Vontier Corp
For the period ended Sep 27, 2024. Filed Oct 31, 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.
Sep 27, 2024 · Filed Oct 31, 2024
VNT$42.23+5.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-28; filed 2024-08-01.
0001786842-24-000065
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-27; filed 2024-10-31.
0001786842-24-000074
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 149 previous paragraphs and 150 current paragraphs.
107 unchanged; 39 reworded; 4 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 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 (4)
Current report
Cost of sales, excluding amortization of acquisition-related intangible assets, decreased $10.6 million, or 2.6%, for the three months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to the impact of recently divested and exited businesses and product lines partially offset by an increase in cost of sales from core sales growth that have been partially mitigated through cost optimization.
Current report
Amortization of acquisition-related intangible assets decreased $1.1 million, or 1.8%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023 and as a percentage of sales, increased 10 basis points during the same period.
Current report
Corporate & other unallocated costs increased $0.7 million, or 1.4%, during the three months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to inflationary pressures that have been partially mitigated through cost optimization. Corporate & other unallocated costs as a percentage of total sales increased 20 basis points during the three months ended September 27, 2024, as compared to the comparable period in 2023.
Current report
•Repurchased 3.0 million shares for $100.0 million through an accelerated share repurchase (“ASR”) agreement;
Removed paragraphs (3)
Previous report
Cost of sales, excluding amortization of acquisition-related intangible assets, decreased $55.4 million, or 13.3%, for the three months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to the decrease in sales in the Environmental & Fueling Solutions segment, as discussed above, and the impact of recently divested and exited businesses and product lines and cost optimization.
Previous report
Amortization of acquisition-related intangible assets decreased $0.3 million, or 1.5%, during the three months ended June 28, 2024, as compared to the comparable period in 2023 and as a percentage of sales, increased 20 basis points during the same period.
Previous report
Corporate & other unallocated costs decreased $13.4 million, or 12.3%, during the six months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to a decrease in costs associated with restructuring activities and transaction and deal-related costs. Corporate & other unallocated costs as a percentage of total sales decreased 50 basis points during the six months ended June 28, 2024, as compared to the comparable period in 2023.
Reworded paragraphs (39)
Previous wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is designed to provide a reader of our financial statements with a narrative from the perspective of management and is intended to help the reader understand the results of operations and financial condition of the Company. Our MD&A should be read in conjunction with our MD&A and Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”) and our Consolidated Condensed Financial Statements as of and for the three and six months ended June 28, 2024 included in this Form 10-Q.
Current wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is designed to provide a reader of our financial statements with a narrative from the perspective of management and is intended to help the reader understand the results of operations and financial condition of the Company. Our MD&A should be read in conjunction with our MD&A and Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”) and our Consolidated Condensed Financial Statements as of and for the three and nine months ended September 27, 2024 included in this Form 10-Q.
Previous wording
•Global economic, political, legal, compliance, supply chain, epidemic, pandemic and business factors could negatively affect our financial statements.
Current wording
•Global economic, political, legal, compliance, supply chain, public health and business factors could negatively affect our financial statements and outlook.
Previous wording
We expect core sales growth for the year ended December 31, 2024 to be lower than our longer-term growth expectations due to softening in certain of our end markets as further discussed below in “Results of Operations”. Our outlook is subject to various assumptions and risks, including but not limited to the resilience and durability of the economies of the United States and other critical regions, ongoing challenges with global logistics and supply chain including the availability of electronic components, the impact of international conflicts, including Russia-Ukraine and conflicts in the Middle East, market conditions in key end product segments, and the impact of energy disruption in Europe. Additional uncertainties are identified in “Information Relating to Forward-Looking Statements” above.
Current wording
We expect core sales growth for the year ended December 31, 2024 to be lower than our longer-term growth expectations due to softening in certain of our end markets as further discussed below in “Results of Operations”. Our outlook is subject to various assumptions and risks, including but not limited to the resilience and durability of the economies of the United States and other critical regions, ongoing challenges with global logistics and supply chain including the availability of electronic components, the impact of international conflicts, including Russia-Ukraine and conflicts in the Middle East, market conditions in key end product segments, and the impact of energy disruption in Europe. Additional uncertainties are identified in “Information Relating to Forward-Looking Statements” above and in “Risk Factors” in our 2023 Annual Report on Form 10-K.
Previous wording
Total sales within our Mobility Technologies segment decreased 0.5% during the three months ended June 28, 2024, as compared to the comparable period in 2023, driven by a 1.5% decrease due to the impact of currency translation, partially offset by a 1.0% increase in core sales. The increase in core sales was primarily due to solid demand for our convenience store payment and enterprise productivity solutions, partially offset by lower demand for our car wash solutions and a decrease in sales for our alternative energy solutions due to shipment timing.
Current wording
Total sales within our Mobility Technologies segment increased 3.9% during the three months ended September 27, 2024, as compared to the comparable period in 2023, driven by a 4.2% increase in core sales, partially offset by a 0.3% decrease due to the impact of currency translation. The increase in core sales was primarily due to solid demand for our convenience store payment and enterprise productivity solutions, partially offset by lower demand for our car wash solutions.
Previous wording
Total sales within our Mobility Technologies segment decreased 0.9% during the six months ended June 28, 2024, as compared to the comparable period in 2023, driven by a 1.6% decrease due to the impact of currency translation, partially offset by a 0.7% increase in core sales. The increase in core sales was primarily due to solid demand for our convenience store payment and enterprise productivity and alternative energy solutions, partially offset by lower demand for our car wash solutions.
Current wording
Total sales within our Mobility Technologies segment increased 0.7% during the nine months ended September 27, 2024, as compared to the comparable period in 2023, driven by a 1.9% increase in core sales, partially offset by a 1.2% decrease due to the impact of currency translation. The increase in core sales was primarily due to solid demand for our convenience store payment and enterprise productivity solutions, partially offset by lower demand for our car wash solutions.
Previous wording
Total sales and core sales within our Repair Solutions segment decreased 1.9% during the six months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to a decrease in the hardline product category, partially offset by an increase in the diagnostics product category.
Current wording
Total sales and core sales within our Repair Solutions segment decreased 5.1% during the three months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to a decrease in the specialty tools, tool storage and power tools product categories driven by macroeconomic impacts on service technicians’ discretionary spending.
Previous wording
Total sales and core sales within our Repair Solutions segment decreased 4.8% during the three months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to a decrease in the tool storage and hardline product categories driven by macroeconomic impacts on service technicians’ discretionary spending, partially offset by an increase in the diagnostics and power tools product categories.
Current wording
Total sales and core sales within our Repair Solutions segment decreased 2.9% during the nine months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to a decrease in the power tools, hardline and tool storage product categories driven by macroeconomic impacts on service technicians’ discretionary spending, partially offset by an increase in the diagnostics product category.
Previous wording
Total sales within our Environmental & Fueling Solutions segment decreased 8.3% during the three months ended June 28, 2024, as compared to the comparable period in 2023, driven primarily by a 5.0% decrease in core sales, a 2.5% decrease due to the impact of recently exited businesses and product lines and a 0.8% decrease due to the impact of currency translation. The decrease in core sales was driven by the impact of order timing and shipment delays for fuel dispenser systems, partially offset by strong demand for aftermarket products and a slight increase in environmental solutions.
Current wording
Total sales within our Environmental & Fueling Solutions segment increased 5.5% during the three months ended September 27, 2024, as compared to the comparable period in 2023, driven primarily by a 8.5% increase in core sales, partially offset by a 2.3% decrease due to the impact of recently exited businesses and product lines and a 0.7% decrease due to the impact of currency translation. The increase in core sales was primarily due to strong demand for dispenser systems, aftermarket products and environmental solutions.
Previous wording
Total sales within our Environmental & Fueling Solutions segment decreased 1.7% during the six months ended June 28, 2024, as compared to the comparable period in 2023, driven primarily by a 3.0% decrease due to the impact of recently exited businesses and product lines and a 0.7% decrease due to the impact of currency translation, partially offset by a 2.0% increase in core sales. The increase in core sales was driven by higher demand for aftermarket products and environmental solutions.
Current wording
Total sales within our Environmental & Fueling Solutions segment increased 0.8% during the nine months ended September 27, 2024, as compared to the comparable period in 2023, driven primarily by a 4.2% increase in core sales, partially offset by a 2.7% decrease due to the impact of recently exited businesses and product lines and a 0.7% decrease due to the impact of currency translation. The increase in core sales was driven by higher demand for aftermarket products and environmental solutions.
Previous wording
Cost of sales, excluding amortization of acquisition-related intangible assets, decreased $95.0 million, or 11.3%, for the six months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to the impact of recently divested and exited businesses and product lines and cost optimization.
Current wording
Cost of sales, excluding amortization of acquisition-related intangible assets, decreased $105.6 million, or 8.5%, for the nine months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to the impact of recently divested and exited businesses and product lines and cost optimization.
Previous wording
SG&A expenses decreased $10.6 million, or 6.4%, during the three months ended June 28, 2024, as compared to the comparable period in 2023, and as a percentage of sales, increased 60 basis points during the same period, primarily due to the impact of recently divested and exited businesses and product lines and restructuring savings, partially offset by the impact of reserve-related adjustments to the Repair Solutions receivables portfolio.
Current wording
SG&A expenses decreased $0.2 million, or 0.1%, during the three months ended September 27, 2024, as compared to the comparable period in 2023, and as a percentage of sales, increased 40 basis points during the same period, primarily due to the impact of recently divested and exited businesses and product lines, partially offset by the impact of reserve-related adjustments to the Repair Solutions receivables portfolio and inflationary pressures that have been partially mitigated through cost optimization.
Previous wording
SG&A expenses decreased $2.7 million, or 0.8%, during the six months ended June 28, 2024, as compared to the comparable period in 2023, and as a percentage of sales, increased 110 basis points during the same period, primarily due to the impact of recently divested and exited businesses and product lines and restructuring savings, partially offset by the impact of reserve-related adjustments to the Repair Solutions receivables portfolio.
Current wording
SG&A expenses decreased $2.9 million, or 0.6%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023, and as a percentage of sales, increased 80 basis points during the same period, primarily due to the impact of recently divested and exited businesses and product lines and restructuring savings, partially offset by the impact of reserve-related adjustments to the Repair Solutions receivables portfolio and inflationary pressures that have been partially mitigated through cost optimization.
Previous wording
R&D expenses increased $4.8 million, or 11.9%, during the three months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to continued growth investments in our Mobility Technologies segment. R&D expenses as a percentage of sales increased 120 basis points during the three months ended June 28, 2024, as compared to the comparable period in 2023.
Current wording
R&D expenses increased $6.6 million, or 16.9%, during the three months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to continued growth investments in our Mobility Technologies segment. R&D expenses as a percentage of sales increased 100 basis points during the three months ended September 27, 2024, as compared to the comparable period in 2023.
Previous wording
R&D expenses increased $8.3 million, or 10.2%, during the six months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to continued growth investments in our Mobility Technologies segment. R&D expenses as a percentage of sales increased 90 basis points during the six months ended June 28, 2024, as compared to the comparable period in 2023.
Current wording
R&D expenses increased $14.9 million, or 12.4%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to continued growth investments in our Mobility Technologies segment. R&D expenses as a percentage of sales increased 90 basis points during the nine months ended September 27, 2024, as compared to the comparable period in 2023.
Previous wording
Amortization of acquisition-related intangible assets decreased $1.0 million, or 2.4%, during the six months ended June 28, 2024, as compared to the comparable period in 2023 and as a percentage of sales, increased 10 basis points during the same period.
Current wording
Amortization of acquisition-related intangible assets decreased $0.1 million, or 0.5%, during the three months ended September 27, 2024, as compared to the comparable period in 2023 and as a percentage of sales, increased 10 basis points during the same period.
Previous wording
Operating profit decreased $6.5 million, or 5.4%, during the three months ended June 28, 2024, as compared to the comparable period in 2023, and operating profit margins increased 60 basis points during the same period.
Current wording
Operating profit decreased $11.1 million, or 7.8%, during the three months ended September 27, 2024, as compared to the comparable period in 2023, and operating profit margins decreased 110 basis points during the same period.
Previous wording
Operating profit increased $1.8 million, or 0.7%, during the six months ended June 28, 2024, as compared to the comparable period in 2023, and operating profit margins increased 110 basis points during the same period.
Current wording
Operating profit decreased $9.3 million, or 2.3%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023, and operating profit margins increased 40 basis points during the same period.
Previous wording
Segment operating profit for our Mobility Technologies segment decreased $3.5 million, or 7.8%, during the three months ended June 28, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 140 basis points during the same period. The decrease in segment operating profit margin was primarily due to an increase in R&D and unfavorable mix.
Current wording
Segment operating profit for our Mobility Technologies segment decreased $4.8 million, or 9.3%, during the three months ended September 27, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 270 basis points during the same period. The decrease in segment operating profit margin was primarily due to an increase in R&D and unfavorable mix.
Previous wording
Segment operating profit for our Mobility Technologies segment decreased $3.8 million, or 4.1%, during the six months ended June 28, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 60 basis points during the same period. The decrease in segment operating profit margin was primarily due to an increase in R&D and other continued growth investments in the segment.
Current wording
Segment operating profit for our Mobility Technologies segment decreased $8.6 million, or 6.0%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 130 basis points during the same period. The decrease in segment operating profit margin was primarily due to an increase in R&D and unfavorable mix.
Previous wording
Segment operating profit for our Repair Solutions segment decreased $9.5 million, or 22.8%, during the three months ended June 28, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 500 basis points during the same period. The decrease in segment operating profit margin was primarily due to the impact of a decrease in volume and reserve-related adjustments to the receivables portfolio.
Current wording
Segment operating profit for our Repair Solutions segment decreased $10.7 million, or 24.7%, during the three months ended September 27, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 560 basis points during the same period. The decrease in segment operating profit margin was primarily due to the impact of unfavorable mix, reserve-related adjustments to the receivables portfolio and a decrease in volume.
Previous wording
Segment operating profit for our Repair Solutions segment decreased $12.1 million, or 13.6%, during the six months ended June 28, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 320 basis points during the same period. The decrease in segment operating profit margin was primarily due to the impact of a decrease in volume and reserve-related adjustments to the receivables portfolio.
Current wording
Segment operating profit for our Repair Solutions segment decreased $22.8 million, or 17.2%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023, and segment operating profit margin decreased 390 basis points during the same period. The decrease in segment operating profit margin was primarily due to the impact of reserve-related adjustments to the receivables portfolio, unfavorable mix and a decrease in volume.
Previous wording
Segment operating profit for our Environmental & Fueling Solutions segment decreased $5.9 million, or 6.2%, during the three months ended June 28, 2024, as compared to the comparable period in 2023, and segment operating profit margin increased 60 basis points during the same period. The increase in segment operating profit margin was primarily due to price-cost benefits and cost optimization.
Current wording
Segment operating profit for our Environmental & Fueling Solutions segment increased $7.3 million, or 7.6%, during the three months ended September 27, 2024, as compared to the comparable period in 2023, and segment operating profit margin increased 50 basis points during the same period. The increase in segment operating profit margin was primarily due to price-cost benefits and cost optimization.
Previous wording
Segment operating profit for our Environmental & Fueling Solutions segment increased $10.7 million, or 6.1%, during the six months ended June 28, 2024, as compared to the comparable period in 2023, and segment operating profit margin increased 220 basis points during the same period. The increase in segment operating profit margin was primarily due to price-cost benefits and cost optimization.
Current wording
Segment operating profit for our Environmental & Fueling Solutions segment increased $18.0 million, or 6.6%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023, and segment operating profit margin increased 160 basis points during the same period. The increase in segment operating profit margin was primarily due to price-cost benefits and cost optimization.
Previous wording
Corporate & other unallocated costs decreased $14.6 million, or 23.1%, during the three months ended June 28, 2024, as compared to the comparable period in 2023, primarily due to a decrease in costs associated with restructuring activities and transaction and deal-related costs. Corporate & other unallocated costs as a percentage of total sales decreased 130 basis points during the three months ended June 28, 2024, as compared to the comparable period in 2023.
Current wording
Corporate & other unallocated costs decreased $12.7 million, or 8.0%, during the nine months ended September 27, 2024, as compared to the comparable period in 2023, primarily due to a decrease in costs associated with restructuring activities and transaction and deal-related costs, partially offset by inflationary pressures that have been partially mitigated through cost optimization. Corporate & other unallocated costs as a percentage of total sales decreased 30 basis points during the nine months ended September 27, 2024, as compared to the comparable period in 2023.
Previous wording
Interest expense, net was $37.3 million during the six months ended June 28, 2024, as compared to $47.9 million for the comparable period in 2023, a decrease of $10.6 million, driven primarily by a decrease in our outstanding debt obligations and an increase in interest income between periods.
Current wording
Interest expense, net was $18.9 million during the three months ended September 27, 2024, as compared to $22.8 million for the comparable period in 2023, a decrease of $3.9 million, driven primarily by a decrease in our outstanding debt obligations.
Previous wording
Interest expense, net was $18.4 million during the three months ended June 28, 2024, as compared to $23.9 million for the comparable period in 2023, a decrease of $5.5 million, driven primarily by a decrease in our outstanding debt obligations and an increase in interest income between periods.
Current wording
Interest expense, net was $56.2 million during the nine months ended September 27, 2024, as compared to $70.7 million for the comparable period in 2023, a decrease of $14.5 million, driven primarily by a decrease in our outstanding debt obligations and an increase in interest income between periods.
Previous wording
Our effective tax rate for the three and six months ended June 28, 2024 was 23.8% and 18.8%, respectively, as compared to 25.3% and 24.7% for the three and six months ended June 30, 2023, respectively. The decrease in the effective tax rate for the three months ended June 28, 2024 as compared to the comparable period in the prior year was primarily due to the unfavorable tax impacts of the divestiture of the Global Traffic Technologies business during the three months ended June 30, 2023. The decrease in the effective tax rate for the six months ended June 28, 2024 as compared to the comparable period in the prior year was primarily due to the favorable tax impacts of the divestiture of the Coats business during the six months ended June 28, 2024 and the unfavorable tax impacts of the divestiture of the Global Traffic Technologies business during the six months ended June 30, 2023.
Current wording
Our effective tax rate for the three and nine months ended September 27, 2024 was 18.3% and 18.6%, respectively, as compared to 24.4% and 24.6% for the three and nine months ended September 29, 2023, respectively. The decrease in the effective tax rate for the three months ended September 27, 2024 as compared to the comparable period in the prior year was primarily due to a favorable change in uncertain tax position reserves during the three months ended September 27, 2024. The decrease in the effective tax rate for the nine months ended September 27, 2024 as compared to the comparable period in the prior year was primarily due to the favorable tax impacts of the divestiture of the Coats business and a favorable change in uncertain tax position reserves during the nine months ended September 27, 2024 and the unfavorable tax impacts of the divestiture of the Global Traffic Technologies business during the nine months ended September 29, 2023.
Previous wording
Comprehensive income decreased by $23.6 million during the three months ended June 28, 2024, as compared to the comparable period in 2023. Comprehensive income for the three months ended June 30, 2023 includes a gain on the sale of the Company’s Global Traffic Technologies business of $34.1 million.
Current wording
Comprehensive income increased by $52.4 million during the three months ended September 27, 2024, as compared to the comparable period in 2023. Comprehensive income for the three months ended September 27, 2024 includes favorable foreign currency translation adjustments of $29.1 million while comprehensive income for the three months ended September 29, 2023 includes unfavorable foreign currency translation adjustments of $22.1 million.
Previous wording
Comprehensive income increased by $11.9 million during the six months ended June 28, 2024, as compared to the comparable period in 2023. Comprehensive income for the six months ended June 28, 2024 includes a gain on the sale of the Company’s Coats business of $37.2 million while comprehensive income for the six months ended June 30, 2023 includes a gain on the sale of the Company’s Global Traffic Technologies business of $34.1 million.
Current wording
Comprehensive income increased by $64.3 million during the nine months ended September 27, 2024, as compared to the comparable period in 2023. Comprehensive income for the nine months ended September 27, 2024 includes a gain on the sale of the Company’s Coats business of $37.2 million and favorable foreign currency translation adjustments of $2.1 million while comprehensive income for the nine months ended September 29, 2023 includes a gain on the sale of the Company’s Global Traffic Technologies business of $34.4 million and unfavorable foreign currency translation adjustments of $34.2 million.
Previous wording
We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. As of June 28, 2024, we held $331.3 million of cash and cash equivalents and had $750.0 million of borrowing capacity under our revolving credit facility. We generate substantial cash from operating activities and believe that our operating cash flow and other sources of liquidity will be sufficient to allow us to continue to support working capital needs, capital expenditures, pay interest and service debt, pay taxes and any related interest or penalties, fund our restructuring activities and pension plans as required, invest in existing businesses, consummate strategic acquisitions, manage our capital structure on a short and long-term basis and support other business needs or objectives. We also have purchase obligations which consist of agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. As of June 28, 2024, we believe that we have sufficient liquidity to satisfy our cash needs.
Current wording
We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. As of September 27, 2024, we held $330.9 million of cash and cash equivalents and had $750.0 million of borrowing capacity under our revolving credit facility. We generate substantial cash from operating activities and believe that our operating cash flow and other sources of liquidity will be sufficient to allow us to continue to support working capital needs, capital expenditures, pay interest and service debt, pay taxes and any related interest or penalties, fund our restructuring activities and pension plans as required, invest in existing businesses, consummate strategic acquisitions, manage our capital structure on a short and long-term basis and support other business needs or objectives. We also have purchase obligations which consist of agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. As of September 27, 2024, we believe that we have sufficient liquidity to satisfy our cash needs.
Previous wording
During the six months ended June 28, 2024, we completed the following financing and capital transactions:
Current wording
During the nine months ended September 27, 2024, we completed the following financing and capital transactions:
Previous wording
•Repurchased 1.5 million shares for $59.7 million in the open market.
Current wording
•Repurchased 1.6 million shares for $64.6 million in the open market.
Previous wording
Cash flows from operating activities were $137.6 million during the six months ended June 28, 2024, a decrease of $20.9 million, as compared to the comparable period in 2023. The year-over-year change in operating cash flows was primarily attributable to the following factors:
Current wording
Cash flows from operating activities were $259.4 million during the nine months ended September 27, 2024, a decrease of $30.7 million, as compared to the comparable period in 2023. The year-over-year change in operating cash flows was primarily attributable to the following factors:
Previous wording
•The aggregate of accounts receivable and long-term financing receivables used $15.5 million of operating cash flows during the six months ended June 28, 2024 compared to generating $11.5 million in the comparable period of 2023. The amount of cash flow generated from or used by accounts receivable depends upon how effectively we manage the cash conversion cycle and can be significantly impacted by the timing of collections in a period. Additionally, when we originate certain financing receivables, we assume the financing receivable by decreasing the franchisee’s trade accounts receivable. As a result, originations of certain financing receivables are non-cash transactions.
Current wording
•The aggregate of accounts receivable and long-term financing receivables used $46.2 million of operating cash flows during the nine months ended September 27, 2024 compared to using $33.6 million in the comparable period of 2023. The amount of cash flow generated from or used by accounts receivable depends upon how effectively we manage the cash conversion cycle and can be significantly impacted by the timing of collections in a period. Additionally, when we originate certain financing receivables, we assume the financing receivable by decreasing the franchisee’s trade accounts receivable. As a result, originations of certain financing receivables are non-cash transactions.
Previous wording
•The aggregate of other operating assets and liabilities used $91.4 million during the six months ended June 28, 2024 compared to using $69.0 million in the comparable period of 2023. This change is due primarily to working capital needs and the timing of accruals and payments and tax-related amounts.
Current wording
•The aggregate of other operating assets and liabilities used $69.3 million during the nine months ended September 27, 2024 compared to using $16.8 million in the comparable period of 2023. This change is due primarily to working capital needs and the timing of accruals and payments and tax-related amounts.
Previous wording
Net cash provided by investing activities was $23.9 million during the six months ended June 28, 2024, driven primarily by proceeds from the sale of our Coats business, partially offset by payments for additions to property, plant and equipment. Net cash provided by investing activities was $103.5 million during the six months ended June 30, 2023, driven primarily by proceeds from the sale of our Global Traffic Technologies business, equity securities and property, partially offset by payments for additions to property, plant and equipment.
Current wording
Net cash provided by investing activities was $5.0 million during the nine months ended September 27, 2024, driven primarily by proceeds from the sale of our Coats business, partially offset by payments for additions to property, plant and equipment. Net cash provided by investing activities was $86.0 million during the nine months ended September 29, 2023, driven primarily by proceeds from the sale of our Global Traffic Technologies business and equity securities, partially offset by payments for additions to property, plant and equipment.
Previous wording
We made capital expenditures of $44.0 million and $26.1 million during the six months ended June 28, 2024 and June 30, 2023, respectively.
Current wording
We made capital expenditures of $62.6 million and $43.5 million during the nine months ended September 27, 2024 and September 29, 2023, respectively.
Previous wording
Net cash used in financing activities was $167.5 million during the six months ended June 28, 2024, driven primarily by the voluntary repayment of $100.0 million of the Three-Year Term Loans due 2024 and repurchases of the Company’s common stock of $59.7 million. Net cash used in financing activities was $222.6 million during the six months ended June 30, 2023, driven primarily by the voluntary repayment of $165.0 million of the Three-Year Term Loans due 2024 and repurchases of the Company’s common stock of $50.0 million.
Current wording
Net cash used in financing activities was $276.8 million during the nine months ended September 27, 2024, driven primarily by the voluntary repayment of $100.0 million of the Three-Year Term Loans due 2024 and repurchases of the Company’s common stock of $164.6 million. Net cash used in financing activities was $313.3 million during the nine months ended September 29, 2023, driven primarily by the voluntary repayment of $240.0 million of the Three-Year Term Loans due 2024 and repurchases of the Company’s common stock of $61.6 million.
Previous wording
We paid regular quarterly cash dividends of $0.025 per share during the six months ended June 28, 2024. The declaration of future cash dividends is at the discretion of our Board of Directors and will depend upon, among other things, our future earnings, cash flows, capital requirements, financial condition and general business conditions.
Current wording
We paid regular quarterly cash dividends of $0.025 per share during the nine months ended September 27, 2024. The declaration of future cash dividends is at the discretion of our Board of Directors and will depend upon, among other things, our future earnings, cash flows, capital requirements, financial condition and general business conditions.