Statements included in "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Quarterly Report on Form 10-Q that are not historical facts are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and Securities Exchange Act of 1934, as amended. Such forward-looking statements are made based upon management's expectations and beliefs concerning future events impacting us and therefore involve a number of uncertainties and risks, including, but not limited to, those described in our Annual Report on Form 10-K for the fiscal year endedDecember 31, 2021 and in our other filings with theSecurities and Exchange Commission . As a result, the actual results of our operations or our financial condition could differ materially from those expressed or implied in these forward-looking statements. General We are a leading manufacturer of sustainable rigid packaging solutions for consumer goods products. We currently produce dispensing and specialty closures for food, beverage, health care, garden, home, personal care, fragrance and beauty products; steel and aluminum containers for human and pet food and general line products; and custom designed plastic containers for personal care, food, health care, pharmaceutical, household and industrial chemical, pet food and care, agricultural, automotive and marine chemical products. We are a leading worldwide manufacturer of dispensing and specialty closures, a leading manufacturer of metal containers inNorth America andEurope , and a leading manufacturer of custom containers inNorth America for a variety of markets, including the personal care, food, health care and household and industrial chemical markets. Our objective is to increase shareholder value by efficiently deploying capital and management resources to grow our business, reduce operating costs and build sustainable competitive positions, or franchises, and to complete acquisitions that generate attractive cash returns. We have grown our net sales and income from operations largely through acquisitions but also through internal growth, and we continue to evaluate acquisition opportunities in the consumer goods packaging market. If acquisition opportunities are not identified over a longer period of time, we may use our cash flow to repay debt, repurchase shares of our common stock or increase dividends to our stockholders or for other permitted purposes. -18-
--------------------------------------------------------------------------------
RESULTS OF OPERATIONS
The following table presents certain unaudited income statement data expressed as a percentage of net sales for the periods presented:
Three Months Ended Nine Months Ended
Sept. 30, 2022 Sept. 30, 2021 Sept. 30, 2022 Sept. 30, 2021
Net sales
Dispensing and Specialty Closures 29.2 % 32.3 % 35.8 % 37.5 %
Metal Containers 61.5 57.1 52.8 50.0
Custom Containers 9.3 10.6 11.4 12.5
Consolidated 100.0 100.0 100.0 100.0
Cost of goods sold 84.4 85.0 83.6 83.4
Gross profit 15.6 15.0 16.4 16.6
Selling, general and administrative expenses 4.9 5.5 6.5 6.6
Rationalization charges 0.1 0.1 0.1 0.3
Other pension and postretirement income (0.5) (0.8) (0.7) (0.9)
Income before interest and income taxes 11.1 10.2 10.5 10.6
Interest and other debt expense 1.7 1.7 1.9 1.9
Income before income taxes 9.4 8.5 8.6 8.7
Provision for income taxes 2.4 2.1 2.2 2.2
Net income 7.0 % 6.4 % 6.4 % 6.5 %
Summary unaudited results of operations for the periods presented are provided
below.
Three Months Ended Nine Months Ended
Sept. 30, 2022 Sept. 30, 2021 Sept. 30, 2022 Sept. 30, 2021
(dollars in millions)
Net sales
Dispensing and Specialty Closures $ 575.5 $ 533.4 $ 1,775.9 $ 1,588.4
Metal Containers 1,212.0 942.1 2,617.1 2,120.7
Custom Containers 182.9 175.6 563.1 528.7
Consolidated $ 1,970.4 $ 1,651.1 $ 4,956.1 $ 4,237.8
Segment income
Dispensing and Specialty Closures (1) $ 79.2 $ 60.1 $ 257.8 $ 199.6
Metal Containers (2) 121.3 94.3 225.6 198.5
Custom Containers (3) 24.3 22.7 79.8 74.4
Corporate (4) (5.4) (9.2) (42.4) (25.1)
Consolidated $ 219.4 $ 167.9 $ 520.8 $ 447.4
(1) Includes rationalization charges of $0.3 million and $0.4 million for the
three months ended September 30, 2022 and 2021, respectively, and $0.3 million
and $5.7 million for the nine months ended September 30, 2022 and 2021,
respectively. Includes a charge for the write-up of inventory for purchase
accounting of $0.9 million as a result of the acquisition of Gateway Plastics
LLC for the three and nine months ended September 30, 2021 .
(2) Includes rationalization charges of $2.5 million and $1.8 million for the
three months ended September 30, 2022 and 2021, respectively, and $7.2 million
and $7.1 million for the nine months ended September 30, 2022 and 2021,
respectively.
(3) Includes rationalization (credits) charges of $(0.1) million and
$0.1 million for the three months ended September 30, 2022 and 2021,
respectively, and $0.2 million for the nine months ended September 30, 2021 .
(4) Includes a charge of $25.2 million for the settlement with the European
Commission for the nine months ended September 30, 2022 .
-19-
--------------------------------------------------------------------------------
Three months completed
Overview. Consolidated net sales were$1.97 billion in the third quarter of 2022, a 19.3 percent increase as compared to the third quarter of 2021 primarily due to higher average selling prices due to the pass through of higher raw material and other inflationary costs across all segments, higher unit volumes in the dispensing and specialty closures segment and a more favorable mix of products sold in the dispensing and specialty closures and custom containers segments, partially offset by lower unit volumes in the metal containers and custom containers segments and the impact from unfavorable foreign currency translation. Income before interest and income taxes for the third quarter of 2022 was$219.4 million , a$51.5 million increase as compared to the same period in 2021 primarily as a result of higher average selling prices across all segments due to the pass through of inflationary costs, strong operating performances in each of the segments which included the benefit from an inventory management program in the metal containers segment, the favorable impact in the current year period from the delayed pass through of lower resin costs as compared to the unfavorable impact in the prior year period from the delayed pass through of higher resin costs in the dispensing and specialty closures and custom containers segments, a more favorable mix of products sold and higher unit volumes in the dispensing and specialty closures segment and a$0.9 million charge for the write-up of inventory for purchase accounting in the prior year period. These increases were partially offset by inflation in manufacturing and selling, general and administrative costs, lower volumes in the metal containers and custom containers segments, and the impact of unfavorable foreign currency translation. Results for the third quarters of 2022 and 2021 included rationalization charges of$2.7 million and$2.3 million , respectively. Net income for the third quarter of 2022 was$138.7 million as compared to$106.3 million for the same period in 2021. Net income per diluted share for the third quarter of 2022 was$1.25 as compared to$0.96 for the same period in 2021.
Net sales for the dispensing and specialty closures segment increased$42.1 million , or 7.9 percent, in the third quarter of 2022 as compared to the same period in 2021. This increase was primarily the result of higher average selling prices due to the pass through of higher raw material and other inflationary costs, higher unit volumes of approximately one percent and a more favorable mix of products sold, partially offset by the impact of unfavorable foreign currency translation of approximately$37 million . The increase in unit volumes was principally the result of higher volumes for dispensing products, including from the acquisitions completed inSeptember 2021 , partially offset by expected volume decreases in closures for certain food and beverage markets compared to record pandemic driven volumes in the prior year period. Net sales for the metal containers segment increased$269.9 million , or 28.6 percent, in the third quarter of 2022 as compared to the same period in 2021. This increase was primarily the result of higher average selling prices due to the pass through of higher raw material and other manufacturing costs, partially offset by lower unit volumes of approximately nine percent and the impact of unfavorable foreign currency translation of approximately$19 million . The decrease in unit volumes was principally the result of lower volumes of vegetable and fruit cans as compared to higher volumes from customer restocking in the record prior year period and the continued unfavorable impact from customers' ongoing supply chain and labor challenges in the current year period. Net sales for the custom containers segment increased$7.3 million , or 4.2 percent, in the third quarter of 2022 as compared to the same period in 2021. This increase was principally due to a more favorable mix of products sold and higher average selling prices, including the pass through of higher resin and other inflationary costs, partially offset by lower volumes of approximately seven percent and the impact of unfavorable foreign currency translation of approximately$1 million . The decline in volumes was primarily for home, personal care and lawn and garden products.
Gross profit. Gross profit margin increased by 0.6 percentage points to 15.6% in the third quarter of 2022 compared to the same period in 2021 for the reasons described below in “Income before interest and income taxes” .
Selling, General and Administrative Expenses. Selling, general and administrative expenses as a percentage of consolidated net sales decreased to 4.9 percent in the third quarter of 2022 as compared to 5.5 percent in the same period in 2021. Selling, general and administrative expenses increased$6.4 million to$96.7 million for the third quarter of 2022 as compared to$90.3 million for the same period in 2021. The increase in selling, general and administrative expenses was principally the result of inflation in such expenses in the current year period and the inclusion of selling, general and administrative expenses from the acquisitions completed late in the third quarter and in the fourth quarter of 2021. Income before Interest and Income Taxes. Income before interest and income taxes for the third quarter of 2022 increased by$51.5 million as compared to the third quarter of 2021, and margins increased to 11.1 percent from 10.2 percent over the same periods. The increase in income before interest and income taxes was primarily the result of higher income in all of the -20- -------------------------------------------------------------------------------- segments and lower corporate expenses. The prior year period included costs attributed to announced acquisitions and a charge for the write-up of inventory for purchase accounting of$4.1 million and$0.9 million , respectively. Rationalization charges were$2.7 million and$2.3 million in the third quarters of 2022 and 2021, respectively. Segment income of the dispensing and specialty closures segment for the third quarter of 2022 increased$19.1 million as compared to the same period in 2021, and segment income margin increased to 13.8 percent from 11.3 percent over the same periods. The increase in segment income was primarily due to higher average selling prices due to the pass through of inflationary costs, the favorable impact in the current year period from the delayed pass through of lower resin costs as compared to the unfavorable impact in the prior year period from the delayed pass through of higher resin costs, strong operating performance, a more favorable mix of products sold, higher unit volumes and a$0.9 million charge for the write-up of inventory for purchase accounting in the prior year period, partially offset by inflation in manufacturing and selling, general and administrative costs and the impact of unfavorable foreign currency translation. Segment income of the metal containers segment for the third quarter of 2022 increased$27.0 million as compared to the same period in 2021, and segment income margin remained unchanged at 10.0 percent for both periods. The increase in segment income was primarily due to strong operating performance, including the benefit of an inventory management program, and higher average selling prices due to the pass through of inflationary costs, partially offset by inflation in manufacturing and selling, general and administrative costs, lower unit volumes, the impact of unfavorable foreign currency translation and higher rationalization charges. Rationalization charges were$2.5 million and$1.8 million in the third quarters of 2022 and 2021, respectively. Segment income of the custom containers segment for the third quarter of 2022 increased$1.6 million as compared to the same period in 2021, and segment income margin increased to 13.3 percent from 12.9 percent over the same periods. The increase in segment income was primarily attributable to the pass through of inflationary costs and the favorable impact in the current year period from the delayed pass through of lower resin costs as compared to the unfavorable impact in the prior year period from the delayed pass through of higher resin costs, partially offset by inflation in manufacturing and selling, general and administrative costs and lower volumes. Interest and Other Debt Expense. Interest and other debt expense for the third quarter of 2022 increased$6.7 million to$33.7 million as compared to$27.0 million in the same period in 2021. This increase was primarily due to higher weighted average outstanding borrowings during the quarter as a result of the acquisitions completed late in the third quarter and in the fourth quarter of 2021 and higher weighted average interest rates, partially offset by lower foreign currency exchange rates on outstanding Euro denominated debt. Provision for Income Taxes. The effective tax rates were 25.3 percent and 24.6 percent for the third quarters of 2022 and 2021, respectively. The effective tax rate for the third quarter of 2022 was unfavorably impacted by higher income generated in less favorable tax jurisdictions.
Nine month period ended
Overview. Consolidated net sales were$4.96 billion in the first nine months of 2022, a 16.9 percent increase as compared to the first nine months of 2021 primarily as a result of higher average selling prices across all segments principally related to the pass through of higher raw material and other inflationary costs, higher unit volumes in the dispensing and specialty closures segment and a more favorable mix of products sold in the custom containers segment, partially offset by lower volumes in the metal containers and custom containers segments and the impact of unfavorable foreign currency translation. Income before interest and income taxes for the first nine months of 2022 increased by$73.4 million as compared to the same period in 2021 primarily due to higher average selling prices across all segments principally due to the pass through of higher raw material and other inflationary costs, strong operating performances in each of the segments including the benefit of inventory management programs in the dispensing and specialty closures and metal containers segments, the favorable impact from the delayed pass through of lower resin costs in the current year period as compared to the unfavorable impact in the prior year period from the delayed pass through of higher resin costs in the dispensing and specialty closures and custom containers segments, higher unit volumes in the dispensing and specialty closures segment, cost recovery for certain customer project expenditures in the dispensing and specialty closures segment and lower rationalization charges. These increases were partially offset by inflation in manufacturing and selling, general and administrative costs, lower volumes and a less favorable mix of products sold in the metal containers segment, higher corporate expenses due to the charge for the settlement with theEuropean Commission in the current year period, the impact of unfavorable foreign currency translation and lower volumes in the custom containers segment. Results for the first nine months of 2022 and 2021 included rationalization charges of$7.5 million and$13.0 million , -21- -------------------------------------------------------------------------------- respectively, a loss on early extinguishment of debt of$1.5 million and$0.9 million , respectively. Results for the first nine months of 2021 also included costs attributed to announced acquisitions of$4.1 million and a$0.9 million charge for the write-up of inventory for purchase accounting. Net income for the first nine months of 2022 was$316.3 million as compared to$274.0 million for the same period in 2021. Net income per diluted share for the first nine months of 2022 was$2.85 as compared to$2.47 for the same period in 2021.Net Sales . The$718.3 million increase in consolidated net sales in the first nine months of 2022 as compared to the first nine months of 2021 was the result of higher net sales across all the segments. Net sales for the dispensing and specialty closures segment increased$187.5 million , or 11.8 percent, in the first nine months of 2022 as compared to the same period in 2021. This increase was primarily the result of higher average selling prices related to the pass through of higher raw material and other inflationary costs and higher unit volumes of approximately three percent, partially offset by the impact of unfavorable foreign currency translation of approximately$81 million . The increase in unit volumes was principally the result of the inclusion of volumes from acquisitions completed in 2021 and higher volumes for beauty and fragrance products, partially offset by expected volume declines for closures for certain food and beverage markets compared to record pandemic driven volumes in the prior year period and due to customer pre-buy activity in late 2021 in advance of significant metal inflation this year and a decrease in volumes for garden, hygiene and home cleaning products, which were impacted by further inventory corrections throughout the supply chain. Net sales for the metal containers segment increased$496.4 million , or 23.4 percent, in the first nine months of 2022 as compared to the same period in 2021. This increase was primarily the result of higher average selling prices related to the pass through of higher raw material and other manufacturing costs, partially offset by lower unit volumes of approximately eleven percent and the impact of unfavorable foreign currency translation of approximately$40 million . The decrease in unit volumes was primarily due to the impact of the customer pre-buy activity in late 2021 in advance of significant price increases due to unprecedented metal inflation this year, lower volumes of vegetable and fruit cans as compared to higher volumes from customer restocking in the prior year period and the unfavorable impact from customers' ongoing supply chain and labor challenges in the current year period. Net sales for the custom containers segment increased$34.4 million , or 6.5 percent, in the first nine months of 2022 as compared to the same period in 2021. This increase was primarily due to higher average selling prices, which include the pass through of higher resin and other inflationary costs, and a more favorable mix of products sold, partially offset by lower volumes of approximately seven percent and the impact of unfavorable foreign currency translation of approximately$3 million . The decrease in volumes was primarily due to higher volumes in the prior year period as a result of strong pandemic driven demand and subsequent inventory corrections throughout the supply chain in the current year period.
Gross profit. Gross profit margin decreased by 0.2 percentage points to 16.4% in the first nine months of 2022 compared to the same period in 2021 for the reasons described below in “Income before interest and income taxes”.
Selling, General and Administrative Expenses. Selling, general and administrative expenses as a percentage of consolidated net sales decreased to 6.5 percent for the first nine months of 2022 as compared to 6.6 percent in the same period in 2021. Selling, general and administrative expenses increased$38.4 million to$320.5 million for the first nine months of 2022 as compared to$282.1 million for the same period in 2021. The increase in selling, general and administrative expenses was principally the result of a charge of$25.2 million for the settlement with theEuropean Commission , the inclusion of selling, general and administrative expenses from the acquisitions completed late in the third quarter and in the fourth quarter of 2021, and inflation in such expenses in the current year period. Income before Interest and Income Taxes. Income before interest and income taxes for the first nine months of 2022 increased by$73.4 million as compared to the first nine months of 2021, while margins decreased slightly to 10.5 percent from 10.6 percent over the same periods. The increase in income before interest and income taxes was primarily due to higher income across all the segments and lower rationalization charges, partially offset by higher corporate expenses due to the$25.2 million settlement with theEuropean Commission . Rationalization charges were$7.5 million and$13.0 million for the first nine months of 2022 and 2021, respectively. Segment income of the dispensing and specialty closures segment for the first nine months of 2022 increased$58.2 million as compared to the same period in 2021, and segment income margin increased to 14.5 percent from 12.6 percent over the same period. The increase in segment income was due primarily to higher average selling prices principally as a result of the pass through of higher raw material and other inflationary costs, strong operating performance including the benefit of an inventory management program, higher unit volumes, the favorable impact from the delayed pass through of lower resin costs in the current year period as compared to the unfavorable impact in the prior year period from the delayed pass through of higher resin -22- -------------------------------------------------------------------------------- costs, cost recovery for certain customer project expenditures and lower rationalization charges, partially offset by inflation in manufacturing and selling, general and administrative costs and the impact of unfavorable foreign currency translation. Rationalization charges were$0.3 million and$5.7 million in the first nine months of 2022 and 2021, respectively. Segment income of the metal containers segment for the first nine months of 2022 increased$27.1 million as compared to the same period in 2021, while segment income margin decreased to 8.6 percent from 9.4 percent over the same periods. The increase in segment income was primarily attributable to higher average selling prices due to the pass through of higher raw material and other inflationary costs and strong operating performance including the benefit of an inventory management program, partially offset by inflation in manufacturing and selling, general and administrative costs, lower unit volumes, a less favorable mix of products sold and the impact of unfavorable foreign currency translation. The decrease in segment income margin was primarily due to the mathematical consequence of the pass through of inflation in raw material and other manufacturing costs. Rationalization charges were$7.2 million and$7.1 million in the first nine months of 2022 and 2021, respectively. Segment income of the custom containers segment for the first nine months of 2022 increased$5.4 million as compared to the same period in 2021, and segment income margin increased to 14.2 percent from 14.1 percent over the same periods. The increase in segment income was primarily attributable to higher average selling prices principally due to the pass through of inflationary costs, the favorable impact from the delayed pass through of lower resin costs in the current year period as compared to the unfavorable impact of the delayed pass through of higher resin costs in the prior year period and strong operating performance, partially offset by inflation in manufacturing and selling, general and administrative costs and lower volumes. Interest and Other Debt Expense. Interest and other debt expense before loss on early extinguishment of debt for the first nine months of 2022 increased$11.8 million to$91.7 million as compared to$79.9 million in the same period in 2021 principally due to higher weighted average outstanding borrowings as a result of the acquisitions completed in 2021, partially offset by lower foreign currency exchange rates on outstanding Euro denominated debt and lower weighted average interest rates primarily as a result of the redemption of the 4¾% Notes with proceeds from revolving loan borrowings under the Credit Agreement and cash on hand. InMarch 2022 , we redeemed all$300.0 million aggregate principal amount of the outstanding 4¾% Notes. In conjunction with this redemption, we recognized a loss on early extinguishment of debt of$1.5 million in the first quarter of 2022. InFebruary 2021 , we issued the 1.4% Senior Secured Notes due 2026, or the 1.4% Notes, and utilized the proceeds therefrom to prepay outstanding term loans under the Credit Agreement. In conjunction with this prepayment, we recognized a loss on early extinguishment of debt of$0.9 million in the first quarter of 2021. Provision for Income Taxes. The effective tax rates were 26.0 percent and 25.3 percent for the first nine months of 2022 and 2021, respectively. The effective tax rate in 2022 was unfavorably impacted by the non-deductible settlement with theEuropean Commission and higher income generated in less favorable tax jurisdictions.
CAPITAL AND LIQUIDITY RESOURCES
Our principal sources of liquidity have been net cash from operating activities and borrowings under our debt instruments, including our senior secured credit facility. Our liquidity requirements arise from our obligations under the indebtedness incurred in connection with our acquisitions and the refinancing of that indebtedness, capital investment in new and existing equipment, the funding of our seasonal working capital needs and other general corporate uses. OnMarch 28, 2022 , we redeemed all$300.0 million aggregate principal amount of the outstanding 4¾% Notes at a redemption price of 100 percent of their principal amount plus accrued and unpaid interest to the redemption date. We funded this redemption with revolving loan borrowings under the Credit Agreement and cash on hand. As a result of this redemption, we recorded a pre-tax charge for the loss on early extinguishment of debt of$1.5 million during the first quarter of 2022 for the write-off of unamortized debt issuance costs. You should also read Note 6 to our Condensed Consolidated Financial Statements for the three and nine months endedSeptember 30, 2022 included elsewhere in this Quarterly Report. For the nine months endedSeptember 30, 2022 , we used net borrowings of revolving loans and proceeds from other foreign long-term debt of an aggregate of$529.3 million and cash and cash equivalents of$387.8 million to fund the redemption of the 4¾% Notes and other foreign long-term debt for an aggregate of$300.3 million , decreases in outstanding checks of$225.9 million , net capital expenditures and other investing activities of$161.6 million , cash used in operations of$117.5 million , -23- -------------------------------------------------------------------------------- dividends paid on our common stock of$54.3 million , repurchases of our common stock of$39.4 million and the negative effect of exchange rate changes on cash and cash equivalents of$18.1 million . For the nine months endedSeptember 30, 2021 , we used proceeds from the net borrowings of revolving loans of$906.9 million , the issuance of the 1.4% Notes of$499.7 million and cash and cash equivalents of$138.9 million to fund acquisitions for$718.4 million , repayments of long-term debt of$500.0 million , net capital expenditures and other investing activities of$170.8 million , decreases in outstanding checks of$84.2 million , dividends paid on our common stock of$47.0 million , repurchases of our common stock of$8.6 million under our stock-based compensation plan, cash used in operations of$5.8 million , debt issuance costs of$4.9 million and the negative effect of exchange rate changes on cash and cash equivalents of$5.8 million . AtSeptember 30, 2022 , we had$497.0 million of revolving loans outstanding under the Credit Agreement. After taking into account outstanding letters of credit, the available portion of revolving loans under the Credit Agreement atSeptember 30, 2022 was$983.3 million . Because we sell metal containers and closures used in fruit and vegetable pack processing, we have seasonal sales. As is common in the industry, we must utilize working capital to build inventory and then carry accounts receivable for some customers beyond the end of the packing season. Due to our seasonal requirements, which generally peak sometime in the summer or early fall, we may incur short-term indebtedness to finance our working capital requirements. Our peak seasonal working capital requirements have historically averaged approximately$350 million . We fund seasonal working capital requirements through revolving loans under the Credit Agreement, other foreign bank loans and cash on hand. We may use the available portion of revolving loans under the Credit Agreement, after taking into account our seasonal needs and outstanding letters of credit, for other general corporate purposes including acquisitions, capital expenditures, dividends, stock repurchases and to refinance or repurchase other debt. We believe that cash generated from operations and funds from borrowings available under the Credit Agreement and other foreign bank loans will be sufficient to meet our expected operating needs, planned capital expenditures, debt service, tax obligations, pension benefit plan contributions, share repurchases and common stock dividends for the foreseeable future. We continue to evaluate acquisition opportunities in the consumer goods packaging market and may incur additional indebtedness, including indebtedness under the Credit Agreement, to finance any such acquisition.
We respect all the financial and operational commitments contained in our financing agreements and believe that we will continue to respect all of these commitments in 2022.
Each of the 3¼% Senior Notes, the 4?% Senior Notes, the 2¼% Senior Notes and the 1.4% Notes were issued bySilgan and are guaranteed by ourU.S. subsidiaries that also guarantee our obligations under the Credit Agreement, collectively theObligor Group . The following summarized financial information relates to theObligor Group as ofSeptember 30, 2022 andDecember 31, 2021 and for the nine months endedSeptember 30, 2022 . Intercompany transactions, equity investments and other intercompany activity within theObligor Group have been eliminated from the summarized financial information. Investments in subsidiaries ofSilgan that are not part of theObligor Group of$1.4 billion as of each ofSeptember 30, 2022 andDecember 31, 2021 are not included in noncurrent assets in the table below. Sept. 30, 2022 Dec. 31, 2021 (Dollars in millions) Current assets$1,460.8 $1,506.9 Noncurrent assets 4,066.2 4,159.9 Current liabilities 1,323.3 1,159.2 Noncurrent liabilities 3,877.6 4,392.4
To
-24- --------------------------------------------------------------------------------
Nine Months EndedSept. 30, 2022 (Dollars in millions) Net sales$3,714.0 Gross profit 516.5 Net income 227.4 For the nine months endedSeptember 30, 2022 , net income in the table above excludes income from equity method investments of other subsidiary companies of$88.9 million . For the nine months endedSeptember 30, 2022 , theObligor Group recorded the following transactions with other subsidiary companies: sales to such other subsidiary companies of$30.4 million ; net credits from such other subsidiary companies of$43.4 million ; and net interest income from such other subsidiary companies of$16.0 million . For the nine months endedSeptember 30, 2022 , theObligor Group received dividends from other subsidiary companies of$2.3 million . Rationalization Charges We continually evaluate cost reduction opportunities across each of our segments, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Under our rationalization plans, we made cash payments of$6.3 million and$6.9 million for the nine months endedSeptember 30, 2022 and 2021, respectively. Excluding the impact of our withdrawal from the Central States Pension Plan in 2019, remaining expenses and cash expenditures for our rationalization plans are expected to be$3.1 million and$6.0 million , respectively. Remaining expenses for the accretion of interest for the withdrawal liability related to the Central States Pension Plan are expected to average approximately$0.9 million per year and be recognized annually through 2040, and remaining cash expenditures for the withdrawal liability related to the Central States Pension Plan are expected to be approximately$3.1 million annually through 2040. You should also read Note 3 to our Condensed Consolidated Financial Statements for the three and nine months endedSeptember 30, 2022 included elsewhere in this Quarterly Report. -25-
————————————————– ——————————
© Edgar Online, source
Comments are closed.