MUELLER INDUSTRIES INC

Previous wording

According to the U.S. Census Bureau, the June 2024 seasonally adjusted annual rate of new housing starts was 1.35 million, compared to the June 2023 rate of 1.42 million. The average 30-year fixed mortgage ratewas 6.87 percent for the first half of 2024 and 6.81 percent for the twelve months ended December 2023. The private non-residential construction sector includes offices, industrial, health care, and retail projects. According to the U.S. Census Bureau, the seasonally adjusted annual value of private nonresidential construction put in placewas $733.9 billion in May 2024 compared to the May 2023 rate of $705.2 billion.

Current wording

According to the U.S. Census Bureau, the September 2024 seasonally adjusted annual rate of new housing starts was 1.35 million, compared to the September 2023 rate of 1.36 million. The average 30-year fixed mortgage ratewas 6.75 percent for the first nine months of 2024 and 6.81 percent for the twelve months ended December 2023. The private non-residential construction sector includes offices, industrial, health care, and retail projects. According to the U.S. Census Bureau, the seasonally adjusted annual value of private nonresidential construction put in placewas $742.2 billion in August 2024 compared to the August 2023 rate of $716.7 billion.

Previous wording

The increase in net sales during the second quarter of 2024 was primarily due to (i) higher net selling prices of $49.8 million in our core product lines, primarily copper tube and brass rod, (ii) sales of $30.6 million recorded by Nehring, acquired in fiscal June 2024, (iii) higher unit sales volume of $20.5 million in our core product lines, and (iv) an increase in sales of $8.0 million in our non-core product lines. These increases were partially offset by a decrease in sales of $8.2 million as a result of the disposition of Heatlink Group during the third quarter of 2023.

Current wording

The increase in net sales during the third quarter of 2024 was primarily due to (i) sales of $92.1 million recorded by Nehring, acquired in fiscal June 2024, (ii) higher net selling prices of $53.3 million in our core product lines, primarily copper tube and brass rod, (iii) an increase in sales of $18.5 million in our non-core product lines, (iv) sales of $10.3 million recorded by Elkhart, acquired in fiscal August 2024, and (v) higher unit sales volume of $3.8 million in our core product lines.

Previous wording

The decrease in net sales during the first half of 2024 was primarily due to (ii) a decrease in sales of $29.3 million in our non-core product lines, (ii) lower unit sales volume of $19.2 million in our core product lines, and (iii) a decrease in sales of $15.9 million as a result of the disposition of Heatlink Group during the third quarter of 2023. These decreases were partially offset by (i) sales of $30.6 million recorded by Nehring and (ii) higher net selling prices of $13.1 million in our core product lines.

Current wording

The increase in net sales during the first nine months of 2024 was primarily due to (i) sales of $122.7 million recorded by Nehring, (ii) higher net selling prices of $66.4 million in our core product lines, and (iii) sales of $10.3 million recorded by Elkhart. These increases were partially offset by (i) a decrease in sales of $15.9 million as a result of the disposition of Heatlink Group during the third quarter of 2023, (ii) lower unit sales volume of $15.4 million in our core product lines, and (iii) a decrease in sales of $10.8 million in our non-core product lines.

Previous wording

Our effective tax rate for the second quarter of 2024 was 26 percent compared with 26 percent for the same period last year. The items impacting the effective tax rate were (i) increases related to the provision for state income taxes, net of the federal benefit, of $6.1 million, (ii) the effect of foreign tax rates higher than statutory tax rates and other foreign items of $2.3 million, and (iii) other items of $3.2 million.

Current wording

Our effective tax rate for the third quarter of 2024 was 23 percent compared with 27 percent for the same period last year. The items impacting the effective tax rate were (i) increases related to the provision for state income taxes, net of the federal benefit, of $6.5 million, (ii) the effect of foreign tax rates higher than statutory tax rates and other foreign items of $1.8 million, and (iii) other adjustments of $5.0 million. These were partially offset by decreases related to equity compensation of $9.9 million.

Previous wording

For the second quarter of 2023, the difference between the effective tax rate and the amount computed using the U.S. federal statutory rate was primarily attributable to (i) increases related to the provision for state income taxes, net of the federal benefit, of $7.1 million and (ii)the effect of foreign tax rates higher than statutory tax rates and other foreign items of $2.6 million.

Current wording

For the third quarter of 2023, the difference between the effective tax rate and the amount computed using the U.S. federal statutory rate was primarily attributable to (i) increases related to the provision for state income taxes, net of the federal benefit, of $6.5 million and (ii)the effect of foreign tax rates higher than statutory tax rates and other foreign items of $6.1 million. These were partially offset by other adjustments of$1.5 million.

Previous wording

During the second quarter of 2024 and 2023, we recognized net losses of $1.1 million and net income of $0.7 million, respectively, on our investments in unconsolidated affiliates.

Current wording

During the third quarter of 2024 and 2023, we recognized net income of $3.2 million and net losses of $2.4 million, respectively, on our investments in unconsolidated affiliates.

Previous wording

Cost of goods sold increased in the first half of 2024 primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 27.8 percent compared with 29.4 percent in the prior year. Depreciation and amortization decreased in the first half of 2024 as a result of several long-lived assets becoming fully depreciated and as a result of long-lived assets sold with Heatlink Group, partially offset by incremental expenses associated with the acquisition of Nehring. Selling, general, and administrative expense decreased in the first half of 2024 primarily as a result of (i) higher foreign currency transaction gains of $7.0 million, (ii) lower employment costs, including incentive compensation and healthcare, of $4.6 million, and (iii) the absence of expenses associated with Heatlink Group of $2.7 million. These decreases were partially offset by (i) higher legal and professional fees of $3.5 million, (ii) higher taxes and insurance of $1.5 million, (iii) higher customs duties of $1.1 million, and (iv) incremental expenses of $0.7 million associated with the acquisition of Nehring. In addition, during the first half of 2023, we settled the insurance claim related to the August 2022 fire at our Bluffs, Illinois manufacturing operation and recognized a $19.5 million gain.

Current wording

Cost of goods sold increased in the first nine months of 2024 primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 27.7 percent compared with 29.4 percent in the prior year. Depreciation and amortization increased slightly in the first nine months of 2024 as a result of incremental expenses associated with the acquisition of Nehring, largely offset by several long-lived assets becoming fully depreciated and as a result of long-lived assets sold with Heatlink Group. Selling, general, and administrative expense increased in the first nine months of 2024 primarily as a result of (i) incremental expenses of $4.6 million associated with the acquisitions of Nehring and Elkhart, (ii) higher employment costs, including incentive compensation, of $3.4 million, (iii) higher legal and professional fees of $2.8 million, (iv) higher taxes and insurance of $2.4 million, and (v) higher product liability costs of $1.1 million. These increases were partially offset by (i) higher foreign currency transaction gains of $7.7 million and (ii) the absence of expenses associated with Heatlink Group of $2.7 million. In addition, during the first nine months of 2024, we recognized net gains of $4.0 million on the sale of assets. During the first nine months of 2023, we settled the insurance claim related to the August 2022 fire at our Bluffs, Illinois manufacturing operation and recognized a $19.5 million gain. We also recognized fixed asset impairment charges on idled equipment of $5.9 million and a gain on the sale of Heatlink Group of $4.1 million.

Previous wording

Interest expense was consistent with the first half of 2023. Interest income was higher during the first half of 2024 primarily as a result of (i) the purchase of short-term investments throughout 2023 and 2024 and (ii) higher rates on deposits. During the first half of 2024 and 2023, we recognized realized and unrealized gains on short-term investments of $0.4 million and $22.7 million, respectively. We recognized other expense, net, of $0.7 million in the first half of 2024 compared to other income, net, of $2.2 million in the first half of 2023. This change was primarily due to (i) higher environmental remediation costs at our non-operating properties during the second quarter of 2024 and (ii) a gain for an indemnification settlement related to one of our foreign benefits plans recognized during the second quarter of 2023.

Current wording

Interest expense was consistent with the first nine months of 2023. Interest income was higher during the first nine months of 2024 primarily as a result of (i) the purchase of short-term investments throughout 2023 and 2024 and (ii) higher rates on deposits. During the first nine months of 2024 and 2023, we recognized realized and unrealized gains on short-term investments of $0.5 million and $20.4 million, respectively. We recognized other expense, net, of $0.8 million in the first nine months of 2024 compared to other income, net, of $2.1 million in the first nine months of 2023. This change was primarily due to (i) a gain for an indemnification settlement related to one of our foreign benefits plans recognized during the first nine months of 2023 and (ii) higher environmental remediation costs at our non-operating properties during the first nine months of 2024.

Previous wording

Our effective tax rate for the first half of 2024 was 26 percent compared with 26 percent for the same period last year. The items impacting the effective tax rate are primarily related to (i) the provision for state income taxes, net of the federal benefit, of $12.0 million, (ii) the effect of foreign tax rates higher than statutory tax rates and other foreign items of $3.9 million, and (iii) other adjustments of $5.3 million.

Current wording

Our effective tax rate for the first nine months of 2024 was 25 percent compared with 26 percent for the same period last year. The items impacting the effective tax rate are primarily related to (i) the provision for state income taxes, net of the federal benefit, of $18.4 million and (ii) the effect of foreign tax rates higher than statutory tax rates and other foreign items of $5.7 million.

Previous wording

For the first half of 2023, the items impacting the effective tax rate were primarily related to (i) the provision for state income taxes, net of the federal benefit, of $15.0 million and (ii) the effect of foreign tax rates higher than statutory tax rates of $4.6 million.

Current wording

For the first nine months of 2023, the items impacting the effective tax rate were primarily related to (i) the provision for state income taxes, net of the federal benefit, of $21.5 million and (ii) the effect of foreign tax rates higher than statutory tax rates of $10.7 million. These were partially offset by other adjustments of $2.0 million.

Previous wording

During the first half of 2024 and 2023, we recognized net losses of $9.1 million and $0.3 million, respectively, on our investments in unconsolidated affiliates.

Current wording

During the first nine months of 2024 and 2023, we recognized net losses of $5.9 million and $2.7 million, respectively, on our investments in unconsolidated affiliates.

Previous wording

The following table compares summary operating results for the first half of 2024 and 2023 for the businesses comprising our Piping Systems segment:

Current wording

The following table compares summary operating results for the first nine months of 2024 and 2023 for the businesses comprising our Piping Systems segment:

Previous wording

The increase in net sales during the second quarter of 2024 was primarily attributable to (i) higher net selling prices in the segment’s core product lines, primarily copper tube, of $36.0 million, (ii) higher unit sales volume of $17.6 million in the segment’s core product lines, and (iii) an increase in sales of $1.4 million in the segment’s non-core product lines. These increases were partially offset by a decrease in sales of $8.2 million as a result of the disposition of Heatlink Group during the third quarter of 2023.

Current wording

The increase in net sales during the third quarter of 2024 was primarily attributable to (i) higher net selling prices in the segment’s core product lines, primarily copper tube, of $45.9 million, (ii) an increase in sales of $10.4 million in the segment’s non-core product lines, (iii) sales of $10.3 million recorded by Elkhart, and (iv) higher unit sales volume of $6.2 million in the segment’s core product lines.

Previous wording

Net sales during the first half of 2024 decreased primarily as a result of (i) lower unit sales volume of $22.4 million in the segment’s core product lines and (ii) a decrease in sales of $15.9 million as a result of the disposition of Heatlink Group during the third quarter of 2023. These decreases were partially offset by (i) higher net selling prices in the segment’s core product lines of $5.5 million and (ii) an increase in sales of $3.1 million in the segment’s non-core product lines.

Current wording

Net sales during the first nine months of 2024 increased primarily as a result of (i) higher net selling prices in the segment’s core product lines of $51.4 million, (ii) an increase in sales of $13.5 million in the segment’s non-core product lines, and (iii) sales of $10.3 million recorded by Elkhart. These increases were partially offset by (i) lower unit sales volume of $16.2 million in the segment’s core product lines and (ii) a decrease in sales of $15.9 million as a result of the disposition of Heatlink Group during the third quarter of 2023.

Previous wording

The increase in cost of goods sold during the first half of 2024 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 27.9 percent compared with 29.2 percent in the prior year. Depreciation and amortization decreased in the first half of 2024 primarily as a result of depreciation and amortization of the long-lived assets becoming fully depreciated and as a result of long-lived assets sold with Heatlink Group. Selling, general, and administrative expense decreased for the first half of 2024 primarily as a result of (i) higher foreign currency transaction gains of $6.6 million, (ii) lower employment costs, including incentive compensation and healthcare, of $4.8 million, and (iii) the absence of expenses associated with Heatlink Group of $2.7 million. These decreases were partially offset by (i) higher customs duties of $1.1 million, (ii) higher professional fees of $0.8 million, and (iii) higher travel and entertainment of $0.5 million.

Current wording

The increase in cost of goods sold during the first nine months of 2024 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 28.5 percent compared with 29.6 percent in the prior year. Depreciation and amortization decreased in the first nine months of 2024 primarily as a result of depreciation and amortization of the long-lived assets becoming fully depreciated and as a result of long-lived assets sold with Heatlink Group. Selling, general, and administrative expense decreased for the first nine months of 2024 primarily as a result of (i) higher foreign currency transaction gains of $7.5 million, (ii) the absence of expenses associated with Heatlink Group of $2.7 million, and (iii) lower employment costs, including incentive compensation and healthcare, of $2.6 million. These decreases were partially offset by (i) incremental expenses of $1.6 million associated with the acquisition of Elkhart, (ii) higher professional fees of $1.3 million, (iii) higher travel and entertainment of $0.7 million, and (iv) higher taxes and insurance of $0.4 million.

Previous wording

The following table compares summary operating results for the first half of 2024 and 2023 for the businesses comprising our Industrial Metals segment:

Current wording

The following table compares summary operating results for the first nine months of 2024 and 2023 for the businesses comprising our Industrial Metals segment:

Previous wording

The increase in net sales during the first half of 2024 was primarily due to (i) sales of $30.6 million recorded by Nehring, (ii) higher net selling prices of $7.5 million in the segment’s core product lines, and (iii) higher unit sales volume of $3.2 million in the segment’s core product lines. These increases were slightly offset by a decrease in sales of $2.2 million in the segment’s non-core product lines.

Current wording

The increase in net sales during the first nine months of 2024 was primarily due to (i) sales of $122.7 million recorded by Nehring and (ii) higher net selling prices of $15.0 million in the segment’s core product lines. These increases were slightly offset by a decrease in sales of $2.6 million in the segment’s non-core product lines.

Previous wording

The following table compares summary operating results for the first half of 2024 and 2023 for the businesses comprising our Climate segment:

Current wording

The following table compares summary operating results for the first nine months of 2024 and 2023 for the businesses comprising our Climate segment:

Previous wording

Sales for the second quarter of 2024 increased primarily as a result of an increase in volume and price in certain product lines. Sales for the first half of 2024 decreased primarily as a result of reduced demand, particularly for products utilized in residential construction, and a decrease in volume and price in certain product lines.

Current wording

Sales for the third quarter of 2024 increased primarily as a result of an increase in volume and price in certain product lines. Sales for the first nine months of 2024 decreased primarily as a result of reduced demand, particularly for products utilized in residential construction, and a decrease in volume and price in certain product lines.

Previous wording

The increase in cost of goods sold during the second quarter of 2024 was primarily due to the factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 18.5 percent compared with 15.8 percent in the prior year quarter. Depreciation and amortization and selling, general, and administrative expense increased during the second quarter of 2024 primarily as a result of incremental expenses associated with the acquisition of Nehring.

Current wording

Cost of goods sold increased during the third quarter of 2024 primarily due to factors noted above regarding the change in net sales. Gross margin as a percentage of sales was consistent with the prior year quarter. Depreciation and amortization and selling, general, and administrative expense were consistent with the third quarter of 2023. In addition, during the third quarter of 2024, the segment recognized a gain of $2.7 million on the sale of a building.

Previous wording

Cost of goods sold decreased during the first half of 2024 primarily due to factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 36.2 percent compared with 40.1 percent in the prior year. Depreciation and amortization decreased for the first half of 2024 as a result of several long-lived assets becoming fully depreciated. Selling, general, and administrative expense decreased slightly for the first half of 2024 primarily as a result of lower employment costs of $0.5 million. In addition, during the first half of 2023, we settled the insurance claim related to the August 2022 fire at our Bluffs, Illinois manufacturing operation and recognized a $19.5 million gain.

Current wording

Cost of goods sold decreased during the first nine months of 2024 primarily due to factors noted above regarding the change in net sales. Gross margin as a percentage of sales was 36.3 percent compared with 39.0 percent in the prior year. Depreciation and amortization decreased for the first nine months of 2024 as a result of several long-lived assets becoming fully depreciated. Selling, general, and administrative expense decreased slightly for the first nine months of 2024 primarily as a result of lower employment costs of $0.8 million. In addition, during the first nine months of 2024 the segment recognized a gain of $2.7 million on the sale of a building. During the first nine months of 2023, we settled the insurance claim related to the August 2022 fire at our Bluffs, Illinois manufacturing operation and recognized a $19.5 million gain.

Previous wording

The following table presents selected financial information for the first half of 2024 and 2023:

Current wording

The following table presents selected financial information for the first nine months of 2024 and 2023:

Previous wording

During the six months ended June 29, 2024, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $305.2 million, (ii) an increase in current liabilities of $30.3 million, (iii) non-capital related insurance proceeds of $15.0 million for the March 2023 tornado in Covington, Tennessee, (iv) a decrease in other assets of $8.5 million, and (v) a decrease in inventories of $6.7 million. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $19.3 million, (ii) stock-based compensation expense of $13.5 million, and (iii) losses from unconsolidated affiliates of $9.1 million. These increases were partially offset by an increase in accounts receivable of $132.0 million.

Current wording

During the nine months ended September 28, 2024, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $476.9 million, (ii) a decrease in inventories of $34.0 million, (iii) an increase in current liabilities of $25.3 million, (iv) non-capital related insurance proceeds of $15.0 million for the March 2023 tornado in Covington, Tennessee, and (v) dividends from unconsolidated affiliates of $4.1 million. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $31.1 million, (ii) stock-based compensation expense of $20.0 million, and (iii) losses from unconsolidated affiliates of $5.9 million. These increases were partially offset by (i) an increase in accounts receivable of $99.3 million and (ii) gains on the sale of properties of $4.0 million.

Previous wording

During the six months ended July 1, 2023, net cash provided by operating activities was primarily attributable to consolidated net income of $354.6 million. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $21.3 million and (ii) stock-based compensation expense of $12.5 million, as well as (iii) non-capital related insurance proceeds of $9.9 million for the August 2022 fire in Bluffs, Illinois. These increases were largely offset by (i) an increase in accounts receivable of $77.7 million, (ii) unrealized gains on short-term investments of $20.8 million, (iii) the gain related to the settlement of the insurance claim for the August 2022 fire in Bluffs, Illinois of $19.5 million, (iv) a decrease in current liabilities of $14.5 million, (v) an increase in inventories of $12.1 million, and (vi) an increase in other assets of $5.6 million.

Current wording

During the nine months ended September 30, 2023, net cash provided by operating activities was primarily attributable to (i) consolidated net income of $490.4 million (ii) a decrease in inventories of $53.4 million, and (iii) non-capital related insurance proceeds of $9.9 million for the August 2022 fire in Bluffs, Illinois. There were also increases due to non-cash adjustments primarily consisting of (i) depreciation and amortization of $31.1 million and (ii) stock-based compensation expense of $17.3 million. These increases were largely offset by (i) an increase in accounts receivable of $36.9 million, (ii) unrealized gains on short-term investments of $18.4 million, (iii) the gain related to the settlement of the insurance claim for the August 2022 fire in Bluffs, Illinois of $19.5 million, (iv) a decrease in current liabilities of $25.5 million, and (v) an increase in other assets of $12.9 million.

Previous wording

The major components of net cash used in investing activities during the six months ended June 29, 2024 included (i) $566.6 million for the purchase of Nehring, (ii) capital expenditures of $25.6 million, (iii) investments in unconsolidated affiliates of $8.7 million, (iv) the purchase of long-term investments of $8.0 million, and (v) the issuance of notes receivable of $3.8 million. These uses were partially offset by (i) proceeds from the sale of securities of $96.5 million and (ii) proceeds from the sale of properties of $4.0 million.

Current wording

The major components of net cash used in investing activities during the nine months ended September 28, 2024 included (i) $602.7 million for the acquisitions of Nehring and Elkhart, net of cash acquired, (ii) capital expenditures of $51.3 million, (iii) investments in unconsolidated affiliates of $8.7 million, (iv) the purchase of long-term investments of $8.0 million, (v) the purchase of short-term investments of $4.3 million, and (vi) the issuance of notes receivable of $3.8 million. These uses were partially offset by (i) proceeds from the sale of securities of $98.5 million and (ii) proceeds from the sale of properties of $9.0 million.

Previous wording

The major components of net cash provided by investing activities during the six months ended July 1, 2023 included (i) proceeds from the maturity of short-term investments of $217.9 million and (ii) insurance proceeds of $24.6 million for property and equipment related to the fire at the Bluffs, Illinois and the tornado at the Covington, Tennessee manufacturing operations. These sources were partially offset by (i) the purchase of short-term investments of $106.2 million and (ii) capital expenditures of $29.2 million.

Current wording

The major components of net cash provided by investing activities during the nine months ended September 30, 2023 included (i) proceeds from the maturity of short-term investments of $217.9 million and (ii) insurance proceeds of $24.6 million for property and equipment related to the fire at the Bluffs, Illinois and the tornado at the Covington, Tennessee manufacturing operations. These sources were partially offset by (i) the purchase of short-term investments of $106.2 million and (ii) capital expenditures of $39.5 million.

Previous wording

For the six months ended June 29, 2024, net cash used in financing activities consisted primarily of (i) $44.5 million used for the payment of regular quarterly dividends to stockholders of the Company, (ii) $43.0 million used to repurchase common stock, and (iii) $2.0 million net cash used to settle stock-based awards.

Current wording

For the nine months ended September 28, 2024, net cash used in financing activities consisted primarily of (i) $66.8 million used for the payment of regular quarterly dividends to stockholders of the Company, (ii) $48.7 million used to repurchase common stock, and (iii) $22.9 million net cash used to settle stock-based awards.

Previous wording

For the six months ended July 1, 2023, net cash used in financing activities consisted primarily of (i) $33.4 million used for the payment of regular quarterly dividends to stockholders of the Company, (ii) $19.3 million used to repurchase common stock, and (iii) $2.6 million net cash used to settle stock-based awards.

Current wording

For the nine months ended September 30, 2023, net cash used in financing activities consisted primarily of (i) $50.1 million used for the payment of regular quarterly dividends to stockholders of the Company, (ii) $19.3 million used to repurchase common stock, and (iii) $9.1 million net cash used to settle stock-based awards.

Previous wording

As of June 29, 2024, we had $825.7 million of cash on hand and $371.1 million available to be drawn under the Credit Agreement. Our current ratio was 4.7 to 1.

Current wording

As of September 28, 2024, we had $969.6 million of cash on hand and $371.2 million available to be drawn under the Credit Agreement. Our current ratio was 4.9 to 1.

Previous wording

We have significant environmental remediation obligations which we expect to pay over future years. Cash used for environmental remediation activities was approximately $0.5 million during the first half of 2024. We expect to spend approximately $4.9 million over the next twelve months for ongoing environmental remediation activities.

Current wording

We have significant environmental remediation obligations which we expect to pay over future years. Cash used for environmental remediation activities was approximately $1.6 million during the first nine months of 2024. We expect to spend approximately $3.9 million over the next twelve months for ongoing environmental remediation activities.

Previous wording

The Company declared a quarterly cash dividend of 20.0 cents per common share during first and second quarters of 2024 and 15.0 cents per common share during the first and second quarters of 2023, respectively. Payment of dividends in the future is dependent upon our financial condition, cash flows, capital requirements, earnings, and other factors.

Current wording

The Company declared a quarterly cash dividend of 20.0 cents per common share during first, second, and third quarters of 2024, and 15.0 cents per common share during the first, second, and third quarters of 2023, respectively. Payment of dividends in the future is dependent upon our financial condition, cash flows, capital requirements, earnings, and other factors.

Previous wording

The Company’s Credit Agreement provides for an unsecured $400.0 million revolving credit facility, which matures March 31, 2026. There were no borrowings outstanding under the Credit Agreement as of June 29, 2024. The Credit Agreement backed approximately $28.9 million in letters of credit at the end of the second quarter of 2024.

Current wording

The Company’s Credit Agreement provides for an unsecured $400.0 million revolving credit facility, which matures March 31, 2026. There were no borrowings outstanding under the Credit Agreement as of September 28, 2024. The Credit Agreement backed approximately $28.8 million in letters of credit at the end of the third quarter of 2024.

Previous wording

The Board of Directors has extended, until July 2024, the authorization to repurchase up to 40 million shares of the Company’s common stock through open market transactions or through privately negotiated transactions. We may cancel, suspend, or extend the time period for the repurchase of shares at any time. Any repurchases will be funded primarily through existing cash and cash from operations. We may hold any shares repurchased in treasury or use a portion of the repurchased shares for our stock-based compensation plans, as well as for other corporate purposes. From its initial authorization in 1999 through June 29, 2024, the Company has repurchased approximately 15.8 million shares under this authorization.

Current wording

The Board of Directors has extended, until July 2026, the authorization to repurchase up to 40 million shares of the Company’s common stock through open market transactions or through privately negotiated transactions. We may cancel, suspend, or extend the time period for the repurchase of shares at any time. Any repurchases will be funded primarily through existing cash and cash from operations. We may hold any shares repurchased in treasury or use a portion of the repurchased shares for our stock-based compensation plans, as well as for other corporate purposes. From its initial authorization in 1999 through September 28, 2024, the Company has repurchased approximately 15.9 million shares under this authorization.