|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Delaware
|
26-0405422
|
(State or other jurisdiction of
|
(I.R.S. employer
|
incorporation or organization)
|
identification no.)
|
|
|
1500 Riveredge Parkway, Suite 100
|
|
Atlanta, Georgia
|
30328
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
þ
|
Accelerated filer
o
|
Smaller reporting company
o
|
|||
|
|
||||
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Emerging growth company
o
|
|
EX-31.1
|
|
EX-31.2
|
|
EX-32.1
|
|
EX-32.2
|
|
XBRL Content
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||
|
June 30,
|
June 30,
|
||||||||||||
In millions, except per share amounts
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Net Sales
|
$
|
1,509.3
|
|
|
$
|
1,094.7
|
|
$
|
2,985.3
|
|
|
$
|
2,156.2
|
|
Cost of Sales
|
1,273.4
|
|
|
920.9
|
|
2,526.9
|
|
|
1,810.5
|
|
||||
Selling, General and Administrative
|
114.5
|
|
|
84.3
|
|
235.8
|
|
|
176.2
|
|
||||
Other Expense (Income), Net
|
2.5
|
|
|
(0.4
|
)
|
3.4
|
|
|
(0.6
|
)
|
||||
Business Combinations and Shutdown and Other Special Charges, Net
|
8.6
|
|
|
6.1
|
|
34.9
|
|
|
14.7
|
|
||||
Income from Operations
|
110.3
|
|
|
83.8
|
|
184.3
|
|
|
155.4
|
|
||||
Nonoperating Pension and Postretirement Benefit Income
|
4.1
|
|
|
3.8
|
|
8.3
|
|
|
7.7
|
|
||||
Interest Expense, Net
|
(30.3
|
)
|
|
(22.5
|
)
|
(59.1
|
)
|
|
(43.8
|
)
|
||||
Loss on Modification or Extinguishment of Debt
|
—
|
|
|
—
|
|
(1.9
|
)
|
|
—
|
|
||||
Income before Income Taxes and Equity Income of Unconsolidated Entity
|
84.1
|
|
|
65.1
|
|
131.6
|
|
|
119.3
|
|
||||
Income Tax Expense
|
(18.5
|
)
|
|
(23.6
|
)
|
(23.6
|
)
|
|
(41.2
|
)
|
||||
Income before Equity Income of Unconsolidated Entity
|
65.6
|
|
|
41.5
|
|
108.0
|
|
|
78.1
|
|
||||
Equity Income of Unconsolidated Entity
|
0.4
|
|
|
0.5
|
|
0.7
|
|
|
0.9
|
|
||||
Net Income
|
66.0
|
|
|
42.0
|
|
108.7
|
|
|
79.0
|
|
||||
Net Income Attributable to Noncontrolling Interest
|
(16.6
|
)
|
|
—
|
|
(29.4
|
)
|
|
—
|
|
||||
Net Income Attributable to Graphic Packaging Holding Company
|
$
|
49.4
|
|
|
$
|
42.0
|
|
$
|
79.3
|
|
|
$
|
79.0
|
|
|
|
|
|
|
|
|
||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Basic
|
$
|
0.16
|
|
|
$
|
0.14
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
Net Income Per Share Attributable to Graphic Packaging Holding Company — Diluted
|
$
|
0.16
|
|
|
$
|
0.14
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
Cash Dividends Declared Per Share
|
$
|
0.075
|
|
|
$
|
0.075
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|||||||||||||
|
June 30,
|
|
June 30,
|
|||||||||||||
In millions
|
2018
|
|
2017
|
|||||||||||||
|
Graphic Packaging Holding Company
|
Noncontrolling Interest
|
Redeemable Noncontrolling Interest
|
Total
|
|
Graphic Packaging Holding Company
|
||||||||||
Net Income
|
$
|
49.4
|
|
$
|
12.8
|
|
$
|
3.8
|
|
$
|
66.0
|
|
|
$
|
42.0
|
|
Other Comprehensive Income (Loss), Net of Tax:
|
|
|
|
|
|
|
||||||||||
Derivative Instruments
|
2.0
|
|
0.4
|
|
0.1
|
|
2.5
|
|
|
(2.0
|
)
|
|||||
Pension and Postretirement Benefit Plans
|
0.8
|
|
0.1
|
|
—
|
|
0.9
|
|
|
0.8
|
|
|||||
Currency Translation Adjustment
|
(24.8
|
)
|
(4.7
|
)
|
(1.4
|
)
|
(30.9
|
)
|
|
17.2
|
|
|||||
Total Other Comprehensive (Loss) Income, Net of Tax
|
(22.0
|
)
|
(4.2
|
)
|
(1.3
|
)
|
(27.5
|
)
|
|
16.0
|
|
|||||
Total Comprehensive Income
|
$
|
27.4
|
|
$
|
8.6
|
|
$
|
2.5
|
|
$
|
38.5
|
|
|
$
|
58.0
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
|
|
June 30,
|
|||||||||||||
In millions
|
2018
|
|
2017
|
|||||||||||||
|
Graphic Packaging Holding Company
|
Noncontrolling Interest
|
Redeemable Noncontrolling Interest
|
Total
|
|
Graphic Packaging Holding Company
|
||||||||||
Net Income
|
$
|
79.3
|
|
$
|
22.7
|
|
$
|
6.7
|
|
$
|
108.7
|
|
|
$
|
79.0
|
|
Other Comprehensive Income (Loss), Net of Tax:
|
|
|
|
|
|
|
||||||||||
Derivative Instruments
|
1.4
|
|
0.2
|
|
0.1
|
|
1.7
|
|
|
(3.9
|
)
|
|||||
Pension and Postretirement Benefit Plans
|
1.3
|
|
0.2
|
|
0.1
|
|
1.6
|
|
|
1.5
|
|
|||||
Currency Translation Adjustment
|
(8.8
|
)
|
(1.5
|
)
|
(0.5
|
)
|
(10.8
|
)
|
|
36.1
|
|
|||||
Total Other Comprehensive (Loss) Income, Net of Tax
|
(6.1
|
)
|
(1.1
|
)
|
(0.3
|
)
|
(7.5
|
)
|
|
33.7
|
|
|||||
Total Comprehensive Income
|
$
|
73.2
|
|
$
|
21.6
|
|
$
|
6.4
|
|
$
|
101.2
|
|
|
$
|
112.7
|
|
In millions, except share and per share amounts
|
June 30,
2018 |
|
December 31, 2017
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and Cash Equivalents
|
$
|
50.9
|
|
|
$
|
67.4
|
|
Receivables, Net
|
701.2
|
|
|
422.8
|
|
||
Inventories, Net
|
989.9
|
|
|
634.0
|
|
||
Other Current Assets
|
74.4
|
|
|
45.7
|
|
||
Total Current Assets
|
1,816.4
|
|
|
1,169.9
|
|
||
Property, Plant and Equipment, Net
|
3,114.9
|
|
|
1,867.2
|
|
||
Goodwill
|
1,557.9
|
|
|
1,323.0
|
|
||
Intangible Assets, Net
|
507.5
|
|
|
436.5
|
|
||
Other Assets
|
82.6
|
|
|
66.4
|
|
||
Total Assets
|
$
|
7,079.3
|
|
|
$
|
4,863.0
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
||||
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Short-Term Debt and Current Portion of Long-Term Debt
|
$
|
51.5
|
|
|
$
|
61.3
|
|
Accounts Payable
|
629.4
|
|
|
516.5
|
|
||
Compensation and Employee Benefits
|
150.0
|
|
|
113.4
|
|
||
Other Accrued Liabilities
|
195.4
|
|
|
160.2
|
|
||
Total Current Liabilities
|
1,026.3
|
|
|
851.4
|
|
||
Long-Term Debt
|
2,924.3
|
|
|
2,213.2
|
|
||
Deferred Income Tax Liabilities
|
447.0
|
|
|
321.8
|
|
||
Accrued Pension and Postretirement Benefits
|
75.4
|
|
|
80.0
|
|
||
Other Noncurrent Liabilities
|
150.8
|
|
|
104.7
|
|
||
|
|
|
|
|
|||
Redeemable Noncontrolling Interest (Note 12)
|
287.1
|
|
|
—
|
|
||
|
|
|
|
||||
SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Preferred Stock, par value $.01 per share; 100,000,000 shares authorized; no shares issued or outstanding
|
—
|
|
|
—
|
|
||
Common Stock, par value $.01 per share; 1,000,000,000 shares authorized; 310,343,836 and 309,715,624 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
|
3.1
|
|
|
3.1
|
|
||
Capital in Excess of Par Value
|
2,077.6
|
|
|
1,683.6
|
|
||
Accumulated Deficit
|
(23.3
|
)
|
|
(56.0
|
)
|
||
Accumulated Other Comprehensive Loss
|
(344.9
|
)
|
|
(338.8
|
)
|
||
Total Graphic Packaging Holding Company Shareholders' Equity
|
1,712.5
|
|
|
1,291.9
|
|
||
Noncontrolling Interest
|
455.9
|
|
|
—
|
|
||
Total Equity
|
2,168.4
|
|
|
1,291.9
|
|
||
Total Liabilities and Shareholders' Equity
|
$
|
7,079.3
|
|
|
$
|
4,863.0
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
In millions
|
2018
|
|
2017
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net Income
|
$
|
108.7
|
|
|
$
|
79.0
|
|
Non-cash Items Included in Net Income:
|
|
|
|
||||
Depreciation and Amortization
|
221.1
|
|
|
150.2
|
|
||
Deferred Income Taxes
|
7.6
|
|
|
30.7
|
|
||
Amount of Postretirement Expense Less Than Funding
|
(1.9
|
)
|
|
(15.4
|
)
|
||
Other, Net
|
23.0
|
|
|
(4.5
|
)
|
||
Changes in Operating Assets and Liabilities
|
(658.7
|
)
|
|
(343.9
|
)
|
||
Net Cash Used in Operating Activities
|
(300.2
|
)
|
|
(103.9
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Capital Spending
|
(167.3
|
)
|
|
(135.8
|
)
|
||
Packaging Machinery Spending
|
(6.1
|
)
|
|
(8.7
|
)
|
||
Acquisition of Businesses, Net of Cash Acquired
|
3.4
|
|
|
—
|
|
||
Beneficial Interest on Sold Receivables
|
624.0
|
|
|
284.5
|
|
||
Beneficial Interest Obtained in Exchange for Proceeds
|
(150.9
|
)
|
|
(15.5
|
)
|
||
Other, Net
|
(3.4
|
)
|
|
(2.3
|
)
|
||
Net Cash Provided by Investing Activities
|
299.7
|
|
|
122.2
|
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Repurchase of Common Stock
|
—
|
|
|
(59.6
|
)
|
||
Payments on Debt
|
(134.1
|
)
|
|
(12.5
|
)
|
||
Borrowings under Revolving Credit Facilities
|
961.1
|
|
|
502.3
|
|
||
Payments on Revolving Credit Facilities
|
(779.4
|
)
|
|
(449.0
|
)
|
||
Repurchase of Common Stock related to Share-Based Payments
|
(4.1
|
)
|
|
(10.0
|
)
|
||
Debt Issuance Costs
|
(7.9
|
)
|
|
—
|
|
||
Dividends and Distributions Paid
|
(52.5
|
)
|
|
(46.9
|
)
|
||
Other, Net
|
1.7
|
|
|
9.1
|
|
||
Net Cash Used in Financing Activities
|
(15.2
|
)
|
|
(66.6
|
)
|
||
Effect of Exchange Rate Changes on Cash
|
(0.8
|
)
|
|
1.7
|
|
||
Net Decrease in Cash and Cash Equivalents
|
(16.5
|
)
|
|
(46.6
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
67.4
|
|
|
59.1
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
50.9
|
|
|
$
|
12.5
|
|
|
|
|
|
||||
Non-cash Investing Activities:
|
|
|
|
||||
Beneficial Interest Obtained in Exchange for Trade Receivables
|
$
|
583.9
|
|
|
$
|
280.6
|
|
Non-cash Investment in NACP Combination
|
1,235.7
|
|
|
—
|
|
||
Non-cash Investing Activities
|
$
|
1,819.6
|
|
|
$
|
280.6
|
|
Non-cash Financing Activities:
|
|
|
|
||||
Non-cash Financing of NACP Combination
|
$
|
660.0
|
|
|
$
|
—
|
|
Non-Cash Financing Activities
|
$
|
660.0
|
|
|
$
|
—
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
In millions
|
2018
|
|
2017
|
||||
Receivables Sold and Derecognized
|
$
|
1,669.6
|
|
|
$
|
683.2
|
|
Proceeds Collected on Behalf of Financial Institutions
|
1,632.0
|
|
|
644.3
|
|
||
Net Proceeds (Paid to) Received From Financial Institutions
|
(51.5
|
)
|
|
29.9
|
|
||
Deferred Purchase Price
(a)
|
202.4
|
|
|
38.3
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
In millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Charges Associated with Business Combinations
|
$
|
6.6
|
|
|
$
|
5.4
|
|
|
$
|
33.6
|
|
|
$
|
9.3
|
|
Shutdown and Other Special Charges
|
2.0
|
|
|
0.7
|
|
|
2.8
|
|
|
5.4
|
|
||||
Gain on Sale of Assets
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
||||
Total
|
$
|
8.6
|
|
|
$
|
6.1
|
|
|
$
|
34.9
|
|
|
$
|
14.7
|
|
In millions
|
June 30,
2018 |
|
December 31, 2017
|
||||
Finished Goods
|
$
|
408.6
|
|
|
$
|
240.5
|
|
Work in Progress
|
106.6
|
|
|
74.1
|
|
||
Raw Materials
|
318.6
|
|
|
229.4
|
|
||
Supplies
|
156.1
|
|
|
90.0
|
|
||
Total
|
$
|
989.9
|
|
|
$
|
634.0
|
|
In millions
|
Amounts Recognized as of Acquisition Dates
|
|
Measurement Period Adjustments
|
|
Amounts Recognized as of Acquisition Dates (as adjusted)
|
||||||
Purchase Price
|
$
|
1,270.2
|
|
|
$
|
(41.3
|
)
|
|
$
|
1,228.9
|
|
Assumed Debt
|
660.0
|
|
|
—
|
|
|
660.0
|
|
|||
Total Purchase Consideration
|
$
|
1,930.2
|
|
|
$
|
(41.3
|
)
|
|
$
|
1,888.9
|
|
|
|
|
|
|
|
||||||
Receivables, Net
|
145.3
|
|
|
—
|
|
|
145.3
|
|
|||
Inventories, Net
|
300.4
|
|
|
—
|
|
|
300.4
|
|
|||
Other Current Assets
|
20.9
|
|
|
—
|
|
|
20.9
|
|
|||
Property, Plant and Equipment, Net
|
1,221.6
|
|
|
12.5
|
|
|
1,234.1
|
|
|||
Intangible Assets, Net
(a)
|
103.6
|
|
|
0.2
|
|
|
103.8
|
|
|||
Other Assets
|
6.0
|
|
|
—
|
|
|
6.0
|
|
|||
Total Assets Acquired
|
1,797.8
|
|
|
12.7
|
|
|
1,810.5
|
|
|||
Accounts Payable
|
112.6
|
|
|
—
|
|
|
112.6
|
|
|||
Compensation and Employee Benefits
|
20.7
|
|
|
—
|
|
|
20.7
|
|
|||
Current Liabilities
|
12.4
|
|
|
—
|
|
|
12.4
|
|
|||
Other Noncurrent Liabilities
|
10.1
|
|
|
—
|
|
|
10.1
|
|
|||
Total Liabilities Assumed
|
155.8
|
|
|
—
|
|
|
155.8
|
|
|||
Net Assets Acquired
|
1,642.0
|
|
|
12.7
|
|
|
1,654.7
|
|
|||
Goodwill
|
288.2
|
|
|
(54.0
|
)
|
|
234.2
|
|
|||
Total Estimated Fair Value of Net Assets Acquired
|
$
|
1,930.2
|
|
|
$
|
(41.3
|
)
|
|
$
|
1,888.9
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30,
|
|
June 30,
|
||||
In millions, except per share data
|
2017
|
|
2017
|
||||
Net Sales
|
$
|
1,471.8
|
|
|
$
|
2,899.6
|
|
Net Income Attributable to Graphic Packaging Holding Company
|
27.1
|
|
|
68.2
|
|
||
Income Per Share — Basic
|
0.09
|
|
|
0.22
|
|
||
Income Per Share — Diluted
|
0.09
|
|
|
0.22
|
|
In millions
|
June 30, 2018
|
|
December 31, 2017
|
||||
Senior Notes with interest payable semi-annually at 4.125%, effective rate of 4.18%, payable in 2024
|
$
|
300.0
|
|
|
$
|
300.0
|
|
Senior Notes with interest payable semi-annually at 4.875%, effective rate of 4.93%, payable in 2022
|
250.0
|
|
|
250.0
|
|
||
Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.78%, payable in 2021
|
425.0
|
|
|
425.0
|
|
||
Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (3.48% at June 30, 2018) payable through 2023
|
1,450.9
|
|
|
925.0
|
|
||
Senior Secured Revolving Facilities with interest payable at floating rates (3.11% at June 30, 2018) payable in 2023
|
493.6
|
|
|
319.0
|
|
||
Capital Lease Obligations
|
28.6
|
|
|
30.0
|
|
||
Other
|
26.7
|
|
|
28.9
|
|
||
Total Long-Term Debt
|
2,974.8
|
|
|
2,277.9
|
|
||
Less: Current Portion
|
38.5
|
|
|
52.2
|
|
||
|
2,936.3
|
|
|
2,225.7
|
|
||
Less: Unamortized Deferred Debt Issuance Costs
|
12.0
|
|
|
12.5
|
|
||
Total
|
$
|
2,924.3
|
|
|
$
|
2,213.2
|
|
In millions
|
Total
Commitments
|
|
Total
Outstanding
|
|
Total Available
|
||||||
Senior Secured Domestic Revolving Credit Facility
(a)
|
$
|
1,450.0
|
|
|
$
|
389.6
|
|
|
$
|
1,033.4
|
|
Senior Secured International Revolving Credit Facility
|
183.7
|
|
|
104.0
|
|
|
79.7
|
|
|||
Other International Facilities
|
65.5
|
|
|
37.2
|
|
|
28.3
|
|
|||
Total
|
$
|
1,699.2
|
|
|
$
|
530.8
|
|
|
$
|
1,141.4
|
|
(a)
|
In accordance with its debt agreements, the Company’s availability under its revolving credit facilities has been reduced by the amount of standby letters of credit issued of
$27.0 million
as of
June 30, 2018
. These letters of credit are primarily used as security against its self-insurance obligations and workers’ compensation obligations. These letters of credit expire at various dates through 2019 unless extended.
|
|
RSUs
|
|
Weighted Average
Grant Date Fair
Value Per Share
|
|||
RSUs — Employees
|
1,504,630
|
|
|
$
|
14.82
|
|
Stock Awards - Board of Directors
|
51,226
|
|
|
$
|
15.03
|
|
|
Pension Benefits
|
|
Postretirement Health Care Benefits
|
||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||||||||
|
June 30,
|
|
June 30,
|
|
June 30,
|
June 30,
|
|||||||||||||||||||||||||
In millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
Components of Net Periodic Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service Cost
|
$
|
4.6
|
|
|
$
|
1.9
|
|
|
$
|
9.2
|
|
|
$
|
4.5
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
Interest Cost
|
10.5
|
|
|
10.6
|
|
|
21.0
|
|
|
21.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
|
0.7
|
|
||||||||
Administrative Expenses
|
0.1
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Expected Return on Plan Assets
|
(15.9
|
)
|
|
(15.9
|
)
|
|
(31.9
|
)
|
|
(31.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Prior Service Cost (Credit)
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||||||||
Actuarial Loss (Gain)
|
1.4
|
|
|
1.5
|
|
|
2.8
|
|
|
3.2
|
|
|
(0.4
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|
(1.1
|
)
|
||||||||
Net Periodic Cost (Benefit)
|
$
|
0.8
|
|
|
$
|
(1.7
|
)
|
|
$
|
1.5
|
|
|
$
|
(2.7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
(0.1
|
)
|
Start
|
End
|
(In Millions)
Notional Amount |
Weighted Average Interest Rate
|
12/01/2017
|
10/01/2018
|
$250.0
|
1.16%
|
04/01/2018
|
01/01/2019
|
$150.0
|
2.03%
|
04/01/2018
|
01/01/2020
|
$150.0
|
2.25%
|
04/01/2018
|
10/01/2020
|
$150.0
|
2.36%
|
12/03/2018
|
01/01/2022
|
$120.0
|
2.92%
|
12/03/2018
|
01/04/2022
|
$80.0
|
2.79%
|
In millions
|
|
||
Balance at December 31, 2017
|
$
|
(0.3
|
)
|
Reclassification to Earnings
|
0.2
|
|
|
Current Period Change in Fair Value
|
1.9
|
|
|
Balance at June 30, 2018
|
$
|
1.8
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
In millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
NET SALES:
|
|
|
|
|
|
|
|
||||||||
Paperboard Mills
|
$
|
266.8
|
|
|
$
|
96.9
|
|
|
$
|
544.8
|
|
|
$
|
195.0
|
|
Americas Paperboard Packaging
|
1,022.8
|
|
|
812.7
|
|
|
2,012.7
|
|
|
1,605.5
|
|
||||
Europe Paperboard Packaging
|
184.7
|
|
|
138.7
|
|
|
359.2
|
|
|
278.4
|
|
||||
Corporate/Other/Eliminations
(a)
|
35.0
|
|
|
46.4
|
|
|
68.6
|
|
|
77.3
|
|
||||
Total
|
$
|
1,509.3
|
|
|
$
|
1,094.7
|
|
|
$
|
2,985.3
|
|
|
$
|
2,156.2
|
|
|
|
|
|
|
|
|
|
||||||||
INCOME (LOSS) FROM OPERATIONS:
|
|
|
|
|
|
|
|
||||||||
Paperboard Mills
|
$
|
(8.4
|
)
|
|
$
|
(10.3
|
)
|
|
$
|
(15.1
|
)
|
|
$
|
(22.6
|
)
|
Americas Paperboard Packaging
|
114.3
|
|
|
90.5
|
|
|
226.3
|
|
|
179.9
|
|
||||
Europe Paperboard Packaging
|
12.8
|
|
|
9.0
|
|
|
27.5
|
|
|
16.0
|
|
||||
Corporate and Other
(b)
|
(8.4
|
)
|
|
(5.4
|
)
|
|
(54.4
|
)
|
|
(17.9
|
)
|
||||
Total
|
$
|
110.3
|
|
|
$
|
83.8
|
|
|
$
|
184.3
|
|
|
$
|
155.4
|
|
|
|
|
|
|
|
|
|
||||||||
DEPRECIATION AND AMORTIZATION:
|
|
|
|
|
|
|
|
||||||||
Paperboard Mills
|
$
|
57.2
|
|
|
$
|
31.2
|
|
|
$
|
108.7
|
|
|
$
|
61.8
|
|
Americas Paperboard Packaging
|
37.3
|
|
|
29.5
|
|
|
78.3
|
|
|
59.7
|
|
||||
Europe Paperboard Packaging
|
12.3
|
|
|
10.1
|
|
|
24.8
|
|
|
19.9
|
|
||||
Corporate and Other
|
4.5
|
|
|
4.4
|
|
|
9.3
|
|
|
8.8
|
|
||||
Total
|
$
|
111.3
|
|
|
$
|
75.2
|
|
|
$
|
221.1
|
|
|
$
|
150.2
|
|
(a)
|
Includes Revenue from contracts with customers for the Australia and Pacific Rim operating segments, which is
no
t material.
|
(b)
|
Includes expenses related to acquisitions, integration activities and shutdown costs.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
In millions, except per share data
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net Income Attributable to Graphic Packaging Holding Company
|
$
|
49.4
|
|
|
$
|
42.0
|
|
|
$
|
79.3
|
|
|
$
|
79.0
|
|
Weighted Average Shares:
|
|
|
|
|
|
|
|
||||||||
Basic
|
310.7
|
|
|
310.7
|
|
|
310.6
|
|
|
311.8
|
|
||||
Dilutive Effect of RSUs
|
0.6
|
|
|
0.4
|
|
|
0.7
|
|
|
0.7
|
|
||||
Diluted
|
311.3
|
|
|
311.1
|
|
|
311.3
|
|
|
312.5
|
|
||||
Income Per Share — Basic
|
$
|
0.16
|
|
|
$
|
0.14
|
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
Income Per Share — Diluted
|
$
|
0.16
|
|
|
$
|
0.14
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
In millions
|
|
||
Balance at December 31, 2017
|
$
|
—
|
|
Issuance of Redeemable Noncontrolling Interest at January 1, 2018
|
283.5
|
|
|
Net Income Attributable to Redeemable Noncontrolling Interest
|
6.7
|
|
|
Other Comprehensive Loss, Net of Tax
|
(0.3
|
)
|
|
Distributions of Membership Interest
|
(2.8
|
)
|
|
Balance at June 30, 2018
|
$
|
287.1
|
|
In millions
|
Graphic Packaging Holding Company Shareholders Equity
|
Noncontrolling Interest
(a)
|
Total Shareholders' Equity
|
||||||
Balance at December 31, 2017
|
$
|
1,291.9
|
|
$
|
—
|
|
$
|
1,291.9
|
|
NACP Combination
|
390.1
|
|
443.7
|
|
833.8
|
|
|||
Net Income
|
79.3
|
|
22.7
|
|
102.0
|
|
|||
Other Comprehensive Loss, Net of Tax
|
(6.1
|
)
|
(1.1
|
)
|
(7.2
|
)
|
|||
Dividends Declared
|
(46.6
|
)
|
—
|
|
(46.6
|
)
|
|||
Compensation Expense Under Share-Based Plans
|
8.0
|
|
—
|
|
8.0
|
|
|||
Repurchase of Common Stock related to Share-Based Payments
|
(4.1
|
)
|
—
|
|
(4.1
|
)
|
|||
Distributions of Membership Interest
|
—
|
|
(9.4
|
)
|
(9.4
|
)
|
|||
Balance at June 30, 2018
|
$
|
1,712.5
|
|
$
|
455.9
|
|
$
|
2,168.4
|
|
In millions
|
Derivative Instruments
|
|
Pension Benefit Plans
|
|
Postretirement Benefit Plans
|
|
Currency Translation Adjustment
|
|
Total
|
||||||||||
Balance at December 31, 2017
|
$
|
(10.3
|
)
|
|
$
|
(242.5
|
)
|
|
$
|
15.8
|
|
|
$
|
(101.8
|
)
|
|
$
|
(338.8
|
)
|
Other Comprehensive Income (Loss) before Reclassifications
|
1.5
|
|
|
—
|
|
|
—
|
|
|
(10.8
|
)
|
|
(9.3
|
)
|
|||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
(b)
|
0.2
|
|
|
2.4
|
|
|
(0.8
|
)
|
|
—
|
|
|
1.8
|
|
|||||
Net Current-period Other Comprehensive Income (Loss)
|
1.7
|
|
|
2.4
|
|
|
(0.8
|
)
|
|
(10.8
|
)
|
|
(7.5
|
)
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Current-period Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest
(c)
|
0.3
|
|
|
0.4
|
|
|
(0.1
|
)
|
|
(2.0
|
)
|
|
(1.4
|
)
|
|||||
Balance at June 30, 2018
|
$
|
(8.9
|
)
|
|
$
|
(240.5
|
)
|
|
$
|
15.1
|
|
|
$
|
(110.6
|
)
|
|
$
|
(344.9
|
)
|
(a)
|
All amounts are net of income taxes.
|
In millions
|
|
|
|
|
||
Details about Accumulated Other Comprehensive Income Components
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement Where Net Income is Presented
|
||
Derivatives Instruments:
|
|
|
|
|
||
Commodity Contracts
|
|
$
|
(0.4
|
)
|
|
Cost of Sales
|
Foreign Currency Contracts
|
|
1.0
|
|
|
Other Expense (Income), Net
|
|
Interest Rate Swap Agreements
|
|
(0.4
|
)
|
|
Interest Income, Net
|
|
|
|
0.2
|
|
|
Total before Tax
|
|
|
|
—
|
|
|
Tax Benefit
|
|
|
|
$
|
0.2
|
|
|
Net of Tax
|
|
|
|
|
|
||
Amortization of Defined Benefit Pension Plans:
|
|
|
|
|
||
Prior Service Costs
|
|
$
|
0.2
|
|
(a)
|
|
Actuarial Losses
|
|
2.8
|
|
(a)
|
|
|
|
|
3.0
|
|
|
Total before Tax
|
|
|
|
(0.6
|
)
|
|
Tax Benefit
|
|
|
|
$
|
2.4
|
|
|
Net of Tax
|
|
|
|
|
|
||
Amortization of Postretirement Benefit Plans:
|
|
|
|
|
||
Prior Service Credits
|
|
$
|
(0.1
|
)
|
(a)
|
|
Actuarial Gains
|
|
(0.9
|
)
|
(a)
|
|
|
|
|
(1.0
|
)
|
|
Total before Tax
|
|
|
|
0.2
|
|
|
Tax Expense
|
|
|
|
$
|
(0.8
|
)
|
|
Net of Tax
|
|
|
|
|
|
||
Total Reclassifications for the Period
|
|
$
|
1.8
|
|
|
|
(a)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see “
Note 6 — Pensions and Other Postretirement Benefits
").
|
Ø
|
Overview of Business
|
Ø
|
Overview of 2018 Results
|
Ø
|
Results of Operations
|
Ø
|
Financial Condition, Liquidity and Capital Resources
|
Ø
|
Critical Accounting Policies
|
Ø
|
New Accounting Standards
|
Ø
|
Business Outlook
|
•
|
Net Sales
for the
three months ended
June 30, 2018
,
increased
$414.6 million
or
37.9%
to
$1,509.3 million
from
$1,094.7 million
for the
three months ended
June 30, 2017
, due to the NACP Combination and 2017 Acquisitions discussed below, favorable currency exchange rates and higher selling prices.
|
•
|
Income from Operations
for the
three months ended
June 30, 2018
increased
$26.5 million
or
31.6%
to
$110.3 million
from
$83.8 million
for the
three months ended
June 30, 2017
due to the NACP Combination and 2017 Acquisitions, cost savings through continuous improvement and other programs, and the higher selling prices, partially offset by higher inflation.
|
•
|
On June 12, 2018, the Company acquired substantially all the assets of PFP, LLC and its related entity, PFP Dallas Converting, LLC (collectively, "PFP"), a converter focused on the production of paperboard-based air filter frames. The acquisition includes two facilities located in Lebanon, Tennessee and Lancaster, Texas.
|
•
|
On January 1, 2018, the Company combined its business with the North America Consumer Packaging business ("NACP") of International Paper Company's ("IP"), referred to as the NACP Combination. NACP was a leading producer of SBS paperboard and paper-based foodservice products. The NACP business included two SBS mills located in Augusta, Georgia and Texarkana, Texas, three converting facilities in the U.S. and one in the United Kingdom.
|
•
|
During 2017, the Company acquired Seydaco Packaging Corp. ("Seydaco"), Norgraft Packaging, S.A. ("Norgraft"), and Carton Craft Corporation ("Carton Craft"). These transactions are referred to collectively as the "2017 Acquisitions."
|
•
|
On May 23, 2018, the Company's board of directors declared a quarterly dividend of
$0.075
per share of common stock paid on July 5, 2018 to shareholders of record as of June 15, 2018.
|
•
|
On January 10, 2017, the Company's board of directors authorized an additional share repurchase program to allow the Company to purchase up to $
250 million
of the Company's issued and outstanding shares of common stock through open market purchases, privately negotiated transactions and Rule 10b5-1 plans (the "2017 share repurchase program"). The original
$250 million
share repurchase program was authorized on February 4, 2015 (the "2015 share repurchase program"). During the first
six months
of
2018
, the Company did not repurchase any shares of its common stock. The Company repurchased approximately
4.3 million
shares at an average price of
$13.09
during the
six months
ended
June 30, 2017
, including approximately
1.4 million
shares repurchased under the 2015 share repurchase program thereby completing that program. As of
June 30, 2018
, the Company has approximately
$210 million
available for additional repurchases under the 2017 share repurchase program.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
In millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net Sales
|
$
|
1,509.3
|
|
|
$
|
1,094.7
|
|
|
$
|
2,985.3
|
|
|
$
|
2,156.2
|
|
Income from Operations
|
110.3
|
|
|
83.8
|
|
|
184.3
|
|
|
155.4
|
|
||||
Nonoperating Pension and Postretirement Benefit Income
|
4.1
|
|
|
3.8
|
|
|
8.3
|
|
|
7.7
|
|
||||
Interest Expense, Net
|
(30.3
|
)
|
|
(22.5
|
)
|
|
(59.1
|
)
|
|
(43.8
|
)
|
||||
Loss on Modification or Extinguishment of Debt
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
—
|
|
||||
Income before Income Taxes and Equity Income of Unconsolidated Entity
|
84.1
|
|
|
65.1
|
|
|
131.6
|
|
|
119.3
|
|
||||
Income Tax Expense
|
(18.5
|
)
|
|
(23.6
|
)
|
|
(23.6
|
)
|
|
(41.2
|
)
|
||||
Income before Equity Income of Unconsolidated Entity
|
65.6
|
|
|
41.5
|
|
|
108.0
|
|
|
78.1
|
|
||||
Equity Income of Unconsolidated Entity
|
0.4
|
|
|
0.5
|
|
|
0.7
|
|
|
0.9
|
|
||||
Net Income
|
$
|
66.0
|
|
|
$
|
42.0
|
|
|
$
|
108.7
|
|
|
$
|
79.0
|
|
|
Three Months Ended June 30,
|
|||||||||||||
In millions
|
2018
|
|
2017
|
|
Increase
|
|
Percent
Change
|
|||||||
Consolidated
|
$
|
1,509.3
|
|
|
$
|
1,094.7
|
|
|
$
|
414.6
|
|
|
37.9
|
%
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
|
|
Variances
|
|
|
||||||||||||||||||
In millions
|
2017
|
|
Price
|
|
Volume/Mix
|
|
Exchange
|
|
Total
|
|
2018
|
||||||||||||
Consolidated
|
$
|
1,094.7
|
|
|
$
|
8.0
|
|
|
$
|
397.1
|
|
|
$
|
9.5
|
|
|
$
|
414.6
|
|
|
$
|
1,509.3
|
|
|
Three Months Ended June 30,
|
||||||||||||
In millions
|
2018
|
|
2017
|
|
Increase
|
|
Percent
Change
|
||||||
Consolidated
|
$
|
110.3
|
|
|
$
|
83.8
|
|
|
$
|
26.5
|
|
|
31.6%
|
|
Three Months Ended June 30,
|
|||||||||||||||||||||||||||||||
|
|
|
Variances
|
|
|
|||||||||||||||||||||||||||
In millions
|
2017
|
|
Price
|
|
Volume/Mix
|
|
|
Inflation
|
|
Exchange
|
|
Other
(a)
|
|
Total
|
|
2018
|
||||||||||||||||
Consolidated
|
$
|
83.8
|
|
|
$
|
8.0
|
|
|
$
|
13.1
|
|
|
|
$
|
(17.3
|
)
|
|
$
|
0.3
|
|
|
$
|
22.4
|
|
|
$
|
26.5
|
|
|
$
|
110.3
|
|
|
Six Months Ended June 30,
|
|||||||||||||
In millions
|
2018
|
|
2017
|
|
Increase
|
|
Percent
Change
|
|||||||
Consolidated
|
$
|
2,985.3
|
|
|
$
|
2,156.2
|
|
|
$
|
829.1
|
|
|
38.5
|
%
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
|
|
Variances
|
|
|
||||||||||||||||||
In millions
|
2017
|
|
Price
|
|
Volume/Mix
|
|
Exchange
|
|
Total
|
|
2018
|
||||||||||||
Consolidated
|
$
|
2,156.2
|
|
|
$
|
13.5
|
|
|
$
|
782.1
|
|
|
$
|
33.5
|
|
|
$
|
829.1
|
|
|
$
|
2,985.3
|
|
|
Six Months Ended June 30,
|
||||||||||||
In millions
|
2018
|
|
2017
|
|
Increase
|
|
Percent
Change
|
||||||
Consolidated
|
$
|
184.3
|
|
|
$
|
155.4
|
|
|
$
|
28.9
|
|
|
18.6%
|
|
Six Months Ended June 30,
|
|||||||||||||||||||||||||||||||
|
|
|
Variances
|
|
|
|||||||||||||||||||||||||||
In millions
|
2017
|
|
Price
|
|
Volume/Mix
|
|
|
Inflation
|
|
Exchange
|
|
Other
(a)
|
|
Total
|
|
2018
|
||||||||||||||||
Consolidated
|
$
|
155.4
|
|
|
$
|
13.5
|
|
|
$
|
13.4
|
|
|
|
$
|
(35.1
|
)
|
|
$
|
4.8
|
|
|
$
|
32.3
|
|
|
$
|
28.9
|
|
|
$
|
184.3
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
In millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
NET SALES:
|
|
|
|
|
|
|
|
||||||||
Paperboard Mills
|
$
|
266.8
|
|
|
$
|
96.9
|
|
|
$
|
544.8
|
|
|
$
|
195.0
|
|
Americas Paperboard Packaging
|
1,022.8
|
|
|
812.7
|
|
|
2,012.7
|
|
|
1,605.5
|
|
||||
Europe Paperboard Packaging
|
184.7
|
|
|
138.7
|
|
|
359.2
|
|
|
278.4
|
|
||||
Corporate/Other/Eliminations
(a)
|
35.0
|
|
|
46.4
|
|
|
68.6
|
|
|
77.3
|
|
||||
Total
|
$
|
1,509.3
|
|
|
$
|
1,094.7
|
|
|
$
|
2,985.3
|
|
|
$
|
2,156.2
|
|
|
|
|
|
|
|
|
|
||||||||
INCOME (LOSS) FROM OPERATIONS:
|
|
|
|
|
|
|
|
||||||||
Paperboard Mills
|
$
|
(8.4
|
)
|
|
$
|
(10.3
|
)
|
|
$
|
(15.1
|
)
|
|
$
|
(22.6
|
)
|
Americas Paperboard Packaging
|
114.3
|
|
|
90.5
|
|
|
226.3
|
|
|
179.9
|
|
||||
Europe Paperboard Packaging
|
12.8
|
|
|
9.0
|
|
|
27.5
|
|
|
16.0
|
|
||||
Corporate and Other
(b)
|
(8.4
|
)
|
|
(5.4
|
)
|
|
(54.4
|
)
|
|
(17.9
|
)
|
||||
Total
|
$
|
110.3
|
|
|
$
|
83.8
|
|
|
$
|
184.3
|
|
|
$
|
155.4
|
|
(a)
|
Includes Revenue from contracts with customers for the Australia and Pacific Rim operating segments, which is not material.
|
(b)
|
Includes expenses related to acquisitions, integration activities and shutdown costs.
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
In millions
|
2018
|
|
2017
|
||||
Net Cash Used in Operating Activities
|
$
|
(300.2
|
)
|
|
$
|
(103.9
|
)
|
Net Cash Provided by Investing Activities
|
$
|
299.7
|
|
|
$
|
122.2
|
|
Net Cash Used in Financing Activities
|
$
|
(15.2
|
)
|
|
$
|
(66.6
|
)
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
In millions
|
2018
|
|
2017
|
||||
Receivables Sold and Derecognized
|
$
|
1,669.6
|
|
|
$
|
683.2
|
|
Proceeds Collected on Behalf of Financial Institutions
|
1,632.0
|
|
|
644.3
|
|
||
Net Proceeds (Paid to) Received From Financial Institutions
|
(51.5
|
)
|
|
29.9
|
|
||
Deferred Purchase Price
(a)
|
202.4
|
|
|
38.3
|
|
•
|
Depreciation and amortization expense between $430 million and $450 million, excluding approximately $6 million of pension amortization.
|
•
|
Interest expense of $125 million to $135 million, including approximately $6 million to $7 million of non-cash interest expense associated with amortization of debt issuance costs.
|
•
|
Pension plan contributions of $5 million to $10 million.
|
Exhibit Number
|
Description
|
|
|
|
|
|
|
10.1
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
(Registrant)
|
|
|
|
|
/s/ STEPHEN R. SCHERGER
|
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
|
July 24, 2018
|
Stephen R. Scherger
|
||
|
|
|
/s/ DEBORAH R. FRANK
|
Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)
|
July 24, 2018
|
Deborah R. Frank
|
By:
|
/s/ Stephen R. Scherger
|
|
Stephen R. Scherger
|
By:
|
/s/ Carla J. Chaney
|
|
Carla J. Chaney
|
By:
|
/s/ Brad Ankerholz
|
|
Brad Ankerholz
|
By:
|
/s/ Debbie Frank
|
|
Debbie Frank
|
By:
|
/s/ Brian A. Wilson
|
|
Brian A. Wilson
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Graphic Packaging Holding Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Michael P. Doss
|
|
Michael P. Doss,
President and Chief Executive Officer
(Principal Executive Officer)
|
|
July 24, 2018
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Graphic Packaging Holding Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ STEPHEN R. SCHERGER
|
|
Stephen R. Scherger Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
July 24, 2018
|
|
/s/ Michael P. Doss
|
|
Name: Michael P. Doss,
Title: President and Chief Executive Officer
|
|
July 24, 2018
|
|
/s/ STEPHEN R. SCHERGER
|
|
Name: Stephen R. Scherger
Title: Executive Vice President and Chief Financial Officer
|
|
July 24, 2018
|