SILGAN HOLDINGS INCSLGN
SILGAN HOLDINGS INC Segments Disclosure
BUSINESS SEGMENT INFORMATION
We are engaged in the packaging industry and report our results in three segments, which are our reportable segments: dispensing and specialty closures; metal containers; and custom containers. The dispensing and specialty closures segment manufactures an extensive range of dispensing systems and specialty closures for fragrance and beauty, food, beverage, personal and health care, home care and lawn and garden products. The metal containers segment manufactures steel and aluminum containers for pet and human food and general line products. The custom containers segment manufactures custom designed plastic containers for pet and human food, consumer health and pharmaceutical, personal care, home care, lawn and garden and automotive products. These segments are strategic business operations that are managed separately to maximize the production, technology and marketing of their packaging products. This is consistent with how our chief operating decision maker, who is our Chief Executive Officer and President, allocates resources and makes decisions. Our dispensing and specialty closures segment operates in North and South America, Europe and Asia. Our metal containers segment operates primarily in North America and Europe. Our custom containers segment operates in North America. The accounting policies of the business segments are the same as those described in Note 1.
Our chief operating decision maker evaluates performance of our business segments and allocates resources based on the adjusted EBIT of our business segments. Adjusted EBIT is not a defined term under GAAP. Adjusted EBIT is defined as income before interest and income taxes excluding acquired intangible asset amortization expense, other pension (income) expense for U.S. pension plans, rationalization charges, the impact from charges for the write-up of acquired inventory required under purchase accounting and costs attributed to announced acquisitions and including, as applicable, equity in earnings of affiliates, net of tax. Adjusted EBIT should not be considered in isolation or as a substitute for income before interest and income taxes or any other financial data prepared in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.
Reportable segment information for each of the past three years is as follows:
| Dispensing and Specialty Closures | Metal Containers | Custom Containers | Corporate | Total | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||
| Net sales | $ | 2,707,244 | $ | 3,138,318 | $ | 637,604 | $ | — | $ | 6,483,166 | |||||||||||||||||||
Segment expenses and other (a) | 2,290,462 | 2,877,948 | 547,659 | 46,997 | 5,763,066 | ||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 3,160 | — | — | — | 3,160 | ||||||||||||||||||||||||
| Adjusted EBIT | 419,942 | 260,370 | 89,945 | (46,997) | 723,260 | ||||||||||||||||||||||||
| Depreciation | 147,313 | 72,769 | 34,071 | 387 | 254,540 | ||||||||||||||||||||||||
| Segment assets | 5,815,628 | 2,679,769 | 777,865 | 45,391 | 9,318,653 | ||||||||||||||||||||||||
| Capital expenditures | 188,186 | 90,995 | 26,701 | 1,210 | 307,092 | ||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
| Net sales | $ | 2,304,370 | $ | 2,900,678 | $ | 649,646 | $ | — | $ | 5,854,694 | |||||||||||||||||||
Segment expenses and other (a) | 1,939,445 | 2,658,257 | 568,668 | 30,815 | 5,197,185 | ||||||||||||||||||||||||
Equity in earnings of affiliates, net of tax | 685 | — | — | — | 685 | ||||||||||||||||||||||||
| Adjusted EBIT | 365,610 | 242,421 | 80,978 | (30,815) | 658,194 | ||||||||||||||||||||||||
| Depreciation | 109,956 | 77,389 | 35,757 | 162 | 223,264 | ||||||||||||||||||||||||
| Segment assets | 5,376,183 | 2,309,297 | 805,657 | 45,082 | 8,536,219 | ||||||||||||||||||||||||
| Capital expenditures | 126,185 | 104,701 | 31,842 | 58 | 262,786 | ||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||
| Net sales | $ | 2,221,430 | $ | 3,140,830 | $ | 625,945 | $ | — | $ | 5,988,205 | |||||||||||||||||||
Segment expenses and other (a) | 1,880,786 | 2,858,428 | 562,628 | 25,810 | 5,327,652 | ||||||||||||||||||||||||
| Adjusted EBIT | 340,644 | 282,402 | 63,317 | (25,810) | 660,553 | ||||||||||||||||||||||||
| Depreciation | 101,664 | 73,558 | 34,846 | 74 | 210,142 | ||||||||||||||||||||||||
| Segment assets | 4,437,833 | 2,178,416 | 898,582 | 46,270 | 7,561,101 | ||||||||||||||||||||||||
| Capital expenditures | 110,073 | 95,260 | 20,474 | 1,003 | 226,810 | ||||||||||||||||||||||||
______________________
(a) Segment expenses and other includes cost of goods sold, selling, general and administrative expenses, and other pension and postretirement (income) expense and excludes acquired intangible asset amortization expense, other pension (income) expense only for U.S. pension plans, the impact from charges for the write-up of acquired inventory, and costs attributed to announced acquisitions.
Total adjusted EBIT is reconciled to income before income taxes as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Total adjusted EBIT | $ | 723,260 | $ | 658,194 | $ | 660,553 | |||||||||||
| Less: | |||||||||||||||||
| Acquired intangible asset amortization expense | 64,623 | 52,620 | 53,091 | ||||||||||||||
| Other pension (income) expense for U.S. pension plans | (4,016) | (4,110) | 3,614 | ||||||||||||||
| Equity in earnings of affiliates, net of tax | 3,160 | 685 | — | ||||||||||||||
| Rationalization charges | 60,509 | 59,481 | 8,412 | ||||||||||||||
| Purchase accounting write-up of inventory | — | 6,062 | — | ||||||||||||||
| Costs attributed to announced acquisitions | 1,117 | 28,361 | — | ||||||||||||||
| Income before interest and income taxes | 597,867 | 515,095 | 595,436 | ||||||||||||||
| Interest and other debt expense | 189,365 | 167,425 | 173,315 | ||||||||||||||
| Income before income taxes | $ | 408,502 | $ | 347,670 | $ | 422,121 | |||||||||||
Total segment assets at December 31 are reconciled to total assets as follows:
| 2025 | 2024 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Total segment assets | $ | 9,318,653 | $ | 8,536,219 | |||||||
| Other assets | 78,430 | 48,449 | |||||||||
| Total assets | $ | 9,397,083 | $ | 8,584,668 | |||||||
Financial information relating to our operations by geographic area is as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Net sales: | |||||||||||||||||
| United States | $ | 4,396,143 | $ | 4,159,904 | $ | 4,377,928 | |||||||||||
| Foreign: | |||||||||||||||||
| Europe | 1,543,116 | 1,241,806 | 1,201,534 | ||||||||||||||
| Other | 543,907 | 452,984 | 408,743 | ||||||||||||||
Total net sales from foreign operations | 2,087,023 | 1,694,790 | 1,610,277 | ||||||||||||||
| Total net sales | $ | 6,483,166 | $ | 5,854,694 | $ | 5,988,205 | |||||||||||
| Long-lived assets: | |||||||||||||||||
| United States | $ | 1,229,877 | $ | 1,245,639 | |||||||||||||
| Foreign: | |||||||||||||||||
| Europe | 879,063 | 774,099 | |||||||||||||||
| Other | 269,391 | 263,165 | |||||||||||||||
Total long-lived assets at foreign operations | 1,148,454 | 1,037,264 | |||||||||||||||
| Total long-lived assets | $ | 2,378,331 | $ | 2,282,903 | |||||||||||||
Net sales are attributed to the country from which the product was manufactured and shipped.
Sales of our metal containers segment to Nestlé S.A. accounted for 12.3 percent, 11.6 percent and 11.2 percent of our consolidated net sales in 2025, 2024 and 2023, respectively.
Sales and adjusted EBIT of our metal containers segment and of part of our dispensing and specialty closures segment are dependent, in part, upon the vegetable and fruit harvests in the United States and, to a lesser extent, in a variety of national growing regions in Europe. The size and quality of these harvests varies from year to year, depending in large part upon the weather conditions in applicable regions. Because of the seasonality of the harvests, we have historically experienced higher unit sales volume in the third quarter of our fiscal year and generated a disproportionate amount of our annual adjusted EBIT during that quarter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.