O-I Glass Inc DE

Previous wording

Financial information for the three months ended March 31, 2024 and 2023 regarding the Company’s reportable segments is as follows (dollars in millions):

Current wording

Financial information for the three and six months ended June 30, 2024 and 2023 regarding the Company’s reportable segments is as follows (dollars in millions):

Previous wording

Earnings before income taxes were $153 million lower in the first quarter of 2024 compared to the first quarter of 2023. This decrease was due to lower segment operating profit and higher interest expense, partially offset by lower retained corporate and other costs.

Current wording

Earnings before income taxes were $50 million lower in the second quarter of 2024 compared to the second quarter of 2023. This decrease was primarily due to lower segment operating profit, partially offset by lower interest expense and retained corporate and other costs.

Previous wording

Segment operating profit for reportable segments in the first quarter of 2024 was $163 million lower compared to the same period of 2023, primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand.

Current wording

Segment operating profit for reportable segments in the second quarter of 2024 was $93 million lower compared to the same quarter of 2023, primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand.

Previous wording

Net interest expense for the first quarter of 2024 increased $10 million compared to the first quarter of 2023, primarily due to higher interest rates.

Current wording

Net interest expense for the second quarter of 2024 decreased $31 million compared to the second quarter of 2023, primarily due to lower note repurchase premiums, write-offs of deferred finance fees and related charges, partially offset by higher interest rates.

Previous wording

The Company’s net sales in first quarter of 2024 were $1,593 million compared with $1,831 million in the first quarter of 2023, a decrease of $238 million, or 13%. Lower average selling prices decreased net sales by $14 million in first quarter of 2024. Glass container shipments, in tons, declined approximately 12.5% in the first quarter of 2024, which decreased net sales by approximately $264 million compared to the same period in prior year. This decline resulted from continued destocking across the value chain, as the Company’s customers, distributors and retailers adjust their inventory management practices to lower levels, soft consumer consumption activity and the early Easter holiday in the first quarter of 2024. The Company believes that destocking activity is in the later stages for products with a short-cycle, like beer, non-alcoholic beverage and food, while activity will likely continue for several more quarters for longer-cycle products, like spirits and wine. Favorable foreign currency exchange rates increased net sales by $42 million in the first quarter of 2024 compared to the same period in the prior year. Other sales were approximately $2 million lower in the first three months of 2024 than in the same period in the prior year, driven by lower sales in Asia.

Current wording

The Company’s net sales in the second quarter of 2024 were $1,729 million compared with $1,890 million in the second quarter of 2023, a decrease of $161 million, or 9%. Lower average selling prices decreased net sales by $39 million in second quarter of 2024. Glass container shipments, in tons, declined approximately 4.5% in the second quarter of 2024, which decreased net sales by approximately $111 million compared to the same period in prior year. This decline primarily resulted from continued sluggish market conditions with soft consumer consumption activity in all end-use categories and receding destocking trends. As of the end of the second quarter of 2024, the Company believes that destocking activity has receded across most categories, except spirits which will likely continue through the end of 2024. Unfavorable foreign currency exchange rates decreased net sales by $8 million in the second quarter of 2024 compared to the same period in the prior year. Other sales were approximately $3 million lower in the second quarter of 2024 than in the same period in the prior year, driven by lower sales in Asia.

Previous wording

Europe: Net sales in Europe in the first quarter of 2024 were $709 million compared to $799 million in the first quarter of 2023, a decrease of $90 million, or 11%. Lower average selling prices in Europe decreased net sales by $20 million in the first quarter of 2024. Glass container shipments declined by approximately 10% in the first quarter of 2024, primarily due to continued destocking activity, especially related to wine, spirits and beer customers, soft consumer consumption and the early Easter holiday in the first quarter of 2024. Lower shipments in the first quarter of 2024 decreased net sales by approximately $77 million compared to the prior year quarter. Favorable foreign currency exchange rates increased the region’s net sales by approximately $7 million in the first three months of 2024, as the Euro strengthened in relation to the U.S. dollar.

Current wording

Europe: Net sales in Europe in the second quarter of 2024 were $802 million compared to $863 million in the second quarter of 2023, a decrease of $61 million, or 7%. Lower average selling prices in Europe decreased net sales by $52 million in the second quarter of 2024. Glass container shipments were comparable in the second quarter of 2024 to the second quarter of 2023 and decreased net sales by approximately $2 million compared to the prior year quarter. Shipments to beer and wine customers were up modestly compared to the same quarter in the prior year while spirits shipments remained soft. Unfavorable foreign currency exchange rates decreased the region’s net sales by approximately $7 million in the second quarter of 2024, as the Euro weakened in relation to the U.S. dollar.

Previous wording

Americas: Segment operating profit in the Americas in the first quarter of 2024 was $102 million, compared to $176 million in the first quarter of 2023, a decrease of $74 million, or 42%. The impact of lower shipments discussed above resulted in a $35 million decrease to segment operating profit in the first quarter of 2024 compared to the same period in 2023. Operating costs in the first quarter of 2024 were $40 million higher than in the same period in the prior year. The increase in operating costs was primarily due to lower production volumes, driven by temporary curtailments of production to balance with lower demand, partially offset by margin expansion initiatives, including approximately $15 million of lower operating costs as a result of the region’s restructuring actions taken in 2023 (in line with management’s expectations). Higher cost inflation slightly exceeded higher selling prices and resulted in a $4 million decrease to segment operating profit in the first quarter of 2024. The effects of foreign currency exchange rates increased segment operating profit by $5 million in the first quarter of 2024.

Current wording

Americas: Segment operating profit in the Americas in the second quarter of 2024 was $106 million, compared to $126 million in the second quarter of 2023, a decrease of $20 million, or 16%. The impact of lower shipments discussed above resulted in a $21 million decrease to segment operating profit in the second quarter of 2024 compared to the same period in 2023. Operating costs in the second quarter of 2024 were $6 million higher than in the same period in the prior year. The increase in operating costs was primarily due to lower production volumes, driven by temporary curtailments of production to balance with lower demand, partially offset by margin expansion initiatives, including approximately $17 million of lower operating costs as a result of the region’s restructuring actions taken in 2023 (in line with management’s expectations). Higher selling prices exceeded cost inflation and resulted in a $3 million increase to segment operating profit in the second quarter of 2024. The effects of foreign currency exchange rates increased segment operating profit by $4 million in the second quarter of 2024.

Previous wording

In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the first quarter of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase

Current wording

In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the second quarter of 2024 due to

Previous wording

operating costs. In addition, the Company will continue to monitor business trends and consider whether any permanent capacity closures in the Americas will be necessary in the future to align its business with demand trends. Any permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.

Current wording

unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase operating costs. In addition, the Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in the Americas will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.

Previous wording

In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the first quarter of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase operating costs. In addition, the Company will continue to monitor business trends and consider whether any permanent capacity closures in Europe will be necessary in the future to align its business with demand trends. Any permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.

Current wording

In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the second quarter of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase operating costs. In addition, the Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in Europe will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.

Previous wording

In addition, the current conflict between Russia and Ukraine has caused a significant increase in the price of natural gas in prior periods and these costs remain volatile. The Company’s European operations typically purchase natural gas under long-term supply arrangements with terms that range from one to five years and, through these agreements, typically agree on price with the relevant supplier in advance of the period in which the natural gas will be delivered, which shields the Company from the full impact of increased natural gas prices, while such agreements remain in effect. The Company’s energy risk management approach is to have long-term arrangements covering at least 40% of its expected total energy use over a medium-term horizon (approximately two years), where possible. In most energy markets, the Company currently has more than 50% coverage over such medium-term horizon. Coverage varies by geography with higher coverage in Europe. However, the current conflict between Russia and Ukraine and the resulting sanctions, potential sanctions or other adverse repercussions on energy supplies could cause the Company’s energy suppliers to be unable or unwilling to deliver natural gas at agreed prices and quantities. If this occurs, it will be necessary for the Company to procure natural gas at then-current market prices and subject to market availability and could cause the Company to experience a significant increase in operating costs or result in the temporary or permanent cessation of delivery of natural gas to several of the Company’s manufacturing plants in Europe. In addition, depending on the duration and ultimate outcome of the conflict between Russia and Ukraine, future long-term supply arrangements for natural gas may not be available at reasonable prices or at all.

Current wording

In addition, the ongoing conflict between Russia and Ukraine has caused a significant change in the global gas market, resulting in a shift toward liquified natural gas. This transition has increased volatility in the market, as countries seek to diversify their energy sources and reduce dependance on traditional natural gas supplies. The Company’s European operations typically purchase natural gas under long-term supply arrangements with terms that range from one to five years and, through these agreements, typically agree on price with the relevant supplier in advance of the period in which the natural gas will be delivered, which shields the Company from the full impact of increased natural gas prices, while such agreements remain in effect. The Company’s energy risk management approach is to have coverage of at least 40% of its expected total energy use over a medium-term horizon (approximately two years), where possible. However, the current conflict between Russia and Ukraine and the resulting sanctions, potential sanctions or other adverse repercussions on energy supplies could cause the Company’s energy suppliers to be unable or unwilling to deliver natural gas at agreed prices and quantities. If this occurs, it will be necessary for the Company to procure natural gas at then-current market prices and subject to market availability and could cause the Company to experience a significant increase in operating costs or result in the temporary or permanent cessation of delivery of natural gas to several of the Company’s manufacturing plants in Europe. In addition, depending on the duration and ultimate outcome of the conflict between Russia and Ukraine, future long-term supply arrangements for natural gas may not be available at reasonable prices or at all.

Previous wording

The Company’s effective tax rate from operations for the first quarter of 2024 was 35% compared to 22.2% for the first quarter of 2023. The effective tax rate for the first quarter of 2024 differed from the first quarter of 2023 due to a

Current wording

The Company’s effective tax rate from operations for the second quarter of 2024 was 40.4% compared to 26.6% for the second quarter of 2023. The effective tax rate for the second quarter of 2024 differed from the second quarter of 2023 due to a change in the mix of geographic earnings.

Previous wording

Net sales in the first quarter of 2024 decreased $238 million, or 13%, compared to the same quarter in prior year, as the benefit of favorable foreign currency translation was more than offset by lower sales volumes and lower average selling prices.

Current wording

Net sales for the first six months of 2024 decreased $399 million, or 11%, compared to the same period in the prior year, as the benefit of favorable foreign currency translation was more than offset by lower sales volumes and lower average selling prices.

Previous wording

Results of Operations — First Quarter of 2024 Compared with First Quarter of 2023

Current wording

Results of Operations — First Six Months of 2024 Compared with First Six Months of 2023

Previous wording

Americas: Net sales in the Americas in the first quarter of 2024 were $854 million compared to $1,000 million in the first quarter of 2023, a decrease of $146 million, or 15%. Slightly higher selling prices in the region increased net sales by $6 million in the first quarter of 2024, driven by the pass through of higher cost inflation. Glass container shipments in the region were down approximately 15% in the first quarter of 2024 compared to the same period in the prior year, which decreased net sales by approximately $187 million. The decline in sales resulted from continued destocking activity, especially related to wine, spirits and beer customers, soft consumer consumption and the early Easter holiday in the first quarter of 2024. The favorable effects of foreign currency exchange rate changes increased net

Current wording

Americas: Net sales in the Americas in the first six months of 2024 were $1,753 million compared to $1,996 million for the first six months of 2023, a decrease of $243 million, or 12%. Slightly higher selling prices in the region increased net sales by $19 million in the first half of 2024, driven by the pass through of higher cost inflation. Glass container shipments in the region were down approximately 12% in the first half of 2024 compared to the same period in the prior year, which decreased net sales by approximately $296 million. The decline in sales resulted from destocking activity, especially related to wine, spirits and beer customers, and soft consumer consumption. The favorable effects of foreign currency exchange rate changes increased net sales by $34 million in the first half of 2024 compared to the same period in prior year, as the Brazilian Real and Mexican Peso strengthened compared to the U.S. dollar.

Previous wording

Earnings before income taxes were $117 million in the first quarter of 2024 compared to $270 million in the first quarter of 2023, a decrease of $153 million. This decrease was due to lower segment operating profit and higher interest expense, partially offset by lower retained corporate and other costs.

Current wording

Earnings before income taxes were $221 million in the first half of 2024 compared to $424 million in the first half of 2023, a decrease of $203 million. This decrease was due to lower segment operating profit, partially offset by lower interest expense and retained corporate and other costs.

Previous wording

Segment operating profit of reportable segments in the first quarter of 2024 was $235 million, compared to $398 million in the first quarter of 2023, a decrease of $163 million, or approximately 41%. This decrease was primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand, lower earnings from joint ventures and the non-recurrence of an energy subsidy received in the prior year.

Current wording

Segment operating profit of reportable segments in the first half of 2024 was $468 million, compared to $724 million in the first half of 2023, a decrease of $256 million, or 35%. This decrease was primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand, lower earnings from joint ventures and the non-recurrence of an energy subsidy received in the prior year.

Previous wording

Europe: Segment operating profit in Europe in the first quarter of 2024 was $133 million compared to $222 million in the first quarter of 2023, a decrease of $89 million, or 40%. The impact of lower shipments discussed above decreased segment operating profit by approximately $17 million. Operating costs in the first quarter of 2024 were $60 million higher than in the prior year period. Operating costs were impacted in the first quarter of 2024 by lower production volumes, driven by temporary production curtailments to balance supply with demand, lower earnings from joint ventures and the non-recurrence of approximately $7 million in subsidies received from the Italian government to help mitigate the impact of elevated energy costs in the first quarter of 2023, partially offset by benefits from margin expansion initiatives. Lower selling prices decreased segment operating profit by $11 million in the first quarter of 2024 compared to the same period in the prior year. The effects of foreign currency exchange rates slightly decreased segment operating profit by $1 million in the first quarter of 2024.

Current wording

Europe: Segment operating profit in Europe in the first six months of 2024 was $260 million compared to $421 million in the first six months of 2023, a decrease of $161 million, or 38%. The impact of lower shipments discussed above decreased segment operating profit by approximately $18 million. Operating costs in the first half of 2024 were $84 million higher than in the prior year period. Operating costs were impacted in the first half of 2024 by lower production volumes, driven by temporary production curtailments to balance supply with demand, lower earnings from joint ventures and the non-recurrence of approximately $16 million in subsidies received from the Italian government to help mitigate the impact of elevated energy costs in the first half of 2023, partially offset by benefits from margin expansion initiatives. Lower selling prices decreased segment operating profit by $56 million in the first six months of 2024 compared to the same period in the prior year. The effects of foreign currency exchange rates slightly decreased segment operating profit by $4 million in the first six months of 2024.

Previous wording

For the first quarter of 2024, the Company recorded net earnings attributable to the Company of $72 million, or $0.45 per share (diluted), compared to net earnings attributable to the Company of $206 million, or $1.29 per share (diluted), in the first quarter of 2023.

Current wording

Net Earnings Attributable to the Company

Previous wording

Retained corporate costs and other for the first quarter of 2024 were $40 million compared to $60 million in the first quarter of 2023. These costs decreased in the first quarter of 2024 primarily due to lower management incentive expense and lower spending.

Current wording

Retained corporate costs and other for the second quarter of 2024 were $32 million compared to $54 million in the second quarter of 2023 and were $72 million for the first six months of 2024 compared to $114 million for the first six months of 2023. These costs decreased in the second quarter and first six months of 2024 primarily due to lower management incentive expense and lower spending.

Previous wording

On March 25, 2022, certain of the Company’s subsidiaries entered into a Credit Agreement and Syndicated Facility Agreement (the “Original Agreement”), which refinanced in full the previous credit agreement. The Original Agreement provided for up to $2.8 billion of borrowings pursuant to term loans, revolving credit facilities and a delayed draw term loan facility. The delayed draw term loan facility allowed for a one-time borrowing of up to $600 million, the proceeds of which were used, in addition to other consideration paid by the Company and/or its subsidiaries, to fund an asbestos settlement trust (the “Paddock Trust”) established in connection with the confirmed plan of reorganization of Paddock Enterprises, LLC (“Paddock”) proposed by Paddock, O-I Glass and certain other parties in Paddock’s Chapter 11 case. On July 18, 2022, the Company drew down the $600 million delayed draw term loan to fund, together with other consideration, the Paddock Trust.

Current wording

On March 25, 2022, certain of the Company’s subsidiaries entered into a Credit Agreement and Syndicated Facility Agreement (the “Original Agreement”), which refinanced in full the previous credit agreement. The Original Agreement provided for up to $2.8 billion of borrowings pursuant to term loans, revolving credit facilities and a delayed draw term loan facility. The delayed draw term loan facility allowed for a one-time borrowing of up to $600 million, the proceeds of which were used, in addition to other consideration paid by the Company and/or its subsidiaries, to fund an asbestos settlement trust (the “Paddock Trust”) established in connection with the confirmed plan of reorganization of Paddock Enterprises, LLC (“Paddock”) proposed by Paddock, O-I Glass and certain other parties in Paddock’s Chapter 11 case.

Previous wording

At March 31, 2024, the Credit Agreement includes a $300 million revolving credit facility, a $950 million multicurrency revolving credit facility and $1.45 billion in term loan A facilities ($1.39 billion outstanding balance at March 31, 2024, net of debt issuance costs). At March 31, 2024, the Company had unused credit of $1.24 billion available under the revolving credit facilities provided by the Credit Agreement. The weighted average interest rate on borrowings outstanding under the Credit Agreement at March 31, 2024 was 6.60%.

Current wording

At June 30, 2024, the Credit Agreement includes a $300 million revolving credit facility, a $950 million multicurrency revolving credit facility and $1.45 billion in term loan A facilities ($1.39 billion outstanding balance at June 30, 2024, net of debt issuance costs). At June 30, 2024, the Company had unused credit of $1.24 billion available under the revolving credit facilities as part of the Credit Agreement. The weighted average interest rate on borrowings outstanding under the Credit Agreement at June 30, 2024 was 6.87%.

Previous wording

Obligations under the Credit Agreement are secured by substantially all of the assets, excluding real estate and certain other excluded assets, of certain of the Company’s domestic subsidiaries and certain foreign subsidiaries. Such obligations are also secured by a pledge of intercompany debt and equity investments in certain of the Company’s domestic subsidiaries and, in the case of foreign obligations, of stock of certain foreign subsidiaries. All obligations under the Credit Agreement are guaranteed by certain domestic subsidiaries of the Company, and certain foreign obligations under the Credit Agreement are guaranteed by certain foreign subsidiaries of the Company.

Current wording

obligations are also secured by a pledge of intercompany debt and equity investments in certain of the Company’s domestic subsidiaries and, in the case of foreign obligations, of stock of certain foreign subsidiaries. All obligations under the Credit Agreement are guaranteed by certain domestic subsidiaries of the Company, and certain foreign obligations under the Credit Agreement are guaranteed by certain foreign subsidiaries of the Company.

Previous wording

In May 2023, the Company issued €600 million aggregate principal amount of senior notes that bear interest at a rate of 6.250%per annum and mature on May 15, 2028. Also, in May 2023, the Company issued $690 million aggregate principal amount of senior notes that bear interest at a rate of 7.250% per annum and mature on May 15, 2031. The senior notes were issued via a private placement and are guaranteed by certain of the Company’s subsidiaries. The net proceeds, after deducting debt issuance costs, totaled approximately €593 million and $682 million, respectively, were used to redeem the aggregate principal amounts described in the May 2023 tender offers above.

Current wording

In May 2023, the Company issued €600 million aggregate principal amount of senior notes that bear interest at a rate of 6.250%per annum and mature on May 15, 2028. Also, in May 2023, the Company issued $690 million aggregate principal amount of senior notes that bear interest at a rate of 7.250% per annum and mature on May 15, 2031. The senior notes were issued via a private placement and are guaranteed by certain of the Company’s subsidiaries. The net proceeds, after deducting debt issuance costs were used to redeem the aggregate principal amounts described in the May 2023 tender offers below.

Previous wording

On May 26, 2023, the Company repurchased $142 million aggregate principal amount of the outstanding 5.875% Senior Notes due 2023, €666.7 million aggregate principal amount of the outstanding 3.125% Senior Notes due 2024, and $282.8 million aggregate principal amount of the outstanding 5.375% Senior Notes due 2025. The repurchases were funded with the proceeds from the May 2023 senior notes issuances described below. The Company recorded approximately $39 million of additional interest charges related to the senior note repurchases conducted in the second quarter of 2023 for note repurchase premiums, the write-off of unamortized finance fees and the settlement of a related interest rate swap. In August 2023, the Company redeemed approximately $108 million aggregate principal amount of its 5.875% Senior Notes due 2023. At March 31, 2024, approximately €58 million and $17 million aggregate principal amounts of the 3.125% Senior Notes due 2024 and 5.375% Senior Notes due 2025, respectively, remained outstanding.

Current wording

In May 2023, the Company repurchased $142 million aggregate principal amount of the outstanding 5.875% Senior Notes due 2023, €666.7 million aggregate principal amount of the outstanding 3.125% Senior Notes due 2024, and $282.8 million aggregate principal amount of the outstanding 5.375% Senior Notes due 2025. The repurchases were funded with the proceeds from the May 2023 senior notes issuances described above. The Company recorded approximately $39 million of additional interest charges related to the senior note repurchases conducted in the second quarter of 2023 for note repurchase premiums, the write-off of unamortized finance fees and the settlement of a related interest rate swap. In August 2023, the Company redeemed approximately $108 million aggregate principal amount of its 5.875% Senior Notes due 2023. At June 30, 2024, approximately €58 million and $17 million aggregate principal amounts of the 3.125% Senior Notes due 2024 and 5.375% Senior Notes due 2025, respectively, remained outstanding.

Previous wording

In order to maintain a capital structure containing appropriate amounts of fixed and floating-rate debt, the Company has entered into a series of interest rate swap agreements. These interest rate swap agreements were accounted for as fair value hedges (see Note 5 to the Condensed Consolidated Financial Statements for more information).

Current wording

In order to maintain a capital structure containing appropriate amounts of fixed and floating-rate debt, the Company has entered into a series of interest rate swap agreements. These interest rate swap agreements were accounted for as fair value hedges (see Note 5 for more information).

Previous wording

Operating activities: Cash utilized in operating activities was $270 million and $193 million for the three months ended March 31, 2024 and March 31, 2023, respectively. The increase in cash utilized in operating activities in the first three months of 2024 was primarily due to lower net income than in the same period in 2023.

Current wording

Operating activities: Cash utilized in operating activities was $20 million, and cash provided was $98 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The increase in cash utilized in operating activities in the first six months of 2024 was primarily due to lower net income than in the same period in 2023.

Previous wording

Working capital was a use of cash of $492 million in the first three months of 2024, compared to a use of cash of $536 million in the same period in 2023, with both periods reflecting higher inventories compared to the preceding year end period. The Company’s use of its accounts receivable factoring programs resulted in a decrease to cash utilized in operating activities of approximately $17 million for the three months ended March 31, 2024 and a decrease to cash utilized in operating activities of approximately $20 million for the three months ended March 31, 2023. Excluding the impact of accounts receivable factoring, the Company’s days sales outstanding as of March 31, 2024 were comparable to March 31, 2023. In addition, the Company expects to pay a one-time, previously accrued tax settlement of approximately $30 million in the second quarter of 2024.

Current wording

Working capital was a use of cash of $439 million in the first six months of 2024, compared to a use of cash of $541 million in the same period in 2023, with both periods reflecting higher inventories compared to the preceding year end period. The Company’s use of its accounts receivable factoring programs resulted in an increase to cash provided by operating activities of approximately $90 million and $21 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Excluding the impact of accounts receivable factoring, the Company’s days sales outstanding as of June 30, 2024 were comparable to June 30, 2023. In addition, the Company paid a one-time, previously accrued tax settlement of approximately $30 million in the second quarter of 2024.

Previous wording

Investing activities: Cash utilized in investing activities was $215 million for the three months ended March 31, 2024, compared to $98 million of cash utilized by investing activities for the three months ended March 31, 2023. Capital spending for property, plant and equipment was $213 million during the first three months of 2024, compared to $95 million in the same period in 2023, driven by higher spending on a new plant that the Company is constructing in Bowling Green, Kentucky and several other expansion projects. The Company estimates that its full year 2024 capital expenditures should be approximately$550 million to $575 million.

Current wording

Investing activities: Cash utilized in investing activities was $380 million for the six months ended June 30, 2024, compared to $266 million of cash utilized by investing activities for the six months ended June 30, 2023. Capital spending for property, plant and equipment was $373 million during the first six months of 2024, compared to $268 million in the same period in 2023, driven by higher spending on a new plant that the Company is constructing in Bowling Green, Kentucky and several other expansion projects. The Company estimates that its full year 2024 capital expenditures should be approximately$550 million to $575 million.

Previous wording

It is possible that the Company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to economic and social conditions, trade disputes, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (2) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (3) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (4) changes in consumer preferences or customer inventory management practices, (5) the continuing consolidation of the Company’s customer base, (6) the Company’s ability to improve its glass melting technology, known as the MAGMA program, and implement it within the timeframe expected, (7) unanticipated supply chain and operational disruptions, including higher capital spending, (8) seasonality of customer demand, (9) the failure of the Company’s joint venture partners to meet their obligations or commit additional capital to the joint venture, (10) labor shortages, labor cost increases or strikes, (11) the Company’s ability to acquire or divest businesses, acquire and expand plants, integrate operations of acquired businesses and achieve expected benefits from acquisitions, divestitures or expansions, (12) the Company’s ability to generate sufficient future cash flows to ensure the Company’s goodwill is not impaired, (13) any increases in the underfunded status of the Company’s pension plans, (14) any failure or disruption of the Company’s information technology, or those of third parties on which the Company relies, or any cybersecurity or data privacy incidents affecting the Company or its third-party service providers, (15) risks related to the Company’s indebtedness or changes in capital availability or cost, including interest rate fluctuations and the ability of the Company to generate cash to service indebtedness and refinance debt on favorable terms, (16) risks associated with operating in foreign countries, (17) foreign currency fluctuations relative to the U.S. dollar, (18) changes in tax laws or U.S. trade policies, (19) the Company’s ability to comply with various environmental legal requirements, (20) risks related to recycling and recycled content laws and regulations, (21) risks related to climate-change and air emissions, including related laws or regulations and increased ESG scrutiny and changing expectations from stakeholders,(22) risks related to the Company’s long-term …

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Current wording

It is possible that the Company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to economic and social conditions, trade disputes, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (2) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (3) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (4) changes in consumer preferences or customer inventory management practices, (5) the continuing consolidation of the Company’s customer base, (6) the Company’s ability to improve its glass melting technology, known as the MAGMA program, and implement it within the timeframe expected, (7) unanticipated supply chain and operational disruptions, including higher capital spending, (8) the Company’s ability to achieve expected benefits from margin expansion and profitability initiatives, such as its Fit to Win program, including expected impacts from production curtailments and furnace closures, (9) seasonality of customer demand, (10) the failure of the Company’s joint venture partners to meet their obligations or commit additional capital to the joint venture, (11) labor shortages, labor cost increases or strikes, (12) the Company’s ability to acquire or divest businesses, acquire and expand plants, integrate operations of acquired businesses and achieve expected benefits from acquisitions, divestitures or expansions, (13) the Company’s ability to generate sufficient future cash flows to ensure the Company’s goodwill is not impaired, (14) any increases in the underfunded status of the Company’s pension plans, (15) any failure or disruption of the Company’s information technology, or those of third parties on which the Company relies, or any cybersecurity or data privacy incidents affecting the Company or its third-party service providers, (16) risks related to the Company’s indebtedness or changes in capital availability or cost, including interest rate fluctuations and the ability of the Company to generate cash to service indebtedness and refinance debt on favorable terms, (17) risks associated with operating in foreign countries, (18) foreign currency fluctuations relative to the U.S. dollar, (19) changes in tax laws or U.S. trade policies, (20) the Company’s ability to comply with various environmental legal requirements, (21) risks related to recycling and recycled content laws and regul…

Excerpt shortened here; the source contains the full paragraph.