Company: SLGN
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000849869-25-000029
Chunk: 16

Company: SILGAN HOLDINGS INC
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 16
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 Holding B.V. acquisition required complex auditor judgement due to the significant estimation uncertainty inherent in determining the fair value of the identified intangible asset for acquired customer relationships.  The significant estimation uncertainty was primarily due to the judgmental nature of the inputs to the valuation techniques used to measure the fair value of the customer relationships as well as the sensitivity of the respective fair value to the underlying significant assumptions.  The significant assumptions used to estimate the fair value of the acquired customer relationships included discount rates, revenue growth rates and operating margins.  These significant assumptions are forward-looking and could be affected by future economic and market conditions.

F-2

How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design and tested the operating effectiveness of the Company's controls over the valuation of intangible assets from the acquisition. For example, we tested controls over management's review of the valuation model and the significant assumptions described above.To test the estimated fair value of the acquired customer relationships, we performed audit procedures that included, among others, assessing the appropriateness of the valuation methodology and testing the significant assumptions discussed above and the completeness and accuracy of the underlying data used by the Company.  For example, we compared the revenue growth rates and operating margins to the historical results of the acquired business.  We further performed sensitivity analyses to evaluate the changes in the fair value of the acquired customer relationships that would result from changes in the significant assumptions.  In addition, we involved internal valuation specialists to assist us in our evaluation of the valuation methodology and certain significant assumptions used by the Company.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1987.

Stamford, Connecticut

February 27, 2025

F-3

SILGAN HOLDINGS INC.CONSOLIDATED BALANCE SHEETSDecember 31, 2024 and 2023(Dollars in thousands, except share and per share data)

20242023AssetsCurrent assets:Cash and cash equivalents$822,854 $642,923 Trade accounts receivable, less allowancesof $9,506 and $8,827, respectively594,279 599,524 Inventories928,056 940,808 Prepaid expenses and other current assets177,494 165,727 Total current assets2,522,683 2,348,982 Property, plant and equipment, net2,282,903 1,961,585 Goodwill2,316,031 2,018,