SILGAN HOLDINGS INC

Previous wording

Net Sales. In the second quarter of 2026, consolidated net sales were $1.6 billion, an increase of $104.1 million, or 6.8 percent, as compared to the second quarter of 2025 primarily due to the contractual pass through of higher raw material and other manufacturing costs, the impact from favorable foreign currency translation of approximately $16.0 million and a more favorable mix of products sold in the custom containers segment, partially offset by a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments and lower volumes in the dispensing and specialty closures and custom containers segments.

Current wording

Net Sales. In the third quarter of 2026, consolidated net sales were $2.0 billion, an increase of $31.5 million, or 1.6 percent, as compared to the third quarter of 2025 primarily due to the pass through of higher raw material and other manufacturing costs and a more favorable mix of products sold in the custom containers segment, partially offset by a less favorable mix of products sold in the dispensing and specialty closures segment, lower volumes in the metal containers and custom containers segments and the impact from unfavorable foreign currency translation of approximately $5.0 million.

Previous wording

In the first six months of 2026, consolidated net sales were $3.2 billion, an increase of $198.7 million, or 6.6 percent, as compared to the first six months of 2025 primarily due to the contractual pass through of higher raw material and other manufacturing costs, the impact from favorable foreign currency translation of approximately $62.0 million, higher unit volumes in the metal containers segment and a more favorable mix of products sold in the custom containers segment, partially offset by a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments and lower volumes in the dispensing and specialty closures and custom containers segments.

Current wording

In the first nine months of 2026, consolidated net sales were $5.2 billion, an increase of $230.1 million, or 4.6 percent, as compared to the first nine months of 2025 primarily due to the pass through of higher raw material and other manufacturing costs, the impact from favorable foreign currency translation of approximately $58.0 million and a more favorable mix of products sold in the custom containers segment, partially offset by a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments and lower volumes across all segments.

Previous wording

Gross Profit. Gross profit margin decreased 1.5 percentage points to 17.9 percent in the second quarter of 2026 as compared to the same period in 2025 and decreased 1.4 percentage points to 17.5 percent in the first six months of 2026 as compared to the same periods in 2025 primarily for the reasons discussed below in "Income before Interest and Income Taxes".

Current wording

Gross Profit. Gross profit margin decreased 0.2 percentage points to 16.1 percent in the third quarter of 2026 as compared to the same period in 2025 and decreased 0.9 percentage points to 17.0 percent in the first nine months of 2026 as compared to the same periods in 2025 primarily for the reasons discussed below in "Income before Interest and Income Taxes".

Previous wording

Selling, General and Administrative Expenses. In the second quarter of 2026, selling, general and administrative expenses as a percentage of consolidated net sales decreased to 7.7 percent as compared to 7.9 percent in the second quarter of 2025. For the second quarter of 2026, selling, general and administrative expenses increased $5.0 million to $126.8 million as compared to the second quarter of 2025. In the first six months of 2026, selling, general and administrative expenses as a percentage of consolidated net sales decreased to 8.1 percent as compared to 8.3 percent in the first six months of 2025. In the first six months of 2026, selling, general and administrative expenses increased $7.1 million to $258.0 million as compared to the first six months of 2025. The increase in selling, general and administrative expenses for each of the second quarter and the first six months of 2026 was primarily due to the impact of higher foreign currency exchange rates and higher expenses for corporate development activities.

Current wording

Selling, General and Administrative Expenses. In the third quarter of 2026, selling, general and administrative expenses as a percentage of consolidated net sales decreased to 5.9 percent as compared to 6.1 percent in the third quarter of 2025. For the third quarter of 2026, selling, general and administrative expenses decreased $1.4 million to $120.8 million as compared to the third quarter of 2025. In the first nine months of 2026, selling, general and administrative expenses as a percentage of consolidated net sales decreased to 7.2 percent as compared to 7.4 percent in the first nine months of 2025. In the first nine months of 2026, selling, general and administrative expenses increased $5.7 million to $378.8 million as compared to the first nine months of 2025. The increase in selling, general and administrative expenses for the first nine months of 2026 was primarily due to the impact of higher foreign currency exchange rates and higher expenses for corporate development activities.

Previous wording

Income before Interest and Income Taxes. In the second quarter of 2026, income before interest and income taxes decreased by $16.5 million to $151.0 million as compared to $167.5 million in the second quarter of 2025, and margins decreased to 9.2 percent from 10.9 percent over the same periods. The decrease in income before interest and income taxes was primarily the result of a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments, higher rationalization charges, higher expenses for corporate development activities and lower volumes in the dispensing and specialty closures and custom containers segments, partially offset by the favorable impact of foreign currency and a more favorable mix of products sold in the custom containers segment. Rationalization charges were $18.2 million and $9.9 million in the second quarters of 2026 and 2025, respectively.

Current wording

Income before Interest and Income Taxes. In the third quarter of 2026, income before interest and income taxes decreased by $7.0 million to $191.7 million as compared to $198.7 million in the third quarter of 2025, and margins decreased to 9.4 percent from 9.9 percent over the same periods. The decrease in income before interest and income taxes was primarily the result of a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments, higher rationalization charges, higher expenses for corporate development activities, the delayed pass through of inflation in manufacturing costs including freight and applicable surcharges and less favorable manufacturing efficiency in the dispensing and specialty closures segment, and lower volumes in the metal containers and custom containers segments, partially offset by the favorable impact from an inventory management program and improved manufacturing efficiencies in the metal containers segment, the favorable impact of foreign currency and a more favorable mix of products sold in the custom containers segment. Rationalization charges were $17.1 million and $7.2 million in the third quarters of 2026 and 2025, respectively. Costs attributed to announced acquisitions were $10.3 million for the third quarter of 2026.

Previous wording

In the first six months of 2026, income before interest and income taxes decreased by $20.5 million to $277.6 million as compared to $298.1 million in the first six months of 2025, and margins decreased to 8.7 percent from 9.9 percent over the same periods. The decrease in income before interest and income taxes was primarily the result of a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments, lower volumes in the dispensing and specialty closures and custom containers segments, higher rationalization charges, higher expenses for corporate development activities, and the benefit in the prior year period from the sell through of lower cost inventory and the adverse impact in the current year period from the sell through of higher cost inventory in our European metal closures operations, partially offset by the favorable impact of foreign currency, higher unit volumes in the metal containers segment and a more favorable mix of products sold in the custom containers segment. Rationalization charges were $27.2 million and $20.8 million in the first six month of 2026 and 2025, respectively.

Current wording

In the first nine months of 2026, income before interest and income taxes decreased by $27.4 million to $469.3 million as compared to $496.7 million in the first nine months of 2025, and margins decreased to 9.0 percent from 9.9 percent over the same periods. The decrease in income before interest and income taxes was primarily the result of a less favorable mix of products sold in the dispensing and specialty closures and metal containers segments, higher rationalization charges, lower volumes across all segments, higher expenses for corporate development activities, and the benefit in the prior year period from the sell through of lower cost inventory as compared to the adverse impact in the current year period from the sell through of higher cost inventory in our European metal closures operations, partially offset by the favorable impact from an inventory management program and improved manufacturing efficiencies in the metal containers segment, the favorable impact of foreign currency and a more favorable mix of products sold in the custom containers segment. Rationalization charges were $44.3 million and $28.0 million in the first nine month of 2026 and 2025, respectively. Costs attributed to announced acquisitions were $10.3 million and $1.1 million in the first nine months of 2026 and 2025, respectively.

Previous wording

Interest and Other Debt Expense. In the second quarter of 2026, interest and other debt expense decreased $1.6 million to $47.1 million as compared to $48.7 million in the second quarter of 2025. In the first six months of 2026, interest and other debt expense before the loss on early extinguishment of debt decreased $3.1 million to $88.5 million as compared to $91.6 million in the first six months of 2025. The decrease in the second quarter of 2026 was primarily due to lower average outstanding debt borrowings in the current year period as compared to the prior year period. The decrease in the first six months of 2026 was primarily due to lower weighted average interest rates during the current year period as compared to the prior year period.

Current wording

Interest and Other Debt Expense. In the third quarter of 2026, interest and other debt expense decreased $2.7 million to $47.3 million as compared to $50.0 million in the third quarter of 2025. In the first nine months of 2026, interest and other debt expense before the loss on early extinguishment of debt decreased $5.8 million to $135.8 million as compared to $141.6 million in the first nine months of 2025. The decrease in the third quarter of 2026 was primarily due to lower average outstanding debt borrowings in the current year period as compared to the prior year period. The decrease in the first nine months of 2026 was primarily due to lower average outstanding debt borrowings and lower weighted average interest rates during the current year period as compared to the prior year period.

Previous wording

Provision for Income Taxes. For the second quarters of 2026 and 2025, the effective tax rates were 28.1 percent and 25.6 percent, respectively. For the first six months of 2026 and 2025, the effective tax rates were 27.4 percent and 24.8 percent, respectively. The increase in the effective tax rates in the second quarter and first six months of 2026 was primarily due to changes in the geographic mix of profit in the current year periods as compared to the prior year periods.

Current wording

Provision for Income Taxes. For the third quarters of 2026 and 2025, the effective tax rates were 27.9 percent and 24.3 percent, respectively. For the first nine months of 2026 and 2025, the effective tax rates were 27.6 percent and 24.6 percent, respectively. The increase in the effective tax rates in the third quarter and first nine months of 2026 was primarily due to changes in the geographic mix of profit in the current year periods as compared to the prior year periods.

Previous wording

In the second quarter of 2026, net sales for the dispensing and specialty closures segment increased $11.7 million, or 1.7 percent, as compared to the second quarter of 2025. This increase was primarily the result of the pass through of higher raw material and other costs and the impact of favorable foreign currency translation of approximately $14.0 million, partially offset by a less favorable mix of products sold and lower unit volumes of approximately one percent predominantly in Brazil.

Current wording

In the first nine months of 2026, net sales for the dispensing and specialty closures segment increased $34.6 million, or 1.7 percent, as compared to the first nine months of 2025. This increase was primarily the result of favorable foreign currency translation of approximately $48.0 million and the pass through of higher raw material and other costs, partially offset by lower unit volumes of approximately two percent and a less favorable mix of products sold.

Previous wording

In the second quarter of 2026, adjusted EBIT of the dispensing and specialty closures segment decreased $0.3 million as compared to the second quarter of 2025, and adjusted EBIT margin decreased to 15.1 percent from 15.4 percent over the same periods. The decrease in adjusted EBIT was primarily due to a less favorable mix of products sold and lower unit volumes, partially offset by the favorable impact of foreign currency.

Current wording

In the third quarter of 2026, adjusted EBIT of the dispensing and specialty closures segment decreased $2.3 million as compared to the third quarter of 2025, and adjusted EBIT margin decreased to 15.9 percent from 16.4 percent over the same periods. The decrease in adjusted EBIT was primarily due to a less favorable mix of products sold, the delayed pass through of inflation in manufacturing costs including freight and applicable surcharges, and less favorable manufacturing efficiency in the current year quarter, partially offset by the favorable impact of foreign currency.

Previous wording

In the first six months of 2026, adjusted EBIT of the dispensing and specialty closures segment decreased $3.4 million as compared to the first six months of 2025, and adjusted EBIT margin decreased to 14.6 percent from 15.1 percent over the same periods. The decrease in adjusted EBIT was primarily due to a less favorable mix of products sold, lower unit volumes, and the benefit in the prior year period from the sell through of lower cost inventory and the adverse impact in the current year period from the sell through of higher cost inventory in our European metal closures operations, partially offset by the favorable impact of foreign currency.

Current wording

In the first nine months of 2026, adjusted EBIT of the dispensing and specialty closures segment decreased $5.8 million as compared to the first nine months of 2025, and adjusted EBIT margin decreased to 15.0 percent from 15.5 percent over the same periods. The decrease in adjusted EBIT was primarily due to a less favorable mix of products sold, lower unit volumes, and the benefit in the prior year period from the sell through of lower cost inventory as compared to the adverse impact in the current year period from the sell through of higher cost inventory in our European metal closures operations, partially offset by the favorable impact of foreign currency.

Previous wording

In the second quarter of 2026, net sales for the metal containers segment increased $87.8 million, or 13.0 percent, as compared to the second quarter of 2025. This increase was primarily the result of the contractual pass through of higher raw material and other manufacturing costs and the impact of favorable foreign currency translation of approximately $2.0 million, partially offset by a less favorable mix of products sold. Unit volumes were comparable to the prior year period with higher volumes for pet food markets offset by lower volumes for fruit and vegetable markets as a result of more normal seasonal order patterns and soup markets.

Current wording

In the third quarter of 2026, net sales for the metal containers segment increased $16.0 million, or 1.4 percent, as compared to the third quarter of 2025. This increase was primarily the result of the contractual pass through of higher raw material and other manufacturing costs, partially offset by lower unit volumes of approximately four percent and the impact of unfavorable foreign currency translation of approximately $2.0 million. Lower volumes for soup markets were partially offset by higher volumes for fruit and vegetable and pet food markets.

Previous wording

In the first six months of 2026, net sales for the metal containers segment increased $184.3 million, or 14.1 percent, as compared to the first six months of 2025. This increase was primarily the result of the contractual pass through of higher raw material and other manufacturing costs, the impact of favorable foreign currency translation of approximately $11.0 million, and higher unit volumes of approximately one percent, partially offset by a less favorable mix of products sold.

Current wording

In the first nine months of 2026, net sales for the metal containers segment increased $200.4 million, or 8.1 percent, as compared to the first nine months of 2025. This increase was primarily the result of the contractual pass through of higher raw material and other manufacturing costs and the impact of favorable foreign currency translation of approximately $9.0 million, partially offset by a less favorable mix of products sold and lower unit volumes of approximately one percent.

Previous wording

In the second quarter of 2026, adjusted EBIT of the metal containers segment decreased $4.9 million as compared to the second quarter of 2025, and adjusted EBIT margin decreased to 8.6 percent from 10.5 percent for the same periods. The decrease in adjusted EBIT was primarily due to a less favorable mix of products sold due to higher unit volumes for pet food markets and lower unit volumes for fruit and vegetable markets and soup markets. Adjusted EBIT margin was negatively impacted by the mathematical consequence of passing through higher raw material costs during the second quarter of 2026.

Current wording

In the third quarter of 2026, adjusted EBIT of the metal containers segment increased $9.4 million as compared to the third quarter of 2025, and adjusted EBIT margin increased to 9.0 percent from 8.3 percent for the same periods. The increase in adjusted EBIT was primarily due to the favorable impact from an inventory management program and improved manufacturing efficiencies, partially offset by a less favorable mix of products sold and lower unit volumes.

Previous wording

In the first six months of 2026, adjusted EBIT of the metal containers segment decreased $4.6 million as compared to the first six months of 2025, and adjusted EBIT margin decreased to 7.8 percent from 9.2 percent for the same periods. The decrease in adjusted EBIT was primarily due to a less favorable mix of products sold, partially offset by higher unit volumes. Adjusted EBIT margin was negatively impacted by the mathematical consequence of passing through higher raw material costs during the first six months of 2026.

Current wording

In the first nine months of 2026, adjusted EBIT of the metal containers segment increased $4.7 million as compared to the first nine months of 2025, while adjusted EBIT margin decreased to 8.3 percent from 8.8 percent for the same periods. The increase in adjusted EBIT was primarily due to the favorable impact from an inventory management program and improved manufacturing efficiencies, partially offset by a less favorable mix of products sold and lower unit volumes. Adjusted EBIT margin was negatively impacted by the mathematical consequence of passing through higher raw material costs during the first nine months of 2026.

Previous wording

In the second quarter of 2026, net sales for the custom containers segment increased $4.6 million, or 2.9 percent, as compared to the second quarter of 2025. This increase was principally due to the pass through of higher raw material and other manufacturing costs and a more favorable mix of products sold, partially offset by lower volumes of approximately four percent primarily from the exit of lower margin business in late 2025 as a result of footprint optimization plans to achieve previously announced cost reduction goals.

Current wording

In the third quarter of 2026, net sales for the custom containers segment increased $6.7 million, or 4.2 percent, as compared to the third quarter of 2025. This increase was principally due to the pass through of higher raw material and other manufacturing costs and a more favorable mix of products sold, partially offset by lower volumes of approximately eight percent primarily from the exit of lower margin business in late 2025 as a result of footprint optimization plans to achieve previously announced cost reduction goals.

Previous wording

In the first six months of 2026, net sales for the custom containers segment decreased $11.5 million, or 3.5 percent, as compared to the first six months of 2025. This decrease was principally due to lower volumes of approximately seven percent primarily from the exit of lower margin business in late 2025 as a result of footprint optimization plans to achieve previously announced cost reduction goals, partially offset by the pass through of higher raw material and other manufacturing costs, a more favorable mix of products sold and the impact of favorable foreign currency translation of approximately $1.0 million.

Current wording

In the first nine months of 2026, net sales for the custom containers segment decreased $4.9 million, or 1.0 percent, as compared to the first nine months of 2025. This decrease was principally due to lower volumes of approximately eight percent primarily from the exit of lower margin business in late 2025 as a result of footprint optimization plans to achieve previously announced cost reduction goals, partially offset by the pass through of higher raw material and other manufacturing costs, a more favorable mix of products sold and the impact of favorable foreign currency translation of approximately $1.0 million.

Previous wording

In the second quarter of 2026, adjusted EBIT of the custom containers segment increased $2.3 million as compared to the second quarter of 2025, and adjusted EBIT margin increased to 16.4 percent from 15.5 percent over the same periods. The increase in adjusted EBIT was primarily attributable a more favorable mix of products sold including as a result of the benefit of previously announced cost reductions in the current year quarter, partially offset by lower volumes.

Current wording

In the third quarter of 2026, adjusted EBIT of the custom containers segment increased $0.6 million as compared to the third quarter of 2025, while adjusted EBIT margin decreased to 14.2 percent from 14.4 percent over the same periods. The increase in adjusted EBIT was primarily attributable to a more favorable mix of products sold including as a result of the benefit of previously announced cost reductions in the current year quarter, partially offset by lower volumes.

Previous wording

In the first six months of 2026, adjusted EBIT of the custom containers segment decreased $0.6 million as compared to the first six months of 2025, while adjusted EBIT margin increased to 15.5 percent from 15.1 percent over the same periods. The decrease in adjusted EBIT was primarily attributable to lower volumes, partially offset by a more favorable mix of products sold including as a result of the benefit of previously announced cost reductions in the current year period.

Current wording

In the first nine months of 2026, adjusted EBIT of the custom containers segment was flat at $72.6 million as compared to the first nine months of 2025, while adjusted EBIT margin increased slightly to 15.0 percent from 14.9 percent over the same periods. A more favorable mix of products sold including as a result of the benefit of previously announced cost reductions in the current year period offset the impact of lower volumes in the current year period.

Previous wording

For the six months ended June 30, 2026, we used net borrowings of revolving loans of $1.1 billion, cash and cash equivalents of $729.1 million and the positive effect of exchange rate changes on cash and cash equivalents of $0.7 million to fund cash used in operations of $993.9 million, the repayment of long-term debt of $542.5 million, net capital expenditures and other investing activities of $141.7 million, decreases in outstanding checks of $97.4 million, dividends paid on our common stock of $45.1 million, repurchases of our common stock of $7.8 million, the repayment of principal amounts under finance leases of $1.9 million and debt issuance costs of $1.4 million.

Current wording

For the nine months ended September 30, 2026, we used net borrowings of revolving loans of $834.9 million and cash and cash equivalents of $755.7 million to fund cash used in operations of $646.4 million, the repayment of long-term debt of $542.5 million, net capital expenditures and other investing activities of $224.2 million, decreases in outstanding checks of $97.4 million, dividends paid on our common stock of $67.3 million, repurchases of our common stock of $7.8 million, the repayment of principal amounts under finance leases of $3.0 million, debt issuance costs of $1.4 million and the negative effect of exchange rate changes on cash and cash equivalents of $0.6 million.

Previous wording

For the six months ended June 30, 2025, we used net borrowings of revolving loans of $1.4 billion, cash and cash equivalents of $505.4 million and the positive effect of exchange rate changes on cash and cash equivalents of $31.4 million to fund cash used in operations of $904.9 million, the repayment of long-term debt of $706.3 million, net capital expenditures and other investing activities of $145.8 million, decreases in outstanding checks of $85.0 million, dividends paid on our common stock of $43.4 million, repurchases of our common stock of $6.9 million and the repayment of principal amounts under finance leases of $2.4 million.

Current wording

For the nine months ended September 30, 2025, we used proceeds from the issuance of the 4¼% Senior Notes of $703.6 million, net borrowings of revolving loans of $556.3 million, cash and cash equivalents of $433.7 million and the positive effect of exchange rate changes on cash and cash equivalents of $32.2 million to fund cash used in operations of $564.0 million, the repayment of long-term debt of $706.3 million, net capital expenditures and other investing activities of $227.3 million, decreases in outstanding checks of $85.0 million, dividends paid on our common stock of $64.8 million, repurchases of our common stock of $66.2 million, debt issuance costs of $8.3 million and the repayment of principal amounts under finance leases of $3.9 million.

Previous wording

At June 30, 2026, we had $1.1 billion of revolving loans outstanding under the Credit Agreement. After taking into account outstanding letters of credit of $21.7 million, the available portion of revolving loans under the Credit Agreement at June 30, 2026 was $402.4 million.

Current wording

At September 30, 2026, we had $812.7 million of revolving loans outstanding under the Credit Agreement. After taking into account outstanding letters of credit of $21.7 million, the available portion of revolving loans under the Credit Agreement at September 30, 2026 was $665.6 million.

Previous wording

For our suppliers, we believe that we negotiate the best terms possible, including payment terms. In connection therewith, we initiated a SCF program with a major global financial institution. Under this SCF program, a qualifying supplier may elect, but is not obligated, to sell its receivables from us to such financial institution. A participating supplier negotiates its receivables sale arrangements directly with the financial institution under this SCF program. While we are not party to, and do not participate in the negotiation of, such arrangements, such financial institution allows a participating supplier to utilize our creditworthiness in establishing a credit spread in respect of the sale of its receivables from us as well as other applicable terms. This may provide a supplier with more favorable terms than it would be able to secure on its own. We have no economic interest in a supplier’s decision to sell a receivable. Once a qualifying supplier elects to participate in this SCF program and reaches an agreement with the financial institution, the supplier independently elects which individual invoices to us that they sell to the financial institution. All of our payments to a participating supplier are paid to the financial institution on the invoice due date under our agreement with such supplier, regardless of whether the individual invoice was sold by the supplier to the

Current wording

For our suppliers, we believe that we negotiate the best terms possible, including payment terms. In connection therewith, we initiated a SCF program with a major global financial institution. Under this SCF program, a qualifying supplier may elect, but is not obligated, to sell its receivables from us to such financial institution. A participating supplier negotiates its receivables sale arrangements directly with the financial institution under this SCF program. While we are not party to, and do not participate in the negotiation of, such arrangements, such financial institution allows a participating supplier to utilize our creditworthiness in establishing a credit spread in respect of the sale of its receivables from us as well as other applicable terms. This may provide a supplier with more favorable terms than it would be able to secure on its own. We have no economic interest in a supplier’s decision to sell a receivable. Once a qualifying supplier elects to participate in this SCF program and reaches an agreement with the financial institution, the supplier independently elects which individual invoices to us that they sell to the financial institution. All of our payments to a participating supplier are paid to the financial institution on the invoice

Previous wording

-27- financial institution. The financial institution then pays the supplier on the invoice due date under our agreement with such supplier for any invoices not previously sold by the supplier to the financial institution. Amounts due to a supplier that elects to participate in this SCF program are included in accounts payable in our Condensed Consolidated Balance Sheet, and the associated payments are reflected in net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows. Separate from this SCF program, we and suppliers who participate in this SCF program generally maintain the contractual right to require the other party to negotiate in good faith the existing payment terms as a result of changes in market conditions, including changes in interest rates and general market liquidity, or in some cases for any reason. Outstanding trade accounts payables subject to this SCF program were approximately $370.4 million, $248.4 million and $438.5 million at June 30, 2026 and 2025 and December 31, 2025, respectively.

Current wording

-27- due date under our agreement with such supplier, regardless of whether the individual invoice was sold by the supplier to the financial institution. The financial institution then pays the supplier on the invoice due date under our agreement with such supplier for any invoices not previously sold by the supplier to the financial institution. Amounts due to a supplier that elects to participate in this SCF program are included in accounts payable in our Condensed Consolidated Balance Sheet, and the associated payments are reflected in net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows. Separate from this SCF program, we and suppliers who participate in this SCF program generally maintain the contractual right to require the other party to negotiate in good faith the existing payment terms as a result of changes in market conditions, including changes in interest rates and general market liquidity, or in some cases for any reason. Outstanding trade accounts payables subject to this SCF program were approximately $482.0 million, $385.8 million and $438.5 million at September 30, 2026 and 2025 and December 31, 2025, respectively.

Previous wording

We continually evaluate cost reduction opportunities across each of our segments, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Under our rationalization plans, we made cash payments of $20.8 million and $8.0 million for the six months ended June 30, 2026 and 2025, respectively. Excluding the impact of our withdrawal from the Central States Pension Plan in 2019, remaining expenses and cash expenditures for our rationalization plans are expected to be $14.1 million and $32.6 million, respectively. Remaining expenses for the accretion of interest for the withdrawal liability related to the Central States Pension Plan are expected to average approximately $0.7 million per year and be recognized annually through 2040, and remaining cash expenditures for the withdrawal liability related to the Central States Pension Plan are expected to be approximately $2.6 million annually through 2040.

Current wording

We continually evaluate cost reduction opportunities across each of our segments, including rationalizations of our existing facilities through plant closings and downsizings. We use a disciplined approach to identify opportunities that generate attractive cash returns. Under our rationalization plans, we made cash payments of $43.7 million and $15.5 million for the nine months ended September 30, 2026 and 2025, respectively. Excluding the impact of our withdrawal from the Central States Pension Plan in 2019, remaining expenses and cash expenditures for our rationalization plans are expected to be $13.5 million and $26.8 million, respectively. Remaining expenses for the accretion of interest for the withdrawal liability related to the Central States Pension Plan are expected to average approximately $0.7 million per year and be recognized annually through 2040, and remaining cash expenditures for the withdrawal liability related to the Central States Pension Plan are expected to be approximately $2.6 million annually through 2040.

Previous wording

You should also read Note 3 to our Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 included elsewhere in this Quarterly Report.

Current wording

You should also read Note 3 to our Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2026 included elsewhere in this Quarterly Report.