Company: SLGN
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000849869-25-000029
Chunk: 48

Company: SILGAN HOLDINGS INC
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 48
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 derivative financial instruments to interest rate and natural gas swap agreements.  We do not engage in trading or other speculative uses of derivative financial instruments.  

F-25

SILGAN HOLDINGS INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTSDecember 31, 2024, 2023 and 2022

Our interest rate and natural gas swap agreements are accounted for as cash flow hedges and changes in their fair values are recorded in accumulated other comprehensive loss, a component of stockholder's equity, and reclassified into earnings in future periods when earnings are affected by the variability of the hedged cash flows.   INTEREST RATE SWAP AGREEMENTSFrom time to time, we enter into interest rate swap agreements to manage a portion of our exposure to interest rate fluctuations, effectively converting interest rate exposure from variable rates to fixed rates of interest.  In 2018, we entered into $100.0 million aggregate notional principal amount of U.S. dollar interest rate swap agreements, which matured in March 2023 and had a fixed rate of 2.878 percent. In March 2023, we entered into $300.0 million aggregate notional principal amount of U.S. dollar interest rate swap agreements which mature in April 2026. These agreements have a weighted average fixed rate of 3.90 percent  and were entered into with financial institutions which are expected to fully perform under the terms thereof. In October 2024, we entered into €685.0 million aggregate notional principal amount of Euro interest rate swap agreements to manage a portion of our exposure to interest rate fluctuations for our Euro term loans under the Credit Agreement. These agreements mature as follows: €35.0 million in October 2026; €70.0 million in October 2027; and €580.0 million in October 2030. These agreements have a weighted average fixed rate of 2.43 percent and were entered into with financial institutions which are expected to fully perform under the terms thereof.The difference between amounts to be paid or received on interest rate swap agreements is recorded in interest and other debt expense in our Consolidated Statements of Income, and such difference was not significant for each of the years ended December 31, 2024, 2023 and 2022. The total fair value of our interest rate swap agreements at December 31, 2024 and 2023 was not significant. NATURAL GAS SWAP AGREEMENTSWe have entered into natural gas swap