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What changed in CROWN HOLDINGS, INC.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of CROWN HOLDINGS, INC.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+285 added−278 removedSource: 10-K (2024-02-27) vs 10-K (2023-02-27)

Top changes in CROWN HOLDINGS, INC.'s 2023 10-K

285 paragraphs added · 278 removed · 225 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeIndustrial products include steel strap, plastic strap, industrial film and other related products that are used in a wide range of industries. Protective solutions include transit protection products, such as airbags, edge protectors, and honeycomb products that help prevent movement of, and/or damage to, a wide range of industrial and consumer goods during transport.
Biggest changeProtective solutions include standard and purpose designed products, such as airbags, edge protectors, and honeycomb products, among others that help prevent movement of, and/or damage to, a wide range of industrial and consumer goods during transport. Steel and plastic consumables include steel strap, plastic strap, industrial film and other related products that are used across a wide range of industries.
Many customers provide the Company with quarterly or annual estimates of product requirements along with related quantities pursuant to which periodic commitments are given. Such estimates assist the Company in managing production and controlling use of working capital. The Company schedules its production to meet customer requirements.
Many customers provide the Company with quarterly or annual estimates of product requirements along with related quantities pursuant to which periodic commitments are given. Such estimates assist the Company in managing production and controlling the use of working capital. The Company schedules its production to meet customer requirements.
The Company provides a variety of educational opportunities, including a mix of mandatory and voluntary training programs that occur in classrooms, online or on the job. The Company also recognizes the importance of multifunctional teams and as such, management training includes international exposure and cross-divisional activity to develop common approaches and values.
The Company provides a variety of educational opportunities, including a mix of mandatory and voluntary training programs that occur in classrooms, online and on the job. The Company also recognizes the importance of multifunctional teams and as such, management training includes international exposure and cross-divisional activity to develop common approaches and values.
The Company’s 2 Crown Holdings, Inc. competitors include, but are not limited to, Ardagh Metal Packaging, Ball Corporation, Mauser Packaging Solutions, Can-Pack S.A., Metal Container Corporation, Silgan Holdings Inc., Sonoco, and Trivium Packaging. Transit Packaging also faces substantial competition from many regional and local competitors of various sizes in the manufacture, distribution and sale of its products.
The Company’s competitors include, but are not limited to, Ardagh Metal Packaging, Ball Corporation, Can-Pack S.A., Mauser Packaging Solutions, Metal Container Corporation, Silgan Holdings Inc., Sonoco, and Trivium Packaging. Transit Packaging also faces substantial competition from many regional and local competitors of various sizes in the manufacture, distribution and sale of its products.
The Company does not expect that renegotiation of any collective bargaining agreements expiring in 2023 will have a material adverse effect on its consolidated results of operations, financial position or cash flow. The Company believes that its employees are key to achieving the Company’s business goals and growth strategy.
The Company does not expect that renegotiation of any collective bargaining agreements expiring in 2024 will have a material adverse effect on its consolidated results of operations, financial position or cash flow. The Company believes that its employees are key to achieving the Company’s business goals and growth strategy.
The Company’s customers include manufacturers of food, personal care, household and industrial products. Additional financial information concerning the Company’s reportable segments is set forth within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report and under Note Y to the consolidated financial statements.
The Company’s customers include manufacturers of food, including pet food, personal care, household and industrial products. Additional financial information concerning the Company’s reportable segments is set forth within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report and under Note Y to the consolidated financial statements.
OTHER The Company's other segments ("Other") include the Company's food can, aerosol can and closures business in North America, and beverage tooling and equipment operations in the U.S. and United Kingdom ("U.K."). The Company manufactures a variety of food and aerosol cans and ends and aerosol cans in assorted shapes and sizes.
OTHER The Company's other segments ("Other") include the Company's food can, aerosol can and closures businesses in North America, and beverage tooling and equipment operations in the U.S. and the United Kingdom ("U.K."). The Company manufactures a variety of food and aerosol cans and ends and closures in assorted shapes and sizes.
SALES AND DISTRIBUTION Global marketers qualify suppliers on the basis of their ability to provide global service, innovative designs and technologies in a cost-effective manner. With its global reach, the Company primarily markets and sells products to customers through its own sales and marketing staff.
SALES AND DISTRIBUTION Global marketers qualify suppliers on the basis of their ability to provide service, innovation and technologies in a cost-effective manner. With its global reach, the Company primarily markets and sells products to customers through its own sales and marketing staff.
Certain of these may become difficult or impossible to obtain on acceptable terms due to external factors, which could increase the Company’s costs or interrupt its business. In addition to mitigating risks around pricing, the Company maintains its commitment to upholding and evolving standards for ethics and compliance as it sources materials.
Certain of these may become difficult or 3 Crown Holdings, Inc. impossible to obtain on acceptable terms due to external factors, which could increase the Company’s costs or interrupt its business. In addition to mitigating risks around pricing, the Company maintains its commitment to upholding and evolving standards for ethics and compliance as it sources materials.
From time to time, some of the raw materials have been in short supply but, to date, these shortages have not had a significant impact on the Company’s operations. In 2022, consumption of aluminum and steel represented 44% and 9%, respectively, of consolidated cost of products sold, excluding depreciation and amortization.
From time to time, some of the raw materials have been in short supply but, to date, these shortages have not had a significant impact on the Company’s operations. In 2023, consumption of aluminum and steel represented 44% and 8%, respectively, of consolidated cost of products sold, excluding depreciation and amortization.
It also aims to implement a positive and inclusive work environment that prioritizes employee safety, fosters an inclusive atmosphere and creates a fulfilling career. The Company supports the well-being of its employees and their families with a variety of physical, mental and social wellness programs.
It also aims to implement a positive and inclusive work environment that prioritizes employee safety, fosters an inclusive atmosphere and creates a fulfilling career. The Company supports the well-being of its employees and their families with a variety of physical, mental and social wellness programs, as well as rigorous on-the-job safety programs.
The Company believes different backgrounds, experiences and perspectives generate powerful new ideas and foster sound and sustainable decision making. The Company’s approach includes deployment of D&I training initiatives, such as psychological safety and unconscious bias trainings, and improvement of its recruitment and onboarding processes.
The Company believes different backgrounds, experiences and perspectives generate powerful new ideas and foster sound and sustainable decision making. The Company’s approach includes deployment of D&I training initiatives, such as psychological safety and unconscious bias trainings, and improvement of its recruitment and 5 Crown Holdings, Inc. onboarding processes.
Transit Packaging differentiates itself from the competition by leveraging its global scale, broad product portfolio and established brand reputation. Transit Packaging products compete, to some extent, with various other packaging materials, including other products made of paper, plastics, wood and various types of metal.
Transit Packaging differentiates itself from the competition by leveraging its global scale, broad product portfolio and established brand reputation. Transit Packaging products compete, to some extent, with various other packaging materials, including other products made of paper, plastics, wood and various types of metal. 2 Crown Holdings, Inc.
In addition, if the Company were unable to purchase aluminum and steel for a significant period of time, its operations would be disrupted, and if the Company were unable to fully recover the higher cost of aluminum and steel, its financial results may be adversely affected. 3 Crown Holdings, Inc.
In addition, if the Company were unable to purchase aluminum and steel for a significant period of time, its operations would be disrupted, and if the Company were unable to fully recover the higher cost of aluminum and steel, its financial results may be adversely affected.
Within its own workforce, the Company is prioritizing employee welfare and striving to more regularly engage its professionals to foster a more connected global team dedicated to individual and collective improvement as an organization.
Within its own workforce, the Company is prioritizing employee welfare and striving to more regularly engage its professionals to foster a more connected global team dedicated to individual and collective improvement as an organization. 4 Crown Holdings, Inc.
The corporate RD&E Center is also applying technical expertise to advance product design and manufacturing capabilities for the Company's Transit Packaging segment, supplementing the group's existing product developments.
The corporate RD&E Center is also applying technical expertise to advance product design and manufacturing capabilities for the Company's beverage equipment operations and its Transit Packaging segment, supplementing the group's existing product developments.
Collective bargaining agreements with varying terms and expiration dates cover approximately 11,400 employees. The Company did not experience any significant union-initiated work stoppages during the 2022 fiscal year and believes that its employee relations remain good.
Collective bargaining agreements with varying terms and expiration dates cover approximately 10,600 employees. The Company did not experience any significant union-initiated work stoppages during the 2023 fiscal year and believes that its employee relations remain good.
Americas Beverage had net sales in 2022 of $5.1 billion and segment income (as defined under Note Y to the consolidated financial statements) of $742 million. 1 Crown Holdings, Inc. EUROPEAN BEVERAGE The European Beverage segment manufactures infinitely recyclable aluminum beverage cans and ends in Europe, the Middle East and North Africa.
Americas Beverage had net sales in 2023 of $5.1 billion and segment income (as defined under Note Y to the consolidated financial statements) of $876 million. EUROPEAN BEVERAGE The European Beverage segment manufactures infinitely recyclable aluminum beverage cans and ends in Europe, the Middle East and North Africa.
Attracting, developing and retaining the most skilled and engaged people globally is crucial to all aspects of the Company’s activities. To this end, the Company has cultivated a senior management team with extensive industry experience and highly specialized skills and has consistently re‑invested in necessary resources to effectively staff and efficiently support its businesses.
Attracting, developing and retaining the most skilled and engaged people globally is crucial to all aspe cts of the Company’s activities. To this end, the Company has cultivated a senior management team with extensive industry experience and highly complementary s kill sets and has consistently re‑invested in necessary resources to effectively staff and efficiently support its businesses.
These programs differ by region, but include Company-sponsored or subsidized medical insurance over and above government provisions, annual medical, cancer and audiometry screenings, voluntary health fairs and employee mental health assistance programs to improve health and wellness.
Physical health and wellness programs differ by region, but include Company-sponsored or subsidized medical insurance over and above government provisions, annual medical, cancer and audiometry screenings, and voluntary health fairs. The Company offers employee mental health assistance programs.
HUMAN CAPITAL At December 31, 2022, the Company had approximately 26,000 employees worldwide, with approximately 6,000 employed by the Americas Beverage segment, 3,500 employed by the European Beverage segment, 5,000 employed by the Asia Pacific segment, 8,000 employed by the Transit Packaging segment and 3,500 employed by Other. A significant portion of the Company’s workforce is unionized.
HUMAN CAPITAL At December 31, 2023, the Company had approximately 25,000 employees worldwide, with approximately 6,000 employed by the Americas Beverage segment, 3,500 employed by the European Beverage segment, 4,500 employed by the Asia Pacific segment, 7,500 employed by the Transit Packaging segment and 3,500 employed by Other. A significant portion of the Company’s workforce is unionized.
The Company recognizes that a diverse and inclusive workforce is critical to its future business success. It has therefore integrated Diversity & Inclusion (D&I) as a dimension of its Twentyby30 sustainability program, aiming first to embed D&I 5 Crown Holdings, Inc. awareness in its organizational culture.
The Company recognizes that a diverse and inclusive workforce is critical to its future business success. It has therefore integrated Diversity & Inclusion (D&I) as a dimension of its Twenty by 30 sustainability program, aiming to embed D&I awareness in its organizational culture.
AMERICAS BEVERAGE The Americas Beverage segment manufactures infinitely recyclable aluminum beverage cans and ends, glass bottles, steel crowns and aluminum caps. Manufacturing facilities are located in the U.S., Brazil, Canada, Colombia and Mexico.
Operations are managed regionally to best serve our customers. AMERICAS BEVERAGE The Americas Beverage segment manufactures infinitely recyclable aluminum beverage cans and ends, glass bottles, steel crowns and aluminum caps. Manufacturing facilities are located in the U.S., Brazil, Canada, Colombia and Mexico.
Through the Twentyby30 program, the Company has committed to sourcing standards that by 2030 require 100% of core raw materials and service suppliers, by spend, to be assessed and comply with Crown Responsible and Ethical Sourcing policies and requirements.
Through the Twenty by 30 program, the Company has committed to sourcing standards that by 2030 require 100% of core raw materials and service suppliers, by spend, to be assessed and comply with Crown Responsible and Ethical Sourcing policies and requirements. SUSTAINABILITY Sustainability remains a core focus of the Company’s business strategy and commitments.
CUSTOMERS The Company’s largest beverage can customers consist of many of the leading manufacturers and marketers of packaged consumer products in the world, including Anheuser-Busch InBev, Coca-Cola, Heineken, Keurig Dr Pepper, Molson Coors, Pepsi-Cola and Refresco, among others. Consolidation trends among beverage marketers have led to a concentrated customer base.
CUSTOMERS The Company’s largest beverage can customers consist of many of the leading manufacturers and marketers of packaged consumer products in the world, including Anheuser-Busch InBev, Coca-Cola, Heineken, Keurig Dr Pepper, Molson Coors, Pepsi-Cola and Refresco, among others. In addition to sales to Coca-Cola and Pepsi-Cola, the Company also supplies independent licensees of Coca-Cola and Pepsi-Cola.
The Asia Pacific had net sales in 2022 of $1.6 billion and segment income (as defined under Note Y to the consolidated financial statements) of $172 million. TRANSIT PACKAGING The Company's Transit Packaging segment includes the Company’s worldwide industrial products, protective solutions, and automation, equipment and tools business.
The Asia Pacific segment had net sales in 2023 of $1.3 billion and segment income (as defined under Note Y to the consolidated financial statements) of $154 million. TRANSIT PACKAGING The Company's Transit Packaging segment includes the Company’s worldwide automation and equipment technologies, protective packaging solutions and steel and plastic consumables.
Recent examples include the Company’s Accents™ variable printing technology, which facilitates up to 24 different beverage can designs in a single run, and its Quantum™ debossing technology, which implements a unique golf-ball texture on food cans to prevent counterfeiting and reduce material usage by almost 13%.
Recent examples include the Company’s Accents™ variable printing technology, which facilitates up to 24 different beverage can designs in a single run, and its Quantum™ debossing technology, which implements unique textures on food cans that replace can wall beading with proprietary debossed patterns, such as hexagonal or oval arrays, to prevent counterfeiting and reduce material usage by up to 13%.
As such, the Company is collaborating with industry partners to improve recycling rates and recycled content rates. In addition, the Company is making strides in its energy and water usage on a global level, working to implement more renewable energy sources, minimize wastewater and execute water replenishment programs.
In addition, the Company is making strides in its energy and water usage on a global level, working to implement more renewable energy, minimize water usage and execute water replenishment programs.
The Company’s top ten global customers represented in the aggregate approximately 49% of its 2022 consolidated net sales. For the years ended December 31, 2022 and 2021, two customers each accounted for 12% and 11%, of the Company's consolidated net sales.
Consolidation trends among beverage marketers have led to a concentrated customer base. The Company’s top ten global customers represented in the aggregate approximately 48% of its 2023 consolidated net sales. For the years ended December 31, 2023, 2022 and 2021, two customers each accounted for 12% and 11%, of the Company's consolidated net sales.
Each reportable segment, with the exception of Transit Packaging, has major customers and the loss of one or more of these major customers could have a material adverse effect on an individual segment or the Company as a whole. In addition to sales to Coca-Cola and Pepsi-Cola, the Company also supplies independent licensees of Coca-Cola and Pepsi-Cola.
These customers are global beverage companies served by the Company's beverage operations in the Americas, Europe and Asia. Each reportable segment, with the exception of Transit Packaging, has major customers and the loss of one or more of these major customers could have a material adverse effect on an individual segment or the Company as a whole.
Across Twentyby30 program pillars, the Company works toward continuous improvement in product design and manufacturing practices to provide the best outcome for the environment, communities, employees and consumers, both now and in the future.
Across Twenty by 30 program pillars, the Company works toward continuous improvement in product design and manufacturing practices to provide the best outcome for the environment, communities, employees and consumers, both now and in the future. Aluminum and steel contribute to these improvements as, by nature, they are infinitely recyclable without loss of properties.
As a result of its collective efforts, the Company has recently received the following recognition: • In 2022, ESG ratings provider Sustainalytics ranked the Company as a Low ESG Risk Rating for managing ESG risk within the metal and glass packaging sub-industry. • The Company was named to the America's Most Responsible Companies 2023 list by Newsweek. • The Company was ranked in the top 100 companies included in Forbes’ 2021 inaugural “World’s Top Female-Friendly Companies” list.
As a result of its collective efforts, the Company has recently received the following recognitions in 2023: • ESG ratings provider Sustainalytics ranked the Company as a Low ESG Risk Rating for managing ESG risk within the metal and glass packaging sub-industry.
These objectives encompass all aspects of sustainability and reflect areas considered material to the Company’s business as well as areas where it can create notable impact.
In 2020, Crown established its comprehensive Twenty by 30 program, setting 20 measurable goals to be reached by 2030 or sooner. These objectives encompass all aspects of sustainability and reflect areas considered material to the Company’s business as well as areas where it can create notable impact.
Beverage cans are the world’s most sustainable and recycled beverage packaging and continue to gain market share in new beverage product launches. The Company continues to drive brand differentiation by increasing its ability to offer multiple specialty can sizes. Size variations include slim and sleek cans, as well as larger sizes to help customers differentiate their products.
The beverage can is the world's most sustainable and recycled beverage package and continues to disproportionately be the package of choice for new beverage product introductions. The Company continues to drive innovation by increasing its ability to offer multiple specialty can sizes, including slim and sleek cans, to help customers differentiate their products.
Aluminum cans, which are infinitely recyclable and remain the world’s most recycled beverage packaging, exemplify sustainability and are a strong contributor to the circular economy. The Company is working in conjunction with industry partners to drive higher recycling rates and increase recycled content to ensure infinitely recycled aluminum cans are available for generations of future use.
The Company is working in conjunction with industry partners to drive higher recycling rates and increase recycled content to ensure infinitely recycled aluminum cans are available for generations of future use. REPORTABLE SEGMENTS The Company's business is generally organized by product line and geography. The reportable segments are: Americas Beverage, European Beverage, Asia Pacific and Transit Packaging.
Aluminum and steel contribute to these improvements as, by nature, they are infinitely recyclable without loss of properties, meaning they can be repeatedly reused to form new consumer packaging with no degradation in performance, quality or safety. Recycling these metals offers significant savings in energy and water consumption, as well as carbon dioxide emissions.
This means they can be used repeatedly to form new consumer packaging with no degradation in performance, quality or safety. Recycling these metals offers significant savings in energy and water consumption, as well as carbon dioxide emissions. As such, the Company is collaborating with industry partners to improve consumer recycling rates and increasing the use of recycled content.
The Company’s Twentyby30 program, which is a comprehensive sustainability strategy that outlines 20 measurable goals to be achieved by 2030, has accelerated critical initiatives and progress around carbon footprint management and social impact. The Company continues to leverage the inherent ecofriendly benefits of its primary product, metal packaging, to advance toward its targets.
The Company’s Twenty by 30 TM program, which is a comprehensive sustainability strategy that outlines twenty measurable goals to be achieved by 2030, has accelerated critical initiatives and progress around carbon footprint management and efficient use of resources, among other issues.
European Beverage had net sales in 2022 of $2.1 billion and segment income (as defined under Note Y to the consolidated financial statements) of $144 million. ASIA PACIFIC The Asia Pacific segment primarily consisting of beverage can operations in Cambodia, China, Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam and also includes non-beverage can operations, primarily food cans and specialty packaging.
ASIA PACIFIC The Asia Pacific segment primarily consists of beverage can operations in Cambodia, China, Indonesia, Malaysia, Myanmar, Thailand and Vietnam and also includes non-beverage can operations, primarily food cans and specialty packaging. 1 Crown Holdings, Inc.
It has also made efforts to fill corporate and plant roles worldwide with individuals who possess material, design and manufacturing expertise and can cultivate lasting customer relationships.
It has also made efforts to fill corporate and plant roles worldwide with individuals who possess material, design and manufacturing expertise and can cultivate lasting customer relationships. To aid retention, the Company aspires to offer market rate competitive salaries to all its staff and it provides professional development opportunities that both contribute to the Company’s success and maximize employees' potential.
It also continues to deliver new printing and decorating capabilities, as well as value-add services that aid customers throughout the entire production cycle, from consultation and development to line implementation and quality assurance The Company is guided by commitments to its stakeholders and its own goals to foster a resilient business with longevity, which requires an emphasis on both financial performance and environmental, social and governance ("ESG") performance.
It also continues to deliver new printing and decorating capabilities, as well as services that aid customers throughout the entire production cycle, from consultation and development to line implementation and quality assurance.
Transit Packaging is also well known throughout its markets for its ability to drive product innovation and leadership in new technologies. Transit Packaging focuses on market driven innovation and has a long history of creating product and service solutions that solve problems and create value for its customers.
Transit Packaging focuses on market driven innovation and has a long history of creating product and service solutions that solve problems and create value for its customers. Transit Packaging has grown its global patent portfolio to over 360 U.S. issued patents or pending patent applications and over 980 foreign issued patents or pending patent applications.
In 2022, consolidated net sales for the Company were $12.9 billion with 63% derived from operations outside the United States ("U.S.") The Company's strategy is to deploy capital into its global beverage can operations to expand production capacity to support growing customer demand in alcoholic and non-alcoholic drink categories.
In 2023, consolidated net sales for the Company were $12 billion with 63% derived from operations outside the United States ("U.S.") Approximately 63% of the Company's consolidated net sales were derived from the Company's global beverage can business.
Automation, equipment and tools includes manual, semi-automatic and automatic equipment and tools, which are primarily used in end-of-line operations to apply consumables such as strap and film. The Transit Packaging had net sales in 2022 of $2.5 billion and segment income (as defined under Note Y to the consolidated financial statements) of $281 million.
Automation and equipment technologies include manual, semi-automatic and automatic equipment and tools, which are primarily used in end-of-line operations to apply and remove consumables such as strap and film.
The Company continues to focus on improving gender equality and cultural diversity in the organization, including developing and empowering minorities and women through greater career opportunity and recognition. The Company places a high value on skills management and lifelong learning opportunities that benefit both the individual employee and the whole Company.
The Company continues to focus on improving gender equality and cultural diversity in the organization, including developing and empowering minorities and women through greater career opportunity and recognition. To give every employee the opportunity to feel heard, supported and valued and to continue building its inclusive culture, the Company implemented a new employee engagement survey globally.
The Company's transit and protective packaging products include steel and plastic consumables and equipment, paper-based protective packaging, and plastic film consumables and equipment, which are sold into the metals, food and beverage, construction, agricultural, corrugated and general industries.
The Company's transit packaging products include automation and equipment technologies, protective packaging solutions and steel and plastic consumables which are sold into the metals, food and beverage, construction, agricultural, corrugated, and general industries. At December 31, 2023, the Company operated 195 plants along with sales and service facilities throughout 39 countries and had approximately 25,000 employees.
As a major manufacturer with operations worldwide, the Company can significantly impact industry progress by supporting important environmental and social initiatives and adopting practices that create change both within the organization and within partner relationships. In 2020, Crown established its comprehensive Twentyby30 program, setting 20 measurable goals to be reached by 2030 or sooner.
The Company recognizes the critical role of corporate social responsibility and the impact of sustainability performance on economic opportunity and stakeholder relationships, including customers and employees. As a major manufacturer with operations worldwide, the Company can significantly impact industry progress by supporting important sustainability initiatives and adopting practices that create change both within the organization and within partner relationships.
Talent development programs vary by region, but include leadership programs designed to support operations leadership, lean manufacturing operations and employee performance management.
Talent development programs vary by region, but include leadership programs designed to support operations leadership, lean manufacturing operations and employee performance management. While updating its Human Rights policy based on the latest legal developments, the company has developed a comprehensive Human Rights training program translated into the predominant local languages used within our organization.
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The Company, through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets.
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The Company was founded in 1892 and is a leading global diversified packaging business that manufactures metal cans and ends (aluminum and steel) for the beverage, food and aerosol industries and a wide range of transit packaging products and solutions from multiple substrates including steel, paper, and plastic.
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The Company's consumer packaging solutions primarily support the beverage and food industries, along with the personal care and household industries, through the development and sale of aluminum and steel cans.
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Over the last several years, the Company has deployed capital to expand production capacity in its global beverage can operations to support growing customer demand in both the alcoholic and non-alcoholic drink categories serving local, regional and global customers.
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At December 31, 2022, the Company operated 199 plants along with sales and service facilities throughout 40 countries and had approximately 26,000 employees.
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The Company is guided by commitments to its stakeholders and its own goals to foster a resilient business with longevity, which requires an emphasis on financial performance and sustainability.
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Approximately 66% of the Company's consolidated net sales were derived from the Company's global beverage can operations. The Company’s beverage can business is built around local, regional and global markets, which has served to develop the Company’s understanding of global customer and consumer expectations.
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The Company continues to leverage the inherent eco-friendly benefits of its primary product, metal packaging, to advance toward its targets. Aluminum cans, which are infinitely recyclable and remain the world’s most recycled beverage packaging, exemplify sustainability and are a strong contributor to the circular economy.
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The Company expects to continue to responsibly add beverage can capacity to meet customer needs, as necessary. REPORTABLE SEGMENTS The Company's business is generally organized by product line and geography. The reportable segments are: Americas Beverage, European Beverage, Asia Pacific and Transit Packaging.
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European Beverage had net sales in 2023 of $1.9 billion and segment income (as defined under Note Y to the consolidated financial statements) of $199 million.
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Our operations are set up in a strategic regional spread to cover a broad range of market areas and to best support our customers. While the Company operates in nearly all regions of the world, it consistently monitors and invests in growing markets, including Latin America and Southeast Asia.
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The automation and equipment business along with our product offering allow the Company to offer a comprehensive solution to pack, wrap, strap, secure and store products all over the world. The Transit Packaging segment had net sales in 2023 of $2.3 billion and segment income (as defined under Note Y to the consolidated financial statements) of $331 million.
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For the year ended December 31, 2020 the same two customers accounted for 11% and 10%, of the Company's consolidated net sales. These customers are global beverage companies served by the Company's beverage operations in the Americas, Europe and Asia.
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The Company made the following efforts in 2023 to be a more proactive sustainability leader: • Commissioned a study together with the International Aluminum Institute and others in the industry to determine the recycling rate of aluminum cans in Vietnam, Thailand, Cambodia, and the United Arab Emirates - key markets where the Company maintains operations; • Continued its pursuit of Aluminum Stewardship Initiative certification, and the Company now has certifications in Brazil, Colombia, Mexico, Thailand and Vietnam; and • Participated in several discussion at the United Nations Climate Change Conference (COP 28) to drive discussions around climate and aluminum decarbonization, together with others in the industry.
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SUSTAINABILITY Sustainability remains a core focus of the Company’s business strategy and commitments, as the Company recognizes its critical role in corporate social responsibility and the impact of sustainability performance on economic opportunity and stakeholder relationships, including customers and employees.
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This marks the fourth year in a row the Company has landed in the top 3% in the "Containers and Packaging" category. • The Company was ranked as the top packaging company within the Transport, Logistics & Packaging category in Newsweek's second annual listing of the Most Trustworthy Companies in America. • The Company was included in USA TODAY'S inaugural America's Climate Leaders list, which aims to provide guidance for investors and customers evaluating the sustainability progress of their partners or potential partners.
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A few key, recent efforts the Company has made to be a more proactive sustainability leader include: • In 2022, the Company co-hosted the beverage can industry’s first Global Aluminum Can Sustainability Summit, bringing together over 100 global attendees from various parts of the aluminum supply chain and facilitating important discussions aimed at driving actionable progress toward the industry’s sustainability goals. • The Company committed to The Climate Pledge, targeting to achieve net-zero carbon emissions by 2040, a full 10 years ahead of the Paris Agreement goals. • In 2022, Crown signed on to the United Nations (UN) Global Compact, a voluntary initiative based on CEO commitments to implement universal sustainability principles and take steps to support UN goals. 4 Crown Holdings, Inc.
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The Company aims to better understand what the employee experience looks like at Crown, what works well and what can be improved. The Company places a high value on skills management and lifelong learning opportunities that benefit both the individual employee and the whole Company.
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To aid retention, the Company aspires to offer market rate competitive salaries for the regions in which it operates and it engages employees with professional development opportunities that both contribute to the Company’s success and maximize their personal potential.
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This program is designed to improve our employees’ understanding, awareness and commitment to human rights principles within our organization.
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Transit Packaging has grown its global patent portfolio to over 360 U.S. issued patents or pending patent applications and over 1,000 foreign issued patents or pending patent applications. The portfolio broadly covers about 340 customized technologies and spans diverse business platforms, as well as the different countries in which it operates. 6 Crown Holdings, Inc.
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The RD&E team has also expanded efforts to advance innovations through strategic partnerships with suppliers and through the use of Open Innovation to access new technologies.
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The Company spent $34 million in 2022, $47 million in 2021, and $48 million in 2020 in its RD&E activities. Certain of these activities are expected to improve and expand the Company's product lines in the future. These expenditures include projects to improve manufacturing efficiencies, reduce unit costs, and develop new and improved value-added packaging systems.
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These efforts 6 Crown Holdings, Inc. are aimed at enhancing the Company's products for our customers by developing improved coatings with enhanced barriers, new decoration technology (such as digital printing), and improved container functionality (such as enhanced resealability). Transit Packaging is also well known throughout its markets for its ability to drive product innovation and leadership in new technologies.
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The portfolio broadly covers about 350 customized technologies and spans diverse business platforms, as well as the different countries in which it operates. The Company spe nt $33 m illion in 2023, $34 million in 2022, and $47 million in 2021 in its RD&E activities.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

60 edited+5 added−12 removed142 unchanged
Biggest changeThe Company has a significant amount of goodwill that, if impaired in the future, would result in lower reported net income and a reduction of its net worth. Impairment of the Company's goodwill would require a write down of goodwill, which would reduce the Company's net income in the period of any such write down.
Biggest changeIn addition, poor weather conditions that reduce crop yields of packaged foods can decrease customer demand for its food containers. The Company has a significant amount of goodwill that, if impaired in the future, would result in lower reported net income and a reduction of its net worth.
In addition, if the Company's information technology systems suffer severe damage, disruption or shutdown and the Company's business continuity plans do not effectively resolve the issues in a timely manner, the Company may lose revenue and profits as a result of its inability to timely manufacture, distribute, invoice and collect payments from its customers, and could experience delays in reporting its financial results, including with respect to the Company's operations in emerging markets.
In addition, if the Company's information technology systems suffer severe damage, disruption or shutdown and the Company's business continuity plans do not effectively resolve the issues in a timely manner, the Company may lose customers and suppliers and revenue and profits as a result of its inability to timely manufacture, distribute, invoice and collect payments from its customers, and could experience delays in reporting its financial results, including with respect to the Company's operations in emerging markets.
The ability to mitigate inflationary risks through these measures varies by region and the impact on the results of the Company's segments for the year-ended December 31, 2022 is discussed, as applicable in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations." In addition, any price increases may take effect after related cost increases, reducing operating income in the near term.
The ability to mitigate inflationary risks through these measures varies by region and the impact on the results of the Company's segments for the year-ended December 31, 2023 is discussed, as applicable in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations." In addition, any price increases may take effect after related cost increases, reducing operating income in the near term.
The developing nature of these markets and the nature of the Company’s international operations generally are subject to various risks, including: • foreign governments' restrictive trade policies; • conflicting regulation (including with respect to product labelling, privacy, data protection and advanced technologies) and policy changes by foreign agencies or governments; • duties, taxes or government royalties, including the imposition or increase of withholding and other taxes on remittances and other payments by non-U.S. subsidiaries; • customs, import/export control and other trade compliance regulations; • foreign exchange rate risks and exchange controls; • difficulty in collecting international accounts receivable and potentially longer payment cycles; • increased costs in maintaining international manufacturing and marketing efforts; • non-tariff barriers and higher duty rates; • difficulties associated with expatriating or repatriating cash generated or held abroad in a tax-efficient manner; • changes in tax laws and regulations; • difficulties in enforcing contractual obligations and intellectual property rights and difficulties in protecting intellectual property or sensitive commercial and operations data or information technology systems generally; • national and regional labor strikes and work stoppages; • geographic, language and cultural differences between personnel in different areas of the world; • high social benefit costs for labor, including costs associated with restructurings; • civil unrest or political, social, legal and economic instability; • product boycotts, including with respect to the products of the Company's multi-national customers; • customer, supplier, and investor concerns regarding operations in areas such as the Middle East; • taking of property by nationalization or expropriation without fair compensation; • imposition of limitations on conversions of foreign currencies into dollars or payment of dividends and other payments by non-U.S. subsidiaries; 10 Crown Holdings, Inc. • hyperinflation and currency devaluation in any country where such currency devaluation could affect the amount of cash generated by operations in that country and thereby affect the Company's ability to satisfy its obligations; • geographical concentration of the Company’s factories and operations and regional shifts in its customer base; • war (such as the ongoing military conflict between Russia and Ukraine), civil disturbance, global or regional catastrophic events, natural disasters, and acts of terrorism; • epidemics, pandemics, and other disease outbreaks and health crises (such as the ongoing COVID-19 pandemic); • the complexity of managing global operations; and • compliance with applicable anti-corruption, anti-bribery laws and anti-money laundering laws and sanctions.
The developing nature of these markets and the nature of the Company’s international operations generally are subject to various risks, including: • foreign governments' restrictive trade policies; • conflicting regulation (including with respect to product labelling, privacy, data protection and advanced technologies) and policy changes by foreign agencies or governments; • duties, taxes or government royalties, including the imposition or increase of withholding and other taxes on remittances and other payments by non-U.S. subsidiaries; • customs, import/export control and other trade compliance regulations; • foreign exchange rate risks and exchange controls; • difficulty in collecting international accounts receivable and potentially longer payment cycles; • increased costs in maintaining international manufacturing and marketing efforts; • non-tariff barriers and higher duty rates; • difficulties associated with expatriating or repatriating cash generated or held abroad in a tax-efficient manner; • changes in tax laws and regulations; • difficulties in enforcing contractual obligations and intellectual property rights and difficulties in protecting intellectual property or sensitive commercial and operations data or information technology systems generally; • national and regional labor strikes and work stoppages; • geographic, language and cultural differences between personnel in different areas of the world; • high social benefit costs for labor, including costs associated with restructurings; 10 Crown Holdings, Inc. • civil unrest or political, social, legal and economic instability; • product boycotts, including with respect to the products of the Company's multi-national customers; • customer, supplier, and investor concerns regarding operations in areas such as the Middle East; • taking of property by nationalization or expropriation without fair compensation; • imposition of limitations on conversions of foreign currencies into dollars or payment of dividends and other payments by non-U.S. subsidiaries; • hyperinflation and currency devaluation in any country where such currency devaluation could affect the amount of cash generated by operations in that country and thereby affect the Company's ability to satisfy its obligations; • geographical concentration of the Company’s factories and operations and regional shifts in its customer base; • war (such as the ongoing military conflict between Russia and Ukraine, and the Israel - Hamas conflict, and other hostilities in the Middle-East), civil disturbance, global or regional catastrophic events, natural disasters, and acts of terrorism; • epidemics, pandemics, and other disease outbreaks and health crises (such as the possible reemergence of the COVID-19 pandemic); • the complexity of managing global operations; and • compliance with applicable anti-corruption, anti-bribery laws and anti-money laundering laws and sanctions; and continuing legal, political and economic uncertainty following Brexit.
Of the Company's outstanding claims, approximately 17,000 claims relate to claimants alleging first exposure to asbestos after 1964 and approximately 40,500 relate to claimants alleging first exposure to asbestos before or during 1964, of which approximately 13,000 were filed in Texas, 1,500 were filed in Pennsylvania, 6,000 were filed in other states that have enacted asbestos legislation and 20,000 were filed in other states.
Of the Company's outstanding claims, approximately 18,000 claims relate to claimants alleging first exposure to asbestos after 1964 and approximately 40,500 relate to claimants alleging first exposure to asbestos before or during 1964, of which approximately 13,000 were filed in Texas, 1,500 were filed in Pennsylvania, 6,000 were filed in other states that have enacted asbestos legislation and 20,000 were filed in other states.
The outstanding claims at December 31, 2022 also exclude approximately 19,000 inactive claims, as well as claims in Texas filed after June 11, 2003. Due to the passage of time, the Company considers it unlikely that the plaintiffs in these cases will pursue further action.
The outstanding claims at December 31, 2023 also exclude approximately 19,000 inactive claims, as well as claims in Texas filed after June 11, 2003. Due to the passage of time, the Company considers it unlikely that the plaintiffs in these cases will pursue further action.
A 0.50% change in the discount rates assumptions as of December 31, 2022 would change 2023 pension expense by approximately $3 million. The Company may be required to accelerate the timing of its contributions under its pension plans.
A 0.50% change in the discount rates assumptions as of December 31, 2023 would change 2024 pension expense by approximately $3 million. The Company may be required to accelerate the timing of its contributions under its pension plans.
Risks Relating to the Company's International Operations The Company's international operations, which generated approximately 63% of its consolidated net sales in 2022, are subject to various risks that may lead to decreases in its financial results, particularly in the case of the Company's operations in emerging markets.
Risks Relating to the Company's International Operations The Company's international operations, which generated approximately 63% of its consolidated net sales in 2023, are subject to various risks that may lead to decreases in its financial results, particularly in the case of the Company's operations in emerging markets.
Further information regarding Crown's Cork's asbestos-related liabilities is presented within “Management's Discussion and Analysis of Financial Condition and Results of Operations” under the headings, “Provision for Asbestos” and “Critical Accounting Policies” and under Note O to the Company's audited consolidated financial statements included in this Annual Report.
Further information regarding Crown's Cork's asbestos-related liabilities is presented within “Management's Discussion and Analysis of Financial Condition and Results of Operations” under the headings, “Provision for Asbestos” and “Critical Accounting Policies and Estimates” and under Note O to the Company's audited consolidated financial statements included in this Annual Report.
In addition, tariffs and potential limits on steel supply in the U.S. from certain foreign countries could further 7 Crown Holdings, Inc. negatively impact the Company's ability to obtain sufficient quantities of steel at competitive prices. Moreover, future steel supply contracts may provide for prices that fluctuate or adjust rather than provide a fixed price during a one-year period.
In addition, tariffs and potential limits on steel supply in the U.S. from certain foreign countries could further negatively impact the Company's ability to obtain sufficient quantities of steel at competitive prices. Moreover, future steel supply contracts may provide for prices that fluctuate or adjust rather than provide a fixed price during a one-year period.
Crown Cork made cash payments of $21 million, $19 million and $21 million in 2022, 2021 and 2020 to settle asbestos claims and pay related legal and defense costs. These payments and any such future payments will reduce the cash flow available to Crown Cork for its business operations and debt payments.
Crown Cork made cash payments of $17 million, $21 million and $19 million in 2023, 2022 and 2021 to settle asbestos claims and pay related legal and defense costs. These payments and any such future payments will reduce the cash flow available to Crown Cork for its business operations and debt payments.
As a result of the Company's substantial indebtedness, a significant portion of the Company's cash flow will be required to pay interest and principal on its outstanding indebtedness, and the Company may not generate sufficient cash flow from operations, or have future borrowings available under its senior secured credit facilities, to enable it to repay its indebtedness or to fund other liquidity needs.
As a result of the Company's substantial indebtedness, a significant portion of the Company's cash flow will be required to pay interest and principal on its outstanding indebtedness, and the Company may not generate sufficient cash flow from operations, or have future borrowings available under its senior secured 11 Crown Holdings, Inc. credit facilities, to enable it to repay its indebtedness or to fund other liquidity needs.
This requires a thorough understanding of the 8 Crown Holdings, Inc. Company's existing and potential customers on a global basis, particularly in developing markets and areas, such as the Middle East, South America, Eastern Europe and Asia. Failure to deliver quality products that meet customer needs ahead of competitors could have a significant adverse effect on the Company's business.
This requires a thorough understanding of the Company's existing and potential customers on a global basis, particularly in developing markets and areas, such as the Middle East, South America, Eastern Europe and Asia. Failure to deliver quality products that meet customer needs ahead of competitors could have a significant adverse effect on the Company's business.
In addition, as of December 31, 2022 the unfunded accumulated postretirement benefit obligation, as calculated in accordance with U.S. generally accepted accounting principles, for retiree medical benefits was approximately $108 million, based on assumptions set forth under Note R to the Company's audited consolidated financial statements in this Annual Report.
In addition, as of December 31, 2023 the unfunded accumulated postretirement benefit obligation, as calculated in accordance with U.S. generally accepted accounting principles, for retiree medical benefits was approximately $107 million, based on assumptions set forth under Note R to the Company's audited consolidated financial statements in this Annual Report.
If the Company does not allocate, and effectively manage, the resources necessary to build, sustain and protect the proper technology infrastructure, the Company could be subject to transaction errors, processing inefficiencies, loss of customers, business disruptions, the loss of or damage to intellectual or physical property through security breach, and reputational harm, as well as potential civil liability and fines under various states' laws in which the Company does business.
If the Company does not allocate, and effectively manage, the resources necessary to build, sustain and protect the proper technology infrastructure, the Company could be subject to transaction errors, processing inefficiencies, loss of customers, business disruptions, the loss of or damage to intellectual or physical property through security breach, and reputational harm, as well as potential litigation, civil liability and fines under various laws and regulatory regimes of jurisdictions in which the Company does business.
In the event that the Company's joint venture partners do not observe their obligations or are unable to commit additional capital to the joint ventures, it is possible that the affected joint venture would not be able to operate in accordance with its business plans or that the Company would have to increase its level of commitment to the joint venture.
In the event that the Company's joint venture partners do not observe their obligations or are unable to commit additional capital to the joint ventures, it is possible that the affected joint venture would not be able to operate in accordance with its business plans or that the Company would have to increase its level of commitment to the joint venture. 9 Crown Holdings, Inc.
In periods of low worldwide demand for its products or in situations where industry expansion creates excess capacity, the Company experiences relatively low capacity utilization rates in its operations, which can lead to reduced margins and can have an adverse effect on the Company's business.
In periods of low worldwide demand for its products or in situations where industry expansion creates excess capacity, the Company experiences relatively 8 Crown Holdings, Inc. low capacity utilization rates in its operations, which can lead to reduced margins and can have an adverse effect on the Company's business.
Adding new debt to current debt levels or making otherwise restricted payments could intensify the related risks that the Company and its subsidiaries now face. The Company's senior secured credit facilities provide that certain change of control events constitute an event of default.
Adding new debt to current debt levels or making otherwise restricted payments could intensify the related risks that the Company and its subsidiaries now face. 13 Crown Holdings, Inc. The Company's senior secured credit facilities provide that certain change of control events constitute an event of default.
Not all of the Company's domestic patents have 9 Crown Holdings, Inc. been registered in other countries. The Company also relies on trade secrets, know-how and other unpatented proprietary technology, and others may independently develop the same or similar technology or otherwise obtain access to the Company's unpatented technology.
Not all of the Company's domestic patents have been registered in other countries. The Company also relies on trade secrets, know-how and other unpatented proprietary technology, and others may independently develop the same or similar technology or otherwise obtain access to the Company's unpatented technology.
Pension expense was $25 million and is expected to be $56 million in 2023, using foreign currency exchange rates in effect at December 31, 2022. A 0.50% change in the 2023 expected rate of return assumptions would change 2023 pension expense by approximately $6 million.
Pension expense was $64 million and is expected to be $56 million in 2024, using foreign currency exchange rates in effect at December 31, 2023. A 0.50% change in the 2024 expected rate of return assumptions would change 2024 pension expense by approximately $6 million.
If the performance of plan assets does not meet the Company's assumptions or discount rates 14 Crown Holdings, Inc. decline, the underfunding of the pension plans may increase and the Company may have to contribute additional funds to the pension plans, and the Company's pension expense may increase. In addition, certain of the Company's pension and postretirement plans are unfunded.
If the performance of plan assets does not meet the Company's assumptions or discount rates decline, the underfunding of the pension plans may increase and the Company may have to contribute additional funds to the pension plans, and the Company's pension expense may increase. In addition, certain of the Company's pension and postretirement plans are unfunded.
While the Company is exploring various alternatives to the use of bisphenol-A and conversion to alternatives is underway in some applications, there can be no assurance the Company will be completely successful in its efforts or that the alternatives will not be more costly to the Company.
While the Company is exploring various alternatives to the use of 16 Crown Holdings, Inc. bisphenol-A and conversion to alternatives is underway in some applications, there can be no assurance the Company will be completely successful in its efforts or that the alternatives will not be more costly to the Company.
Sufficient quantities of these raw materials may not be available in the future or may be available only at increased prices. In 2022, consumption of aluminum and steel represented 44% and 9% of the Company's consolidated cost of products sold, excluding depreciation and amortization.
Sufficient quantities of these raw materials may not be available in the future or may be available only at increased prices. In 2023, consumption of aluminum and steel represented 44% and 8% of the Company's consolidated cost of products sold, excluding depreciation and amortization.
The Company's U.S. funded pension plan is subject to the Employee Retirement Income Security Act of 1974, or ERISA. Under ERISA, the Pension Benefit Guaranty Corporation, or PBGC, has the authority to terminate an underfunded plan under certain circumstances.
The Company's U.S. funded pension plan is subject to the Employee Retirement Income Security Act of 1974, or ERISA. Under ERISA, the Pension Benefit Guaranty Corporation, or PBGC, has the authority to terminate an underfunded plan under 14 Crown Holdings, Inc. certain circumstances.
Changes in such laws and regulations, such as the sugary-drink taxes discussed above, could negatively impact customers' demand for the Company's products as they comply with such changes and/or require the Company to make changes to its products. Such changes to the 17 Crown Holdings, Inc.
Changes in such laws and regulations, such as the sugary-drink taxes discussed above, could negatively impact customers' demand for the Company's products as they comply with such changes and/or require the Company to make changes to its products.
The Company has announced sustainability goals for its next phase of Sustainability as part of its Twentyby30 program. Execution of this program and the achievements of the Company’s sustainability goals is subject to risk and uncertainties, many of which are out of the Company’s control.
The Company has announced sustainability goals for its next phase of Sustainability as part of its Twenty by 30 program. Execution of this program and the achievements of the Company’s sustainability goals is subject to risk and uncertainties, many of which are out of the Company’s control.
As with all large systems, the Company's information technology systems may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components thereof, power outages, hardware failures, computer viruses, attacks by computer hackers, telecommunication failures, user errors or catastrophic events.
As with all large systems, the Company's information technology systems may be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components thereof, power outages, hardware failures, telecommunication failures, user errors or catastrophic events.
The availability of various raw materials and their prices depends on global and local supply and demand forces, governmental regulations (including tariffs and duties), level of production, resource availability, transportation, and other factors, including natural disasters such as floods and earthquakes, and the COVID-19 pandemic.
The availability of various raw materials and their prices depend on global and local supply and demand forces, governmental regulations (including tariffs and duties), level of production, resource availability, transportation, and other factors, including natural disasters such as floods and earthquakes, and pandemics (including possible reemergence of the COVID 19 pandemic).
The Company sponsors various pension plans worldwide, with the largest funded plans in the U.S. and Canada. In 2022, 2021 and 2020, the Company contributed $24 million, $236 million, and $27 million to its pension plans. The 2021 contribution included a $216 million contribution to its U.K. pension plan in advance of full settlement of the plan's obligations.
The Company sponsors various pension plans worldwide, with the largest funded plans in the U.S. and Canada. In 2023, 2022 and 2021, the Company contributed $19 million, $24 million, and $236 million to its pension plans. The 2021 contributions included a $216 million contribution to its U.K. pension plan in advance of full settlement of the plan's obligations.
The Company's raw material supply contracts vary as to terms and duration, with aluminum contracts typically multi-year in duration with fluctuating prices based on aluminum ingot costs and steel contracts typically one year in duration with fixed prices.
The Company's raw material supply contracts vary as to terms 7 Crown Holdings, Inc. and duration, with aluminum contracts typically multi-year in duration with fluctuating prices based on aluminum ingot costs and steel contracts typically one year in duration with fixed prices.
As of December 31, 2022, the Company and its subsidiaries had approximately $7.0 billion of indebtedness, excluding unamortized discounts and debt issuance costs.
As of December 31, 2023, the Company and its subsidiaries had approximately $7.5 billion of indebtedness, excluding unamortized discounts and debt issuance costs.
The Company relies on its information technology and the failure or disruption of its information technology could disrupt its operations and adversely affect its results of operations. The Company's business increasingly relies on the successful and uninterrupted functioning of its information technology systems to process, transmit, and store electronic information.
The Company relies on its information technology, and potential cyber-attack, data breach or other failure or disruption of its information technology could disrupt its operations and adversely affect its results of operations. The Company's business increasingly relies on the successful and uninterrupted functioning of its information technology systems to process, transmit, and store electronic information.
During the year ended December 31, 2022, Crown Cork received approximately 1,500 new claims, settled or dismissed approximately 1,000 claims, and had approximately 57,500 claims outstanding at the end of the period.
During the year ended December 31, 2023, Crown Cork received approximately 1,500 new claims, settled or dismissed approximately 500 claims, and had approximately 58,500 claims outstanding at the end of the period.
The actual effect of a 0.25% increase in these floating interest rates could be more than $10 million as the Company’s average borrowings on its variable rate debt and securitization and factoring may be higher during the year than the amount at December 31, 2022.
The actual effect of a 0.25% increase in these floating interest rates could be 12 Crown Holdings, Inc. more than $8 million as the Company’s average borrowings on its variable rate debt and securitization and factoring may be higher during the year than the amount at December 31, 2023.
The Company uses various raw materials, such as aluminum, steel, tin, water, natural gas, electricity and other processed energy, as well as materials derived from crude oil and natural gas, such as polyethylene and polypropylene resins, in its manufacturing operations.
The Company uses various raw materials, such as aluminum, steel, tin, and materials derived from crude oil and natural gas, such as polyethylene and polypropylene resin, and also water, natural gas, electricity and other processed energy, in its manufacturing activities.
The Company's international operations generated approximately 63% of its consolidated net sales in the years ended 2022 and 2021 and 64% of its consolidated net sales in the year ended 2020.
The Company's international operations generated approximately 63% of its consolidated net sales in the years ended 2023, 2022 and 2021.
The Company may also consider investments in joint ventures or acquisitions or increased capital expenditures, which may increase the Company's 13 Crown Holdings, Inc. indebtedness.
The Company may also consider investments in joint ventures or acquisitions or increased capital expenditures, which may increase the Company's indebtedness.
The Company continues to manage the challenges of supply chain disruptions and increasing costs for raw materials and energy in 2022.
The Company continues to manage the challenges of supply chain disruptions and fluctuating costs for raw materials and energy in 2023.
The Company’s current sources of liquidity includes a securitization facility with a program limit up to a maximum of $700 million that expires in July 2023, a securitization facility with a program limit of $200 million that expires in December 2023, and a securitization facility with a program limit of $160 million that expires in November 2025.
The Company’s current sources of liquidity includes a securitization facility with a program limit up to a maximum of $800 million that expires in July 2025, a securitization facility with a program limit of $230 million that expires in November 2025, and a securitization facility with a program limit of $160 million that expires in November 2025.
The Company's indebtedness includes its €600 million ($642 million at December 31, 2022) 2.625% senior notes due in September 2024; its €600 million ($642 million at December 31, 2022) 3.375% senior notes due in May 2025; its $875 million 4.75% senior notes due in February 2026; its €500 million ($536 million at December 31, 2022) 2.875% senior notes due in February 2026; its $400 million 4.25% senior notes due in September 2026; its $350 million 7.375% senior notes due in December 2026; its $500 million 5.25% senior notes due in August 2030; its $40 million 7.5% senior notes due in December 2096; and its $242 million of other indebtedness in various currencies due at various dates through 2027.
The Company's indebtedness includes its €600 million ($663 million at December 31, 2023) 2.625% senior notes due in September 2024; its €600 million ($663 million at December 31, 2023) 3.375% senior notes due in May 2025; its $875 million 4.75% senior notes due in February 2026; its €500 million ($552 million at December 31, 2023) 2.875% senior notes due in February 2026; its $400 million 4.25% senior notes due in September 2026; its $350 million 7.375% senior notes due in December 2026; its €500 million ($552 million at December 31, 2023) 5.00% senior notes due in May 2028; its €500 million ($552 million at December 31, 2023) 4.75% senior notes due in March 2029; its $500 million 5.25% senior notes due in August 2030; its $40 million 7.50% senior notes due in December 2096; and its $185 million of other indebtedness in various currencies due at various dates through 2027.
At December 31, 2022, the carrying value of the Company's goodwill was $3.0 billion. The Company is required to evaluate goodwill reflected on its balance sheet at least annually or when circumstances indicate a potential impairment. If it determines that the goodwill is impaired, the Company would be required to write off a portion or all of the goodwill.
The Company is required to evaluate goodwill reflected on its balance sheet at least annually or when circumstances indicate a potential impairment. If it determines that the goodwill is impaired, the Company would be required to write off a portion or all of the goodwill.
In addition, security breaches could result in unauthorized disclosure of confidential information. The concentration of processes in shared services centers means that any disruption could impact a large portion of the Company's business within the operating zones served by the affected service center.
The concentration of processes in shared services centers means that any disruption could impact a large portion of the Company's business within the operating zones served by the affected service center.
Company's products could include modifications to the coatings and compounds that the Company uses, possibly resulting in the incurrence of additional costs.
Such changes to the Company's products could include modifications to the coatings and compounds that the Company uses, possibly resulting in 17 Crown Holdings, Inc. the incurrence of additional costs.
If the Company fails to maintain an effective system of internal control, the Company may not be able to accurately report financial results or prevent fraud. Effective internal controls are necessary to provide reliable financial reports and to assist in the effective prevention of fraud. Any inability to provide reliable financial reports or prevent fraud could harm the Company's business.
If the Company fails to maintain an effective system of internal control, the Company may not be able to accurately report financial results or prevent fraud. 20 Crown Holdings, Inc. Effective internal controls are necessary to provide reliable financial reports and to assist in the effective prevention of fraud.
The magnitude of COVID-19’s ultimate impact on the Company will depend on numerous evolving factors, future developments and cascading effects of the coronavirus pandemic that the Company is not able to predict, including the extent and duration of the outbreak’s direct and indirect effect on consumer confidence and spending, customer demand, buying patterns, and work practices and on the Company’s supply chain.
The magnitude of the ultimate impact the reemergence of COVID-19 or another pandemic event would have on the Company will depend on numerous factors and cascading effects of the pandemic that the Company is not able to predict, including the extent and duration of an outbreak’s direct and indirect effect on consumer confidence and spending, customer demand, buying patterns, and work practices and on the Company’s supply chain.
In addition, some companies with packaging needs have responded to such developments, and/or to perceived environmental concerns of consumers, by using containers made in whole or in part of recycled materials. Such developments may reduce the demand for some of the Company's products, and/or increase its costs.
The SEC has also proposed rules which could significantly expand climate-related disclosure obligations. In addition, some companies with packaging needs have responded to such developments, and/or to perceived environmental concerns of consumers, by using containers made in whole or in part of recycled materials. Such developments may reduce the demand for some of the Company's products, and/or increase its costs.
The Company is exposed to fluctuations in foreign currencies as a significant portion of its consolidated net sales, costs, assets and liabilities, are denominated in currencies other than the U.S. dollar.
The Company is exposed to fluctuations in foreign currencies as a significant portion of its consolidated net sales, costs, assets and liabilities, are denominated in currencies other than the U.S. dollar. The Company's international operations generated approximately 63% of its consolidated net sales in the years ended 2023, 2022 and 2021.
(Crown Cork), a wholly-owned subsidiary of the Company, is one of many defendants in a substantial number of lawsuits filed throughout the United States by persons alleging bodily injury as a result of exposure to asbestos.
(Crown Cork), a wholly-owned subsidiary of the Company, is one of many defendants in a substantial number of lawsuits filed throughout the United States by persons alleging bodily injury as a result of exposure to asbestos. In 1963, Crown Cork acquired a subsidiary that had two operating businesses, one of which is alleged to have manufactured asbestos-containing insulation products.
Due principally to the seasonal nature of the soft drink, brewing, iced tea and other beverage industries, in which demand is stronger during the summer months, sales of the Company's products have historically varied and are expected to continue to vary by quarter and by region.
Due principally to the seasonal nature of the soft drink, brewing, iced tea and other beverage industries, in which demand is stronger during the summer months, sales of the Company's products are expected to vary by quarter and by region. Unseasonably cool weather can reduce consumer demand for certain beverages packaged in the Company's containers.
In addition, public reports, litigation and other allegations regarding the 16 Crown Holdings, Inc. potential health hazards of bisphenol-A could contribute to a perceived safety risk about the Company’s products and adversely impact sales or otherwise disrupt the Company’s business.
Domestic and international, federal, state, municipal or other regulatory authorities could further restrict or prohibit the use of bisphenol-A in the future. In addition, public reports, litigation and other allegations regarding the potential health hazards of bisphenol-A could contribute to a perceived safety risk about the Company’s products and adversely impact sales or otherwise disrupt the Company’s business.
The Company must annually evaluate its internal procedures to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, which requires management and auditors to assess the effectiveness of internal controls.
Any inability to provide reliable financial reports or prevent fraud could harm the Company's business. The Company must annually evaluate its internal procedures to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, which requires management and auditors to assess the effectiveness of internal controls.
In addition, the Company’s term loan facilities mature as follows: $30 million in 2023, $60 million in 2024, $89 million in 2025, $119 million in 2026 and $2,080 million in 2027.
In addition, the Company’s term loan facilities mature as follows: $15 million in 2024, $22 million in 2025, $30 million in 2026, $2,097 million in 2027.
Based on current assumptions, the Company expects to make pension contributions of $16 million in 2023, $51 million in 2024, $52 million in 2025, $53 million in 2026 and $44 million in 2027.
Based on current assumptions, the Company expects to make pension contributions of $43 million in 2024, $55 million in 2025, $46 million in 2026, $36 million in 2027 and $55 million in 2028.
As of December 31, 2022, Crown Cork's accrual for pending and future asbestos-related claims and related legal costs was $220 million, including $178 million for unasserted claims. The Company determines its accrual without limitation to a specific time period.
Crown Cork believes that the business ceased manufacturing such products in 1963. 15 Crown Holdings, Inc. As of December 31, 2023, Crown Cork's accrual for pending and future asbestos-related claims and related legal costs was $204 million, including $158 million for unasserted claims. The Company determines its accrual without limitation to a specific time period.
The impact of COVID-19 may also exacerbate other risk factors discussed in Item 1A of this Annual Report, any of which could have a material effect on the Company. The extent of the ultimate impact of COVID-19 on the Company’s business is highly uncertain and cannot be reasonably estimated at this time. 20 Crown Holdings, Inc.
The impact of the reemergence of COVID-19 may also exacerbate other risk factors discussed in Item 1A of this Annual Report, any of which could have a material effect on the Company.
Based on the amount of variable rate debt outstanding and securitization and factoring at December 31, 2022, a 0.25% increase in variable interest rates would increase its annual interest expense by approximately $10 million before tax. Accordingly, the Company may experience economic losses and a negative impact on earnings as a result of interest rate fluctuation.
The Company's annual interest expense was $436 million, $284 million and $253 million for 2023, 2022 and 2021, respectively. Based on the amount of variable rate debt outstanding and securitization and factoring at December 31, 2023, a 0.25% increase in variable interest rates would increase its annual interest expense by approximately $8 million before tax.
The majority of the Company's sales are to companies that have leading market positions in the sale of beverages, packaged food and household products to consumers.
In addition, customer concentration could expose the Company to increased credit risk if large customers were unable to fulfill their payment obligations to the Company. The majority of the Company's sales are to companies that have leading market positions in the sale of beverages, packaged food and household products to consumers.
As of December 31, 2022, approximately $2.8 billion of the Company's $7.0 billion of total indebtedness and other outstanding obligations and $1.3 billion of securitization and factoring programs were subject to floating interest rates.
As of December 31, 2023, approximately $2.2 billion of the Company's $7.5 billion of total indebtedness and other outstanding obligations and $1.1 billion of securitization and factoring programs were subject to floating interest rates. Changes in economic conditions could result in higher interest rates, thereby increasing the Company's interest expense and reducing funds available for operations or other purposes.
For the year-ended December 31, 2022, a 0.10 movement in the average euro rate would have reduced net income by approximately $5 million. The departure of the U.K. from the European Union could adversely affect the Company.
For the year-ended December 31, 2023, a 0.10 movement in the average euro rate would have reduced net income by approximately $5 million. Risks Relating to the Company's Indebtedness and Liquidity The substantial indebtedness of the Company could prevent it from fulfilling its obligations under its debt agreements. The Company has substantial outstanding indebtedness.
The removal of bisphenol-A was mandated by French legislation that went into effect in 2015. If the FCA finds that the Company or its subsidiaries violated competition law, the FCA may levy fines.
The removal of bisphenol-A was mandated by French legislation that went into effect in 2015. On December 29, 2023, the FCA issued a decision imposing a fine of €4 million on the Company. The Company intends to appeal the decision of the FCA and there can be no assurance regarding the outcome of such appeal.
Removed
Unseasonably cool weather can reduce consumer demand for certain beverages packaged in the Company's containers. In addition, poor weather conditions that reduce crop yields of packaged foods can decrease customer demand for its food containers.
Added
Impairment of the Company's goodwill would require a write down of goodwill, which would reduce the Company's net income in the period of any such write down. At December 31, 2023, the carrying value of the Company's goodwill was $3.1 billion.
Removed
The Company's international operations generated approximately 63% of its consolidated net sales in the years ended 2022 and 2021 and 64% of its consolidated net sales in the year ended 2020.
Added
Accordingly, the Company may experience economic losses and a negative impact on earnings as a result of interest rate fluctuation.
Removed
The U.K. ceased to be a member of the European Union (“E.U.”) on January 31, 2020, and the applicable transition period ended on December 31, 2020 (such departure commonly referred to as “Brexit”). The U.K. is also no longer part of the European Economic Area.
Added
The Company also manages our various pension plan liabilities through the opportunistic purchase of annuity insurance contracts for portions of outstanding defined pension obligations using plan assets. Future annuity purchase contracts could be significant and result in the Company making additional pension contributions and recording pension settlement charges.
Removed
Continuing legal, political and economic uncertainty following Brexit may be a source of instability in international markets, create significant currency fluctuations, and adversely affect current trading and supply arrangements. Disruptions in trade as a consequence of Brexit could adversely impact the Company’s UK operations.
Added
In addition, cybersecurity related risks including security breaches and cyber-attacks such as computer viruses, denial-of-service attacks, malicious code (including ransomware), social-engineering attacks (including phishing attacks) or other information security breaches could result in unauthorized disclosure or misappropriation of the Company’s confidential information. These threats also may be further enhanced in frequency or effectiveness through threat actors’ use of artificial intelligence.
Removed
On December 24, 2020, the U.K. and the E.U. agreed to a trade and cooperation agreement (the “Trade and Cooperation Agreement”), which took effect on January 1, 2021 and provided for, among other things, zero-rate tariffs and zero quotas on the movement of goods between the U.K. and the E.U.
Added
The Company’s results of operations, cash flows and financial position or the Company’s ability to execute its short- and long-term business strategies and initiatives could be impacted by a reemergence of COVID-19 or another pandemic event.
Removed
The long-term effects of Brexit will depend on the implementation of the Trade and Cooperation Agreement and any future agreements (or lack thereof) between the U.K. and the E.U. and, in particular, any potential changes in the arrangements for the U.K. to retain access to E.U. markets.
Removed
Brexit could result in adverse economic effects across the U.K. and Europe, which could, in turn, adversely affect the Company’s business, results of operations, financial condition and cash flows. 11 Crown Holdings, Inc. Risks Relating to the Company's Indebtedness and Liquidity The substantial indebtedness of the Company could prevent it from fulfilling its obligations under its debt agreements.
Removed
Changes in 12 Crown Holdings, Inc. economic conditions could result in higher interest rates, thereby increasing the Company's interest expense and reducing funds available for operations or other purposes. The Company's annual interest expense was $284 million, $253 million and $290 million for 2022, 2021 and 2020, respectively.
Removed
Proceedings with respect to this matter are ongoing and the Company is unable to predict the ultimate outcome including the amount of fines, if any, that may be levied by the FCA. The Company intends to vigorously defend against the allegations in the statement of objections.
Removed
In 1963, Crown Cork acquired a subsidiary that had two operating businesses, one of which is alleged to have 15 Crown Holdings, Inc. manufactured asbestos-containing insulation products. Crown Cork believes that the business ceased manufacturing such products in 1963.
Removed
Domestic and international, federal, state, municipal or other regulatory authorities could further restrict or prohibit the use of bisphenol-A in the future.
Removed
The pandemic, as well as the quarantines, travel restrictions, “work from home” orders, mask requirements, and other governmental and non-governmental restrictions which have been imposed throughout the world in an effort to contain, mitigate, or vaccinate against COVID-19 (and the controversies prompted by such restrictions in some regions), has created significant volatility, uncertainty and economic disruption that has adversely affected, and may in the future adversely affect, the Company’s results of operations, cash flows and financial position or the Company’s ability to execute its short- and long-term business strategies and initiatives.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAmericas Beverage European Beverage Asia Pacific Transit Packaging Other Kankakee, IL Custines, France Phnom Penh, Cambodia (2) Rainbow City, AL Virton, Belgium Norwalk, CT (T) Bowling Green, KY Korinthos, Greece Sihanoukville, Cambodia Benton, AR Kardjali, Bulgaria Dubuque, IA (F) Mankato, MN Patras, Greece Hangzhou, China Fordyce, AR Noerresundby, Denmark Alsip, IL (A) Batesville, MS Parma, Italy Henan, China (S) Sheridan, AR Soenderborg, Denmark Decatur, IL (A) Nichols, NY Amman, Jordan Heshan, China Phoenix, AZ Liljendal, Finland Belcamp, MD (S) Dayton, OH Goleniow, Poland Huizhou, China (S) Bay Point, CA Masku, Finland Faribault, MN (A) Cheraw, SC Dammam, Saudi Arabia Qingdao Chengyan, China (S) Stockton, CA Castelsarrasin, France Owatonna, MN (F) Conroe, TX Jeddah, Saudi Arabia Shanghai, China (S) Denver, CO Fontaine les Luxeuil, Massillon, OH (F) Fort Bend, TX Kosice, Slovakia Tianjin, China (S) Carrollton, GA France Mill Park, OH (F) Martinsville, VA Agoncillo, Spain Tongxiang, China (S) Douglasville, GA Manneville sur Risle, Connellsville, PA (F) Winchester, VA Sevilla, Spain Ziyang, China LaGrange, GA France Hanover, PA (F) Olympia, WA Valencia, Spain Karawang, Indonesia Macon, GA Tournus, France Trevose, PA (T) La Crosse, WI El Agba, Tunisia Bangi, Malaysia Bridgeview, IL Dinslaken, Germany Spartanburg, SC (A) Worland, WY Izmit, Turkey Yangon, Myanmar Dixmoor, IL Goldkronach, Germany Suffolk, VA (F) Cabreuva, Brazil Osmaniye, Turkey Singapore Kankakee, IL (2) Hilden, Germany Chippewa Falls, WI (T) Teresina, Brazil Dubai, UAE Singapore (S) Roselle, IL Neunkirchen, Germany Oshkosh, WI (F) Estancia, Brazil Botcherby, U.K.
Biggest changeAmericas Beverage European Beverage Asia Pacific Transit Packaging Other Kankakee, IL Custines, France Phnom Penh, Cambodia (2) Rainbow City, AL Toluca, Mexico Norwalk, CT (T) Bowling Green, KY Saarlouis, Germany Sihanoukville, Cambodia Benton, AR Virton, Belgium Dubuque, IA (F) Mankato, MN Korinthos, Greece Hangzhou, China Fordyce, AR Kardjali, Bulgaria Alsip, IL (A) Batesville, MS Parma, Italy Henan, China (S) Sheridan, AR Noerresundby, Denmark Decatur, IL (A) Mesquite, NV Amman, Jordan Heshan, China Phoenix, AZ Soenderborg, Denmark (2) Belcamp, MD (S) Nichols, NY Dammam, Saudi Arabia Huizhou, China (S) Bay Point, CA Liljendal, Finland Faribault, MN (A) Dayton, OH Jeddah, Saudi Arabia Qingdao Chengyan, China (S) Stockton, CA Masku, Finland Owatonna, MN (F) Cheraw, SC Kosice, Slovakia Shanghai, China (S) Carrollton, GA Castelsarrasin, France Massillon, OH (F) Conroe, TX Agoncillo, Spain Tianjin, China (S) Douglasville, GA Fontaine les Luxeuil, Mill Park, OH (F) Fort Bend, TX Sevilla, Spain Ziyang, China LaGrange, GA France Connellsville, PA (F) Martinsville, VA Valencia, Spain Karawang, Indonesia Macon, GA Manneville sur Risle, Hanover, PA (F) Winchester, VA El Agba, Tunisia Bangi, Malaysia Bridgeview, IL France Trevose, PA (T) Olympia, WA Izmit, Turkey Yangon, Myanmar Dixmoor, IL Dinslaken, Germany Spartanburg, SC (A) La Crosse, WI Osmaniye, Turkey Singapore Kankakee, IL (2) Goldkronach, Germany Suffolk, VA (F) Worland, WY Dubai, UAE Singapore (S) Roselle, IL Hilden, Germany Chippewa Falls, WI (T) Cabreuva, Brazil Botcherby, U.K.
In addition, the Company may from time to time acquire additional facilities or dispose of existing facilities. The Company’s Americas, Transit Packaging and Corporate headquarters are in Tampa, Florida. Its European headquarters is in Baar, Switzerland and its Asia Pacific headquarters is in Singapore. The Company maintains a research facility in Wantage, England. 21 Crown Holdings, Inc.
In addition, the Company may from time to time acquire additional facilities or dispose of existing facilities. The Company’s Americas, Transit Packaging and Corporate headquarters are in Tampa, Florida. Its European headquarters is in Baar, Switzerland and its Asia Pacific headquarters is in Singapore. The Company maintains a research facility in Wantage, England. 22 Crown Holdings, Inc.
Therefore, the type of construction may vary from plant to plant. Warehouse space is generally provided at each of the manufacturing locations, although the Company also leases outside warehouses. The Company leased 69 of its manufacturing facilities at December 31, 2022.
Therefore, the type of construction may vary from plant to plant. Warehouse space is generally provided at each of the manufacturing locations, although the Company also leases outside warehouses. The Company leased 65 of its manufacturing facilities at December 31, 2023.
(2) San Antonio, TX Derrimut, Australia Danville, VA Kurri Kurri, Australia Forest, VA Bangalore, India (4) Martinsville, VA Dahej, India Rustburg, VA Rudrapur, India Woodland, WA Rudraram, India Cabreuva, Brazil Silvassa, India Halton Hills, Canada Pohang, South Korea Amatlan de los Reyes, Rayong, Thailand Mexico Sriracha, Thailand (2) Cienega de Flores, Mexico Toluca, Mexico All properties above are beverage facilities unless otherwise indicated by the following: A: Aerosol F: Food and closure P: Promotional packaging S: Specialty packaging T: Tooling and equipment 22 Crown Holdings, Inc.
(2) San Antonio, TX Derrimut, Australia Danville, VA Kurri Kurri, Australia Forest, VA Qingdao, China Martinsville, VA Bangalore, India (4) Rustburg, VA Dahej, India Woodland, WA Rudrapur, India Cabreuva, Brazil Rudraram, India Halton Hills, Silvassa, India Canada (2) Pohang, South Korea Amatlan de los Reyes, Sriracha, Thailand Mexico Cienega de Flores, Mexico All properties above, with the exception of Transit Packaging, are beverage facilities unless otherwise indicated by the following: A: Aerosol F: Food and closure P: Promotional packaging S: Specialty packaging T: Tooling and equipment 23 Crown Holdings, Inc.
Calgary, Canada Songkhla, Thailand (F) Eden, NC Heerlen, Netherlands Ontario, Canada Danang, Vietnam Salisbury, NC Nuenen, Netherlands Santafe de Bogota, Dong Nai, Vietnam (2) Newark, NJ Zwijndrecht, Netherlands Colombia Hanoi, Vietnam Cleveland, OH Kosice, Slovakia Acayucan, Mexico Ho Chi Minh City, Vietnam Loveland, OH Burseryd, Sweden Chihuahua, Mexico Vung Tau, Vietnam West Chester, OH Hjo, Sweden Ensenada, Mexico Elizabethtown, PA Sandared, Sweden Guadalajara, Mexico Hazleton, PA Ystad, Sweden Monterrey, Mexico (2) Imperial, PA Dietikon, Switzerland (2) Orizaba, Mexico East Providence, RI Merenschwand, Switzerland Toluca, Mexico Darlington, SC Izmir, Turkey Greer, SC Kocaeli, Turkey Latta, SC Dudley, U.K.
Uberaba, Brazil Danang, Vietnam Salisbury, NC Heerlen, Netherlands Calgary, Canada Dong Nai, Vietnam (2) Newark, NJ Nuenen, Netherlands Ontario, Canada Hanoi, Vietnam Cleveland, OH Zwijndrecht, Netherlands Santafe de Bogota, Vung Tau, Vietnam Loveland, OH Kosice, Slovakia Colombia West Chester, OH Burseryd, Sweden Acayucan, Mexico Elizabethtown, PA Hjo, Sweden Chihuahua, Mexico Hazleton, PA Sandared, Sweden Ensenada, Mexico Imperial, PA Ystad, Sweden Guadalajara, Mexico South Canaan, PA Dietikon, Switzerland (2) Monterrey, Mexico (2) East Providence, RI Merenschwand, Switzerland Orizaba, Mexico Darlington, SC Izmir, Turkey Toluca, Mexico Greer, SC Kocaeli, Turkey Latta, SC Dudley, U.K.
ITEM 2. PROPERTIES As of December 31, 2022, the Company operated 199 facilities in 40 countries. The principal manufacturing facilities at December 31, 2022 are listed below and are grouped by reportable segment. The Company’s manufacturing and support facilities are designed according to the requirements of the products to be manufactured.
ITEM 2. PROPERTIES As of December 31, 2023, the Company operated 195 facilities in 39 countries. The principal manufacturing facilities at December 31, 2023 are listed below and are grouped by segment. The Company’s manufacturing and support facilities are designed according to the requirements of the products to be manufactured.
Bangpoo, Thailand (F) Elkhart, IN Nurnberg, Germany Kingston, Jamaica (F) Manaus, Brazil Braunstone, U.K. Hat Yai, Thailand (F) Gary, IN Weischlitz, Germany La Villa, Mexico (F) Ponta Grossa, Brazil Nakhon Pathom, Thailand (F) Florence, KY Gorey, Ireland Barbados, West Indies (F) Rio Verde, Brazil Nong Khae, Thailand (2) Monroe, LA Waterford, Ireland Shipley, U.K.
Hat Yai, Thailand (F) Gary, IN Nurnberg, Germany Kingston, Jamaica (F) Estancia, Brazil Nakhon Pathom, Thailand (F) Florence, KY Weischlitz, Germany La Villa, Mexico (F) Manaus, Brazil Nong Khae, Thailand (2) Monroe, LA Gorey, Ireland Barbados, West Indies (F) Ponta Grossa, Brazil Samrong, Thailand (F) Brighton, MI Waterford, Ireland Shipley, U.K.
(T), (3) Uberaba, Brazil Samrong, Thailand (F) Brighton, MI Nairobi, Kenya Wortley, U.K.
(T) Rio Verde, Brazil Songkhla, Thailand (F) Eden, NC Nairobi, Kenya Wortley, U.K.
Added
Bangpoo, Thailand (F) Elkhart, IN Neunkirchen, Germany Oshkosh, WI (F) Teresina, Brazil Peterborough, U.K.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed3 unchanged
Biggest changeApproximately ninety days after the stock purchase, this U.S. company sold its insulation assets and was later merged into Crown Cork. At December 31, 2022, the accrual for pending and future asbestos claims and related legal costs that are probable and estimable was $220 million.
Biggest changeApproximately ninety days after the stock purchase, this U.S. company sold its insulation assets and was later merged into Crown Cork. At December 31, 2023, the accrual for pending and future asbestos claims and related legal costs that are probable and estimable was $204 million.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Registrant’s common stock is listed on the New York Stock Exchange under ticker symbol CCK. On February 24, 2023 there were 3,480 registered shareholders of the Registrant’s common stock, including 832 participants in the Company’s Employee Stock Purchase Plan.
Biggest changeITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Registrant’s common stock is listed on the New York Stock Exchange under ticker symbol CCK.
Information with respect to shares of common stock that may be issued under the Company’s equity compensation plans is set forth in “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” of this Annual Report. Issuer Purchases of Equity Securities There were no purchases of equity securities during the three months ending December 31, 2022.
Information with respect to shares of common stock that may be issued under the Company’s equity compensation plans is set forth in “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” of this Annual Report. Issuer Purchases of Equity Securities There were no purchases of equity securities during the three months ending December 31, 2023.
In December 2021, the Company's Board of Directors authorized the repurchase of an aggregate amount of $3.0 billion of Company common stock through the end of 2024. As of December 31, 2022, the Company could still purchase $2.3 billion of the Company common stock through this program.
In December 2021, the Company's Board of Directors authorized the repurchase of an aggregate amount of $3.0 billion of Company common stock through the end of 2024. As of December 31, 2023, the Company could still purchase $2.3 billion of the Company common stock through this program.
The foregoing information regarding the number of registered shareholders of common stock does not include persons holding stock through clearinghouse systems. Details regarding the Company’s policy as to payment of cash dividends and repurchase of shares are set forth under Note T to the consolidated financial statements included in this Annual Report.
On February 26, 2024 there were 3,417 registered shareholders of the Registrant’s common stock, including 858 shareholders of common stock does not include persons holding stock through clearinghouse systems. Details regarding the Company’s policy as to payment of cash dividends and repurchase of shares are set forth under Note T to the consolidated financial statements included in this Annual Report.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

5 edited+0 added−0 removed0 unchanged
Biggest changeContainers & Packaging Index (c) December 31, 2017 2018 2019 2020 2021 2022 Crown Holdings $ 100 $ 74 $ 129 $ 178 $ 198 $ 149 S&P 500 Index 100 96 126 149 192 157 Dow Jones U.S.
Biggest changeContainers & Packaging Index (c) December 31, 2018 2019 2020 2021 2022 2023 Crown Holdings $ 100 $ 175 $ 241 $ 268 $ 201 $ 228 S&P 500 Index 100 131 156 200 164 207 Dow Jones U.S.
ITEM 6. [RESERVED] 23 Crown Holdings, Inc. COMPARATIVE STOCK PERFORMANCE (a) Comparison of Five-Year Cumulative Total Return (b) Crown Holdings, S&P 500 Index, Dow Jones U.S.
ITEM 6. [RESERVED] 24 Crown Holdings, Inc. COMPARATIVE STOCK PERFORMANCE (a) Comparison of Five-Year Cumulative Total Return (b) Crown Holdings, S&P 500 Index, Dow Jones U.S.
(b) Assumes that the value of the investment in Crown Holdings common stock and each index was $100 on December 31, 2017 and that all dividends were reinvested.
(b) Assumes that the value of the investment in Crown Holdings common stock and each index was $100 on December 31, 2018 and that all dividends were reinvested.
(c) Industry index is weighted by market capitalization and, as of December 31, 2022, was composed of Crown Holdings, Amcor, AptarGroup, Avery Dennison, Ball, Berry Global, Graphic Packaging, International Paper, Packaging Corp. of America, Sealed Air, Silgan, Sonoco and WestRock. 24 Crown Holdings, Inc.
(c) Industry index is weighted by market capitalization and, as of December 31, 2023, was composed of Crown Holdings, Amcor, AptarGroup, Avery Dennison, Ball, Berry Global, Graphic Packaging, International Paper, Packaging Corp. of America, Sealed Air, Silgan, Sonoco and WestRock. 25 Crown Holdings, Inc.
Containers & Packaging Index 100 82 105 127 141 116 (a) The preceding Comparative Stock Performance Graph is not deemed filed with the SEC and shall not be incorporated by reference in any of the Company's filings under the Security Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.
Containers & Packaging Index 100 129 156 173 142 153 (a) The preceding Comparative Stock Performance Graph is not deemed filed with the SEC and shall not be incorporated by reference in any of the Company's filings under the Security Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

99 edited+41 added−25 removed63 unchanged
Biggest changeImportant factors that could cause the actual results of operations or financial condition of the Company to differ include, but are not necessarily limited to, the ability of the Company to expand successfully in international and emerging markets; the ability of the Company to repay, refinance or restructure its short and long-term indebtedness on adequate terms and to comply with the terms of its agreements relating to debt; the impact of Brexit; the Company’s ability to generate significant cash to meet its obligations and invest in its business and to maintain appropriate debt levels; restrictions on the Company’s use of available cash under its debt agreements; changes or differences in U.S. or international economic or political conditions, such as inflation or fluctuations in interest or foreign exchange rates (and the effectiveness of any currency or interest rate hedges), tax rates, and applicable tax laws (including with respect to taxation of unrepatriated non-U.S. earnings or as a result of the depletion of net loss or foreign tax credit carryforwards); the impact of foreign trade laws and practices; the collectability of receivables; war or acts of terrorism that may disrupt the Company’s production or the supply or pricing of raw materials impact the financial condition of customers or adversely affect the Company’s ability to refinance or restructure its remaining indebtedness; changes in the availability and pricing of raw materials (including aluminum can sheet, steel tinplate, energy, water, inks and coatings) and the Company’s ability to pass raw material, energy and freight price increases and surcharges through to its customers or to otherwise manage these commodity pricing risks; the Company’s ability to obtain and maintain adequate pricing for its products, including the impact on the Company’s revenue, margins and market share and the ongoing impact of price increases; energy and natural resource costs; the cost and other effects of legal and administrative cases and proceedings, settlements and investigations; the outcome of asbestos-related litigation (including the number and size of future claims and the terms of settlements, and the impact of bankruptcy filings by other companies with asbestos-related liabilities, any of which could increase Crown Cork’s asbestos-related costs over time, the adequacy of reserves established for asbestos-related liabilities, Crown Cork’s ability to obtain resolution without payment of asbestos-related claims by persons alleging first exposure to asbestos after 1964, and the impact of state legislation dealing with asbestos liabilities and any litigation challenging that legislation and any future state or federal legislation dealing with asbestos liabilities); the Company’s ability to realize deferred tax benefits; changes in the Company’s critical or other accounting policies or the assumptions underlying those policies; labor relations and workforce and social costs, including the Company’s pension and postretirement obligations and other employee or retiree costs; investment performance of the Company’s pension plans; costs and difficulties related to the acquisition of a business and integration of acquired businesses; the impact of any actual or potential dispositions, acquisitions or other strategic realignments (such as the Company's recently completed divestiture of its European Tinplate business), which may impact the Company’s operations, financial profile, investments or levels of indebtedness; the Company’s ability to realize efficient capacity utilization and inventory levels and to innovate new designs and technologies for its products in a cost-effective manner; competitive pressures, including new product developments, industry overcapacity, or changes in competitors’ pricing for products; the Company’s ability to achieve high capacity utilization rates for its equipment; the Company’s ability to maintain, develop and capitalize on competitive technologies for the design and manufacture of products and to withstand competitive and legal challenges to the proprietary nature of such technology; the Company’s ability to protect its information technology systems from attacks or catastrophic failure; the strength of the Company’s cyber-security (including with respect to human vulnerabilities associated with cyber-security risks); the Company’s ability to generate sufficient production capacity; the Company’s ability to improve and expand its existing product and product lines; the impact of 39 Crown Holdings, Inc. overcapacity on the end-markets the Company serves; loss of customers, including the loss of any significant customers; changes in consumer preferences for different packaging products; the financial condition of the Company’s vendors and customers; weather conditions, including their effect on demand for beverages and on crop yields for fruits and vegetables stored in food containers; the impact of natural disasters, including in emerging markets; the impact of the COVID-19 pandemic, as well as the quarantines and other governmental and non-governmental restrictions which have been imposed throughout the world in an effort to contain, mitigate, or vaccinate against it; changes in governmental regulations or enforcement practices, including with respect to environmental, health and safety matters and restrictions as to foreign investment or operation; the impact of increased governmental regulation on the Company and its products, including the regulation or restriction of the use of bisphenol-A; the impact of the Company’s recent initiatives to generate additional cash, including the reduction of working capital levels and capital spending; the impact of the Company's comprehensive Board-led review of its portfolio and capital allocation/return; the ability of the Company to realize cost savings from its restructuring programs; the Company’s ability to maintain adequate sources of capital and liquidity; costs and payments to certain of the Company’s executive officers in connection with any termination of such executive officers or a change in control of the Company; the impact of existing and future legislation regarding refundable mandatory deposit laws in Europe for non-refillable beverage containers and the implementation of an effective return system; the impact of existing and future legislation regarding the taxation of sugar-sweetened beverages or energy drinks, the impact of tariffs and potential limits on steel supply in the U.S. from certain foreign countries; and changes in the Company’s strategic areas of focus, which may impact the Company’s operations, financial profile or levels of indebtedness.
Biggest changeImportant factors that could cause the actual results of operations or financial condition of the Company to differ include, but are not necessarily limited to, the ability of the Company to expand successfully in international and emerging markets; the ability of the Company to repay, refinance or restructure its short and long-term indebtedness on adequate terms and to comply with the terms of its agreements relating to debt; the impact of Brexit; the Company’s ability to generate significant cash to meet its obligations and invest in its business and to maintain appropriate debt levels; restrictions on the Company’s use of available cash under its debt agreements; changes or differences in U.S. or international economic or political conditions, such as inflation or fluctuations in interest or foreign exchange rates (and the effectiveness of any currency or interest rate hedges), tax rates, and applicable tax laws (including with respect to taxation of unrepatriated non-U.S. earnings or as a result of the depletion of net loss or foreign tax credit carryforwards); the impact of foreign trade laws and practices; the collectability of receivables; war or acts of terrorism that may disrupt the Company’s production or the supply or pricing of raw materials impact the financial condition of customers or adversely affect the Company’s ability to refinance or restructure its remaining indebtedness; changes in the availability and pricing of raw materials (including aluminum can sheet, steel tinplate, energy, water, inks and coatings) and the Company’s ability to pass raw material, energy and freight price increases and surcharges through to its customers or to otherwise manage these commodity pricing risks; the Company’s ability to obtain and maintain adequate pricing for its products, including the impact on the Company’s revenue, margins and market share and the ongoing impact of price increases; energy and natural resource costs; the cost and other effects of legal and administrative cases and proceedings, settlements and investigations; the outcome of asbestos-related litigation; the Company’s ability to realize deferred tax benefits; changes in the Company’s critical or other accounting policies or the assumptions underlying those policies; labor relations and workforce and social costs, including the Company’s pension and postretirement obligations and other employee or retiree costs; investment performance of the Company’s pension plans; costs and difficulties related to the acquisition of a business and integration of acquired businesses; the impact of any actual or potential dispositions, acquisitions or other strategic realignments (such as the Company's recently completed divestiture of its European Tinplate business), which may impact the Company’s operations, financial profile, investments or levels of indebtedness; the Company’s ability to realize efficient capacity utilization and inventory levels and to innovate new designs and technologies for its products in a cost-effective manner; competitive pressures, including new product developments, industry overcapacity, or changes in competitors’ pricing for products; the Company’s ability to achieve high capacity utilization rates for its equipment; the Company’s ability to maintain, develop and capitalize on competitive technologies for the design and manufacture of products and to withstand competitive and legal challenges to the proprietary nature of such technology; the Company’s ability to protect its information technology systems from attacks or catastrophic failure; the strength of the Company’s cyber-security (including with respect to human vulnerabilities associated with cyber-security risks); the Company’s ability to generate sufficient production capacity; the Company’s ability to improve and expand its existing product and product lines; the impact of overcapacity on the end-markets the Company serves; loss of customers, including the loss of any significant customers; changes in consumer preferences for different packaging products; the financial condition of the Company’s vendors and customers; weather conditions, including their effect on demand for beverages and on crop yields for fruits and vegetables stored in food containers; the impact of natural disasters, including in emerging markets; the impact of the COVID-19 pandemic, as well as the quarantines and other governmental and non-governmental restrictions which have been imposed throughout the world in an effort to contain, mitigate, or vaccinate against it; changes in governmental regulations or enforcement practices, including with respect to environmental, health and safety matters and restrictions as to foreign investment or operation; the impact of increased governmental regulation on the Company and its products, including the regulation or restriction of the use of bisphenol-A; the impact of the Company’s recent initiatives to generate additional cash, including the reduction of working capital levels and capital spending; the impact of the Company's comprehensive Board-led review of its portfolio and capital allocation/return; the ability of the Company to realize cost savings from its restructuring programs; the Company’s ability to maintain adequate sources of capital and liquidity; costs and payments to certain of the Company’s executive officers in connection with any termination of such executive officers or a change in control of the Company; the impact of existing and future legislation regarding refundable mandatory deposit laws in Europe for non-refillable beverage containers and the implementation of an effective return system; the impact of existing and future legislation regarding the taxation of sugar- 41 Crown Holdings, Inc. sweetened beverages or energy drinks, the impact of tariffs and potential limits on steel supply in the U.S. from certain foreign countries; and changes in the Company’s strategic areas of focus, which may impact the Company’s operations, financial profile or levels of indebtedness.
The Company continues to actively manage the challenges of supply chain disruptions, foreign exchange and interest rate fluctuations and inflationary pressures, including increasing costs for raw materials, energy and transportation. The Company generally attempts to mitigate aluminum and steel price risk by matching its purchase obligations with its sales agreements.
The Company continues to actively manage the challenges of supply chain disruptions, foreign exchange, interest rate fluctuations, and inflationary pressures, including increasing costs for raw materials, energy and transportation. The Company generally attempts to mitigate aluminum and steel price risk by matching its purchase obligations with its sales agreements.
EQUITY IN NET EARNINGS OF AFFILIATES Equity in net earnings of affiliates increased from $3 in 2021 to $42 in 2022 due to the 20% ownership interest received after the sale of the Company's European Tinplate business in August 2021.
Equity in net earnings of affiliates increased from $3 in 2021 to $42 in 2022 due to the 20% ownership interest received after the sale of the Company's European Tinplate business in August 2021.
CRITICAL ACCOUNTING POLICIES The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America which require that management make numerous estimates and assumptions. Actual results could differ from those estimates and assumptions, impacting the reported results of operations and financial position of the Company.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America which require that management make numerous estimates and assumptions. Actual results could differ from those estimates and assumptions, impacting the reported results of operations and financial position of the Company.
In certain jurisdictions, government securities were used along with corporate bonds to develop country-specific yield curves to the extent that the underlying markets were not deemed sufficiently developed. A 0.50% change in the discount rates from those used at December 31, 2022 would change 2023 pension expense by approximately $3 and postretirement expense by less than $1.
In certain jurisdictions, government securities were used along with corporate bonds to develop country-specific yield curves to the extent that the underlying markets were not deemed sufficiently developed. A 0.50% change in the discount rates from those used at December 31, 2023 would change 2024 pension expense by approximately $3 and postretirement expense by less than $1.
The U.S. and Canadian beverage can markets have experienced recent growth due to the introduction of new beverage products in cans versus other packaging formats.
The U.S. and Canadian beverage can markets have experienced growth in recent years due to the introduction of new beverage products in cans versus other packaging formats.
The discount rate used is based on the average weighted-average cost of capital of companies in the consumer and industrial packaging industries, which information is available through various sources, adjusted for specific risk premiums for each reporting unit. The Company completed its annual review for 2022 and determined that no adjustments to the carrying value of goodwill were necessary.
The discount rate used is based on the average weighted-average cost of capital of companies in the consumer and industrial packaging industries, which information is available through various sources, adjusted for specific risk premiums for each reporting unit. The Company completed its annual review for 2023 and determined that no adjustments to the carrying value of goodwill were necessary.
Foreign exchange contracts generally mature within twelve months. The table below provides information in U.S. dollars as of December 31, 2022 about the Company’s forward currency exchange contracts. The contracts primarily hedge anticipated transactions, unrecognized firm commitments and intercompany debt. The contracts with no amounts in the fair value column have a fair value of less than $1.
Foreign exchange contracts generally mature within twelve months. The table below provides information in U.S. dollars as of December 31, 2023 about the Company’s forward currency exchange contracts. The contracts primarily hedge anticipated transactions, unrecognized firm commitments and intercompany debt. The contracts with no amounts in the fair value column have a fair value of less than $1.
Segment income decreased primarily due to energy costs in excess of contractual pass-through provisions, a mismatch in contractual aluminum pass-through provisions whereby higher cost inventory was sold at lower prices and $7 from the impact of unfavorable foreign currency translation partially offset by higher sales unit volumes.
Segment income decreased primarily due to energy costs in excess of contractual pass-through provisions, a mismatch in contractual aluminum pass-through provisions whereby higher cost inventory was sold at lower prices and $7 from the impact of unfavorable foreign currency translation, partially offset by higher volumes.
The aggregate fair value of these contracts was a loss of $1. At December 31, 2022, the Company had cross-currency swaps with an aggregate notional values of $875. The swaps are designated as hedges of the Company's net investment in a euro-based subsidiary and mature in 2026.
The aggregate fair value of these contracts was a loss of $1. At December 31, 2023, the Company had cross-currency swaps with an aggregate notional values of $875. The swaps are designated as hedges of the Company's net investment in a euro-based subsidiary and mature in 2026.
Segment income decreased primarily due to lower sales unit volumes, $20 from the impact of unfavorable foreign currency translation and $8 from the divestiture of the segment's Kiwiplan business, partially offset by inflationary price increases in the protective solutions business and costs savings from headcount reductions across the business.
Segment income decreased primarily due to lower volumes, $20 from the impact of unfavorable foreign currency translation and $8 from the divestiture of the segment's Kiwiplan business, partially offset by inflationary price increases in the protective solutions business and costs savings from headcount reductions across the business.
A guarantee of a guarantor other than the Parent will be unconditionally released and discharged upon any of the following: • any transfer (including, without limitation, by way of consolidation or merger) by the Parent or any subsidiary of the Parent to any person or entity that is not the Parent or a subsidiary of the Parent of (1) all of the equity interests of, or all or substantially all of the properties and assets of, such guarantor; or (2) equity interests of such guarantor or any issuance by such guarantor of its equity interests, such that such guarantor ceases to be a subsidiary of the Parent; provided that such guarantor is also released from all of its obligations in respect of indebtedness under the Company’s senior secured credit facilities; • the release of such guarantor from all obligations of such guarantor in respect of indebtedness under the Company’s senior secured credit facilities, except to the extent such guarantor is otherwise required to provide a guarantee; or • upon the contemporaneous release or discharge of all guarantees by such guarantor which would have required such guarantor to provide a guarantee under the applicable indenture.
A guarantee of a guarantor other than the Parent will be unconditionally released and discharged upon any of the following: • any transfer (including, without limitation, by way of consolidation or merger) by the Parent or any subsidiary of the Parent to any person or entity that is not the Parent or a subsidiary of the Parent of (1) all of the equity interests of, or all or substantially all of the properties and assets of, such guarantor; or (2) equity interests of such guarantor or any issuance by such guarantor of its equity interests, such that such guarantor ceases to be a subsidiary of the Parent; provided that such guarantor is also released from all of its obligations in respect of indebtedness under the Company’s senior secured credit facilities; • the release of such guarantor from all obligations of such guarantor in respect of indebtedness under the Company’s senior secured credit facilities, except to the extent such guarantor is otherwise required to provide a guarantee; or • upon the contemporaneous release or discharge of all guarantees by such guarantor which would have required such guarantor to provide a guarantee under the applicable indenture. 34 Crown Holdings, Inc.
Additionally, the Company attempts to mitigate inflationary pressures on energy and raw material costs with contractual pass-through provisions that include annual selling price adjustments based on price indexes. The Company also uses commodity forward contracts to manage its exposure to raw material costs.
Additionally, the Company attempts to mitigate inflationary pressures on energy and raw material costs with contractual pass-through provisions that include annual selling price adjustments based on price indices. The Company also uses commodity forward contracts to manage its exposure to raw material costs.
(the "Company") as of and during the three-year period ended December 31, 2022. This discussion should be read in conjunction with the consolidated financial statements included in this Annual Report.
(the "Company") as of and during the three-year period ended December 31, 2023. This discussion should be read in conjunction with the consolidated financial statements included in this Annual Report.
The aluminum pass-through provisions are impacted by higher than normal inventory levels due to supply chain concerns and lower than expected volumes, and price volatility in the aluminum market.
The aluminum pass-through provisions were impacted by higher than normal inventory levels due to supply chain concerns and lower than expected volumes, and price volatility in the aluminum market.
The senior notes and guarantees are senior unsecured obligations of the issuers and the guarantors, and are: 32 Crown Holdings, Inc. • effectively subordinated to all existing and future secured indebtedness of the issuers and the guarantors to the extent of the value of the assets securing such indebtedness, including any borrowings under the Company’s senior secured credit facilities, to the extent of the value of the assets securing such indebtedness; • structurally subordinated to all indebtedness of the Company’s non-guarantor subsidiaries, which include all of the Company’s foreign subsidiaries and any U.S. subsidiaries that are neither obligors nor guarantors of the Company’s senior secured credit facilities; • ranked equal in right of payment to any existing or future senior indebtedness of the issuers and the guarantors; and • ranked senior in right of payment to all existing and future subordinated indebtedness of the issuers and the guarantors.
The senior notes and guarantees are senior unsecured obligations of the issuers and the guarantors, and are: • effectively subordinated to all existing and future secured indebtedness of the issuers and the guarantors to the extent of the value of the assets securing such indebtedness, including any borrowings under the Company’s senior secured credit facilities, to the extent of the value of the assets securing such indebtedness; • structurally subordinated to all indebtedness of the Company’s non-guarantor subsidiaries, which include all of the Company’s foreign subsidiaries and any U.S. subsidiaries that are neither obligors nor guarantors of the Company’s senior secured credit facilities; • ranked equal in right of payment to any existing or future senior indebtedness of the issuers and the guarantors; and • ranked senior in right of payment to all existing and future subordinated indebtedness of the issuers and the guarantors.
An increase of 10% in the number of years used to amortize unrecognized losses in each plan would decrease estimated charges for 2023 by $4. A decrease of 10% in the number of years would increase the estimated 2023 charge by $5.
An increase of 10% in the number of years used to amortize unrecognized losses in each plan would decrease estimated charges for 2024 by $4. A decrease of 10% in the number of years would increase the estimated 2024 charge by $5.
In addition, the Company and its representatives may from time to time make other oral or written statements which are also “forward-looking statements.” Forward-looking statements can be identified by words, such as “believes,” “estimates,” “anticipates,” “expects” and other words of similar meaning in connection with a discussion of future operating or financial performance.
In addition, the Company and its representatives may from time to time make other oral or written statements which are also “forward-looking statements.” Forward-looking statements can be identified by 40 Crown Holdings, Inc. words, such as “believes,” “estimates,” “anticipates,” “expects” and other words of similar meaning in connection with a discussion of future operating or financial performance.
The extent to which the Company uses such instruments is dependent upon its access to them in the financial markets and its use of other methods, such as netting exposures for foreign exchange risk and establishing sales arrangements that permit the pass-through 34 Crown Holdings, Inc. to customers of changes in commodity prices and foreign exchange rates, to effectively achieve its goal of risk reduction.
The extent to which the Company uses such instruments is dependent upon its access to them in the financial markets and its use of other methods, such as netting exposures for foreign exchange risk and establishing sales arrangements that permit the pass-through to customers of changes in commodity prices and foreign exchange rates, to effectively achieve its goal of risk reduction.
Actual results may differ from the Company’s actuarial assumptions, which may have an impact on the amount of reported expense or liability for pensions or postretirement benefits. The Company recorded pension expense of $25 in 2022 and currently projects its 2023 pension expense to be $56, using foreign currency exchange rates in effect at December 31, 2022.
Actual results may differ from the Company’s actuarial assumptions, which may have an impact on the amount of reported expense or liability for pensions or postretirement benefits. The Company recorded pension expense of $64 in 2023 and currently projects its 2024 pension expense to be $56, using foreign currency exchange rates in effect at December 31, 2023.
The Company’s total net leverage ratio of 3.3 to 1.0 at December 31, 2022 was in compliance with the covenant requiring a ratio no greater than 5.0 to 1.0. The ratio is calculated at the end of each quarter using debt and cash balances as of the end of the quarter and Consolidated EBITDA for the most recent twelve months.
The Company’s total net leverage ratio of 3.16 to 1.0 at December 31, 2023 was in compliance with the covenant requiring a ratio no greater than 4.5 to 1.0. The ratio is calculated at the end of each quarter using debt and cash balances as of the end of the quarter and Consolidated EBITDA for the most recent twelve months.
See the risk factor entitled “The Company is subject to costs and liabilities related to stringent environmental and health and safety standards” in Part I, Item 1A of this Annual Report. See Note P to the consolidated financial statements for additional information on environmental matters including the Company's accrual for environmental remediation costs.
See the risk factor entitled “The Company is subject to costs and liabilities related to stringent environmental and health and safety standards” in Part I, Item 1A of this Annual Report. See Note P to the consolidated financial statements for additional information on environmental matters including the Company's accrual for environmental remediation costs. 37 Crown Holdings, Inc.
A 0.50% change in the discount rates from those used at December 31, 2022 would have changed the pension benefit obligation by approximately $64 and the postretirement benefit obligation by approximately $4 as of December 31, 2022. See Note R to the consolidated financial statements for additional information on pension and postretirement benefit obligations and assumptions.
A 0.50% change in the discount rates from those used at December 31, 2023 would have changed the pension benefit obligation by approximately $66 and the postretirement benefit obligation by approximately $4 as of December 31, 2023. See Note R to the consolidated financial statements for additional information on pension and postretirement benefit obligations and assumptions.
The expected long-term rate of return on plan assets is determined by taking into consideration expected long-term returns associated with each major asset class based on long-term historical ranges, projected future outlook of each asset class, inflation assumptions and the expected net value from active management of the assets based on actual results.
The expected long-term rate of return on plan assets is determined by taking into consideration expected long-term returns associated with each major asset class based on long-term 39 Crown Holdings, Inc. historical ranges, projected future outlook of each asset class, inflation assumptions and the expected net value from active management of the assets based on actual results.
The actual effect of a 0.25% increase in these floating interest rates could be more than $10 million as the Company’s average borrowings on its variable rate debt and securitization and factoring may be higher during the year than the amount at December 31, 2022.
The actual effect of a 0.25% increase in these floating interest rates could be more than $8 million as the Company’s average borrowings on its variable rate debt and securitization and factoring may be higher during the year than the amount at December 31, 2023.
Factors that the Company may consider in its qualitative assessment include, but are not limited to, general economic conditions, changes in the markets in which the Company operates and changes in input costs that may affect revenue growth, gross margin percentages and cash flow trends over multiple periods.
Factors that the Company may consider in its qualitative assessment include, but are not limited to, general economic conditions, changes in the markets in which the Company operates and changes in input costs that may affect revenue growth, gross margin percentages and cash flow trends over multiple periods. 38 Crown Holdings, Inc.
The Company uses various raw materials, such as aluminum and steel in its manufacturing operations, which expose it to risk from adverse fluctuations in commodity prices. In 2022, consumption of aluminum and steel represented 44% and 9% of the Company’s consolidated cost of products sold, excluding depreciation and amortization.
The Company uses various raw materials, such as aluminum and steel in its manufacturing operations, which expose it to risk from adverse fluctuations in commodity prices. In 2023, consumption of aluminum and steel represented 44% and 8% of the Company’s consolidated cost of products sold, excluding depreciation and amortization.
As claims are not submitted or settled evenly throughout 36 Crown Holdings, Inc. the year, it is difficult to predict at any time during the year whether the number of claims or average settlement cost over the five year period ending December 31 of such year will increase compared to the prior five year period.
As claims are not submitted or settled evenly throughout the year, it is difficult to predict at any time during the year whether the number of claims or average settlement cost over the five year period ending December 31 of such year will increase compared to the prior five year period.
The Company's Transit Packaging segment is a global business. The foreign currency translation impacts referred to in the discussion below for Transit Packaging are primarily related to the euro, the Swedish krona and the Indian rupee.
The Company's Transit Packaging segment is a global business and the foreign currency translation impacts referred to in the discussion below are primarily related to the euro, the Swedish krona, the Indian rupee and the Mexican peso.
The Company currently expects interest payments on long-term debt and securitization and factoring in 2023 to be approximately $400. This estimate is based on projected interest rates as of December 31, 2022, long-term debt balances, average borrowings under the revolving credit facility and securitization and factoring estimates.
The Company currently expects interest payments on debt and securitization and factoring in 2024 to be approximately $367. This estimate is based on projected interest rates as of December 31, 2023, long-term debt balances, average borrowings under the revolving credit facility and securitization and factoring estimates.
A 10% decrease in these two factors at the same time would decrease the estimated liability at December 31, 2022 by $42. Goodwill Impairment The Company performs a goodwill impairment review in the fourth quarter of each year or when facts and circumstances indicate goodwill may be impaired.
A 10% decrease in these two factors at the same time would decrease the estimated liability at December 31, 2023 by $39. Goodwill Impairment The Company performs a goodwill impairment review in the fourth quarter of each year or when facts and circumstances indicate goodwill may be impaired.
As of December 31, 2022, the Company had $2.8 billion principal floating interest rate debt and $1.3 billion of securitization and factoring. A change of 0.25% in these floating interest rates would change annual interest expense by approximately $10 million before tax.
As of December 31, 2023, the Company had $2.2 billion principal floating interest rate debt and $1.1 billion of securitization and factoring. A change of 0.25% in these floating interest rates would change annual interest expense by approximately $8 million before tax.
Accordingly, in the event of a bankruptcy, liquidation or reorganization of any of the non-guarantors, the non-guarantors will pay the holders of their debts, holders of preferred equity interests, if any, and their trade creditors before they will be able to distribute any of their assets to the Company or any of the guarantors.
Accordingly, in the event of a bankruptcy, liquidation or reorganization of any of the non-guarantors, the non-guarantors will pay the holders of their debts, 35 Crown Holdings, Inc. holders of preferred equity interests, if any, and their trade creditors before they will be able to distribute any of their assets to the Company or any of the guarantors.
Segment income decreased primarily due to start-up costs and $16 of increased depreciation associated with recent capacity expansions, partially offset by contractual pass-through mechanisms put in place to recover inflation.
Segment income decreased primarily due to start-up costs and $16 of increased depreciation associated with recent capacity expansions, partially offset by contractual pass-through mechanisms put in place to recover inflation. 27 Crown Holdings, Inc.
The Company is not currently aware of any legal restrictions under foreign law that materially impact its access to cash held outside the U.S.
The Company is not currently aware of any legal restrictions under forei gn law that materially impact its access to cash held outside the U.S.
The European Tinplate business comprised the Company's European Food reportable segment and its European Aerosol and Promotional Packaging reporting unit which was previously reported in Other. The Company received pre-tax proceeds of approximately €1.9 billion ($2.3 billion) from the transaction and received a 20% ownership stake in the business.
The European Tinplate business comprised the Company's European Food reportable segment and its European Aerosol and Promotional Packaging business which were previously reported in Other. The Company received pre-tax proceeds of approximately €1.9 billion ($2.3 billion) from the transaction and retained a 20% ownership stake in the business.
As of December 31, 2022, more than 90% of the projected future claims in the Company’s accrual calculation relate to claims alleging serious diseases such as mesothelioma. The five year average settlement cost per claim was $13,100 in 2020, $13,000 in 2021 and $14,300 in 2022.
As of December 31, 2023, more than 90% of the projected future claims in the Company’s accrual calculation relate to claims alleging serious diseases such as mesothelioma. The five year average settlement cost per claim was $13,000 in 2021, $14,300 in 2022 and $15,800 in 2023.
In September 2021, the Company joined The Climate Pledge, a commitment to be net-zero carbon across business operations by 2040. To date the war between Russia and Ukraine has not had a direct material impact on the Company's business, financial condition, or results of operations.
In September 2021, the Company joined The Climate Pledge, a commitment to be net-zero carbon across business operations by 2040. To date the wars between Russia and Ukraine and Israel and Hamas have not had a direct material impact on the Company's business, financial condition, or results of operations.
The Company continues to actively elevate its commitment to sustainability, which is a core value of the Company. In 2020, the Company debuted Twentyby30, a robust program that outlines twenty measurable, science based, environmental, social and governance goals to be completed by 2030 or sooner.
The Company continues to actively elevate its commitment to sustainability, which is a core value of the Company. In 2020, the Company introduced Twenty by 30 , a robust program that outlines twenty measurable, science based, environmental, social and governance goals to be completed by 2030.
The Company’s pension expense for the year ended December 31, 2022 included charges of $49 for the amortization of accumulated net losses, and the Company estimates charges of $46 in 2023.
The Company’s pension expense for the year ended December 31, 2023 included charges of $46 for the amortization of accumulated net losses, and the Company estimates charges of $48 in 2024.
A 10% change in either the average cost per claim or the number of projected claims would increase or decrease the estimated liability at December 31, 2022 by $22. A 10% increase in these two factors at the same time would increase the estimated liability at December 31, 2022 by $46.
A 10% change in either the average cost per claim or the number of projected claims would increase or decrease the estimated liability at December 31, 2023 by $20. A 10% increase in these two factors at the same time would increase the estimated liability at December 31, 2023 by $43.
The Company could have borrowed this amount at December 31, 2022 and still have been in compliance with its leverage ratio covenants.
The Company could have borrowed this amount at December 31, 2023 and still have been in compliance with its leverage ratio covenant.
As of December 31, 2022, the Company had a pre-tax unrecognized net loss in accumulated other comprehensive income of $712 related to its pension plans and a pre-tax unrecognized net gain in accumulated other comprehensive income of $2 related to its other postretirement benefit plans.
As of December 31, 2023, the Company had a pre-tax unrecognized net loss in accumulated other comprehensive income of $686 related to its pension plans and a pre-tax unrecognized net gain in accumulated other comprehensive income of $3 related to its other postretirement benefit plans.
The U.S. plan’s assumed rate of return was 6.60 % in 2022 and is 7.15 % for 2023. A 0.50% change in the expected rates of return would change 2023 pension expense by approximately $6.
The U.S. plan’s assumed rate of return was 7.15% in 2023. A 0.50% change in the expected rates of return would change 2024 pension expense by approximately $6.
Of the cash and cash equivalents located outside the U.S., $396 was held by subsidiaries for which earnings are considered indefinitely reinvested. The Company's revolving credit agreements provide capacity of $1,650. As of December 31, 2022, the Company had available capacity of $1,252 under its revolving credit facilities.
Of the cash and cash equivalents located outside the U.S., $639 was held by subsidiaries for which earnings are considered indefinitely reinvested. The Company's revolving credit agreements provide capacity of $1,650 and, as of December 31, 2023, the Company had available capacity of $1,585.
The foreign currency translation impacts referred to in the discussion below were primarily due to changes in the Mexican peso and the Canadian dollar in the Company's Americas Beverage segment, the euro and pound sterling in the Company's European 25 Crown Holdings, Inc. Beverage segment and the Thai Baht in the Company's Asia Pacific segment.
The foreign currency translation impacts referred to in the discussion below were primarily due to changes in the Mexican peso in the Company's Americas Beverage segment, the euro in the Company's European Beverage segment and the Chinese yuan 26 Crown Holdings, Inc. and the Thai baht in the Company's Asia Pacific segment.
In June 2022, the Company's Yangon, Myanmar beverage can plant was temporarily idled due to currency restrictions, which resulted in the inability to source U.S. dollars required to procure U.S. dollar raw materials.
In June 2022, the Company's Yangon, Myanmar beverage can plant was temporarily idled due to currency restrictions, which resulted in the inability to source U.S. dollars required to procure U.S. dollar raw materials. The Company began production on a limited basis in 2023.
Crown Cork Obligor Group December 31, 2022 Net sales $ — Gross Profit — Income from operations (6) Net income from continuing operations 1 (64) Net income attributable to Crown Holdings 1 (64) (1) Includes $30 of expense related to intercompany interest with non-guarantor subsidiaries.
Crown Cork Obligor Group December 31, 2023 Net sales $ — Gross Profit — Income from operations 2 Net income from continuing operations 1 (70) Net income attributable to Crown Holdings 1 (70) (1) Includes $52 of expense related to intercompany interest with non-guarantor subsidiaries.
The Company performed a recoverability analysis for the long-lived asset group, which indicated that the carrying value of the asset group was recoverable as of December 31, 2022. Property, plant and equipment as of December 31 2022 was $56, including $25 of land and buildings and $31 of machinery and equipment. 37 Crown Holdings, Inc.
The Company performed a recoverability analysis for the long-lived asset group, which indicated that the carrying value of the asset group was recoverable as of December 31, 2023. Property, plant and equipment as of December 31, 2023 was $51, including $25 of land and buildings and $26 of machinery and equipment.
Cash payments required for purchase obligations and projected pension contributions in effect at December 31, 2022, are summarized in the following table.
Cash payments required for purchase obligations and projected pension contributions in effect at December 31, 2023, are summarized in the following table. 33 Crown Holdings, Inc.
Additionally, for the year-ended December 31, 2021, corporate and unallocated expenses included certain corporate costs, including research and development, that were not directly attributable to the Company's European Tinplate business which was sold in August 2021 and as such, could not be allocated to discontinued operations.
Additionally, for the year-ended December 31, 2021, segment income included certain corporate costs, including research and development, that were not directly attributable to the Company's European Tinplate business which was sold in August 2021 and as such, could not be allocated to discontinued operations. Subsequent to the sale, the segments corporate cost structure reflects its ongoing operations.
In recent years, the beverage can market in Southeast Asia has been growing driven by increased per capita incomes and consumption, combined with an increased preference for cans over other forms of beverage packaging. 27 Crown Holdings, Inc.
Historically growth in the beverage can market in Southeast Asia has been driven by increased per capita incomes and consumption, combined with an increased preference for cans over other forms of beverage packaging.
Net sales and segment income in Other were as follows: 2022 2021 2020 Net sales $ 1,543 $ 1,258 $ 1,168 Segment income 240 144 114 Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher tinplate costs in the Company's North America food can, aerosol can and closures businesses, partially offset by lower sales unit volumes and $17 from the impact of unfavorable foreign currency translation.
Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher tinplate costs in the Company's North America food can, aerosol can and closures businesses, partially offset by lower sales unit volumes and $17 from the impact of unfavorable foreign currency translation.
Pension and Postretirement Benefits Accounting for pensions and postretirement benefit plans requires the use of estimates and assumptions regarding numerous factors, including discount rates, rates of return on plan assets, compensation increases, health care cost increases, future rates of inflation, mortality and employee turnover.
See Note S to the consolidated financial statements for additional information on the Company’s valuation allowances. Pension and Postretirement Benefits Accounting for pensions and postretirement benefit plans requires the use of estimates and assumptions regarding numerous factors, including discount rates, rates of return on plan assets, compensation increases, health care cost increases, future rates of inflation, mortality and employee turnover.
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS Net income attributable to noncontrolling interest decreased from $148 in 2021 to $128 in 2022 primarily due to lower earnings in the Company's beverage can operations in Brazil and the Middle East.
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS Net income attributable to noncontrolling interest increased from $128 in 2022 to $137 in 2023 primarily due to higher earnings in the Company's beverage can operations in Brazil and the Middle East.
NET SALES AND SEGMENT INCOME 2022 2021 2020 Net sales $12,943 $11,394 $9,392 Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher raw material costs and 3% higher global beverage can sales unit volumes partially offset by lower volumes in the Transit Packaging segment and unfavorable foreign currency translation of $372.
Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher aluminum, steel and other commodity costs and 3% higher global beverage can sales unit volumes, partially offset by lower volumes in the Transit Packaging segment and unfavorable foreign currency translation of $372.
RESTRUCTURING AND OTHER, NET For the year-ended December 31, 2022, the benefit from restructuring and other, net includes a $113 gain from the sale of the Transit Packaging segment's Kiwiplan business and $29 of charges related to an overhead cost reduction program initiated by the Transit Packaging segment in the second quarter of 2022.
In 2022, the benefit from restructuring and other, net, included a $113 gain from the sale of the Transit Packaging segment's Kiwiplan business and $29 of charges related to an overhead cost reduction program initiated by the Transit Packaging segment in the second quarter of 2022 that reduced headcount by approximately 600 employees.
At December 31, 2022, the Company had approximately $173 of capital commitments primarily related to its Americas Beverage segment. The Company expects to fund these commitments primarily through cash generated from operations.
The Company currently expects capital expenditures in 2024 to be approximately $500. At December 31, 2023, the Company had approximately $85 of capital commitments primarily related to its Americas Beverage segment. The Company expects to fund these commitments primarily through cash generated from operations.
These restrictions are subject to a number of exceptions, however, which allow the Company to incur additional debt, create liens or make otherwise restricted payments provided that the Company is in compliance with applicable financial and other covenants and meets certain liquidity requirements. 31 Crown Holdings, Inc.
These restrictions are subject to a number of exceptions, however, which allow the Company to incur additional debt, create liens or make otherwise restricted payments provided that the Company is in compliance with applicable financial and other covenants and meets certain liquidity requirements. The Company’s revolving credit facilities and term loan facilities also contain a total leverage ratio covenant.
The Company’s revolving credit facilities and term loan facilities also contain a total leverage ratio covenant. The leverage ratio is calculated as total net debt divided by Consolidated EBITDA (as defined in the credit agreement). Total net debt is defined in the credit agreement as total debt less cash and cash equivalents.
The leverage ratio is calculated as total net debt divided by Consolidated EBITDA (as defined in the credit agreement). Total net debt is defined in the credit agreement as total debt less cash and cash equivalents.
The fair value of these contracts at December 31, 2022 was a net gain of $90. Total future payments of long-term debt obligations at December 31, 2022 include $4,220 of U.S. dollar-denominated debt, $2,578 of euro-denominated debt and $136 of debt denominated in other currencies.
The fair value of these contracts at December 31, 2023 was a net gain of $47. Total future payments of long-term debt obligations at December 31, 2023 include $3,885 of U.S. dollar-denominated debt, $3,571 of euro-denominated debt and $40 of debt denominated in other currencies.
Asia Pacific The Company's Asia Pacific segment consists of beverage can operations in Cambodia, China, Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam and non-beverage can operations, primarily food cans and specialty packaging.
In 2022, corporate costs decreased by $13 as compared to 2021. Asia Pacific The Company's Asia Pacific segment consists of beverage can operations in Cambodia, China, Indonesia, Malaysia, Myanmar, Thailand and Vietnam and non-beverage can operations, primarily food cans and specialty packaging.
Segment income decreased primarily due to a mismatch in contractual aluminum pass-through provisions whereby higher cost inventory was sold at lower prices, partially offset by the impact of higher sales unit volumes.
Segment income decreased primarily due to lower volumes. Additionally, 2022 segment income was unfavorably impacted by the mismatch in contractual aluminum pass-through provisions whereby higher cost inventory was sold at lower prices.
The Company accounts for transfers under these facilities as sales as further discussed in Note D to the consolidated statements. The Company utilizes its cash flows from operations, borrowings under its revolving credit facilities and the acceleration of cash receipts under its receivables securitization and factoring programs to primarily fund its operations, capital expenditures and financing obligations.
The Company utilizes its cash flows from operations, borrowings under its revolving credit facilities and the acceleration of cash receipts under its receivables securitization and factoring programs to primarily fund its operations, capital expenditures and financing obligations.
As of December 31, 2022, the Company had forward commodity contracts to hedge aluminum price fluctuations with a notional value of $230 and a net loss of $16. The maturities of the commodity contracts closely correlate to the anticipated purchases of those commodities. 35 Crown Holdings, Inc.
As of December 31, 2023, the Company had forward commodity contracts to hedge aluminum price fluctuations with a notional value of $160 and a net gain of less than $1. The maturities of the commodity contracts closely correlate to the anticipated purchases of those commodities.
The ability to mitigate inflationary risks through these measures varies by region and the impact on the results of the Company’s segments is discussed, as applicable, under the heading "Results of Operations" below.
The ability to mitigate inflationary risks through these measures varies by region and the impact on the results of the Company’s segments is discussed, as applicable, under the heading "Results of Operations" below. On August 31, 2021, the Company completed the sale of its European Tinplate business to KPS Capital Partners, LP.
Year ended December 31, 2021 compared to 2020 Net sales increased primarily due to the pass-through of higher aluminum costs, 8% higher sales unit volumes and $9 from the impact of favorable foreign currency translation.
Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher aluminum costs and 3% higher volumes, partially offset by unfavorable foreign currency translation of $177.
Year ended December 31, 2021 compared to 2020 Net sales increased primarily due to 12% higher sales unit volumes, the pass-through of higher aluminum costs, and $57 from the impact of favorable foreign currency translation.
Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher aluminum costs and 10% higher volumes, partially offset by unfavorable foreign currency translation of $42.
The Company added a third two-piece food can line to its Owatonna, Minnesota plant in 2022 and is expected to add a pet food can line to its Dubuque, Iowa plant in 2023.
The Company added a third two-piece food can line to its Owatonna, Minnesota plant in 2022 and is expected to add a pet food can line to its Dubuque, Iowa plant in 2024. In 2023, the Company right-sized the beverage can equipment operations in the U.K. to reflect the expected significant reduction in orders from global beverage can manufactures.
The Company will continue to monitor the economic conditions and the impact to its business in Myanmar, including any alternative uses for its machinery and equipment.
Property, plant and equipment in Myanmar as of December 31, 2023 was $51, including $25 of land and buildings and $26 of machinery and equipment. The Company will continue to monitor the economic conditions and the impact to its business in Myanmar, including any alternative uses for its machinery and equipment.
Net sales and segment income in the Asia Pacific segment were as follows: 2022 2021 2020 Net sales $ 1,615 $ 1,322 $ 1,168 Segment income 172 182 175 Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher raw material costs and 10% higher sales unit volumes, partially offset by unfavorable foreign currency translation of $42.
Net sales and segment income in the Asia Pacific segment were as follows: 2023 2022 2021 Net sales $ 1,297 $ 1,615 $ 1,322 Segment income 154 172 182 Year ended December 31, 2023 compared to 2022 Net sales decreased primarily due to 14% lower volumes, the pass-through of lower aluminum costs and $8 from the impact of unfavorable foreign currency translation.
The aluminum pass-through provisions are impacted by higher than normal inventory levels due to supply chain concerns and lower than expected volumes, and price volatility in the aluminum market.
Segment income decreased primarily due to a mismatch in contractual aluminum pass-through provisions whereby higher cost inventory was sold at lower prices, partially offset by the impact of higher volumes. The aluminum pass-through provisions are impacted by higher than normal inventory levels due to supply chain concerns and lower than expected volumes, and price volatility in the aluminum market.
Net sales and segment income in the Transit Packaging segment were as follows: 2022 2021 2020 Net sales $ 2,545 2,530 $ 2,018 Segment income 281 318 254 Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher raw material prices, partially offset by $139 from the impact of unfavorable foreign currency translation and lower sales unit volumes. 28 Crown Holdings, Inc.
Segment income increased primarily due to approxim ately $50 of cost savings from headcount reductions across the business. Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher raw material prices, partially offset by $139 from the impact of unfavorable foreign currency translation and lower volumes. 29 Crown Holdings, Inc.
The effective tax rate in 2021 also included tax charges of $42 in continuing operations for reorganizations and other transactions required to prepare the European Tinplate business for sale. Additionally, the Company recorded an income tax charge of $44 to establish a valuation allowance for deferred tax assets related to tax loss carryforwards in France.
Additionally, the Company also recorded income tax benefits of $8, primarily related to tax law changes in India, Turkey and the U.K. The effective tax rate in 2021 also included tax charges of $42 in continuing operations for reorganizations and other transactions required to prepare the European Tinplate business for sale.
Crown Americas Obligor Group December 31, 2022 Net sales 1 $ 5,221 Gross profit 2 822 Income from operations 2 376 Net income from continuing operations 3 241 Net income attributable to Crown Holdings 3 241 (1) Includes $518 of sales to non-guarantor subsidiaries (2) Includes $52 of gross profit related to sales to non-guarantor subsidiaries (3) Includes $31 of income related to intercompany interest and technology royalties with non-guarantor subsidiaries December 31, 2022 Current assets 1 $ 975 Non-current assets 2 3,830 Current liabilities 3 1,262 Non-current liabilities 4 6,048 (1) Includes receivables of $33 due from non-guarantor subsidiaries (2) Includes receivables of $185 due from non-guarantor subsidiaries (3) Includes payables of $37 due to non-guarantor subsidiaries (4) Includes payables of $1,314 due to non-guarantor subsidiaries The senior notes are structurally subordinated to all indebtedness of the Company’s non-guarantor subsidiaries.
December 31, 2023 Current assets $ 22 Non-current assets 29 Current liabilities 48 Non-current liabilities 1 6,265 (1) Includes payables of $5,514 due to non-guarantor subsidiaries Crown Americas Obligor Group December 31, 2023 Net sales 1 $ 4,968 Gross profit 2 779 Income from operations 2 282 Net income from continuing operations 3 (39) Net income attributable to Crown Holdings 3 (39) (1) Includes $477 of sales to non-guarantor subsidiaries (2) Includes $48 of gross profit related to sales to non-guarantor subsidiaries (3) Includes $26 of income related to intercompany interest and technology royalties with non-guarantor subsidiaries December 31, 2023 Current assets 1 $ 1,423 Non-current assets 2 3,850 Current liabilities 3 1,166 Non-current liabilities 4 6,553 (1) Includes receivables of $30 due from non-guarantor subsidiaries (2) Includes receivables of $189 due from non-guarantor subsidiaries (3) Includes payables of $35 due to non-guarantor subsidiaries (4) Includes payables of $2,134 due to non-guarantor subsidiaries The senior notes are structurally subordinated to all indebtedness of the Company’s non-guarantor subsidiaries.
In order to reduce leverage and future interest payments, the Company may from time to time repurchase outstanding notes and debentures with cash or seek to refinance its existing credit facilities and other indebtedness. The Company will evaluate any such transactions in light of any required premiums and then existing market conditions and may determine not to pursue such transactions.
Failure to meet the financial covenant could result in the acceleration of any outstanding amounts due under the revolving credit facilities and term loan facilities. In order to reduce leverage and future interest payments, the Company may from time to time repurchase outstanding notes and debentures with cash or seek to refinance its existing credit facilities and other indebtedness.
Protective solutions include transit protection products, such as airbags, edge protectors, and honeycomb products that help prevent movement of, and/or damage to, a wide range of industrial and consumer goods during transport. Automation, equipment and tools includes manual, semi-automatic and automatic equipment and tools, which are primarily used in end-of-line operations to apply consumables such as strap and film.
Protective solutions include standard and purpose designed products, such as airbags, edge protectors, and honeycomb products, among others that help prevent movement of, and/or damage to, a wide range of industrial and consumer goods during transport. Steel and plastic consumables include steel strap, plastic strap, industrial film and other related products that are used across a wide range of industries.
The lower effective tax rate in 2021 included a tax benefit of $18 related to a deferred tax valuation allowance release resulting from improved profitability in a Transit Packaging corporate entity. Additionally, the Company also recorded income tax benefits of $8, primarily related to tax law changes in India, Turkey and the U.K.
In 2022, the effective tax rate included an income tax charge of $11 for the sale of the Company's Transit Packaging segment's Kiwiplan business. The lower effective tax rate in 2021 included a tax benefit of $18 related to a deferred tax valuation allowance release resulting from improved profitability in a Transit Packaging corporate entity.
The amendments should be applied retrospectively to each period in which a balance sheet is presented, except for disclosure of rollforward information, which should be applied prospectively. The Company is currently evaluating the impact of adopting this guidance on its disclosures. See Note A to the consolidated financial statements for information on recently adopted accounting guidance. 38 Crown Holdings, Inc.
The standard is applied prospectively with an option for retrospective adoption. The Company is currently evaluating the impact of adopting this standard on its disclosures. See Note A to the consolidated financial statements for information on recently adopted accounting guidance.
Net sales and segment income in the Americas Beverage segment were as follows: 2022 2021 2020 Net sales $ 5,126 $ 4,441 $ 3,565 Segment income 742 756 652 Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher raw material costs. 26 Crown Holdings, Inc.
Net sales and segment income in the Americas Beverage segment were as follows: 2023 2022 2021 Net sales $ 5,147 $ 5,126 $ 4,441 Segment income 876 742 756 Year ended December 31, 2023 compared to 2022 Net sales increased primarily due to contractual pass-through mechanisms put in place to recover inflation , 4% higher volumes and favorable foreign currency translation of $56, partially offset by the pass-through of $375 lower aluminum costs.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The information set forth within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the captions “Market Risk” and "Forward Looking Statements" in this Annual Report is incorporated herein by reference.
Biggest changeITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The information set forth within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the captions “Market Risk” and "Forward Looking Statements" in this Annual Report is incorporated herein by reference. 42 Crown Holdings, Inc.
Removed
In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intended to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The U.S.
Removed
Federal Reserve, in conjunction with the Alternative Reference Rate Committee has announced the replacement of U.S. dollar LIBOR rates with a new index calculated by short-term repurchase agreements backed by U.S. Treasury securities called the Secured Overnight Financing Rate (SOFR). The first publication of SOFR was released in April 2018.
Removed
In March 2021, the Financial Conduct Authority, and administrator, ICE Benchmark Administration, Limited, announced that the publication of the one-week and two-month USD LIBOR maturities and non-USD LIBOR maturities will cease immediately after December 31, 2021, with the remaining USD LIBOR maturities ceasing immediately after June 30, 2023.
Removed
At December 31, 2022, the Company does not have contracts that are indexed to LIBOR. The LIBOR to SOFR transition is not expected to have a material impact on the Company's consolidated financial statements. 40 Crown Holdings, Inc.

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