XML 44 R23.htm IDEA: XBRL DOCUMENT
v3.25.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME T AXES Income before income taxes was taxed in the following jurisdictions in each of the years ended December 31:
| 2024 |  | 2023 |  | 2022
| (Dollars in thousands)
Domestic | $ | 193,938 |  |  | $ | 253,916 |  |  | $ | 400,889 |
Foreign | 153,732 |  |  | 168,205 |  |  | 73,250 |
Total | $ | 347,670 |  |  | $ | 422,121 |  |  | $ | 474,139 |
The components of the provision (benefit) for income taxes were as follows:
| 2024 |  | 2023 |  | 2022
| (Dollars in thousands)
Current: |  |  |  |  |
Federal | $ | 39,590 |  |  | $ | 10,847 |  |  | $ | 99,760 |
State | 7,927 |  |  | (529) |  |  | 23,915 |
Foreign | 57,515 |  |  | 52,730 |  |  | 41,797 |
Current income tax provision | 105,032 |  |  | 63,048 |  |  | 165,472 |
Deferred: |  |  |  |  |
Federal | (15,847) |  |  | 29,337 |  |  | (27,681) |
State | (2,218) |  |  | 7,957 |  |  | (8,916) |
Foreign | (14,990) |  |  | (4,186) |  |  | 4,416 |
Deferred income tax (benefit) provision | (33,055) |  |  | 33,108 |  |  | (32,181) |
| $ | 71,977 |  |  | $ | 96,156 |  |  | $ | 133,291 |
The provision for income taxes varied from income taxes computed at the statutory U.S. federal income tax rate as a result of the following:
| 2024 |  | 2023 |  | 2022
| (Dollars in thousands)
Income taxes computed at the statutory U.S. federal income tax rate | $ | 73,011 |  |  | $ | 88,646 |  |  | $ | 99,569 |
State income taxes, net of federal tax benefit | 2,551 |  |  | 5,551 |  |  | 12,815 |
Tax liabilities no longer required | (2,838) |  |  | (4,071) |  |  | (2,142) |
Valuation allowance | 11,291 |  |  | 2,287 |  |  | 16,635 |
Tax credit refunds, net | (5,098) |  |  | (2,684) |  |  | (5,081) |
Foreign earnings taxed at other than 21% | (4,144) |  |  | 9,993 |  |  | 5,126 |
Deferred tax rate changes | 1,326 |  |  | (3,133) |  |  | (1,276) |
European Commission settlement | — |  |  | — |  |  | 5,313 |
Other | (4,122) |  |  | (433) |  |  | 2,332 |
| $ | 71,977 |  |  | $ | 96,156 |  |  | $ | 133,291 |
Effective tax rate | 20.7 | % |  | 22.8 | % |  | 28.1 | %
Deferred income taxes reflect the net tax effect of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Significant components of our deferred tax assets and liabilities at December 31 were as follows:
| 2024 |  | 2023
| (Dollars in thousands)
Deferred tax assets: |  |  |
Pension and other postretirement liabilities | $ | 15,621 |  |  | $ | 17,093 |
Rationalization and other accrued liabilities | 49,115 |  |  | 33,196 |
AMT and other credit carryforwards | 6,102 |  |  | 3,584 |
Net operating loss carryforwards | 80,853 |  |  | 54,067 |
Other intangible assets | 2,288 |  |  | 268 |
Foreign currency translation | — |  |  | — |
Property, plant and equipment | 1,703 |  |  | 1,559 |
Inventory and related reserves | 2,852 |  |  | 3,098 |
Long term operating lease liabilities | 51,449 |  |  | 58,430 |
Other | 41,331 |  |  | 29,233 |
Total deferred tax assets | 251,314 |  |  | 200,528 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | (283,505) |  |  | (259,083) |
Pension and other postretirement liabilities | (45,835) |  |  | (44,782) |
Other intangible assets | (223,672) |  |  | (178,062) |
Rationalization and other accrued liabilities | (1,537) |  |  | — |
Operating lease right of use assets | (48,788) |  |  | (55,993) |
Inventory and related reserves | (11,723) |  |  | (13,527) |
Foreign currency translation | (24,830) |  |  | (13,496) |
Other | (14,609) |  |  | (11,210) |
Total deferred tax liabilities | (654,499) |  |  | (576,153) |
Valuation allowance | (91,340) |  |  | (45,525) |
| $ | (494,525) |  |  | $ | (421,150) |
At December 31, 2024, the net deferred tax liability in our Consolidated Balance Sheets was comprised of long-term deferred tax assets of $11.1 million and long-term deferred tax liabilities of $505.6 million. At December 31, 2023, the net deferred tax liability in our Consolidated Balance Sheets was comprised of long-term deferred tax assets of $12.5 million and long-term deferred tax liabilities of $433.7 million. Long-term deferred tax assets were classified as other assets, net in our Consolidated Balance Sheets. The valuation allowance in 2024 includes deferred tax assets of $91.3 million resulting from state and foreign net operating loss carryforwards, or NOLs. The valuation allowance for deferred tax assets increased in 2024 by $45.8 million primarily due to acquired tax attributes related to Weener Packaging and an increase in the valuation allowance related to foreign NOLs. At December 31, 2024, we had foreign NOLs of approximately $71.9 million that are available to offset future taxable income. Of that amount, approximately $11.8 million will expire from 2025 to 2037. The remaining portion has no expiration date. At December 31, 2024, we had state tax NOLs of approximately $12.3 million that are available to offset future taxable income and that will expire from 2025 to 2043. We recognize accrued interest and penalties related to unrecognized taxes as additional income tax expense. At December 31, 2024 and 2023, we had $1.0 million and $1.8 million, respectively, accrued for potential interest and penalties. The total amount of unrecognized tax benefits recorded in other liabilities as of December 31, 2024 and 2023 were $8.6 million and $13.5 million, respectively, excluding associated tax assets and including the federal tax benefit of state taxes, interest and penalties. Tax assets associated with uncertain tax positions primarily represent our estimate of the potential tax benefits in one tax jurisdiction that could result from the payment of income taxes in another jurisdiction. At each of December 31, 2024 and 2023, we had approximately $7.2 million in assets associated with uncertain tax positions recorded in other assets, net in our Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits included as other liabilities in our Consolidated Balance Sheets was as follows:
| 2024 |  | 2023
| (Dollars in thousands)
Balance at January 1, | $ | 17,401 |  |  | $ | 26,721 |
Increase based upon tax positions of current year | (4,245) |  |  | 8,807 |
Increase based upon tax positions of a prior year | 698 |  |  | 625 |
Decrease based upon settlements with taxing authorities | — |  |  | (15,681) |
Decrease based upon a lapse in the statute of limitations | (993) |  |  | (3,071) |
Balance at December 31, | $ | 12,861 |  |  | $ | 17,401 |
The total amount of unrecognized tax benefits that would impact the effective tax rate, if recognized, at December 31, 2024 and 2023 were $12.9 million and $16.7 million, respectively. Silgan and its subsidiaries file U.S. Federal income tax returns, as well as income tax returns in various states and foreign jurisdictions. We expect the Internal Revenue Service, or IRS, will complete its review of the 2023 tax year with no change to our filed tax return. We have been accepted into the Compliance Assurance Program for the 2024 tax year which provides for the review by the IRS of tax matters relating to our tax return prior to filing. We are subject to examination by state and local tax authorities generally for the period mandated by statute, with the exception of states where waivers of the statute of limitations have been executed. The earliest open period for a state audit is 2018. Our foreign subsidiaries are generally not subject to examination by tax authorities for periods before 2012, and we have contractual indemnities with third parties with respect to open periods that predate our ownership of certain foreign subsidiaries. Subsequent periods may be examined by the relevant tax authorities. In the next twelve months, it is reasonably possible that our reserve for unrecognized tax benefits will decrease by approximately $0.4 million primarily related to tax attributes acquired from and expenses related to certain acquisitions, as we anticipate the expiration of the applicable statute of limitations with respect to certain tax matters. For certain of our foreign subsidiaries where we expect to be indefinitely reinvested, we estimate that the unremitted earnings as of December 31, 2024 are approximately $100.7 million. The amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings is estimated to be approximately $5.8 million.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration