | $ (216,110) |
Unrecognized Net Defined Benefit Plan Costs [Member] | ||
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2017 | (104,822) | |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 856 | |
Other comprehensive income | 856 | |
Balance at March 31, 2018 | (103,966) | |
Change in Fair Value of Derivatives [Member] | ||
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2017 | (89) | |
Other comprehensive income before reclassifications | (366) | |
Amounts reclassified from accumulated other comprehensive loss | (24) | |
Other comprehensive income | (390) | |
Balance at March 31, 2018 | (479) | |
Foreign Currency Translation [Member] | ||
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2017 | (84,062) | |
Other comprehensive income before reclassifications | 13,800 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Other comprehensive income | 13,800 | |
Balance at March 31, 2018 | $ (70,262) |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During the Period Related to Translation of Foreign Subsidiaries Utlizing a Functional Currency Other Than the US Dollar | $ 13,800 | $ 7,457 |
Unrecognized Net Defined Benefit Plan Costs [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive (Loss) Reclassification Adjustment from AOCI, Pension and other Postretirement Benefit Plans, before tax | (1,100) | |
Benefit for Income Taxes | 200 | |
Amortization of net actuarial (losses), before tax | (1,700) | |
Net prior service credit arising during period, before tax | 600 | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During the Period Related to Translation of Foreign Subsidiaries Utlizing a Functional Currency Other Than the US Dollar | 20,500 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Related to Net Investment Hedges, before Reclassification and Tax | (9,600) | |
Foreign currency translation, tax benefit related to net investment hedges | 2,300 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period Related to Intra-Entity Transactions of a Long-Term Investment Nature, Net of Tax | $ 600 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 230,847 | $ 233,410 | $ 187,897 |
Work-in-process | 133,271 | 124,396 | 125,941 |
Finished goods | 449,133 | 433,937 | 452,931 |
Other | 12,858 | 12,370 | 14,504 |
Inventory, Gross, Total | 826,109 | 804,113 | 781,273 |
Adjustment to value inventory at cost on the LIFO method | (82,823) | (82,823) | (68,419) |
Inventories | $ 743,286 | $ 721,290 | $ 712,854 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||
Total debt - principal | $ 2,949,557 | $ 2,564,270 | $ 2,192,563 |
Less unamortized debt issuance costs | 16,196 | 16,979 | 20,552 |
Debt long term and short term less unamortized debt issuance costs combined amount | 2,933,361 | 2,547,291 | 2,172,011 |
Less current portion | 758,652 | 108,789 | 580,247 |
Long-term debt | 2,174,709 | 2,438,502 | 1,591,764 |
Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 1,268,497 | 903,945 | 400,183 |
5% Senior Notes due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 280,000 | $ 280,000 | $ 500,000 |
Senior note interest rate (percent) | 5.00% | 5.00% | 5.00% |
Less current portion | $ 280,000 | ||
5 1/2% Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 300,000 | $ 300,000 | $ 300,000 |
Senior note interest rate (percent) | 5.50% | 5.50% | 5.50% |
4 3/4% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 300,000 | $ 300,000 | $ 300,000 |
Senior note interest rate (percent) | 4.75% | 4.75% | 4.75% |
3 1/4% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 801,060 | $ 780,325 | $ 692,380 |
Senior note interest rate (percent) | 3.25% | 3.25% | 3.25% |
Revolving Loan [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 415,000 | $ 0 | $ 319,510 |
Less current portion | 415,000 | ||
U S Term Loans [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 800,000 | 800,000 | 0 |
Less current portion | 40,000 | ||
Canadian Term Loans [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 23,362 | 27,147 | 34,166 |
Other Foreign Bank Revolving And Term Loans [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 30,135 | $ 76,798 | $ 46,507 |
Less current portion | $ 23,700 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
USD Interest Rate Swap Contract One [Member] | |||
Derivative [Line Items] | |||
Notional principal amount of outstanding of the interest rate swap agreement | $ 50,000 | ||
Fixed interest rate | 2.878% | ||
USD Interest Rate Swap Contract Two [Member] | |||
Derivative [Line Items] | |||
Notional principal amount of outstanding of the interest rate swap agreement | $ 50,000 | ||
Fixed interest rate | 2.878% | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Cash and cash equivalents | $ 174,540 | ||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 626 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Cash and cash equivalents | 174,540 | ||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 626 | ||
Bank debt [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 1,268,497 | ||
Bank debt [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 1,268,497 | ||
5% Senior Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 280,000 | ||
5% Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 280,162 | ||
5 1/2% Senior Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 300,000 | ||
5 1/2% Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 306,195 | ||
4 3/4% Senior Notes due 2025 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 300,000 | ||
4 3/4% Senior Notes due 2025 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 291,585 | ||
3 1/4% Senior Notes due 2025 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 801,060 | ||
3 1/4% Senior Notes due 2025 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | $ 817,105 | ||
5% Senior Notes due 2020 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 5.00% | 5.00% | 5.00% |
5% Senior Notes due 2020 [Member] | Senior Notes [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 5.00% | ||
5 1/2% Senior Notes due 2022 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 5.50% | 5.50% | 5.50% |
5 1/2% Senior Notes due 2022 [Member] | Senior Notes [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 5.50% | ||
3 1/4% Senior Notes due 2025 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 3.25% | 3.25% | 3.25% |
4 3/4% Senior Notes due 2025 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 4.75% | 4.75% | 4.75% |
Accumulated Translation Adjustment [Member] | |||
Derivative [Line Items] | |||
Foreign currency (losses) of net investment hedges included in accumulated other comprehensive loss | $ (9,600) |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,721 | $ 3,168 |
Interest cost | 6,309 | 6,270 |
Expected return on plan assets | (17,123) | (15,713) |
Amortization of prior service cost (credit) | 35 | 80 |
Amortization of actuarial losses (gains) | 1,786 | 1,853 |
Net periodic benefit credit | (5,272) | (4,342) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 31 | 36 |
Interest cost | 163 | 176 |
Amortization of prior service cost (credit) | (649) | (853) |
Amortization of actuarial losses (gains) | (119) | (139) |
Net periodic benefit credit | $ (574) | $ (780) |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Oct. 17, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||
Aggregate stock authorized for repurchase program (shares) | $ 300 | |
Remaining authorized repurchase amount | $ 129.4 | |
Treasury stock (shares) | 64,543,494 | |
2004 Amended and Restated Stock Incentive Plan | ||
Equity, Class of Treasury Stock [Line Items] | ||
Treasury shares issued for restricted stock units that vested during the period | 279,840 | |
Average cost of treasury shares that were issued for restricted stock units that vested during the period (usd per share) | $ 3.14 | |
Shares repurchased to satisfy minimum employee withholding tax requirements resulting from the vesting of such restricted stock units (shares) | 96,182 | |
Average cost per share of treasury stock acquired to satisfy minimum employee withholding requirements (usd per share) | $ 28.55 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - Restricted stock units [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units granted (shares) | shares | 355,400 |
Fair value of restricted stock units granted | $ | $ 10.1 |
Reportable Business Segment Inf
Reportable Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,012,280 | $ 805,407 | ||
Depreciation and amortization | [1] | 47,876 | 36,440 | |
Rationalization charges | 703 | 885 | ||
Segment Income | 92,182 | 56,762 | ||
Amortization of debt issuance costs excluded from depreciation and amortization | 1,100 | 1,100 | ||
Metal Containers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 485,954 | 466,236 | ||
Depreciation and amortization | [1] | 20,254 | 18,798 | |
Rationalization charges | 482 | 722 | ||
Segment Income | 37,093 | 43,870 | ||
Closures [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 370,345 | 197,682 | ||
Depreciation and amortization | [1] | 18,650 | 9,182 | |
Rationalization charges | 39 | 53 | ||
Segment Income | 48,224 | 23,799 | ||
Plastic Containers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 155,981 | 141,489 | ||
Depreciation and amortization | [1] | 8,950 | 8,437 | |
Rationalization charges | 182 | 110 | ||
Segment Income | 11,082 | 6,834 | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | ||
Depreciation and amortization | [1] | 22 | 23 | |
Rationalization charges | 0 | 0 | ||
Segment Income | $ (4,217) | (17,741) | [2] | |
Costs attributed to announced acquisitions | $ 13,200 | |||
[1] | Depreciation and amortization excludes amortization of debt issuance costs of $1.1 million for each of the three months ended March 31, 2018 and 2017. | |||
[2] | Segment income for Corporate includes costs attributed to announced acquisitions of $13.2 million for the three months ended March 31, 2017. |
Reconciliation of Segment Incom
Reconciliation of Segment Income to Income before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Segment Income | $ 92,182 | $ 56,762 |
Interest and other debt expense | 30,481 | 23,095 |
Income before income taxes | $ 61,701 | $ 33,667 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | Apr. 16, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Subsequent Event [Line Items] | |||
Gain (Loss) on Extinguishment of Debt | $ 0 | $ (2,677) | |
Senior Notes [Member] | Five Percent Senior Notes due 2020 [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Early Repayment of Senior Debt | $ 280,000 | ||
Debt Instrument, Redemption Price, Percentage Plus Accrued and Unpaid Interest up to the Redemption Date | 100.00% | ||
Gain (Loss) on Extinguishment of Debt | $ (1,400) |