CROWN HOLDINGS INC
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 1, 2024
CCK$121.30-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-29.
0001219601-24-000029
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0001219601-24-000038
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 120 previous paragraphs and 121 current paragraphs.
68 unchanged; 37 reworded; 15 added; 13 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Three months ended September 30, 2024 compared to 2023
Current report
Nine months ended September 30, 2024 compared to 2023
Current report
For the three and nine months ended September 30, 2024 compared to 2023, net sales increased primarily due to 10% and 8% higher shipments, partially offset by unfavorable foreign currency translation of $12 and $6. The nine months of 2024 was also impacted by the pass-through of $67 in lower aluminum costs.
Current report
For the three and nine months ended September 30, 2024 compared to 2023, net sales increased primarily due to higher shipments of 6% in both periods.
Current report
For the three and nine months ended September 30, 2024 compared to 2023, net sales decreased primarily due to 11% and 8% lower shipments, respectively. The nine months ended September 30, 2024 was also impacted by the pass-through of $32 lower aluminum costs and unfavorable foreign currency translation of $10.
Current report
For the three and nine months ended September 30, 2024 compared to 2023, net sales decreased primarily due $13 and $57 lower material costs and $12 and $51 lower volumes across most product lines.
Current report
For the three and nine months ended September 30, 2024 compared to 2023, segment income decreased primarily related to lower volumes across most product lines and margin compression due to lower selling prices, partially offset by improved cost performance.
Current report
Three months ended September, 2024 compared to 2023
Current report
Nine months ended September 30, 2024 compared to 2023
Current report
For the three months ended September 30, 2024, restructuring and other net gains of $13, included a $22 gain for the sale of food can equipment in Mexico. For the nine months ended September 30, 2024, restructuring and other net charges of $27, primarily included business reorganization activities in the Company's European Beverage and Other segments. The Company continually evaluates its cost structure and is currently evaluating the potential closure of a plant which has property, plant and equipment of $25 as of September 30, 2024. This action may also result in charges for severance and other exit costs.
Current report
Other pension and postretirement
Current report
For the three and nine months ended September 30, 2024, Other pension and postretirement expense included settlement charges of $517 related to the transfer of portions of the Company's Canadian and primary U.S. defined benefit pension liabilities through the purchase of group annuity insurance contracts. See Note M for more information.
Current report
Cash used for financing activities increased from $35 for the nine months ended September 30, 2023 to $260 for the nine months ended September 30, 2024, primarily due to payments of long-term debt and common stock repurchased in the third quarter of 2024.
Current report
During the third quarter of 2024, the Company repurchased $107 of common stock from the Canadian and U.S. pension plans in conjunction with the partial settlements of their pension obligations.
Current report
In the third quarter of 2024, the Company's Canadian and primary U.S. defined benefit pension plans (the "Canadian Plan" and the "U.S. Plans", respectively) entered into transactions to transfer a significant portion of their respective pension liabilities through the purchase of group annuity insurance contracts. The Company used plan assets to settle $120 of the Canadian Plan obligations and $740 of the U.S Plans obligations for nearly all of their retiree and deferred vested participants. As part of the transaction, the Company also made a cash contribution of approximately $100 to the U.S. Plans.
Removed paragraphs (13)
Previous report
Net sales increased primarily due to 10% higher shipments, partially offset by $29 pass-through of lower aluminum costs.
Previous report
Net sales decreased due to the pass-through of $87 in lower aluminum costs, partially offset by 7% higher shipments and favorable foreign currency translation of $6.
Previous report
Three and six months ended June 30, 2024 compared to 2023
Previous report
For the three and six months ended June 30, 2024 compared to 2023, net sales increased due to higher shipments of 7% and 6%, partially offset by $15 and $31 pass-through of lower aluminum costs.
Previous report
Net sales decreased primarily due to 5% lower shipments, the pass-through of $17 lower aluminum costs and unfavorable foreign currency of $6.
Previous report
Net sales decreased primarily due to 6% lower shipments, the pass-through of $36 lower aluminum costs and unfavorable foreign currency of $12.
Previous report
Net sales decreased primarily due to the pass-through of $20 lower material costs, $21 lower volumes, mainly in protective packaging solutions and steel and plastic consumables, and unfavorable foreign currency translation of $5.
Previous report
Segment income decreased primarily due to $15 lower volumes, mainly in protective packaging solutions and steel and plastic consumables, and lower material margins, partially offset by improved cost performance.
Previous report
Net sales decreased primarily due to the pass-through of $44 lower material costs, $39 lower volumes, mainly in protective packaging solutions and steel and plastic consumables, and unfavorable foreign currency translation of $4.
Previous report
Segment income decreased primarily due to $23 lower volumes, mainly in protective packaging solutions and steel and plastic consumables, and lower material margins, partially offset by improved cost performance.
Previous report
For the three and six months ended June 30, 2024, restructuring and other net charges of $17 and $40, respectively, primarily included business reorganization activities in the Company's European Beverage and Other segments. The Company continues to review its costs structure and may record additional restructuring charges in the future.
Previous report
In July 2024, the Company purchased an annuity insurance contract using plan assets to settle approximately $125 of its Canadian defined benefit pension plan obligation. The plan remains in an overfunded position after the transaction and the Company expects to record a settlement charge of approximately $60 in the third quarter of 2024 related to the partial settlement of the Canadian pension plan. Based on market conditions and interest rates, the Company may continue to consider various opportunistic strategies to manage its remaining pension obligations, including its U.S.
Previous report
pension obligation, through lump sum payments and the purchase of annuity insurance contracts which may require additional pension contributions and the use of plan assets. These strategies could be significant and result in the Company making cash contributions to the plan or recording pension settlement charges to accelerate the timing of recognition of actuarial losses recorded in accumulated other comprehensive income. As of June 30, 2024, the Company had $661 of net losses related to pension benefit obligations recorded in accumulated other comprehensive income.
Reworded paragraphs (37)
Previous wording
The following discussion presents management's analysis of the results of operations for the three and six months ended June 30, 2024 compared to 2023 and changes in financial condition and liquidity from December 31, 2023. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, along with the consolidated financial statements and related notes included in and referred to within this report.
Current wording
The following discussion presents management's analysis of the results of operations for the three and nine months ended September 30, 2024 compared to 2023 and changes in financial condition and liquidity from December 31, 2023. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, along with the consolidated financial statements and related notes included in and referred to within this report.
Previous wording
Global industry demand for beverage cans has been growing in recent years in North America, Brazil, Europe, and Southeast Asia. Growth has been driven by new product introductions in North America, customer and consumer focus on the sustainability benefits of aluminum, and population and GDP growth in many markets. To meet such demand, the Company made long-term investments of approximately $2,000 for new manufacturing facilities and additional production lines in existing facilities since 2021. In 2023, the impact of higher inflation and interest rates slowed growth in many markets. Based on current market conditions, the Company expects to have the ability to meet current and future demand growth with its current installed capital base and expects capital spending to be no more than $500 in 2024.
Current wording
Global industry demand for beverage cans has been growing in recent years in North America, Brazil, Europe, and Southeast Asia. Growth has been driven by new product introductions in North America, customer and consumer focus on the sustainability benefits of aluminum, and population and GDP growth in many markets. To meet such demand, the Company made long-term investments of approximately $2,000 for new manufacturing facilities and additional production lines in existing facilities since 2021. In 2023, the impact of higher inflation and interest rates slowed growth in many markets. Based on current market conditions, the Company expects to have the ability to meet current and future demand growth with its current installed capital base and expects capital spending to be no more than $450 in 2024.
Previous wording
The foreign currency translation impacts referred to in the discussion below were primarily due to changes in the Mexican peso in the Company's Americas Beverage segment and the Thai baht in the Company's Asia Pacific segment. The Company's Transit Packaging segment is a global business and the foreign currency translation impacts referred to in the discussion below are primarily related to the Indian rupee and the Mexican peso.
Current wording
The foreign currency translation impacts referred to in the discussion below were primarily due to changes in the Mexican peso in the Company's Americas Beverage segment, the euro and pound sterling in the Company's European Beverage segment, the Thai baht in the Company's Asia Pacific segment. The Company's Transit Packaging segment is a global business and the foreign currency translation impacts referred to in the discussion below are primarily related to the Indian rupee, the Japanese yen and the Brazilian real.
Previous wording
Net sales decreased primarily due to $94 from the pass-through of lower aluminum, steel and other commodity costs, lower overall volumes in Asia Pacific, Transit Packaging and Other segments and unfavorable foreign currency translation of $13, partially offset by higher beverage can shipments in the Americas and European Beverage segments.
Current wording
Net sales increased primarily due to higher beverage can shipments in the Americas and European Beverage segments, partially offset by lower shipments in Asia Pacific, Transit Packaging and Other segments and unfavorable foreign currency translation of $9.
Previous wording
Net sales decreased primarily due to $224 from the pass-through of lower aluminum, steel and other commodity costs and lower overall volumes in Asia Pacific, Transit Packaging and Other segments, partially offset by higher beverage can shipments in the Americas and European Beverage segments.
Current wording
Net sales decreased primarily due to $214 from the pass-through of lower aluminum, steel and other commodity costs and lower shipments in Asia Pacific, Transit Packaging and Other segments, partially offset by higher beverage can shipments in the Americas and European Beverage segments.
Previous wording
Segment income increased due to higher shipments and lower start-up costs compared to 2023.
Current wording
Segment income increased primarily due to higher shipments and improved manufacturing performance, including lower start-up costs compared to 2023.
Previous wording
Segment income improved due to higher shipments, improved cost performance, including savings realized as part of prior year restructuring actions and lower start-up costs.
Current wording
For the three and nine months ended September 30, 2024 compared to 2023, segment income increased primarily due to higher shipments, improved cost performance, including savings realized as part of prior year restructuring actions and lower start-up costs.
Previous wording
In June 2022, the Company's Yangon, Myanmar beverage can plant was temporarily idled due to currency restrictions, which resulted in the inability to source U.S. dollars required to procure U.S. dollar raw materials. The Company began production on a limited basis in 2023 and had net sales of $4 for the six months ended June 30, 2024. Property, plant and equipment in Myanmar as of June 30, 2024 was $50, including $24 of land and buildings and $26 of machinery and equipment. The Company will continue to monitor the economic conditions and the impact to its business in Myanmar, including any alternative uses for its machinery and equipment.
Current wording
In June 2022, the Company's Yangon, Myanmar beverage can plant was temporarily idled due to currency restrictions, which resulted in the inability to source U.S. dollars required to procure U.S. dollar raw materials. The Company began production on a limited basis in 2023 and had net sales of $6 for the nine months ended September 30, 2024. Property, plant and equipment in Myanmar as of September 30, 2024 was $49, including $24 of land and buildings and $25 of machinery and equipment. The Company will continue to monitor the economic conditions and the impact to its business in Myanmar, including any alternative uses for its machinery and equipment.
Previous wording
Segment income increased primarily due to improved matching of aluminum pass-through provisions as a result of lower inventory in 2024, favorable customer mix and cost savings realized as part of prior year restructuring actions.
Current wording
For the three and nine months ended September 30, 2034 compared to 2023, segment income increased primarily due to cost savings realized as part of prior year restructuring actions, improved matching of aluminum pass-through provisions as a result of lower inventory in 2024, favorable customer mix and $5 and $13, respectively, lower depreciation expense driven by useful life change effective January 1, 2024.
Previous wording
Additionally, during the second quarter of 2024, the Company closed its food can plant in La Villa, Mexico and entered into an agreement to sell equipment for $30 to be paid in three annual installments. The first $10 installment was received during the quarter. The Company expects to recognize a gain of approximately $20 in the third quarter of 2024, when control of the equipment transfers.
Current wording
Additionally, during the second quarter of 2024, the Company closed its food can plant in La Villa, Mexico and entered into an agreement to sell equipment for $30 to be paid in three annual installments, with the first $10 installment received during 2024. The Company recognized a gain of $22 for the sale of the equipment in the third quarter of 2024.
Previous wording
Net sales and segment income decreased primarily due to lower volumes in the food can, aerosol can and equipment businesses. Net sales were also negatively impacted by $12 due to the pass-through of lower steel costs and segment income was negatively impacted by the timing of the pass-through of steel costs.
Current wording
Net sales and segment income decreased primarily due to lower volumes in the equipment, aerosol can and Mexico food can businesses. Net sales was also negatively impacted $17 from the pass-through of lower steel costs.
Previous wording
Net sales and segment income decreased primarily due to lower volumes in the food can, aerosol can and equipment businesses. Net sales were also negatively impacted by $23 due to the pass-through of lower steel costs.
Current wording
Net sales and segment income decreased primarily due to lower volumes in the food can, aerosol can and equipment businesses. Net sales were also negatively impacted $40 from the pass-through of lower steel costs.
Previous wording
Corporate and unallocated expenses increased for the three and six months ended June 30, 2024 compared to 2023, primarily due to higher incentive compensation, including stock compensation.
Current wording
Corporate and unallocated expenses increased for the three and nine months ended September 30, 2024 compared to 2023, primarily due to higher incentive compensation, including stock-based compensation.
Previous wording
The Company periodically reviews the useful lives of property, plant and equipment. Based on the Company’s experience with the duration over which equipment and buildings of its aluminum beverage can business can be utilized, the Company engaged a third-party appraiser to assist in this review and, as a result, increased the estimated useful lives of buildings up to 50 years and machinery and equipment up to 23 years effective January 1, 2024. The change in accounting estimate will be applied on a prospective basis. The change in useful lives resulted in a net reduction in depreciation expense of $16 and $32 for the three and six months ended June 30, 2024, respectively, as compared to the amount of depreciation expense that would have been recorded by utilizing the prior depreciable lives.
Current wording
The Company periodically reviews the useful lives of property, plant and equipment. Based on the Company’s experience with the duration over which equipment and buildings of its aluminum beverage can business can be utilized, the Company engaged a third-party appraiser to assist in this review and, as a result, increased the estimated useful lives of buildings up to 50 years and machinery and equipment up to 23 years effective January 1, 2024. The change in accounting estimate will be applied on a prospective basis. The change in useful lives resulted in a net reduction in depreciation expense of $16 and $48 for the three and nine months ended September 30, 2024, respectively, as compared to the amount of depreciation expense that would have been recorded by utilizing the prior depreciable lives.
Previous wording
The decrease in the effective tax rate for the three and six months ended June 30, 2024 compared to 2023, was primarily due a benefit of $16 taken in 2024 related to the release of a valuation allowance resulting from improved profitability in a European subsidiary, offset by an increase in earnings in higher-tax jurisdictions.
Current wording
The effective tax rate for the nine months ended September 30, 2024 was comparable to 2023, as the tax benefit from the pension settlement charges and the benefit of $16 taken in 2024 related to the release of a valuation allowance resulting from improved profitability in a European subsidiary were offset by an increase in earnings in higher-tax jurisdictions.
Previous wording
For the three and six months ended June 30, 2024 compared to 2023, net income from noncontrolling interests increased from $30 to $33 and $50 to $59 primarily due to higher earnings in the Company's beverage can operations in Brazil.
Current wording
For the nine months ended September 30, 2024 compared to 2023, net income from noncontrolling interests increased primarily due to higher earnings in the Company's beverage can operations in Brazil.
Previous wording
Cash provided by operating activities increased from $293 for the six months ended June 30, 2023 to $343 for the six months ended June 30, 2024, primarily due to working capital improvements, partially offset by lower distributions from equity method investments.
Current wording
Cash provided by operating activities increased from $832 for the nine months ended September 30, 2023 to $897 for the nine months ended September 30, 2024, primarily due to higher income from operations and working capital improvements, partially offset by higher pension contributions related to the settlement of a portion of the U.S. pension plan.
Previous wording
Days sales outstanding for trade receivables, excluding the impact of unbilled receivables, was 34 days as of June 30, 2023 and June 30, 2024.
Current wording
Days sales outstanding for trade receivables, excluding the impact of unbilled receivables, decreased from 32 days as of September 30, 2023 to 29 days at September 30, 2024.
Previous wording
Inventory turnover decreased from 70 days at June 30, 2023 to 60 days at June 30, 2024, primarily due to efforts to reduce inventory levels across most businesses.
Current wording
Inventory turnover decreased from 67 days at September 30, 2023 to 60 days at September 30, 2024, primarily due to efforts to reduce inventory levels across most businesses.
Previous wording
Days outstanding for trade payables increased from 81 days at June 30, 2023 to 87 days at June 30, 2024 primarily due to lower purchases in 2023 as a result of prior year inventory builds.
Current wording
Days outstanding for trade payables increased from 78 days at September 30, 2023 to 93 days at September 30, 2024 primarily due to lower purchases in 2023 as a result of prior year inventory builds.
Previous wording
Cash used for investing activities decreased from $378 for the six months ended June 30, 2023 to $143 for the six months ended June 30, 2024, primarily due to lower capital expenditures. Additionally, the six months ended June 30, 2023 included a distribution from an equity method investment of $56.
Current wording
Cash used for investing activities decreased from $520 for the nine months ended September 30, 2023 to $208 for the nine months ended September 30, 2024, primarily due to lower capital expenditures. Additionally, the nine months ended September 30, 2023 included a distribution from an equity method investment of $56.
Previous wording
The Company currently expects capital expenditures in 2024 to be no more than $500.
Current wording
The Company currently expects capital expenditures in 2024 to be no more than $450.
Previous wording
Financing activities provided cash of $101 for the six months ended June 30, 2023 and used cash of $70 for the six months ended June 30, 2024. In May 2023, the Company issued €500 principal amount of 5.0% senior unsecured notes due 2028 and used a portion of the proceeds to pay down the senior secured credit facilities.
Current wording
In August 2024, the Company issued €600 principal amount of 4.50% senior unsecured notes due 2030 and used the proceeds to pay down the €600 principal amount of 2.625% senior unsecured notes due September 2024. In May 2023, the Company issued €500 principal amount of 5.0% senior unsecured notes due 2028. In March 2022, the Company issued $500 principal amount of 5.250% senior unsecured notes due 2030.
Previous wording
As of June 30, 2024, $836 of the Company's $1,414 of cash and cash equivalents was located outside the U.S. The Company is not currently aware of any legal restrictions under foreign law that materially impact its access to cash held outside the U.S. The Company funds its cash needs in the U.S. through a combination of cash flows from operations, dividends from certain foreign subsidiaries, borrowings under its revolving credit facility and the acceleration of cash receipts under its receivable securitization and factoring facilities. Of the cash and cash equivalents located outside the U.S., $505 was held by subsidiaries for which earnings are considered indefinitely reinvested.
Current wording
As of September 30, 2024, $1,229 of the Company's $1,738 of cash and cash equivalents was located outside the U.S. The Company is not currently aware of any legal restrictions under foreign law that materially impact its access to cash held outside the U.S. The Company funds its cash needs in the U.S. through a combination of cash flows from operations, dividends from certain foreign subsidiaries, borrowings under its revolving credit facility and the acceleration of cash receipts under its receivable securitization and factoring facilities. Of the cash and cash equivalents located outside the U.S., $433 was held by subsidiaries for which earnings are considered indefinitely reinvested.
Previous wording
The Company’s revolving credit facilities and term loan facilities also contain a total leverage ratio covenant. The leverage ratio is calculated as total net debt divided by Consolidated EBITDA (as defined in the credit agreement). Total net debt is defined in the credit agreement as total debt less cash and cash equivalents. Consolidated EBITDA is calculated as the sum of, among other things, net income attributable to Crown Holdings, net income attributable to certain of the Company's subsidiaries, income taxes, interest expense, depreciation and amortization, and certain non-cash charges. The Company’s total net leverage ratio of 3.1 to 1.0 at June 30, 2024 was in compliance with the covenant requiring a ratio no greater than 4.5 to 1.0. The ratio is calculated at the end of each quarter using debt and cash balances as of the end of the quarter and Consolidated EBITDA for the most recent twelve months. Failure to meet the financial covenant could result in the acceleration of any outstanding amounts due under the revolving credit facilities and term loan facilities.
Current wording
The Company’s revolving credit facilities and term loan facilities also contain a total leverage ratio covenant. The leverage ratio is calculated as total net debt divided by Consolidated EBITDA (as defined in the credit agreement). Total net debt is defined in the credit agreement as total debt less cash and cash equivalents. Consolidated EBITDA is calculated as the sum of, among other things, net income attributable to Crown Holdings, net income attributable to certain of the Company's subsidiaries, income taxes, interest expense, depreciation and amortization, and certain non-cash charges. The Company’s total net leverage ratio of 2.9 to 1.0 at September 30, 2024 was in compliance with the covenant requiring a ratio no greater than 4.5 to 1.0. The ratio is calculated at the end of each quarter using debt and cash balances as of the end of the quarter and Consolidated EBITDA for the most recent twelve months. Failure to meet the financial covenant could result in the acceleration of any outstanding amounts due under the revolving credit facilities and term loan facilities.
Previous wording
Long-term debt payments due in the next twelve months include the Company's €600 ($643) 2.625% senior notes in September 2024 and its €600 ($643) 3.375% senior notes in May 2025. The Company expects to have sufficient liquidity to refinance the senior notes or repay them at maturity.
Current wording
Long-term debt payments due in the next twelve months include the Company's €600 ($668) 3.375% senior notes in May 2025. The Company expects to have sufficient liquidity to refinance the senior notes or repay them at maturity.
Previous wording
In June 2024, KPS Capital Partners announced the sale of Eviosys. The Company's approximately 20% stake in Eviosys is included as part of the agreement. The closing of the transaction is anticipated by the end of 2024 and the Company expects proceeds of approximately $300, net of tax. The carrying value of the Company's investment in Eviosys was $53 as of June 30, 2024.
Current wording
In June 2024, KPS Capital Partners announced the sale of Eviosys. The Company's approximately 20% stake in Eviosys is included as part of the agreement. The closing of the transaction is anticipated by the end of 2024 and the Company expects proceeds of approximately $300, net of tax. The carrying value of the Company's investment in Eviosys was $60 as of September 30, 2024.
Previous wording
As of June 30, 2024, the Company had approximately $111 of capital commitments primarily related to Americas Beverage and European Beverage. The Company expects to fund these commitments primarily through cash flows from operations.
Current wording
As of September 30, 2024, the Company had approximately $75 of capital commitments primarily related to Americas Beverage and European Beverage. The Company expects to fund these commitments primarily through cash flows from operations.
Previous wording
(1) Includes $28 of expense related to intercompany interest with non-guarantor subsidiaries
Current wording
(1) Includes $41 of expense related to intercompany interest with non-guarantor subsidiaries
Previous wording
(1) Includes payables of $5,548 and $5,514 due to non-guarantor subsidiaries as of June 30, 2024 and December 31, 2023
Current wording
(1) Includes payables of $5,691 and $5,514 due to non-guarantor subsidiaries as of September 30, 2024 and December 31, 2023
Previous wording
(1) Includes $219 of sales to non-guarantor subsidiaries
Current wording
(1) Includes $332 of sales to non-guarantor subsidiaries
Previous wording
(2) Includes $22 of gross profit related to sales to non-guarantor subsidiaries
Current wording
(2) Includes $33 of gross profit related to sales to non-guarantor subsidiaries
Previous wording
(3) Includes $12 of income related to intercompany interest and technology royalties with non-guarantor subsidiaries
Current wording
(3) Includes $21 of expense related to intercompany interest and technology royalties with non-guarantor subsidiaries
Previous wording
(1) Includes receivables of $38 and $30 due from non-guarantor subsidiaries as of March 31, 2024 and December 31, 2023
Current wording
(1) Includes receivables of $41 and $30 due from non-guarantor subsidiaries as of September 30, 2024 and December 31, 2023
Previous wording
(2) Includes receivables of $201 and $189 due from non-guarantor subsidiaries as of March 31, 2024 and December 31, 2023
Current wording
(2) Includes receivables of $257 and $189 due from non-guarantor subsidiaries as of September 30, 2024 and December 31, 2023
Previous wording
(3) Includes payables of $25 and $35 due to non-guarantor subsidiaries as of March 31, 2024 and December 31, 2023
Current wording
(3) Includes payables of $18 and $35 due to non-guarantor subsidiaries as of September 30, 2024 and December 31, 2023
Previous wording
(4) Includes payables of $2,090 and $2,134 due to non-guarantor subsidiaries as of March 31, 2024 and December 31, 2023
Current wording
(4) Includes payables of $2,160 and $2,134 due to non-guarantor subsidiaries as of September 30, 2024 and December 31, 2023
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The decrease in the effective tax rate for the three months ended September 30, 2024 compared to 2023, was primarily due to the tax benefit from the pension settlement charges taken during the quarter, offset by an increase in earnings in higher-tax jurisdictions.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Segment income increased due to higher shipments and lower start-up costs compared to 2023.
Previous report — wording carried elsewhere
Segment income increased primarily due to improved matching of aluminum pass-through provisions as a result of lower inventory in 2024, favorable customer mix and cost savings realized as part of prior year restructuring actions.