Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SLGN | |
Entity Registrant Name | Silgan Holdings Inc | |
Entity Central Index Key | 0000849869 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 111,142,513 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 141,400 | $ 72,819 | $ 174,540 |
Trade accounts receivable, net | 596,601 | 511,332 | 578,584 |
Inventories | 686,213 | 634,806 | 743,286 |
Prepaid expenses and other current assets | 70,622 | 71,177 | 72,127 |
Total current assets | 1,494,836 | 1,290,134 | 1,568,537 |
Property, plant and equipment, net | 1,511,718 | 1,517,510 | 1,502,880 |
Goodwill | 1,141,202 | 1,148,302 | 1,183,678 |
Other intangible assets, net | 374,809 | 383,448 | 413,240 |
Other assets, net | 402,008 | 239,900 | 284,152 |
Assets, Total | 4,924,573 | 4,579,294 | 4,952,487 |
Current liabilities: | |||
Revolving loans and current portion of long-term debt | 578,001 | 170,214 | 758,652 |
Trade accounts payable | 536,909 | 712,739 | 552,707 |
Accrued payroll and related costs | 61,874 | 68,773 | 66,764 |
Accrued liabilities | 122,001 | 127,342 | 81,173 |
Total current liabilities | 1,298,785 | 1,079,068 | 1,459,296 |
Long-term debt | 2,113,575 | 2,134,400 | 2,174,709 |
Deferred income taxes | 273,345 | 268,036 | 268,023 |
Other liabilities | 338,661 | 216,525 | 225,668 |
Stockholders’ equity: | |||
Common stock | 1,751 | 1,751 | 1,751 |
Paid-in capital | 276,435 | 276,062 | 265,022 |
Retained earnings | 2,031,487 | 1,997,785 | 1,853,351 |
Accumulated other comprehensive loss | (272,431) | (268,808) | (174,707) |
Treasury stock | (1,137,035) | (1,125,525) | (1,120,626) |
Total stockholders’ equity | 900,207 | 881,265 | 824,791 |
Liabilities and Equity, Total | $ 4,924,573 | $ 4,579,294 | $ 4,952,487 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Sales | $ 1,027,131 | $ 1,012,280 |
Cost of Goods and Services Sold | 861,134 | 852,246 |
Gross profit | 165,997 | 160,034 |
Selling, general and administrative expenses | 77,662 | 76,747 |
Rationalization charges | 6,083 | 703 |
Other pension and postretirement income | (4,490) | (9,598) |
Income before interest and income taxes | 86,742 | 92,182 |
Interest and other debt expense | 27,103 | 30,481 |
Income before income taxes | 59,639 | 61,701 |
Provision for income taxes | 12,897 | 15,980 |
Net income | $ 46,742 | $ 45,721 |
Earnings per share | ||
Basic net income per share (usd per share) | $ 0.42 | $ 0.41 |
Diluted net income per share (usd per share) | 0.42 | 0.41 |
Dividends per share (usd per share) | $ 0.11 | $ 0.10 |
Weighted average number of shares | ||
Basic (in shares) | 110,709 | 110,492 |
Effect of dilutive securities (in shares) | 883 | 1,066 |
Diluted (in shares) | 111,592 | 111,558 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 46,742 | $ 45,721 |
Other comprehensive (loss) income, net of tax: | ||
Changes in net prior service credit and actuarial losses | 2,506 | 856 |
Change in fair value of derivatives | (887) | (390) |
Foreign currency translation | (5,242) | 13,800 |
Other comprehensive (loss) income | (3,623) | 14,266 |
Comprehensive income | $ 43,119 | $ 59,987 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 46,742 | $ 45,721 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 51,232 | 48,931 |
Rationalization charges | 6,083 | 703 |
Stock compensation expense | 3,909 | 3,700 |
Other changes that provided (used) cash: | ||
Trade accounts receivable, net | (88,594) | (49,615) |
Inventories | (53,793) | (74,451) |
Trade accounts payable | (81,242) | (16,077) |
Accrued liabilities | (51,321) | (41,215) |
Other, net | 11,198 | (7,816) |
Net cash used in operating activities | (155,786) | (90,119) |
Cash flows provided by (used in) investing activities: | ||
Capital expenditures | (61,746) | (49,196) |
Other, net | 20 | 800 |
Net cash used in investing activities | (61,726) | (48,396) |
Cash flows provided by (used in) financing activities: | ||
Borrowings under revolving loans | 614,103 | 444,595 |
Repayments under revolving loans | (205,856) | (79,821) |
Repayments of long-term debt | (8,161) | (4,638) |
Changes in outstanding checks - principally vendors | (83,670) | (87,795) |
Dividends paid on common stock | (14,161) | (11,333) |
Repurchase of common stock under stock plan | (15,046) | (2,746) |
Net cash provided by financing activities | 287,209 | 258,262 |
Effect of exchange rate changes on cash and cash equivalents | (1,116) | 1,260 |
Cash and cash equivalents: | ||
Net increase | 68,581 | 121,007 |
Balance at beginning of year | 72,819 | 53,533 |
Balance at end of period | 141,400 | 174,540 |
Interest paid, net | 39,969 | 39,953 |
Income taxes paid, net | $ 16,933 | $ 21,835 |
Condensed Consolidated Statem_4
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, 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 | ||||||
Net income | 45,721 | 45,721 | ||||
Other comprehensive (loss) income | 14,266 | 14,266 | ||||
Dividends declared on common stock | $ (11,276) | (11,276) | ||||
Dividends per share (usd per share) | $ 0.10 | |||||
Stock compensation expense | $ 3,700 | 3,700 | ||||
Net issuance of treasury stock for vested restricted stock units (in shares) | 184 | |||||
Net issuance of treasury stock for vested restricted stock units | (2,746) | (879) | (1,867) | |||
Adoption of accounting standards update related to revenue recognition | 9,061 | 9,061 | ||||
Ending Balance at Mar. 31, 2018 | 824,791 | $ 1,751 | 265,022 | 1,853,351 | (174,707) | (1,120,626) |
Ending Balance (in shares) at Mar. 31, 2018 | 110,569 | |||||
Beginning Balance at Dec. 31, 2018 | 881,265 | $ 1,751 | 276,062 | 1,997,785 | (268,808) | (1,125,525) |
Beginning Balance (in shares) at Dec. 31, 2018 | 110,430 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 46,742 | 46,742 | ||||
Other comprehensive (loss) income | (3,623) | (3,623) | ||||
Dividends declared on common stock | $ (12,447) | (12,447) | ||||
Dividends per share (usd per share) | $ 0.11 | |||||
Stock compensation expense | $ 3,909 | 3,909 | ||||
Net issuance of treasury stock for vested restricted stock units (in shares) | 698 | |||||
Net issuance of treasury stock for vested restricted stock units | (15,046) | (3,536) | (11,510) | |||
Adoption of accounting standards update related to leases | (593) | (593) | ||||
Ending Balance at Mar. 31, 2019 | $ 900,207 | $ 1,751 | $ 276,435 | $ 2,031,487 | $ (272,431) | $ (1,137,035) |
Ending Balance (in shares) at Mar. 31, 2019 | 111,128 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 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, 2018. Recently Adopted Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, that amends existing guidance for certain leases by lessees. This amendment required us 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. We adopted this amendment on January 1, 2019 using the transition method, which allowed us to recognize the effects of applying this amendment as a cumulative effect to retained earnings as of January 1, 2019. We elected certain practical expedients permitted under the transition guidance for this amendment, which did not require us to reassess whether other contracts contain leases and allowed us to carryforward our lease classifications determined under the previous guidance. In addition, we elected to retain our previously determined assumptions concerning options to extend or terminate our leases. As a result of the adoption of this amendment, we recognized additional long-term assets of $160.8 million , additional related lease liabilities of $161.4 million and reduced retained earnings by $0.6 million all on January 1, 2019. The adoption of this amendment did not have a material impact on our results of operations or cash flows. See Note 2 for further information. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have noncancelable operating leases for office and plant facilities, equipment and automobiles that expire at various dates through 2040. Certain operating leases have renewal options and rent escalation clauses as well as various purchase options. Lease right-of-use assets represent the right to use an underlying asset pursuant to the lease for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease right-of-use assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease right-of-use asset, unless an implicit rate is readily determinable. We combine lease and certain non-lease components in determining the lease payments subject to the initial present value calculation. Lease right-of-use assets include upfront lease payments and exclude lease incentives, where applicable. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for operating leases consists of both fixed and variable components. Expense related to fixed lease payments are recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred, where applicable, and include certain index-based changes in rent, certain non-lease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The depreciable life of lease right-of-use assets is generally the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise for such assets. We recognized total lease expense of $16.5 million for the three months ended March 31, 2019 primarily related to operating lease costs paid to lessors from operating cash flows. We did not recognize any new significant leases in our Condensed Consolidated Balance Sheet for the quarter ended March 31, 2019. The aggregate annual maturities of operating lease liabilities are as follows (dollars in thousands): Nine months ended December 31, 2019 $ 32,434 2020 38,124 2021 31,297 2022 24,010 2023 20,164 Thereafter 58,097 Total lease payments 204,126 Less imputed interest (36,026 ) Total $ 168,100 Operating lease right-of-use assets as of March 31, 2019 were recorded in our Condensed Consolidated Balance Sheets as other assets, net of $160.2 million . Operating lease liabilities of $168.1 million as of March 31, 2019 were recorded in our Condensed Consolidated Balance Sheets as accrued liabilities of $33.7 million and other liabilities of $134.4 million . At March 31, 2019, our operating leases had a weighted average discount rate of 5.8 percent and a weighted average remaining lease term of approximately six years . To a lesser extent, we have certain leases that qualify as finance leases. Finance lease right-of-use assets as of March 31, 2019 were recorded in our Condensed Consolidated Balance Sheets as property, plant and equipment, net of $22.6 million . Finance lease liabilities of $22.2 million as of March 31, 2019 were recorded in our Condensed Consolidated Balance Sheets as revolving loans and current portion of long term-debt of $1.1 million and long-term debt of $21.1 million . At March 31, 2019, we did not have any significant operating or finance leases that had not commenced. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue | Revenue The following tables present our revenues disaggregated by reportable business segment and geography as they best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenues by business segment for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Metal containers $ 507,062 $ 485,954 Closures 356,199 370,345 Plastics 163,870 155,981 $ 1,027,131 $ 1,012,280 Revenues by geography for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) North America $ 810,741 $ 779,790 Europe and other 216,390 232,490 $ 1,027,131 $ 1,012,280 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 $75.3 million , $73.6 million , and $72.5 million as of March 31, 2019 and 2018 and December 31, 2018, respectively. Unbilled receivables are included in trade accounts receivable, net on our Condensed Consolidated Balance Sheet. |
Rationalization Charges
Rationalization Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Rationalization Charges | Rationalization Charges We continually evaluate cost reduction opportunities across each of our businesses, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Rationalization charges by business segment for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Metal containers $ 222 $ 482 Closures 5,660 39 Plastic containers 201 182 $ 6,083 $ 703 Rationalization charges in 2019 for the closures business were primarily related to the announced shutdown of the Torello, Spain metal closures manufacturing facility. Activity in reserves for our rationalization plans for the three months ended March 31 was as follows: Employee Severance and Benefits Plant Exit Costs Non-Cash Asset Write-Down Total (Dollars in thousands) Balance at December 31, 2018 $ 130 $ 1,482 $ — $ 1,612 Charged to expense 3,152 205 2,726 6,083 Utilized and currency translation (392 ) (379 ) (2,726 ) (3,497 ) Balance at March 31, 2019 $ 2,890 $ 1,308 $ — $ 4,198 Rationalization reserves as of March 31, 2019 were recorded in our Condensed Consolidated Balance Sheets as accrued liabilities of $3.5 million and other liabilities of $0.7 million . Remaining expenses for our rationalization plans of $4.1 million are expected primarily in 2019. Remaining cash expenditures for our rationalization plans of $8.3 million are expected through 2023. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 $ (154,466 ) $ (1,008 ) $ (113,334 ) $ (268,808 ) Other comprehensive loss before reclassifications — (887 ) (5,242 ) (6,129 ) Amounts reclassified from accumulated other comprehensive loss 2,506 — — 2,506 Other comprehensive loss 2,506 (887 ) (5,242 ) (3,623 ) Balance at March 31, 2019 $ (151,960 ) $ (1,895 ) $ (118,576 ) $ (272,431 ) The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the three months ended March 31, 2019 were net (losses) of $(3.4) million , excluding an income tax benefit of $0.9 million . These net (losses) consisted of amortization of net actuarial (losses) of $(4.0) million and amortization of net prior service credit of $0.6 million . Amortization of net actuarial losses and net prior service credit was recorded in other pension and postretirement income in our Condensed Consolidated Statements of Income. See Note 10 for further information. The amounts reclassified to earnings from the change in fair value of derivatives component of accumulated other comprehensive loss for the three months ended March 31, 2019 were not significant. Other comprehensive income before reclassifications related to foreign currency translation for the three months ended March 31, 2019 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 $(11.3) million , (ii) foreign currency gains related to intra-entity foreign currency transactions that are of a long-term investment nature of $0.7 million and (iii) foreign currency gains related to our net investment hedges of $7.0 million , excluding an income tax provision of $(1.6) million . See Note 8 for further discussion. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: March 31, 2019 March 31, 2018 Dec. 31, 2018 (Dollars in thousands) Raw materials $ 244,859 $ 230,847 $ 288,860 Work-in-process 135,685 133,271 123,574 Finished goods 418,702 449,133 335,180 Other 12,850 12,858 13,075 812,096 826,109 760,689 Adjustment to value inventory at cost on the LIFO method (125,883 ) (82,823 ) (125,883 ) $ 686,213 $ 743,286 $ 634,806 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: March 31, 2019 March 31, 2018 Dec. 31, 2018 (Dollars in thousands) Bank debt Bank revolving loans $ 506,000 $ 415,000 $ — U.S. term loans 800,000 800,000 800,000 Canadian term loans 15,825 23,362 22,103 Other foreign bank revolving and term loans 30,906 30,135 129,697 Total bank debt 1,352,731 1,268,497 951,800 5% Senior Notes — 280,000 — 5½% Senior Notes 300,000 300,000 300,000 4¾% Senior Notes 300,000 300,000 300,000 3¼% Senior Notes 729,170 801,060 744,380 Finance leases 22,167 — 21,543 Total debt - principal 2,704,068 2,949,557 2,317,723 Less unamortized debt issuance costs 12,492 16,196 13,109 Total debt 2,691,576 2,933,361 2,304,614 Less current portion 578,001 758,652 170,214 $ 2,113,575 $ 2,174,709 $ 2,134,400 At March 31, 2019, the current portion of long-term debt consisted of $506.0 million of bank revolving loans under our amended and restated senior secured credit facility, or the Credit Agreement, $40.0 million of term loans under the Credit Agreement, $30.9 million of foreign bank revolving and term loans and $1.1 million of finance leases. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Financial Instruments The financial instruments recorded in our Condensed Consolidated Balance Sheets include cash and cash equivalents, trade accounts receivable, trade accounts payable, debt obligations and swap agreements. Due to their short-term maturity, the carrying amounts of trade accounts receivable and trade accounts payable approximate their fair market values. The following table summarizes the carrying amounts and estimated fair values of our other financial instruments at March 31, 2019: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 141,400 $ 141,400 Liabilities: Bank debt $ 1,352,731 $ 1,352,731 5½% Senior Notes 300,000 303,069 4¾% Senior Notes 300,000 296,565 3¼% Senior Notes 729,170 755,056 Derivative instruments (accrued and other liabilities) 2,477 2,477 Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP classifies the inputs used to measure fair value into a hierarchy consisting of three levels. Level 1 inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 inputs represent unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs represent unobservable inputs for the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Financial Instruments Measured at Fair Value The financial assets and liabilities that were measured on a recurring basis at March 31, 2019 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 and mature on March 24, 2023. The difference between amounts to be paid or received on our interest rate swap agreements is recorded in interest and other debt expense in our Condensed Consolidated Statements of Income and was not significant for the quarter ended March 31, 2019. These agreements are with financial institutions which are expected to fully perform under the terms thereof. The total fair value of our interest rate swap agreements in effect at March 31, 2019 was not significant. Natural Gas Swap Agreements We have entered into natural gas swap agreements with a major financial institution to manage a portion of our exposure to fluctuations in natural gas prices. The difference between amounts to be paid or received on our natural gas swap agreements is recorded in cost of goods sold in our Condensed Consolidated Statements of Income and was not significant for the quarter ended March 31, 2019. These agreements are with financial institutions which are expected to fully perform under the terms thereof. The total fair value of our natural gas swap agreements in effect at March 31, 2019 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 months ended March 31, 2019 were $7.0 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 continued early stage of the investigation, we cannot reasonably assess what actions may result from these investigations or estimate what costs we may incur as a result thereof. We are a party to other legal proceedings, contract disputes and claims arising in the ordinary course of our business. We are not a party to, and none of our properties are subject to, any pending legal proceedings which could have a material adverse effect on our business or financial condition. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of the net periodic pension benefit credit for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Service cost $ 3,258 $ 3,721 Interest cost 7,049 6,309 Expected return on plan assets (15,113 ) (17,123 ) Amortization of prior service cost 19 35 Amortization of actuarial losses 4,119 1,786 Net periodic benefit credit $ (668 ) $ (5,272 ) The components of the net periodic other postretirement benefit credit for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Service cost $ 22 $ 31 Interest cost 185 163 Amortization of prior service credit (582 ) (649 ) Amortization of actuarial gains (167 ) (119 ) Net periodic benefit credit $ (542 ) $ (574 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
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, is completing its review of the 2017 tax year. We expect no material change to our filed federal income tax return for 2017. We have been accepted into the Compliance Assurance Program for the 2018 and 2019 tax years which provides for the review by the IRS of tax matters relating to our tax return prior to filing. In the next twelve months, it is reasonably possible that our reserve for unrecognized tax benefits will decrease by approximately $4.0 million primarily related to tax attributes acquired from and expenses related to certain acquisitions, as we anticipate the expiration of the applicable statutes of limitation with respect to certain tax matters and resolving certain other outstanding tax matters with the IRS. |
Treasury Stock
Treasury Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock On October 17, 2016, our Board of Directors authorized the repurchase by us of up to an aggregate of $300.0 million of our common stock by various means from time to time through and including December 31, 2021, of which we had approximately $124.6 million remaining under this authorization for the repurchase of our common stock at March 31, 2019. We did not repurchase any shares of our common stock under this authorization during the three months ended March 31, 2019. During the first three months of 2019, we issued 1,227,240 treasury shares which had an average cost of $2.88 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 528,687 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 March 31, 2019, 63,984,347 shares of our common stock were held in treasury. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We currently have one stock-based compensation plan in effect under which we have issued options and restricted stock units to our officers, other key employees and outside directors. During the first three months of 2019, 1,054,700 restricted stock units were granted to certain of our officers and other key employees. The fair value of these restricted stock units at the grant date was $30.0 million , which is being amortized ratably over the respective vesting period from the grant date. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Reportable business segment information for the three months ended March 31 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended March 31, 2019 Net sales $ 507,062 $ 356,199 $ 163,870 $ — $ 1,027,131 Depreciation and amortization (1) 21,107 20,354 8,816 41 50,318 Rationalization charges 222 5,660 201 — 6,083 Segment income 38,897 40,256 12,066 (4,477 ) 86,742 Three Months Ended March 31, 2018 Net sales $ 485,954 $ 370,345 $ 155,981 $ — $ 1,012,280 Depreciation and amortization (1) 20,254 18,650 8,950 22 47,876 Rationalization charges 482 39 182 — 703 Segment income 37,093 48,224 11,082 (4,217 ) 92,182 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $0.9 million and $1.1 million for the three months ended March 31, 2019 and 2018, respectively. Total segment income is reconciled to income before income taxes as follows: 2019 2018 (Dollars in thousands) Total segment income $ 86,742 $ 92,182 Interest and other debt expense 27,103 30,481 Income before income taxes $ 59,639 $ 61,701 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 Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 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, 2018. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, that amends existing guidance for certain leases by lessees. This amendment required us 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. We adopted this amendment on January 1, 2019 using the transition method, which allowed us to recognize the effects of applying this amendment as a cumulative effect to retained earnings as of January 1, 2019. We elected certain practical expedients permitted under the transition guidance for this amendment, which did not require us to reassess whether other contracts contain leases and allowed us to carryforward our lease classifications determined under the previous guidance. In addition, we elected to retain our previously determined assumptions concerning options to extend or terminate our leases. As a result of the adoption of this amendment, we recognized additional long-term assets of $160.8 million , additional related lease liabilities of $161.4 million and reduced retained earnings by $0.6 million all on January 1, 2019. The adoption of this amendment did not have a material impact on our results of operations or cash flows. See Note 2 for further information. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The aggregate annual maturities of operating lease liabilities are as follows (dollars in thousands): Nine months ended December 31, 2019 $ 32,434 2020 38,124 2021 31,297 2022 24,010 2023 20,164 Thereafter 58,097 Total lease payments 204,126 Less imputed interest (36,026 ) Total $ 168,100 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Revenues by business segment for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Metal containers $ 507,062 $ 485,954 Closures 356,199 370,345 Plastics 163,870 155,981 $ 1,027,131 $ 1,012,280 Revenues by geography for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) North America $ 810,741 $ 779,790 Europe and other 216,390 232,490 $ 1,027,131 $ 1,012,280 |
Rationalization Charges (Tables
Rationalization Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Activity in Rationalization Plan Reserves | Rationalization charges by business segment for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Metal containers $ 222 $ 482 Closures 5,660 39 Plastic containers 201 182 $ 6,083 $ 703 Rationalization charges in 2019 for the closures business were primarily related to the announced shutdown of the Torello, Spain metal closures manufacturing facility. Activity in reserves for our rationalization plans for the three months ended March 31 was as follows: Employee Severance and Benefits Plant Exit Costs Non-Cash Asset Write-Down Total (Dollars in thousands) Balance at December 31, 2018 $ 130 $ 1,482 $ — $ 1,612 Charged to expense 3,152 205 2,726 6,083 Utilized and currency translation (392 ) (379 ) (2,726 ) (3,497 ) Balance at March 31, 2019 $ 2,890 $ 1,308 $ — $ 4,198 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 $ (154,466 ) $ (1,008 ) $ (113,334 ) $ (268,808 ) Other comprehensive loss before reclassifications — (887 ) (5,242 ) (6,129 ) Amounts reclassified from accumulated other comprehensive loss 2,506 — — 2,506 Other comprehensive loss 2,506 (887 ) (5,242 ) (3,623 ) Balance at March 31, 2019 $ (151,960 ) $ (1,895 ) $ (118,576 ) $ (272,431 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: March 31, 2019 March 31, 2018 Dec. 31, 2018 (Dollars in thousands) Raw materials $ 244,859 $ 230,847 $ 288,860 Work-in-process 135,685 133,271 123,574 Finished goods 418,702 449,133 335,180 Other 12,850 12,858 13,075 812,096 826,109 760,689 Adjustment to value inventory at cost on the LIFO method (125,883 ) (82,823 ) (125,883 ) $ 686,213 $ 743,286 $ 634,806 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt consisted of the following: March 31, 2019 March 31, 2018 Dec. 31, 2018 (Dollars in thousands) Bank debt Bank revolving loans $ 506,000 $ 415,000 $ — U.S. term loans 800,000 800,000 800,000 Canadian term loans 15,825 23,362 22,103 Other foreign bank revolving and term loans 30,906 30,135 129,697 Total bank debt 1,352,731 1,268,497 951,800 5% Senior Notes — 280,000 — 5½% Senior Notes 300,000 300,000 300,000 4¾% Senior Notes 300,000 300,000 300,000 3¼% Senior Notes 729,170 801,060 744,380 Finance leases 22,167 — 21,543 Total debt - principal 2,704,068 2,949,557 2,317,723 Less unamortized debt issuance costs 12,492 16,196 13,109 Total debt 2,691,576 2,933,361 2,304,614 Less current portion 578,001 758,652 170,214 $ 2,113,575 $ 2,174,709 $ 2,134,400 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Summary of Carrying Amounts and Estimated Fair Values of Other Financial Instruments | The following table summarizes the carrying amounts and estimated fair values of our other financial instruments at March 31, 2019: Carrying Amount Fair Value (Dollars in thousands) Assets: Cash and cash equivalents $ 141,400 $ 141,400 Liabilities: Bank debt $ 1,352,731 $ 1,352,731 5½% Senior Notes 300,000 303,069 4¾% Senior Notes 300,000 296,565 3¼% Senior Notes 729,170 755,056 Derivative instruments (accrued and other liabilities) 2,477 2,477 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of the net periodic pension benefit credit for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Service cost $ 3,258 $ 3,721 Interest cost 7,049 6,309 Expected return on plan assets (15,113 ) (17,123 ) Amortization of prior service cost 19 35 Amortization of actuarial losses 4,119 1,786 Net periodic benefit credit $ (668 ) $ (5,272 ) The components of the net periodic other postretirement benefit credit for the three months ended March 31 were as follows: 2019 2018 (Dollars in thousands) Service cost $ 22 $ 31 Interest cost 185 163 Amortization of prior service credit (582 ) (649 ) Amortization of actuarial gains (167 ) (119 ) Net periodic benefit credit $ (542 ) $ (574 ) |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Business Segment Information | Reportable business segment information for the three months ended March 31 was as follows: Metal Containers Closures Plastic Containers Corporate Total (Dollars in thousands) Three Months Ended March 31, 2019 Net sales $ 507,062 $ 356,199 $ 163,870 $ — $ 1,027,131 Depreciation and amortization (1) 21,107 20,354 8,816 41 50,318 Rationalization charges 222 5,660 201 — 6,083 Segment income 38,897 40,256 12,066 (4,477 ) 86,742 Three Months Ended March 31, 2018 Net sales $ 485,954 $ 370,345 $ 155,981 $ — $ 1,012,280 Depreciation and amortization (1) 20,254 18,650 8,950 22 47,876 Rationalization charges 482 39 182 — 703 Segment income 37,093 48,224 11,082 (4,217 ) 92,182 _____________ (1) Depreciation and amortization excludes amortization of debt issuance costs of $0.9 million and $1.1 million for the three months ended March 31, 2019 and 2018, respectively. |
Reconciliation of Segment Income from Operations to Income before Income Taxes | Total segment income is reconciled to income before income taxes as follows: 2019 2018 (Dollars in thousands) Total segment income $ 86,742 $ 92,182 Interest and other debt expense 27,103 30,481 Income before income taxes $ 59,639 $ 61,701 |
Significant Accounting Polici_3
Significant Accounting Policies Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Operating Lease, Liability | $ 168,100 | |||
Retained earnings | $ 2,031,487 | $ 1,997,785 | $ 1,853,351 | |
Change Due To Adoption of ASC 842 | ||||
Assets, Noncurrent | $ 160,800 | |||
Operating Lease, Liability | 161,400 | |||
Retained earnings | $ (600) |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease, expense | $ 16,500 |
Operating lease, right-of-use asset | 160,200 |
Operating lease liability | 168,100 |
Operating lease, liability, current | 33,700 |
Operating lease, liability, noncurrent | $ 134,400 |
Operating lease, weighted average discount rate, percent | 5.80% |
Finance lease, right-of-use asset | $ 22,600 |
Finance lease, liability | 22,200 |
Finance lease, liability, current | 1,100 |
Finance lease, liability, noncurrent | $ 21,100 |
Operating lease, weighted average remaining lease term | 6 years |
Leases - Maturity Table (Detail
Leases - Maturity Table (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Maturity Table [Abstract] | |
Nine months ended December 31, 2019 | $ 32,434 |
2020 | 38,124 |
2021 | 31,297 |
2022 | 24,010 |
2023 | 20,164 |
Thereafter | 58,097 |
Total lease payments | 204,126 |
Less imputed interest | (36,026) |
Operating lease liability | $ 168,100 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Net Sales | $ 1,027,131 | $ 1,012,280 | |
Unbilled Revenues [Member] | |||
Contract assets | 75,300 | 73,600 | $ 72,500 |
North America [Member] | |||
Net Sales | 810,741 | 779,790 | |
Europe and Other [Member] | |||
Net Sales | 216,390 | 232,490 | |
Metal Containers [Member] | |||
Net Sales | 507,062 | 485,954 | |
Closures [Member] | |||
Net Sales | 356,199 | 370,345 | |
Plastic Containers [Member] | |||
Net Sales | $ 163,870 | $ 155,981 |
Rationalization Charges Activit
Rationalization Charges Activity in Rationalization Plan Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2018 | $ 1,612 | |
Charged to expense | 6,083 | $ 703 |
Utilized and currency translation | (3,497) | |
Balance at March 31, 2019 | 4,198 | |
Employee Severance and Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2018 | 130 | |
Charged to expense | 3,152 | |
Utilized and currency translation | (392) | |
Balance at March 31, 2019 | 2,890 | |
Plant Exit Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2018 | 1,482 | |
Charged to expense | 205 | |
Utilized and currency translation | (379) | |
Balance at March 31, 2019 | 1,308 | |
Non-Cash Asset Write-Down [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2018 | 0 | |
Charged to expense | 2,726 | |
Utilized and currency translation | (2,726) | |
Balance at March 31, 2019 | 0 | |
Metal Containers [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Charged to expense | 222 | 482 |
Closures [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Charged to expense | 5,660 | 39 |
Plastic Containers [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Charged to expense | 201 | $ 182 |
Accrued Liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2019 | 3,500 | |
Other Liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2019 | 700 | |
Rationalization Plan [Member] | Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses for our rationalization plans expected in 2019 and thereafter | 4,100 | |
Restructuring Reserve [Roll Forward] | ||
Remaining cash expenditures for our rationalization plans expected through 2023 | $ 8,300 |
Amounts Included in Accumulated
Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2018 | $ (268,808) | |
Other comprehensive loss before reclassifications | (6,129) | |
Amounts reclassified from accumulated other comprehensive loss | 2,506 | |
Other comprehensive loss | (3,623) | $ 14,266 |
Balance at March 31, 2019 | (272,431) | $ (174,707) |
Unrecognized Net Defined Benefit Plan Costs [Member] | ||
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2018 | (154,466) | |
Other comprehensive loss before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 2,506 | |
Other comprehensive loss | 2,506 | |
Balance at March 31, 2019 | (151,960) | |
Change in Fair Value of Derivatives [Member] | ||
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2018 | (1,008) | |
Other comprehensive loss before reclassifications | (887) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Other comprehensive loss | (887) | |
Balance at March 31, 2019 | (1,895) | |
Foreign Currency Translation [Member] | ||
Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at December 31, 2018 | (113,334) | |
Other comprehensive loss before reclassifications | (5,242) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Other comprehensive loss | (5,242) | |
Balance at March 31, 2019 | $ (118,576) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | $ (5,242) | $ 13,800 |
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 | (3,400) | |
Benefit for Income Taxes | 900 | |
Amortization of net actuarial (losses), before tax | (4,000) | |
Net prior service credit arising during period, before tax | 600 | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During the Period Related to Translation of Foreign Subsidiaries Utlizing a Functional Currency Other Than the US Dollar | (11,300) | |
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 | 700 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Related to Net Investment Hedges, before Reclassification and Tax | 7,000 | |
Foreign currency translation, tax provision related to net investment hedges | $ 1,600 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 244,859 | $ 288,860 | $ 230,847 |
Work-in-process | 135,685 | 123,574 | 133,271 |
Finished goods | 418,702 | 335,180 | 449,133 |
Other | 12,850 | 13,075 | 12,858 |
Inventory, Gross, Total | 812,096 | 760,689 | 826,109 |
Adjustment to value inventory at cost on the LIFO method | (125,883) | (125,883) | (82,823) |
Inventories | $ 686,213 | $ 634,806 | $ 743,286 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | |||
Total debt - principal | $ 2,704,068 | $ 2,317,723 | $ 2,949,557 |
Less unamortized debt issuance costs | 12,492 | 13,109 | 16,196 |
Debt long term and short term less unamortized debt issuance costs combined amount | 2,691,576 | 2,304,614 | 2,933,361 |
Less current portion | 578,001 | 170,214 | 758,652 |
Long-term debt | 2,113,575 | 2,134,400 | 2,174,709 |
Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 1,352,731 | 951,800 | 1,268,497 |
5% Senior Notes due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 0 | $ 0 | $ 280,000 |
Senior note interest rate (percent) | 5.00% | ||
5 1/2% Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 300,000 | $ 300,000 | $ 300,000 |
Senior note interest rate (percent) | 5.50% | 5.50% | 5.50% |
4 3/4% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 300,000 | $ 300,000 | $ 300,000 |
Senior note interest rate (percent) | 4.75% | 4.75% | 4.75% |
3 1/4% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 729,170 | $ 744,380 | $ 801,060 |
Senior note interest rate (percent) | 3.25% | 3.25% | 3.25% |
Finance leases [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | $ 22,167 | $ 21,543 | $ 0 |
Revolving Loan [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 506,000 | 0 | 415,000 |
Less current portion | 506,000 | ||
U S Term Loans [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 800,000 | 800,000 | 800,000 |
Less current portion | 40,000 | ||
Canadian Term Loans [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 15,825 | 22,103 | 23,362 |
Other Foreign Bank Revolving And Term Loans [Member] | Bank debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt - principal | 30,906 | $ 129,697 | $ 30,135 |
Less current portion | 30,900 | ||
Finance leases [Member] | |||
Debt Instrument [Line Items] | |||
Less current portion | $ 1,100 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Derivative [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 2,704,068 | $ 2,317,723 | $ 2,949,557 |
USD Interest Rate Swap Contract One [Member] | |||
Derivative [Line Items] | |||
Notional principal amount of outstanding of the interest rate swap agreement | $ 50,000 | ||
Fixed interest rate | 2.878% | ||
USD Interest Rate Swap Contract Two [Member] | |||
Derivative [Line Items] | |||
Notional principal amount of outstanding of the interest rate swap agreement | $ 50,000 | ||
Fixed interest rate | 2.878% | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Cash and cash equivalents | $ 141,400 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Derivative [Line Items] | |||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 2,477 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Cash and cash equivalents | 141,400 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Derivative [Line Items] | |||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 2,477 | ||
Bank debt [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 1,352,731 | ||
Bank debt [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 1,352,731 | ||
4 3/4% Senior Notes due 2025 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 300,000 | ||
4 3/4% Senior Notes due 2025 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 296,565 | ||
3 1/4% Senior Notes due 2025 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 729,170 | ||
3 1/4% Senior Notes due 2025 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 755,056 | ||
5 1/2% Senior Notes due 2022 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | 300,000 | ||
5 1/2% Senior Notes due 2022 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Derivative [Line Items] | |||
Long-Term Debt | $ 303,069 | ||
5 1/2% Senior Notes due 2022 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 5.50% | 5.50% | 5.50% |
Debt, Long-term and Short-term, Combined Amount | $ 300,000 | $ 300,000 | $ 300,000 |
3 1/4% Senior Notes due 2025 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 3.25% | 3.25% | 3.25% |
Debt, Long-term and Short-term, Combined Amount | $ 729,170 | $ 744,380 | $ 801,060 |
4 3/4% Senior Notes due 2025 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 4.75% | 4.75% | 4.75% |
Debt, Long-term and Short-term, Combined Amount | $ 300,000 | $ 300,000 | $ 300,000 |
5% Senior Notes due 2020 [Member] | |||
Derivative [Line Items] | |||
Senior note interest rate (percent) | 5.00% | ||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 0 | $ 280,000 |
Accumulated Translation Adjustment [Member] | |||
Derivative [Line Items] | |||
Foreign currency gains of net investment hedges included in accumulated other comprehensive loss | $ 7,000 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,258 | $ 3,721 |
Interest cost | 7,049 | 6,309 |
Expected return on plan assets | (15,113) | (17,123) |
Amortization of prior service cost (credit) | 19 | 35 |
Amortization of actuarial losses (gains) | 4,119 | 1,786 |
Net periodic benefit credit | (668) | (5,272) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 22 | 31 |
Interest cost | 185 | 163 |
Amortization of prior service cost (credit) | (582) | (649) |
Amortization of actuarial losses (gains) | (167) | (119) |
Net periodic benefit credit | $ (542) | $ (574) |
Income Taxes Additional Details
Income Taxes Additional Details (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Expected (decrease) in Reserve for Unrecognized Tax Benefits | $ (4) |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Oct. 17, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, additional repurchase authorization | $ 300 | |
Remaining authorized repurchase amount | $ 124.6 | |
Treasury stock (shares) | 63,984,347 | |
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 | 1,227,240 | |
Average cost of treasury shares that were issued for restricted stock units that vested during the period (usd per share) | $ 2.88 | |
Shares repurchased to satisfy minimum employee withholding tax requirements resulting from the vesting of such restricted stock units (shares) | 528,687 | |
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 | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units granted (shares) | shares | 1,054,700 |
Fair value of restricted stock units granted | $ | $ 30 |
Reportable Business Segment Inf
Reportable Business Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting Information [Line Items] | |||
Net Sales | $ 1,027,131 | $ 1,012,280 | |
Depreciation and amortization | [1] | 50,318 | 47,876 |
Rationalization charges | 6,083 | 703 | |
Segment Income | 86,742 | 92,182 | |
Amortization of debt issuance costs excluded from depreciation and amortization | 900 | 1,100 | |
Metal Containers [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 507,062 | 485,954 | |
Depreciation and amortization | [1] | 21,107 | 20,254 |
Rationalization charges | 222 | 482 | |
Segment Income | 38,897 | 37,093 | |
Closures [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 356,199 | 370,345 | |
Depreciation and amortization | [1] | 20,354 | 18,650 |
Rationalization charges | 5,660 | 39 | |
Segment Income | 40,256 | 48,224 | |
Plastic Containers [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 163,870 | 155,981 | |
Depreciation and amortization | [1] | 8,816 | 8,950 |
Rationalization charges | 201 | 182 | |
Segment Income | 12,066 | 11,082 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 0 | 0 | |
Depreciation and amortization | [1] | 41 | 22 |
Rationalization charges | 0 | 0 | |
Segment Income | $ (4,477) | $ (4,217) | |
[1] | Depreciation and amortization excludes amortization of debt issuance costs of $0.9 million and $1.1 million for the three months ended March 31, 2019 and 2018, respectively. |
Reconciliation of Segment Incom
Reconciliation of Segment Income to Income before Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Income before interest and income taxes | $ 86,742 | $ 92,182 |
Interest and other debt expense | 27,103 | 30,481 |
Income before income taxes | $ 59,639 | $ 61,701 |