Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 110,617,896 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Current assets: | |||
Cash and cash equivalents | $ 181,220 | $ 53,533 | $ 142,083 |
Trade accounts receivable, net | 648,525 | 454,637 | 528,362 |
Inventories | 833,719 | 721,290 | 830,887 |
Prepaid expenses and other current assets | 63,361 | 62,462 | 68,026 |
Total current assets | 1,726,825 | 1,291,922 | 1,569,358 |
Property, plant and equipment, net | 1,480,390 | 1,489,872 | 1,452,569 |
Goodwill | 1,158,910 | 1,171,454 | 1,160,624 |
Other intangible assets, net | 399,590 | 417,088 | 424,437 |
Other assets, net | 293,962 | 275,113 | 287,584 |
Assets, Total | 5,059,677 | 4,645,449 | 4,894,572 |
Current liabilities: | |||
Revolving loans and current portion of long-term debt | 788,731 | 108,789 | 648,850 |
Trade accounts payable | 609,164 | 659,629 | 455,457 |
Accrued payroll and related costs | 65,493 | 66,257 | 64,573 |
Accrued liabilities | 90,360 | 123,602 | 110,325 |
Total current liabilities | 1,553,748 | 958,277 | 1,279,205 |
Long-term debt | 2,173,941 | 2,438,502 | 2,444,912 |
Deferred income taxes | 274,086 | 262,394 | 416,118 |
Other liabilities | 219,892 | 220,211 | 211,330 |
Stockholders’ equity: | |||
Common stock | 1,751 | 1,751 | 1,751 |
Paid-in capital | 268,559 | 262,201 | 255,077 |
Retained earnings | 1,897,417 | 1,809,845 | 1,589,498 |
Accumulated other comprehensive loss | (208,963) | (188,973) | (185,139) |
Treasury stock | (1,120,754) | (1,118,759) | (1,118,180) |
Total stockholders’ equity | 838,010 | 766,065 | 543,007 |
Liabilities and Equity, Total | $ 5,059,677 | $ 4,645,449 | $ 4,894,572 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,059,103 | $ 1,021,814 | $ 2,071,385 | $ 1,827,220 |
Cost of goods sold | 885,853 | 863,120 | 1,738,101 | 1,550,547 |
Gross profit | 173,250 | 158,694 | 333,284 | 276,673 |
Selling, general and administrative expenses | 78,253 | 88,654 | 154,998 | 157,313 |
Rationalization charges | 492 | 3,038 | 1,195 | 3,923 |
Other pension and postretirement income | (9,612) | (8,231) | (19,210) | (16,557) |
Income before interest and income taxes | 104,117 | 75,233 | 196,301 | 131,994 |
Interest and other debt expense before loss on early extinguishment of debt | 29,922 | 29,207 | 60,401 | 49,625 |
Loss on early extinguishment of debt | 2,493 | 4,375 | 2,493 | 7,052 |
Interest and other debt expense | 32,415 | 33,582 | 62,894 | 56,677 |
Income before income taxes | 71,702 | 41,651 | 133,407 | 75,317 |
Provision for income taxes | 16,359 | 13,725 | 32,340 | 24,160 |
Net income | $ 55,343 | $ 27,926 | $ 101,067 | $ 51,157 |
Earnings per share | ||||
Basic net income per share (usd per share) | $ 0.50 | $ 0.25 | $ 0.91 | $ 0.46 |
Diluted net income per share (usd per share) | 0.50 | 0.25 | 0.91 | 0.46 |
Dividends per share (usd per share) | $ 0.10 | $ 0.09 | $ 0.20 | $ 0.18 |
Weighted average number of shares | ||||
Basic (in shares) | 110,645 | 110,358 | 110,566 | 110,291 |
Effect of dilutive securities (in shares) | 929 | 968 | 998 | 976 |
Diluted (in shares) | 111,574 | 111,326 | 111,564 | 111,267 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 55,343 | $ 27,926 | $ 101,067 | $ 51,157 |
Other comprehensive income, net of tax: | ||||
Changes in net prior service credit and actuarial losses | 778 | 629 | 1,634 | 1,258 |
Change in fair value of derivatives | 587 | (135) | 197 | (475) |
Foreign currency translation | (35,621) | 30,477 | (21,821) | 37,934 |
Other comprehensive (loss) income | (34,256) | 30,971 | (19,990) | 38,717 |
Comprehensive income | $ 21,087 | $ 58,897 | $ 81,077 | $ 89,874 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 101,067 | $ 51,157 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 97,903 | 83,327 |
Rationalization charges | 1,195 | 3,923 |
Stock compensation expense | 7,420 | 7,202 |
Loss on early extinguishment of debt | 2,493 | 7,052 |
Other changes that provided (used) cash, net of effects from acquisition: | ||
Trade accounts receivable, net | (134,961) | (118,516) |
Inventories | (176,222) | (134,374) |
Trade accounts payable | 45,232 | (27,554) |
Accrued liabilities | (29,125) | (2,101) |
Other, net | (7,886) | (8,923) |
Net cash used in operating activities | (92,884) | (138,807) |
Cash flows provided by (used in) investing activities: | ||
Purchase of business, net of cash acquired | 0 | (1,022,092) |
Capital expenditures | (91,278) | (81,287) |
Other, net | 486 | 477 |
Net cash used in investing activities | (90,792) | (1,102,902) |
Cash flows provided by (used in) financing activities: | ||
Borrowings under revolving loans | 848,686 | 992,436 |
Repayments under revolving loans | (132,386) | (559,050) |
Proceeds from issuance of long-term debt | 0 | 1,789,200 |
Repayments of long-term debt | (284,638) | (744,416) |
Changes in outstanding checks - principally vendors | (87,795) | (78,941) |
Dividends paid on common stock | (22,417) | (20,253) |
Debt issuance costs | (2,866) | (16,643) |
Repurchase of common stock under stock plan | (3,057) | (3,231) |
Net cash provided by financing activities | 315,527 | 1,359,102 |
Effect of exchange rate changes on cash and cash equivalents | (4,164) | 0 |
Cash and cash equivalents: | ||
Net increase | 127,687 | 117,393 |
Balance at beginning of year | 53,533 | 24,690 |
Balance at end of period | 181,220 | 142,083 |
Interest paid, net | 62,192 | 35,686 |
Income taxes paid, net | $ 31,303 | $ 33,260 |
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 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 | 51,157 | 51,157 | ||||
Other comprehensive (loss) income | 38,717 | 38,717 | ||||
Dividends declared on common stock | (20,253) | (20,253) | ||||
Stock compensation expense | 7,202 | 7,202 | ||||
Net issuance of treasury stock for vested restricted stock units | (3,231) | (1,013) | (2,218) | |||
Net issuance of treasury stock for vested restricted stock units (in shares) | 123 | |||||
Adjustments to Additional Paid in Capital, Stock Split | $ 875 | (875) | ||||
Stock Issued During Period, Shares, Stock Splits | 55,142 | |||||
Ending Balance at Jun. 30, 2017 | 543,007 | $ 1,751 | 255,077 | 1,589,498 | (185,139) | (1,118,180) |
Ending Balance (in shares) at Jun. 30, 2017 | 110,316 | |||||
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 | 101,067 | 101,067 | ||||
Other comprehensive (loss) income | (19,990) | (19,990) | ||||
Dividends declared on common stock | (22,556) | (22,556) | ||||
Stock compensation expense | 7,420 | 7,420 | ||||
Net issuance of treasury stock for vested restricted stock units | (3,057) | (1,062) | (1,995) | |||
Net issuance of treasury stock for vested restricted stock units (in shares) | 233 | |||||
Ending Balance at Jun. 30, 2018 | $ 838,010 | $ 1,751 | $ 268,559 | $ 1,897,417 | $ (208,963) | $ (1,120,754) |
Ending Balance (in shares) at Jun. 30, 2018 | 110,618 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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. 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 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 for all contracts for which performance was not completed as of January 1, 2018. 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 $6.5 million and $13.1 million , increased selling, general and administrative expenses by $1.7 million and $3.5 million and reported other pension and postretirement income of $8.2 million and $16.6 million in our Condensed Consolidated Statement of Income for the three and six months ended June 30, 2017, respectively, 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 requires the use of one of two retrospective transition methods. We have not selected a transition method and are currently evaluating the impact of this amendment on our financial position, results of operations and cash flows. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 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. Due to the short-term duration of our production cycle, we have elected the practical expedient permitting us to exclude disclosure regarding our performance obligations with respect to outstanding purchase orders. 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 were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (Dollars in thousands) Metal containers $ 524,863 $ 529,715 $ 1,010,818 $ 995,951 Closures 378,762 349,087 749,108 546,769 Plastics 155,478 143,012 311,459 284,500 $ 1,059,103 $ 1,021,814 $ 2,071,385 $ 1,827,220 Revenues by geography were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (Dollars in thousands) North America $ 815,337 $ 802,210 $ 1,595,127 $ 1,477,048 Europe and other 243,766 219,604 476,258 350,172 $ 1,059,103 $ 1,021,814 $ 2,071,385 $ 1,827,220 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 $76.7 million as of June 30, 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 $571.8 million and our inventories would have been $897.1 million as of June 30, 2018. |
Acquisition (Notes)
Acquisition (Notes) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 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 $0.5 million and $3.0 million for the three months ended June 30, 2018 and 2017, respectively, and $1.2 million and $3.9 million for the six months ended June 30, 2018 and 2017, respectively. Under our rationalization plans, we made cash payments of $1.3 million and $2.1 million for the six months ended June 30, 2018 and 2017, respectively. Rationalization reserves as of June 30, 2018 were recorded in our Condensed Consolidated Balance Sheets as accrued liabilities and other liabilities of $0.8 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 $3.3 million are expected through 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 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 loss before reclassifications — 191 (21,821 ) (21,630 ) Amounts reclassified from accumulated other comprehensive loss 1,634 6 — 1,640 Other comprehensive loss 1,634 197 (21,821 ) (19,990 ) Balance at June 30, 2018 $ (103,188 ) $ 108 $ (105,883 ) $ (208,963 ) The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the three and six months ended June 30, 2018 were net (losses) of $(1.0) million and $(2.1) million , respectively, excluding income tax benefits of $0.3 million and $0.5 million , respectively. For the three and six months ended June 30, 2018, these net (losses) consisted of amortization of net actuarial (losses) of $(1.6) million and $(3.3) million and amortization of net prior service credit of $0.6 million and $1.2 million , respectively. 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 and six months ended June 30, 2018 were not significant. Other comprehensive income before reclassifications related to foreign currency translation for the three and six months ended June 30, 2018 consisted of (i) foreign currency (losses) related to translation of quarter end financial statements of foreign subsidiaries utilizing a functional currency other than the U.S. dollar of $(49.9) million and $(29.4) million , respectively (ii) foreign currency (losses) gains related to intra-entity foreign currency transactions that are of a long-term investment nature of $(0.4) million and $0.2 million , respectively, and (iii) foreign currency gains related to our net investment hedges of $19.2 million and $9.6 million , respectively, excluding income tax (provisions) of $(4.5) million and $(2.3) million , respectively. See Note 8 for further discussion. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: June 30, 2018 June 30, 2017 Dec. 31, 2017 (Dollars in thousands) Raw materials $ 252,792 $ 209,183 $ 233,410 Work-in-process 136,210 142,043 124,396 Finished goods 514,911 535,204 433,937 Other 12,629 12,876 12,370 916,542 899,306 804,113 Adjustment to value inventory at cost on the LIFO method (82,823 ) (68,419 ) (82,823 ) $ 833,719 $ 830,887 $ 721,290 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: June 30, 2018 June 30, 2017 Dec. 31, 2017 (Dollars in thousands) Bank debt Bank revolving loans $ 760,000 $ 609,593 $ — U.S. term loans 800,000 800,000 800,000 Canadian term loans 22,937 35,021 27,147 Other foreign bank revolving and term loans 34,914 45,357 76,798 Total bank debt 1,617,851 1,489,971 903,945 5% Senior Notes — 280,000 280,000 5½% Senior Notes 300,000 300,000 300,000 4¾% Senior Notes 300,000 300,000 300,000 3¼% Senior Notes 759,460 742,105 780,325 Total debt - principal 2,977,311 3,112,076 2,564,270 Less unamortized debt issuance costs 14,639 18,314 16,979 Total debt 2,962,672 3,093,762 2,547,291 Less current portion 788,731 648,850 108,789 $ 2,173,941 $ 2,444,912 $ 2,438,502 At June 30, 2018, the current portion of long-term debt consisted of $760.0 million of bank revolving loans under our amended and restated senior secured credit facility and $28.7 million of foreign bank revolving and term loans. On April 16, 2018, we redeemed all remaining outstanding 5% Senior Notes due 2020, or the 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 our amended and restated senior secured credit facility and cash on hand. On May 30, 2018, we and certain of our wholly owned subsidiaries entered into a First Amendment to Amended and Restated Credit Agreement, or the First Amendment, with the Lenders (as defined therein) and Wells Fargo National Association, as Administrative Agent. The First Amendment amended our amended and restated senior secured credit facility dated as of March 24, 2017, or the Credit Agreement. Pursuant to the First Amendment, the date until which revolving loans under the Credit Agreement generally may be borrowed, repaid and reborrowed from time to time was extended from March 24, 2022 to May 30, 2023. The First Amendment also extended the maturity date of the term loans under the Credit Agreement from March 24, 2023 to May 30, 2024 and provides that the term loans under the Credit Agreement are payable in installments as follows (expressed as a percentage of the original principal amount of the applicable term loan outstanding on the date that it is borrowed), with the remaining outstanding principal amounts to be repaid on the maturity date of the term loans: Date Percentage December 31, 2019 5.0 % December 31, 2020 10.0 % December 31, 2021 10.0 % December 31, 2022 10.0 % December 31, 2023 10.0 % In addition, pursuant to the First Amendment, during the period from May 30, 2018 through June 30, 2018, the applicable margin for term loans and the revolving loans under the Credit Agreement was (i) with respect to base rate and Canadian prime rate loans, 0.50 percent and (ii) with respect to Eurodollar Rate, Euro Rate and CDOR Rate loans, 1.50 percent. The applicable margin for term loans and revolving loans under the Credit Agreement will be reset quarterly based on our Total Net Leverage Ratio as provided in the Credit Agreement, beginning no sooner than July 1, 2018 (with respect to the quarterly period ended March 31, 2018). Pursuant to the First Amendment, the maximum applicable margin was decreased from 1.00 percent to 0.50 percent with respect to base rate and Canadian prime rate loans and from 2.00 percent to 1.50 percent with respect to Eurodollar Rate, Euro Rate and CDOR Rate loans. The applicable commitment fee payable by revolving borrowers on the daily average unused portion of the commitment in respect of revolving loans under the Credit Agreement was 0.30 percent per annum for the period from May 30, 2018 through June 30, 2018. Pursuant to the First Amendment, the maximum applicable commitment fee was decreased from 0.35 percent to 0.30 percent and will be reset quarterly based upon our Total Net Leverage Ratio as provided in the Credit Agreement, beginning no sooner than July 1, 2018 (with respect to the quarterly period ended March 31, 2018). Additionally, the First Amendment includes other changes to the Credit Agreement, including certain changes which provide us with additional flexibility to pursue our strategic initiatives. As a result of the redemption of the remaining outstanding 5% Notes and the First Amendment, we recorded a pre-tax charge for the loss on early extinguishment of debt of $2.5 million during the second quarter of 2018. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 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 June 30, 2018: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 181,220 $ 181,220 Liabilities: Bank debt $ 1,617,851 $ 1,617,851 5½% Senior Notes 300,000 304,524 4¾% Senior Notes 300,000 286,698 3¼% Senior Notes 759,460 770,708 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 June 30, 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, 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 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 June 30, 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 three and six months ended June 30, 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 June 30, 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 gains related to our net investment hedges included in accumulated other comprehensive loss for the three and six months ended June 30, 2018 were $19.2 million and $9.6 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of the net periodic pension benefit credit were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands) Service cost $ 3,710 $ 3,267 $ 7,431 $ 6,435 Interest cost 6,296 6,362 12,605 12,632 Expected return on plan assets (17,122 ) (15,713 ) (34,245 ) (31,426 ) Amortization of prior service cost 34 80 69 160 Amortization of actuarial losses 1,787 1,854 3,573 3,707 Net periodic benefit credit $ (5,295 ) $ (4,150 ) $ (10,567 ) $ (8,492 ) The components of the net periodic other postretirement benefit credit were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands) Service cost $ 32 $ 34 $ 63 $ 70 Interest cost 162 176 325 352 Amortization of prior service credit (650 ) (854 ) (1,299 ) (1,707 ) Amortization of actuarial gains (119 ) (136 ) (238 ) (275 ) Net periodic benefit credit $ (575 ) $ (780 ) $ (1,149 ) $ (1,560 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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. |
Capital Stock and Treasury Stoc
Capital Stock and Treasury Stock | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock On June 11, 2018, our stockholders approved an increase in the number of authorized shares of our common stock from 200,000,000 to 400,000,000 . Accordingly, on June 11, 2018 we filed a Certificate of Amendment to our Amended and Restated Certificate of Incorporation increasing the total number of shares of capital which we have authority to issue to 410,000,000 shares, consisting of 400,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value of $0.01 per share. 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 June 30, 2018. We did no t repurchase any shares of our common stock under this authorization during the six months ended June 30, 2018. During the first six months of 2018, we issued 339,972 treasury shares which had an average cost of $3.12 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 107,420 shares of our common stock at an average cost of $28.46 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 June 30, 2018, 64,494,600 shares of our common stock were held in treasury. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 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 six months of 2018, 374,810 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 $10.7 million , which is being amortized ratably over the respective vesting period from the grant date. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Reportable business segment information for the three and six months ended June 30 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended June 30, 2018 Net sales $ 524,863 $ 378,762 $ 155,478 $ — $ 1,059,103 Depreciation and amortization (1) 20,423 18,758 8,854 43 48,078 Rationalization charges 258 — 234 — 492 Segment income 48,248 47,702 13,160 (4,993 ) 104,117 Three Months Ended June 30, 2017 Net sales $ 529,715 $ 349,087 $ 143,012 $ — $ 1,021,814 Depreciation and amortization (1) 19,124 17,000 8,572 23 44,719 Rationalization charges 2,239 349 450 — 3,038 Segment income (2) 49,432 33,827 6,666 (14,692 ) 75,233 Six Months Ended June 30, 2018 Net sales $ 1,010,818 $ 749,108 $ 311,459 $ — $ 2,071,385 Depreciation and amortization (1) 40,676 37,408 17,804 64 95,952 Rationalization charges 740 39 416 — 1,195 Segment income 85,341 95,927 24,242 (9,209 ) 196,301 Six Months Ended June 30, 2017 Net sales $ 995,951 $ 546,769 $ 284,500 $ — $ 1,827,220 Depreciation and amortization (1) 37,923 26,181 17,008 46 81,158 Rationalization charges 2,962 401 560 — 3,923 Segment income (2) 93,303 57,625 13,500 (32,434 ) 131,994 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $0.9 million and $ 1.0 million for the three months ended June 30, 2018 and 2017, respectively, and $2.0 million and $2.2 million for the six months ended June 30, 2018 and 2017, respectively. (2) Segment income for Metal Containers includes a $3.0 million charge for each of the three and six months ended June 30, 2017 related to the resolution of a past non-commercial legal dispute. Segment income for Corporate includes costs attributed to announced acquisitions of $9.8 million and $23.0 million for the three and six months ended June 30, 2017, respectively. Total segment income is reconciled to income before income taxes as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands) Total segment income $ 104,117 $ 75,233 $ 196,301 $ 131,994 Interest and other debt expense 32,415 33,582 62,894 56,677 Income before income taxes $ 71,702 $ 41,651 $ 133,407 $ 75,317 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. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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. 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 | 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 for all contracts for which performance was not completed as of January 1, 2018. 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 $6.5 million and $13.1 million , increased selling, general and administrative expenses by $1.7 million and $3.5 million and reported other pension and postretirement income of $8.2 million and $16.6 million in our Condensed Consolidated Statement of Income for the three and six months ended June 30, 2017, respectively, 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 requires the use of one of two retrospective transition methods. We have not selected a transition method and are currently evaluating the impact of this amendment on our financial position, results of operations and cash flows. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Revenues by business segment were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (Dollars in thousands) Metal containers $ 524,863 $ 529,715 $ 1,010,818 $ 995,951 Closures 378,762 349,087 749,108 546,769 Plastics 155,478 143,012 311,459 284,500 $ 1,059,103 $ 1,021,814 $ 2,071,385 $ 1,827,220 Revenues by geography were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 (Dollars in thousands) North America $ 815,337 $ 802,210 $ 1,595,127 $ 1,477,048 Europe and other 243,766 219,604 476,258 350,172 $ 1,059,103 $ 1,021,814 $ 2,071,385 $ 1,827,220 |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 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 loss before reclassifications — 191 (21,821 ) (21,630 ) Amounts reclassified from accumulated other comprehensive loss 1,634 6 — 1,640 Other comprehensive loss 1,634 197 (21,821 ) (19,990 ) Balance at June 30, 2018 $ (103,188 ) $ 108 $ (105,883 ) $ (208,963 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: June 30, 2018 June 30, 2017 Dec. 31, 2017 (Dollars in thousands) Raw materials $ 252,792 $ 209,183 $ 233,410 Work-in-process 136,210 142,043 124,396 Finished goods 514,911 535,204 433,937 Other 12,629 12,876 12,370 916,542 899,306 804,113 Adjustment to value inventory at cost on the LIFO method (82,823 ) (68,419 ) (82,823 ) $ 833,719 $ 830,887 $ 721,290 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt consisted of the following: June 30, 2018 June 30, 2017 Dec. 31, 2017 (Dollars in thousands) Bank debt Bank revolving loans $ 760,000 $ 609,593 $ — U.S. term loans 800,000 800,000 800,000 Canadian term loans 22,937 35,021 27,147 Other foreign bank revolving and term loans 34,914 45,357 76,798 Total bank debt 1,617,851 1,489,971 903,945 5% Senior Notes — 280,000 280,000 5½% Senior Notes 300,000 300,000 300,000 4¾% Senior Notes 300,000 300,000 300,000 3¼% Senior Notes 759,460 742,105 780,325 Total debt - principal 2,977,311 3,112,076 2,564,270 Less unamortized debt issuance costs 14,639 18,314 16,979 Total debt 2,962,672 3,093,762 2,547,291 Less current portion 788,731 648,850 108,789 $ 2,173,941 $ 2,444,912 $ 2,438,502 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2018: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 181,220 $ 181,220 Liabilities: Bank debt $ 1,617,851 $ 1,617,851 5½% Senior Notes 300,000 304,524 4¾% Senior Notes 300,000 286,698 3¼% Senior Notes 759,460 770,708 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of the net periodic pension benefit credit were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands) Service cost $ 3,710 $ 3,267 $ 7,431 $ 6,435 Interest cost 6,296 6,362 12,605 12,632 Expected return on plan assets (17,122 ) (15,713 ) (34,245 ) (31,426 ) Amortization of prior service cost 34 80 69 160 Amortization of actuarial losses 1,787 1,854 3,573 3,707 Net periodic benefit credit $ (5,295 ) $ (4,150 ) $ (10,567 ) $ (8,492 ) The components of the net periodic other postretirement benefit credit were as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands) Service cost $ 32 $ 34 $ 63 $ 70 Interest cost 162 176 325 352 Amortization of prior service credit (650 ) (854 ) (1,299 ) (1,707 ) Amortization of actuarial gains (119 ) (136 ) (238 ) (275 ) Net periodic benefit credit $ (575 ) $ (780 ) $ (1,149 ) $ (1,560 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reportable Business Segment Information | Reportable business segment information for the three and six months ended June 30 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended June 30, 2018 Net sales $ 524,863 $ 378,762 $ 155,478 $ — $ 1,059,103 Depreciation and amortization (1) 20,423 18,758 8,854 43 48,078 Rationalization charges 258 — 234 — 492 Segment income 48,248 47,702 13,160 (4,993 ) 104,117 Three Months Ended June 30, 2017 Net sales $ 529,715 $ 349,087 $ 143,012 $ — $ 1,021,814 Depreciation and amortization (1) 19,124 17,000 8,572 23 44,719 Rationalization charges 2,239 349 450 — 3,038 Segment income (2) 49,432 33,827 6,666 (14,692 ) 75,233 Six Months Ended June 30, 2018 Net sales $ 1,010,818 $ 749,108 $ 311,459 $ — $ 2,071,385 Depreciation and amortization (1) 40,676 37,408 17,804 64 95,952 Rationalization charges 740 39 416 — 1,195 Segment income 85,341 95,927 24,242 (9,209 ) 196,301 Six Months Ended June 30, 2017 Net sales $ 995,951 $ 546,769 $ 284,500 $ — $ 1,827,220 Depreciation and amortization (1) 37,923 26,181 17,008 46 81,158 Rationalization charges 2,962 401 560 — 3,923 Segment income (2) 93,303 57,625 13,500 (32,434 ) 131,994 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $0.9 million and $ 1.0 million for the three months ended June 30, 2018 and 2017, respectively, and $2.0 million and $2.2 million for the six months ended June 30, 2018 and 2017, respectively. (2) Segment income for Metal Containers includes a $3.0 million charge for each of the three and six months ended June 30, 2017 related to the resolution of a past non-commercial legal dispute. Segment income for Corporate includes costs attributed to announced acquisitions of $9.8 million and $23.0 million for the three and six months ended June 30, 2017, respectively. |
Reconciliation of Segment Income from Operations to Income before Income Taxes | Total segment income is reconciled to income before income taxes as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in thousands) Total segment income $ 104,117 $ 75,233 $ 196,301 $ 131,994 Interest and other debt expense 32,415 33,582 62,894 56,677 Income before income taxes $ 71,702 $ 41,651 $ 133,407 $ 75,317 |
Significant Accounting Polici29
Significant Accounting Policies Revenue From Contracts with Customers ASU 2014-09 (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Summary Of Significant Accounting Policies [Line Items] | |||
Trade accounts receivable, net | $ 648,525 | $ 454,637 | $ 528,362 |
Inventories | 833,719 | 721,290 | 830,887 |
Accrued liabilities | 90,360 | 123,602 | 110,325 |
Deferred income taxes | 274,086 | 262,394 | 416,118 |
Retained earnings | 1,897,417 | $ 1,809,845 | $ 1,589,498 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Trade accounts receivable, net | 69,400 | ||
Inventories | (56,600) | ||
Accrued liabilities | 900 | ||
Deferred income taxes | 2,800 | ||
Retained earnings | $ 9,100 |
Significant Accounting Polici30
Significant Accounting Policies Net Periodic Pension Cost and Net Postretirement Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Cost of goods sold | $ 885,853 | $ 863,120 | $ 1,738,101 | $ 1,550,547 |
Selling, general and administrative expenses | 78,253 | 88,654 | 154,998 | 157,313 |
Other pension and postretirement income | $ (9,612) | (8,231) | $ (19,210) | (16,557) |
Accounting Standards Update 2017-07 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cost of goods sold | 6,500 | 13,100 | ||
Selling, general and administrative expenses | 1,700 | 3,500 | ||
Other pension and postretirement income | $ (8,200) | $ (16,600) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Net sales | $ 1,059,103 | $ 1,021,814 | $ 2,071,385 | $ 1,827,220 | |
Trade accounts receivable, net | 648,525 | 528,362 | 648,525 | 528,362 | $ 454,637 |
Inventories | 833,719 | 830,887 | 833,719 | 830,887 | $ 721,290 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Trade accounts receivable, net | 571,800 | 571,800 | |||
Inventories | 897,100 | 897,100 | |||
North America [Member] | |||||
Net sales | 815,337 | 802,210 | 1,595,127 | 1,477,048 | |
Europe and Other [Member] | |||||
Net sales | 243,766 | 219,604 | 476,258 | 350,172 | |
Metal Containers [Member] | |||||
Net sales | 524,863 | 529,715 | 1,010,818 | 995,951 | |
Closures [Member] | |||||
Net sales | 378,762 | 349,087 | 749,108 | 546,769 | |
Plastic Containers [Member] | |||||
Net sales | 155,478 | $ 143,012 | 311,459 | $ 284,500 | |
Unbilled Receivables [Member] | |||||
Contract assets | $ 76,700 | $ 76,700 |
Rationalization Charges Details
Rationalization Charges Details (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Rationalization charges | $ 492 | $ 3,038 | $ 1,195 | $ 3,923 |
Cash Payments for Restructuring | 1,300 | $ 2,100 | ||
Other Restructuring [Member] | Rationalization Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses for our rationalization plans expected primarily within the next twelve months | 1,400 | 1,400 | ||
Remaining cash expenditures for our rationalization plans expected through 2023 | 3,300 | |||
Accrued Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at June 30, 2018 | 800 | 800 | ||
Other Liabilities [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at June 30, 2018 | $ 1,100 | $ 1,100 |
Amounts Included in Accumulated
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2017 | $ (188,973) | |||
Other comprehensive loss before reclassifications | (21,630) | |||
Amounts reclassified from accumulated other comprehensive loss | 1,640 | |||
Other comprehensive loss | $ (34,256) | $ 30,971 | (19,990) | $ 38,717 |
Balance at June 30, 2018 | (208,963) | $ (185,139) | (208,963) | $ (185,139) |
Unrecognized Net Defined Benefit Plan Costs [Member] | ||||
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2017 | (104,822) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 1,634 | |||
Other comprehensive loss | 1,634 | |||
Balance at June 30, 2018 | (103,188) | (103,188) | ||
Change in Fair Value of Derivatives [Member] | ||||
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2017 | (89) | |||
Other comprehensive loss before reclassifications | 191 | |||
Amounts reclassified from accumulated other comprehensive loss | 6 | |||
Other comprehensive loss | 197 | |||
Balance at June 30, 2018 | 108 | 108 | ||
Foreign Currency Translation [Member] | ||||
Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at December 31, 2017 | (84,062) | |||
Other comprehensive loss before reclassifications | (21,821) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive loss | (21,821) | |||
Balance at June 30, 2018 | $ (105,883) | $ (105,883) |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 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 | $ (35,621) | $ 30,477 | $ (21,821) | $ 37,934 |
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 | (1,000) | (2,100) | ||
Benefit for Income Taxes | 300 | 500 | ||
Amortization of net actuarial (losses), before tax | (1,600) | (3,300) | ||
Amortization of net prior service credit, before tax | 600 | 1,200 | ||
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 | (49,900) | (29,400) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Related to Net Investment Hedges, before Reclassification and Tax | 19,200 | 9,600 | ||
Foreign currency translation, tax (provision) related to net investment hedges | (4,500) | (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 | $ (400) | $ 200 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 252,792 | $ 233,410 | $ 209,183 |
Work-in-process | 136,210 | 124,396 | 142,043 |
Finished goods | 514,911 | 433,937 | 535,204 |
Other | 12,629 | 12,370 | 12,876 |
Inventory, Gross, Total | 916,542 | 804,113 | 899,306 |
Adjustment to value inventory at cost on the LIFO method | (82,823) | (82,823) | (68,419) |
Inventories | $ 833,719 | $ 721,290 | $ 830,887 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Apr. 16, 2018 | Jun. 30, 2018 | May 29, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||||
Total debt - principal | $ 2,977,311 | $ 2,977,311 | $ 3,112,076 | $ 2,977,311 | $ 3,112,076 | $ 2,564,270 | ||
Less unamortized debt issuance costs | 14,639 | 14,639 | 18,314 | 14,639 | 18,314 | 16,979 | ||
Debt long term and short term less unamortized debt issuance costs combined amount | 2,962,672 | 2,962,672 | 3,093,762 | 2,962,672 | 3,093,762 | 2,547,291 | ||
Less current portion | 788,731 | 788,731 | 648,850 | 788,731 | 648,850 | 108,789 | ||
Long-term debt | $ 2,173,941 | 2,173,941 | 2,444,912 | 2,173,941 | 2,444,912 | 2,438,502 | ||
Loss on early extinguishment of debt | 2,493 | 4,375 | 2,493 | 7,052 | ||||
Term Loans and Revolving Loans Maintained as Base Rate or Canadian Prime Rate Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Term Loans and Revolving Loans Maintained as Base Rate or Canadian Prime Rate Loans [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | 1.00% | ||||||
Term Loans And Revolving Loans Maintained as Eurodollar Rate, Euro Rate or CDOR Rate Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Term Loans And Revolving Loans Maintained as Eurodollar Rate, Euro Rate or CDOR Rate Loans [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 2.00% | ||||||
Bank debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | $ 1,617,851 | 1,617,851 | 1,489,971 | 1,617,851 | 1,489,971 | 903,945 | ||
5% Senior Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | 0 | 0 | 280,000 | 0 | 280,000 | 280,000 | ||
5 1/2% Senior Notes due 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | ||
4 3/4% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | ||
3 1/4% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | $ 759,460 | 759,460 | 742,105 | 759,460 | 742,105 | 780,325 | ||
Revolving Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |||||||
Revolving Loan [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | 0.35% | ||||||
Revolving Loan [Member] | Bank debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | $ 760,000 | 760,000 | 609,593 | 760,000 | 609,593 | 0 | ||
Less current portion | 760,000 | 760,000 | 760,000 | |||||
U S Term Loans [Member] | Bank debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | 800,000 | 800,000 | 800,000 | 800,000 | 800,000 | 800,000 | ||
Canadian Term Loans [Member] | Bank debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | 22,937 | 22,937 | 35,021 | 22,937 | 35,021 | 27,147 | ||
Other Foreign Bank Revolving And Term Loans [Member] | Bank debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt - principal | 34,914 | 34,914 | $ 45,357 | 34,914 | $ 45,357 | $ 76,798 | ||
Less current portion | $ 28,700 | $ 28,700 | $ 28,700 | |||||
Senior Notes [Member] | 5% Senior Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior note interest rate (percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||
Early Repayment of Senior Debt | $ 280,000 | |||||||
Debt Instrument, Redemption Price, Percentage Plus Accrued and Unpaid Interest | 100.00% | |||||||
Senior Notes [Member] | 5 1/2% Senior Notes due 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior note interest rate (percent) | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | ||
Senior Notes [Member] | 4 3/4% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior note interest rate (percent) | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | ||
Senior Notes [Member] | 3 1/4% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior note interest rate (percent) | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | ||
Revolving And Term Loans [Member] | 5% Senior Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on early extinguishment of debt | $ 2,500 | |||||||
Debt Instrument, Redemption, December 31, 2019 | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 5.00% | |||||||
Debt Instrument, Redemption, December 31, 2020 | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10.00% | |||||||
Debt Instrument, Redemption, December 31, 2021 | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10.00% | |||||||
Debt Instrument, Redemption, December 31, 2022 | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10.00% | |||||||
Debt Instrument, Redemption, December 31, 2023 | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10.00% |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
USD Interest Rate Swap Contract One [Member] | ||||
Derivative [Line Items] | ||||
Notional principal amount of outstanding of the interest rate swap agreement | $ 50,000 | $ 50,000 | ||
Fixed interest rate | 2.878% | 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 | $ 50,000 | ||
Fixed interest rate | 2.878% | 2.878% | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Cash and cash equivalents | $ 181,220 | $ 181,220 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Cash and cash equivalents | 181,220 | 181,220 | ||
Bank debt [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Long-Term Debt | 1,617,851 | 1,617,851 | ||
Bank debt [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Long-Term Debt | 1,617,851 | 1,617,851 | ||
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 | 304,524 | 304,524 | ||
4 3/4% Senior Notes due 2025 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Long-Term Debt | 300,000 | 300,000 | ||
4 3/4% Senior Notes due 2025 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Long-Term Debt | 286,698 | 286,698 | ||
3 1/4% Senior Notes due 2025 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Long-Term Debt | 759,460 | 759,460 | ||
3 1/4% Senior Notes due 2025 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Derivative [Line Items] | ||||
Long-Term Debt | $ 770,708 | $ 770,708 | ||
5% Senior Notes due 2020 [Member] | Senior Notes [Member] | ||||
Derivative [Line Items] | ||||
Senior note interest rate (percent) | 5.00% | 5.00% | 5.00% | 5.00% |
5 1/2% Senior Notes due 2022 [Member] | Senior Notes [Member] | ||||
Derivative [Line Items] | ||||
Senior note interest rate (percent) | 5.50% | 5.50% | 5.50% | 5.50% |
3 1/4% Senior Notes due 2025 [Member] | Senior Notes [Member] | ||||
Derivative [Line Items] | ||||
Senior note interest rate (percent) | 3.25% | 3.25% | 3.25% | 3.25% |
4 3/4% Senior Notes due 2025 [Member] | Senior Notes [Member] | ||||
Derivative [Line Items] | ||||
Senior note interest rate (percent) | 4.75% | 4.75% | 4.75% | 4.75% |
Accumulated Translation Adjustment [Member] | ||||
Derivative [Line Items] | ||||
Foreign currency gains of net investment hedges included in accumulated other comprehensive loss | $ 19,200 | $ 9,600 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3,710 | $ 3,267 | $ 7,431 | $ 6,435 |
Interest cost | 6,296 | 6,362 | 12,605 | 12,632 |
Expected return on plan assets | (17,122) | (15,713) | (34,245) | (31,426) |
Amortization of prior service cost (credit) | 34 | 80 | 69 | 160 |
Amortization of actuarial losses (gains) | 1,787 | 1,854 | 3,573 | 3,707 |
Net periodic benefit credit | (5,295) | (4,150) | (10,567) | (8,492) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 32 | 34 | 63 | 70 |
Interest cost | 162 | 176 | 325 | 352 |
Amortization of prior service cost (credit) | (650) | (854) | (1,299) | (1,707) |
Amortization of actuarial losses (gains) | (119) | (136) | (238) | (275) |
Net periodic benefit credit | $ (575) | $ (780) | $ (1,149) | $ (1,560) |
Capital Stock and Treasury St39
Capital Stock and Treasury Stock - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 11, 2018 | Jun. 10, 2018 | Oct. 17, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Common Stock, Shares Authorized | 400,000,000 | 200,000,000 | ||
Common Stock, Par Value Per Share | $ 0.01 | |||
Preferred Stock, Shares Authorized | 10,000,000 | |||
Preferred Stock, Par Value Per Share | $ 0.01 | |||
Common Stock, Capital Shares Reserved for Issuance | 410,000,000 | |||
Aggregate stock authorized for repurchase program (shares) | $ 300,000,000 | |||
Remaining authorized repurchase amount | $ 129,400,000 | |||
Shares repurchased (shares) | 0 | |||
Treasury stock (shares) | 64,494,600 | |||
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 | 339,972 | |||
Average cost of treasury shares that were issued for restricted stock units that vested during the period (usd per share) | $ 3.12 | |||
Shares repurchased to satisfy minimum employee withholding tax requirements resulting from the vesting of such restricted stock units (shares) | 107,420 | |||
Average cost per share of treasury stock acquired to satisfy minimum employee withholding requirements (usd per share) | $ 28.46 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - Restricted stock units [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units granted | shares | 374,810 |
Fair value of restricted stock units granted | $ | $ 10.7 |
Reportable Business Segment Inf
Reportable Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,059,103 | $ 1,021,814 | $ 2,071,385 | $ 1,827,220 | ||
Depreciation and amortization | [1] | 48,078 | 44,719 | 95,952 | 81,158 | |
Rationalization charges | 492 | 3,038 | 1,195 | 3,923 | ||
Segment Income | 104,117 | 75,233 | 196,301 | 131,994 | ||
Amortization of debt issuance costs excluded from depreciation and amortization | 900 | 1,000 | 2,000 | 2,200 | ||
Metal Containers [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 524,863 | 529,715 | 1,010,818 | 995,951 | ||
Depreciation and amortization | [1] | 20,423 | 19,124 | 40,676 | 37,923 | |
Rationalization charges | 258 | 2,239 | 740 | 2,962 | ||
Segment Income | 48,248 | 49,432 | [2] | 85,341 | 93,303 | |
Payments for Legal Settlements | 3,000 | 3,000 | ||||
Closures [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 378,762 | 349,087 | 749,108 | 546,769 | ||
Depreciation and amortization | [1] | 18,758 | 17,000 | 37,408 | 26,181 | |
Rationalization charges | 0 | 349 | 39 | 401 | ||
Segment Income | 47,702 | 33,827 | 95,927 | 57,625 | ||
Plastic Containers [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 155,478 | 143,012 | 311,459 | 284,500 | ||
Depreciation and amortization | [1] | 8,854 | 8,572 | 17,804 | 17,008 | |
Rationalization charges | 234 | 450 | 416 | 560 | ||
Segment Income | 13,160 | 6,666 | 24,242 | 13,500 | ||
Corporate [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | [1] | 43 | 23 | 64 | 46 | |
Rationalization charges | 0 | 0 | 0 | 0 | ||
Segment Income | $ (4,993) | (14,692) | [2] | $ (9,209) | (32,434) | |
Costs attributed to announced acquisitions | $ 9,800 | $ 23,000 | ||||
[1] | Depreciation and amortization excludes amortization of debt issuance costs of $0.9 million and $1.0 million for the three months ended June 30, 2018 and 2017, respectively, and $2.0 million and $2.2 million for the six months ended June 30, 2018 and 2017, respectively. | |||||
[2] | Segment income for Metal Containers includes a $3.0 million charge for each of the three and six months ended June 30, 2017 related to the resolution of a past non-commercial legal dispute. Segment income for Corporate includes costs attributed to announced acquisitions of $9.8 million and $23.0 million for the three and six months ended June 30, 2017, respectively. |
Reconciliation of Segment Incom
Reconciliation of Segment Income to Income before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Segment Income | $ 104,117 | $ 75,233 | $ 196,301 | $ 131,994 |
Interest and other debt expense | 32,415 | 33,582 | 62,894 | 56,677 |
Income before income taxes | $ 71,702 | $ 41,651 | $ 133,407 | $ 75,317 |