JELD-WEN Holding Inc
For the period ended Jun 29, 2024. Filed Aug 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2024 · Filed Aug 6, 2024
JELD$1.02+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-30; filed 2024-05-07.
0001674335-24-000127
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-29; filed 2024-08-06.
0001674335-24-000154
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 72 previous paragraphs and 96 current paragraphs.
48 unchanged; 23 reworded; 16 added; 1 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 5 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
SG&A Expense– SG&A expense increased $6.0 million, or 3.7%, to $168.5 million in the three months ended June 29, 2024 from $162.5 million in the three months ended July 1, 2023. SG&A expense as a percentage of net revenues increased to 17.1% in the three months ended June 29, 2024 from 14.4% in the three months ended July 1, 2023. The increase in SG&A expense was primarily due to increased professional fees, including non-recurring transformation journey expenses, and increased labor cost driven by an increase in inflation, partially offset by decreased performance-based variable compensation expense.
Current report
Comparison of the Six Months Ended June 29, 2024 to the Six Months Ended July 1, 2023
Current report
Consolidated Results
Current report
Net Revenues– Net revenues decreased $261.1 million, or 11.8%, to $1,945.1 million in the six months ended June 29, 2024 from $2,206.3 million in the six months ended July 1, 2023. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 12%. Core Revenues decreased due to a 12% decline in volume/mix.
Current report
Gross Margin– Gross margin decreased $54.7 million, or 13.1%, to $362.6 million in the six months ended June 29, 2024 from $417.3 million in the six months ended July 1, 2023. Gross margin as a percentage of net revenues was 18.6% in the six months ended June 29, 2024 and 18.9% in the six months ended July 1, 2023. The slight decrease in gross margin percentage was due to a decremental impact of volume/mix, partially offset by an increase in productivity.
Current report
(1)North America depreciation and amortization expense in the three months ended July 1, 2023 includes accelerated depreciation of $9.1 million from reviews of equipment capacity optimization.
Current report
(1)North America depreciation and amortization expense in the six months ended July 1, 2023 includes accelerated depreciation of $9.1 million from reviews of equipment capacity optimization.
Current report
Net revenues in Europe decreased $33.2 million, or 10.8%, to $275.4 million in the three months ended June 29, 2024 from $308.7 million in the three months ended July 1, 2023. The decrease was primarily due to a decrease in Core Revenues of 10% and an adverse foreign exchange impact of 1%. Core Revenues decreased due to unfavorable volume/mix of 12% primarily due to market softness across the region, partially offset by a 2% benefit from price realization.
Current report
Comparison of the Six Months Ended June 29, 2024 to the Six Months Ended July 1, 2023
Current report
North America
Current report
Net revenues in North America decreased $194.6 million, or 12.3%, to $1,390.6 million in the six months ended June 29, 2024 from $1,585.1 million in the six months ended July 1, 2023. The decrease was primarily due to a decrease in Core Revenues of 12%. Core Revenues decreased due to an 12% unfavorable volume/mix driven by weakened market demand.
Current report
Adjusted EBITDA from continuing operations in North America decreased $51.2 million to $136.8 million, or 27.2%, in the six months ended June 29, 2024 from $188.0 million in the six months ended July 1, 2023. The decrease was primarily due to unfavorable volume mix and price/cost, partially offset by improved productivity.
Current report
Europe
Current report
Adjusted EBITDA from continuing operations in Europe decreased $6.6 million, or 15.8%, to $34.9 million in the six months ended June 29, 2024 from $41.5 million in the six months ended July 1, 2023. The decrease was primarily due to unfavorable volume/mix, partially offset by favorable productivity and positive price/cost.
Current report
Corporate and unallocated costs
Current report
Corporate and unallocated costs decreased by $23.1 million, or 55.9%, to $18.2 million in the six months ended June 29, 2024, from $41.3 million in the six months ended July 1, 2023. The decrease in cost was primarily due to a decrease in performance-based variable compensation expense, reduction in non-strategic professional fees, insurance reimbursements received during the six months ended June 29, 2024, and corporate function expense savings.
Removed paragraphs (1)
Previous report
The U.S. Congress, the Organization for Economic Co-operation and Development (“OECD”), the EU and other government agencies in jurisdictions in which we and our affiliates do business have maintained a focus on the taxation of multinational companies. During 2023, the OECD issued administrative guidance for the Pillar Two Global Anti-Base Erosion rules (“Pillar Two”), which generally imposes a 15% global minimum tax on multinational companies. Many Pillar Two rules are effective for fiscal years beginning on January 1, 2024, with other aspects to be effective from 2025. We regularly monitor developments in our jurisdictions and consider the impact of the tax-related proposals as they arise. We do not expect the minimum tax tohave a material impact to our financial statements.
Reworded paragraphs (23)
Previous wording
Net Revenues– Net revenues decreased $121.4 million, or 11.2%, to $959.1 million in the three months ended March 30, 2024 from $1,080.5 million in the three months ended April 1, 2023. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 12% partially offset by a favorable impact from foreign exchange of 1%. Core Revenues decreased due to a 12% decline in volume/mix.
Current wording
Net Revenues– Net revenues decreased $139.8 million, or 12.4%, to $986.0 million in the three months ended June 29, 2024 from $1,125.8 million in the three months ended July 1, 2023. The decrease in net revenues was primarily driven by a decrease in Core Revenues of 12%. Core Revenues decreased due to a 12% decline in volume/mix.
Previous wording
Gross Margin– Gross margin decreased $19.2 million, or 10.0%, to $172.6 million in the three months ended March 30, 2024 from $191.8 million in the three months ended April 1, 2023. Gross margin as a percentage of net revenues was 18.0% in the three months ended March 30, 2024 and 17.7% in the three months ended April 1, 2023. The slight increase in gross margin percentage was due primarily to improved productivity.
Current wording
Gross Margin– Gross margin decreased $35.5 million, or 15.7%, to $190.0 million in the three months ended June 29, 2024 from $225.6 million in the three months ended July 1, 2023. Gross margin as a percentage of net revenues was 19.3% in the three months ended June 29, 2024 and 20.0% in the three months ended July 1, 2023. The slight decrease in gross margin percentage was due to a decremental impact of volume/mix, partially offset by an increase in productivity.
Previous wording
Restructuring and Asset-Related Charges– Restructuring and asset-related charges increased $8.8 million, or 94.9% to $18.1 million in the three months ended March 30, 2024 from $9.3 million in the three months ended April 1, 2023. The increase in restructuring charges was primarily due to an increase in charges incurred to close certain manufacturing facilities in our North America segment. For more information, refer to Note 16 - Restructuring and Asset-Related Chargesof our consolidated financial statements included in this Form 10-Q.
Current wording
Restructuring and Asset-Related Charges– Restructuring and asset-related charges increased $9.6 million, or 141.4% to $16.4 million in the three months ended June 29, 2024 from $6.8 million in the three months ended July 1, 2023. The increase in restructuring was primarily due to an increase in charges incurred to transform the operating structure of our Europe segment and to close certain manufacturing facilities in our North America segment. For more information, refer to Note 16 - Restructuring and Asset-Related Chargesof our consolidated financial statements included in this Form 10-Q.
Previous wording
Interest Expense, Net– Interest expense, net, decreased $5.8 million, or 27.0%, to $15.7 million in the three months ended March 30, 2024 from $21.5 million in the three months ended April 1, 2023. The decrease was primarily due to lower long-term debt balances resulting from the redemption of our Senior Secured Notes and partial redemption of our Senior Notes in the third quarter of 2023, and an increase in interest income due to higher cash equivalents balances, partially offset by a decrease in interest income from interest rate derivatives.
Current wording
Interest Expense, Net– Interest expense, net, decreased $4.3 million, or 20.6%, to $16.6 million in the three months ended June 29, 2024 from $20.9 million in the three months ended July 1, 2023. The decrease was primarily due to lower long-term debt balances resulting from the redemption of our Senior Secured Notes and partial redemption of our Senior Notes in the third quarter of 2023, and an increase in interest income due to higher cash equivalents balances, partially offset by a decrease in interest income from interest rate derivatives.
Previous wording
Income Taxes– Income tax benefit was $3.4 million in the three months ended March 30, 2024 compared to an income tax expense of $3.5 million in the three months ended April 1, 2023. The effective tax rate in the three months ended March 30, 2024 was 11.0% compared to 29.2% in the three months ended April 1, 2023. The effective tax rate for the three months ended March 30, 2024 was primarily driven by $2.0 million of tax expense on uncertain tax positions from ongoing audits as well as losses for jurisdictions for which there is a full valuation allowance in the quarter. The effective tax rate for the three months ended April 1, 2023 was primarily driven by$1.2 million of tax expense attributable to share-based compensation, partially offset by $0.2 million of tax benefit attributable to uncertain tax positions taken in the previous years.
Current wording
Income Taxes– Income tax expense was $9.6 million in the three months ended June 29, 2024 compared to $10.8 million in the three months ended July 1, 2023. The effective tax rate in the three months ended June 29, 2024 was (107.1)%. The effective tax rate for the three months ended June 29, 2024 was primarily driven by $7.7 million of tax expense on uncertain tax positions relating primarily to a historical income tax audit and $2.2 million of valuation expense recorded against our U.S. state tax attributes, as well as losses for jurisdictions for which there is a full valuation allowance in the quarter. The effective tax rate in the three months ended July 1, 2023 was 32.3%. The effective tax rate for the three months ended July 1, 2023 was primarily driven by $1.5 million of tax expense attributable to valuation allowance expense recorded against our tax attributes.
Previous wording
SG&A Expense– SG&A expense increased $30.0 million, or 19.7%, to $182.8 million in the three months ended March 30, 2024 from $152.8 million in the three months ended April 1, 2023. SG&A expense as a percentage of net revenues increased to 19.1% in the three ended March 30, 2024 from 14.1% in the three months ended April 1, 2023. The increase in SG&A expense was primarily due to accelerated amortization of an ERP system that we are no longer utilizing upon completion of our related obligations under the JW Australia Transition Services Agreement during the first quarter of 2024, and increased professional fees, including third party advisor fees for strategic transformation initiatives.
Current wording
SG&A Expense– SG&A expense increased $36.0 million, or 11.4%, to $351.3 million in the six months ended June 29, 2024 from $315.2 million in the six months ended July 1, 2023. SG&A expense as a percentage of net revenues increased to 18.1% in six months ended June 29, 2024 from 14.3% in the six months ended July 1, 2023. The increase in SG&A expense was primarily due to increased professional fees, including non-recurring transformation journey expenses, increased labor cost driven by an increase in inflation, and accelerated amortization of an ERP system that we are no longer utilizing upon completion of our related obligations under the JW Australia Transition Services Agreement during the first quarter of 2024, partially offset by decreased performance-based variable compensation expense.
Previous wording
Loss on Extinguishment and Refinancing of Debt– The $1.4 million loss on extinguishment of debt is related to the amendment of our Term Loan Facility during the three months ended March 30, 2024. Refer to Note 10 - Long-Term Debtof our consolidated financial statements included in this Form 10-Q.
Current wording
Loss on Extinguishment and Refinancing of Debt– The $1.4 million loss on extinguishment of debt is related to the amendment of our Term Loan Facility during the six months ended June 29, 2024. Refer to Note 10 - Long-Term Debtof our consolidated financial statements included in this Form 10-Q.
Previous wording
Other Income, Net– Other income, net increased $10.6 million, or 286.8%, to $14.3 million in the three months ended March 30, 2024 from $3.7 million in the three months ended April 1, 2023. Other income, net in the three months ended March 30, 2024 primarily consisted of recovery of the JW Australia transition services costs incurred of $4.1 million, cash received on impaired notes of $3.5 million, income from the refund of deposits of antidumping and countervailing duties of $2.9 million, insurance reimbursements of $1.7 million and foreign currency gains of $1.5 million. Other income, net in the three months ended April 1, 2023 primarily consisted of foreign currency gains of $1.9 million, cash received on impaired notes of $1.4 million, insurance reimbursements of $1.2 million, partially offset by pension expense of $1.7 million.
Current wording
Other Income, Net– Other income, net increased $15.2 million, or 996.3%, to $16.8 million in the six months ended June 29, 2024 from $1.5 million in the six months ended July 1, 2023. Other income, net in the six months ended June 29, 2024 primarily consisted of recovery of the JW Australia transition services costs incurred of $6.5 million, income from the refund of deposits of China antidumping and countervailing duties of $2.9 million, cash received on investment in real estate of $2.5 million, recovery of cost from receipts on impaired notes of $1.4 million, and insurance reimbursements of $1.7 million, partially offset by pension expense of $1.0 million. Other income, net in the six months ended July 1, 2023 primarily consisted of foreign currency gains of $2.1 million, recovery of cost from receipts on impaired notes of $1.7 million, and insurance reimbursements of $1.2 million, partially offset by pension expense of $3.4 million.
Previous wording
We report our segment information in the same way management internally organizes the business in assessing performance and making decisions regarding allocation of resources in accordance with ASC 280-10 -Segment Reporting. We define Adjusted EBITDA from continuing operations as income (loss) from continuing operations, net of tax, adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring net legal and professional expenses and settlements; restructuring and asset-related charges; M&A related costs; net (gain) loss on sale of property and equipment; loss on extinguishment and refinancing of debt; share-based compensation expense; non-cash foreign exchange transaction/translation (gain) loss; and other special items. This non-GAAP financial measure should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.
Current wording
We report our segment information in the same way management internally organizes the business in assessing performance and making decisions regarding allocation of resources in accordance with ASC 280-10 -Segment Reporting. We define Adjusted EBITDA from continuing operations as income (loss) from continuing operations, net of tax, adjusted for the following items: income tax expense (benefit); depreciation and amortization; interest expense, net; and certain special items consisting of non-recurring net legal and professional expenses and settlements; restructuring and asset-related charges; M&A related costs; net (gain) loss on sale of property and equipment; loss on extinguishment and refinancing of debt; share-based compensation expense; non-cash foreign exchange transaction/translation (gain) loss; and other special items. We use Adjusted EBITDA from continuing operations because we believe this measure assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. This non-GAAP financial measure should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.
Previous wording
(1)For a discussion of the Special items listed above, refer to Note 12 -Segment Information of our financial statements included in this Form 10-Q.
Current wording
(1)For a discussion of the Special items listed above, refer to Note 12 -Segment Information of our consolidated financial statements included in this Form 10-Q.
Previous wording
Net revenues in North America decreased $88.0 million, or 11.5%, to $680.0 million in the three months ended March 30, 2024 from $768.0 million in the three months ended April 1, 2023. The decrease was primarily due to a decrease in Core Revenues of 12%. Core Revenues decreased due to an 11% unfavorable volume/mix driven by weakened market demand and 1% unfavorable price realization.
Current wording
Net revenues in North America decreased $106.5 million, or 13.0%, to $710.6 million in the three months ended June 29, 2024 from $817.1 million in the three months ended July 1, 2023. The decrease was primarily due to a decrease in Core Revenues of 13%. Core Revenues decreased due to a 13% unfavorable volume/mix driven by weakened market demand.
Previous wording
Adjusted EBITDA from continuing operations in North America decreased $18.0 million to $61.2 million, or 22.7%, in the three months ended March 30, 2024 from $79.2 million in the three months ended April 1, 2023. The decrease was primarily due to unfavorable volume mix, partially offset by improved productivity.
Current wording
Adjusted EBITDA from continuing operations in North America decreased $33.2 million to $75.6 million, or 30.5%, in the three months ended June 29, 2024 from $108.8 million in the three months ended July 1, 2023. The decrease was primarily due to unfavorable volume/mix and price/cost, partially offset by improved productivity.
Previous wording
Adjusted EBITDA from continuing operations in Europe decreased $3.1 million, or 17.8%, to $14.5 million in the three months ended March 30, 2024 from $17.6 million in the three months ended April 1, 2023. The decrease was primarily due to unfavorable volume/mix, partially offset by favorable productivity and positive price/cost.
Current wording
Adjusted EBITDA from continuing operations in Europe decreased $3.4 million, or 14.4%, to $20.4 million in the three months ended June 29, 2024 from $23.9 million in the three months ended July 1, 2023. The decrease was primarily due to unfavorable volume/mix, partially offset by favorable productivity and positive price/cost.
Previous wording
Corporate and unallocated costs decreased by $10.5 million, or 60.1%, to $7.0 million in the three months ended March 30, 2024, from $17.5 million in the three months ended April 1, 2023. The decrease in cost was primarily due to corporate function expense savings and insurance reimbursements received during the three months three months ended April 1, 2023.
Current wording
Corporate and unallocated costs decreased by $12.6 million, or 52.9%, to $11.2 million in the three months ended June 29, 2024, from $23.8 million in the three months ended July 1, 2023. The decrease in cost was primarily due to decrease in performance-based variable compensation expense, reduction in non-strategic professional fees and corporate function expense savings during the three months ended June 29, 2024.
Previous wording
Net revenues in Europe decreased $33.4 million, or 10.7%, to $279.1 million in the three months ended March 30, 2024 from $312.5 million in the three months ended April 1, 2023. The decrease was primarily due to a decrease in Core Revenues of 12%. Core Revenues decreased due to unfavorable volume/mix of 14% primarily due to market softness across the region, partially offset by a 2% benefit from price realization.
Current wording
Net revenues in Europe decreased $66.6 million, or 10.7%, to $554.5 million in the six months ended June 29, 2024 from $621.1 million in the six months ended July 1, 2023. The decrease was primarily due to a decrease in Core Revenues of 11%. Core Revenues decreased due to unfavorable volume/mix of 13% primarily due to market softness across the region, partially offset by a 2% benefit from price realization.
Previous wording
As of March 30, 2024, we had total liquidity (a non-GAAP measure) of $660.1 million, consisting of $234.5 million in unrestricted cash, $425.6 million available for borrowing under the ABL Facility, compared to total liquidity of $750.6 million as of December 31, 2023. The decrease in total liquidity was primarily due to lower cash balances at March 30, 2024 compared to December 31, 2023.
Current wording
As of June 29, 2024, we had total liquidity (a non-GAAP measure) of $691.6 million, consisting of $212.8 million in unrestricted cash, $478.8 million available for borrowing under the ABL Facility, compared to total liquidity of $750.6 million as of December 31, 2023. The decrease in total liquidity was primarily due to lower cash balances at June 29, 2024 compared to December 31, 2023.
Previous wording
As of March 30, 2024, our cash balances, including $0.8 million of restricted cash, consisted of $39.5 million in the U.S. and $195.7 million in non-U.S. subsidiaries. During the fiscal year ended December 31, 2023, we repatriated $21.8 million from non-U.S. subsidiaries. We utilized cash repatriated from non-U.S. subsidiaries to repay a portion of the outstanding ABL Facility during the year ended December 31, 2023. Based on our current and forecasted level of operations and seasonality of our business, we believe that cash provided by operations and other sources of liquidity, including cash, cash equivalents, and availability under our revolving credit facilities, will provide adequate liquidity for ongoing operations, planned capital expenditures and other investments, and debt service requirements for at least the next twelve months.
Current wording
Based on our current and forecasted level of operations and seasonality of our business, we believe that cash provided by operations and other sources of liquidity, including cash, cash equivalents, and availability under our revolving credit facilities, will provide adequate liquidity for ongoing operations, planned capital expenditures and other investments, and debt service requirements for at least the next twelve months.
Previous wording
Based on hypothetical variable rate debt that would have resulted from drawing each revolving credit facility up to the full commitment amount, a 100 basis point decrease in interest rates would have reduced our interest expense by $2.4 million in the three months ended March 30, 2024. A 100 basis point increase in interest rates would have increased our interest expense by $2.4 million in the same period. In certain instances, the impact of a hypothetical decrease would have been partially mitigated by interest rate floors that apply to certain of our debt agreements.
Current wording
Based on hypothetical variable rate debt that would have resulted from drawing each revolving credit facility up to the full commitment amount, a 100 basis point decrease in interest rates would have reduced our interest expense by $9.8 million in the three months ended June 29, 2024. A 100 basis point increase in interest rates would have increased our interest expense by $9.8 million in the same period. In certain instances, the impact of a hypothetical decrease would have been partially mitigated by interest rate floors that apply to certain of our debt agreements.
Previous wording
(1) Cash flow information for the three months ended April 1, 2023 is inclusive of cash flows from JW Australia as discontinued operations through the divestiture date of July 2, 2023.
Current wording
(1) Cash flow information for the six months ended July 1, 2023 is inclusive of cash flows from JW Australia as discontinued operations through the divestiture date of July 2, 2023.
Previous wording
Net cash used in operating activities increased $10.3 million to $11.0 million in the three months ended March 30, 2024, compared to $0.7 million in the three months ended April 1, 2023. The increase in cash used by operating activities was primarily due to decreased earnings of $42.9 million and an unfavorable impact from accrued expenses of $28.6 million, due primarily to higher payments of performance-based variable compensation, partially offset by a $62.7 million improvement in net cash provided by our working capital accounts. The impact of Accounts receivable, net of $82.6 million was favorable in the three months ended March 30, 2024, compared to the three months ended April 1, 2023, which was primarily due to decreased sales and slightly improved collections. Cash flow used by Inventory was $45.6 million unfavorable compared to the three months ended April 1, 2023, while cash flow provided by Accounts payable was $25.6 million favorable compared to the three months ended April 1, 2023. The changes in Inventory and Accounts payable were primarily due to increased inventory purchases made during the three months ended March 30, 2024, in anticipation of expected growth in the remaining months of 2024.
Current wording
Net cash provided by operating activities decreased $113.0 million to $40.4 million in the six months ended June 29, 2024, compared to $153.4 million in the six months ended July 1, 2023. The decreased operating cash flow was primarily due to decreased earnings of $99.6 million and an unfavorable impact from accrued expenses of $37.9 million, due primarily to higher payments of performance-based variable compensation, partially offset by a $22.4 million improvement in net cash provided by our working capital accounts. The impact of Accounts receivable, net of $73.7 million was favorable in the six months ended June 29, 2024, compared to the six months ended July 1, 2023, which was primarily due to decreased sales and slightly improved collections. The $12.9 million favorable impact from accounts payable is primarily due to improved payment terms with suppliers. The $64.2 million unfavorable impact of inventory is primarily due to the prior year benefit from intentional, one-time reductions not being repeated in the current year, as the current year began with a more normalized inventory level as compared to the prior year.
Previous wording
Net cash used in investing activities increased $11.5 million to $30.5 million in the three months ended March 30, 2024 compared to $19.0 million in the three months ended April 1, 2023, primarily driven by a $11.1 million increase in capital expenditures.
Current wording
Net cash used in investing activities increased $27.4 million to $69.6 million in the six months ended June 29, 2024 compared to $42.2 million in the six months ended July 1, 2023, primarily driven by a $27.2 million increase in capital expenditures.
Previous wording
Net cash used in financing activities increased $6.7 million to $6.8 million in the three months ended March 30, 2024 compared to $0.1 million in the three months ended April 1, 2023, primarily due to net debt payments and payments of debt extinguishment costs of $7.7 million in the three months ended March 30, 2024 compared to net debt borrowings of $0.3 million in the three months ended April 1, 2023.
Current wording
Net cash used in financing activities decreased $31.0 million to $39.8 million in the six months ended June 29, 2024 compared to $70.8 million in the six months ended July 1, 2023, primarily due to a decrease in net debt payments and payments of debt extinguishment costs of $15.8 million in the six months ended June 29, 2024 compared to net debt payments of $70.3 million in the six months ended July 1, 2023. This decrease is partially offset by the repurchases of common stock of $24.3 million in the six months ended June 29, 2024.
Previous wording
The amount of our consolidated net assets that were available to be distributed under our Credit Facilities as of March 30, 2024 was $895.6 million.
Current wording
The amount of our consolidated net assets that were available to be distributed under our Credit Facilities as of June 29, 2024 was $910.5 million.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Other Income, Net– Other income, net increased $4.6 million, or 215.2%, to $2.5 million in the three months ended June 29, 2024 from $2.2 million of other expense, net in the three months ended July 1, 2023. Other income, net in the three months ended June 29, 2024 primarily consisted of recovery of the JW Australia transition services costs incurred of $2.4 million. Other expense, net in the three months ended July 1, 2023 primarily consisted of pension expense of $1.7 million.
Current report — wording carried from elsewhere
Restructuring and Asset-Related Charges– Restructuring and asset-related charges increased $18.4 million, or 114.6% to $34.5 million in thesix months ended June 29, 2024 from $16.1 million in the six months ended July 1, 2023. The increase in restructuring charges was primarily due to an increase in charges incurred to close certain manufacturing facilities in our North America segment and to transform the operating structure of our Europe segment. For more information, refer to Note 16 - Restructuring and Asset-Related Chargesof our consolidated financial statements included in this Form 10-Q.
Current report — wording carried from elsewhere
Interest Expense, Net– Interest expense, net, decreased $10.1 million, or 23.8%, to $32.3 million in the six months ended June 29, 2024 from $42.3 million in the six months ended July 1, 2023. The decrease was primarily due to lower long-term debt balances resulting from the redemption of our Senior Secured Notes and partial redemption of our Senior Notes in the third quarter of 2023, and an increase in interest income due to higher cash equivalents balances, partially offset by a decrease in interest income from interest rate derivatives.
Current report — wording carried from elsewhere
Income Taxes– Income tax expense was $6.1 million in the six months ended June 29, 2024 compared to $14.2 million in the six months ended July 1, 2023. The effective tax rate in the six months ended June 29, 2024 was (15.3)%. The effective tax rate for the six months ended June 29, 2024 was primarily driven by $9.7 million of tax expense on uncertain tax positions from ongoing audits and $2.3 million of valuation expense recorded against our tax attributes, as well as losses for jurisdictions for which there is a full valuation allowance in the quarter. The effective tax rate in the six months ended July 1, 2023 was 31.5%. The effective tax rate for the six months ended July 1, 2023 was primarily driven by $1.5 million of tax expense attributable to valuation allowance expense recorded against our tax attributes and $1.2 million of tax expense attributable to share-based compensation.
Current report — wording carried from elsewhere
For more information, refer to Note 11 -Income Taxesof our consolidated financial statements included in this Form 10-Q.
Current report — wording carried from elsewhere
(2)For a discussion of the Special items listed above, refer to Note 12 -Segment Information of our financial statements included in this Form 10-Q.
Current report — wording carried from elsewhere
(2)For a discussion of the Special items listed above, refer to Note 12 -Segment Information of our financial statements included in this Form 10-Q.
Current report — wording carried from elsewhere
(1)Adjusted EBITDA from continuing operations is a financial measure that is not calculated in accordance with GAAP. For a discussion of our presentation of Adjusted EBITDA from continuing operations, see Note 12 -Segment Informationof our financial statements included in this Form 10-Q.
Current report — wording carried from elsewhere
As of June 29, 2024, our cash balances, including $0.8 million of restricted cash, consisted of $74.9 million in the U.S. and $138.7 million in non-U.S. subsidiaries.