BALL Corp

Previous wording

Recent data has indicated continued high inflation in the regions where we operate. Current and future inflationary effects may continue to be impacted by, among other things, supply chain disruptions, governmental stimulus or fiscal and monetary policies, changes in interest rates, and changing demand for certain goods and services. We cannot predict with any certainty the impact that rising interest rates, a global or any regional recession, or higher inflation may have on our customers or suppliers. Additionally, we are unable to predict the potential effects that any future pandemic, or the continuation or escalation of global conflicts, including the conflict between Russia and Ukraine and the rising instability in the Middle East, and related sanctions or market disruptions, may have on our business. It remains uncertain how long any of these conditions may last or how severe any of them may become.

Current wording

Recent data has indicated continued high inflation in the regions where we operate. Current and future inflationary effects may continue to be impacted by, among other things, supply chain disruptions, governmental stimulus or fiscal and monetary policies, changes in interest rates, and changing demand for certain goods and services. We cannot predict with any certainty the impact that interest rates, a global or any regional recession, or higher inflation may have on our customers or suppliers. Additionally, we are unable to predict the potential effects that any future pandemic, or the continuation or escalation of global conflicts, including the conflict between Russia and Ukraine and the rising instability in the Middle East and Myanmar, and related sanctions or market disruptions, may have on our business. It remains uncertain how long any of these conditions may last or how severe any of them may become.

Previous wording

Sales in the three months ended June 30, 2024, decreased $108 million compared to the same period in 2023 primarily due to decreases of $69 million from lower sales prices resulting mainly from lower aluminum prices and $32 million from lost volumes as a result of the 2023 fire at the company’s Verona, Virginia extruded aluminum slug manufacturing facility. Sales in the six months ended June 30, 2024, decreased $215 million compared to the same period in 2023 primarily due to decreases of $197 million from lower sales prices resulting mainly from lower aluminum prices and $63 million from lost volumes as a result of the 2023 fire at the company’s Verona, Virginia extruded aluminum slug manufacturing facility.

Current wording

Sales in the three months ended September 30, 2024, decreased $29 million compared to the same period in 2023 primarily due to a decrease of $17 million from price/mix. Sales in the nine months ended September 30, 2024, decreased $244 million compared to the same period in 2023 primarily due to decreases of $232 million resulting mainly from lower aluminum prices and $70 million from lost volumes as a result of the 2023 fire at the company’s Verona, Virginia extruded aluminum slug manufacturing facility, partially offset by an increase of $33 million from higher volumes.

Previous wording

Net earnings attributable to Ball Corporation for the three months ended June 30, 2024, decreased $15 million compared to the same period in 2023 primarily due to an increase in costs of $66 million from business consolidation and other activities and a decrease of $48 million from lower discontinued operations, net of tax, partially offset by increases of $57 million from the results of the reportable segments discussed below and $48 million from lower interest expense. Net earnings attributable to Ball Corporation for the six months ended June 30, 2024, increased $3.49 billion compared to the same period in 2023 primarily due to increases of $3.51 billion from discontinued operations, net of tax, $83 million from the results of the reportable segments discussed below, $68 million from lower interest expense and $29 million from higher interest income in corporate undistributed expenses, net, partially offset by $82 million of incremental compensation cost from the successful sale of the aerospace business and $72 million from business consolidation and other activities.

Current wording

Net earnings attributable to Ball Corporation for the three months ended September 30, 2024, decreased $6 million compared to the same period in 2023 primarily due to a decrease of $65 million from lower discontinued operations, net of tax and an increase in costs of $56 million from business consolidation and other activities, partially offset by increases of $55 million from lower interest expense and $49 million from the results of the reportable segments discussed below. Net earnings attributable to Ball Corporation for the nine months ended September 30, 2024, increased $3.49 billion compared to the same period in 2023 primarily due to increases of $3.44 billion from discontinued operations, net of tax, $132 million from the results of the reportable segments discussed below, $123 million from lower interest expense and $36 million from higher interest income in corporate undistributed expenses, net, partially offset by increases in costs of $128 million from business consolidation and other activities and $82 million from incremental compensation cost from the successful sale of the aerospace business.

Previous wording

Cost of sales, excluding depreciation and amortization, was $2,357 million and $2,506 million for the three months ended June 30, 2024 and 2023, respectively, and $4,640 million and $4,938 million for the six months ended June 30, 2024 and 2023, respectively. These amounts represented 80 percent and 82 percent of consolidated net sales for the three months ended June 30, 2024 and 2023, respectively, and 80 percent and 82 percent of consolidated net sales for the six months ended June 30, 2024 and 2023, respectively. The decrease for the three months ended June 30, 2024, was primarily due tolower manufacturing costs, including lower aluminum costs of $106 million, and other items discussed in the reportable segment sections below. The decrease for the six months ended June 30, 2024, was primarily due tolower manufacturing costs, including lower aluminum costs of $228 million and lower freight costs of $47 million, and other items discussed in the reportable segment sections below.

Current wording

Cost of sales, excluding depreciation and amortization, was $2,425 million and $2,512 million for the three months ended September 30, 2024 and 2023, respectively, and $7,065 million and $7,450 million for the nine months ended September 30, 2024 and 2023, respectively. These amounts represented 79 percent and 81 percent of consolidated net sales for the three months ended September 30, 2024 and 2023, respectively, and 79 percent and 81 percent of consolidated net sales for the nine months ended September 30, 2024 and 2023, respectively. The decrease for the three months ended September 30, 2024, was primarily due tolower manufacturing costs, including lower aluminum costs of $41 million, and other items discussed in the reportable segment sections below. The decrease for the nine months ended September 30, 2024, was primarily due tolower manufacturing costs, including lower aluminum costs of $269 million and lower freight costs of $53 million, and other items discussed in the reportable segment sections below.

Previous wording

Depreciation and amortization expense was $152 million and $150 million for the three months ended June 30, 2024 and 2023, respectively, and $310 million and $297 million for the six months ended June 30, 2024 and 2023, respectively. These amounts represented 5 percent of consolidated net sales for the three and six months ended June 30, 2024 and 2023. The increases for the three and six months ended June 30, 2024, were primarily due to the company’s larger depreciable asset base.

Current wording

Depreciation and amortization expense was $150 million and $152 million for the three months ended September 30, 2024 and 2023, respectively, and $460 million and $449 million for the nine months ended September 30, 2024 and 2023, respectively. These amounts represented 5 percent of consolidated net sales for the three and nine months ended September 30, 2024 and 2023. The increase for the nine months ended September 30, 2024, was primarily due to the company’s larger depreciable asset base.

Previous wording

Selling, general and administrative was $139 million and $157 million for the three months ended June 30, 2024 and 2023, respectively, and $376 million and $276 million for the six months ended June 30, 2024 and 2023, respectively. These amounts represented 5 percent of consolidated net sales for the three months ended June 30, 2024 and 2023, and 6 percent and 5 percent of consolidated net sales for the six months ended June 30, 2024 and 2023, respectively. The decrease for the three months ended June 30, 2024, was primarily due to a decrease in expense of $15 million related to the company’s receivable factoring programs. The increase for the six months ended June 30, 2024, was primarily due to increased compensation costs of $84 million, including incremental compensation cost from the successful sale of the aerospace business consisting of cash bonuses and stock based compensation.

Current wording

Selling, general and administrative was $142 million and $133 million for the three months ended September 30, 2024 and 2023, respectively, and $518 million and $409 million for the nine months ended September 30, 2024 and 2023, respectively. These amounts represented 5 percent and 4 percent of consolidated net sales for the three months ended September 30, 2024 and 2023, respectively, and 6 percent and 4 percent of consolidated net sales for the nine months ended September 30, 2024 and 2023, respectively. The increase for the nine months ended September 30, 2024, was primarily due to increased compensation costs of $98 million, including incremental compensation cost from the successful sale of the aerospace business consisting of cash bonuses and stock based compensation.

Previous wording

Business consolidation and other activities resulted in charges of $60 million and income of $6 million for the three months ended June 30, 2024 and 2023, respectively, and charges of $86 million and $14 million for the six months ended June 30, 2024 and 2023, respectively. The amounts in 2024 and 2023 primarily included facility shutdown costs. Further details regarding business consolidation and other activities are provided in Note 6.

Current wording

Business consolidation and other activities resulted in charges of $85 million and $29 million for the three months ended September 30, 2024 and 2023, respectively, and charges of $171 million and $43 million for the nine months ended September 30, 2024 and 2023, respectively. The amounts in 2024 and 2023 primarily included facility shutdown costs. Further details regarding business consolidation and other activities are provided in Note 6.

Previous wording

Interest income was $18 million and $7 million for the three months ended June 30, 2024 and 2023, respectively, and $44 million and $11 million for the six months ended June 30, 2024 and 2023, respectively. The increases in interest income for the three and six months ended June 30, 2024, were primarily due to the higher amount of cash on hand in 2024 from the aerospace sale.

Current wording

Interest income was $14 million and $12 million for the three months ended September 30, 2024 and 2023, respectively, and $58 million and $23 million for the nine months ended September 30, 2024 and 2023, respectively. The increases in interest income for the three and nine months ended September 30, 2024, were primarily due to the higher amount of cash on hand in 2024 from the aerospace sale.

Previous wording

Interest expense was $68 million and $116 million for the three months ended June 30, 2024 and 2023, respectively, and $161 million and $229 million for the six months ended June 30, 2024 and 2023, respectively. Interest expense as a percentage of average borrowings decreased by approximately 10 basis points from 4.8 percent for the three months ended June 30, 2023, to 4.7 percent for the three months ended June 30, 2024, and increased approximately 20 basis points from 4.8 percent for the six months ended June 30, 2023, to 5.0 percent for the six months ended June 30, 2024. The interest expense decrease for the three months ended June 30, 2024, was primarily driven by a decrease of $42 million from a smaller amount of weighted average principal outstanding during the quarter, resulting mainly from the use of proceeds from the aerospace disposal, and a decrease of $4 million from lower weighted average interest rates on outstanding debt during the quarter. The interest expense decrease for the six months ended June 30, 2024, was primarily

Current wording

Interest expense was $67 million and $122 million for the three months ended September 30, 2024 and 2023, respectively, and $228 million and $351 million for the nine months ended September 30, 2024 and 2023, respectively. Interest expense as a percentage of average borrowings decreased by approximately 50 basis points from 5.1 percent for the three months ended September 30, 2023, to 4.6 percent for the three months ended September 30, 2024, and remained constant at 4.9 percent for the nine months ended September 30, 2024 and 2023. The interest expense decrease for the three months ended September 30, 2024, was primarily driven by a decrease of $29 million from a smaller amount of weighted average principal outstanding during the quarter, resulting mainly from the use of proceeds from the aerospace disposal, and a decrease of $26 million from lower weighted average interest rates on outstanding debt during the quarter. The interest expense decrease for the nine months ended September 30, 2024, was driven by a smaller amount of weighted average principal outstanding during the year, resulting mainly from the use of proceeds from the

Previous wording

driven by a decrease of $78 million from a smaller amount of weighted average principal outstanding during the year, resulting mainly from the use of proceeds from the aerospace disposal, partially offset by an increase of $11 million from higher weighted average interest rates on outstanding debt during the year. The company expects to carry a smaller amount of weighted average principal throughout 2024 compared to 2023, with nearly all amounts outstanding having fixed rates. See Note 15 for further details.

Current wording

aerospace disposal. The company expects to carry a smaller amount of weighted average principal throughout 2024 compared to 2023, with nearly all amounts outstanding having fixed rates. See Note 15 for further details.

Previous wording

The effective tax rate for the three and six months ended June 30, 2024, was 24.5 and 25.2 percent, respectively, compared to 19.2 percent and 20.3 percent for the same periods in 2023. The increases of 5.3 percentage points and 4.9 percentage points for the three and six months ended June 30, 2024, respectively, were primarily due to increases in non-U.S. rate differences and withholding taxes net of credits, state and local taxes and Pillar Two Global Minimum Taxes. Similar impacts may occur in future periods, but given their inherent uncertainty, the company is unable to reasonably estimate their potential future impacts.

Current wording

The effective tax rate for the three and nine months ended September 30, 2024, was 18.5 and 22.3 percent, respectively, compared to 25.7 percent and 22.3 percent for the same periods in 2023. The decrease of 7.2 percentage points for the three months ended September 30, 2024, was primarily due to increased tax benefits from state and local tax credits. Similar impacts may occur in future periods, but given their inherent uncertainty, the company is unable to reasonably estimate their potential future impacts.

Previous wording

Ball permanently ceased production at its aluminum beverage can manufacturing facility in St. Paul, Minnesota in the first quarter of 2023, permanently ceased production at its aluminum beverage can manufacturing facility in Wallkill, New York in the third quarter of 2023 and permanently ceased production at its aluminum beverage can manufacturing facility in Kent, Washington in the first quarter of 2024.

Current wording

Ball permanently ceased production at its aluminum beverage can manufacturing facility in St. Paul, Minnesota in the first quarter of 2023, permanently ceased production at its aluminum beverage can manufacturing facility in Wallkill, New York in the third quarter of 2023, permanently discontinued plans to construct a beverage can plant in North Las Vegas in the third quarter of 2023 and permanently ceased production at its aluminum beverage can manufacturing facility in Kent, Washington in the first quarter of 2024.

Previous wording

Segment sales for the three and six months ended June 30, 2024, were $40 million lower and $64 million lower, respectively, compared to the same periods in 2023. The decreases for the three and six months ended June 30, 2024, were primarily due to decreases from lower sales prices resulting mainly from lower aluminum prices.

Current wording

Segment sales for the three and nine months ended September 30, 2024, were $85 million lower and $254 million lower, respectively, compared to the same periods in 2023. The decrease for the three months ended September 30, 2024, was primarily due to decreases of $49 million from lower volumes and $37 million from price/mix. The decrease for the nine months ended September 30, 2024, was primarily due to decreases of $203 million from price/mix and $51 million from lower volumes.

Previous wording

Comparable operating earnings for the three and six months ended June 30, 2024, were $35 million higher and $44 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended June 30, 2024, was primarily due to increases of $34 million from lower costs and $11 million from higher volumes. The increase for the six months ended June 30, 2024, was primarily due to increases of $57 million from lower costs, $19 million from higher sales prices resulting mainly fromthe annual pass-through of inflationary costs net of current year inflationand $10 million from higher volumes, partially offset by a decrease of $32 million from income recognized in 2023 from the termination of a long term power supply contract that offset higher energy costs.

Current wording

Comparable operating earnings for the three and nine months ended September 30, 2024, were $7 million higher and $51 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended September 30, 2024, was primarily due to increases of $30 million from price/mix and $16 million from lower costs, partially offset by a decrease of $21 million from lower volumes. The increase for the nine months ended September 30, 2024, was primarily due to increases of $64 million from price/mix and $50 million from lower costs, partially offset by decreases of $32 million from income recognized in 2023 from the termination of a long term power supply contract that offset higher energy costs and $12 million from lower volumes.

Previous wording

Segment sales for the three and six months ended June 30, 2024, were $68 million lower and $169 million lower, respectively, compared to the same periods in 2023. The decrease for the three months ended June 30, 2024, was primarily due to a $77 million decrease from lower sales prices resulting mainly from lower aluminum prices, partially offset by an increase of $9 million from higher volumes. The decrease for the six months ended June 30, 2024, was primarily due to lower sales prices resulting mainly from lower aluminum prices.

Current wording

Segment sales for the three and nine months ended September 30, 2024, were $48 million higher and $16 million lower, respectively, compared to the same periods in 2023. The increase for the three months ended September 30, 2024, was primarily due to higher volumes. The decrease for the nine months ended September 30, 2024, was primarily due to a decrease of $70 million resulting mainly from lower aluminum prices, partially offset by an increase of $56 million from higher volumes.

Previous wording

Comparable operating earnings for the three and six months ended June 30, 2024, were $15 million higher and $27 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended June 30, 2024, was primarily due to increases of $15 million from higher sales prices resulting mainly from price/mix and $14 million from higher volumes, partially offset by a decrease of $20 million from higher costs. The increase for the six months ended June 30, 2024, was primarily due to increases of $33 million from higher sales prices resulting mainly from price/mix and $28 million from higher volumes, partially offset by a decrease of $41 million from higher costs.

Current wording

Comparable operating earnings for the three and nine months ended September 30, 2024, were $25 million higher and $52 million higher, respectively, compared to the same periods in 2023. The increase for the three months ended September 30, 2024, was primarily due to higher volumes. The increase for the nine months ended September 30, 2024, was primarily due to increases of $32 million from price/mix and $19 million from higher volumes, partially offset by a decrease of $20 million from higher costs.

Previous wording

Management internally uses various measures to evaluate company performance such as comparable operating earnings (earnings before interest expense, taxes and business consolidation and other non-comparable items); comparable net earnings (net earnings attributable to Ball Corporation before business consolidation and other non-comparable items after tax); comparable diluted earnings per share (comparable net earnings divided by diluted weighted average shares outstanding); return on average invested capital (net operating earnings after tax over the relevant performance period divided by average invested capital over the same period); economic value added (EVA®) dollars (net operating earnings after tax less a capital charge on average invested capital employed); earnings before interest expense, taxes, depreciation and amortization (EBITDA); and diluted earnings per share. In addition, management uses operating cash flows as a measure to evaluate the company’s liquidity. We believe this information is also useful to investors as it provides insight into the earnings and cash flow criteria that management uses to make strategic decisions. These financial measures may be adjusted at times for items that affect comparability between periods, including business consolidation and other non-comparable items.

Current wording

Management internally uses various measures to evaluate company performance such as comparable operating earnings (earnings before interest expense, taxes and business consolidation and other non-comparable items); comparable net earnings (net earnings attributable to Ball Corporation before business consolidation and other non-comparable items after tax); comparable diluted earnings per share (comparable net earnings divided by diluted weighted average shares outstanding); return on average invested capital (net operating earnings after tax over the relevant performance period divided by average invested capital over the same period); economic value added (EVA®) dollars (net operating earnings after tax less a capital charge on average invested capital employed); earnings before interest expense, taxes, depreciation and amortization (EBITDA); and diluted earnings per share. In addition, management uses operating cash flows, free cash flow (cash flows from operating activities less capital expenditures; and, it may be adjusted for additional items that affect comparability between periods) and adjusted free cash flow (free cash flow adjusted for payments made for income tax liabilities related to the aerospace disposition and other material dispositions) as measures to evaluate the company’s liquidity. We believe this information is also useful to investors as it provides insight into the earnings and cash flow criteria that management uses to make strategic decisions. These financial measures may be adjusted at times for items that affect comparability between periods, including business consolidation and other non-comparable items.

Previous wording

Cash flows used in operating activities were $995 million in 2024, primarily driven by the company’s decision to reduce its use of accounts receivable factoring by $749 million as a result of having significant cash on hand from the aerospace sale. On February 16, 2024, the company completed the divestiture of the aerospace business. We currently estimate a cash tax of $1.00 billion to be recorded as a cash outflow from operations in 2024, of which $461 million has been paid as of June 30, 2024. See Note 4 for further details. In an elevated interest rate environment, payment terms with our customers and vendors become a more important element of total mix of information used to negotiate our contract terms. At June 30, 2024, days sales outstanding, net of factored receivables, was 82 days; therefore, a change of one day in days sales outstanding will impact cash flows provided by (used in) operating activities by $33 million. At June 30, 2024, days payable outstanding was 117 days; therefore, a change of one day in days payable outstanding will impact cash flows provided by (used in) operating activities by $26 million. At June 30, 2024, days inventory outstanding was 54 days; therefore, a change of one day in days inventory outstanding will impact cash flows provided by (used in) operating activities by $26 million.

Current wording

Cash flows used in operating activities were $385 million in 2024, primarily driven by working capital outflows of $630 million. On February 16, 2024, the company completed the divestiture of the aerospace business. We currently estimate a cash tax of $950 million to be recorded as a cash outflow from operations in 2024, of which $484 million has been paid as of September 30, 2024. See Note 4 for further details. In an elevated interest rate environment, payment terms with our customers and vendors become a more important element of total mix of information used to negotiate our contract terms. At September 30, 2024, days sales outstanding, net of factored receivables, was 78 days; therefore, a change of one day in days sales outstanding will impact cash flows provided by (used in) operating activities by $34 million. At September 30, 2024, days payable outstanding was 117 days; therefore, a change of one day in days payable outstanding will impact cash flows provided by (used in) operating activities by $27 million. At September 30, 2024, days inventory outstanding was 51 days; therefore, a change of one day in days inventory outstanding will impact cash flows provided by (used in) operating activities by $27 million.

Previous wording

Cash flows provided by investing activities were $5.20 billion in 2024, primarily driven by the initial cash proceeds received at close from the sale of the aerospace business of $5.42 billion, which is subject to further customary closing adjustments.

Current wording

Cash flows provided by investing activities were $5.18 billion in 2024, primarily driven by the initial cash proceeds received at close from the sale of the aerospace business of $5.42 billion, which is subject to further customary closing adjustments.

Previous wording

Cash flows used in financing activities were $3.50 billion in 2024, primarily driven by net repayments of long-term borrowings of $2.83 billion and repurchases of common stock of $665 million. See Note 15 for further details on the company’s borrowings, and additional amounts available.

Current wording

Cash flows used in financing activities were $4.00 billion in 2024, primarily driven by net repayments of long-term borrowings of $2.83 billion and repurchases of common stock of $1.06 billion. See Note 15 for further details on the company’s borrowings, and additional amounts available.

Previous wording

We have entered into several regional committed and uncommitted accounts receivable factoring programs with various financial institutions for certain of our accounts receivable. The programs are accounted for as true sales of the receivables, with limited recourse to Ball, and had combined limits of approximately $1.59 billion and $2.00 billion at June 30, 2024 and December 31, 2023, respectively. A total of $690 million and $350 million were available for sale under these programs as of June 30, 2024, and December 31, 2023, respectively. The combined limit and available for sale amount as of December 31, 2023, included $160 million and $97 million, respectively, associated with receivable factoring programs included within the historical aerospace reportable segment. The company has recorded expense related to its factoring programs of $10 million and $25 million for the three months ended June 30, 2024 and 2023, respectively, and $23 million and $40 million for the six months ended June 30, 2024 and 2023, respectively, and has presented these amounts in selling, general and administrative in its unaudited condensed consolidated statements of earnings.

Current wording

We have entered into several regional accounts receivable factoring programs with various financial institutions for certain of our accounts receivable. The programs are accounted for as true sales of the receivables, with limited recourse to Ball, and had combined limits of approximately $1.63 billion and $2.00 billion at September 30, 2024 and December 31, 2023, respectively. A total of $702 million and $350 million were available for sale under these programs as of September 30, 2024, and December 31, 2023, respectively. The combined limit and available for sale amount as of December 31, 2023, included $160 million and $97 million, respectively, associated with receivable factoring programs included within the historical aerospace reportable segment. The company has recorded expense related to its factoring programs of $12 million and $29 million for the three months ended September 30, 2024 and 2023, respectively, and $35 million and $69 million for the nine months ended September 30, 2024 and 2023, respectively, and has presented these amounts in selling, general and administrative in its unaudited condensed consolidated statements of earnings.

Previous wording

The company has several regional supplier finance programs with various financial institutions that act as the paying agent for certain payables of the company. The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's programs was $515 million and $703 million at June 30, 2024 and December 31, 2023, respectively. Our payment terms are not dependent on whether the suppliers participate in the supplier finance programs or if the suppliers decide to factor their receivables with the financial institutions; therefore, we do not believe that future changes in the availability of supplier finance programs will have a significant impact on our liquidity.

Current wording

The company has several regional supplier finance programs with various financial institutions that act as the paying agent for certain payables of the company. The amount of obligations outstanding that the company confirmed as valid to the financial institutions under the company's programs was $432 million and $703 million at September 30, 2024 and December 31, 2023, respectively. Our payment terms are not dependent on whether the suppliers participate in the supplier finance programs or if the suppliers decide to factor their receivables with the financial institutions; therefore, we do not believe that future changes in the availability of supplier finance programs will have a significant impact on our liquidity.

Previous wording

Contributions to the company’s defined benefit pension plans were $15 million in the first six months of 2024 compared to $9 million in the same period of 2023, and such contributions are expected to be approximately $28 million for the full year of 2024. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors.

Current wording

Contributions to the company’s defined benefit pension plans were $24 million in the first nine months of 2024 compared to $13 million in the same period of 2023, and such contributions are expected to be approximately $30 million for the full year of 2024. This estimate may change based on changes in the Pension Protection Act, actual plan asset performance and available company cash flow, among other factors.

Previous wording

The company expects that 2024 capital expenditures for property, plant and equipment will likely be in the range of $650 million. Approximately $186 million of capital expenditures for property, plant and equipment were contractually committed as of June 30, 2024, and the company intends to return approximately $245 million to shareholders in the form of dividends for the full year 2024, inclusive of the cash dividend of 20 cents per share, payable September 17, 2024, to shareholders of record as of September 3, 2024.

Current wording

The company expects that 2024 capital expenditures for property, plant and equipment will likely be in the range of $650 million. Approximately $167 million of capital expenditures for property, plant and equipment were contractually committed as of September 30, 2024, and the company intends to return approximately $245 million to shareholders in the form of dividends for the full year 2024, inclusive of the cash dividend of 20 cents per share, payable December 16, 2024, to shareholders of record as of December 2, 2024.

Previous wording

As of June 30, 2024, approximately $675 million of our cash was held outside of the U.S. In the event that we would need to utilize any of the cash held outside of the U.S. for purposes within the U.S., there are no material legal or other economic restrictions regarding the repatriation of cash from any of the countries outside the U.S. where we have cash. The company believes its U.S. operating cash flows and cash on hand, as well as availability under its long-term, revolving credit facilities, uncommitted short-term credit facilities and committed and uncommitted accounts receivable factoring programs, will be sufficient to meet the cash requirements of the U.S. portion of our ongoing operations, scheduled principal and interest payments on U.S. debt, dividend payments, capital expenditures and other U.S. cash requirements. If non-U.S. funds are needed for our U.S. cash requirements and we are unable to provide the funds through intercompany financing arrangements, we may be required to repatriate funds from non-U.S. locations where the company has previously asserted indefinite reinvestment of funds outside the U.S.

Current wording

As of September 30, 2024, approximately $820 million of our cash was held outside of the U.S. In the event that we would need to utilize any of the cash held outside of the U.S. for purposes within the U.S., there are no material legal or other economic restrictions regarding the repatriation of cash from any of the countries outside the U.S. where we have cash. The company believes its U.S. operating cash flows and cash on hand, as well as availability under its long-term, revolving credit facilities, uncommitted short-term credit facilities and accounts receivable factoring programs, will be sufficient to meet the cash requirements of the U.S. portion of our ongoing operations, scheduled principal and interest payments on U.S. debt, dividend payments, capital expenditures and other U.S. cash requirements. If non-U.S. funds are needed for our U.S. cash requirements and we are unable to provide the funds through intercompany financing arrangements, we may be required to repatriate funds from non-U.S. locations where the company has previously asserted indefinite reinvestment of funds outside the U.S.

Previous wording

The company’s share repurchases totaled $665 million during the six months ended June 30, 2024, compared to $3 million of repurchases during the same period of 2023. The repurchases were completed using cash on hand, cash provided by operating activities, proceeds from the sale of businesses and available borrowings. The company plans to continue capital return to shareholders via an estimated $1.4 billion in share repurchases in 2024 using cash from the aerospace divestiture and operating activities.

Current wording

The company’s share repurchases totaled $1.06 billion during the nine months ended September 30, 2024, compared to $3 million of repurchases during the same period of 2023. The repurchases were completed using cash on hand, cash provided by operating activities, proceeds from the sale of businesses and available borrowings. The company plans to continue capital return to shareholders via an estimated $1.4 billion in share repurchases in 2024 using cash from the aerospace divestiture and operating activities.

Previous wording

Given our cash flow projections and unused credit facilities that are available until June 2027, our liquidity is strong and is expected to meet our ongoing cash and debt service requirements. Total interest-bearing debt of $5.83 billion and $8.62 billion was outstanding at June 30, 2024, and December 31, 2023, respectively.

Current wording

Given our cash flow projections and unused credit facilities that are available until June 2027, our liquidity is strong and is expected to meet our ongoing cash and debt service requirements. Total interest-bearing debt of $5.82 billion and $8.62 billion was outstanding at September 30, 2024, and December 31, 2023, respectively.

Previous wording

The company’s senior credit facilities include a $1.35 billion term loan and long-term, multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $1.75 billion. At June 30, 2024, approximately $1.69 billion was available under the company’s long-term, multi-currency committed revolving credit facilities. In addition to these facilities, the company had $250 million of committed short-term loans outstanding. The company also had approximately $1.00 billion of short-term uncommitted credit facilities available at June 30, 2024, of which $24 million was outstanding and due on demand. At December 31, 2023, the company had $196 million of committed short-term loans outstanding and $13 million outstanding under short-term uncommitted credit facilities.

Current wording

The company’s senior credit facilities include a $1.35 billion term loan and long-term, multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $1.75 billion. At September 30, 2024, approximately $1.72 billion was available under the company’s long-term, multi-currency committed revolving credit facilities. In addition to these facilities, the company had $193 million of committed short-term loans outstanding and a $25 million short-term finance lease outstanding. The company also had approximately $1.04 billion of short-term uncommitted credit facilities available at September 30, 2024, of which $42 million was outstanding and due on demand. At December 31, 2023, the company had $196 million of committed short-term loans outstanding and $13 million outstanding under short-term uncommitted credit facilities.

Previous wording

We were in compliance with the leverage ratio requirement at June 30, 2024, and for all prior periods presented, and have met all debt payment obligations. The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividends, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of our debt covenants requires us to maintain a leverage ratio (as defined) of no greater than 5.0 times, which will change to 4.5 times as of September 30, 2025. As of June 30, 2024, the company could borrow an additional $2.34 billion under its long-term multi-currency committed revolving facilities and short-term uncommitted credit facilities. Additional details about our debt are available in Note 15 accompanying the consolidated financial statements within Item 1 of this report. In July 2024, we entered into and designated two net investment hedges against the net assets of our euro denominated operations. See Note 20 for further details.

Current wording

We were in compliance with the leverage ratio requirement at September 30, 2024, and for all prior periods presented, and have met all debt payment obligations. The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The most restrictive of our debt covenants requires us to maintain a leverage ratio (as defined) of no greater than 5.0 times, which will change to 4.5 times as of September 30, 2025. As of September 30, 2024, the company could borrow an additional $2.39 billion under its long-term multi-currency committed revolving facilities and short-term uncommitted credit facilities. Additional details about our debt are available in Note 15 accompanying the consolidated financial statements within Item 1 of this report. In July 2024, we entered into and designated two net investment hedges against the net assets of our euro denominated operations. See Note 20 for further details.

Previous wording

The following summarized financial information relates to the obligor group as of June 30, 2024, and December 31, 2023. Intercompany transactions, equity investments and other intercompany activity between obligor group subsidiaries have been eliminated from the summarized financial information. Investments in subsidiaries not forming part of the obligor group have also been eliminated. The results and balance sheet information of the historical aerospace reportable segment are included in the following summarized financial information of the obligor group as of and for the year ended December 31, 2023, as the guarantees of the aerospace business legal entities were in effect through that date. On February 16, 2024, the company completed the divestiture of the aerospace business. As such, the following summarized financial information of the obligor group as of and for the six months ended June 30, 2024, does not include results and balance sheet information of the historical aerospace reportable segment.

Current wording

The following summarized financial information relates to the obligor group as of September 30, 2024, and December 31, 2023. Intercompany transactions, equity investments and other intercompany activity between obligor group subsidiaries have been eliminated from the summarized financial information. Investments in subsidiaries not forming part of the obligor group have also been eliminated. The results and balance sheet information of the historical aerospace reportable segment are included in the following summarized financial information of the obligor group as of and for the year ended December 31, 2023, as the guarantees of the aerospace business legal entities were in effect through that date. On February 16, 2024, the company completed the divestiture of the aerospace business. As such, the following summarized financial information of the obligor group as of and for the nine months ended September 30, 2024, does not include results and balance sheet information of the historical aerospace reportable segment.

Previous wording

For the six months ended June 30, 2024, and the year ended December 31, 2023, the obligor group recorded the following transactions with other subsidiary companies: sales to them of $650 million and $1.13 billion, respectively, net credits from them of $38 million and net interest income from them of $167 million and $344 million, respectively. The obligor group received dividends from other subsidiary companies of $38 million and $814 million, during the six months ended June 30, 2024, and the year ended December 31, 2023, respectively.

Current wording

For the nine months ended September 30, 2024, and the year ended December 31, 2023, the obligor group recorded the following transactions with other subsidiary companies: sales to them of $946 million and $1.13 billion, respectively, net credits from them of $54 million and $38 million, respectively, and net interest income from them of $252 million and $344 million, respectively. The obligor group received dividends from other subsidiary companies of $38 million and $814 million, during the nine months ended September 30, 2024, and the year ended December 31, 2023, respectively.

Previous wording

Included in the amounts disclosed in the table above, at June 30, 2024, and December 31, 2023, the obligor group held receivables due from other subsidiary companies of $487 million and $768 million, respectively, long-term notes receivable due from other subsidiary companies of $10.37 billion and $10.20 billion, respectively, payables due to other subsidiary companies of $1.80 billion and $1.83 billion, respectively, and long-term notes payable due to other subsidiary companies of $2.14 billion and $2.32 billion, respectively.

Current wording

Included in the amounts disclosed in the table above, at September 30, 2024, and December 31, 2023, the obligor group held receivables due from other subsidiary companies of $472 million and $768 million, respectively, long-term notes receivable due from other subsidiary companies of $10.53 billion and $10.20 billion, respectively, payables due to other subsidiary companies of $1.80 billion and $1.83 billion, respectively, and long-term notes payable due to other subsidiary companies of $2.17 billion and $2.32 billion, respectively.