Trane Technologies plc

Previous wording

In June 2024, we issued $500 million aggregate principal amount of 5.100% Senior Notes due 2034. Together with cash on hand, the net proceeds from the offering will be used to repay at maturity the $500 million aggregate principal amount of the outstanding 3.550% Senior Notes due in November 2024, including payment of fees, expenses, and accrued interest in connection therewith, and any remaining proceeds for general corporate purposes.

Current wording

In June 2024, we issued $500 million aggregate principal amount of 5.100% Senior Notes due 2034. Together with cash on hand, the net proceeds from the offering will be used to repay at maturity the $500 million aggregate principal amount of the outstanding 3.550% Senior Notes due in November 2024, including payment of fees, expenses, and accrued interest in connection therewith.

Previous wording

We expect conditions to remain mixed across our served end markets and geographies. Overall Commercial HVAC markets remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment. Transport refrigeration markets are experiencing lower demand as freight rates remain low, particularly in the United States. Residential markets in the United States have improved, reflecting the normalization of channel inventory across the industry and a strong start to the cooling season, while uncertainties remain from economic risks and higher interest rates.

Current wording

We expect conditions to remain mixed across our served end markets and geographies. Overall Commercial HVAC markets in Americas and EMEA remain strong due to demand for our differentiated customer driven solutions and the benefits of installing energy efficient products and decarbonizing the built environment. In China, deteriorating macro-economic conditions led to volume declines in the third quarter of 2024. Transport refrigeration markets are experiencing lower demand as freight rates remain low, particularly in the United States. Residential markets in the United States have improved, reflecting the normalization of channel inventory across the industry and a strong cooling season, while uncertainties remain from economic risks and higher interest rates.

Previous wording

Net revenuesfor the three months ended June 30, 2024 increased by 12.8%, or $602.7 million, compared with the same period in 2023, which resulted from the following:

Current wording

Net revenuesfor the three months ended September 30, 2024 increased by 11.4%, or $558.3 million, compared with the same period in 2023, which resulted from the following:

Previous wording

Selling and administrative expensesfor the three months ended June 30, 2024 increased by 28.9%, or $202.3 million compared with the same period of 2023. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of businesses acquired in 2023 and higher levels of business reinvestment. Additionally, a non-cash adjustment to contingent consideration reduced Selling and administrative expenses for the three months ended June 30, 2023 by $52.0 million. Selling and administrative expenses as a percentage of Net revenues for the three months ended June 30, 2024 increased 210 basis points from 14.9% to 17.0%.

Current wording

Selling and administrative expensesfor the three months ended September 30, 2024 increased by 19.6%, or $155.9 million compared with the same period of 2023. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of acquired businesses and higher levels of business reinvestment. Selling and administrative expenses as a percentage of Net revenues for the three months ended September 30, 2024 increased 120 basis points from 16.3% to 17.5%.

Previous wording

Interest expense for the three months ended June 30, 2024 decreased by 6.7%, or $4.1 million, compared with the same period of 2023 primarily due to lower average balances of commercial paper outstanding in the second quarter of 2024. We had no commercial paper outstanding as of June 30, 2024.

Current wording

Interest expense for the three months ended September 30, 2024 increased by 8.8%, or $5.1 million, compared with the same period of 2023 primarily due to the issuance of $500 million of 5.100% senior notes due in 2034. We had no commercial paper outstanding as of September 30, 2024 and September 30, 2023.

Previous wording

For the six months ended June 30, 2024 and June 30, 2023 our effective tax rate was 20.4% and 21.0%, respectively. The effective income tax rate for the six months ended June 30, 2024 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments, which, in aggregate have a lower effective tax rate, and includes the impact of the Organisation for Economic Co-operation and Development (OECD) tax reform initiative (Pillar Two), partially offset by U.S. state and local taxes. The effective tax rate for the six months ended June 30, 2023 was consistent with the U.S. statutory rate of 21.0% and included U.S. state and local taxes and an impairment of an equity investment, which is currently non-deductible, partially offset by excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate have a lower effective tax rate.

Current wording

For the three months ended September 30, 2024 and September 30, 2023 our effective tax rate was 18.7% and 19.8%, respectively. The effective income tax rate for the three months ended September 30, 2024 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments, a discrete tax benefit related to the filing of the U.S. Federal income tax return, and earnings in non-U.S. jurisdictions, which, in aggregate have a lower effective tax rate and includes the impact of the Organisation for Economic Co-operation and Development (OECD) tax reform initiative (Pillar Two), partially offset by U.S. state and local taxes. The effective tax rate for the three months ended September 30, 2023 was lower than the U.S. statutory rate of 21.0% primarily due to adjustments related to filing the U.S. Federal income tax return, excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate have a lower effective tax rate, partially offset by U.S. state and local taxes.

Previous wording

The increase inorganic revenue was primarily driven by higher volumes led by strong demand within both our Commercial HVAC and Residential HVAC businesses and realization of price increases for both equipment and services within our Commercial HVAC business, partially offset by the softening of transport markets.

Current wording

The increase inorganic revenue was primarily driven by higher volumes led by strong demand within both our Commercial HVAC and Residential HVAC businesses and realization of price increases for both equipment and services within our Commercial HVAC business, partially offset by softer transport markets.

Previous wording

Segment Adjusted EBITDA margin for the three months ended June 30, 2024 increased by 140 basis points to 22.8% compared to 21.4% for the same period in 2023 primarily due to price realization, gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.

Current wording

Segment Adjusted EBITDA margin for the three months ended September 30, 2024 increased by 140 basis points to 22.2% compared to 20.8% for the same period in 2023 primarily due to price realization, gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.

Previous wording

The increase inorganic revenue was primarily driven by higher volumes within our Commercial HVAC business and realization of price increases within both our Commercial HVAC and transport refrigeration businesses, partially offset by lower demand in our transport markets.

Current wording

The increase inorganic revenue was primarily driven by higher volumes within our Commercial HVAC business and realization of price increases within both our Commercial HVAC and Transport Refrigeration businesses.

Previous wording

Segment Adjusted EBITDA margin for the three months ended June 30, 2024 increased by 120 basis points to 20.3% compared to 19.1% for the same period of 2023, primarily due to favorable productivity, volume and price, partially offset by inflation and continued business reinvestment.

Current wording

Segment Adjusted EBITDA margin for the three months ended September 30, 2024 increased by 50 basis points to 21.6% compared to 21.1% for the same period of 2023, primarily due to favorable productivity, volume and price, partially offset by inflation and continued business reinvestment.

Previous wording

The decrease inorganic revenuewas primarily driven by lower volumes, partially offset by realization of price increases within our Commercial HVAC business.

Current wording

The decrease inorganic revenuewas primarily driven by lower volumes in China, partially offset by realization of price increases within our Commercial HVAC business.

Previous wording

Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023 - Consolidated Results

Current wording

Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023 - Consolidated Results

Previous wording

Net revenues for the six months ended June 30, 2024 increased by 13.8%, or $1,152.4 million, compared with the same period in 2023, which resulted from the following:

Current wording

Net revenues for the nine months ended September 30, 2024 increased by 12.9%, or $1,710.7 million, compared with the same period in 2023, which resulted from the following:

Previous wording

The increase in Net revenues was primarily driven by higher volumes related to increased end-customer demand within our reportable segments, realization of price increases and incremental revenue from acquisitions, partially offset by an unfavorable impact from foreign currency translation. Refer to the "Results by Segment" below for a discussion of Net revenues by segment.

Current wording

The increase in Net revenues was primarily driven by higher volumes related to increased end-customer demand, realization of price increases and incremental revenue from acquisitions, partially offset by an unfavorable impact from foreign currency translation. Refer to the "Results by Segment" below for a discussion of Net revenues by segment.

Previous wording

Gross profit margin for the three months ended June 30, 2024 increased 280 basis points to 36.5% compared to 33.7% for the same period of 2023 primarily due to gross productivity and price realization, partially offset by inflation.

Current wording

Gross profit margin for the nine months ended September 30, 2024 increased 280 basis points to 35.9% compared to 33.1% for the same period of 2023 primarily due to gross productivity and price realization, partially offset by inflation.

Previous wording

Selling and administrative expensesfor the six months ended June 30, 2024 increased by 24.7%, or $341.7 million, compared with the same period of 2023. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of businesses acquired in 2023 and higher levels of business reinvestment. Additionally, a non-cash adjustment to contingent consideration reduced Selling and administrative expenses for the six months ended June 30, 2023 by $49.3 million. Selling and administrative expenses as a percentage of Net revenues for the six months ended June 30, 2024 increased 150 basis points from 16.6% to 18.1%.

Current wording

Selling and administrative expensesfor the nine months ended September 30, 2024 increased by 22.8%, or $497.7 million, compared with the same period of 2023. The increase in Selling and administrative expenses was primarily driven by an increase in human capital costs related to investing in our people, higher sales commissions, incremental selling and administrative expenses of acquired businesses and higher levels of business reinvestment. Additionally, a non-cash adjustment to contingent consideration reduced Selling and administrative expenses for the nine months ended September 30, 2023 by $49.3 million. Selling and administrative expenses as a percentage of Net revenues for the nine months ended September 30, 2024 increased 150 basis points from 16.4% to 17.9%.

Previous wording

Interest expense for the six months ended June 30, 2024 decreased by 3.1%, or $3.7 million, compared with the same period of 2023 primarily due to lower average balances of commercial paper outstanding in the first half of 2024. We had no commercial paper outstanding as of June 30, 2024.

Current wording

Interest expense for the nine months ended September 30, 2024 increased by 0.8%, or $1.4 million, compared with the same period of 2023 primarily due to the issuance of $500 million of 5.100% senior notes due in 2034. We had no commercial paper outstanding as of September 30, 2024 and September 30, 2023.

Previous wording

For the three months ended June 30, 2024 and June 30, 2023 our effective tax rate was 21.2% and 22.1%, respectively. The effective income tax rate for the three months ended June 30, 2024 was consistent with the U.S. statutory rate of 21.0% primarily due to U.S. state and local taxes, partially offset by excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which, in aggregate have a lower effective tax rate and includes the impact of the Organisation for Economic Co-operation and Development (OECD) tax reform initiative (Pillar Two). The effective tax rate for the three months ended June 30, 2023 was higher than the U.S. statutory rate of 21.0% primarily due to U.S. state and local taxes and an impairment of an equity investment, which is currently non-deductible, partially offset by excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate have a lower effective tax rate.

Current wording

For the nine months ended September 30, 2024 and September 30, 2023 our effective tax rate was 19.8% and 20.5%, respectively. The effective income tax rate for the nine months ended September 30, 2024 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate have a lower effective tax rate, and includes the impact of the Organisation for Economic Co-operation and Development (OECD) tax reform initiative (Pillar Two), partially offset by U.S. state and local taxes. The effective tax rate for the nine months ended September 30, 2023 was lower than the U.S. statutory rate of 21.0% primarily due to excess tax benefits from employee share-based payments and earnings in non-U.S. jurisdictions, which in aggregate have a lower effective tax rate, partially offset by an impairment of an equity investment, and U.S. state and local taxes.

Previous wording

Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023- Segment Results

Current wording

Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023 - Segment Results

Previous wording

The following discussion compares our results for each of our three reportable segments for the six months ended June 30, 2024, compared to the six months ended June 30, 2023.

Current wording

The following discussion compares our results for each of our three reportable segments for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023.

Previous wording

The increase inorganic revenue was primarily driven by higher volumes led by strong demand within both our Commercial HVAC and Residential HVAC businesses and realization of price increases for both equipment and services within our Commercial HVAC business, partially offset by the softening of transport markets.

Current wording

The increase inorganic revenue was primarily driven by higher volumes led by strong demand within both our Commercial HVAC and Residential HVAC businesses and realization of price increases for both equipment and services within our Commercial HVAC business, partially offset by softer transport markets.

Previous wording

The increase in revenue from acquisitions includes MTA S.p.A (MTA) and Helmer Scientific Inc (Helmer) acquired in May 2023 and Nuvolo Technologies Corporation (Nuvolo) acquired in November 2023.

Current wording

The increase in revenue from acquisitions primarily relates to MTA S.p.A (MTA) and Helmer Scientific Inc (Helmer) acquired in the second quarter of 2023, Nuvolo Technologies Corporation (Nuvolo) acquired in the fourth quarter of 2023 and a Commercial HVAC sales channel acquisition in the third quarter of 2024.

Previous wording

Segment Adjusted EBITDA margin for the six months ended June 30, 2024 increased by 180 basis points to 20.8% compared to 19.0% for the same period of 2023 primarily due to price realization, gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.

Current wording

Segment Adjusted EBITDA margin for the nine months ended September 30, 2024 increased by 160 basis points to 21.3% compared to 19.7% for the same period of 2023 primarily due to price realization, gross productivity and higher volumes, partially offset by inflation and continued business reinvestment.

Previous wording

Segment Adjusted EBITDA margin for the six months ended June 30, 2024 increased by 40 basis points to 19.2% compared to 18.8% for the same period of 2023 primarily due to favorable productivity, volume and price, partially offset by inflation, continued business reinvestment and loss from a devaluation of the Egyptian pound.

Current wording

Segment Adjusted EBITDA margin for the nine months ended September 30, 2024 increased by 50 basis points to 20.1% compared to 19.6% for the same period of 2023 primarily due to favorable productivity, volume and price, partially offset by inflation, continued business reinvestment and loss from a devaluation of the Egyptian pound.

Previous wording

The increase inorganic revenuewas primarily driven by increased customer demand and realization of price increases within our Commercial HVAC business.

Current wording

The decrease inorganic revenuewas primarily driven by lower volumes in China, partially offset by realization of price increases within our Commercial HVAC business.

Previous wording

As of June 30, 2024, we had $874.6 million of cash and cash equivalents on hand, of which $668.1 million was held by non-U.S. subsidiaries. Cash and cash equivalents held by our non-U.S. subsidiaries are generally available for use in our U.S. operations via intercompany loans, equity infusions or via distributions from direct or indirectly owned non-U.S. subsidiaries for which we do not assert permanent reinvestment. As a result of the Tax Cuts and Jobs Act in 2017, additional repatriation opportunities to access cash and cash equivalents held by non-U.S. subsidiaries have been created. In general, repatriation of cash to the U.S. can be completed with no significant incremental U.S. tax. However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of June 30, 2024, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.

Current wording

As of September 30, 2024, we had $1,470.0 million of cash and cash equivalents on hand, of which $1,316.6 million was held by non-U.S. subsidiaries. Cash and cash equivalents held by our non-U.S. subsidiaries are generally available for use in our U.S. operations via intercompany loans, equity infusions or via distributions from direct or indirectly owned non-U.S. subsidiaries for which we do not assert permanent reinvestment. As a result of the Tax Cuts and Jobs Act in 2017, additional repatriation opportunities to access cash and cash equivalents held by non-U.S. subsidiaries have been created. In general, repatriation of cash to the U.S. can be completed with no significant incremental U.S. tax. However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of September 30, 2024, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.

Previous wording

We expect to pay a competitive and growing dividend. Since the launch of Trane Technologies in March 2020, we have increased our quarterly share dividend by 58%, from $0.53 to $0.84 per ordinary share, or $2.12 to $3.36 per share annualized. The first and second quarter 2024 dividends were declared and paid during the six months ended June 30, 2024, and the third quarter 2024 dividend was declared in June 2024 to be paid in September 2024.

Current wording

We expect to pay a competitive and growing dividend. Since the launch of Trane Technologies in March 2020, we have increased our quarterly share dividend by 58%, from $0.53 to $0.84 per ordinary share, or $2.12 to $3.36 per share annualized. The first, second, and third quarter 2024 dividends were declared and paid during the nine months ended September 30, 2024.

Previous wording

Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. In February 2022, our Board of Directors authorized a share repurchase program of up to $3.0 billion of our ordinary shares (2022 Authorization). During the six months ended June 30, 2024, we repurchased and canceled approximately $624 million of our ordinary shares, leaving $1.9 billion remaining under the 2022 Authorization. Additionally, in July 2024, we repurchased approximately $107 million of our ordinary shares under the 2022 Authorization.

Current wording

Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. In February 2022, our Board of Directors authorized a share repurchase program of up to $3.0 billion of our ordinary shares (2022 Authorization). During the nine months ended September 30, 2024, we repurchased and canceled approximately $926 million of our ordinary shares, leaving $1.6 billion remaining under the 2022 Authorization. Additionally, in October 2024, we repurchased approximately $105 million of our ordinary shares under the 2022 Authorization.

Previous wording

As of June 30, 2024, our short-term obligations primarily consist of current maturities of $499.8 million and $149.7 million of long-term debt that matures in November 2024 and June 2025, respectively, and $295.0 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, we are obligated to repay in whole or in part, at the holder’s option, the outstanding principal amount (plus accrued and unpaid interest) of the debentures held by the holder. Holders who had the option to exercise puts up to $37.2 million for settlement in February 2024 did not exercise such option. In the months of September and October 2024, in accordance with notice requirements as specified in the offering documents, holders will have the option to elect to exercise puts up to $257.8 million for settlement in November 2024. We also maintain a commercial paper program which is used for general corporate purposes. Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion. We had no outstanding balance under the commercial paper program at June 30, 2024 and December 31, 2023. See Note 6, "Debt and Credit Facilities," to the Condensed Consolidated Financial Statements for additional information regarding the terms of our short-term obligations.

Current wording

As of September 30, 2024, our short-term obligations primarily consist of current maturities of $500.0 million and $149.7 million of long-term debt that matures in November 2024 and June 2025, respectively, and $295.0 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, we are obligated to repay in whole or in part, at the holder’s option, the outstanding principal amount (plus accrued and unpaid interest) of the debentures held by the holder. Holders who had the option to exercise puts up to $37.2 million for settlement in February 2024 did not exercise such option. In October 2024, in accordance with notice requirements as specified in the offering documents, holders had the option to elect to exercise puts up to $257.8 million for settlement in November 2024. As of October 30, 2024, no put options were exercised. We also maintain a commercial paper program which is used for general corporate purposes. Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion. We had no outstanding balance under the commercial paper program at September 30, 2024 and December 31, 2023. See Note 6, "Debt and Credit Facilities," to the Condensed Consolidated Financial Statements for additional information regarding the terms of our short-term obligations.

Previous wording

The following table reflects the major categories of cash flows for the six months ended June 30. For additional details, see the Condensed Consolidated Statements of Cash Flows in the Condensed Consolidated Financial Statements.

Current wording

The following table reflects the major categories of cash flows for the nine months ended September 30. For additional details, see the Condensed Consolidated Statements of Cash Flows in the Condensed Consolidated Financial Statements.

Previous wording

Net cash provided by continuing operating activities for the six months ended June 30, 2024 was $958.6 million, of which Net earnings provided $1,457.5 million after adjusting for non-cash transactions. Net cash provided by continuing operating activities for the six months ended June 30, 2023 was $548.1 million, of which Net earnings provided $1,143.1 million after adjusting for non-cash transactions. The year-over-year increase in net cash from continuing operating activities was primarily due to higher net earnings and an improved cash conversion cycle.

Current wording

Net cash provided by continuing operating activities for the nine months ended September 30, 2024 was $2,272.2 million, of which Net earnings provided $2,342.3 million after adjusting for non-cash transactions. Net cash provided by continuing operating activities for the nine months ended September 30, 2023 was $1,482.6 million, of which Net earnings provided $1,895.4 million after adjusting for non-cash transactions. The year-over-year increase in net cash from continuing operating activities was primarily due to higher net earnings and an improved cash conversion cycle.

Previous wording

Cash flows from investing activities represent inflows and outflows regarding the purchase and sale of assets. Primary activities associated with these items include capital expenditures, proceeds from the sale of property, plant and equipment, acquisitions, funding of joint ventures and other equity investments and purchases and sales of short-term investments. During the six months ended June 30, 2024, net cash used in investing activities from continuing operations was $626.6 million. The primary driver of the usage was attributable to purchases of short-term investments of $450.0 million as a result of the issuance of 5.100% Senior Notes due 2034 and capital expenditures of $156.7 million. During the six months ended June 30, 2023, net cash used in investing activities from continuing operations was $647.0 million. The primary driver of the usage was attributable to the acquisition of businesses for $506.2 million, net of cash acquired and capital expenditures of $134.0 million.

Current wording

Cash flows from investing activities represent inflows and outflows regarding the purchase and sale of assets. Primary activities associated with these items include capital expenditures, proceeds from the sale of property, plant and equipment, acquisitions, funding of joint ventures and other equity investments and purchases and sales of short-term investments. During the nine months ended September 30, 2024, net cash used in investing activities from continuing operations was $886.6 million. The primary drivers of the usage were attributable to purchases of short-term investments of $450.0 million as a result of the issuance of 5.100% Senior Notes due 2034, capital expenditures of $245.0 million and acquisitions of businesses of $179.6 million, net of cash acquired. During the nine months ended September 30, 2023, net cash used in investing activities from continuing operations was $736.1 million. The primary drivers of the usage were attributable to the acquisition of businesses for $510.2 million, net of cash acquired and capital expenditures of $217.2 million.

Previous wording

Cash flows from financing activities represent inflows and outflows that account for external activities affecting equity and debt. Primary activities associated with these actions include paying dividends to shareholders, repurchasing our own shares, issuing our stock and debt transactions. During the six months ended June 30, 2024, net cash used in financing activities from continuing operations was $504.3 million. The primary drivers of the outflow related to the repurchase of $624.4 million in ordinary shares and dividends paid to ordinary shareholders of $379.4 million, partially offset by proceeds from the issuance of 5.100% Senior Notes due 2034 during the period of $498.5 million, which were used to purchase short-term investments of $450.0 million. During the six months ended June 30, 2023, net cash used in financing activities from continuing operations was $436.4 million. The primary drivers of the outflow related to dividends paid to ordinary shareholders of $341.4 million and the repurchase of $300.0 million in ordinary shares, partially offset by borrowings from commercial paper during the period. In addition, we received $699.1 million in proceeds from the issuance of 5.250% Senior Notes due March 2033 which was offset by the redemption of $707.5 million of Senior Notes due June 2023.

Current wording

Cash flows from financing activities represent inflows and outflows that account for external activities affecting equity and debt. Primary activities associated with these actions include paying dividends to shareholders, repurchasing our own shares, and issuing our stock and debt transactions. During the nine months ended September 30, 2024, net cash used in financing activities from continuing operations was $990.2 million. The primary drivers of the outflow related to the repurchase of $926.1 million in ordinary shares and dividends paid to ordinary shareholders of $568.8 million, partially offset by proceeds from the issuance of 5.100% Senior Notes due 2034 during the period of $498.5 million, which were used to purchase short-term investments of $450.0 million. During the nine months ended September 30, 2023, net cash used in financing activities from continuing operations was $952.1 million. The primary drivers of the outflow related to dividends paid to ordinary shareholders of $513.0 million and the repurchase of $459.8 million in ordinary shares, partially offset by borrowings from commercial paper during the period. In addition, we received $699.1 million in proceeds from the issuance of 5.250% Senior Notes due March 2033 which was offset by the redemption of $708.8 million of Senior Notes due June 2023.

Previous wording

A reconciliation of Net cash provided by (used in) continuing operating activities to free cash flow for the six months ended June 30 is as follows:

Current wording

A reconciliation of Net cash provided by (used in) continuing operating activities to free cash flow for the nine months ended September 30 is as follows:

Previous wording

In addition, we monitor the impact of market conditions on our defined benefit plans on a regular basis. None of our defined benefit pension plans have experienced a significant impact on their liquidity due to market volatility. The Company currently projects that it will contribute a total of approximately $59 million to our enterprise plans worldwide in 2024. For further details on pension plan activity, see Note 9, "Pensions and Postretirement Benefits Other than Pensions," to the Condensed Consolidated Financial Statements.

Current wording

In addition, we monitor the impact of market conditions on our defined benefit plans on a regular basis. None of our defined benefit pension plans have experienced a significant impact on their liquidity due to market volatility. The Company currently projects that it will contribute a total of approximately $62 million to our enterprise plans worldwide in 2024. For further details on pension plan activity, see Note 9, "Pensions and Postretirement Benefits Other than Pensions," to the Condensed Consolidated Financial Statements.

Previous wording

Each subsidiary debt issuer and guarantor is owned 100% directly or indirectly by the Parent Company. Each guarantee is full and unconditional, and provided on a joint and several basis. There are no significant restrictions of the Parent Company, or any guarantor, to obtain funds from its subsidiaries, such as provisions in debt agreements that prohibit dividend payments, loans or advances to the parent by a subsidiary. The following tables present summarized financial information for the Parent Company and subsidiary debt issuers and guarantors on a combined basis (together, "obligor group") after elimination of intercompany transactions and balances based on the Company’s legal entity ownerships and guarantees outstanding at June 30, 2024. Our obligor groups as of June 30, 2024 were as follows: Obligor group 1 consists of Plc, TT Holdings, TT International, TT Global II, TT Americas, TTFL, TTC HoldCo and TTC; Obligor group 2 consists of Plc, TTFL and TTC.

Current wording

Each subsidiary debt issuer and guarantor is owned 100% directly or indirectly by the Parent Company. Each guarantee is full and unconditional, and provided on a joint and several basis. There are no significant restrictions of the Parent Company, or any guarantor, to obtain funds from its subsidiaries, such as provisions in debt agreements that prohibit dividend payments, loans or advances to the parent by a subsidiary. The following tables present summarized financial information for the Parent Company and subsidiary debt issuers and guarantors on a combined basis (together, "obligor group") after elimination of intercompany transactions and balances based on the Company’s legal entity ownerships and guarantees outstanding at September 30, 2024. Our obligor groups as of September 30, 2024 were as follows: Obligor group 1 consists of Plc, TT Holdings, TT Global II, TT International, TT Americas, TTFL, TTC HoldCo and TTC; Obligor group 2 consists of Plc, TTFL and TTC.

Previous wording

Management believes there have been no significant changes during the six months ended June 30, 2024, to the items that we disclosed as our critical accounting estimates in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

Management believes there have been no significant changes during the nine months ended September 30, 2024, to the items that we disclosed as our critical accounting estimates in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.