Crown Holdings, Inc. (CCK)

United States Securities and Exchange Commission, Washington, DC, 20549 Form 10-K (Mark One)[X]
Annual Report submitted under Section 13 or 15 (d)
1934 Securities Trading Act for the fiscal year ended December 31, 2018 []
Transition reports submitted under sections 13 or 15 (d)
Securities Exchange Act No. 1934th on the transition period from the file of the _ sub-committee 000-
50189 Crown Holdings Limited(
The exact name of the registrant specified in the articles of association)
Pennsylvania 75-3099507 (
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
770 Yardley town line, PA 19067-4232 (
Main executive office address)(Zip Code)
The telephone number of the registrant, including the area code: 215-698-
5100 securities registered under section 12th (b)
Title of the act: name of each class of each exchange registered with common stock of $5.
00 face value New York Stock Exchange expires 8% New York Stock Exchange expires 2026 2% New York Stock Exchange expires 2096 New York Stock Exchange securities (g)
The bill: None (Title of Class)
If the registrant is a well, indicate it with a check mark
Well-known experienced issuers as defined in Rule 405 of the Securities Act. Yes[X]No []
Indicate by check mark whether the registrant does not need to submit a report under Section 13 or section 15 (d)
The Trading Act. Yes []No[X]
Indicate by check mark whether the registrant (1)
All reports requested in Section 13 or 15 have been submitted (d)
Securities Trading Act of 1934 within the first 12 months (
Or a short period of time required for the registrant to submit such reports), and (2)
For the past 90 days, it has been subject to such filing requirements. Yes[X]No[]
Indicate by check mark whether the registrant has submitted each Interactive Data File as required by S-regulation 405th electronicallyT (§ 232.
This Chapter 405)
Within the first 12 months (
Or a shorter period of time when the registrant is required to submit such documents). Yes[X]No[]
If the declaration of arrears is disclosed under S-regulation 405th, please indicate by check mark
To the knowledge of the registrant, K is not included in the final proxy or information statement referenced in Part 3 of this Form 10 and will not be included in it
K or any amendments to this form 10K. [X]
Indicate by check mark whether the registrant is a large accelerated file manager, a non-accelerated file manager
A smaller reporting company, or an emerging growth company.
See the definition of \"large accelerated reporting companies\", \"Small reporting companies\" and \"emerging growth companies\" in rule 12b
2 of the Trading Act.
Big acceleration document [X]
Accelerated File []Non-
Accelerating film []
Small report Company []
Emerging growth companies []
Indicate whether the registrant is a shell company by check mark (
Defined in Rule 12b-
2 parts of the transaction law). Yes[]No [X]
As of June 30, 2018, 135,174,989 shares of the registrant\'s common stock (excluding shares held by the Treasury) have been issued and not issued, and the total market value of such shares held by non-registrants
The registrant\'s affiliates on that day are based on the closing price of $6,050,432,508 on the New York Stock Exchange.
As of February 28, 2019, 135,338,085 shares of the common stock of registered persons have been issued and not issued.
Documents incorporated in the reference documents section, which incorporate the proxy statement for the annual meeting of shareholders to be held on April 25, 20192018 FORM 10-
K annual report Catalogue Part 1 Project 1 Business 1 project 1a Risk Factor 7 project 1b unresolved staff comments 21 Project 2 property 21 project 3 legal action 23 Project 4 mine safety disclosure equity, related shareholder matters and issuer\'s purchase of equity securities 24 items 6 Selected Financial Data 26 items 7 Management\'s Discussion and Analysis of financial status and operational results 27 items 7 quantitative and qualitative disclosure statements on market risks and supplementary data sub-item 9 changes and differences between accountants in accounting and financial disclosure 108 sub-item 9a control and procedures 108 sub-item 9b other information 109 sub-item 10 directors in Part III, executives and corporate governance 109 11 executive compensation 109 12 securities ownership 110 certain relationships and related party transactions, independent directors 110 item 14 main accounting expenses and services 110 Part IV item 15 exhibits and financial statements schedule 111 item 16 Form 10-
K summary 117 signature 118 Crown Holdings LimitedPART I ITEM1.
Business Crown Holdings Limited(
\"Company\" or \"registrant \")(
\"Company\" should include references to the company and its consolidated subsidiaries if the context requires)
It\'s a company in Pennsylvania.
The company is a global leader in the design, manufacture and sales of packaging products and equipment for consumer and industrial products.
The company\'s consumer goods packaging includes steel cans and aluminum cans for food, beverages, household and other consumer goods, glass bottles for beverage products, metal vacuum caps and steel crowns sold to soft drinks, food, citrus, brewing, household products, personal care and other various industries through the company\'s sales agency.
The company\'s industrial product packaging includes steel and plastic strap consumables and equipment, paper-
Protective packaging and plastic film consumables and equipment for metal, food and beverage, construction, agriculture, corrugated and general industries.
As of December 31, 2018, the company operates 241 factories and sales and service facilities in 47 countries, with approximately 33,000 employees.
The Company\'s consolidated net sales in 2018 were $11.
2 billion, 73% business from outside the United StatesS.
The company\'s business is usually organized by product line and geographical location within the four departments of America, Europe, Asia Pacific and transportation packaging.
For more information about the company Department and each department that can report to the department, see below.
Non-Corporate
The part that can be reported includes its North American Food Tank business, its European aerosol and promotional packaging business, its North American aerosol tank business and its tool and equipment business in the United StatesS. and U. K.
Other financial information about the business unit of the company is contained in the \"Management\'s Discussion and Analysis of the financial position and results of operations\" of the current year report and in note X to the consolidated financial statements.
The American division includes operations in the United States. S.
Brazil, Canada, the Caribbean, Colombia and Mexico.
These businesses produce beverage, food and gas mist cans and ends, glass bottles, professional packaging, metal vacuum caps, steel caps and caps.
As of December 31, 2018, the division operated 48 factories in seven countries with approximately 7,500 employees.
Net sales in the Americas division were $4 in 2018. 2 billion.
The US beverage department produces aluminum beverage cans and ends, glass bottles, steel crowns and aluminum caps.
Manufacturing facilities are located in the United States. S.
Brazil, Canada, Colombia and Mexico.
Net sales of American beverages in 2018 were $3.
3 billion and division Income (
According to the definition of note X to consolidated financial statements)
$0. 454 billion.
The European division includes operations in Europe, the Middle East and Africa.
These businesses produce beverage, food and gas mist cans and ends, promotional packaging and metal vacuum caps.
As of December 31, 2018, the division operated 61 factories in 22 countries with approximately 11,500 employees.
Net sales in 2018 were $3. 7 billion.
The European beverage sector produces steel and aluminum beverage cans in Europe, the Middle East and North Africa.
Net sales of European beverages in 2018 were $1.
5 billion and division Income (
According to the definition of note X to consolidated financial statements)
$0. 193 billion.
Crown Holdings Limited
The European food sector produces steel and aluminum food cans and ends in Europe, Africa and the Middle East, as well as metal vacuum closures.
Net food sales in Europe were $2 in 2018.
Billion and division Income (
According to the definition of note X to consolidated financial statements)
$0. 257 billion.
The Asia-Pacific region is a reportable sector that mainly includes beverage cans in Cambodia, China, Indonesia, Malaysia, Myanmar and Singapore. Thailand and Vietnam, including the Company\'s
Mainly food cans and special packaging.
As of December 31, 2018, the department had operated 30 factories in eight countries with approximately 4,500 employees.
Net sales in the Asia-Pacific region in 2018 were $1.
3 billion and division Income (
According to the definition of note X to consolidated financial statements)
$0. 186 billion.
The transportation and packaging department of the company is a reporting department that includes the company\'s industrial and protective solutions as well as the equipment and tools business.
Industrial Solutions include steel strap, plastic strap, industrial film and other related products for a wide range of industries such as steel, wood, brick/block, corrugated carton, etc, food and beverages, agricultural products and other commodities.
Protection Solutions include transportation protection products such as airbags, edge protectors and cellular products that help prevent movement and/or damage of a wide range of industrial and consumer goods during transportation.
Equipment and tools include manual, semi-manual
It is mainly used for automatic and automatic equipment and tools for \"end of production line\" manufacturing applications, for the application of consumables such as straps and films.
In December 31, 2018, the department operated 99 factories in 23 countries including Belgium, Germany, India, Sweden, Switzerland and the United States. S.
As at December 31, 2018, there were approximately 9,000 employees in the division.
Net sales in the transportation and packaging department were $1.
8 billion and division Income (
According to the definition of note X to consolidated financial statements)
The period from April 3-20, 2018 to December 31 was $0. 255 billion.
Products beverage cans and glass bottles companies supply beverage cans and ends and other packaged products to various beverage and beer companies including Ann and users
Coca-Budweiser
Coke, Dr. Craig pepper, Heineken, Molson, Pepsi-
Among other things, there are Coke and Refresco.
The company\'s beverage cans business is built around local, regional and global markets, which helps to improve the company\'s understanding of global customer and consumer expectations.
The company\'s glass bottle business is based in Mexico and serves customers in the local market.
The beverage market is full of vitality and fierce competition. all packaging manufacturers work together with customers to continuously meet the needs of consumers. changing needs.
The company competes by providing customers with a broad range of market knowledge, resources at all levels of its global organization, and extensive R & D capabilities that enable the company to deliver innovative products to its customers.
The company meets the customer\'s beverage packaging needs in a series of two ways
A drink can, end and metal cap.
Innovation includes supermarkets®And end 360™Drinks can end and vary in size.
Size changes include ultra-thin, stylish cans for partial control, low-calorie products or other differentiated products, and larger sizes for mass consumption.
The company is expected to continue to increase production capacity in many growth markets around the world.
The manufacture of beverage cans and glass bottles is capital intensive and requires significant investment in tools and machinery.
The company seeks to effectively manage its investment capital and continues its efforts to reduce the metal content of cans and reduce
Metal costs including water and energy use, while improving the production process.
2 Crown Holdings Limited
The company produces a variety of food cans and ends, including two-One, three.
Pack cans of all shapes and sizes and sell food cans to food marketers such as Abbott Labs, bondoule, Morgan Foods, Nestle, Prince group and Simons foods.
The company provides a variety of metal vacuum sealing and sealing equipment solutions for leading marketers such as Abbott Laboratories, Danone, H. J.
A network of metal vacuum closed factories from around the world, such as Heinz, Nestle and Unilever.
The company, while working closely with customers, retailers and manufacturers of glass and plastic containers, provides overall packaging solutions including metal and composite closure, capping systems and services to develop innovative
The technology used to produce food cans includes three
Two welding pieces
Painted and wallironed and two-
The work of drawing and redrawing.
The company also launched™A range of gourmet dishes including Easylift™Full-hole steel food, PeelSeam™PeelFit™Laminated end of flexible aluminum foil.
The company provides expertise in closed design and decoration, from the quality of closed printing in up to nine colors to the Interiorthe-
Bottle Cap printing to provide customers with new promotion possibilities to better protect the product through ideal sealing™Track™And Super™.
The company\'s commitment to innovation has led to the development of packaging materials, surface finish, tank forming, flat printing, filling, dry distillation, sealing and opening technology and environmental performance.
The company produces easy opening, vacuum and conventional end for various heating
Processed and dried foods including fruits and vegetables, meat and seafood, soups, ready-to-eat foods
Cooked meals, baby formula, coffee and pet food.
Transport packaging company\'s products are used to pack, unify and protect goods in the process of manufacturing, transportation and warehousing and sell them all over the world
Well-known brands such as Signode, Strapex, orgap ack, shipper airbags, Angleboard and MIMA.
The company serves a wide range of end markets including metals, food and beverages, construction, agriculture, corrugated and general industries.
The company\'s long operating history has led to a large number of equipment that drives recurring revenue by selling consumables, parts and service products and future equipment replacement sales.
The company\'s customer concentration is low.
Customers of the air mist tanks and terminals of the gas mist tank company include manufacturers of personal care, food, home and industrial products, including Friesland Campina, P & G, SC Johnson and Unilever
Can can business competition is fierce.
The company competes by providing customers with a wide range of products such as multiple sizes, multiple color schemes and shape packaging.
The company\'s promotional and professional packaging business is mainly located in Europe and Asia.
The company produces a wide variety of promotional and professional packaging containers with many variations of covers and covers.
The company\'s customers include Britvic and Nestle.
Sales and Distribution global marketers qualify suppliers based on their ability to deliver global services, innovative designs and technologies at cost
Effective way.
With its global reach, the company markets and sells products to customers through its own sales and marketing staff.
In some cases, contracts with customers are negotiated centrally, but the products are ordered and distributed directly through the company\'s local facilities.
The company\'s facilities are usually located near its main customers.
To develop new business and extend the duration of existing contracts, the company works closely with customers.
Many customers provide the company with quarterly or annual estimates of product requirements, as well as the relevant quantities promised on a regular basis.
These estimates help companies manage the production and control of working capital.
In order to meet the requirements of customers, the company arranges production.
Due to the short production time of the company\'s products, the backlog of customer orders related to the overall sales is not significant.
3 Crown Holdings Limited
The seasonal food packaging business is somewhat seasonal and tends to be the slowest in the first quarter, as the autumn packaging period in the northern hemisphere is over and new crops are not yet grown.
In the third quarter, the industry has generally entered its busiest period, with most fruits and vegetables harvested and canned immediately.
Due to this seasonality, inventory levels increased in the first half of this year to meet peak demand in the second and third quarters.
Weather represents a huge uncertainty in food production and is a major factor in determining the demand for food cans for any year.
Generally speaking, beverage products consume more in warmer months of the year, and sales are generally higher in the second and third quarters of the calendar year.
Other businesses of the company are often not severely affected by seasonal changes.
Most of the consumer goods packaging products of competitive companies are sold in competitive markets, mainly based on price, quality, service and performance.
The company competes with other packaging manufacturers as well as packing, food processors and Packers, some of whom manufacture containers for their own use and sell them to others.
The company\'s competitors include, but are not limited to, Ardagh Group, Ball Corporation, BWAY Corporation, Can-Pack S. A.
Metal containers and Silgan Holdings
The transportation and packaging department also faces fierce competition in the manufacture, distribution and sales of products in many different sizes of regions and local competitors.
The division uses its global scale, broad portfolio and established brand reputation to differentiate itself from its competitors.
The products of the department compete to a certain extent with various other packaging materials, including other products made of paper, plastic, wood and various types of metal.
The largest customers of the customer company include many leading manufacturers and marketers of packaged consumer goods in the world.
The integration trend of beverage and food marketers has led to the concentration of customer groups.
The company accounts for about 29% of its net sales of 2018 of the world\'s ten largest customers.
For each year between 2016 and 2018, none of the clients accounted for more than 10% of the company\'s net sales.
In addition to the shipping packaging section, each operating department has a major customer, and the loss of one or more of the major customers may have a significant adverse effect on a single department or the company as a whole.
The main customers include the customers under the above title \"products.
In addition to Coca-Cola salesCola and Pepsi-
Coca-Cola, the company also offers independent licenses for Coca-ColaCola and Pepsi-Cola.
The main research, development and engineering of the company (\"RD&E\")
The Consumer Packaging Product Center is located in Alsip, Illinois, and Wantage, UK.
The company uses its centralized R & D and electronic capabilities to advance and deliver technology for the company\'s global packaging activities (1)
Promoting the development of value
The metal packaging system has been added to the customer ,(2)design cost-
Efficient manufacturing processes, systems, materials and materials
Efficient container design to promote the sustainability of metal packaging ,(3)
Provide continuous quality and/or production efficiency improvements in its manufacturing facilities ,(4)
Promote customer and supplier relationships and (5)provide value-
Engineering services and technical support have been added.
These capacity promotion (1)
Identify new and/or expanded market opportunities by working directly with customers to develop new packaging products or by applying new technologies to enhance existing packaging products (
For example: the creation of new packaging shapes, novel decoration methods, or the addition of digital content through unique code)
Merger of and/or consumers
Value features (
Improved openness and/or ease of use, for example)and (2)
Reduce manufacturing costs by reducing the material content of the company\'s products (
Retain the necessary performance features at the same time)
Reduce damage and improve operational efficiency of production facilities.
The company has a large number of patents and other intellectual property rights (\"IP\")
In the field of metal packaging systems, strategic partnerships are sought to expand its intellectual property rights in existing and emerging markets.
As a result, the company has obtained intellectual property licensing in the geographical area where the company currently has a limited market share.
Existing technologies such as SuperEnd®Beverage end, 360 end™Drink end, simple-
Traffic™Eole drinks™Simple-
In Australia, Japan and Africa, open food terminals and canned molding have been licensed to provide Crown brand building innovation opportunities for customers around the world.
4 Crown Holdings Limited
The transportation and packaging department has distributed R & D and electronic models, and is known throughout the market for its ability to drive product innovation and leadership of new technologies.
The department focuses on market-driven innovation and has a long history of product and service solutions that solve problems and create value for customers.
The various business units of the department are mainly responsible for designing and executing their own R & D projects, and the development process of the department is composed of customers.
Facing \"outside\"in\" approach.
The department works with customers to take advantage of strict
Steps in the product development process to ensure that they shape the final product for customers and the wider market.
The record of shipping packaging in new product innovation is largely due to the success of this model.
The transportation and packaging department has been the industry leader in industrial packaging innovation in the past 100, and they launched the first product with packaging (1913)
The first complete
Automatic Binding machine (1946)
The industry\'s first plastic strap hand tool for battery operation (1995)
Recently, the industry\'s first battery
Manual tools (2013).
At the heart of its intellectual property strategy is obtaining high-quality patents covering key products and technologies in line with its business objectives.
The transportation and packaging department has expanded its global patent portfolio to more than 380 US patent or pending patent applications and more than 1,300 foreign or pending patent applications.
The portfolio covers about 400 custom technologies, covering different business platforms and different countries operating.
Since the beginning of 2010, the department has continued to expand its patent base and submitted 170 new patent applications.
The company spent $51 million in 2018, $39 million in 2017, and $41 million in research and development and electronics in 2016.
Certain activities in these activities are expected to improve and expand the company\'s product line in the future.
These expenditures include projects that improve manufacturing efficiency, reduce unit costs, and develop new and improved values --
The packaging system was added.
Materials and supplier companies use a variety of raw materials in manufacturing operations, mainly aluminum and steel.
The transportation and packaging department also uses materials from crude oil and natural gas such as polyethylene and polypropylene.
In general, these raw materials are purchased at very competitive prices.
Sensitive markets have historically shown the cyclical nature of prices and demand.
These and other materials used in the production process have historically been able to obtain sufficient supply from multiple sources.
The company has reached an agreement on what it considers sufficient supply of raw materials.
However, due to shortages caused by excessive demand, weather or other factors, there may not be sufficient quantities available in the future, including supply disruptions caused by transportation of raw materials or delays in production.
Some raw materials are in short supply from time to time, but so far, these shortages have not had a significant impact on the company\'s operations.
In 2018, excluding depreciation and amortization, the consumption of steel and aluminum accounted for 21% and 36% of the combined cost of the products sold.
Due to the importance of these raw materials to the total cost of product sales, raw material efficiency is a key cost component of manufacturing products.
Among other risk factors, supplier consolidation, change in ownership, government regulations, political unrest, and increased demand for raw materials in packaging and other industries, it may lead to uncertainty about the possibility that the company will be able to obtain these raw materials in the future and the price level.
In addition, prices of aluminum and steel may fluctuate significantly.
The company\'s raw material supply contract varies depending on the terms and duration, the steel contract usually lasts for one year, the price is fixed or the date of re-pricing is set, and the aluminum contract is usually more
Duration of price fluctuations based on aluminum ingot cost.
The company usually tries to mitigate its steel and aluminum price risk by matching its purchase obligations with its sales agreement;
However, there is no guarantee that the company will be able to mitigate this risk completely.
The company also uses commodity and foreign currency forwards to try to manage its exposure to fluctuations in aluminum prices.
There is no guarantee that the company can completely restore the impact of rising aluminum steel prices from customers, nor that the use of derivatives will effectively manage the company\'s risk price fluctuations.
In addition, if the company is unable to purchase steel and aluminum for a considerable period of time, its operations will be interrupted and if the company cannot fully recover the higher steel and aluminum costs, its financial results may be adversely affected.
Other commodities due to continued global supply and demand pressures-
Related costs affecting the Company\'s business may also increase, including utilities and freight chargesrelated costs.
To recover these costs, the company will try to increase the price of its products accordingly.
In response to fluctuations in raw material prices, the ongoing productivity and cost reduction efforts in recent years have focused on improving the cost management of raw materials.
5 Crown Holdings Limited
The company\'s production facilities depend to varying degrees on the supply of processing energy such as water and natural gas and electricity.
Due to external factors, some of these factors may be difficult or impossible to obtain on acceptable terms, which may increase the cost of the company or interrupt its business.
Aluminum and steel, in terms of their nature, can be recycled efficiently and can be reused to form a new consumer package that is reduced or not reduced in terms of performance, quality or safety.
By recycling these metals, you can save a lot of energy and avoid a lot of water and carbon dioxide emissions.
Sustainable development and environmental, health and safety matters the operation of the company is subject to many laws and regulations concerning environmental protection, waste disposal, discharge into water and discharge into the atmosphere, protect the health and safety of employees.
Future regulations may impose stricter environmental requirements on the packaging industry and may require additional capital investment.
Expected future restrictions on the use of certain coatings in certain jurisdictions may require companies to use additional control equipment or process improvements.
The company has sustainable development policies and environmental protection policies.
Environmental awareness is a key component of sustainability.
Environmental considerations are one of the criteria for companies to evaluate projects, products, processes, and purchases.
The company is committed to continuous improvement in product design and manufacturing practices, providing the best results for both human and natural environments, both now and in the future.
By reducing each
The number of units of raw materials used by the company in manufacturing its products can significantly reduce the energy, water and other resources needed to manufacture metal containers and related emissions.
The company\'s goal is to continue to improve this process in the manufacturing process to ensure that the best service is provided to consumers and the environment by using metal packaging.
The company is also committed to providing employees with a safe working environment through programs that emphasize safety awareness and eliminate injuries and accidents.
There is no guarantee that current or future environmental laws or liabilities will not have a significant impact on the company\'s financial position, liquidity or results of operations.
The discussion of corporate environmental matters is included in the \"Management\'s Discussion and Analysis of financial status and operational results\" under the title of this year\'s report \"environmental matters\", under note P to the consolidated financial statements.
Liquidity companies typically use cash in the first nine months of the year to meet seasonal liquidity needs.
The company\'s working capital needs are funded by operating cash flow, revolving credit facilities, and receivables securitization and factoring programs.
Additional information relating to corporate liquidity and capital resources is contained in note M to consolidated financial statements under the heading \"liquidity\" of this year\'s report, \"Management\'s Discussion and Analysis of Financial Position and operational results \"next.
As of December 31, 2018, the Company had approximately 33,000 employees.
Collective bargaining agreements with different deadlines and due dates cover about 17,000 employees.
The company expects that renegotiation of agreements due in 2018 will not have a significant adverse effect on its consolidated operating results, financial position or cash flow.
The website address of the company is www. crowncork. com .
The information on the company\'s website is not incorporated by reference in the Annual Report of Form 10K.
Company Annual Report Form 10-
Quarterly Report on table 10
Q: Current Report of Form 8
K and all amendments to these reports submitted by the company to the United StatesS.
According to Article 13 of the Securities and Exchange Commission (a)and 15(d)
The revised Securities Trading Act of 1934, after documents are submitted or otherwise provided to them, is accessed free of charge through the company\'s website as soon as reasonably practicable, in the United StatesS.
Securities and Exchange Commission (\"SEC\").
The SEC maintains a website that contains reports, agency and information statements, as well as other information related to issuers, including companies, which are submitted electronically to the SEC.
The public can obtain any documents submitted by the company to the SEC.
The company\'s website provides the business conduct and ethics of the company, guidelines for corporate governance, and the Charter of the audit, remuneration, nomination and corporate governance committee.
These documents can also be printed to any shareholder who makes the request.
Amendments and exemptions to the business conduct and code of ethics required for disclosure under the applicable SEC rules will be disclosed on the company\'s website.
Crown Holdings LimitedITEM1A.
In addition to the factors discussed in this year\'s report and \"Management\'s Discussion and Analysis of Financial Position and operational results\", risk factors, \"The following are some of the important factors that may have a significant adverse impact on the company\'s business, financial position and operational results.
The company\'s international business generated about 73% of consolidated net sales in 2018, but faced various risks that could lead to a decline in its financial performance.
The company is an international company, and the risks associated with operating abroad may have a negative impact on the company\'s liquidity and net income.
As of 73%, the company\'s international business accounted for about 78% of its consolidated net sales in 2018,207 and 77% of its consolidated net sales in 2016.
In addition, the company\'s business strategy includes continuous expansion of international activities, including in developing markets and regions such as South America, Eastern Europe and Asia (Including India)
This could pose a greater risk of political or economic instability.
As of 35%, the company consolidated about 2018 of its net sales, and as of 38%, the company\'s combined net sales of about is generated outside the Western developed markets in Europe, the United States and Canada.
In addition, if the economic situation in Europe deteriorates, it may have a negative impact on the company\'s European business and the company\'s European customers and suppliers.
If further economic downturn in Europe ultimately leads to a sharp depreciation of the euro, the value of euro-denominated corporate financial assets will be greatly reduced when translated into US currencyS.
USD for financial reporting purposes.
Any of these circumstances may ultimately compromise the company\'s overall business, prospects, operating results, financial position and cash flow.
Emerging markets are the focus of the company\'s international growth strategy.
The nature of the development of these markets and the nature of the company\'s international operations are generally affected by various risks, including: restrictive trade policies of foreign governments;
Changes in product regulations or policies that are inconsistent with foreign institutions or governments;
Duties, taxes or government royalties, including collection or increase of withholding and other taxes on non-remittances and other paymentsU. S. subsidiaries;
Customs, import and export and other trade compliance regulations;
Exchange rate risk;
The collection of international accounts receivable is difficult, and the payment period may be longer;
Maintain increased costs for international manufacturing and marketing efforts; non-
Tariff barriers and increased tax rates;
Difficulties related to the deportation of cash generated or held abroad-
Effective ways and changes in tax laws
Difficulties in fulfilling contractual obligations and intellectual property rights and difficulties in protecting intellectual property rights or sensitive business and operational data or information technology systems;
Foreign Exchange Control;
Strikes across the country and regions;
Geographical, linguistic and cultural differences among people in different regions of the world;
High cost of social benefits of the labor force, including costs related to restructuring;
Political, social, legal and economic instability;
7 Crown Holdings Limited
Product boycott, including boycott related to multiple products of the company
National customers;
Customers, suppliers and investors pay attention to the business in the Middle East and other regions;
Collection of property free of charge or free of charge;
Impose restrictions on foreign currency exchange into USD or non-USD payment of dividends and other paymentsU. S. subsidiaries;
Vicious inflation and currency depreciation in certain foreign countries, where such currency depreciation may affect the amount of cash generated by their operations and thus the ability of companies to meet their obligations;
War, civil unrest, global or regional catastrophic events, natural disasters, including emerging markets, and acts of terrorism;
The geographical concentration of the company\'s factories and operations and the regional transfer of customer groups;
Pay regular attention to the health epidemic;
Managing the complexity of global business;
And comply with the applicable counter
Corruption or anti-corruptionbribery laws.
There is no guarantee that the deterioration of economic conditions in countries where the Company operates or may seek to operate in the future will not have a significant impact on the results of the company\'s operations.
The company is affected by exchange rate fluctuations, which may reduce its net sales and cash flow.
The company is at risk of foreign exchange fluctuations because a large part of its combined net sales, costs, assets and liabilities are denominated in currencies other than the United StatesS. dollar.
The company\'s international business accounted for approximately 73% of consolidated net sales as of 2018 and 78% of consolidated net sales as of 2017, as of 77%, the company consolidated 2016 of net sales.
Fluctuations in the exchange rate may increase the cost of its products, damage the purchasing power of its customers in different markets, and lead to significant competitive benefits for some of its competitors, these competitors pay an important part of their costs in other currencies, increase hedging costs, and limit their ability to hedge exchange rate risks.
In the consolidated financial statements, the company translated the financial results of the local currency into the US currency. S.
The US dollar is calculated based on the average exchange rate during the reporting period.
In strengthening AmericaS.
The US dollar, which reports a decrease in international income and income, will be converted into less US dollars by local currency. S. dollars.
On the contrary, the US economy is weakS.
The dollar will increase the dollar effectively
It is equivalent to the company\'s expenses and liabilities denominated in foreign currency.
See \"Management\'s Discussion and Analysis of the financial position and results of operations --
Working capital and capital resources
\"Market risk\" and \"quantitative and qualitative disclosure of market risk\" in this annual report \".
Although in some cases, the company may use financial instruments such as foreign currency forwards from time to reduce the risk of currency exchange rate fluctuations, it may not choose or have the ability to achieve vague restrictions, or, if it does implement vague language, there is no guarantee that these agreements will achieve the desired results. For the year-
As of December 31, 2018, one 0.
Changes in the average exchange rate of the euro will reduce net income by $22 million.
As the company seeks to expand its business globally, the company\'s growth opportunities may be more politically influenced, economic and social uncertainty and the continued and accelerated globalization of the business may significantly change the dynamics of the company\'s competition, customer base and product supply.
The company\'s efforts to develop its business depend to a large extent on access to the geographic market and the success of developing market share and profitability in geographic markets including but not limited to the Middle East, south America, Eastern Europe and Asia (Including India).
In some cases, countries in these regions have greater political and economic volatility compared to the rest of the Company\'s markets, are more vulnerable to disruptions in infrastructure and labor, and different local customers
Operating and seeking to expand operations in a number of different regions and countries, exposing companies to a variety of cultural customs, business practices and legal and regulatory requirements that may conflict with each other, including tariff and trade barriers, investment, property rights, taxes, return of income and management of advanced technology.
Such expansion efforts may also take advantage of the company\'s capital and other resources that can be invested in other areas.
Expanding business globally also increases the risk of currency fluctuations, which can have a significant impact on the company\'s financial results.
As these emerging geographic markets become more and more important to companies, their competitors are also seeking to expand their production capacity and sales in these markets, which may lead to overcapacity in the industry, thus adversely affecting the pricing, quantity and financial results of these markets.
Although the company is taking steps to adapt to these changing situations, the reputation and/or business results of the company may be negatively affected if these efforts are unsuccessful.
8 Crown Holdings Limited
The company may not be able to manage its expected growth and may be limited or inefficient due to unexpected acceleration and deceleration in customer demand.
Unexpected acceleration and deceleration of customer demand for the company\'s products may lead to restrictions or inefficiencies related to the company\'s manufacturing, sales staff, implementation of resources and administrative infrastructure, especially in emerging markets, the company is looking to expand production.
Such restrictions or inefficiencies may adversely affect the company due to delays, loss of potential product sales, or loss of current or potential customers due to discontent.
Similarly, excessive
Expansion, including excess capacity due to the expansion of the company\'s competitors, or expected investment in unrealized growth, or slower than the company\'s expected development, will damage the company\'s financial performance, resulting in excess capacity.
In order to effectively manage the company\'s expected growth in the future, the company must continue to improve its manufacturing capabilities and operations, its information technology infrastructure, and its financial and accounting systems and controls.
Organizational growth and scale
The increase in business could strain its existing management, business, finance and other resources.
The growth of the company requires a large amount of capital expenditure and may transfer financial resources from other projects, such as the development of new products or the enhancement of existing products or the reduction of the company\'s outstanding debts.
If the company\'s management is unable to effectively manage the company\'s growth, the growth of its expenses may exceed expectations, and its revenue growth may be slower than expected, it may not achieve R & D and production targets.
The company\'s failure to effectively manage its expected growth could have a significant impact on its business, results of operations or financial position.
If the price of raw materials or energy rises, the company\'s profits will decline and the price of the products cannot be increased, and if the company cannot obtain a sufficient amount of raw materials, the company\'s financial results may be adversely affected.
The company uses various raw materials for processing energy such as steel, aluminum, tin, water, natural gas and electricity, as well as materials derived from crude oil and natural gas, such as polyethylene and polypropylene resin, in its manufacturing business.
In the future, it may not be possible to obtain a sufficient amount of these raw materials, or only at a higher price.
The company\'s raw material supply contract varies depending on the terms and duration, the steel contract usually lasts for one year, the price is fixed, and the aluminum contract is usually more
Duration of price fluctuations based on aluminum ingot cost.
The supply of various raw materials and their prices depend on global and local supply and demand forces, government regulations (
Including tariffs and tariffs)
Production levels, resource availability, transport and other factors, including natural disasters such as floods and earthquakes.
Especially in recent years, the integration of steel suppliers, the shortage of raw materials affecting steel production and the increase in global steel demand, including China and other developing countries, have led to the overall shortage of steel supply and the rise in steel prices, in some cases, special surcharges for steel suppliers and cuts in product distribution.
In addition, new tariffs and potential restrictions on US steel supply by certain foreign countries may further negatively affect the Company\'s ability to obtain a sufficient number of steel at a competitive price.
In addition, the future steel supply contract may specify the price of fluctuations or adjustments, not in-year period.
Other commodities due to continued global supply and demand pressures-
Related costs affecting the Company\'s business may also increase, including natural gas, electricity and freight chargesrelated costs.
The prices of certain raw materials used by the company, such as steel, aluminum, resin and processed energy, have historically been affected by fluctuations.
In 2018, excluding depreciation and amortization, the consumption of steel and aluminum accounted for 21% and 36% of the combined cost of the company\'s sales products.
Although some parts of the company\'s contract (but not all) pass on the cost of raw materials to customers, if the number of units, income and operating income are not reduced, the company may not be able to raise prices to offset the increase in raw material costs.
In addition, any price increase may take effect after the associated cost increases, thus reducing Operating income in the short term.
A substantial increase in raw material costs may increase the company\'s demand for working capital, which may increase the company\'s average outstanding debt and interest expenses, and may exceed the amount available under the company\'s senior secured credit facility and other liquidity sources.
In addition, companies hedge raw material costs on behalf of certain customers and may suffer losses if these customers are unable to fulfill their purchase obligations.
If the company is unable to purchase steel, aluminum, resin or other raw materials for a considerable period of time, the operation of the company will be disturbed, any such interference may adversely affect the Company\'s financial results.
If the customer believes that the company\'s competitors are more likely to have access to raw materials, the supply certainty of the company\'s competitors may put the company at a competitive disadvantage in terms of pricing and product quantity.
Crown Holdings Limited
The company\'s large debts may prevent it from fulfilling its obligations.
The company has a large amount of outstanding debt.
Due to the serious liabilities of the company, a large part of the company\'s cash flow will be required to pay interest and principal for outstanding debts, and the company may not be able to generate sufficient cash flow from its operations, it may also be impossible to obtain future borrowings under its senior secured credit facility to enable it to repay its debt or fund other liquidity needs.
As of December 31, 2018, funds for the company and its subsidiaries were approximately $8.
8 billion of liabilities.
The company\'s current source of liquidity includes a securitization financing with a planned limit of between $350 and $375, which will expire on July 2020, the planned limit due in November 2022 is $240 in securitization loans and the planned limit due in December 2019 is $175 in uncommitted securitization loans.
Other sources of liquidity for the company include loans due: $1.
7 billion revolving credit in April 2022;
0. 65 billion euros (
$0. 745 billion as at December 31, 2018)4.
0% senior notes in July 2022;
$1 billion.
50% senior notes in January 2023;
0. 335 billion euros (
$0. 384 billion as at December 31, 2018)2.
25% senior notes in February 2023;
0. 6 billion euros (
$0. 688 billion as at December 31, 2018)2.
625% senior notes in September 2024;
0. 6 billion euros (
$0. 688 billion as at December 31, 2018)3.
375% senior notes in May 2025;
$0. 875 billion.
75% senior notes in February 2026;
0. 5 billion euros (
$0. 573 billion as at December 31, 2018)2.
875% senior notes in February 2026;
$0. 4 billion.
25% senior notes in September 2026;
$0. 35 billion.
375% senior notes in December 2026;
$40 million.
5% senior notes in December 2096;
At different dates as at 2036, its various other monetary liabilities of $95 million were incurred.
In addition, the company\'s fixed-term loan facilities are mature as follows: $60 million in 2019, $67 million in 2020, $67 million in 2021, $0. 956 billion in 2022 and $8 million in 2023, it was $8 million in 2024 and $1. 692 billion in 2025.
The huge debt of the company may increase the vulnerability of the company under generally unfavorable economic and industry conditions, including an increase in interest rates;
Restrict companies from making strategic acquisitions or taking advantage of business opportunities, including any planned expansion in emerging markets;
Limit the company\'s ability to make capital expenditures at home and abroad in order to develop the company\'s business or maintain a good working order and maintenance in the production plant;
Limiting the company\'s ability to obtain additional financing, dispose of assets or pay cash dividends, and financial and other restrictive covenants under the company\'s debt;
Require the company to use a large part of the operating cash flow to repay debts, thereby reducing the possibility that cash flow will provide funds for future working capital and capital expenditure, and general enterprise requirements such as R & D expenditure;
Require the company to sell assets used in its business;
Limiting the company\'s ability to refinance existing debt, especially during periods when credit market conditions are unfavorable, when refinancing debt may not be available at the company\'s or at all unacceptable rates and other terms;
Increase the borrowing cost of the company;
Limiting the company\'s flexibility in planning or responding to changes in its business and operations industries;
Compared to its less indebted competitors, the company is at a competitive disadvantage.
If the company\'s financial position, operating results and liquidity deteriorate, the company\'s creditors may limit their ability to obtain future financing, and the supplier may ask for early repayment or cash on delivery instead of providing credit. This may further weaken the company\'s ability to generate cash flow from businesses that are sufficient to repay its debt.
In addition, the company\'s ability to repay its debts and refinance and fund its operations will depend on the company\'s ability to generate cash in the future.
Some of the company\'s debt is affected by the floating interest rate, which will lead to an increase in the company\'s interest expenditure if the interest rate rises.
As at December 31, 2018, about $3.
The company\'s $8 billion.
8 billion of total debt and other outstanding debts require a floating interest rate.
Changes in economic conditions may lead to an increase in interest rates, thereby increasing the company\'s interest expenditure and reducing funds available for operational or other purposes.
The company\'s annual interest expenditure was $0. 384 billion, $0. 252 billion and $0. 243 billion, respectively, at 2018, 2017 and 2016.
According to the outstanding amount of variable interest rate debt on December 31, 2018, a is 0.
25% an increase in variable interest rates would increase its annual pre-tax interest expenditure by approximately $7 million.
Therefore, the company may suffer economic losses and negative effects.
The benefits of interest rate fluctuations.
The actual effect of 0.
The 25% increase in these floating rates may exceed $7 million, as the average borrowing of the Company\'s variable-rate debt may be higher than the amount in December 31, 2018.
In addition, with the increase of floating interest rates, the cost of the company\'s securitization and factoring business will also increase.
While in some cases companies may use interest rate protection agreements from time to reduce the risk of interest rate fluctuations, it may not choose or have the ability to implement hedging, or, if it does enforce the agreements, there is no guarantee that they will achieve the desired results.
See \"Management\'s Discussion and Analysis of the financial position and results of operations --
Working capital and capital resources
\"Market risk\" and \"quantitative and qualitative disclosure of market risk\" in this annual report \".
Despite the company\'s current level of liabilities and restrictive covenants, the company may still generate a significant amount of additional debt or pay certain restrictive payments, which may exacerbate the above risks.
The company may generate additional debts in the future, including those related to acquisitions or joint ventures.
Although the company\'s senior secured credit facilities and covenants for managing certain outstanding notes have limitations on the company\'s ability to assume debt, there are some exceptions to these restrictions and, in some cases, the debt generated by complying with these restrictions may be enormous.
Companies may also consider investing in joint ventures or acquisitions or increasing capital expenditures, which may increase the company\'s liabilities.
In addition, although the company\'s senior guarantee credit facilities and contracts for managing certain outstanding notes have restrictions on the company\'s ability to pay restricted payments, including matters such as Declaration, dividends, repurchase of the Company\'s common shares, in some cases where liability may be increased, the company is able to make such restrictive payments, and the company may make regular dividends on the Company\'s common stock in the future.
Increasing new debt to current debt levels, or otherwise limiting payments, may exacerbate the associated risks that the company and its subsidiaries now face.
Restrictive covenants in debt agreements that manage the company\'s current or future debts may limit the company\'s operational flexibility.
The deeds and agreements governing the Company\'s senior secured credit facility and outstanding notes contain affirmative and negative covenants that restrict the company\'s ability and its subsidiaries to take certain actions.
These restrictions may limit the company\'s ability to operate its business and may prohibit or restrict the company\'s ability to strengthen operations or take advantage of potential business opportunities.
The company\'s senior secured credit institution requires the company to maintain the prescribed financial ratio and meet other financial conditions.
An agreement or deed governing the Company\'s senior secured credit facility and some of its outstanding notes, inter alia, limits the company\'s ability and the ability of all or essentially all subsidiaries: to assume additional debt;
Make dividends or other distributions, buy back share capital, buy back subprime bonds, and make certain investments or loans;
Create a lien and engage in after-sales rent-back transactions;
Impose restrictions on the payment of dividends and other amounts from subsidiaries to the company;
Loans, investments and capital expenditures;
Change accounting processing and reporting methods;
Enter into an agreement to limit the ability of subsidiaries to pay dividends to the company or any of its subsidiaries, to issue loans to the company or any of its subsidiaries or to repay loans, to transfer property or to guarantee debts;
Sell or acquire assets, make a leaseback transaction and merge or merge with other companies;
And deals with related companies.
In addition, the deeds and agreements governing the Company\'s senior secured credit facility and certain outstanding notes limit the company\'s ability to conduct certain transactions, such as mergers and acquisitions, mergers, joint ventures, asset sales, after-sales leaseback transactions, asset pledges, etc.
In addition, if the company or some of its subsidiaries undergo a specific type of control change, the company\'s senior secured credit facility will be due and payable, and the company will be required to propose a repurchase of the outstanding notes.
A breach by the company of any of these covenants, or the failure of the company to meet any of these ratios or conditions, may result in a breach of contract under any or all such liabilities.
In the event of a breach of contract under any such debt, all outstanding debts under that debt may be payable immediately, which may result in a breach of contract by the other 11 Crown holding companies of the company
Outstanding debt and may result in accelerated debt related to the company\'s senior secured credit facility, outstanding notes and other outstanding debt.
The ability of the company to comply with these covenants or covenants to manage other debts that it may undertake in the future, and its outstanding notes may be affected by events beyond its control, so, it may not be able to meet these ratios and conditions.
Pending and future asbestos litigation and payment to resolve asbestos
The relevant claims may reduce the company\'s cash flow and have a negative impact on the company\'s financial situation.
Crown cork seal(Crown Cork), a wholly-
The subsidiary owned by the company is one of many defendants who claimed physical harm from exposure to asbestos in numerous lawsuits filed throughout the United States.
In 1963, Crown Cork acquired a subsidiary with two businesses, one of which allegedly made asbestos.
Contains insulating products.
According to kroncock, the company stopped producing such products in 1963.
The company recorded the pre-
Increased asbestos Accrued taxes of less than $1 million, $3 million and $21 million
Related liabilities for 2018 amounted to 2017 per cent and 2016 per cent.
Crown Cork accumulation of open and future asbestos as of December 31, 2018
The relevant claims and related legal costs amounted to $0. 295 billion, including $0. 251 billion for outstanding claims.
The Company determines its accrual basis, but is not limited to a specific time period.
The accrual basis assumption includes that claims for exposure to asbestos incurred after the sale of the subsidiary\'s insulation business on 1964 are not entitled to settlement expenditures, and the national regulations described in the notes O audited consolidated financial statements of companies included in this annual report, including Texas and Pennsylvania regulations, it is expected to have a very favorable impact on Crown Cork\'s settlement or defense capabilities-
Related claims for States and other states that may apply Penn Law.
During the year ended December 31, 2018, Royal Cork received approximately 2,000 new claims, resolved or dismissed approximately 1,500 claims, and some 56,000 claims remained outstanding at the end of the period.
Of these outstanding claims, some 16,500 relate to claimants claiming their first contact with asbestos after 1964, and some 39,500 relate to claimants claiming their first contact with asbestos before or during 1964, among them, some 13,000 documents were submitted in Texas, 1,500 in Pennsylvania, and 6,000 in other states that enacted asbestos legislation, 19,000 documents were submitted in other states.
The outstanding claims as at December 31, 2018 also excluded approximately 19,000 inactive claims.
Due to the passage of time, the company considers it unlikely that further action will be taken by the plaintiffs in these cases.
Excluding these inactive claims has no effect on the calculation of the company\'s accrual basis, as the claim is made in the state where the company\'s liability is restricted by regulations.
The company spends a lot of time and expenses defending these claims, complaints and lawsuits, and there is no guarantee that the expenses or interference of operating the company\'s business arising from these defenses will not substantially increase.
On October 22, 2010, the Supreme Court of Texas-
The judgment of the lower court was revoked, Barbara Robinson v.
Crown cork seal, No. 14-04-00658-
Resume of the 14 th court of appeal in Texas, supporting the dismissal of asbestos-
Cases related to Crown Cork.
The Supreme Court of Texas believes that under the Texas Constitution, the Texas state law applicable to asbestos is against the constitution --
At the time of the relevant claim hearing legislation enacted on Crown Cork in June 2003.
The Company believes that the decision of the Texas Supreme Court is limited to the retroactive application of asbestos by the Texas state law
On June 11, 2003, Texas\'s related case against Crown Cork was pending and therefore continued to be of no value to claims filed after June 11, 2003.
Crown Cork paid $21 million in cash in 2018, $30 million a year, and asbestos paid 2017 and 2016 --
Related claims including settlement and legal fees.
These payments and any such future payments will reduce the cash flow provided by Crown Cork for its business operations and debt payments. Asbestos-
Related payments, including defense costs, may be significantly higher than the costs estimated by Royal Cork, as a result of such proceedings (
So Crown Cork\'s Reserve)
Affected by some assumptions and uncertainties, such as the number or size of asbestos
The extent to which the relevant claim or settlement, the number of economically viable responsible parties, the court maintains and/or applies national regulations relating to asbestos liability, crown Cork\'s ability to obtain a solution without paying asbestos
Claims filed by persons claiming to have first contact with asbestos after 1964, and the potential impact of any pending or future asbestos --
Relevant legislation.
As a result, Crown Cork may need to pay claims that far exceed its accrual basis, which may reduce the company\'s cash flow and impair its ability to meet its obligations.
Due to the uncertainty of asbestos,
Related Liabilities and reduced cash flow, the company\'s ability to raise new funds in the capital market is more difficult and expensive, and in the future, the company may not be able to enter the capital market.
More information about Crown Cork asbestos