Company: SLGN
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000849869-25-000029
Chunk: 114

Company: SILGAN HOLDINGS INC
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 114
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 communication of the critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

F-1

Valuation of GoodwillDescription of the MatterAt December 31, 2024, the Company’s goodwill was $2.3 billion. As discussed in Note 1 to the consolidated financial statements, goodwill is tested for impairment each year and more frequently if circumstances indicate a possible impairment.Auditing management’s annual goodwill impairment test was complex and highly judgmental due to the significant estimation required in determining the fair value of the reporting units. In particular, the determination of the fair value of the reporting units using the market approach requires management to make a significant assumption related to the market multiples that are applied to the EBITDA forecast, which are affected by expectations of future market and economic conditions.How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process, including controls over management’s review of the significant assumption described above.To test the estimated fair value of the Company’s reporting units, we performed audit procedures that included, among others, assessing the methodologies and testing the significant assumption described above and the completeness and accuracy of the underlying data used by the Company to develop the assumption.  For example, we compared the significant assumption used by management to current industry and economic trends and evaluated whether changes to such factors would affect the significant assumption. We performed sensitivity analyses over the significant assumption to evaluate the changes in the fair value of the reporting units that would result from changes in the assumption. In performing our testing, we utilized internal valuation specialists to assist us in evaluating the Company's valuation model and related significant assumption. In addition, we tested the reconciliation of the fair value of the reporting units to the market capitalization of the Company.Valuation of Intangible Assets from AcquisitionsDescription of the MatterAs described in Note 3 to the consolidated financial statements, during the year ended December 31, 2024, the Company completed the Weener Plastics Holding B.V. acquisition for total consideration of $921.6 million, net of cash acquired.  The initial purchase price was allocated to assets acquired and liabilities assumed based on the estimated fair value of such assets and liabilities.Auditing the Company's accounting for the Weener Plastics Holding B.V. acquisition