Company: SLGN
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000849869-25-000072
Chunk: 9

Company: SILGAN HOLDINGS INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
2024, respectively. Unbilled receivables are included in trade accounts receivable, net on our Condensed Consolidated Balance Sheets. 

-8-

SILGAN HOLDINGS INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Information at March 31, 2025 and 2024 and for thethree months then ended is unaudited)

Note 3.               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.  Rationalization charges by segment for the three months ended March 31 were as follows:  20252024 (Dollars in thousands)Dispensing and Specialty Closures$4,371 $6,557 Metal Containers4,932 3,584 Custom Containers1,656 1,550  $10,959 $11,691 Activity in reserves for our rationalization plans were as follows:EmployeeSeveranceand BenefitsPlantExitCostsNon-CashAssetWrite-DownsTotal (Dollars in thousands)Balance at December 31, 2024$29,318 $— $— $29,318 Charged to expense2,986 1,731 6,242 10,959 Utilized and currency translation(1,753)(1,731)(6,242)(9,726)Balance at March 31, 2025$30,551 $— $— $30,551 Non-cash asset write-downs were the result of comparing the carrying value of certain facilities and production related equipment to their fair value using estimated future discounted cash flows, a Level 3 fair value measurement (see Note 7 for information regarding a Level 3 fair value measurement).Rationalization reserves as of March 31, 2025 were recorded in our Condensed Consolidated Balance Sheet as accrued liabilities of $5.7 million and other liabilities of $25.2 million. Excluding the impact of our withdrawal from the Central States, Southeast and Southwest Areas Pension Plan, or the Central States Pension Plan, in 2019, remaining expenses and cash expenditures for our rationalization plans are expected to be $15.9 million and $20.3 million, respectively. Remaining expenses for the accretion of interest for the withdrawal