Delaware | 26-0405422 | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) |
(I.R.S. employer identification no.)
|
||||||||||||||||
1500 Riveredge Parkway, Suite 100 | |||||||||||||||||
Atlanta | , | Georgia | 30328 | ||||||||||||||
(Address of principal executive offices)
|
(Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Common Stock, $0.01 par value per share | GPK | New York Stock Exchange |
Large accelerated filer
|
☑ |
Accelerated filer
|
☐ |
Smaller reporting company
|
☐ | ||||||||||||||||||||||||
Non-accelerated filer
|
☐ | (Do not check if a smaller reporting company) |
Emerging growth company
|
☐ |
MINE SAFETY DISCLOSURES | |||||||||||
EXECUTIVE OFFICERS OF THE REGISTRANT | |||||||||||
Amount repurchased in millions | Amount Repurchased | Number of Shares Repurchased | Average Price | ||||||||||||||
2019 | $ | 127.9 | 10,191,257 |
(a)
|
$ | 12.55 | |||||||||||
2018 | $ | 120.0 | 10,566,144 | $ | 11.35 | ||||||||||||
2017 | $ | 58.4 | 4,462,263 |
(b)
|
$ | 13.08 | |||||||||||
Location | Product | # of Machines | 2019 Net Tons Produced | ||||||||
West Monroe, LA
|
CUK | 2 | 910,759 | ||||||||
Macon, GA
|
CUK | 2 | 708,496 | ||||||||
Kalamazoo, MI
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CRB | 2 | 493,130 | ||||||||
Battle Creek, MI
|
CRB | 2 | 210,673 | ||||||||
Middletown, OH
|
CRB | 1 | 169,475 | ||||||||
East Angus, Québec
|
CRB | 1 | 97,921 | ||||||||
White Pigeon, MI (a)
|
CRB | 1 | 28,025 | ||||||||
Texarkana, TX
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SBS | 2 | 607,330 | ||||||||
Augusta, GA
|
SBS | 2 | 583,147 | ||||||||
West Monroe, LA
|
Corrugated Medium | 1 | 121,929 |
Location | Related Products or Use of Facility | ||||
Mills:
|
|||||
Augusta, GA
|
SBS | ||||
Battle Creek, MI
|
CRB | ||||
East Angus, Québec
|
CRB | ||||
Kalamazoo, MI
|
CRB | ||||
Macon, GA
|
CUK | ||||
Middletown, OH
|
CRB | ||||
Texarkana, TX
|
SBS | ||||
West Monroe, LA
|
CUK; Corrugated Medium; Research and Development | ||||
White Pigeon, MI
|
CRB | ||||
Other:
|
|||||
Atlanta, GA(a)
|
Headquarters, Research and Development, Packaging Machinery and Design | ||||
Concord, NH(a)
|
Research and Development, Design Center | ||||
Crosby, MN
|
Packaging Machinery Engineering, Design and Manufacturing | ||||
Louisville, CO(a)
|
Research and Development | ||||
Menomonee Falls, WI
|
Foodservice Rebuild Center | ||||
North American Converting Plants:
|
International Converting Plants:
|
|||||||
Atlanta, GA(a)
|
Monterrey, Mexico(a)
|
Auckland, New Zealand(a)
|
||||||
Auburn, IN
|
New Albany, IN(b)
|
Bremen, Germany(a)
|
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Carol Stream, IL
|
Newton, IA
|
Bristol, United Kingdom
|
||||||
Centralia, IL
|
North Portland, OR
|
Coalville, United Kingdom(a)
|
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Charlotte, NC
|
Oroville, CA(a)
|
Gateshead, United Kingdom(a)
|
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Clarksville, TN
|
Pacific, MO
|
Hoogerheide, Netherlands
|
||||||
Cobourg, Ontario(a)
|
Perry, GA
|
Newcastle Upon Tyne, United Kingdom(a)
|
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Elgin, IL
|
Pittston, PA
|
Igualada, Spain
|
||||||
Elk Grove, IL(a)(b)
|
Prosperity, SC
|
Jundiai, Sao Paulo, Brazil
|
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Fort Smith, AR(b)
|
Queretaro, Mexico(a)
|
Leeds, United Kingdom
|
||||||
Gordonsville, TN(a)
|
Shelbyville, IL
|
Masnieres, France(a)
|
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Gresham, OR(a)
|
Solon, OH
|
Melbourne, Australia(a)
|
||||||
Hamel, MN
|
Staunton, VA
|
Miliaño, Spain
|
||||||
Irvine, CA
|
St.-Hyacinthe, Québec(a)
|
Portlaoise, Ireland(a)
|
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Kalamazoo, MI
|
Tijuana, Mexico(a)
|
Requejada, Spain
|
||||||
Kendallville, IN
|
Tuscaloosa, AL
|
Sneek, Netherlands
|
||||||
Kenton, OH
|
Vancouver, WA(a)
|
Sydney, Australia(a)
|
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Lancaster, TX
|
Valley Forge, PA
|
Winsford, United Kingdom (a)
|
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Lawrenceburg, TN
|
Visalia, CA
|
|||||||
Lebanon, TN (a)
|
Wayne, NJ
|
|||||||
Lumberton, NC
|
Wausau, WI
|
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Marion, OH
|
West Monroe, LA(b)
|
|||||||
Mississauga, Ontario(a)(b)
|
Xenia, OH(a)
|
|||||||
Mitchell, SD
|
Winnipeg, Manitoba
|
|||||||
Monroe, LA (a)
|
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(a)
|
Leased facility. | ||||
(b)
|
Multiple facilities in this location. |
Amount repurchased in millions | Amount Repurchased | Number of Shares Repurchased | Average Price | ||||||||||||||
2019 | $ | 127.9 | 10,191,257 |
(a)
|
$ | 12.55 | |||||||||||
2018 | $ | 120.0 | 10,566,144 |
|
$ | 11.35 | |||||||||||
2017 | $ | 58.4 | 4,462,263 |
(b)
|
$ | 13.08 | |||||||||||
12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | 12/31/2019 | ||||||||||||||||||||||||||||||
Graphic Packaging Holding Company
|
$ | 100.00 | $ | 95.57 | $ | 94.58 | $ | 119.71 | $ | 84.28 | $ | 134.71 | |||||||||||||||||||||||
S&P 500 Stock Index
|
100.00 | 101.38 | 113.51 | 138.29 | 132.23 | 173.86 | |||||||||||||||||||||||||||||
Dow Jones U.S. Container & Packaging Index
|
100.00 | 95.69 | 113.93 | 135.60 | 110.58 | 142.19 |
Year Ended December 31, | |||||||||||||||||||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||
Statement of Operations Data:
|
|||||||||||||||||||||||||||||
Net Sales | $ | 6,160.1 | $ | 6,029.4 | $ | 4,405.6 | $ | 4,301.0 | $ | 4,163.4 | |||||||||||||||||||
Income from Operations | 534.1 | 458.2 | 327.9 | 407.4 | 430.1 | ||||||||||||||||||||||||
Net Income | 278.1 | 294.0 | 300.2 | 228.0 | 230.1 | ||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests
|
(71.3) | (72.9) | — | — | — | ||||||||||||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company | 206.8 | 221.1 | 300.2 | 228.0 | 230.1 | ||||||||||||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company Per Share Basis:
|
|||||||||||||||||||||||||||||
Basic
|
$ | 0.70 | $ | 0.71 | $ | 0.97 | $ | 0.71 | $ | 0.70 | |||||||||||||||||||
Diluted
|
$ | 0.70 | $ | 0.71 | $ | 0.96 | $ | 0.71 | $ | 0.70 | |||||||||||||||||||
Balance Sheet Data:
|
|||||||||||||||||||||||||||||
(as of period end)
|
|||||||||||||||||||||||||||||
Cash and Cash Equivalents
|
$ | 152.9 | $ | 70.5 | $ | 67.4 | $ | 59.1 | $ | 54.9 | |||||||||||||||||||
Total Assets
|
7,289.9 | 7,059.2 | 4,863.0 | 4,603.4 | 4,256.1 | ||||||||||||||||||||||||
Total Debt
|
2,860.3 | 2,957.1 | 2,274.5 | 2,151.9 | 1,875.5 | ||||||||||||||||||||||||
Total Equity
|
2,058.0 | 2,018.5 | 1,291.9 | 1,056.5 | 1,101.7 | ||||||||||||||||||||||||
Additional Data:
|
|||||||||||||||||||||||||||||
Depreciation and Amortization
|
$ | 447.2 | $ | 430.6 | $ | 330.3 | $ | 299.3 | $ | 280.5 | |||||||||||||||||||
Capital Spending, including Packaging Machinery
|
352.9 | 395.2 | 260.1 | 294.6 | 244.1 | ||||||||||||||||||||||||
Dividends Declared per Share
|
0.30 | 0.30 | 0.30 | 0.225 | 0.20 |
Year Ended December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
Net Sales | $ | 6,160.1 | $ | 6,029.4 | $ | 4,405.6 | |||||||||||
Income from Operations | $ | 534.1 | $ | 458.2 | $ | 327.9 | |||||||||||
Nonoperating Pension and Postretirement Benefit (Expense) Income | (39.5) | 14.9 | 14.8 | ||||||||||||||
Interest Expense, Net | (140.6) | (123.7) | (89.7) | ||||||||||||||
Loss on Modification or Extinguishment of Debt | — | (1.9) | — | ||||||||||||||
Income before Income Taxes and Equity Income of Unconsolidated Entity | $ | 354.0 | $ | 347.5 | $ | 253.0 | |||||||||||
Income Tax (Expense) Benefit | (76.3) | (54.7) | 45.5 | ||||||||||||||
Income before Equity Income of Unconsolidated Entity | $ | 277.7 | $ | 292.8 | $ | 298.5 | |||||||||||
Equity Income of Unconsolidated Entity | 0.4 | 1.2 | 1.7 | ||||||||||||||
Net Income | $ | 278.1 | $ | 294.0 | $ | 300.2 | |||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||
Variances | ||||||||||||||||||||||||||||||||||||||||||||
In millions |
2018 | Price | Volume/Mix | Foreign Exchange | 2019 | Increase | Percent Change | |||||||||||||||||||||||||||||||||||||
Consolidated
|
$ | 6,029.4 | $ | 131.2 | $ | 50.2 | $ | (50.7) | $ | 6,160.1 | $ | 130.7 | 2.2 | % |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Variances | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | 2018 | Price |
Volume/Mix
|
Inflation | Foreign Exchange |
Other (a)
|
2019 | Increase | Percent Change | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated
|
$ | 458.2 | $ | 131.2 | $ | (31.2) | $ | (79.1) | $ | (6.2) | $ | 61.2 | $ | 534.1 | $ | 75.9 | 16.6 | % |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
Variances | |||||||||||||||||||||||||||||||||||||||||
In millions |
2017 | Price | Volume/Mix | Foreign Exchange | 2018 | Increase | Percent Change | ||||||||||||||||||||||||||||||||||
Consolidated
|
$ | 4,405.6 | $ | 52.9 | $ | 1,551.8 | $ | 19.1 | $ | 6,029.4 | $ | 1,623.8 | 36.9 | % |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Variances | |||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | 2017 | Price |
Volume/Mix(a)
|
Inflation | Foreign Exchange |
Other(b)
|
2018 | Increase | Percent Change | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated
|
$ | 327.9 | $ | 52.9 | $ | 38.2 | $ | (73.6) | $ | 1.5 | $ | 111.3 | $ | 458.2 | $ | 130.3 | 39.7 | % |
Year Ended December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
NET SALES:
|
|||||||||||||||||
Paperboard Mills | $ | 1,094.8 | $ | 1,078.1 | $ | 399.7 | |||||||||||
Americas Paperboard Packaging | 4,233.7 | 4,098.3 | 3,245.1 | ||||||||||||||
Europe Paperboard Packaging | 689.3 | 695.9 | 593.5 | ||||||||||||||
Corporate/Other/Eliminations(a)
|
142.3 | 157.1 | 167.3 | ||||||||||||||
Total | $ | 6,160.1 | $ | 6,029.4 | $ | 4,405.6 | |||||||||||
INCOME (LOSS) FROM OPERATIONS:
|
|||||||||||||||||
Paperboard Mills(b)
|
$ | 33.1 | $ | 30.6 | $ | (35.0) | |||||||||||
Americas Paperboard Packaging | 477.7 | 420.1 | 358.2 | ||||||||||||||
Europe Paperboard Packaging | 60.3 | 46.1 | 37.3 | ||||||||||||||
Corporate and Other(c)
|
(37.0) | (38.6) | (32.6) | ||||||||||||||
Total
|
$ | 534.1 | $ | 458.2 | $ | 327.9 |
Years Ended December 31, | |||||||||||
In millions | 2019 | 2018 | |||||||||
Net Cash Provided by (Used in) Operating Activities
|
$ | 665.8 | $ | (373.8) | |||||||
Net Cash (Used in) Provided by Investing Activities
|
$ | (224.3) | $ | 689.1 | |||||||
Net Cash Used In Financing Activities | $ | (360.8) | $ | (310.7) |
Year Ended December 31, | |||||||||||
In millions | 2019 | 2018 | |||||||||
Receivables Sold and Derecognized
|
$ | 2,654.2 | $ | 3,314.8 | |||||||
Proceeds Collected on Behalf of Financial Institutions | 2,254.9 | 3,153.4 | |||||||||
Net Proceeds Received From (Paid to) Financial Institutions | 66.5 | 13.4 | |||||||||
Deferred Purchase Price at December 31(a)
|
0.7 | 66.9 | |||||||||
Pledged Receivables at December 31 | 177.5 | 43.0 |
Payments Due by Period | |||||||||||||||||||||||||||||
In millions | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | ||||||||||||||||||||||||
Debt Obligations
|
$ | 2,738.6 | $ | 45.8 | $ | 617.6 | $ | 1,771.6 | $ | 303.6 | |||||||||||||||||||
Operating Leases
|
225.6 | 60.8 | 87.0 | 47.1 | 30.7 | ||||||||||||||||||||||||
Finance Leases
|
220.3 | 12.5 | 24.8 | 24.8 | 158.2 | ||||||||||||||||||||||||
Interest Payable
|
513.1 | 137.0 | 221.4 | 63.4 | 91.3 | ||||||||||||||||||||||||
Purchase Obligations(a)
|
221.2 | 57.8 | 49.5 | 36.8 | 77.1 | ||||||||||||||||||||||||
Total Contractual Obligations(b)
|
$ | 3,918.8 | $ | 313.9 | $ | 1,000.3 | $ | 1,943.7 | $ | 660.9 |
Expected Maturity Date | |||||||||||||||||||||||||||||||||||||||||||||||
In millions |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||||||||||||||||
Total Debt
|
|||||||||||||||||||||||||||||||||||||||||||||||
Fixed Rate
|
$ | — | $ | 425.5 | $ | 0.5 | $ | 250.4 | $ | 300.4 | $ | 303.6 | $ | 1,280.4 | $ | 1,340.1 | |||||||||||||||||||||||||||||||
Average Interest Rate
|
— | % | 4.75 | % | 1.82 | % | 4.87 | % | 4.12 | % | 4.71 | % | |||||||||||||||||||||||||||||||||||
Variable Rate
|
$ | 36.5 | $ | 63.9 | $ | 127.7 | $ | 1,220.8 | $ | — | $ | — | $ | 1,448.9 | $ | 1,448.5 | |||||||||||||||||||||||||||||||
LIBOR + Spread | LIBOR + Spread | LIBOR + Spread | LIBOR + Spread | — | — | — | — |
Expected Maturity Date | ||||||||||||||||||||||||||||||||||||||||||||
In millions |
2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||
Notional
|
$ | 300.0 | $ | — | $ | 200.0 | $ | — | $ | — | $ | — | $ | 500.0 | ||||||||||||||||||||||||||||||
Average Pay Rate
|
2.31 | % | — | % | 2.87 | % | — | % | — | % | — | % | ||||||||||||||||||||||||||||||||
Average Receive Rate
|
LIBOR | — | LIBOR | — | — | — | — |
|
December 31, 2019 | ||||||||||
In millions |
Contract Amount | Fair Value | |||||||||
FORWARD EXCHANGE AGREEMENTS:
|
|||||||||||
Receive $US/Pay Yen
|
$ | 17.5 | $ | — | |||||||
Weighted average contractual exchange rate
|
107.86 | ||||||||||
Receive $US/Pay Euro
|
$ | 42.9 | $ | (0.8) | |||||||
Weighted average contractual exchange rate
|
1.11 | ||||||||||
Receive $US/Pay GBP
|
$ | 27.2 | $ | (0.7) | |||||||
Weighted average contractual exchange rate
|
1.30 |
Page | |||||
GRAPHIC PACKAGING HOLDING COMPANY
|
|||||
Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2019
|
|||||
Consolidated Balance Sheets as of December 31, 2019 and 2018
|
|||||
Year Ended December 31, | |||||||||||||||||
In millions, except per share amounts | 2019 | 2018 | 2017 | ||||||||||||||
Net Sales | $ | 6,160.1 | $ | 6,029.4 | $ | 4,405.6 | |||||||||||
Cost of Sales | 5,067.5 | 5,077.0 | 3,696.1 | ||||||||||||||
Selling, General and Administrative | 511.8 | 472.1 | 347.5 | ||||||||||||||
Other Expense, Net | 8.8 | 7.2 | 3.0 | ||||||||||||||
Business Combinations, Shutdown and Other Special Charges and Gain on Sale of Assets, Net
|
37.9 | 14.9 | 31.1 | ||||||||||||||
Income from Operations | 534.1 | 458.2 | 327.9 | ||||||||||||||
Nonoperating Pension and Postretirement Benefit (Expense) Income
|
(39.5) | 14.9 | 14.8 | ||||||||||||||
Interest Expense, Net | (140.6) | (123.7) | (89.7) | ||||||||||||||
Loss on Modification or Extinguishment of Debt | — | (1.9) | — | ||||||||||||||
Income before Income Taxes and Equity Income of Unconsolidated Entity | 354.0 | 347.5 | 253.0 | ||||||||||||||
Income Tax (Expense) Benefit
|
(76.3) | (54.7) | 45.5 | ||||||||||||||
Income before Equity Income of Unconsolidated Entity | 277.7 | 292.8 | 298.5 | ||||||||||||||
Equity Income of Unconsolidated Entity | 0.4 | 1.2 | 1.7 | ||||||||||||||
Net Income | $ | 278.1 | $ | 294.0 | $ | 300.2 | |||||||||||
Net Income Attributable to Noncontrolling Interests | (71.3) | (72.9) | — | ||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company | $ | 206.8 | $ | 221.1 | $ | 300.2 | |||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Basic
|
$ | 0.70 | $ | 0.71 | $ | 0.97 | |||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Diluted
|
$ | 0.70 | $ | 0.71 | $ | 0.96 |
Year Ended December 31, | ||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||
In millions | Graphic Packaging Holding Company | Noncontrolling Interest | Redeemable Noncontrolling Interest | Total | ||||||||||||||||||||||
Net Income | $ | 206.8 | $ | 55.0 | $ | 16.3 | $ | 278.1 | ||||||||||||||||||
Other Comprehensive (Loss) Income, Net of Tax | ||||||||||||||||||||||||||
Derivative Instruments | (5.3) | (1.5) | (0.4) | (7.2) | ||||||||||||||||||||||
Pension and Postretirement Benefit Plans | 7.6 | 2.3 | 0.7 | 10.6 | ||||||||||||||||||||||
Currency Translation Adjustment | 9.8 | 2.1 | 0.5 | 12.4 | ||||||||||||||||||||||
Total Other Comprehensive Income, Net of Tax | 12.1 | 2.9 | 0.8 | 15.8 | ||||||||||||||||||||||
Total Comprehensive Income | $ | 218.9 | $ | 57.9 | $ | 17.1 | $ | 293.9 | ||||||||||||||||||
2018 | ||||||||||||||||||||||||||
Net Income | $ | 221.1 | $ | 56.3 | $ | 16.6 | $ | 294.0 | ||||||||||||||||||
Other Comprehensive Loss, Net of Tax: | ||||||||||||||||||||||||||
Derivative Instruments | (1.0) | (0.2) | (0.1) | (1.3) | ||||||||||||||||||||||
Pension and Postretirement Benefit Plans | (19.4) | (4.7) | (1.4) | (25.5) | ||||||||||||||||||||||
Currency Translation Adjustment | (18.7) | (4.5) | (1.3) | (24.5) | ||||||||||||||||||||||
Total Other Comprehensive Loss, Net of Tax | (39.1) | (9.4) | (2.8) | (51.3) | ||||||||||||||||||||||
Total Comprehensive Income | $ | 182.0 | $ | 46.9 | $ | 13.8 | $ | 242.7 | ||||||||||||||||||
2017 | ||||||||||||||||||||||||||
Net Income | $ | 300.2 | $ | — | $ | — | $ | 300.2 | ||||||||||||||||||
Other Comprehensive (Loss) Income, Net of Tax: | ||||||||||||||||||||||||||
Derivative Instruments | (4.9) | — | — | (4.9) | ||||||||||||||||||||||
Pension and Postretirement Benefit Plans | 8.8 | — | — | 8.8 | ||||||||||||||||||||||
Currency Translation Adjustment | 44.9 | — | — | 44.9 | ||||||||||||||||||||||
Total Other Comprehensive Income, Net of Tax | 48.8 | — | — | 48.8 | ||||||||||||||||||||||
Total Comprehensive Income | $ | 349.0 | $ | — | $ | — | $ | 349.0 |
December 31, | |||||||||||
In millions, except share and per share amounts | 2019 | 2018 | |||||||||
ASSETS
|
|||||||||||
Current Assets:
|
|||||||||||
Cash and Cash Equivalents
|
$ | 152.9 | $ | 70.5 | |||||||
Receivables, Net
|
504.5 | 572.9 | |||||||||
Inventories, Net
|
1,095.9 | 1,014.4 | |||||||||
Other Current Assets
|
52.3 | 106.0 | |||||||||
Total Current Assets
|
1,805.6 | 1,763.8 | |||||||||
Property, Plant and Equipment, Net
|
3,253.8 | 3,239.7 | |||||||||
Goodwill
|
1,477.9 | 1,460.6 | |||||||||
Intangible Assets, Net
|
477.3 | 523.8 | |||||||||
Other Assets
|
275.3 | 71.3 | |||||||||
Total Assets
|
$ | 7,289.9 | $ | 7,059.2 | |||||||
LIABILITIES
|
|||||||||||
Current Liabilities:
|
|||||||||||
Short-Term Debt and Current Portion of Long-Term Debt
|
$ | 50.4 | $ | 52.0 | |||||||
Accounts Payable
|
716.1 | 711.6 | |||||||||
Compensation and Employee Benefits
|
168.4 | 154.4 | |||||||||
Interest Payable
|
24.7 | 13.6 | |||||||||
Other Accrued Liabilities
|
239.1 | 240.7 | |||||||||
Total Current Liabilities
|
1,198.7 | 1,172.3 | |||||||||
Long-Term Debt
|
2,809.9 | 2,905.1 | |||||||||
Deferred Income Tax Liabilities
|
511.8 | 462.2 | |||||||||
Accrued Pension and Postretirement Benefits
|
140.4 | 107.5 | |||||||||
Other Noncurrent Liabilities
|
266.8 | 117.8 | |||||||||
Commitments (Note 13)
|
|||||||||||
Redeemable Noncontrolling Interest (Note 15)
|
304.3 | 275.8 | |||||||||
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; 290,246,907 and 299,891,585 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively
|
2.9 | 3.0 | |||||||||
Capital in Excess of Par Value
|
1,876.7 | 1,944.4 | |||||||||
Retained Earnings
|
56.4 | 10.0 | |||||||||
Accumulated Other Comprehensive Loss
|
(365.8) | (377.9) | |||||||||
Total Graphic Packaging Holding Company Shareholders' Equity
|
1,570.2 | 1,579.5 | |||||||||
Noncontrolling Interest
|
487.8 | 439.0 | |||||||||
Total Equity
|
2,058.0 | 2,018.5 | |||||||||
Total Liabilities and Shareholders' Equity
|
$ | 7,289.9 | $ | 7,059.2 |
Common Stock | Capital in Excess of Par Value | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interests | Total Equity | |||||||||||||||||||||
In millions, except share amounts | Shares | Amount | ||||||||||||||||||||||||
Balances at December 31, 2016
|
313,145,785 | $ | 3.1 | $ | 1,709.0 | $ | (268.0) | $ | (387.6) | $ | — | $ | 1,056.5 | |||||||||||||
Net Income
|
— | — | — | 300.2 | — | — | 300.2 | |||||||||||||||||||
Other Comprehensive (Loss) Income, Net of Tax:
|
||||||||||||||||||||||||||
Derivative Instruments
|
— | — | — | — | (4.9) | — | (4.9) | |||||||||||||||||||
Pension and Postretirement Benefit Plans
|
— | — | — | — | 8.8 | — | 8.8 | |||||||||||||||||||
Currency Translation Adjustment
|
— | — | — | — | 44.9 | — | 44.9 | |||||||||||||||||||
Repurchase of Common Stock
|
(4,462,263) | — | (24.2) | (34.2) | — | — | (58.4) | |||||||||||||||||||
Dividends Declared
|
— | — | — | (93.1) | — | — | (93.1) | |||||||||||||||||||
Pre-2017 Excess Tax Benefit related to Share-Based Payments
|
— | — | — | 39.1 | — | — | 39.1 | |||||||||||||||||||
Recognition of Stock-Based Compensation
|
— | — | (1.2) | — | — | — | (1.2) | |||||||||||||||||||
Issuance of Shares for Stock-Based Awards
|
1,032,102 | — | — | — | — | — | — | |||||||||||||||||||
Balances at December 31, 2017
|
309,715,624 | $ | 3.1 | $ | 1,683.6 | $ | (56.0) | $ | (338.8) | $ | — | $ | 1,291.9 | |||||||||||||
NACP Combination
|
— | — | 308.4 | — | — | 424.0 | 732.4 | |||||||||||||||||||
Net Income
|
— | — | — | 221.1 | — | 56.3 | 277.4 | |||||||||||||||||||
Reclassification to Redeemable Noncontrolling Interest for Share Repurchases
|
— | — | — | — | — | (12.5) | (12.5) | |||||||||||||||||||
Distribution of Membership Interest
|
— | — | — | — | — | (19.4) | (19.4) | |||||||||||||||||||
Other Comprehensive Loss, Net of Tax:
|
||||||||||||||||||||||||||
Derivative Instruments
|
— | — | — | — | (1.0) | (0.2) | (1.2) | |||||||||||||||||||
Pension and Postretirement Benefit Plans
|
— | — | — | — | (19.4) | (4.7) | (24.1) | |||||||||||||||||||
Currency Translation Adjustment
|
— | — | — | — | (18.7) | (4.5) | (23.2) | |||||||||||||||||||
Repurchase of Common Stock(a)
|
(10,566,144) | (0.1) | (57.1) | (62.8) | — | — | (120.0) | |||||||||||||||||||
Dividends Declared
|
— | — | — | (92.3) | — | — | (92.3) | |||||||||||||||||||
Recognition of Stock-Based Compensation
|
— | — | 9.5 | — | — | — | 9.5 | |||||||||||||||||||
Issuance of Shares for Stock-Based Awards
|
658,299 | — | — | — | — | — | — | |||||||||||||||||||
Balances at December 31, 2018
|
299,807,779 | $ | 3.0 | $ | 1,944.4 | $ | 10.0 | $ | (377.9) | $ | 439.0 | $ | 2,018.5 | |||||||||||||
Net Income
|
— | — | — | 206.8 | — | 55.0 | 261.8 | |||||||||||||||||||
Reclassification to Redeemable Noncontrolling Interest for Share Repurchases
|
— | — | — | — | — | 12.5 | 12.5 | |||||||||||||||||||
Redeemable Noncontrolling Interest Redemption Value Mark-up
|
— | — | (30.2) | — | — | — | (30.2) | |||||||||||||||||||
Distribution of Membership Interest
|
— | — | — | — | — | (21.6) | (21.6) | |||||||||||||||||||
Other Comprehensive (Loss) Income, Net of Tax:
|
||||||||||||||||||||||||||
Derivative Instruments
|
— | — | — | — | (5.3) | (1.5) | (6.8) | |||||||||||||||||||
Pension and Postretirement Benefit Plans
|
— | — | — | — | 7.6 | 2.3 | 9.9 | |||||||||||||||||||
Currency Translation Adjustment
|
— | — | — | — | 9.8 | 2.1 | 11.9 | |||||||||||||||||||
Repurchase of Common Stock
|
(10,191,257) | (0.1) | (55.1) | (72.7) | — | — | (127.9) | |||||||||||||||||||
Dividends Declared
|
— | — | — | (87.7) | — | — | (87.7) | |||||||||||||||||||
Recognition of Stock-Based Compensation
|
— | — | 17.6 | — | — | — | 17.6 | |||||||||||||||||||
Issuance of Shares for Stock-Based Awards
|
630,385 | — | — | — | — | — | — | |||||||||||||||||||
Balances at December 31, 2019
|
290,246,907 | $ | 2.9 | $ | 1,876.7 | $ | 56.4 | $ | (365.8) | $ | 487.8 | $ | 2,058.0 |
Year Ended December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|||||||||||||||||
Net Income
|
$ | 278.1 | $ | 294.0 | $ | 300.2 | |||||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities:
|
|||||||||||||||||
Depreciation and Amortization | 447.2 | 430.6 | 330.3 | ||||||||||||||
Amortization of Deferred Debt Issuance Costs | 4.7 | 4.4 | 5.1 | ||||||||||||||
Deferred Income Taxes | 52.7 | 26.0 | (54.0) | ||||||||||||||
Amount of Postretirement Expense Greater (Less) Than Funding | 41.5 | (4.7) | (127.1) | ||||||||||||||
Gain on the Sale of Assets, net | — | (38.6) | (3.7) | ||||||||||||||
Other, Net | 15.1 | 35.3 | 2.0 | ||||||||||||||
Changes in Operating Assets and Liabilities, Net of Acquisitions (See Note 3)
|
(173.5) | (1,120.8) | (645.3) | ||||||||||||||
Net Cash Provided by (Used in) Operating Activities
|
665.8 | (373.8) | (192.5) | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|||||||||||||||||
Capital Spending
|
(330.9) | (378.8) | (240.9) | ||||||||||||||
Packaging Machinery Spending
|
(22.0) | (16.4) | (19.2) | ||||||||||||||
Acquisition of Businesses, Net of Cash Acquired
|
(54.5) | (89.4) | (189.4) | ||||||||||||||
Proceeds Received from Sale of Assets, Net of Selling Costs
|
— | 49.4 | 7.9 | ||||||||||||||
Beneficial Interest on Sold Receivables
|
343.6 | 1,476.7 | 806.1 | ||||||||||||||
Beneficial Interest Obtained in Exchange for Proceeds
|
(155.9) | (345.5) | (97.4) | ||||||||||||||
Other, Net
|
(4.6) | (6.9) | 1.0 | ||||||||||||||
Net Cash (Used in) Provided by Investing Activities
|
(224.3) | 689.1 | 268.1 | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|||||||||||||||||
Repurchase of Common Stock
|
(128.8) | (119.1) | (62.1) | ||||||||||||||
Payments on Debt
|
(36.5) | (152.4) | (25.0) | ||||||||||||||
Proceeds from Issuance of Debt
|
300.0 | — | — | ||||||||||||||
Borrowings under Revolving Credit Facilities
|
2,497.5 | 1,876.9 | 1,202.9 | ||||||||||||||
Payments on Revolving Credit Facilities
|
(2,865.1) | (1,787.5) | (1,090.8) | ||||||||||||||
Debt Issuance Costs
|
(5.0) | (7.9) | — | ||||||||||||||
Repurchase of Common Stock related to Share-Based Payments
|
(4.1) | (4.3) | (10.2) | ||||||||||||||
Dividends and Distributions Paid to GPIP Partner
|
(112.7) | (111.0) | (93.4) | ||||||||||||||
Other, Net
|
(6.1) | (5.4) | 8.8 | ||||||||||||||
Net Cash Used In Financing Activities
|
(360.8) | (310.7) | (69.8) | ||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
1.7 | (1.5) | 2.5 | ||||||||||||||
Net Increase in Cash and Cash Equivalents
|
82.4 | 3.1 | 8.3 | ||||||||||||||
Cash and Cash Equivalents at Beginning of Year
|
70.5 | 67.4 | 59.1 | ||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR
|
$ | 152.9 | $ | 70.5 | $ | 67.4 | |||||||||||
Non-cash Investing Activities:
|
|||||||||||||||||
Beneficial Interest (Sold) Obtained in Exchange for Trade Receivables | $ | (68.8) | $ | 1,025.7 | $ | 734.7 | |||||||||||
Non-cash Investment in NACP Combination | — | 1,111.2 | — | ||||||||||||||
Non-cash Investing Activities
|
$ | (68.8) | $ | 2,136.9 | $ | 734.7 | |||||||||||
Non-cash Financing Activities:
|
|||||||||||||||||
Non-cash Financing of NACP Combination | $ | — | $ | 660.0 | $ | — | |||||||||||
Non-Cash Financing Activities
|
$ | — | $ | 660.0 | $ | — |
Year Ended December 31, | |||||||||||
In millions | 2019 | 2018 | |||||||||
Receivables Sold and Derecognized | $ | 2,654.2 | $ | 3,314.8 | |||||||
Proceeds Collected on Behalf of Financial Institutions | 2,254.9 | 3,153.4 | |||||||||
Net Proceeds Received From (Paid to) Financial Institutions | 66.5 | 13.4 | |||||||||
Deferred Purchase Price at December 31(a)
|
0.7 | 66.9 | |||||||||
Pledged Receivables at December 31 | 177.5 | 43.0 |
Buildings
|
40 years | ||||
Land improvements
|
15 years | ||||
Machinery and equipment
|
3 to 40 years
|
||||
Furniture and fixtures
|
10 years | ||||
Automobiles, trucks and tractors
|
3 to 5 years
|
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||
In millions |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||
Amortizable Intangible Assets:
|
|||||||||||||||||||||||||||||||||||
Customer Relationships
|
$ | 946.5 | $ | (497.6) | $ | 448.9 | $ | 937.3 | $ | (442.7) | $ | 494.6 | |||||||||||||||||||||||
Patents, Trademarks, Licenses, and Leases
|
138.8 | (110.4) | 28.4 | 133.7 | (104.5) | 29.2 | |||||||||||||||||||||||||||||
Total
|
$ | 1,085.3 | $ | (608.0) | $ | 477.3 | $ | 1,071.0 | $ | (547.2) | $ | 523.8 |
In millions | Paperboard Mills | Americas Paperboard Packaging | Europe Paperboard Packaging |
Corporate/Other(a)
|
Total | |||||||||||||||
Balance at December 31, 2017
|
$ | 408.5 | $ | 839.0 | $ | 59.5 | $ | 16.0 | $ | 1,323.0 | ||||||||||
Acquisition of Businesses
|
98.3 | 43.1 | (0.1) | — | 141.3 | |||||||||||||||
Foreign Currency Effects
|
— | 0.1 | (2.2) | (1.6) | (3.7) | |||||||||||||||
Balance at December 31, 2018
|
$ | 506.8 | $ | 882.2 | $ | 57.2 | $ | 14.4 | $ | 1,460.6 | ||||||||||
Acquisition of Businesses
|
— | 12.9 | — | — | 12.9 | |||||||||||||||
Foreign Currency Effects
|
— | 1.8 | 2.6 | — | 4.4 | |||||||||||||||
Balance at December 31, 2019
|
$ | 506.8 | $ | 896.9 | $ | 59.8 | $ | 14.4 | $ | 1,477.9 |
In millions | 2019 | 2018 | 2017 | ||||||||||||||
Charges Associated with Business Combinations | $ | 4.1 | $ | 46.8 | $ | 16.2 | |||||||||||
Shutdown and Other Special Charges | 23.6 | 6.7 | 18.6 | ||||||||||||||
Exit Activities | 10.2 | — | — | ||||||||||||||
Gain on Sale of Assets | — | (38.6) | (3.7) | ||||||||||||||
Total | $ | 37.9 | $ | 14.9 | $ | 31.1 |
Amount repurchased in millions | Amount Repurchased | Number of Shares Repurchased | Average Price | ||||||||||||||
2019 | $ | 127.9 | 10,191,257 |
(a)
|
$ | 12.55 | |||||||||||
2018 | $ | 120.0 | 10,566,144 | $ | 11.35 | ||||||||||||
2017 | $ | 58.4 | 4,462,263 |
(b)
|
$ | 13.08 | |||||||||||
In millions | 2019 | 2018 | ||||||
Trade
|
$ | 462.7 | $ | 475.9 | ||||
Less: Allowance
|
(11.5) | (10.4) | ||||||
451.2 | 465.5 | |||||||
Other
|
53.3 | 107.4 | ||||||
Total
|
$ | 504.5 | $ | 572.9 |
In millions | 2019 | 2018 | ||||||
Finished Goods
|
$ | 434.8 | $ | 426.9 | ||||
Work in Progress
|
123.4 | 102.2 | ||||||
Raw Materials
|
370.0 | 319.9 | ||||||
Supplies
|
167.7 | 165.4 | ||||||
Total
|
$ | 1,095.9 | $ | 1,014.4 |
In millions | 2019 | 2018 | ||||||
Deferred Purchase Price
|
$ | 0.7 | $ | 66.9 | ||||
Prepaid Assets
|
41.2 | 28.6 | ||||||
Contract Assets, current portion
|
10.4 | 9.8 | ||||||
Fair Value of Derivatives, current portion
|
— | 0.7 | ||||||
Total
|
$ | 52.3 | $ | 106.0 |
In millions | 2019 | 2018 | ||||||
Property, Plant and Equipment, at Cost:
|
||||||||
Land and Improvements
|
$ | 130.4 | $ | 134.1 | ||||
Buildings(a)
|
655.5 | 608.5 | ||||||
Machinery and Equipment(b)
|
5,832.6 | 5,716.2 | ||||||
Construction-in-Progress
|
202.6 | 201.2 | ||||||
6,821.1 | 6,660.0 | |||||||
Less: Accumulated Depreciation(a) (b)
|
(3,567.3) | (3,420.3) | ||||||
Total
|
$ | 3,253.8 | $ | 3,239.7 |
In millions | 2019 | 2018 | ||||||
Deferred Debt Issuance Costs, Net of Amortization of $14.1 million and $12.5 million for 2019 and 2018, respectively
|
$ | 4.8 | $ | 6.4 | ||||
Deferred Income Tax Assets
|
3.0 | 8.2 | ||||||
Pension Assets
|
25.6 | 19.0 | ||||||
Contract Assets, noncurrent portion
|
13.9 | 9.8 | ||||||
Fair Value of Derivatives, noncurrent portion
|
— | 0.1 | ||||||
Operating Lease Right-of-Use Asset
|
202.8 | — | ||||||
Other
|
25.2 | 27.8 | ||||||
Total
|
$ | 275.3 | $ | 71.3 |
In millions | 2019 | 2018 | ||||||
Dividends Payable
|
$ | 21.8 | $ | 22.5 | ||||
Deferred Revenue
|
15.2 | 14.0 | ||||||
Accrued Customer Rebates
|
36.5 | 30.2 | ||||||
Fair Value of Derivatives, current portion
|
8.5 | 1.3 | ||||||
Other Accrued Taxes
|
38.4 | 44.4 | ||||||
Accrued Payables
|
31.4 | 30.3 | ||||||
Liabilities Payable to a Financial Institution
|
— | 62.6 | ||||||
Operating Lease Liabilities, current portion
|
54.8 | — | ||||||
Other
|
32.5 | 35.4 | ||||||
Total
|
$ | 239.1 | $ | 240.7 |
In millions | 2019 | 2018 | ||||||
Deferred Revenue
|
$ | 5.3 | $ | 5.2 | ||||
Multi-employer Plans
|
30.8 | 32.4 | ||||||
Workers Compensation Reserve
|
9.5 | 9.9 | ||||||
Fair Value of Derivatives, noncurrent portion
|
3.0 | 2.1 | ||||||
Unfavorable Supply Agreement
|
28.9 | 31.2 | ||||||
Operating Lease Liabilities, noncurrent portion
|
151.5 | — | ||||||
Other
|
37.8 | 37.0 | ||||||
Total
|
$ | 266.8 | $ | 117.8 |
In millions | 2019 | 2018 | 2017 | ||||||||||||||
Receivables, Net
|
$ | (107.6) | $ | (1,158.1) | $ | (658.8) | |||||||||||
Inventories, Net
|
(72.8) | (82.0) | (6.5) | ||||||||||||||
Other Current Assets
|
(9.5) | 0.3 | 0.8 | ||||||||||||||
Other Assets
|
(7.9) | (1.0) | (32.8) | ||||||||||||||
Accounts Payable
|
(8.6) | 76.2 | 27.0 | ||||||||||||||
Compensation and Employee Benefits
|
12.9 | 26.9 | 3.5 | ||||||||||||||
Income Taxes
|
(4.2) | 0.6 | 2.3 | ||||||||||||||
Interest Payable
|
8.4 | (4.1) | (1.7) | ||||||||||||||
Other Accrued Liabilities
|
5.2 | 11.8 | 6.7 | ||||||||||||||
Other Noncurrent Liabilities
|
10.6 | 8.6 | 14.2 | ||||||||||||||
Total
|
$ | (173.5) | $ | (1,120.8) | $ | (645.3) |
In millions | 2019 | 2018 | 2017 | ||||||||
Interest
|
$ | 126.8 | $ | 125.0 | $ | 81.8 | |||||
Income Taxes
|
$ | 25.8 | $ | 25.8 | $ | 15.9 |
In millions | Amounts Recognized as of Acquisition Date | Measurement Period Adjustments | Amounts Recognized as of Acquisition Dates (as adjusted) | ||||||||
Purchase Price(a)
|
$ | 1,241.7 | $ | (40.9) | $ | 1,200.8 | |||||
Assumed Debt(b)
|
660.0 | — | 660.0 | ||||||||
Total Purchase Consideration | $ | 1,901.7 | $ | (40.9) | $ | 1,860.8 | |||||
Receivables, Net | 145.3 | — | 145.3 | ||||||||
Inventories, Net | 314.2 | 0.8 | 315.0 | ||||||||
Other Current Assets | 20.9 | (9.2) | 11.7 | ||||||||
Property, Plant and Equipment, Net | 1,242.6 | 32.0 | 1,274.6 | ||||||||
Intangible Assets, Net(c)
|
136.6 | 13.5 | 150.1 | ||||||||
Other Assets | 6.0 | (6.0) | — | ||||||||
Total Assets Acquired | 1,865.6 | 31.1 | 1,896.7 | ||||||||
Accounts Payable | 112.6 | — | 112.6 | ||||||||
Compensation and Employee Benefits | 21.0 | (5.7) | 15.3 | ||||||||
Current Liabilities | 16.3 | (0.1) | 16.2 | ||||||||
Other Noncurrent Liabilities | 41.3 | (1.7) | 39.6 | ||||||||
Total Liabilities Assumed | 191.2 | (7.5) | 183.7 | ||||||||
Net Assets Acquired | 1,674.4 | 38.6 | 1,713.0 | ||||||||
Goodwill | 227.3 | (79.5) | 147.8 | ||||||||
Total Estimated Fair Value of Net Assets Acquired | $ | 1,901.7 | $ | (40.9) | $ | 1,860.8 |
In millions, except per share data | Year Ended December 31, 2017 | ||||
Net Sales | $ | 5,912.5 | |||
Net Income Attributable to Graphic Packaging Holding Company | 367.7 | ||||
Income Per Share — Basic | 1.18 | ||||
Income Per Share — Diluted | 1.18 |
In millions | 2019 | 2018 | ||||||
Short Term Borrowings
|
$ | 9.3 | $ | 11.7 | ||||
Current Portion of Finance Lease Obligations
|
4.6 | 3.8 | ||||||
Current Portion of Long-Term Debt
|
36.5 | 36.5 | ||||||
Total
|
$ | 50.4 | $ | 52.0 | ||||
In millions | 2019 | 2018 | ||||||
Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.82%, payable in 2027
|
$ | 300.0 | $ | — | ||||
Senior Notes with interest payable semi-annually at 4.125%, effective rate of 4.17%, payable in 2024
|
300.0 | 300.0 | ||||||
Senior Notes with interest payable semi-annually at 4.875%, effective rate of 4.91%, payable in 2022
|
250.0 | 250.0 | ||||||
Senior Notes with interest payable semi-annually at 4.75%, effective rate of 4.76%, payable in 2021
|
425.0 | 425.0 | ||||||
Senior Secured Term Loan Facilities with interest payable at various dates at floating rates (3.28% at December 31, 2019) payable through 2023
|
1,396.1 | 1,432.6 | ||||||
Senior Secured Revolving Credit Facilities with interest payable at floating rates (1.50% at December 31, 2019) payable in 2023
|
52.8 | 399.0 | ||||||
Finance Leases | 134.2 | 122.9 | ||||||
Other | 5.4 | 26.5 | ||||||
Total Long-Term Debt | 2,863.5 | 2,956.0 | ||||||
Less: Current Portion | 41.1 | 40.3 | ||||||
2,822.4 | 2,915.7 | |||||||
Less: Unamortized Deferred Debt Issuance Costs | 12.5 | 10.6 | ||||||
Total
|
$ | 2,809.9 | $ | 2,905.1 |
In millions | ||||||||
2020 | $ | 36.5 | ||||||
2021 | 489.4 | |||||||
2022 | 128.2 | |||||||
2023 | 1,471.2 | |||||||
2024 | 300.4 | |||||||
After 2024
|
303.6 | |||||||
Total
|
$ | 2,729.3 |
Date |
Document(a)
|
Provision |
Expiration(b)
|
|||||||||||
March 2012
|
Amended and Restated Credit Agreement
|
•$1.0 billion revolving credit facility •$1.0 billion amortizing term loan facility •LIBOR plus variable spread (between 175 basis points and 275 basis points) depending on consolidated total leverage ratio
|
||||||||||||
December 2012
|
Amendment No. 1 to Credit Agreement
|
•$300 million incremental term loan
|
||||||||||||
September 2013
|
Amendment No. 2 to Credit Agreement
|
•Added €75 million (approximately $100 million) revolving credit facility for borrowings in Euro and Pound Sterling and a ¥2.5 billion (approximately $25 million) revolving credit facility for borrowings in Yen. LIBOR plus variable spread (between 150 basis points and 250 basis points) depending on consolidated total leverage ratio
|
|
|||||||||||
June 2014
|
Amendment No. 3 to Credit Agreement
|
•Increased revolving credit facility under which borrowings can be made in Euros or Sterling by €63 million (approximately $86 million)
|
||||||||||||
October 2014
|
Second Amended and Restated Credit Agreement
|
•Increased the domestic revolving credit facility by $250 million and reduced the term loan by approximately $169 million. LIBOR plus variable spread (between 125 basis points and 225 basis points) depending on consolidated total leverage ratio
|
||||||||||||
January 2018
|
Third Amended and Restated Credit Agreement
|
•Increased the domestic revolving credit facility by $200 million to $1,450 million and reduced the term loan by approximately $125 million to $800 million. LIBOR plus variable spread (between 125 basis points and 200 basis points) depending on consolidated total leverage ratio
•Assumed the term loan indebtedness as part of the NACP Combination in an aggregate amount of $660.0 million
|
January 2023
|
In millions | Total Commitments | Total Outstanding | Total Available | ||||||||
Senior Secured Domestic Revolving Credit Facility (a)
|
$ | 1,450.0 | $ | — | $ | 1,432.1 | |||||
Senior Secured International Revolving Credit Facilities
|
178.0 | 52.8 | 125.2 | ||||||||
Other International Facilities
|
59.7 | 14.6 | 45.1 | ||||||||
Total
|
$ | 1,687.7 | $ | 67.4 | $ | 1,602.4 |
Twelve Months Ended | ||||||||
In millions | December 31, 2019 | |||||||
Finance lease costs:
|
||||||||
Amortization of right-of-use asset | $ | 7.6 | ||||||
Interest on lease liabilities | 7.8 | |||||||
Operating lease costs | 64.8 | |||||||
Short-term lease costs | 12.9 | |||||||
Variable lease costs | 4.4 | |||||||
Total lease costs, net | $ | 97.5 |
Twelve Months Ended | |||||
In millions | December 31, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|||||
Operating cash flows from operating leases | $ | 64.7 | |||
Operating cash flows from finance leases | 7.8 | ||||
Financing cash flows from finance leases | 4.2 | ||||
Right-of-use assets obtained in exchange for lease obligations:
|
|||||
Operating leases | 73.1 | ||||
Finance leases | 15.5 |
In millions, except lease term and discount rate | Balance Sheet Classification | December 31, 2019 | |||||||||
Operating Leases: | |||||||||||
Operating lease right-of-use asset | Other Assets | $ | 202.8 | ||||||||
Current operating lease liabilities | Other Current Liabilities | $ | 54.8 | ||||||||
Noncurrent operating lease liabilities | Other Noncurrent Liabilities | 151.5 | |||||||||
Total operating lease liabilities | $ | 206.3 | |||||||||
Finance Leases: | |||||||||||
Property, Plant and Equipment | $ | 142.1 | |||||||||
Accumulated depreciation | (12.2) | ||||||||||
Property, Plant and Equipment, net | $ | 129.9 | |||||||||
Current finance lease liabilities | Short-Term Debt and Current Portion of Long-Term Debt | $ | 4.6 | ||||||||
Noncurrent finance lease liabilities | Long-Term Debt | 129.6 | |||||||||
Total finance lease liabilities | $ | 134.2 | |||||||||
Weighted Average Remaining Lease Term (Years) | |||||||||||
Operating leases | 5 | ||||||||||
Finance leases | 17 | ||||||||||
Weighted Average Discount Rate | |||||||||||
Operating leases | 3.57 | % | |||||||||
Finance leases | 5.60 | % |
In millions | ||||||||
Year ending December 31,
|
Operating Leases | Finance Leases | ||||||
2020 | $ | 60.8 | $ | 12.5 | ||||
2021 | 48.4 | 12.6 | ||||||
2022 | 38.6 | 12.2 | ||||||
2023 | 29.0 | 12.4 | ||||||
2024 | 18.1 | 12.4 | ||||||
Thereafter | 30.7 | 158.2 | ||||||
Total lease payments | 225.6 | 220.3 | ||||||
Less imputed interest | (19.3) | (86.1) | ||||||
Total | $ | 206.3 | $ | 134.2 |
2019 | 2018 | 2017 | |||||||||
RSUs — Employees
|
2,187,603 | 1,951,738 | 1,472,995 | ||||||||
Weighted-average grant date fair value
|
$ | 12.37 | $ | 14.86 | $ | 13.52 | |||||
Stock Awards — Board of Directors
|
74,760 | 51,226 | 65,520 | ||||||||
Weighted-average grant date fair value
|
$ | 12.84 | $ | 15.03 | $ | 13.43 |
Shares | Weighted Average Grant Date Fair Value | |||||||
Outstanding — December 31, 2016 | 4,667,675 | $ | 12.21 | |||||
Granted(a)
|
1,472,995 | 13.52 | ||||||
Released | (1,720,327) | 10.05 | ||||||
Forfeited | (622,463) | 13.13 | ||||||
Performance adjustment(b)
|
74,054 | 9.93 | ||||||
Outstanding — December 31, 2017 | 3,871,934 | $ | 13.10 | |||||
Granted(a)
|
1,951,738 | 14.86 | ||||||
Released | (744,757) | 14.90 | ||||||
Forfeited | (210,553) | 13.49 | ||||||
Performance adjustment(b)
|
(408,328) | 15.10 | ||||||
Outstanding — December 31, 2018 | 4,460,034 | $ | 13.27 | |||||
Granted(a)
|
2,187,603 | 12.37 | ||||||
Released | (900,516) | 12.00 | ||||||
Forfeited | (187,729) | 13.66 | ||||||
Performance adjustment(b)
|
(499,702) | 11.57 | ||||||
Outstanding — December 31, 2019 | 5,059,690 | $ | 13.27 |
|
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
In millions | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||
Components of Net Periodic Cost:
|
|||||||||||||||||||||||||||||||||||
Service Cost
|
$ | 14.0 | $ | 17.3 | $ | 8.2 | $ | 0.5 | $ | 0.6 | $ | 0.8 | |||||||||||||||||||||||
Interest Cost
|
46.1 | 41.8 | 42.6 | 1.2 | 1.2 | 1.3 | |||||||||||||||||||||||||||||
Expected Return on Plan Assets
|
(54.9) | (63.6) | (64.1) | — | — | — | |||||||||||||||||||||||||||||
Amortization:
|
|||||||||||||||||||||||||||||||||||
Prior Service Cost (Credit)
|
0.2 | 0.4 | 0.5 | (0.3) | (0.3) | (0.3) | |||||||||||||||||||||||||||||
Actuarial Loss (Gain)
|
10.0 | 5.9 | 6.5 | (2.3) | (1.8) | (2.1) | |||||||||||||||||||||||||||||
Net Curtailment/Settlement Loss
|
39.2 | 1.0 | — | — | — | — | |||||||||||||||||||||||||||||
Other
|
0.3 | 0.5 | 0.8 | — | — | — | |||||||||||||||||||||||||||||
Net Periodic Cost (Benefit)
|
$ | 54.9 | $ | 3.3 | $ | (5.5) | $ | (0.9) | $ | (0.3) | $ | (0.3) |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Weighted Average Assumptions:
|
|||||||||||||||||||||||||||||||||||
Discount Rate
|
4.14 | % | 3.49 | % | 4.01 | % | 4.29 | % | 3.64 | % | 4.10 | % | |||||||||||||||||||||||
Rate of Increase in Future Compensation Levels
|
2.37 | % | 2.09 | % | 1.45 | % | — | — | — | ||||||||||||||||||||||||||
Expected Long-Term Rate of Return on Plan Assets
|
4.74 | % | 4.86 | % | 5.79 | % | — | — | — | ||||||||||||||||||||||||||
Initial Health Care Cost Trend Rate
|
— | — | — | 9.00 | % | 9.00 | % | 7.45 | % | ||||||||||||||||||||||||||
Ultimate Health Care Cost Trend Rate
|
— | — | — | 4.50 | % | 4.50 | % | 4.50 | % | ||||||||||||||||||||||||||
Ultimate Year
|
— | — | — | 2028 | 2027 | 2024 |
Pension Benefits | Postretirement Benefits | |||||||||||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Change in Benefit Obligation:
|
||||||||||||||||||||
Benefit Obligation at Beginning of Year
|
$ | 1,245.2 | $ | 1,367.1 | $ | 34.1 | $ | 37.3 | ||||||||||||
Service Cost
|
14.0 | 17.3 | 0.5 | 0.6 | ||||||||||||||||
Interest Cost
|
46.1 | 41.8 | 1.2 | 1.2 | ||||||||||||||||
Actuarial Loss (Gain)
|
157.8 | (101.9) | 1.1 | (3.0) | ||||||||||||||||
Foreign Currency Exchange
|
9.2 | (14.8) | 0.1 | (0.2) | ||||||||||||||||
Settlements
|
(150.2) | — | — | — | ||||||||||||||||
Benefits Paid
|
(67.2) | (65.4) | (1.2) | (1.9) | ||||||||||||||||
Other
|
0.5 | 1.1 | 0.1 | 0.1 | ||||||||||||||||
Benefit Obligation at End of Year
|
$ | 1,255.4 | $ | 1,245.2 | $ | 35.9 | $ | 34.1 | ||||||||||||
Change in Plan Assets:
|
||||||||||||||||||||
Fair Value of Plan Assets at Beginning of Year
|
$ | 1,186.5 | $ | 1,340.7 | $ | — | $ | — | ||||||||||||
Actual Return on Plan Assets
|
181.7 | (79.6) | — | — | ||||||||||||||||
Employer Contributions
|
11.3 | 5.8 | 1.2 | 1.9 | ||||||||||||||||
Foreign Currency Exchange
|
10.3 | (15.0) | — | — | ||||||||||||||||
Benefits Paid
|
(67.2) | (65.4) | (1.2) | (1.9) | ||||||||||||||||
Settlements
|
(150.2) | — | — | — | ||||||||||||||||
Fair Value of Plan Assets at End of Year
|
$ | 1,172.4 | $ | 1,186.5 | $ | — | $ | — | ||||||||||||
Plan Assets Less than Projected Benefit Obligation
|
$ | (83.0) | $ | (58.7) | $ | (35.9) | $ | (34.1) | ||||||||||||
Amounts Recognized in the Consolidated Balance Sheets Consist of:
|
||||||||||||||||||||
Pension Assets
|
$ | 25.6 | $ | 19.0 | $ | — | $ | — | ||||||||||||
Accrued Pension and Postretirement Benefits Liability — Current
|
$ | (1.7) | $ | (1.8) | $ | (2.4) | $ | (2.5) | ||||||||||||
Accrued Pension and Postretirement Benefits Liability — Noncurrent
|
$ | (106.9) | $ | (75.9) | $ | (33.5) | $ | (31.6) | ||||||||||||
Accumulated Other Comprehensive Income:
|
||||||||||||||||||||
Net Actuarial Loss (Gain)
|
$ | 279.9 | $ | 297.3 | $ | (0.8) | $ | (1.6) | ||||||||||||
Prior Service Cost (Credit)
|
$ | 3.6 | $ | 3.6 | $ | (17.3) | $ | (20.2) | ||||||||||||
Weighted Average Calculations:
|
||||||||||||||||||||
Discount Rate
|
2.69 | % | 4.14 | % | 3.22 | % | 4.29 | % | ||||||||||||
Rates of Increase in Future Compensation Levels
|
2.36 | % | 2.37 | % | — | — | ||||||||||||||
Initial Health Care Cost Trend Rate
|
— | — | 6.65 | % | 9.00 | % | ||||||||||||||
Ultimate Health Care Cost Trend Rate
|
— | — | 4.50 | % | 4.50 | % | ||||||||||||||
Ultimate Year
|
— | — | 2028 | 2027 |
Target | 2019 | 2018 | |||||||||
Cash
|
0.2 | % | 13.6 | % | 5.0 | % | |||||
Equity Securities
|
8.4 | 7.7 | 8.1 | ||||||||
Fixed Income Securities
|
85.2 | 68.6 | 79.5 | ||||||||
Other Investments
|
6.2 | 10.1 | 7.4 | ||||||||
Total
|
100.0 | % | 100.0 | % | 100.0 | % |
Fair Value Measurements at December 31, 2019
|
|||||||||||||||||||||||
In millions |
Total |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Asset Category:
|
|||||||||||||||||||||||
Cash (a)
|
$ | 159.6 | $ | 0.3 | $ | 159.3 | $ | — | |||||||||||||||
Equity Securities:
|
|||||||||||||||||||||||
Domestic (a)
|
82.9 | 4.7 | 78.2 | — | |||||||||||||||||||
Foreign (a)
|
7.0 | 7.0 | — | — | |||||||||||||||||||
Fixed Income Securities (a)
|
852.5 | 17.0 | 835.3 | 0.2 | |||||||||||||||||||
Other Investments:
|
|||||||||||||||||||||||
Real estate
|
21.9 | — | 8.9 | 13.0 | |||||||||||||||||||
Diversified growth fund (b)
|
48.5 | — | 48.5 | — | |||||||||||||||||||
Total
|
$ | 1,172.4 | $ | 29.0 | $ | 1,130.2 | $ | 13.2 |
Fair Value Measurements at December 31, 2018
|
|||||||||||||||||||||||
In millions | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Asset Category:
|
|||||||||||||||||||||||
Cash (a)
|
$ | 58.8 | $ | 0.3 | $ | 58.5 | $ | — | |||||||||||||||
Equity Securities:
|
|||||||||||||||||||||||
Domestic (a)
|
86.4 | 3.6 | 82.8 | — | |||||||||||||||||||
Foreign (a)
|
9.2 | 5.3 | 3.8 | — | |||||||||||||||||||
Fixed Income Securities (a)
|
980.1 | 15.0 | 962.3 | 2.8 | |||||||||||||||||||
Other Investments:
|
|||||||||||||||||||||||
Real estate
|
9.2 | — | 7.6 | 1.6 | |||||||||||||||||||
Diversified growth fund (b)
|
42.8 | — | 41.5 | 1.4 | |||||||||||||||||||
Total
|
$ | 1,186.5 | $ | 24.2 | $ | 1,156.5 | $ | 5.8 |
In millions | 2019 | 2018 | |||||||||||||||
Balance at January 1,
|
$ | 5.8 | $ | 0.8 | |||||||||||||
Transfers In
|
7.4 | 5.0 | |||||||||||||||
Return on Assets Held at December 31
|
— | — | |||||||||||||||
Balance at December 31,
|
$ | 13.2 | $ | 5.8 |
One Percentage Point | |||||||||||
In millions | Increase | Decrease | |||||||||
Health Care Cost Trend Rate Sensitivity:
|
|||||||||||
Effect on Total Interest and Service Cost Components
|
$ | 0.1 | $ | (0.1) | |||||||
Effect on Year-End Postretirement Benefit Obligation
|
$ | 2.1 | $ | (1.8) |
In millions | Pension Plans | Postretirement Health Care Benefits | ||||||
2020 | $ | 71.4 | $ | 2.4 | ||||
2021 | 73.0 | 2.5 | ||||||
2022 | 74.5 | 2.6 | ||||||
2023 | 75.9 | 2.6 | ||||||
2024 | 76.9 | 2.8 | ||||||
2025— 2029 | 384.5 | 11.4 |
In millions |
Pension Benefits | Postretirement Health Care Benefits | |||||||||
Recognition of Prior Service Cost
|
$ | 0.2 | $ | (0.3) | |||||||
Recognition of Actuarial Loss (Gain)(a)
|
4.9 | (2.1) |
Pension Protection Act Zone Status |
Company Contributions (in millions)
|
|||||||||||||||||||||||||||||||||||||
Multi-employer Pension Fund | EIN/Pension Plan Number | 2019 | 2018 | FIP/RP Status Implemented | 2019 | 2018 | 2017 | Surcharge Imposed | Expiration Date of Bargaining Agreement | |||||||||||||||||||||||||||||
Central States Southeast and Southwest Areas Pension Fund
|
36-6044243/001 | Red | Red | Yes | $ | 0.1 | $ | 0.1 | $ | 0.1 | Yes | 7/31/2023 | ||||||||||||||||||||||||||
PIUMPF(a)
|
11-6166763/001 | Red | Red | Yes | — | 0.1 | 0.1 | Yes | 6/15/2022 | |||||||||||||||||||||||||||||
GCC/IBT(a)
|
52-6118568/001 | Red | Red | Yes | 0.1 | 0.3 | 0.3 | Yes | 4/30/2022 | |||||||||||||||||||||||||||||
Total | $ | 0.2 | $ | 0.5 | $ | 0.5 |
Year Ended December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
U.S.
|
$ | 305.4 | $ | 298.9 | $ | 227.5 | |||||||||||
International
|
48.6 | 48.6 | 25.5 | ||||||||||||||
Income before Income Taxes and Equity Income of Unconsolidated Entity
|
$ | 354.0 | $ | 347.5 | $ | 253.0 |
Year Ended December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
Current (Expense) Benefit:
|
|||||||||||||||||
U.S.
|
$ | (10.1) | $ | (13.0) | $ | 0.7 | |||||||||||
International
|
(13.5) | (15.7) | (9.2) | ||||||||||||||
Total Current
|
$ | (23.6) | $ | (28.7) | $ | (8.5) | |||||||||||
Deferred (Expense) Benefit:
|
|||||||||||||||||
U.S.
|
(47.7) | (31.6) | 51.0 | ||||||||||||||
International
|
(5.0) | 5.6 | 3.0 | ||||||||||||||
Total Deferred
|
$ | (52.7) | $ | (26.0) | $ | 54.0 | |||||||||||
Income Tax (Expense) Benefit
|
$ | (76.3) | $ | (54.7) | $ | 45.5 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
In millions | 2019 | Percent | 2018 | Percent | 2017 | Percent | |||||||||||||||||||||||||||||||||||||||||
Income Tax Expense at U.S. Statutory Rate
|
$ | (74.3) | 21.0 | % | $ | (73.0) | 21.0 | % | $ | (88.5) | 35.0 | % | |||||||||||||||||||||||||||||||||||
U.S. State and Local Tax Expense
|
(12.3) | 3.5 | (11.7) | 3.4 | (8.7) | 3.4 | |||||||||||||||||||||||||||||||||||||||||
Permanent Items
|
(2.8) | 0.8 | (3.8) | 1.1 | (2.7) | 1.0 | |||||||||||||||||||||||||||||||||||||||||
U.S. Tax Reform
|
— | — | 10.9 | (3.1) | 138.0 | (54.5) | |||||||||||||||||||||||||||||||||||||||||
Change in Valuation Allowance due to Tax Reform
|
— | — | — | — | (2.0) | 0.8 | |||||||||||||||||||||||||||||||||||||||||
Change in Valuation Allowance
|
(4.6) | 1.3 | 13.0 | (3.7) | (3.5) | 1.4 | |||||||||||||||||||||||||||||||||||||||||
International Tax Rate Differences
|
(1.6) | 0.5 | (1.9) | 0.5 | 3.2 | (1.3) | |||||||||||||||||||||||||||||||||||||||||
Foreign Withholding Tax
|
(0.7) | 0.2 | (0.5) | 0.1 | (0.4) | 0.2 | |||||||||||||||||||||||||||||||||||||||||
Change in Tax Rates
|
(1.0) | 0.3 | 1.9 | (0.5) | (3.0) | 1.2 | |||||||||||||||||||||||||||||||||||||||||
U.S. Federal & State Tax Credits
|
9.5 | (2.7) | 0.3 | (0.1) | 10.2 | (4.0) | |||||||||||||||||||||||||||||||||||||||||
Uncertain Tax Positions
|
(1.9) | 0.5 | (0.7) | 0.2 | (0.3) | 0.1 | |||||||||||||||||||||||||||||||||||||||||
Capital Loss Expiration
|
— | — | (2.7) | 0.7 | — | — | |||||||||||||||||||||||||||||||||||||||||
Domestic Minority Interest
|
13.7 | (3.9) | 13.7 | (3.9) | — | — | |||||||||||||||||||||||||||||||||||||||||
Other
|
(0.3) | 0.1 | (0.2) | — | 3.2 | (1.3) | |||||||||||||||||||||||||||||||||||||||||
Income Tax (Expense) Benefit
|
$ | (76.3) | 21.6 | % | $ | (54.7) | 15.7 | % | $ | 45.5 | (18.0) | % |
In millions | 2019 | 2018 | ||||||
Deferred Income Tax Assets:
|
||||||||
Compensation Based Accruals
|
$ | 3.8 | $ | 2.9 | ||||
Net Operating Loss Carryforwards
|
45.5 | 73.4 | ||||||
Postretirement Benefits
|
0.9 | 1.0 | ||||||
Tax Credits
|
37.2 | 30.8 | ||||||
Other
|
10.9 | 7.6 | ||||||
Valuation Allowance
|
(41.1) | (36.3) | ||||||
Total Deferred Income Tax Assets
|
$ | 57.2 | $ | 79.4 | ||||
Deferred Income Tax Liabilities:
|
||||||||
Property, Plant and Equipment
|
(18.8) | (16.7) | ||||||
Goodwill
|
(2.7) | (2.3) | ||||||
Other Intangibles
|
(12.3) | (12.3) | ||||||
Investment in Partnership
|
(532.2) | (502.1) | ||||||
Net Noncurrent Deferred Income Tax Liabilities
|
$ | (566.0) | $ | (533.4) | ||||
Net Deferred Income Tax Liability
|
$ | (508.8) | $ | (454.0) |
December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
Balance Beginning of Period
|
$ | 36.3 | $ | 51.5 | $ | 45.5 | |||||||||||
Adjustments for Expenses and (Income)
|
4.6 | (13.0) | 5.5 | ||||||||||||||
Additions (Deductions)
|
0.2 | (2.2) | 0.5 | ||||||||||||||
Balance at End of Period
|
$ | 41.1 | $ | 36.3 | $ | 51.5 |
In millions | 2019 | 2018 | 2017 | ||||||||
Balance at January 1,
|
$ | 15.5 | $ | 10.5 | $ | 10.1 | |||||
Additions for Tax Positions of Current Year
|
3.2 | 0.8 | 0.6 | ||||||||
Additions for Tax Positions of Prior Years
|
2.4 | 5.2 | 0.7 | ||||||||
Reductions for Tax Positions of Prior Years
|
(0.4) | (1.0) | (0.9) | ||||||||
Balance at December 31,
|
$ | 20.7 | $ | 15.5 | $ | 10.5 |
Start | End |
(In Millions)
Notional Amount
|
Weighted Average Interest Rate | ||||||||
04/03/2018 | 01/01/2020 | $150.0 | 2.25% | ||||||||
04/03/2018 | 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% |
Derivative Assets(a)
|
Derivative Liabilities(b)
|
|||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate contracts | $ | — | $ | 0.8 | $ | 6.6 | $ | 2.7 | ||||||||||||
Foreign currency contracts | — | — | 1.5 | 0.5 | ||||||||||||||||
Commodity contracts | — | — | 3.4 | 0.2 | ||||||||||||||||
Total Derivatives | $ | — | $ | 0.8 | $ | 11.5 | $ | 3.4 |
Amount of Loss (Gain) Recognized in Accumulated Other Comprehensive Loss | Location in Statement of Operations | Amount of (Gain) Loss Recognized in Statement of Operations | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
In millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||
Commodity Contracts | $ | 1.4 | $ | (0.7) | Cost of Sales | $ | (1.8) | $ | (0.4) | |||||||||||||||||||||||||||||
Foreign Currency Contracts
|
0.1 | (0.3) |
Other Expense, Net
|
(1.3) | 0.7 | |||||||||||||||||||||||||||||||||
Interest Rate Swap Agreements
|
5.8 | 2.0 |
Interest Expense, Net
|
1.4 | (0.9) | |||||||||||||||||||||||||||||||||
Total | $ | 7.3 | $ | 1.0 | $ | (1.7) | $ | (0.6) |
In millions | 2019 | 2018 | |||||||||
Foreign Currency Contracts | Other Expense (Income), Net | $ | (0.9) | $ | (5.6) |
In millions | 2019 | 2018 | 2017 | ||||||||
Balance at January 1
|
$ | (1.9) | $ | (0.3) | $ | 7.5 | |||||
Reclassification to Earnings
|
(1.7) | (0.6) | (2.1) | ||||||||
Current Period Change in Fair Value
|
(7.3) | (1.0) | (5.7) | ||||||||
Balance at December 31
|
$ | (10.9) | $ | (1.9) | $ | (0.3) |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions |
Pretax Amount | Tax Effect |
Net Amount(a)
|
Pretax Amount | Tax Effect |
Net Amount(a)
|
Pretax Amount | Tax Effect | Net Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments (Loss) Gain
|
$ | (6.7) | $ | 1.4 | $ | (5.3) | $ | (1.1) | $ | 0.1 | $ | (1.0) | $ | (7.8) | $ | 2.9 | $ | (4.9) | |||||||||||||||||||||||||||||||||||||||||||||||
Pension and Postretirement Benefit Plans
|
10.1 | (2.5) | 7.6 | (24.8) | 5.4 | (19.4) | 12.3 | (3.5) | 8.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency Translation Adjustment
|
9.8 | — | 9.8 | (18.7) | — | (18.7) | 44.9 | — | 44.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | $ | 13.2 | $ | (1.1) | $ | 12.1 | $ | (44.6) | $ | 5.5 | $ | (39.1) | $ | 49.4 | $ | (0.6) | $ | 48.8 |
December 31, | |||||||||||
In millions | 2019 | 2018 | |||||||||
Accumulated Derivative Instruments Loss
|
$ | (16.6) | $ | (11.3) | |||||||
Pension and Postretirement Benefit Plans
|
(238.5) | (246.1) | |||||||||
Currency Translation Adjustment
|
(110.7) | (120.5) | |||||||||
Accumulated Other Comprehensive Loss
|
$ | (365.8) | $ | (377.9) |
In millions | |||||
2020 | $ | 57.8 | |||
2021 | 30.0 | ||||
2022 | 19.5 | ||||
2023 | 18.3 | ||||
2024 | 18.5 | ||||
Thereafter
|
77.1 | ||||
Total
|
$ | 221.2 |
In millions | |||||
Balance at December 31, 2017 | $ | — | |||
Issuance of Redeemable Noncontrolling Interest at January 1, 2018 | 255.2 | ||||
Net Income Attributable to Redeemable Noncontrolling Interest | 16.6 | ||||
Other Comprehensive Loss, Net of Tax | (2.8) | ||||
Reclassification to Noncontrolling Interest for Share Repurchases(a)
|
12.5 | ||||
Distributions of Membership Interest | (5.7) | ||||
Balance at December 31, 2018 | $ | 275.8 | |||
Net Income Attributable to Redeemable Noncontrolling Interest | 16.3 | ||||
Other Comprehensive Loss, Net of Tax | 0.8 | ||||
Redeemable Noncontrolling Interest Redemption Value Mark-up | 30.2 | ||||
Reclassification to Noncontrolling Interest for Share Repurchases(a)
|
(12.5) | ||||
Distributions of Membership Interest | (6.3) | ||||
Balance at December 31, 2019 | $ | 304.3 |
Year Ended December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
NET SALES:
|
|||||||||||||||||
Paperboard Mills | $ | 1,094.8 | $ | 1,078.1 | $ | 399.7 | |||||||||||
Americas Paperboard Packaging | 4,233.7 | 4,098.3 | 3,245.1 | ||||||||||||||
Europe Paperboard Packaging | 689.3 | 695.9 | 593.5 | ||||||||||||||
Corporate/Other/Eliminations(a)
|
142.3 | 157.1 | 167.3 | ||||||||||||||
Total | $ | 6,160.1 | $ | 6,029.4 | $ | 4,405.6 | |||||||||||
INCOME (LOSS) FROM OPERATIONS:
|
|||||||||||||||||
Paperboard Mills(b)
|
$ | 33.1 | $ | 30.6 | $ | (35.0) | |||||||||||
Americas Paperboard Packaging | 477.7 | 420.1 | 358.2 | ||||||||||||||
Europe Paperboard Packaging | 60.3 | 46.1 | 37.3 | ||||||||||||||
Corporate and Other(c)
|
(37.0) | (38.6) | (32.6) | ||||||||||||||
Total
|
$ | 534.1 | $ | 458.2 | $ | 327.9 | |||||||||||
CAPITAL EXPENDITURES:
|
|||||||||||||||||
Paperboard Mills | $ | 208.0 | $ | 240.1 | $ | 111.4 | |||||||||||
Americas Paperboard Packaging | 94.7 | 104.3 | 98.8 | ||||||||||||||
Europe Paperboard Packaging | 34.5 | 19.5 | 17.3 | ||||||||||||||
Corporate and Other | 15.7 | 31.3 | 32.6 | ||||||||||||||
Total | $ | 352.9 | $ | 395.2 | $ | 260.1 | |||||||||||
DEPRECIATION AND AMORTIZATION:
|
|||||||||||||||||
Paperboard Mills | $ | 224.4 | $ | 197.5 | $ | 143.7 | |||||||||||
Americas Paperboard Packaging | 165.1 | 165.4 | 125.3 | ||||||||||||||
Europe Paperboard Packaging | 36.7 | 48.9 | 42.1 | ||||||||||||||
Corporate and Other | 21.0 | 18.8 | 19.2 | ||||||||||||||
Total | $ | 447.2 | $ | 430.6 | $ | 330.3 |
December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
ASSETS AT DECEMBER 31:
|
|||||||||||||||||
Paperboard Mills
|
$ | 2,912.2 | $ | 3,005.6 | $ | 1,487.0 | |||||||||||
Americas Paperboard Packaging
|
3,392.3 | 3,143.6 | 2,478.7 | ||||||||||||||
Europe Paperboard Packaging
|
686.3 | 603.4 | 607.1 | ||||||||||||||
Corporate and Other
|
299.1 | 306.6 | 290.2 | ||||||||||||||
Total
|
$ | 7,289.9 | $ | 7,059.2 | $ | 4,863.0 |
Year Ended December 31, | |||||||||||||||||
In millions | 2019 | 2018 | 2017 | ||||||||||||||
NET SALES:
|
|||||||||||||||||
Americas(a)
|
$ | 5,328.5 | $ | 5,176.4 | $ | 3,644.8 | |||||||||||
Europe
|
689.3 | 695.9 | 593.5 | ||||||||||||||
Asia Pacific
|
219.3 | 217.8 | 215.7 | ||||||||||||||
Corporate and Other
|
(77.0) | (60.7) | (48.4) | ||||||||||||||
Total
|
$ | 6,160.1 | $ | 6,029.4 | $ | 4,405.6 |
In millions | 2019 | 2018 | 2017 | ||||||||
ASSETS AT DECEMBER 31:
|
|||||||||||
Americas(a)
|
$ | 6,396.3 | $ | 6,260.1 | $ | 4,046.4 | |||||
Europe
|
686.3 | 603.4 | 607.1 | ||||||||
Asia Pacific
|
207.3 | 195.7 | 209.5 | ||||||||
Total
|
$ | 7,289.9 | $ | 7,059.2 | $ | 4,863.0 |
2019 | |||||||||||||||||||||||||||||
In millions, except per share amounts | First | Second | Third |
Fourth(a)
|
Total | ||||||||||||||||||||||||
Statement of Operations Data:
|
|||||||||||||||||||||||||||||
Net Sales
|
$ | 1,505.9 | $ | 1,552.8 | $ | 1,581.6 | $ | 1,519.8 | $ | 6,160.1 | |||||||||||||||||||
Gross Profit
|
266.1 | 287.8 | 266.4 | 272.3 | 1,092.6 | ||||||||||||||||||||||||
Business Combinations, Shutdown and Other Special Charges and Gain on Sale of Assets, Net
|
6.2 | 9.9 | 8.2 | 13.6 | 37.9 | ||||||||||||||||||||||||
Income from Operations
|
134.0 | 144.4 | 122.7 | 133.0 | 534.1 | ||||||||||||||||||||||||
Net Income
|
78.1 | 86.1 | 70.0 | 43.9 | 278.1 | ||||||||||||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company
|
57.9 | 63.8 | 52.1 | 33.0 | 206.8 | ||||||||||||||||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Basic
|
$ | 0.19 | $ | 0.22 | $ | 0.18 | $ | 0.11 | $ | 0.70 | |||||||||||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Diluted
|
$ | 0.19 | $ | 0.22 | $ | 0.18 | $ | 0.11 | $ | 0.70 |
2018 | |||||||||||||||||||||||||||||
In millions, except per share amounts | First | Second | Third | Fourth | Total | ||||||||||||||||||||||||
Statement of Operations Data:
|
|||||||||||||||||||||||||||||
Net Sales
|
$ | 1,477.4 | $ | 1,510.9 | $ | 1,531.8 | $ | 1,509.3 | $ | 6,029.4 | |||||||||||||||||||
Gross Profit
|
223.9 | 237.5 | 258.3 | 232.7 | 952.4 | ||||||||||||||||||||||||
Business Combinations, (Gain) on Sale of Assets and Shutdown and Other Special Charges, Net
|
26.3 | 8.6 | (27.4) | 7.4 | 14.9 | ||||||||||||||||||||||||
Income from Operations
|
74.0 | 110.3 | 166.4 | 107.5 | 458.2 | ||||||||||||||||||||||||
Net Income
|
42.7 | 66.0 | 122.0 | 63.3 | 294.0 | ||||||||||||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company
|
29.9 | 49.4 | 94.3 | 47.5 | 221.1 | ||||||||||||||||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Basic(a)
|
$ | 0.10 | $ | 0.16 | $ | 0.30 | $ | 0.16 | $ | 0.71 | |||||||||||||||||||
Net Income Per Share Attributable to Graphic Packaging Holding Company — Diluted
|
$ | 0.10 | $ | 0.16 | $ | 0.30 | $ | 0.15 | $ | 0.71 |
Year Ended December 31, | |||||||||||||||||
In millions, except per share data | 2019 | 2018 | 2017 | ||||||||||||||
Net Income Attributable to Graphic Packaging Holding Company
|
$ | 206.8 | $ | 221.1 | $ | 300.2 | |||||||||||
Weighted Average Shares:
|
|||||||||||||||||
Basic
|
294.1 | 309.5 | 311.1 | ||||||||||||||
Dilutive effect of RSUs
|
0.7 | 0.6 | 0.8 | ||||||||||||||
Diluted
|
294.8 | 310.1 | 311.9 | ||||||||||||||
Earnings Per Share — Basic
|
$ | 0.70 | $ | 0.71 | $ | 0.97 | |||||||||||
Earnings Per Share — Diluted
|
$ | 0.70 | $ | 0.71 | $ | 0.96 |
In millions | Derivatives Instruments | Pension and Postretirement Benefit Plans | Currency Translation Adjustments | Total | ||||||||||||||||
Balance at December 31, 2018 | $ | (11.3) | $ | (246.1) | $ | (120.5) | $ | (377.9) | ||||||||||||
Other Comprehensive (Loss) Income before Reclassifications
|
(5.8) | (26.9) | 12.4 | (20.3) | ||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive (Loss) Income(b)
|
(1.4) | 37.5 | — | 36.1 | ||||||||||||||||
Net Current-period Other Comprehensive (Loss) Income | (7.2) | 10.6 | 12.4 | 15.8 | ||||||||||||||||
Less: | ||||||||||||||||||||
Net Current-period Other Comprehensive Loss (Income) Attributable to Noncontrolling Interest(c)
|
1.9 | (3.0) | (2.6) | (3.7) | ||||||||||||||||
Balance at December 31, 2019 | $ | (16.6) | $ | (238.5) | $ | (110.7) | $ | (365.8) |
In millions | ||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||
Derivatives Instruments: | ||||||||||||||
Commodity Contracts | $ | (1.8) | Cost of Sales | |||||||||||
Foreign Currency Contracts
|
(1.3) | Other Expense, Net | ||||||||||||
Interest Rate Swap Agreements
|
1.4 | Interest Expense, Net | ||||||||||||
(1.7) | Total before Tax | |||||||||||||
0.3 | Tax Expense | |||||||||||||
$ | (1.4) | Net of Tax | ||||||||||||
Amortization of Defined Benefit Pension Plans:
|
||||||||||||||
Prior Service Costs | $ | 0.2 |
(a)
|
|||||||||||
Actuarial Losses | 49.2 |
(a)
|
||||||||||||
49.4 | Total before Tax | |||||||||||||
(9.8) | Tax Benefit | |||||||||||||
$ | 39.6 | Net of Tax | ||||||||||||
Amortization of Postretirement Benefit Plans:
|
||||||||||||||
Prior Service Credits | $ | (0.3) |
(a)
|
|||||||||||
Actuarial Gains | (2.3) |
(a)
|
||||||||||||
(2.6) | Total before Tax | |||||||||||||
0.5 | Tax Expense | |||||||||||||
$ | (2.1) | Net of Tax | ||||||||||||
Total Reclassifications for the Period
|
$ | 36.1 |
In millions | Location in Statement of Operations | December 31, 2019 | ||||||
Severance costs and other (a)
|
Business Combinations, Shutdown and Other Special Charges and Gain on Sale of Assets, Net
|
$ | 7.7 | |||||
Accelerated depreciation | Cost of Sales | 4.7 | ||||||
Inventory and asset write-offs |
Business Combinations, Shutdown and Other Special Charges and Gain on Sale of Assets, Net
|
2.5 | ||||||
Total | $ | 14.9 |
In millions | Total | |||||||
Balance at December 31, 2018 | $ | — | ||||||
Costs incurred | 7.7 | |||||||
Payments | (0.6) | |||||||
Balance at December 31, 2019 | $ | 7.1 |
Goodwill Impairment | |||||
Description of the Matter |
On December 31, 2019, the Company’s aggregate goodwill balance was $1.5 billion. As explained in Note 1 to the consolidated financial statements, the Company tests goodwill for impairment annually as of October 1, and whenever events or changes in circumstances indicate that the estimated fair value of a reporting unit may no longer exceed the carrying amount. The evaluation of goodwill impairment involves the comparison of the fair value of each reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions.
Auditing the goodwill impairment analysis was complex and highly judgmental due to the significant estimation required to determine the fair value of the reporting units. In particular, the fair value estimates were sensitive to significant assumptions, such as revenue growth rates, weighted average cost of capital (“WACC”) rates, reporting unit operating margins, and terminal year multiples of EBITDA, which are affected by expectations about future market or economic conditions.
|
||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process, including controls over management’s review of the significant assumptions described above. For example, we tested controls over management’s review of the estimation of the reporting units’ respective fair value, including management’s review of the significant inputs to the fair value model, the data utilized within the fair value model, the mathematical accuracy of the valuation models, as well as the reconciliation of the aggregate estimated fair value of the reporting units to the market capitalization of the Company.
To test the estimated fair value of the Company’s reporting units, our audit procedures included, among others, testing the methodologies and significant assumptions discussed above and the underlying historical sales and cost data, business plans, as well as the appropriateness of comparable companies used by the Company in its analyses. We involved our valuation specialists to assist in our evaluation of the Company’s WACC rates applied to the fair value calculations and to independently recalculate WACC rates for the respective reporting units. As part of this assessment, we compared the WACC rates to rates for hypothetical market participants based on the capital structure of the reporting units and Company and its related peer group. We evaluated whether management’s methodology for determining the WACC rates reflected the risk associated with the forecasted cash flows of the reporting units. To test the assumed EBITDA multiple applied in the Company’s calculations, we involved our valuation specialists to assist in analyzing recent transactions in the market and current peer group trading multiples that would be indicative of the respective EBITDA multiple utilized in the calculation of fair value for the identified reporting units. We compared forecasts to business plans and previous forecasts to actual results to assess the reasonableness of the projected cash flows of each reporting unit. We also evaluated sensitivity analyses of the significant assumptions described above to assess the changes in the fair value of the reporting units that would result from changes in the key assumptions. In addition, we tested management’s reconciliation of the estimated fair value of the reporting units to the market capitalization of the Company.
|
Exhibit
Number
|
Description | ||||
2.1 | |||||
3.1 | |||||
3.2 | |||||
3.3 | |||||
3.4 | |||||
3.5 | |||||
4.1 | |||||
4.2 | |||||
4.3 |
4.4 | |||||
4.5 | |||||
4.6 | |||||
4.7 | |||||
4.8 | |||||
4.9 |
Third Supplemental Indenture dated as of June 25, 2019, by and among Graphic Packaging International, LLC, the guarantors listed therein and U.S. Bank, National Association. Filed as Exhibit 4.2 to Graphic Packaging Holding Company and Graphic Packaging International, LLC's current report on Form 8-K filed on June 25, 2019 and incorporated herein by reference.
|
||||
10.1* |
GPI U.S. Consolidated Pension Plan Master Document as amended and restated, effective January 1, 2017. Filed as exhibit 10.1 to the Registrant's Annual Report on Form 10-K filed on February 8, 2017 and incorporated herein by reference.
|
||||
10.2* | |||||
10.3* | |||||
10.4* | |||||
10.5* | |||||
10.6* | |||||
10.7* | |||||
10.8* | |||||
10.9* | |||||
10.10 | |||||
10.11* | |||||
10.12* |
10.13 | |||||
10.14* | |||||
10.15* | |||||
10.16 | |||||
10.17 |
Second Amendment to Master Services Agreement effective as of August 1, 2012 by and between Graphic Packaging International, Inc. and Dell Marketing L.P. (as assignee of Perot Systems Corporation). Filed as Exhibit 10.30 to the Registrant's Annual Report on Form 10-K filed on February 12, 2016 and incorporated herein by reference.
|
||||
10.18* | |||||
10.19* | |||||
10.20* | |||||
10.21* | |||||
10.22* | |||||
10.23* | |||||
10.24 | |||||
10.25 | |||||
10.26 | |||||
10.27* | |||||
10.28* | |||||
10.29* | |||||
10.30 |
10.31 | |||||
10.32 | |||||
10.33 | |||||
10.34 | |||||
10.35 | |||||
10.36 | |||||
10.37* | |||||
10.38* | |||||
10.39* | |||||
10.40* |
Seventh Amendment to the GPI Savings Plan effective as of January 1 2018. Filed as Exhibit 10.54 to the Registrant's Annual Report on Form 10-K filed on February 7, 2018 and incorporated herein by reference.
|
||||
10.41* |
Eighth Amendment to the GPI Savings Plan effective as of January 1, 2018. Filed as Exhibit 10.55 to the Registrant's Annual Report on Form 10-K filed on February 7, 2018 and incorporated herein by reference.
|
||||
10.42* | |||||
10.43* | |||||
10.44* | |||||
10.45 | |||||
14.1 | |||||
21.1 | |||||
23.1 | |||||
24.1 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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 | ||||
104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101). |
/s/ Stephen R. Scherger |
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
February 10, 2020 | ||||||
Stephen R. Scherger | ||||||||
/s/ Michael P. Doss |
President and Chief Executive Officer
(Principal Executive Officer) |
February 10, 2020 | ||||||
Michael P. Doss | ||||||||
/s/ Stephen R. Scherger |
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
February 10, 2020 | ||||||
Stephen R. Scherger | ||||||||
/s/ Charles D. Lischer |
Senior Vice President and Chief Accounting Officer
(Principal Accounting Officer) |
February 10, 2020 | ||||||
Charles D. Lischer |
Signatures | Title | Date | ||||||
/s/ Laurie Brlas | Director | February 10, 2020 | ||||||
Laurie Brlas | ||||||||
/s/ David D. Campbell | Director | February 10, 2020 | ||||||
David D. Campbell | ||||||||
/s/ Paul D. Carrico | Director | February 10, 2020 | ||||||
Paul D. Carrico | ||||||||
/s/ Michael P. Doss | Director, President and Chief Executive Officer | February 10, 2020 | ||||||
Michael P. Doss | ||||||||
/s/ Robert A. Hagemann | Director | February 10, 2020 | ||||||
Robert A. Hagemann | ||||||||
/s/ Philip R. Martens | Chairman of the Board | February 10, 2020 | ||||||
Philip R. Martens | ||||||||
/s/ Dean A. Scarborough | Director | February 10, 2020 | ||||||
Dean A. Scarborough | ||||||||
/s/ Larry M. Venturelli | Director | February 10, 2020 | ||||||
Larry M. Venturelli | ||||||||
/s/ Lynn A. Wentworth | Director | February 10, 2020 | ||||||
Lynn A. Wentworth | ||||||||
By: | /s/ Stephen R. Scherger | ||||
Stephen R. Scherger | |||||
By: | /s/ Stacey Panayiotou | ||||
Stacey Panayiotou | |||||
By: | /s/ Brad Ankerholz | ||||
Brad Ankerholz | |||||
By: | /s/ Debbie Frank | ||||
Debbie Frank | |||||
By: | /s/ Brian A. Wilson | ||||
Brian A. Wilson |
Subsidiary Name |
|
Jurisdiction of Incorporation | ||||||
Altivity Packaging Grupo, S. de R.L. de C.V. |
|
Mexico | ||||||
Altivity Packaging Servicios, S. de R.L. de C.V. |
|
Mexico | ||||||
Bond Project Holdings, LLC |
|
Delaware | ||||||
Field Container Queretaro (USA), L.L.C. |
|
Delaware | ||||||
Gbox SA de C.V. |
|
Mexico | ||||||
Golden Equities, LLC |
|
Colorado | ||||||
Golden Technologies Company, LLC |
|
Colorado | ||||||
GPI Funding LLC
|
|
Delaware
|
||||||
GPI Funding II LLC |
|
Delaware | ||||||
GPI Holding I, Inc. |
|
Delaware | ||||||
GPI Holding II, Inc. |
|
Delaware | ||||||
GPI Holding III, LLC |
|
Delaware | ||||||
GPI Midwest, LLC |
|
Delaware | ||||||
GPI Project, LLC |
|
Delaware | ||||||
GPI Netherlands Finance B.V. |
|
Netherlands | ||||||
GPI Scotland Finance LP |
|
UK | ||||||
GPI Scotland Limited |
|
UK | ||||||
Graphic Packaging Flexible Canada ULC |
|
Canada | ||||||
Graphic Packaging Flexible Holdings, LLC |
|
Delaware | ||||||
Graphic Packaging International (Shanghai) Co., Ltd. |
|
China | ||||||
Graphic Packaging International Australia Converting Limited |
|
Australia | ||||||
Graphic Packaging International Australia Pty Limited |
|
Australia | ||||||
Graphic Packaging International Bardon Limited |
|
UK | ||||||
Graphic Packaging International Box Holdings Limited |
|
UK | ||||||
Graphic Packaging International Bremen GmbH |
|
Germany | ||||||
Graphic Packaging International Canada Corporation |
|
Canada | ||||||
Graphic Packaging International Canada, ULC |
|
Canada | ||||||
Graphic Packaging International Cartons Santander, S.A. |
|
Spain | ||||||
Graphic Packaging International Distribution Limited |
|
UK | ||||||
Graphic Packaging International do Brasil - Embalagens Ltda. |
|
Brazil | ||||||
Graphic Packaging International Enterprises, LLC |
|
Delaware | ||||||
Graphic Packaging International Europe Carton Design Limited |
|
UK | ||||||
Graphic Packaging International Europe Cartons B.V. |
|
Netherlands | ||||||
Graphic Packaging International Europe Finance & Real Estate B.V. |
|
Netherlands | ||||||
Graphic Packaging International Europe Holdings B.V. |
|
Netherlands | ||||||
Graphic Packaging International Europe Netherlands B.V. |
|
Netherlands | ||||||
Graphic Packaging International Europe Netherlands Holdings B.V. |
|
Netherlands | ||||||
Graphic Packaging International Europe N.V. |
|
Belgium | ||||||
Graphic Packaging International Europe Spain Holding, S.A. |
|
Spain | ||||||
Graphic Packaging International Europe UK Holdings Limited |
|
UK | ||||||
Graphic Packaging International Europe UK Limited |
|
UK | ||||||
Graphic Packaging International Foodservice Europe Limited |
|
UK | ||||||
Graphic Packaging International France |
|
France | ||||||
Graphic Packaging International Gateshead Limited |
|
UK | ||||||
Graphic Packaging International Holding Company, LLC |
|
Delaware | ||||||
Graphic Packaging International Holdings Mexico, S. de R.L. de C.V. |
|
Mexico | ||||||
Graphic Packaging International Ireland Designated Activity Company |
|
Ireland | ||||||
Graphic Packaging International Japan Ltd. |
|
Japan | ||||||
Graphic Packaging International Limited |
|
UK | ||||||
Graphic Packaging International, LLC |
|
Delaware | ||||||
Graphic Packaging International Mexicana, S. de R.L. de C.V. |
|
Mexico | ||||||
Graphic Packaging International New Albany, LLC |
|
Delaware |
Graphic Packaging International New Zealand Limited |
|
New Zealand | ||||||
Graphic Packaging International Operadora de Mexico, S. de R.L. de C.V. |
|
Mexico | ||||||
Graphic Packaging International Partners, LLC |
|
Delaware | ||||||
Graphic Packaging International Philanthropic Fund |
|
Delaware | ||||||
Graphic Packaging International S.p.A. |
|
Italy | ||||||
Graphic Packaging International Servicios, S. de R.L. de C.V. |
|
Mexico | ||||||
Graphic Packaging International Spain, S.A. |
|
Spain | ||||||
Graphic Packaging International UK Finance Limited |
|
UK | ||||||
Graphic Packaging International US Finance LLC |
|
Delaware | ||||||
Graphic Packaging UK Pension Trustee Company Ltd. |
|
UK | ||||||
Handschy Holdings, LLC |
|
Delaware | ||||||
Handschy Industries, LLC |
|
Delaware | ||||||
New Materials Limited |
|
UK | ||||||
Print Design & Graphics Limited |
|
UK | ||||||
PrinTech Systems B.V. |
|
Netherlands | ||||||
Rengo Riverwood Packaging, Limited |
|
Japan | ||||||
Riverdale Industries, LLC |
|
Delaware | ||||||
Riverwood International Pension Trustee Company Ltd. |
|
UK | ||||||
Shoo 553 Limited |
|
UK | ||||||
Spur Development, LLC |
|
Delaware |
/s/ Michael P. Doss | ||||||||||||||
Michael P. Doss, | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
February 10, 2020 |
/s/ Stephen R. Scherger | ||||||||||||||
Stephen R Scherger | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) | ||||||||||||||
February 10, 2020 |
/s/ Michael P. Doss | ||||||||
Name: Michael P. Doss, | ||||||||
Title: President and Chief Executive Officer | ||||||||
February 10, 2020 |
/s/ Stephen R. Scherger | ||||||||
Name: Stephen R. Scherger | ||||||||
Title: Executive Vice President and Chief Financial Officer | ||||||||
February 10, 2020 |