John Bean Technologies CORP
For the period ended Sep 30, 2024. Filed Oct 23, 2024.
View on SEC.govAbout this filing
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 Oct 23, 2024
JBTM$128.35+1.2%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 2024-07-31.
0001433660-24-000035
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-23.
0001433660-24-000048
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 140 previous paragraphs and 142 current paragraphs.
102 unchanged; 33 reworded; 7 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 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 (7)
Current report
We achieved another strong quarter in terms of orders, highlighting the benefit of our diverse end market exposure. We saw continued recovery in demand from global poultry customers, as well as strength in demand from the fruit and vegetable, pet food, warehouse automation, and pharmaceutical markets. As expected, we delivered year-over-year growth in revenue and margins driven primarily by higher volume, strategic sourcing cost initiatives, and restructuring savings.
Current report
We have obtained approval from our Board of Directors to settle all outstanding obligations of our U.S. qualified defined benefit pension plan (the “Plan”), through a combination of voluntary lump sum payments and the purchase of an annuity contract. As of September 30, 2024, we have pre-tax accumulated losses related to Plan of $171 million reported as accumulated other comprehensive loss in the balance sheet. Voluntary lump sum payment offered to the Plan participants is expected to result in recognition of $28 million to $32 million of this accumulated loss as non-cash, pre-tax pension expense in the fourth quarter. The remaining portion of the accumulated loss of $142 million to $148 million will be recognized upon final settlement of the Plan via the purchase of an annuity contract, expected to be in the first quarter of 2025. Given our fully funded status, the final settlement of the Plan is expected to have a minor cash flow impact.
Current report
Income tax provision
Current report
NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
Current report
Income tax provision
Current report
During October 2024, we successfully secured commitments for our deal-contingent financing structure, consisting of a 5-year, amended and restated $1.8 billion revolving credit facility and a 7-year, $900 million Senior Secured Term Loan B (the "Term Loan B"). This is consistent with our plan to establish a long-term financing structure. Upon the Marel Transaction closing, we will terminate the €1.9 billion Bridge Credit Agreement.
Current report
The revolving credit facility will retain the same pricing grid as our existing revolving credit facility. The Term Loan B will have secured pricing of SOFR plus 225 basis points. This pricing structure will step down to SOFR plus 200 basis points once leverage is below 3.25x. Additionally, the Term Loan B includes a ticking fee with no fees to be paid for the first 60 days following allocation of commitments, which occurred on October 9, 2024. We expect to utilize our available cash, proceeds from the Term Loan B, and borrowings on the revolving credit facility to fund the cash portion of the Marel Transaction, refinance Marel's existing debt, and pay transaction related fees and expenses. As a result, we expect to have ample liquidity at the time of the transaction close to support the ongoing operations of the combined company.
Removed paragraphs (5)
Previous report
•the possibility that our stockholders may not approve the issuance of new shares of common stock in the Offer;
Previous report
Our orders were strong in the second quarter driven by an initial recovery in equipment demand from North American poultry customers along with continued strength for demand in warehouse automation and fruit and vegetable processing. Second quarter results were impacted by a shortfall in revenue, resulting in part from the performance of shorter cycle orders and a system upgrade that temporarily delayed our ability to make progress on overtime projects and process aftermarket parts orders. With the system implementation now stabilized and our backlog conversion, we are expecting double-digit sequential growth in the third quarter of 2024.
Previous report
Income tax (benefit) provision
Previous report
SIX MONTHS ENDED JUNE 30, 2024 AND 2023
Previous report
Income tax (benefit) provision
Reworded paragraphs (33)
Previous wording
For the full year, we expect to deliver year over year revenue growth driven by our strong backlog, continued recovery in equipment demand in the North American poultry market, and our organic growth initiatives. Our margins are also expected to improve year over year as we realize benefits from our strategic sourcing initiatives, continuous improvement initiatives, and higher volume flow through.
Current wording
For the full year 2024, we continue to expect to deliver year-over-year revenue growth driven by our strong backlog, continued recovery in equipment demand in the global poultry market, and our organic growth initiatives. Our margins are also expected to improve year over year as we continue to realize benefits from our strategic sourcing and continuous improvement initiatives along with higher volume flow through.
Previous wording
(1) The key measures reviewed by the chief operating decision maker ("CODM") to evaluate our performance are most notably Adjusted EBITDA from continuing operations and Adjusted EBITDA % from continuing operations. For additional information, refer to the 'Reconciliation of Non-GAAP Measures' section below.
Current wording
(1) The key measures reviewed by the chief operating decision maker ("CODM") to evaluate our performance are most notably Adjusted EBITDA from continuing operations and Adjusted EBITDA margin from continuing operations. For additional information, refer to the 'Reconciliation of Non-GAAP Measures' section below.
Previous wording
Total revenue for the three months ended June 30, 2024 decreased $25.4 million or 5.9% compared to the same period in 2023. Organic revenue decreased $21.2 million and foreign currency translation was unfavorable by $4.2 million in the period compared to the prior year. The decrease in organic revenue was primarily due to the performance of shorter cycle orders and a system upgrade that temporarily delayed our ability to make progress on overtime projects and process aftermarket parts orders. This resulted in a lower volume for both recurring and non-recurring revenue compared to the prior year.
Current wording
Total revenue for the three months ended September 30, 2024 increased $50.2 million or 12.4% compared to the same period in 2023. Organic revenue increased $49.9 million and foreign currency translation was favorable by $0.3 million in the period compared to the prior year. The increase in organic revenue was the result of higher pricing as well as an increase in volume for both recurring and non-recurring revenue compared to the prior year.
Previous wording
Gross profit margin increased 120 bps to 35.6% compared to 34.4% in the same period last year. This increase was driven primarily by higher pricing as well as savings from our restructuring plan and sourcing initiatives. This was partially offset by material cost inflation, lower volume, input cost inflation, and a stronger mix of non-recurring revenue compared to prior year, which tends to have lower margins than recurring revenue.
Current wording
Gross profit margin slightly improved to 36.1% compared to 35.9% in the same period last year. This increase was driven primarily by higher pricing and volume as well as savings from our 2022/2023 restructuring plan and sourcing initiatives. This was partially offset by material cost inflation and a stronger mix of non-recurring revenue compared to prior year, which tends to have lower margins than recurring revenue.
Previous wording
Selling, general and administrative expense increased $15.8 million from prior year, and as a percent of revenue increased by 540 bps to 28.9% compared to 23.5% in the same period last year. This increase is primarily the result of an increase in M&A related costs for the Marel Transaction and in long term incentive compensation expense accruals, partially offset by savings from our restructuring program.
Current wording
Selling, general and administrative expense increased $15.5 million from prior year, and as a percent of revenue increased by 70 bps to 25.8% compared to 25.1% in the same period last year. This increase was primarily the result of M&A related costs specific to the Marel Transaction of $12.9 million incurred during the quarter and higher operating costs, partially offset by savings from our restructuring program.
Previous wording
Interest income increased $4.6 million compared to the same period in 2023. This increase was due to interest income on cash on hand from the proceeds from the sale of the AeroTech business which was completed during the third quarter of 2023.
Current wording
Interest income increased $1.3 million compared to the same period in 2023. This increase was due to interest income on cash on hand from the proceeds from the sale of the AeroTech business which was completed during the third quarter of 2023.
Previous wording
Interest expense decreased $4.1 million compared to same period last year. This decrease is due to the Company having a lower average debt balance and lower weighted average interest rate, including the impacts of the interest rate swaps, during the quarter compared to the same period in 2023.
Current wording
Interest expense decreased $1.4 million compared to same period last year. This decrease is due to the Company having a lower average debt balance and lower weighted average interest rate, including the impacts of the interest rate swaps, during the quarter compared to the same period in 2023.
Previous wording
The Company's tax rate from continuing operations was 8.2% for the six months ended June 30, 2024 compared to 22.5% in the same period in 2023. The tax rate for the six months ended June 30, 2024 was favorably impacted by discrete items totaling $8.2 million, primarily driven by a non-recurring deferred tax benefit related to an internal reorganization. There were no significant discrete items recorded for the six months ended June 30, 2023.
Current wording
The Company's tax rate from continuing operations was 20.0% for the three months ended September 30, 2024 compared to 12.8% in the same period in 2023. The tax rate for the three months ended September 30, 2024 was favorably impacted by discrete items totaling $1.0 million, primarily driven by benefits from prior year tax returns. The tax rate for the three months ended September 30, 2023 was favorably impacted by discrete items totaling $2.9 million, primarily driven by benefits from prior year tax returns.
Previous wording
Income from continuing operations for the six months ended June 30, 2024 was $53.4 million compared to $45.5 million for the same period in 2023, representing an increase of $7.9 million. Adjusted EBITDA was $121.1 million for the six months ended June 30, 2024 compared to $125.8 million during the same period in 2023, representing a decrease of $4.7 million. The decrease in Adjusted EBITDA was primarily driven by higher selling, general and administrative expense, excluding the impacts of our depreciation, amortization, and acquisition and integration costs, partially offset by a higher gross profit.
Current wording
Income from continuing operations for the three months ended September 30, 2024 was $38.1 million compared to $31.1 million for the same period in 2023, representing an increase of $7.0 million. Adjusted EBITDA was $81.7 million for the three months ended September 30, 2024 compared to $66.3 million during the same period in 2023, representing an increase of $15.4 million. The increase in Adjusted EBITDA was primarily driven by higher gross profit, partially offset by higher selling, general and administrative expense, excluding the impacts of our depreciation, amortization, and acquisition, and integration costs.
Previous wording
For the six months ended June 30, 2024 and 2023, we recognized income from discontinued operations, net of income taxes, of $0.1 million and $14.4 million, respectively. Discontinued operations consists of the results of operations of the AeroTech business, the sale of which was completed during the third quarter of 2023.
Current wording
For the three months ended September 30, 2024, we recognized income from discontinued operations, net of income taxes, of $0.8 million. For the three months ended September 30, 2023, we recognized income from discontinued operations, net of income taxes, of $410.5 million, which included the gain on the sale of AeroTech of $444.1 million, net of tax, that was completed during the third quarter of 2023.
Previous wording
(1) The key measures reviewed by the CODM to evaluate our performance are most notably Adjusted EBITDA from continuing operations and Adjusted EBITDA % from continuing operations. For additional information, refer to the 'Reconciliation of Non-GAAP Measures' section below.
Current wording
(1) The key measures reviewed by the CODM to evaluate our performance are most notably Adjusted EBITDA from continuing operations and Adjusted EBITDA margin from continuing operations. For additional information, refer to the 'Reconciliation of Non-GAAP Measures' section below.
Previous wording
Total revenue for the six months ended June 30, 2024 decreased $21.6 million or 2.6% compared to the same period in 2023. Organic revenue decreased $17.2 million and foreign currency translation was unfavorable by $4.5 million in the period compared to the prior year. The decrease in organic revenue was primarily due to the performance of shorter cycle orders and a system upgrade that temporarily delayed our ability to make progress on overtime projects and process aftermarket parts orders. This resulted in a lower volume for both recurring and non-recurring revenue compared to the prior year.
Current wording
Total revenue for the nine months ended September 30, 2024 increased $28.6 million or 2.3% compared to the same period in 2023. Organic revenue increased $32.4 million and foreign currency translation was unfavorable by $3.8 million in the period compared to the prior year. The increase in organic revenue was primarily the result of higher pricing as well as an increase in volume for non-recurring revenue, partially offset by a decrease in volume for recurring revenue.
Previous wording
Gross profit margin increased 140 bps to 35.7% compared to 34.3% in the same period last year. This increase was driven primarily by higher volume and pricing as well as savings from our restructuring plan and sourcing initiatives. This was partially offset by input cost inflation and a stronger mix of non-recurring revenue compared to prior year, which tends to have lower margins than recurring revenue.
Current wording
Gross profit margin increased 100 bps to 35.8% compared to 34.8% in the same period last year. This increase was driven primarily by higher volume and pricing as well as savings from our 2022/2023 restructuring plan and sourcing initiatives. This was partially offset by input cost inflation and a stronger mix of non-recurring revenue compared to prior year, which tends to have lower margins than recurring revenue.
Previous wording
Selling, general and administrative expense increased $22.2 million compared to the same period in the prior year. Selling, general and administrative expense as a percentage of revenue increased 350 bps to 28.5% compared to 25.0% in the same period last year. This increase is primarily the result of an increase in M&A related costs for the Marel Transaction as well as long term incentive compensation expense accruals. This increase was partially offset by savings from our restructuring program as well as a decrease in expenses related to the OmniBlu TMplatform year-over-year.
Current wording
Selling, general and administrative expense increased $37.7 million compared to the same period in the prior year. Selling, general and administrative expense as a percentage of revenue increased 240 bps to 27.5% compared to 25.1% in the same period last year. This increase is primarily the result the result of M&A related costs specific to the Marel Transaction of $32.6 million and higher long term incentive compensation expense accruals. This increase was partially offset by savings from our restructuring program as well as a decrease in expenses related to the OmniBlu TMplatform year-over-year.
Previous wording
Pension expense, other than service cost increased $1.6 million compared to the same period in the prior year. This increase was primarily due to lower expected return on pension assets in 2024 compared to prior year.
Current wording
Pension expense, other than service cost increased $2.4 million compared to the same period in the prior year. This increase was primarily due to lower expected return on pension assets in 2024 compared to prior year.
Previous wording
Interest income increased $9.3 million compared to the same period in 2023. This increase was due to interest income on cash on hand from the proceeds from the sale of the AeroTech business, which was completed during the third quarter of 2023.
Current wording
Interest income increased $10.6 million compared to the same period in 2023. This increase was due to interest income on cash on hand from the proceeds from the sale of the AeroTech business, which was completed during the third quarter of 2023.
Previous wording
Interest expense decreased $8.7 million compared to same period last year. This decrease was due to the Company having a lower average debt balance and lower weighted average interest rate, including the impacts of the interest rate swaps, in the first half of 2024 compared to the same period in 2023.
Current wording
Interest expense decreased $10.1 million compared to same period last year. This decrease was due to the Company having a lower average debt balance and lower weighted average interest rate, including the impacts of the interest rate swaps, in 2024 compared to the same period in 2023.
Previous wording
The Company's tax rate from continuing operations was (12.0)% for the three months ended June 30, 2024 compared to 23.2% in the same period in 2023. The tax rate for the three months ended June 30, 2024 was favorably impacted by discrete items totaling $9.2 million, primarily driven by a non-recurring deferred tax benefit related to an internal reorganization. There were no significant discrete items recorded for the three months ended June 30, 2023.
Current wording
The Company's tax rate from continuing operations was 13.5% for the nine months ended September 30, 2024 compared to 18.8% in the same period in 2023. The tax rate for the nine months ended September 30, 2024 was favorably impacted by discrete items totaling $9.2 million, primarily driven by a non-recurring deferred tax benefit related to an internal reorganization. The tax rate for the nine months ended September 30, 2023 was favorably impacted by discrete items totaling $2.7 million, primarily driven by benefits from prior year tax returns.
Previous wording
Income from continuing operations for the three months ended June 30, 2024 increased to $30.7 million compared to $28.4 million for the same period in 2023, representing an increase of $2.3 million. Adjusted EBITDA was $63.7 million for the three months ended June 30, 2024 compared to $71.4 million during the same period in 2023, representing a decrease of $7.7 million. The decrease in Adjusted EBITDA was primarily driven by lower gross profit and higher selling, general and administrative expense, excluding the impacts of our depreciation, amortization, and acquisition, and integration costs.
Current wording
Income from continuing operations for the nine months ended September 30, 2024 was $91.5 million compared to $76.6 million for the same period in 2023, representing an increase of $14.9 million. Adjusted EBITDA was $202.8 million for the nine months ended September 30, 2024 compared to $192.1 million during the same period in 2023, representing an increase of $10.7 million. The increase in Adjusted EBITDA was primarily driven by higher gross profit, partially offset by higher selling, general and administrative expense, excluding the impacts of our depreciation, amortization, and acquisition and integration costs.
Previous wording
There was no income from discontinued operations for the three months ended June 30, 2024. For the three months ended June 30, 2023, we recognized income from discontinued operations, net of income taxes, of $4.3 million, which consisted of the results of operations of the AeroTech business.
Current wording
For the nine months ended September 30, 2024, we recognized income from discontinued operations, net of income taxes, of $0.9 million. For the nine months ended September 30, 2023, we recognized income from discontinued operations net of income taxes, of $424.9 million, which included the gain on the sale of AeroTech of $444.1 million, net of tax, that was completed during the third quarter of 2023.
Previous wording
In the third quarter of 2022, the Company implemented a restructuring plan (the "2022/2023 restructuring plan") to optimize the overall cost structure for the Company on a global basis. The initiatives under this plan included streamlining operations and enhancing our general and administrative infrastructure. The Company recognized restructuring charges of $18.1 million, net of a cumulative release of the related liability of $7.2 million. The 2022/2023 restructuring plan was completed as of March 31, 2024.
Current wording
In the third quarter of 2022, the Company implemented a restructuring plan (the "2022/2023 restructuring plan") to optimize the overall cost structure for the Company on a global basis. The initiatives under this plan included streamlining operations and enhancing our general and administrative infrastructure. The Company recognized restructuring charges of $17.9 million, net of a cumulative release of the related liability of $7.5 million. The 2022/2023 restructuring plan was completed as of March 31, 2024.
Previous wording
Cumulative savings for the 2022/2023 restructuring plan is in the range of $19.0 million to $20.0 million. Savings expected to be realized during the remainder of 2024 are in the range of $2.0 million to $3.0 million.
Current wording
Cumulative savings for the 2022/2023 restructuring plan is expected to be $20.0 million. Savings expected to be realized during the remainder of 2024 are approximately $1.0 million.
Previous wording
For the six months ended June 30, 2024, we had operating cash flows from continuing operations of $32.0 million. For full year 2024, we expect to generate positive cash flows. Our liquidity as of June 30, 2024, or cash plus borrowing ability under our revolving credit facilities, was $1.2 billion.
Current wording
For the nine months ended September 30, 2024, we had operating cash flows from continuing operations of $103.9 million. For full year 2024, we expect to generate positive cash flows. Our liquidity as of September 30, 2024, or cash plus borrowing ability under our existing revolving credit facilities, was $1.3 billion.
Previous wording
The cash flows generated by our continuing operations and borrowings are expected to be sufficient to satisfy our principal cash requirements that include our working capital needs, new product development, restructuring expenses, capital expenditures, income taxes, debt repayments, dividends, periodic pension contributions, and other financing arrangements.
Current wording
The cash flows generated by our continuing operations are expected to be sufficient to satisfy our principal cash requirements that include our working capital needs, new product development, restructuring expenses, capital expenditures, income taxes, debt repayments, dividends, periodic pension contributions, and other financing arrangements.
Previous wording
We expect to use the cash on our balance sheet for our stated capital allocation priorities, as well as partially fund the Marel transaction and pay any related debt financing costs and anticipated pre-close transaction costs of approximately $40 million expected to be incurred in 2024. We expect to incur additional financing and transaction costs in the event the Marel Transaction closes.
Current wording
We expect to use the cash on our balance sheet for our stated capital allocation priorities, as well as partially fund the Marel transaction and pay any related debt financing costs and anticipated pre-close transaction costs. We expect to incur approximately $40 million of pre-close transaction costs during 2024, and will incur additional financing and transaction costs in the event the Marel Transaction closes.
Previous wording
As of June 30, 2024, we had $474.3 million of cash and cash equivalents, $34.0 million of which was held by our foreign subsidiaries. Although certain funds are considered permanently invested in our foreign subsidiaries, we are not presently aware of any restriction on the repatriation of these funds. We maintain significant operations outside of the U.S., and many of our uses of cash for working capital, capital expenditures and business acquisitions arise in these foreign jurisdictions. If these funds were needed to fund our operations or satisfy obligations in the U.S., they could be repatriated and their repatriation into the U.S. could cause us to incur additional U.S. income tax and foreign withholding taxes. The foreign withholding taxes on these repatriations to the U.S. would potentially be partially offset by U.S. foreign tax credits.
Current wording
As of September 30, 2024, we had $534.5 million of cash and cash equivalents, $44.5 million of which was held by our foreign subsidiaries. Although certain funds are considered permanently invested in our foreign subsidiaries, we are not presently aware of any restriction on the repatriation of these funds. We maintain significant operations outside of the U.S., and many of our uses of cash for working capital, capital expenditures and business acquisitions arise in these foreign jurisdictions. If these funds were needed to fund our operations or satisfy obligations in the U.S., they could be repatriated and their repatriation into the U.S. could cause us to incur additional U.S. income tax and foreign withholding taxes. The foreign withholding taxes on these repatriations to the U.S. would potentially be partially offset by U.S. foreign tax credits.
Previous wording
Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures immediately in the year incurred and required taxpayers to amortize such expenditures in the U.S. over five years. As a result, we expect an adverse impact of approximately $10 million to our cash from continuing operations in 2024.
Current wording
Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures immediately in the year incurred and required taxpayers to amortize such expenditures in the U.S. over five years. As a result, we expect an adverse impact of approximately $9 million to our cash from continuing operations in 2024.
Previous wording
Cash flows for the six months ended June 30, 2024 and 2023 were as follows:
Current wording
Cash flows for the nine months ended September 30, 2024 and 2023 were as follows:
Previous wording
Cash provided by continuing operating activities during the six months ended June 30, 2024 was $32.0 million, representing a $30.6 million decrease compared to the same period in 2023. This decrease was driven primarily by lower customer collections of advanced payments and trade receivables and higher inventory purchases during the period, partially offset by lower payments made on our accounts payable.
Current wording
Cash provided by continuing operating activities during the nine months ended September 30, 2024 was $103.9 million, representing a $8.3 million increase compared to the same period in 2023. This increase was driven primarily by a higher income from continuing operations, lower payments as a result of improved vendor terms and lower contributions on our pension plans. These increases were partially offset by lower customer collections of advanced payments and trade receivables and higher inventory purchases during the period.
Previous wording
Cash required by investing activities during the six months ended June 30, 2024 was $22.7 million, a decrease of $12.2 million compared to the same period in 2023. The decrease is primarily driven by lower spending on capital expenditures for our OmniBlu TMplatform development as we completed the initial development and deployment in 2023.
Current wording
Cash required by investing activities was $31.8 million during the nine months ended September 30, 2024, compared to cash provided of $612.7 million during the same period in 2023. The cash outflow during the period was driven primarily by spending on capital expenditures, which was lower compared to the prior period as we completed the initial development and deployment of our OmniBlu TM platform in 2023. The prior year cash provided was primarily comprised of the proceeds from the sale of AeroTech, partially offset by the purchase of marketable securities.
Previous wording
Cash required by financing activities was $16.4 million during the six months ended June 30, 2024, compared to cash required of $40.8 million during the same period in 2023. The cash outflow in the period was driven by the payment of debt issuance costs related to the Bridge Credit Agreement entered into in Q2 2024, as well as taxes withheld on stock-based compensation awards which were higher in the current period compared to the same period in 2023. The prior year cash required included debt repayments for our revolving credit facility that did not recur in 2024.
Current wording
Cash required by financing activities was $23.1 million during the nine months ended September 30, 2024, compared to cash required of $345.7 million during the same period in 2023. The decrease in cash outflow in the period was driven by the debt repayments for our revolving credit facility in the prior period that did not recur in 2024, partially offset by the payment of debt issuance costs related to the Bridge Credit Agreement entered into during the second quarter of 2024 and higher payment of taxes withheld on stock-based compensation awards.
Previous wording
As of June 30, 2024, we had $250.0 million drawn on and $1.0 billion of availability under the revolving credit facility. Our ability to use this revolving credit facility is limited by the leverage ratio covenant described below.
Current wording
As of September 30, 2024, we had $250.0 million drawn on and $1.0 billion of availability under the revolving credit facility. Our ability to use this revolving credit facility is limited by the leverage ratio covenant referenced below.
Previous wording
Our credit agreement includes restrictive covenants that, if not met, could lead to a renegotiation of our credit lines, a requirement to repay our borrowings and/or a significant increase in our cost of financing. Restrictive covenants include a minimum interest coverage ratio, a maximum leverage ratio, as well as certain events of default. As of June 30, 2024, we were in compliance with all covenants in our credit agreement. We expect to remain in compliance with all covenants in the foreseeable future.
Current wording
Our credit agreement includes restrictive covenants that, if not met, could lead to a renegotiation of our credit lines, a requirement to repay our borrowings and/or a significant increase in our cost of financing. Restrictive covenants include a minimum interest coverage ratio, a maximum leverage ratio, as well as certain events of default. As of September 30, 2024, we were in compliance with all covenants in our credit agreement. We expect to remain in compliance with all covenants.