Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
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 | 60,392,905 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Current assets: | |||
Cash and cash equivalents | $ 104,203 | $ 222,591 | $ 145,889 |
Trade accounts receivable, net | 623,591 | 310,732 | 616,348 |
Inventories | 580,276 | 548,765 | 588,290 |
Prepaid expenses and other current assets | 51,782 | 75,744 | 56,928 |
Total current assets | 1,359,852 | 1,157,832 | 1,407,455 |
Property, plant and equipment, net | 1,099,873 | 1,063,631 | 1,080,226 |
Goodwill | 617,786 | 630,262 | 639,216 |
Other intangible assets, net | 199,475 | 211,770 | 217,094 |
Other assets, net | 237,429 | 240,429 | 286,185 |
Assets, Total | 3,514,415 | 3,303,924 | 3,630,176 |
Current liabilities: | |||
Revolving loans and current portion of long-term debt | 482,877 | 125,130 | 443,982 |
Trade accounts payable | 342,878 | 423,905 | 285,346 |
Accrued payroll and related costs | 55,107 | 46,242 | 58,958 |
Accrued liabilities | 94,755 | 69,285 | 101,871 |
Total current liabilities | 975,617 | 664,562 | 890,157 |
Long-term debt | 1,448,937 | 1,473,833 | 1,523,048 |
Other liabilities | 457,976 | 455,573 | 435,672 |
Stockholders’ equity: | |||
Common stock | 876 | 876 | 876 |
Paid-in capital | 234,789 | 225,449 | 223,203 |
Retained earnings | 1,429,468 | 1,313,521 | 1,299,502 |
Accumulated other comprehensive loss | (196,878) | (165,624) | (78,016) |
Treasury stock | (836,370) | (664,266) | (664,266) |
Total stockholders’ equity | 631,885 | 709,956 | 781,299 |
Liabilities and Equity, Total | $ 3,514,415 | $ 3,303,924 | $ 3,630,176 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,203,525 | $ 1,228,444 | $ 2,934,355 | $ 3,001,626 |
Cost of goods sold | 1,018,419 | 1,022,830 | 2,493,355 | 2,524,298 |
Gross profit | 185,106 | 205,614 | 441,000 | 477,328 |
Selling, general and administrative expenses | 54,113 | 55,451 | 162,969 | 170,625 |
Rationalization charges | 9,070 | 2,528 | 10,754 | 4,978 |
Income from operations | 121,923 | 147,635 | 267,277 | 301,725 |
Interest and other debt expense before loss on early extinguishment of debt | 17,159 | 19,276 | 50,364 | 56,920 |
Loss on early extinguishment of debt | 0 | 0 | 0 | 1,474 |
Interest and other debt expense | 17,159 | 19,276 | 50,364 | 58,394 |
Income before income taxes | 104,764 | 128,359 | 216,913 | 243,331 |
Provision for income taxes | 34,448 | 45,083 | 71,047 | 84,576 |
Net income | $ 70,316 | $ 83,276 | $ 145,866 | $ 158,755 |
Earnings per share: | ||||
Basic net income per share | $ 1.16 | $ 1.31 | $ 2.38 | $ 2.50 |
Diluted net income per share | 1.16 | 1.31 | 2.37 | 2.49 |
Dividends per share | $ 0.16 | $ 0.15 | $ 0.48 | $ 0.45 |
Weighted average number of shares: | ||||
Basic (in shares) | 60,417 | 63,448 | 61,222 | 63,480 |
Effect of dilutive securities (in shares) | 279 | 266 | 271 | 347 |
Diluted (in shares) | 60,696 | 63,714 | 61,493 | 63,827 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 70,316 | $ 83,276 | $ 145,866 | $ 158,755 |
Other comprehensive income (loss), net of tax: | ||||
Changes in net prior service credit and actuarial losses | 12 | (225) | 1,632 | (769) |
Change in fair value of derivatives | (277) | 1,310 | (107) | 2,648 |
Foreign currency translation | (13,834) | (34,688) | (32,779) | (41,776) |
Other comprehensive loss | (14,099) | (33,603) | (31,254) | (39,897) |
Comprehensive income | $ 56,217 | $ 49,673 | $ 114,612 | $ 118,858 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 145,866 | $ 158,755 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 109,790 | 114,211 |
Rationalization charges | 10,754 | 4,978 |
Loss on early extinguishment of debt | 0 | 1,474 |
Excess tax benefit from stock-based compensation | (680) | (3,403) |
Other changes that provided (used) cash, net of effects from acquisitions: | ||
Trade accounts receivable, net | (325,281) | (291,837) |
Inventories | (43,721) | (81,553) |
Trade accounts payable | 8,555 | 26,698 |
Accrued liabilities | 22,272 | 43,040 |
Other, net | 24,268 | (24,909) |
Net cash used in operating activities | (48,177) | (52,546) |
Cash flows provided by (used in) investing activities: | ||
Purchases of businesses, net of cash acquired | (690) | (17,714) |
Capital expenditures | (151,419) | (94,290) |
Proceeds from asset sales | 225 | 1,202 |
Net cash used in investing activities | (151,884) | (110,802) |
Cash flows provided by (used in) financing activities: | ||
Borrowings under revolving loans | 692,476 | 757,960 |
Repayments under revolving loans | (326,026) | (434,950) |
Proceeds from issuance of long-term debt | 7,327 | 732,215 |
Repayments of long-term debt | (7,040) | (753,168) |
Debt issuance costs | 0 | (5,019) |
Changes in outstanding checks - principally vendors | (82,801) | (86,538) |
Dividends paid on common stock | (29,919) | (29,007) |
Excess tax benefit from stock-based compensation | 680 | 3,403 |
Repurchase of common stock under stock plan | (2,892) | (11,456) |
Repurchase of common stock under share repurchase authorization | (170,132) | (24,666) |
Net cash provided by financing activities | 81,673 | 148,774 |
Cash and cash equivalents: | ||
Net decrease | (118,388) | (14,574) |
Balance at beginning of year | 222,591 | 160,463 |
Balance at end of period | 104,203 | 145,889 |
Interest paid, net | 45,541 | 49,632 |
Income taxes paid, net | $ 37,546 | $ 40,093 |
Condensed Consolidated Stateme6
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 (in shares) at Dec. 31, 2013 | 63,415 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net issuance of treasury stock for vested restricted stock units, including tax benefit (in shares) | 297 | |||||
Repurchases of common stock (in shares) | (509) | |||||
Ending Balance (in shares) at Sep. 30, 2014 | 63,203 | |||||
Beginning Balance at Dec. 31, 2013 | $ 713,843 | $ 876 | $ 212,822 | $ 1,169,754 | $ (38,119) | $ (631,490) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 158,755 | 158,755 | ||||
Other comprehensive loss | (39,897) | (39,897) | ||||
Dividends declared on common stock | (29,007) | (29,007) | ||||
Stock compensation expense | 10,324 | 10,324 | ||||
Net issuance of treasury stock for vested restricted stock units, including tax benefit | (8,053) | 57 | (8,110) | |||
Repurchases of common stock | (24,666) | (24,666) | ||||
Ending Balance at Sep. 30, 2014 | 781,299 | $ 876 | 223,203 | 1,299,502 | (78,016) | (664,266) |
Beginning Balance (in shares) at Dec. 31, 2014 | 63,203 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net issuance of treasury stock for vested restricted stock units, including tax benefit (in shares) | 96 | |||||
Repurchases of common stock (in shares) | (2,906) | |||||
Ending Balance (in shares) at Sep. 30, 2015 | 60,393 | |||||
Beginning Balance at Dec. 31, 2014 | 709,956 | $ 876 | 225,449 | 1,313,521 | (165,624) | (664,266) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 145,866 | 145,866 | ||||
Other comprehensive loss | (31,254) | (31,254) | ||||
Dividends declared on common stock | (29,919) | (29,919) | ||||
Stock compensation expense | 9,580 | 9,580 | ||||
Net issuance of treasury stock for vested restricted stock units, including tax benefit | (2,212) | (240) | (1,972) | |||
Repurchases of common stock | (170,132) | (170,132) | ||||
Ending Balance at Sep. 30, 2015 | $ 631,885 | $ 876 | $ 234,789 | $ 1,429,468 | $ (196,878) | $ (836,370) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Net issuance of treasury stock for vested restricted stock units, tax benefit | $ 680 | $ 3,403 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 has been derived from our audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. You should read the accompanying condensed consolidated financial statements in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. Goodwill and Other Intangible Assets. We review goodwill and other indefinite-lived intangible assets for impairment as of July 1 of each year and more frequently if circumstances indicate a possible impairment. We determined that our goodwill and other indefinite-lived intangible assets were not impaired in our annual 2015 assessment performed during the third quarter. Recently Issued 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 will require an entity to recognize revenue to depict the transfer of goods and services to customers at an amount that an entity expects to be entitled to in exchange for those goods or services. This amendment permits the use of one of two retrospective transition methods. In August 2015, the FASB deferred the effective date of this amendment. As a result, this amendment will be effective for us on January 1, 2018, with early adoption permitted up to one year prior to the effective date. We have not yet selected a transition method and are currently evaluating the impact of this amendment on our financial position, results of operations and cash flows. In April 2015, the FASB issued an ASU that amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability. This amendment will be effective for us on January 1, 2016. Early adoption is permitted. The adoption of this amendment will not have a material effect on our financial position, results of operations or cash flows. In July 2015, the FASB issued an ASU that amends existing guidance for measuring inventories. This amendment will require us to measure inventories recorded using the first-in, first-out method and the average cost method at the lower of cost and net realizable value. This amendment does not change the methodology for measuring inventories recorded using the last-in, first-out method. This amendment will be effective for us on January 1, 2017. Early adoption is permitted. The adoption of this amendment will not have a material effect on our financial position, results of operations or cash flows. |
Rationalization Charges
Rationalization Charges | 9 Months Ended |
Sep. 30, 2015 | |
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 were as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Closures $ 205 $ 1,218 $ 1,351 $ 2,706 Plastic containers 8,865 1,310 9,403 2,272 $ 9,070 $ 2,528 $ 10,754 $ 4,978 Activity in reserves for our rationalization plans for the nine months ended September 30 was as follows: Employee Severance and Benefits Non-Cash Retirement Benefit Curtailment Plant Exit Costs Non-Cash Asset Write-Down Total (Dollars in thousands) Balance at December 31, 2014 $ 6,052 $ — $ 316 $ — $ 6,368 Charged to expense 2,496 (482 ) 361 8,379 10,754 Utilized and currency translation (5,360 ) 482 (409 ) (8,379 ) (13,666 ) Balance at September 30, 2015 $ 3,188 $ — $ 268 $ — $ 3,456 Non-cash asset write-downs were the result of comparing the carrying value of certain production related equipment to their fair value using estimated future discounted cash flows, a Level 3 fair value measurement (as defined in Note 6). Rationalization reserves were included in the Condensed Consolidated Balance Sheets as accrued liabilities. Remaining expenses and cash expenditures for our rationalization plans of $3.7 million and $7.2 million , respectively, are expected within the next twelve months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 $ (89,252 ) $ (1,198 ) $ (75,174 ) $ (165,624 ) Other comprehensive loss before reclassifications — (1,292 ) (32,779 ) (34,071 ) Amounts reclassified from accumulated other comprehensive loss 1,632 1,185 — 2,817 Other comprehensive loss 1,632 (107 ) (32,779 ) (31,254 ) Balance at September 30, 2015 $ (87,620 ) $ (1,305 ) $ (107,953 ) $ (196,878 ) The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss were not significant for the three months ended September 30, 2015 and were net losses of $2.6 million , excluding an income tax benefit of $1.0 million , for the nine months ended September 30, 2015. For the nine months ended September 30, 2015, these net losses consisted of $4.1 million of amortization of net actuarial losses and $1.5 million of amortization of net prior service credit, respectively. Amortization of net actuarial losses and net prior service credit is a component of net periodic benefit cost. See Note 8 for further information. The amounts reclassified to earnings from the change in fair value of derivatives component of accumulated other comprehensive loss were not significant for the three months ended September 30, 2015 and were net losses of $1.9 million , excluding an income tax benefit of $0.7 million , for the nine months ended September 30, 2015. For the nine months ended September 30, 2015, these net losses included $1.1 million related to our interest rate swap agreements which were recorded in interest and other debt expense in our Condensed Consolidated Statements of Income and $0.8 million related to our natural gas swap agreements which were recorded in cost of goods sold in our Condensed Consolidated Statements of Income. See Note 6 for further information. Foreign currency gains related to our net investment hedges included in the foreign currency translation component of accumulated other comprehensive loss were not significant for the three months ended September 30, 2015 and were $19.5 million , excluding an income tax provision of $7.3 million , for the nine months ended September 30, 2015. See Note 6, which includes a discussion of derivative instruments and hedging activities. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: Sept. 30, 2015 Sept. 30, 2014 Dec. 31, 2014 (Dollars in thousands) Raw materials $ 204,841 $ 181,034 $ 184,714 Work-in-process 104,842 125,290 115,308 Finished goods 358,783 364,261 338,562 Other 14,831 14,285 13,541 683,297 684,870 652,125 Adjustment to value inventory at cost on the LIFO method (103,021 ) (96,580 ) (103,360 ) $ 580,276 $ 588,290 $ 548,765 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: Sept. 30, 2015 Sept. 30, 2014 Dec. 31, 2014 (Dollars in thousands) Bank debt Bank revolving loans $ 357,044 $ 335,148 $ — U.S. term loans 365,000 365,000 365,000 Canadian term loans 49,582 62,699 60,235 Euro term loans 246,576 279,070 266,156 Other foreign bank revolving and term loans 113,612 125,113 107,572 Total bank debt 1,131,814 1,167,030 798,963 5½% Senior Notes 300,000 300,000 300,000 5% Senior Notes 500,000 500,000 500,000 Total debt 1,931,814 1,967,030 1,598,963 Less current portion 482,877 443,982 125,130 $ 1,448,937 $ 1,523,048 $ 1,473,833 At September 30, 2015, amounts expected to be repaid within one year consisted of $387.6 million of bank revolving and term loans under our senior secured credit facility, or the Credit Agreement, and $95.3 million of foreign bank revolving and term loans. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 104,203 $ 104,203 Liabilities: Bank debt $ 1,131,814 $ 1,131,814 5½% Senior Notes 300,000 310,410 5% Senior Notes 500,000 503,750 Interest rate swap agreements 1,465 1,465 Natural gas swap agreements 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 September 30, 2015 consisted of our cash and cash equivalents, interest rate swap agreements and natural gas swap agreements. We measured the fair value of cash and cash equivalents using Level 1 inputs. We measured the fair value of the swap agreements using the income approach. The fair value of the swap agreements 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, 5½% Senior Notes due 2022, or the 5½% Notes, and 5% Senior Notes due 2020, or the 5% 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 5½% Notes and the 5% 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 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) income. We generally do not utilize external derivative financial instruments to manage our foreign currency exchange rate risk. Our interest rate and natural gas swap agreements are accounted for as cash flow hedges. During the first nine months of 2015, our hedges were fully effective. The fair value of our outstanding swap agreements in effect at September 30, 2015 was recorded in our Condensed Consolidated Balance Sheet as a net liability of $2.1 million , of which $1.7 million was included in accrued liabilities and $0.4 million was included in other liabilities. The amounts reclassified to earnings from the change in fair value of derivatives component of accumulated other comprehensive loss for the three and nine months ended September 30, 2015 were losses, net of income taxes, of $0.3 million and $1.2 million , respectively. We estimate that we will reclassify losses of $1.0 million , net of income taxes, from the change in fair value of derivatives component of accumulated other comprehensive loss to earnings during the next twelve months. The actual amount that will be reclassified to earnings will vary from this amount as a result of changes in market conditions. Interest Rate Swap Agreements We have entered into U.S. dollar interest rate swap agreements to manage a portion of our exposure to interest rate fluctuations. At September 30, 2015, the aggregate notional principal amount of our outstanding interest rate swap agreements was $100.0 million . The difference between amounts to be paid or received on our interest rate swap agreements is recorded in interest and other debt expense in our Condensed Consolidated Statements of Income. For the three and nine months ended September 30, 2015, net payments under our interest rate swap agreements were $0.3 million and $1.1 million , respectively. These agreements are with financial institutions which are expected to fully perform under the terms thereof. 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. At September 30, 2015, the aggregate notional principal amount of our natural gas swap agreements was 1,764,000 MMBtu of natural gas with fixed prices ranging from $2.86 to $4.16 per MMBtu, which hedged approximately 41 percent of our estimated twelve month 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. For the three and nine months ended September 30, 2015, net payments under our natural gas swap agreements were $0.2 million and $0.8 million , respectively. These agreements are with a financial institution which is expected to fully perform under the terms thereof. Foreign Currency Exchange Rate Risk In an effort to minimize foreign currency exchange rate risk, we have financed acquisitions of foreign operations primarily with loans borrowed under our senior secured credit facilities 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 substantially all of our Euro denominated borrowings under the Credit Agreement as net investment hedges. Foreign currency gains related to our net investment hedges included in accumulated other comprehensive loss for the three and nine months ended September 30, 2015 were $0.4 million and $19.5 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies A competition authority in Germany commenced an antitrust investigation involving the industry association for metal packaging in Germany and its members, including our metal container and closures subsidiaries in Germany. Given the early stage of the investigation, we cannot reasonably assess what actions may result from the investigation or estimate what costs we may incur as a result of the investigation. We are a party to other legal proceedings, contract disputes and claims arising in the ordinary course of our business, none of which are expected to have a material adverse effect on our business or financial condition. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits The components of the net periodic pension benefit costs were as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Service cost $ 3,688 $ 3,392 $ 11,689 $ 10,163 Interest cost 6,753 7,399 21,044 22,248 Expected return on plan assets (15,692 ) (14,312 ) (47,045 ) (43,000 ) Amortization of prior service cost 264 272 778 891 Amortization of actuarial losses 627 154 4,293 588 Curtailment gain (482 ) — (482 ) — Net periodic benefit credit $ (4,842 ) $ (3,095 ) $ (9,723 ) $ (9,110 ) The components of the net periodic other postretirement benefits costs were as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Service cost $ 56 $ 138 $ 335 $ 402 Interest cost 256 420 965 1,245 Amortization of prior service credit (817 ) (726 ) (2,289 ) (2,154 ) Amortization of actuarial gains (133 ) (75 ) (260 ) (246 ) Net periodic benefit credit $ (638 ) $ (243 ) $ (1,249 ) $ (753 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
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. The Internal Revenue Service, or IRS, has completed its review of the tax years 2012 and 2013 for us, and we have been accepted into the Compliance Assurance Program for the 2014 and 2015 tax years, which provides for the review by the IRS 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. |
Treasury Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock On February 9, 2015, we commenced a “modified Dutch auction” tender offer to purchase up to $200.0 million of our common stock. Pursuant to the tender offer, which expired on March 10, 2015, we purchased 2,766,354 shares of our common stock from our stockholders on March 17, 2015 at a price of $58.50 per share, for a total purchase price of $161.8 million , exclusive of $0.7 million of fees and expenses. During the nine months ended September 30, 2015, we repurchased an additional 139,421 shares of our common stock at an average price per share of $54.71 , for a total purchase price of $7.6 million . As a result, at September 30, 2015, we had $106.0 million remaining under an authorization from our Board of Directors for the repurchase of our common stock from time to time through and including December 31, 2019. During the first nine months of 2015, we issued 146,160 treasury shares which had an average cost of $6.30 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, or the 2004 Stock Incentive Plan, we repurchased 50,841 shares of our common stock at an average cost of $56.88 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 September 30, 2015, 27,163,343 shares of our common stock were held in treasury. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months of 2015, 167,946 restricted stock units were granted to certain of our officers, other key employees and outside directors. The fair value of these restricted stock units at the grant date was $9.6 million , which is being amortized ratably over the respective vesting period from the grant date. At our annual meeting of stockholders held on May 26, 2015, our stockholders approved the 2004 Stock Incentive Plan, which, among other things, increased the number of shares of our common stock available for awards under the 2004 Stock Incentive Plan by an additional 3,000,000 shares. The total number of shares of our common stock available for issuance under the 2004 Stock Incentive Plan as of September 30, 2015 was 3,647,406 . |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Reportable business segment information for the three and nine months ended September 30 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended September 30, 2015 Net sales $ 845,408 $ 215,713 $ 142,404 $ — $ 1,203,525 Depreciation and amortization (1) 17,746 9,399 8,531 30 35,706 Rationalization charges — 205 8,865 — 9,070 Segment income from operations 106,024 27,066 (7,293 ) (3,874 ) 121,923 Three Months Ended September 30, 2014 Net sales $ 827,675 $ 241,021 $ 159,748 $ — $ 1,228,444 Depreciation and amortization (1) 17,550 9,930 9,146 32 36,658 Rationalization charges — 1,218 1,310 — 2,528 Segment income from operations (2) 112,229 27,645 13,129 (5,368 ) 147,635 Nine Months Ended September 30, 2015 Net sales $ 1,858,004 $ 620,949 $ 455,402 $ — $ 2,934,355 Depreciation and amortization (1) 52,400 28,302 25,881 93 106,676 Rationalization charges — 1,351 9,403 — 10,754 Segment income from operations 194,992 73,226 11,332 (12,273 ) 267,277 Nine Months Ended September 30, 2014 Net sales $ 1,814,764 $ 687,050 $ 499,812 $ — $ 3,001,626 Depreciation and amortization (1) 52,121 31,482 27,354 95 111,052 Rationalization charges — 2,706 2,272 — 4,978 Segment income from operations (2) 203,582 70,639 38,946 (11,442 ) 301,725 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $1.0 million in each of the three months ended September 30, 2015 and 2014 and $3.1 million and $3.2 million for the nine months ended September 30, 2015 and 2014, respectively. (2) Income from operations of the closures segment includes income (losses) from operations in Venezuela of $0.8 million and $(2.6) million for the three and nine months ended September 30, 2014, respectively. The manufacturing facility in Venezuela ceased operations at the end of 2014. Total segment income from operations is reconciled to income before income taxes as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Total segment income from operations $ 121,923 $ 147,635 $ 267,277 $ 301,725 Interest and other debt expense 17,159 19,276 50,364 58,394 Income before income taxes $ 104,764 $ 128,359 $ 216,913 $ 243,331 Sales and income from operations 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 income from operations during that quarter. |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 has been derived from our audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. You should read the accompanying condensed consolidated financial statements in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets. We review goodwill and other indefinite-lived intangible assets for impairment as of July 1 of each year and more frequently if circumstances indicate a possible impairment. We determined that our goodwill and other indefinite-lived intangible assets were not impaired in our annual 2015 assessment performed during the third quarter. |
Recently Issued Accounting Pronouncements | Recently Issued 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 will require an entity to recognize revenue to depict the transfer of goods and services to customers at an amount that an entity expects to be entitled to in exchange for those goods or services. This amendment permits the use of one of two retrospective transition methods. In August 2015, the FASB deferred the effective date of this amendment. As a result, this amendment will be effective for us on January 1, 2018, with early adoption permitted up to one year prior to the effective date. We have not yet selected a transition method and are currently evaluating the impact of this amendment on our financial position, results of operations and cash flows. In April 2015, the FASB issued an ASU that amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability. This amendment will be effective for us on January 1, 2016. Early adoption is permitted. The adoption of this amendment will not have a material effect on our financial position, results of operations or cash flows. In July 2015, the FASB issued an ASU that amends existing guidance for measuring inventories. This amendment will require us to measure inventories recorded using the first-in, first-out method and the average cost method at the lower of cost and net realizable value. This amendment does not change the methodology for measuring inventories recorded using the last-in, first-out method. This amendment will be effective for us on January 1, 2017. Early adoption is permitted. The adoption of this amendment will not have a material effect on our financial position, results of operations or cash flows. |
Rationalization Charges (Tables
Rationalization Charges (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Activity in Rationalization Plan Reserves | Rationalization charges were as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Closures $ 205 $ 1,218 $ 1,351 $ 2,706 Plastic containers 8,865 1,310 9,403 2,272 $ 9,070 $ 2,528 $ 10,754 $ 4,978 Activity in reserves for our rationalization plans for the nine months ended September 30 was as follows: Employee Severance and Benefits Non-Cash Retirement Benefit Curtailment Plant Exit Costs Non-Cash Asset Write-Down Total (Dollars in thousands) Balance at December 31, 2014 $ 6,052 $ — $ 316 $ — $ 6,368 Charged to expense 2,496 (482 ) 361 8,379 10,754 Utilized and currency translation (5,360 ) 482 (409 ) (8,379 ) (13,666 ) Balance at September 30, 2015 $ 3,188 $ — $ 268 $ — $ 3,456 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 $ (89,252 ) $ (1,198 ) $ (75,174 ) $ (165,624 ) Other comprehensive loss before reclassifications — (1,292 ) (32,779 ) (34,071 ) Amounts reclassified from accumulated other comprehensive loss 1,632 1,185 — 2,817 Other comprehensive loss 1,632 (107 ) (32,779 ) (31,254 ) Balance at September 30, 2015 $ (87,620 ) $ (1,305 ) $ (107,953 ) $ (196,878 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: Sept. 30, 2015 Sept. 30, 2014 Dec. 31, 2014 (Dollars in thousands) Raw materials $ 204,841 $ 181,034 $ 184,714 Work-in-process 104,842 125,290 115,308 Finished goods 358,783 364,261 338,562 Other 14,831 14,285 13,541 683,297 684,870 652,125 Adjustment to value inventory at cost on the LIFO method (103,021 ) (96,580 ) (103,360 ) $ 580,276 $ 588,290 $ 548,765 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt consisted of the following: Sept. 30, 2015 Sept. 30, 2014 Dec. 31, 2014 (Dollars in thousands) Bank debt Bank revolving loans $ 357,044 $ 335,148 $ — U.S. term loans 365,000 365,000 365,000 Canadian term loans 49,582 62,699 60,235 Euro term loans 246,576 279,070 266,156 Other foreign bank revolving and term loans 113,612 125,113 107,572 Total bank debt 1,131,814 1,167,030 798,963 5½% Senior Notes 300,000 300,000 300,000 5% Senior Notes 500,000 500,000 500,000 Total debt 1,931,814 1,967,030 1,598,963 Less current portion 482,877 443,982 125,130 $ 1,448,937 $ 1,523,048 $ 1,473,833 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 104,203 $ 104,203 Liabilities: Bank debt $ 1,131,814 $ 1,131,814 5½% Senior Notes 300,000 310,410 5% Senior Notes 500,000 503,750 Interest rate swap agreements 1,465 1,465 Natural gas swap agreements 626 626 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The components of the net periodic pension benefit costs were as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Service cost $ 3,688 $ 3,392 $ 11,689 $ 10,163 Interest cost 6,753 7,399 21,044 22,248 Expected return on plan assets (15,692 ) (14,312 ) (47,045 ) (43,000 ) Amortization of prior service cost 264 272 778 891 Amortization of actuarial losses 627 154 4,293 588 Curtailment gain (482 ) — (482 ) — Net periodic benefit credit $ (4,842 ) $ (3,095 ) $ (9,723 ) $ (9,110 ) The components of the net periodic other postretirement benefits costs were as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Service cost $ 56 $ 138 $ 335 $ 402 Interest cost 256 420 965 1,245 Amortization of prior service credit (817 ) (726 ) (2,289 ) (2,154 ) Amortization of actuarial gains (133 ) (75 ) (260 ) (246 ) Net periodic benefit credit $ (638 ) $ (243 ) $ (1,249 ) $ (753 ) |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Reportable Business Segment Information | Reportable business segment information for the three and nine months ended September 30 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended September 30, 2015 Net sales $ 845,408 $ 215,713 $ 142,404 $ — $ 1,203,525 Depreciation and amortization (1) 17,746 9,399 8,531 30 35,706 Rationalization charges — 205 8,865 — 9,070 Segment income from operations 106,024 27,066 (7,293 ) (3,874 ) 121,923 Three Months Ended September 30, 2014 Net sales $ 827,675 $ 241,021 $ 159,748 $ — $ 1,228,444 Depreciation and amortization (1) 17,550 9,930 9,146 32 36,658 Rationalization charges — 1,218 1,310 — 2,528 Segment income from operations (2) 112,229 27,645 13,129 (5,368 ) 147,635 Nine Months Ended September 30, 2015 Net sales $ 1,858,004 $ 620,949 $ 455,402 $ — $ 2,934,355 Depreciation and amortization (1) 52,400 28,302 25,881 93 106,676 Rationalization charges — 1,351 9,403 — 10,754 Segment income from operations 194,992 73,226 11,332 (12,273 ) 267,277 Nine Months Ended September 30, 2014 Net sales $ 1,814,764 $ 687,050 $ 499,812 $ — $ 3,001,626 Depreciation and amortization (1) 52,121 31,482 27,354 95 111,052 Rationalization charges — 2,706 2,272 — 4,978 Segment income from operations (2) 203,582 70,639 38,946 (11,442 ) 301,725 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $1.0 million in each of the three months ended September 30, 2015 and 2014 and $3.1 million and $3.2 million for the nine months ended September 30, 2015 and 2014, respectively. (2) Income from operations of the closures segment includes income (losses) from operations in Venezuela of $0.8 million and $(2.6) million for the three and nine months ended September 30, 2014, respectively. The manufacturing facility in Venezuela ceased operations at the end of 2014. |
Reconciliation of Segment Income from Operations to Income before Income Taxes | Total segment income from operations is reconciled to income before income taxes as follows: Three Months Ended Nine Months Ended Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 (Dollars in thousands) Total segment income from operations $ 121,923 $ 147,635 $ 267,277 $ 301,725 Interest and other debt expense 17,159 19,276 50,364 58,394 Income before income taxes $ 104,764 $ 128,359 $ 216,913 $ 243,331 |
Rationalization Charges Activit
Rationalization Charges Activity in Rationalization Plan Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2014 | $ 6,368 | |||
Charged to expense | $ 9,070 | $ 2,528 | 10,754 | $ 4,978 |
Utilized and currency translation | (13,666) | |||
Balance at September 30, 2015 | 3,456 | 3,456 | ||
Employee Severance and Benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2014 | 6,052 | |||
Charged to expense | 2,496 | |||
Utilized and currency translation | (5,360) | |||
Balance at September 30, 2015 | 3,188 | 3,188 | ||
Non-Cash Retirement Benefit Curtailment [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Charged to expense | (482) | |||
Utilized and currency translation | 482 | |||
Plant Exit Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2014 | 316 | |||
Charged to expense | 361 | |||
Utilized and currency translation | (409) | |||
Balance at September 30, 2015 | 268 | 268 | ||
Non-Cash Asset Write-Down [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Charged to expense | 8,379 | |||
Utilized and currency translation | (8,379) | |||
Closures [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Charged to expense | 205 | 1,218 | 1,351 | 2,706 |
Plastic Containers [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Charged to expense | $ 8,865 | $ 1,310 | $ 9,403 | $ 2,272 |
Rationalization Charges Activ29
Rationalization Charges Activity in Rationalization Plan Reserves (Details II) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Rationalization charges | $ 9,070 | $ 2,528 | $ 10,754 | $ 4,978 |
Remaining expenses for our rationalization plans expected within the next twelve months | 3,700 | 3,700 | ||
Remaining cash expenditures for our rationalization plans expected within the next twelve months | $ 7,200 | |||
Rationalization Plan Reserves Utilized and CTA | $ 13,666 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss - Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2014 | $ (165,624) | |||
Other comprehensive loss before reclassifications | (34,071) | |||
Amounts reclassified from accumulated other comprehensive loss | 2,817 | |||
Other comprehensive loss | $ (14,099) | $ (33,603) | (31,254) | $ (39,897) |
Balance at September 30, 2015 | (196,878) | $ (78,016) | (196,878) | $ (78,016) |
Unrecognized Net Defined Benefit Plan Costs [Member] | ||||
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2014 | (89,252) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 1,632 | |||
Other comprehensive loss | 1,632 | |||
Balance at September 30, 2015 | (87,620) | (87,620) | ||
Change in Fair Value of Derivatives [Member] | ||||
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2014 | (1,198) | |||
Other comprehensive loss before reclassifications | (1,292) | |||
Amounts reclassified from accumulated other comprehensive loss | 1,185 | |||
Other comprehensive loss | (107) | |||
Balance at September 30, 2015 | (1,305) | (1,305) | ||
Foreign Currency Translation [Member] | ||||
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2014 | (75,174) | |||
Other comprehensive loss before reclassifications | (32,779) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive loss | (32,779) | |||
Balance at September 30, 2015 | $ (107,953) | $ (107,953) |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 104,764 | $ 128,359 | $ 216,913 | $ 243,331 |
(Benefit) for income taxes | 34,448 | 45,083 | 71,047 | 84,576 |
Interest and Debt Expense | 17,159 | 19,276 | 50,364 | 58,394 |
Cost of goods sold | $ 1,018,419 | $ 1,022,830 | 2,493,355 | $ 2,524,298 |
Foreign currency gains related to net investment hedges included in foreign currency translation component of accumulated other comprehensive loss | 19,500 | |||
Foreign currency gains related to net investment hedges included in foreign currency translation component of accumulated other comprehensive loss, income tax (benefit) provision | 7,300 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrecognized Net Defined Benefit Plan Costs [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (2,600) | |||
(Benefit) for income taxes | (1,000) | |||
Net prior service credit arising during period, before tax | 1,500 | |||
Amortization of net actuarial losses | 4,100 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in Fair Value of Derivatives [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (1,900) | |||
(Benefit) for income taxes | (700) | |||
Interest Rate Swap [Member] | Change in Fair Value of Derivatives [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and Debt Expense | 1,100 | |||
Natural Gas [Member] | Change in Fair Value of Derivatives [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | $ 800 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 204,841 | $ 184,714 | $ 181,034 |
Work-in-process | 104,842 | 115,308 | 125,290 |
Finished goods | 358,783 | 338,562 | 364,261 |
Other | 14,831 | 13,541 | 14,285 |
Inventory, Gross, Total | 683,297 | 652,125 | 684,870 |
Adjustment to value inventory at cost on the LIFO method | (103,021) | (103,360) | (96,580) |
Inventories | $ 580,276 | $ 548,765 | $ 588,290 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Total Debt | $ 1,931,814 | $ 1,967,030 | $ 1,931,814 | $ 1,967,030 | $ 1,598,963 |
Less current portion | 482,877 | 443,982 | 482,877 | 443,982 | 125,130 |
Long-term debt | 1,448,937 | 1,523,048 | 1,448,937 | 1,523,048 | 1,473,833 |
Loss on early extinguishment of debt | 0 | 0 | 0 | 1,474 | |
Bank debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 1,131,814 | 1,167,030 | 1,131,814 | 1,167,030 | 798,963 |
5 1/2% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 |
5% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 500,000 | 500,000 | 500,000 | 500,000 | 500,000 |
Revolving Loan [Member] | Bank debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | $ 357,044 | $ 335,148 | $ 357,044 | $ 335,148 | $ 0 |
Senior Notes [Member] | 5 1/2% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior note interest rate (percent) | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% |
Senior Notes [Member] | 5% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior note interest rate (percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% |
Bank revolving loans and term loans [Member] | Bank debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Less current portion | $ 387,600 | $ 387,600 | |||
U S Term Loans [Member] | Bank debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 365,000 | $ 365,000 | 365,000 | $ 365,000 | $ 365,000 |
Canadian Term Loans [Member] | Bank debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 49,582 | 62,699 | 49,582 | 62,699 | 60,235 |
Euro Term Loans [Member] | Bank debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 246,576 | 279,070 | 246,576 | 279,070 | 266,156 |
Other Foreign Bank Revolving And Term Loans [Member] | Bank debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 113,612 | $ 125,113 | 113,612 | $ 125,113 | $ 107,572 |
Less current portion | $ 95,300 | $ 95,300 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015USD ($)MMBTU$ / MMBTU | Sep. 30, 2015USD ($)MMBTU$ / MMBTU | |
Derivative [Line Items] | ||
Amount of losses, net of income taxes, reclassified to earnings from change in fair value of derivatives component of accumulated other comprehensive loss | $ 300 | $ 1,200 |
Estimated reclassification of losses, net of income taxes, from the change in fair value of derivatives component of accumulated other comprehensive loss to earnings during the next twelve months | 1,000 | |
Interest rate and natural gas swap [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | 2,100 | 2,100 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Aggregate notional principal amount of outstanding interest rate swap agreements | 100,000 | 100,000 |
Net payments under derivative swap agreements | 300 | 1,100 |
Natural Gas [Member] | ||
Derivative [Line Items] | ||
Net payments under derivative swap agreements | $ 200 | $ 800 |
Principal amount of natural gas swap agreements (mmbtu) | MMBTU | 1,764,000 | 1,764,000 |
Hedged portion of estimated twelve month exposure to natural gas price fluctuations (percent) | 41.00% | 41.00% |
Foreign Currency Exchange Rate Risk [Member] | ||
Derivative [Line Items] | ||
Foreign currency gains of net investment hedges included in accumulated other comprehensive loss | $ 400 | $ 19,500 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 104,203 | 104,203 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | 1,465 | 1,465 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | 626 | 626 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Cash and cash equivalents | 104,203 | 104,203 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | 1,465 | 1,465 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | 626 | 626 |
Bank debt [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Long-Term Debt | 1,131,814 | 1,131,814 |
Bank debt [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Long-Term Debt | 1,131,814 | 1,131,814 |
5 1/2% Senior Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Long-Term Debt | 300,000 | 300,000 |
5 1/2% Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Long-Term Debt | 310,410 | 310,410 |
5% Senior Notes [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Long-Term Debt | 500,000 | 500,000 |
5% Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Derivative [Line Items] | ||
Long-Term Debt | $ 503,750 | $ 503,750 |
Natural Gas [Member] | Minimum [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Natural gas fixed price (per mmbtu) | $ / MMBTU | 2.86 | 2.86 |
Natural Gas [Member] | Maximum [Member] | Natural Gas [Member] | ||
Derivative [Line Items] | ||
Natural gas fixed price (per mmbtu) | $ / MMBTU | 4.16 | 4.16 |
Accrued Liabilities [Member] | Interest rate and natural gas swap [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 1,700 | $ 1,700 |
Other Liabilities [Member] | Interest rate and natural gas swap [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 400 | $ 400 |
Retirement Benefits - Component
Retirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3,688 | $ 3,392 | $ 11,689 | $ 10,163 |
Interest cost | 6,753 | 7,399 | 21,044 | 22,248 |
Expected return on plan assets | (15,692) | (14,312) | (47,045) | (43,000) |
Amortization of prior service cost | 264 | 272 | 778 | 891 |
Amortization of actuarial losses (gains) | 627 | 154 | 4,293 | 588 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | (482) | (482) | ||
Net periodic benefit credit | (4,842) | (3,095) | (9,723) | (9,110) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 56 | 138 | 335 | 402 |
Interest cost | 256 | 420 | 965 | 1,245 |
Amortization of prior service cost | (817) | (726) | (2,289) | (2,154) |
Amortization of actuarial losses (gains) | (133) | (75) | (260) | (246) |
Net periodic benefit credit | $ (638) | $ (243) | $ (1,249) | $ (753) |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 17, 2015 | Feb. 09, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Remaining authorized repurchase amount | $ 106,000 | |||
Modified Dutch Auction Authorized Amount | $ 200,000 | |||
Fees and Expenses Modified Dutch Auction | $ 700 | |||
Repurchase of common stock under share repurchase authorization | $ (170,132) | $ (24,666) | ||
Treasury stock (shares) | 27,163,343 | |||
Common Stock Purchased Through Modified Dutch Auction Tender Offer Shares | 2,766,354 | |||
Common Stock Purchased Through Modified Dutch Auction Tender Offer Price Per Share | $ 58.50 | |||
Common Stock Purchased Through Modified Dutch Auction Tender Offer Value | $ 161,800 | |||
2004 Stock Incentive Plan [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Average cost per share of treasury stock acquired | $ 56.88 | |||
Treasury shares issued (shares) | 146,160 | |||
Issuance of treasury shares, average cost per share (usd per share) | $ 6.30 | |||
Shares repurchased to satisfy minimum employee withholding tax requirements resulting from the vesting of such restricted stock units (shares) | 50,841 | |||
Stock Repurchase Program [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchases of common stock (in shares) | 139,421 | |||
Average cost per share of treasury stock acquired | $ 54.71 | |||
Repurchase of common stock under share repurchase authorization | $ (7,600) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Other Share Increase (Decrease) | 3,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,647,406 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units granted (shares) | 167,946 |
Fair value of restricted stock units granted | $ | $ 9.6 |
Business Segment Information -
Business Segment Information - Reportable Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 1,203,525 | $ 1,228,444 | $ 2,934,355 | $ 3,001,626 | |||
Depreciation and amortization | [1] | 35,706 | 36,658 | 106,676 | 111,052 | ||
Rationalization charges | 9,070 | 2,528 | 10,754 | 4,978 | |||
Operating Income (Loss) | 121,923 | 147,635 | 267,277 | 301,725 | |||
Amortization of debt issuance costs excluded from depreciation and amortization | 1,000 | 1,000 | 3,100 | 3,200 | |||
Metal Containers [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 845,408 | 827,675 | 1,858,004 | 1,814,764 | |||
Depreciation and amortization | [1] | 17,746 | 17,550 | 52,400 | 52,121 | ||
Rationalization charges | 0 | 0 | 0 | 0 | |||
Operating Income (Loss) | 106,024 | 112,229 | 194,992 | 203,582 | |||
Closures [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 215,713 | 241,021 | 620,949 | 687,050 | |||
Depreciation and amortization | [1] | 9,399 | 9,930 | 28,302 | 31,482 | ||
Rationalization charges | 205 | 1,218 | 1,351 | 2,706 | |||
Operating Income (Loss) | 27,066 | 27,645 | [2] | 73,226 | 70,639 | [2] | |
Operating Income (Loss) Venezuela | 800 | (2,600) | |||||
Plastic Containers [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 142,404 | 159,748 | 455,402 | 499,812 | |||
Depreciation and amortization | [1] | 8,531 | 9,146 | 25,881 | 27,354 | ||
Rationalization charges | 8,865 | 1,310 | 9,403 | 2,272 | |||
Operating Income (Loss) | (7,293) | 13,129 | 11,332 | 38,946 | |||
Corporate [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 0 | 0 | 0 | 0 | |||
Depreciation and amortization | [1] | 30 | 32 | 93 | 95 | ||
Rationalization charges | 0 | 0 | 0 | 0 | |||
Operating Income (Loss) | $ (3,874) | $ (5,368) | $ (12,273) | $ (11,442) | |||
[1] | Depreciation and amortization excludes amortization of debt issuance costs of $1.0 million in each of the three months ended September 30, 2015 and 2014 and $3.1 million and $3.2 million for the nine months ended September 30, 2015 and 2014, respectively. | ||||||
[2] | Income from operations of the closures segment includes income (losses) from operations in Venezuela of $0.8 million and $(2.6) million for the three and nine months ended September 30, 2014, respectively. The manufacturing facility in Venezuela ceased operations at the end of 2014. |
Business Segment Information 39
Business Segment Information - Reconciliation of Segment Income from Operations to Income before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Total segment income from operations | $ 121,923 | $ 147,635 | $ 267,277 | $ 301,725 |
Interest and other debt expense | 17,159 | 19,276 | 50,364 | 58,394 |
Income before income taxes | $ 104,764 | $ 128,359 | $ 216,913 | $ 243,331 |