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What changed in CROWN HOLDINGS, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of CROWN HOLDINGS, INC.'s 2023 and 2024 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 2024 report.

+263 added−271 removedSource: 10-K (2025-03-03) vs 10-K (2024-02-27)

Top changes in CROWN HOLDINGS, INC.'s 2024 10-K

263 paragraphs added · 271 removed · 223 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

39 edited+4 added−6 removed56 unchanged
Biggest changeTransit 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.
Biggest changeTransit 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 6 Crown Holdings, Inc. solutions that solve problems and create value for its customers.
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.
The Company recognizes the 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.
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.
Company continues to focus on improving gender 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.
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.
SALES AND DISTRIBUTION Global marketers qualify suppliers on the basis of their ability to provide quality 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.
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’s competitors include, but are not limited to, Ardagh Metal Packaging, Ball Corporation, 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 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 does not expect that renegotiation of any collective bargaining agreements expiring in 2025 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, 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.
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 Z to the consolidated financial statements.
Further information relating to the Company’s liquidity and capital resources is set forth within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report under the caption “Liquidity” and under Note M to the consolidated financial statements. AVAILABLE INFORMATION The Company’s website address is www.crowncork.com .
Further information relating to the Company’s liquidity and capital resources is set forth within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report under the caption “Liquidity” and under Note N to the consolidated financial statements. AVAILABLE INFORMATION The Company’s website address is www.crowncork.com .
Discussion of the Company’s environmental matters is contained within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report under the caption “Environmental Matters,” and under Note P to the consolidated financial statements.
Discussion of the Company’s environmental matters is contained within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Annual Report under the caption “Environmental Matters,” and under Note Q to the consolidated financial statements.
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.
The Company continues to leverage the inherent eco-friendly benefits of its primary product, metal packaging, to advance toward its targets. Both aluminum and steel cans are infinitely recyclable. Aluminum beverage cans remain the world’s most recycled beverage packaging, exemplify sustainability and are a strong contributor to the circular economy.
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.
The Company recognizes that a diverse and inclusive workforce is part of its future business success. It has 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.
Socially, the Company is continuing to elevate its commitments to community engagement through more volunteer opportunities and by establishing a charitable giving program, which donates to various non-profit organizations across the regions in which it operates.
Socially, the Company is continuing to elevate its commitments to community engagement through volunteer opportunities and a charitable giving program, which donates to various non-profit organizations across the regions in which it operates.
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.
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.
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.
HUMAN CAPITAL At December 31, 2024, the Company had approximately 23,000 employees worldwide, with approximately 6,000 employed by the Americas Beverage segment, 3,500 employed by the European Beverage segment, 4,000 employed by the Asia Pacific segment, 7,500 employed by the Transit Packaging segment and 2,000 employed by Other. A significant portion of the Company’s workforce is unionized.
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.
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.
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.
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 2024, consumption of aluminum and steel represented 46% and 7%, respectively, of consolidated cost of products sold, excluding depreciation and amortization.
Regular engagement with suppliers is ongoing to manage materials and the impact on environments and communities. The Company strives to ensure all partners meet standards for responsible supply and adhere to the formal Code of Business Conduct and Ethics.
Regular engagement with suppliers is ongoing to manage materials and the impact on environments and communities. The Company strives to ensure partners meet standards for responsible supply as noted in the formal Code of Business Conduct and Ethics.
Recruitment programs to attract diverse talent into the organization include an accelerated manufacturing program, first focused on engineering skills, which includes assignments in various businesses and countries to encourage broader thinking and a flexible mindset. This program provides an opportunity for diverse candidates to progress more quickly to higher functions within the organization.
Recruitment programs to attract diverse talent into the organization include an accelerated manufacturing program, first focused on engineering skills, which includes assignments in various businesses and countries to encourage a flexible mindset. This program provides an opportunity for diverse candidates to progress quickly to higher functions within the organization. The 5 Crown Holdings, Inc.
Supplier consolidations, changes in ownership, government regulations, political unrest and increased demand for raw materials in the packaging and other industries, among other risk factors, could cause uncertainty as to the availability of and the level of prices at which the Company might be able to source such raw materials in the future.
Supplier consolidations, changes in ownership, government regulations including tariffs, trade restrictions or retaliatory trade measures, political unrest and increased demand for raw materials in the packaging and other industries, among other risk factors, could cause uncertainty as to the availability of and the level of prices at which the Company might be able to source such raw materials in the future.
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.
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 2024 of $2.1 billion and segment income (as defined under Note Z to the consolidated financial statements) of $270 million.
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 continues 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 compensation packages to all its staff and it provides professional development opportunities that both contribute to the Company’s success and maximize employees' potential.
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.
The reportable segments are: Americas Beverage, European Beverage, Asia Pacific and Transit Packaging. 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.
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.
Collective bargaining agreements with varying terms and expiration dates cover approximately 10,000 employees. The Company did not experien ce any significant union-initiated work stoppages during the 2024 fiscal year and believes that its employee relations remain good.
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.
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 2024 consolidated net sales. For the year ended December 31, 2024, two customers each accounted for 12% of the Company's consolidated net sales.
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.
The Asia Pacific segment had net sales in 2024 of $1.2 billion and segment income (as defined under Note Z to the consolidated financial statements) of $195 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.
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.
Americas Beverage had net sales in 2024 of $5.2 billion and segment income (as defined under Note Z to the consolidated financial statements) of $987 million. EUROPEAN BEVERAGE The European Beverage segment manufactures infinitely recyclable aluminum beverage cans and ends in Europe, the Middle East and North Africa.
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.
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, 2024, the Comp any operated 189 plants along with sales and service facilities throughout 39 countries an d had approximately 23,000 employees.
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.
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. The beverage can continues to disproportionately be the package of choice for new beverage product introductions.
However, sufficient quantities may not be available in the future due to, among other things, shortages due to excessive demand, weather or other factors, including disruptions in supply caused by raw material transportation or production delays.
The Company has agreements for what it considers adequate supplies of raw materials. However, sufficient quantities may not be available in the future due to, among other things, shortages due to excessive demand, weather or other factors, including disruptions in supply caused by raw material transportation or production delays.
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.
In 2024, consolidated net sales for the Company were $11. 8 billion with 63% deri ved from operations outside the United States ("U.S.") Approximately 72% of th e Company's consolidated net sales were derived from the Company's global beverage can business.
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.
The Company is working in conjunction with industry partners to drive higher recycling rates and increase recycled content to ensure infinitely recycled metal packaging is available for generations of future use. Additionally, Transit Packaging uses recycled materials in its paper, cardboard and strapping products. REPORTABLE SEGMENTS The Company's business is generally organized by product line and geography.
MATERIALS AND SUPPLIERS The Company uses various raw materials, primarily aluminum and steel, in its manufacturing operations. Transit Packaging also uses materials derived from crude oil and natural gas, such as polyethylene and polypropylene. In general, these raw materials are purchased in highly competitive, price-sensitive markets, which have historically exhibited price and demand cyclicality.
Transit Packaging also uses materials derived from crude oil and natural gas, such as polyethylene and polypropylene. In general, these raw materials are purchased in highly competitive, price-sensitive markets, which have historically exhibited price and demand cyclicality. These and other materials used in the manufacturing process have historically been available in adequate supply from multiple sources.
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.
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. MATERIALS AND SUPPLIERS The Company uses various raw materials, primarily aluminum and steel, in its manufacturing operations.
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.
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. 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.
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.
As a result of its collective efforts, the Company has recently received the following recognitions in 2024: 4 Crown Holdings, Inc. • The Company was awarded #1 publicly traded spot within the Containers and Packaging industry category by ESG ratings provider Sustainalytics for managing ESG risk within the Containers and Packaging industry category.
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.
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. These efforts 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).
WORKING CAPITAL The Company generally uses cash during the first nine months of the year to finance seasonal working capital needs.
The Company spent $32 million in 2024, $33 million in 2023, and $34 million in 2022 in its RD&E activities. WORKING CAPITAL The Company historically uses cash during the first nine months of the year to finance seasonal working capital needs.
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.
European Beverage had net sales in 2024 of $2.1 billion and segment income (as defined under Note Z to the consolidated financial statements) of $276 million. ASIA PACIFIC The Asia Pacific segment manufactures infinitely recyclable beverage cans and ends, food cans and specialty packaging in Cambodia, China, Indonesia, Malaysia, Myanmar, Thailand and Vietnam. 1 Crown Holdings, Inc.
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.
Transit Packaging has grown its global patent portfolio to nearly 360 U.S. issued patents or pending patent applications and over 980 foreign issued patents or pending patent applications. The portfolio broadly covers over 350 customized technologies and spans diverse business platforms, as well as the different countries in which it operates.
Removed
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.
Added
For the years ended December 31, 2023 and 2022, these two customers each accounted for 12% and 11%, 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.
Removed
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.
Added
The Company made the following efforts in 2024 to be a more proactive sustainability leader: • Commissioned additional water replenishment projects to replenish water used in high water stress regions.
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These and other materials used in the manufacturing process have historically been available in adequate supply from multiple sources. The Company has agreements for what it considers adequate supplies of raw materials.
Added
The Company now has projects commissioned in: Brazil, Greece, Spain and Tunisia; and • Together with The Can Manufacturer’s Institute and the International Aluminium Institute, participated in the second global aluminum can summit to drive further industry movement toward shared sustainability agenda items such as recycled content and climate change mitigation.
Removed
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.
Added
This marks the fifth year in a row the Company landed in the top 3% in the "Containers and Packaging" category. • The Company was named as one of “America’s Climate Leaders” by USA TODAY and Statista. • The Company was recognized within the U.S. Environmental Protection Agency’s ("EPA") Top 30 Green Power Partners from the Fortune 500 list.
Removed
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.
Removed
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.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

59 edited+8 added−7 removed141 unchanged
Biggest changeThe 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.
Biggest changeThe Company's indebtedness includes its $875 million 4.75% senior notes due in February 2026; its €500 million ($518 million at December 31, 2024) 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 ($518 million at December 31, 2024) 5.00% senior notes due in May 2028; its €500 million ($518 million at December 31, 2024) 4.75% senior notes due in March 2029; its €600 million ($621 million at December 31, 2024) 4.50% senior notes due in January 2030; its $500 million 5.25% senior notes due in April 2030; its $40 million 7.50% senior notes due in December 2096; and its $118 million of other indebtedness in various currencies due at various dates through 2027.
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.
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; 10 Crown Holdings, Inc. • 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; • 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.
In addition, under the Company's unfunded Senior Executive Retirement Plan certain members of senior management are entitled to lump sum payments upon retirement or other termination of employment and a lump sum death benefit of five times the annual retirement benefit, which could result in unexpected increased costs to the Company for a particular period. 19 Crown Holdings, Inc.
In addition, under the Company's unfunded Senior Executive Retirement Plan 19 Crown Holdings, Inc. certain members of senior management are entitled to lump sum payments upon retirement or other termination of employment and a lump sum death benefit of five times the annual retirement benefit, which could result in unexpected increased costs to the Company for a particular period.
In particular, in recent years the consolidation of steel suppliers, shortage of raw materials affecting the production of steel and the increased global demand for steel, have contributed to an overall tighter supply for steel, resulting in increased steel prices and, in some cases, special surcharges and allocated cut backs of products by steel suppliers.
In recent years the consolidation of steel suppliers, shortage of raw materials affecting the production of steel and the increased global demand for steel, have contributed to an overall tighter supply for steel, resulting in increased steel prices and, in some cases, special surcharges and allocated cut backs of products by steel suppliers.
Assumptions underlying the accrual include that claims for exposure to asbestos that occurred after the sale of the subsidiary's insulation business in 1964 would not be entitled to settlement payouts and that state statutes described under Note O to the Company's audited consolidated financial statements included in this Annual Report, including Texas and Pennsylvania statutes, are expected to have a highly favorable impact on Crown Cork's ability to settle or defend against asbestos-related claims in those states and other states where Pennsylvania law may apply.
Assumptions underlying the accrual include that claims for exposure to asbestos that occurred after the sale of the subsidiary's insulation business in 1964 would not be entitled to settlement payouts and that state statutes described under Note P to the Company's audited consolidated financial statements included in this Annual Report, including Texas and Pennsylvania statutes, are expected to have a highly favorable impact on Crown Cork's ability to settle or defend against asbestos-related claims in those states and other states where Pennsylvania law may apply.
The Company cooperated with the Commission and submitted a leniency application with the Commission with respect to the findings of its internal investigation in Germany. In July 2022, the Company reached a settlement with the Commission relating to the Commission’s investigation, pursuant to which the Company agreed to pay a fine in the amount of €8 million.
The Company cooperated with the Commission and submitted a leniency application with the Commission with respect to the findings of its internal investigation in Germany. In July 2022, the Company reached a settlement with the Commission relating to the Commission’s investigation, pursuant to which the Company agreed to pay a fine in the amount of $8.
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 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, 2024 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.
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.
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 P to the Company's audited consolidated financial statements included in this Annual Report.
In its consolidated financial statements, the Company translates local currency financial results into U.S. dollars based on average exchange rates prevailing during a reporting period. During times of a strengthening U.S. dollar, its reported international revenue and earnings will be reduced because the local currency will translate into fewer U.S. dollars.
In its consolidated financial statements, the Company translates local currency financial results into U.S. dollars based on average exchange rates prevailing during a reporting period. During times of a strengthening U.S. dollar, its reported international revenue and earnings will be reduced because the local curren cy will translate into fewer U.S. dollars.
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 availability of various raw materials and their prices depend on global and local supply and demand forces, governmental regulations and trade policies (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 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.
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 2024, 2023 and 2022.
See Note R to the Company's audited consolidated financial statements in this Annual Report. As long as the Company continues to maintain its various pension plans, the Company will continue to incur additional pension obligations.
See Note S to the Company's audited consolidated financial statements in this Annual Report. As long as the Company continues to maintain its various pension plans, the Company will continue to incur additional pension obligations.
The FCA alleged violations of Articles 101 of the Treaty on the Functioning of the European Union and L.420-1 of the French Commercial Code. The statement of objections alleges, among other things, anti-competitive behavior in connection with the removal of bisphenol-A from metal packaging in France.
The FCA alleged violations of Articles 101 of the Treaty on the Functioning of the EU and L.420-1 of the French Commercial Code. The statement of objections alleges, among other things, anti-competitive behavior in connection with the removal of bisphenol-A from metal packaging in France.
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.
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.
If the Company's management is unable to effectively manage the Company's growth, its expenses may increase more than expected, its revenue could grow more slowly than expected and it may not be able to achieve its research and development and production goals, any of which could have a material effect on its business, operating results or financial condition. 18 Crown Holdings, Inc.
If the Company's management is unable to effectively manage the Company's growth, its expenses may increase more than expected, its revenue could grow more slowly than expected and it may not be able to achieve its research and development and production goals, any of which could have a material effect on its business, operating results or financial condition.
(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.
(Crown Cork), a wholly-owned subsidiary of the Company, is one of many defendants in a substantial number of lawsuits filed throughout the U.S. 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.
Conversely, a weakening U.S. dollar will effectively increase the dollar-equivalent of the Company's expenses and liabilities denominated in foreign currencies. See “Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Market Risk” and "Quantitative and Qualitative Disclosure about Market Risk" in this Annual Report.
Conversely, a weakening U.S. dollar will effectively increase the dollar-equivalent of the Company's expenses and liabilities denominated in foreign currencies. See “Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Market Risk” and "Quantitative and Qualitative Disclosure about Market Risk" in this Annual Report. 11 Crown Holdings, Inc.
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.
The removal of bisphenol-A was mandated by French legislation that went into 15 Crown Holdings, Inc. 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.
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.
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.
The Company's international operations generated approximately 63% of its consolidated net sales in the years ended 2023, 2022 and 2021.
The Company's international operations generated approximately 63% of its consolidated net sales in the years ended 2024, 2023 and 2022.
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 current sources of liquidity includes a securitization facility with a program limit up to a maximum of $800 million that expires in July 2025 and securitization facilities with program limits of $230 million and $160 million that expire in November 2025.
Future changes in the factors used to determine pension contributions, including investment performance of plan assets, could have a significant impact on the Company’s future contributions and its cash flow available for debt reduction, capital expenditures or other purposes.
Future changes in the factors used to determine pension contributions, including investment performance of plan assets, could have a significant impact on the Company’s future contributions and its cash flow available for debt reduction, capital expenditures or other purposes. 14 Crown Holdings, Inc.
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.
Crown Cork made cash payments of $15 million, $17 million and $21 million in 2024, 2023 and 2022 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.
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.
In addition, as of December 31, 2024, the unfunded accumulated postretirement benefit obligation, as calculated in accordance with U.S. generally accepted accounting principles, for retiree medical benefits was approximately $96 million, based on assumptions set forth under Note S to the Company's audited consolidated financial statements in this Annual Report.
In addition, the Company's ability to make payments on and refinance its debt and to fund its operations will depend on the Company's ability to generate cash in the future. Some of the Company's indebtedness is subject to floating interest rates, which would result in the Company's interest expense increasing if interest rates rise.
In addition, the Company's ability to make payments on and refinance its debt and to fund its operations will depend on the Company's ability to generate cash in the future. 12 Crown Holdings, Inc. Some of the Company's indebtedness is subject to floating interest rates, which would result in the Company's interest expense increasing if interest rates rise.
To manage the Company's anticipated future growth effectively, the Company must continue to enhance its manufacturing capabilities and operations, information technology infrastructure, and financial and accounting systems and controls. Organizational growth and scale-up of operations could strain its existing managerial, operational, financial and other resources.
To manage the Company's anticipated future growth effectively, the Company must continue to enhance its manufacturing capabilities and operations, information technology infrastructure, and financial and accounting systems and controls. Organizational growth and scale-up of operations could strain its existing managerial, operational, financial and other resources. 18 Crown Holdings, Inc.
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.
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, 2024, the carrying value of the Company's goodwill was $3 billion.
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.
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.
If the Company fails to remedy or maintain the adequacy of its internal controls, as such standards are modified, supplemented or amended from time to time, the Company could be subject to regulatory scrutiny, civil or criminal penalties or shareholder litigation.
If the Company fails to remedy or maintain the adequacy of its internal controls, as such standards are modified, supplemented or amended from time to time, the Company could be subject to regulatory scrutiny, civil or criminal penalties or shareholder litigation. 20 Crown Holdings, Inc.
The ability of the Company to comply with these covenants and the covenants in agreements it may enter into in the future can be affected by events beyond its control and, therefore, it may be unable to satisfy its obligations under its debt agreements.
The ability of the Company to comply with these covenants and the covenants in agreements it may enter into in the future can be affected by events beyond its control and, therefore, it may be unable to satisfy its obligations under its debt agreements. 13 Crown Holdings, Inc.
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.
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 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.
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 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 Company's annual interest expense was $452 million, $436 million and $284 million for 2024, 2023 and 2022, respectively. Based on the amount of variable rate debt outstanding and securitization and factoring at December 31, 2024, a 0.25% increase in variable interest rates would increase its annual interest expense by approximately $7 million before tax.
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.
Of the Company's outstanding claims, approximately 18,000 claims relate to claimants alleging first exposure to asbestos after 1964 and approximately 41,300 relate to claimants alleging first exposure to asbestos before or during 1964, of which approximately 13,000 were filed in Texas, 1,300 were filed in Pennsylvania, 6,000 were filed in other states that have enacted asbestos legislation and 21,000 were filed in other states.
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.
Risks Relating to the Company's International Operations The Company's international operations, which generated appr oximately 63% of its consolidated net sales in 2024, 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.
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.
Such changes to the Company's products could include modifications to the coatings and compounds that the Company uses, possibly resulting in the incurrence of additional costs.
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.
Sufficient quantities of these raw materials may not be available in the future or may be available only at increased prices. In 2024, consumption of aluminum and steel represented 46% and 7% of the Company's consolidated cost of products sold, excluding depreciation and amortization.
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.
As of December 31, 2024, approximately $1.8 billion of the Company's $6.2 billion of total indebtedness 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.
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 actual effect of a 0.25% increase in these floating interest rates could be more than $7 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, 2024.
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.
Crown Cork believes that the business ceased manufacturing such products in 1963. As of December 31, 2024, Crown Cork's accrual for pending and future asbestos-related claims and related legal costs was $185 million, including $141 million for unasserted claims. The Company determines its accrual without limitation to a specific time period.
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.
Accordingly, the Company's products must comply with various laws and regulations for beverages and food applicable to its customers. 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.
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.
A 0.50% change in the 2025 expected rate of return assumptions would change 2025 pension expense by approximately $2 million. A 0.50% change in the discount rates assumptions as of December 31, 2024 would change 2025 pension expense by approximately $4 million. The Company may be required to accelerate the timing of its contributions under its pension plans.
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.
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.
As of December 31, 2023, the Company and its subsidiaries had approximately $7.5 billion of indebtedness, excluding unamortized discounts and debt issuance costs.
As of December 31, 2024, the Company and its subsidiaries had approximately $6.2 billion of indebtedness, excluding unamortized discounts and debt issuance costs.
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 sponsors various pension plans worldwide, with the largest funded plans in the U.S. and Canada. In 2024, 2023 and 2022, the Company contributed $122 million, $19 million, and $24 million to its pension plans. The 2024 contributions included approximately $100 million to its U.S. pension plan in advance of a partial settlement of the plan's obligations.
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.
During the year ended December 31, 2024, Crown Cork received approximately 1,400 new claims, settled or dismissed approximately 600 claims, and had approximately 59,300 claims outstanding at the end of the period.
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.
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 European Union and Canada have banned the use of bisphenol-A in baby bottles, and the U.S. Environmental Protection Agency ("EPA") has considered adding bisphenol-A, which it has described as a potential reproductive, developmental, and systemic toxicant, to the chemical concern list and using its Design for the Environment program to encourage reductions in bisphenol-A manufacturing and use.
Environmental Protection Agency ("EPA") has considered adding bisphenol-A, which it has described as a potential reproductive, developmental, and 16 Crown Holdings, Inc. systemic toxicant, to the chemical concern list and using its Design for the Environment program to encourage reductions in bisphenol-A manufacturing and use.
The Company manufactures and sells metal and glass packaging primarily for the beverage and food can market. As a result, many of the Company's products come into direct contact with beverages and food. Accordingly, the Company's products must comply with various laws and regulations for beverages and food applicable to its customers.
Demand for the Company's products could be affected by changes in laws and regulations applicable to food and beverages and changes in consumer preferences. The Company manufactures and sells metal and glass packaging primarily for the beverage and food can market. As a result, many of the Company's products come into direct contact with beverages and food.
Consumer tax legislation and future attempts to tax sugar-sweetened or energy drinks by other jurisdictions could reduce the demand for the Company's products and materially adversely affect the Company's business and financial results. Demand for the Company's products could be affected by changes in laws and regulations applicable to food and beverages and changes in consumer preferences.
Consumer tax legislation and future attempts to tax sugar-sweetened or energy drinks by other jurisdictions could reduce the demand for the Company's products and materially adversely affect the Company's business and financial results. 17 Crown Holdings, Inc.
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.
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.
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.
Based on current assumptions, the Company expects to make pension contributions of $20 million in 2025, $29 million in 2026, $27 million in 2027, $51 million in 2028 and $28 million in 2029.
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.
For the year-ended December 31, 2024, a 10% movement in the average foreign exchange rates used to translate income and expense items during the year would h ave decreased net income by approximately $11 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 exclusion of these inactive claims had no effect on the calculation of the Company's accrual as the claims were filed in states where the Company's liability is limited by statute.
Due to the passage of time, the Company considers it unlikely that the plaintiffs in these cases will pursue further action. The exclusion of these inactive claims had no effect on the calculation of the Company's accrual as the claims were filed in states where the Company's liability is limited by statute.
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.
In addition, the Company’s term loan facilities mature as follows: $21 million in 2025, $28 million in 2026, $1,664 million in 2027.
Fining decisions based on settlements can be appealed under EU law. The Company is seeking annulment of the Commission’s fining decision on the basis that the referral of the case from the FCO to the Commission was unjustified. There can be no assurance regarding the outcome of such appeal.
Fining decisions based on settlements can be appealed under EU law and the Company sought annulment of the Commission’s fining decision on the basis that the referral of the case from the FCO to the Commission was unjustified. In October 2024, the General Court of the EU issued a judgment dismissing the Company’s appeal.
The Company continues to manage the challenges of supply chain disruptions and fluctuating costs for raw materials and energy in 2023.
The prices of certain raw materials used by the Company, such as aluminum, steel and energy, have historically been subject to volatility. The Company continues to manage the challenges of supply chain disruptions and fluctuating costs for raw materials and energy.
As a result of continuing global supply and demand pressures, other commodity-related costs affecting the Company's business may increase as well, including natural gas, electricity and freight-related costs. The prices of certain raw materials used by the Company, such as aluminum, steel and energy, have historically been subject to volatility.
Moreover, future steel supply contracts may provide for prices that fluctuate or adjust rather than provide a fixed price during a one-year period. As a result of continuing global supply and demand pressures, other commodity-related costs affecting the Company's business may increase as well, including natural gas, electricity and freight-related costs.
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.
Pension expense was $562 million, including settlement charges of $47 million and $469 million for the Canadian and U.S. pension plans and is expected to be $32 million in 2025, using foreign currency exchange rates in effect at December 31, 2024.
Removed
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.
Added
The U.S. has recently signaled its intention to change U.S. trade policy, including potentially renegotiating or terminating existing trade agreements and 7 Crown Holdings, Inc. leveraging tariffs. In February 2025, the U.S. imposed additional tariffs on aluminum and steel as well as on imports from China and announced and subsequently paused implementation of tariffs from Canada and Mexico.
Removed
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.
Added
These additional tariffs, as well as potential retaliation by another government against such tariffs or policies could significantly affect the price of steel, aluminum and other raw materials used by the Company, which may adversely affect the Company's profits and financial results.
Removed
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.
Added
Business interruptions at the Company’s facilities could adversely impact the Company’s operations and financial results. Our operations depend heavily on the uninterrupted performance of our manufacturing facilities.
Removed
The Company’s business operations and financial position have been and may continue to be adversely affected by the COVID-19 pandemic. The ongoing global outbreak of COVID-19 has caused and may continue to cause business slowdowns and shutdowns and turmoil in the financial markets both in the U.S. and abroad.
Added
Any significant disruption, whether due to natural disasters (such as earthquakes, fires, floods, or hurricanes), equipment failures, power outages, labor disputes, cyberattacks, supply chain breakdowns, or public health crises could materially impair our ability to produce and deliver products on schedule.
Removed
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.
Added
Such events could lead to increased costs from repairs, lost production, or contractual penalties, as well as damage to customer relationships if we fail to meet demand. We carry insurance for certain interruptions, but coverage may not extend to all scenarios, may involve significant deductibles, or may be insufficient to offset losses.
Removed
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.
Added
For the year-ended 2024, the Company was primarily impacted by changes in the Mexican peso, the euro, the Chinese yuan and the Thai baht. Additionally, the Company's Transit Packaging segment is a global business and is also impacted by changes in the Indian rupee, the Japanese yen and the Brazilian real.
Removed
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.
Added
In December 2024, the Company appealed the General Court’s judgment to the European Court of Justice. There can be no assurance regarding the outcome of such appeal.
Added
The EU and Canada have banned the use of bisphenol-A in baby bottles, and the U.S.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

1 edited+0 added−0 removed10 unchanged
Biggest changeThe Audit Committee, which is tasked with oversight of certain risk issues, including information security risk, receives two to four reports annually from the Company’s senior leadership, including the CISO, that includes an information security dashboard and discussion of emerging risks and trends. The Audit Committee then briefs the Board on these matters. 21 Crown Holdings, Inc.
Biggest changeThe Audit Committee, which is tasked with oversight of certain risk issues, including information security risk, receives two to four reports annually from the Company’s senior leadership, including the CISO, that includes an information security dashboard and discussion of emerging risks and trends. The Audit Committee then briefs the Board on these matters.

Item 2. Properties

Properties — owned and leased real estate

9 edited+1 added−1 removed1 unchanged
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.
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) Mesquite, NV Parma, Italy Henan, China (S) Sheridan, AR Noerresundby, Denmark Belcamp, MD (S) Nichols, NY Amman, Jordan Heshan, China Phoenix, AZ Soenderborg, Denmark Faribault, MN (A) Dayton, OH Dammam, Saudi Arabia Huizhou, China (S) Bay Point, CA Liljendal, Finland Owatonna, MN (F) Cheraw, SC Jeddah, Saudi Arabia Qingdao Chengyan, China (S) Stockton, CA Masku, Finland Massillon, OH (F) Conroe, TX Kosice, Slovakia Shanghai, China (S) Carrollton, GA Castelsarrasin, France Mill Park, OH (F) Fort Bend, TX Agoncillo, Spain Tianjin, China (S) Douglasville, GA Fontaine les Luxeuil, Connellsville, PA (F) Martinsville, VA Sevilla, Spain Ziyang, China LaGrange, GA France Hanover, PA (F) Winchester, VA Valencia, Spain Karawang, Indonesia Macon, GA Manneville sur Risle, Effingham, SC (F) Olympia, WA El Agba, Tunisia Bangi, Malaysia Bridgeview, IL France Trevose, PA (T) La Crosse, WI Izmit, Turkey Yangon, Myanmar Dixmoor, IL Dinslaken, Germany Spartanburg, SC (A) Worland, WY Osmaniye, Turkey Singapore (S) Kankakee, IL (2) Goldkronach, Germany Chippewa Falls, WI (T) Cabreuva, Brazil Dubai, UAE Bangpoo, Thailand (F) Roselle, IL Hilden, Germany Oshkosh, WI (F) Teresina, Brazil Botcherby, U.K.
(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.
Latta, SC Derrimut, Australia Orange, TX Kurri Kurri, Australia San Antonio, TX Bangalore, India (4) Danville, VA Dahej, India Forest, VA (2) Rudrapur, India Martinsville, VA Rudraram, India Woodland, WA Silvassa, India Cabreuva, Brazil Pohang, South Korea Halton Hills, Sriracha, Thailand (2) Canada (2) Amatlan de los Reyes, 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.
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.
(T) Uberaba, Brazil Danang, Vietnam Eden, NC Nairobi, Kenya Calgary, Canada Dong Nai, Vietnam (2) Salisbury, NC Heerlen, Netherlands Ontario, Canada Hanoi, Vietnam Newark, NJ Nuenen, Netherlands Santafe de Bogota, Vung Tau, Vietnam Cleveland, OH Zwijndrecht, Netherlands Colombia Loveland, OH Kosice, Slovakia Acayucan, Mexico West Chester, OH Burseryd, Sweden Chihuahua, Mexico Elizabethtown, PA Hjo, Sweden Ensenada, Mexico Hazleton, PA Sandared, Sweden Guadalajara, Mexico Imperial, PA Dietikon, Switzerland (2) Monterrey, Mexico (2) South Canaan, PA Merenschwand, Switzerland Orizaba, Mexico East Providence, RI (2) Izmir, Turkey Toluca, Mexico Darlington, SC Kocaeli, Turkey Greer, SC Dudley, U.K.
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.
ITEM 2. Properties As of December 31, 2024, the Company operated 189 facilities in 39 countries. The principal manufacturing facilities at December 31, 2024 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.
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.
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 66 of its manufacturing facilities at December 31, 2024.
Utilization of any particular facility varies based upon product demand. While it is not possible to measure with any degree of certainty or uniformity the productive capacity of these facilities, management believes that, if necessary, production can be increased at several existing facilities through the addition of personnel, capital equipment and, in some facilities, square footage available for production.
While it is not possible to measure with any degree of certainty or uniformity the productive capacity of these facilities, management believes that, if necessary, production can be increased at several existing facilities through the addition of personnel, capital equipment and, in some facilities, square footage available for production.
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.
Hat Yai, Thailand (F) Elkhart, IN Neunkirchen, Germany Kingston, Jamaica (F) Estancia, Brazil Peterborough, U.K. Nakhon Pathom, Thailand (F) Gary, IN Nurnberg, Germany Barbados, West Indies (F) Manaus, Brazil Nong Khae, Thailand (2) Florence, KY Weischlitz, Germany Shipley, U.K. (T) Ponta Grossa, Brazil Samrong, Thailand (F) Monroe, LA Gorey, Ireland Wortley, U.K.
Ongoing productivity improvements and cost reduction efforts in recent years have focused on upgrading and modernizing facilities to reduce costs, improve efficiency and productivity. The Company has also opened new facilities to meet increases in market demand for its products. These actions reflect the Company’s continued commitment to align manufacturing facilities to maintain its competitive position in its markets.
Ongoing productivity improvements and cost reduction efforts in recent years have focused on upgrading and modernizing facilities to reduce costs, improve efficiency and productivity. The Company has also opened new facilities to meet increases in market demand for its products.
(T) Rio Verde, Brazil Songkhla, Thailand (F) Eden, NC Nairobi, Kenya Wortley, U.K.
(T) Rio Verde, Brazil Songkhla, Thailand (F) Brighton, MI Waterford, Ireland Wisbech, U.K.
Removed
Bangpoo, Thailand (F) Elkhart, IN Neunkirchen, Germany Oshkosh, WI (F) Teresina, Brazil Peterborough, U.K.
Added
These actions reflect the Company’s continued commitment to align manufacturing facilities to maintain its competitive position in its markets. 21 Crown Holdings, Inc. Utilization of any particular facility varies based upon product demand.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeFurther information on these matters and other legal proceedings is presented within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the captions “Provision for Asbestos” and “Environmental Matters,” within the risk factor titled "The Company is subject to litigation risks which could negatively impact its operations and net income" and under Note O and Note P to the consolidated financial statements.
Biggest changeFurther information on these matters and other legal proceedings is presented within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the captions “Provision for Asbestos” and “Environmental Matters,” within the risk factor titled "The Company is subject to litigation risks which could negatively impact its operations and net income" and under Note P and Note Q to the consolidated financial statements.
Approximately 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.
Approximately ninety days after the stock purchase, this U.S. company sold its insulation assets and was later merged into Crown Cork. At December 31, 2024, the accrual for pending and future asbestos claims and related legal costs that are probable and estimable was $185 million.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOn 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.
Biggest changeDetails regarding the Company’s policy as to payment of cash dividends and repurchase of shares are set forth under Note U to the consolidated financial statements included in this Annual Report.
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.
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.
ITEM 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.
ITEM 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 CC K. On February 28, 2025 there were 3,270 registered shareholders of the Registrant’s common stock, including 844 participants in the Company's Employee Stock Purchase Plan.
Removed
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.
Added
Issuer Purchases of Equity Securities The following table provides information about the Company's purchases of equity securities during the three months ending December 31, 2024. The table exclude s 38 of the Company's shares surrendered to cover taxes on the vesting of restricted stock.
Added
Total number of shares purchased Average price per share Total number of shares purchased as part of publicly announced programs (1) Approximate dollar value of shares that may yet be purchased under the programs as of the end of the period (millions of dollars) October — $ — — $ 1,894 November — $ — — $ 1,894 December 1,126,419 $ 89.19 1,126,419 $ 1,793 1,126,419 1,126,419 (1) In July 2024, the Company's Board of Directors authorized the repurchase of an aggregate amount of $2,000 of the Company's common stock through the end of 2027.

Item 6. [Reserved]

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

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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.
Biggest changeContainers & Packaging Index (c) December 31, 2019 2020 2021 2022 2023 2024 Crown Holdings $ 100 $ 138 $ 154 $ 115 $ 131 $ 119 S&P 500 Index 100 118 152 125 158 197 Dow Jones U.S.
(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.
(c) Industry index is weighted by market capitalization and, as of December 31, 2024, was composed of Crown Holdings, Amcor, AptarGroup, Avery Dennison, Ball, Berry Global, Graphic Packaging, International Paper, Packaging Corp. of America, Sealed Air, Silgan, Smurfit Westrock and Sonoco. 25 Crown Holdings, Inc.
(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.
(b) Assumes that the value of the investment in Crown Holdings common stock and each index was $100 on December 31, 2019 and that all dividends were reinvested.
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.
Containers & Packaging Index 100 121 134 110 119 137 (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

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Biggest changeAt December 31, 2023, the Company had additional contracts with an aggregate notional value of $24 to purchase or sell other currencies, primarily Asian currencies, including the Chinese yuan, Indonesian rupiah, Malaysian ringgit, Singapore dollar and Thai baht; European currencies, including the Polish zloty and the New Zealand dollar.
Biggest changeBuy/Sell Contract amount Contract fair value gain/(loss) Average contractual exchange rate Euro/Sterling $ 188 $ (3) 1.18 Sterling/Euro 121 2 0.85 Euro/Swiss franc 77 — 1.09 U.S. dollars/Brazilian real 88 3 0.17 Euro/U.S. dollars 48 (2) 0.92 Singapore dollars/U.S. dollars 50 (1) 1.33 Euro/Danish krone 38 — 0.13 Euro/Swedish krona 36 — 0.09 U.S. dollars/Thai baht 52 — 0.03 Canadian dollars/U.S. dollars 35 — 1.44 U.S. dollars/Turkish lira 32 (3) 0.02 Turkish lira/U.S. dollars 22 1 39.84 Euro/Australian dollars 6 — 0.58 $ 793 $ (3) At December 31, 2024, the Company had additional contracts with an aggregate notional value of $15 to purchase or sell other currencies, primarily Asian currencies, including the Chinese yuan, Indonesian rupiah, Malaysian ringgit, Singapore dollar and Thai baht; European currencies, including the Polish zloty and the New Zealand dollar.
OTHER PENSION AND POSTRETIREMENT Other pension and postretirement was an expense of $49 in 2023 as compared to a benefit of $16 in 2022 due to higher post-retirement expense as unamortized gains from prior year plan amendments are now fully amortized and higher pension expense due to higher interest rates and lower expected return on plan assets.
Other pension and postretirement was an expense of $49 in 2023 as compared to a benefit of $16 in 2022 due to higher post-retirement expense as unamortized gains from prior year plan amendments are now fully amortized and higher pension expense due to higher interest rates and lower expected return on plan assets.
FORWARD LOOKING STATEMENTS Statements in this Annual Report, including those in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the discussions of the provision for asbestos under Note O and other contingencies under Note P to the consolidated financial statements included in this Annual Report and in discussions incorporated by reference into this Annual Report (including, but not limited to, those in the section titled “Compensation Discussion and Analysis” in the Company’s Proxy Statement), which are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto), are “forward-looking statements,” within the meaning of the federal securities laws.
FORWARD LOOKING STATEMENTS Statements in this Annual Report, including those in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the discussions of the provision for asbestos under Note P and other contingencies under Note Q to the consolidated financial statements included in this Annual Report and in discussions incorporated by reference into this Annual Report (including, but not limited to, those in the section titled “Compensation Discussion and Analysis” in the Company’s Proxy Statement), which are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto), are “forward-looking statements,” within the meaning of the federal securities laws.
To meet volume requirements the Company added additional line capacity in Agoncillo, Spain, a new greenfield facility in Peterborough, U.K. and acquired Helvetia Packaging AG, a beverage can and end manufacturing facility in Saarlouis, Germany.
To meet volume requirements, in 2023 the Company added additional line capacity in Agoncillo, Spain, a new greenfield facility in Peterborough, U.K. and acquired Helvetia Packaging AG, a beverage can and end manufacturing facility in Saarlouis, Germany.
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.
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 2024 and determined that no adjustments to the carrying value of goodwill were necessary.
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.
See Note T 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.
See Note O to the consolidated financial statements for additional information regarding the provision for asbestos-related costs. At the end of each quarter, the Company considers whether there have been any material developments that would cause it to update its asbestos accrual calculations.
See Note P to the consolidated financial statements for additional information regarding the provision for asbestos-related costs. At the end of each quarter, the Company considers whether there have been any material developments that would cause it to update its asbestos accrual calculations.
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.
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.
Important 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.
Important 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 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 40 Crown Holdings, Inc. 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; 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.
In Brazil and Mexico, the Company's sales unit volumes have increased in recent years primarily due to market growth driven by increased per capita incomes and consumption, combined with an increased preference for cans over other forms of beverage packaging.
In Brazil and Mexico, the Company's volumes have increased in recent years primarily due to market growth driven by increased per capita incomes and consumption, combined with an increased preference for cans over other forms of beverage packaging.
In addition, the Company's manufacturing facilities are dependent, to varying degrees, upon the availability of water and processed energy, such as natural gas and electricity. See Note N to the consolidated financial statements for further information on the Company’s derivative financial instruments.
In addition, the Company's manufacturing facilities are dependent, to varying degrees, upon the availability of water and processed energy, such as natural gas and electricity. See Note O to the consolidated financial statements for further information on the Company’s derivative financial instruments.
(2) Pension projections require the use of numerous estimates and assumptions such as discount rates, rates of return on plan assets, compensation increases, health care cost increases, mortality and employee turnover and therefore projected contributions been provided for only five years. Our long term debt obligations, including fixed and variable rate debt, are further discussed in Note M .
(2) Pension projections require the use of numerous estimates and assumptions such as discount rates, rates of return on plan assets, compensation increases, health care cost increases, mortality and employee turnover and therefore projected contributions been provided for only five years. Long term debt obligations, including fixed and variable rate debt, are further discussed in Note N .
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 and had net sales of $9 for the year-ended December 31, 2023.
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 and had net sales of $6 for the year-ended December 31, 2024.
Amortizable losses are being recognized over either the average expected life of inactive employees or the remaining service life of active participants depending on the status of the individual plans. The weighted average amortization periods range between 6 - 16 years.
Amortizable losses are being recognized over either the average expected life of inactive employees or the remaining service life of active participants depending on the status of the individual plans. The weighted average amortization periods range between 8 - 16 years.
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.
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 head count by approximately 600 employees.
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.
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, 2024 would change 2025 pension expense by approximately $4 and postretirement expense by less than $1.
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.
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.
Any impairment loss is measured by comparing the carrying amount of the asset to its fair value. The Company’s estimates of future cash flows involve assumptions concerning future operating performance, economic conditions and technological changes that may affect the future useful lives of the assets. These estimates may differ from actual cash flows or useful lives.
Any impairment loss is measured by comparing the carrying amount of the asset to its fair value. The Company’s estimates of future cash flows involve assumptions concerning future operating performance, economic conditions and 38 Crown Holdings, Inc. technological changes that may affect the future useful lives of the assets. These estimates may differ from actual cash flows or useful lives.
This provision may not be effective to protect those guarantees from being avoided under fraudulent transfer or conveyance law, or it may reduce that guarantor’s obligation to an amount that effectively makes its guarantee worthless, and we cannot predict whether a court will ultimately find it to be effective.
This provision may not be effective to protect those guarantees from being avoided under fraudulent transfer or conveyance law, or it may reduce that guarantor’s obligation to an amount that effectively makes its guarantee worthless, and we cannot predict whether a court will ultimately find it to be effective. 35 Crown Holdings, Inc.
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 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 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.
The actual effect of a 0.25% increase in these floating interest rates could be more than $7 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, 2024.
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.
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.
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.
The aggregate fair value of these contracts was a loss of $2. At December 31, 2024, 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.
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.
A 10% decrease in these two factors at the same time would decrease the estimated liability at December 31, 2024 by $35. 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.
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.
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.
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.
As of December 31, 2024, the Company had $1.8 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 $7 million before tax.
European Beverage The Company's European Beverage segment manufactures aluminum beverage cans and ends and supplies a variety of customers from its operations throughout Europe, the Middle East and North Africa . In recent years, the European beverage can market has been growing due to a market shift to cans versus other packaging formats.
European Beverage The Company's European Beverage segment manufactures aluminum beverage cans and ends and supplies a variety of customers from its operations throughout Europe, the Middle East and North Africa. In recent years, the European beverage can market has been growing due to consumer focus on sustainability benefits of aluminum and a market shift to cans versus other packaging formats.
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.
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 and the Thai baht in the Company's Asia Pacific segment.
NET SALES AND SEGMENT INCOME 2023 2022 2021 Net sales $12,010 $12,943 $11,394 Year ended December 31, 2023 compared to 2022 Net sales decreased primarily due to $720 from the pass-through of lower aluminum, steel and other commodity costs and lower overall volumes in European Beverage, Asia Pacific, Transit Packaging and Other segments, partially offset by higher beverage can volumes in the Americas Beverage segment and favorable foreign currency translation of $77.
Year ended December 31, 2023 compared to 2022 Net sales decreased primarily due to $720 from the pass-through of lower aluminum, steel and other commodity costs and lower overall volumes in European Beverage, Asia Pacific, Transit Packaging and Other segments, partially offset by higher beverage can volumes in the Americas Beverage segment and favorable foreign currency translation of $77.
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.
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 Q to the consolidated financial statements for additional information on environmental matters including the Company's accrual for environmental remediation costs.
The Company primarily manages its risk to adverse commodity price fluctuations and surcharges through contracts that pass through raw material costs to customers. The company also uses commodity forward contracts to manage its exposure to these raw material costs.
The Company primarily manages its 36 Crown Holdings, Inc. risk to adverse commodity price fluctuations and surcharges through contracts that pass through raw material costs to customers. The company also uses commodity forward contracts to manage its exposure to these raw material costs.
The Company estimates its liability without limitation to a specified time period and provides for the estimated amounts expected to be paid related to outstanding claims, projected future claims and legal costs.
The Company estimates its liability without limitation to a specified time period and provides for the estimated amounts expected to be paid related to outstanding claims, projected future claims and legal costs. 37 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 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 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 2024, consumption of aluminum and steel represented 46% and 7% of the Company’s consolidated cost of products sold, excluding depreciation and amortization.
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.
The U.S. plan’s assumed rate of return was 7.15% in 2024. A 0.50% change in the expected rates of return would change 2025 pension expense by approximately $2.
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.
Of the cash and cash equivalents located outside the U.S., $304 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, 2024, the Company had available capacity of $1,614.
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.
Property, plant and equipment in Myanmar as of December 31, 2024 was $49, including $24 of land and buildings and $25 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.
Based on the Company’s experience with the duration over which equipment and buildings of its aluminum beverage can business can be utilized, the Company recently engaged a third-party appraiser to assist in this review and, as a result, will increase the estimated useful lives of buildings up to 50 years and machinery and equipment up to 23 years.
Based on the Company’s experience with the duration over which equipment and buildings of its aluminum beverage can business can be utilized, the Company engaged a third-party appraiser to assist in this review and, as a result, increased the estimated useful lives of buildings up to 50 years and machinery and equipment up to 23 years effective January 1, 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, 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.
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, 2024 by $18. A 10% increase in these two factors at the same time would increase the estimated liability at December 31, 2024 by $39.
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.
A 0.50% change in the discount rates from those used at December 31, 2024 would have changed the pension benefit obligation by approximately $30 and the postretirement benefit obligation by approximately $3 as of December 31, 2024. See Note S to the consolidated financial statements for additional information on pension and postretirement benefit obligations and assumptions.
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.
As of December 31, 2024, the Company had a pre-tax unrecognized net loss in accumulated other comprehensive income of $109 related to its pension plans and a pre-tax unrecognized net gain in accumulated other comprehensive income of $5 related to its other postretirement benefit plans.
Corporate and unallocated Corporate and unallocated items include corporate and administrative costs, research and development, and unallocated items such as stock-based compensation and insurance costs. 2023 2022 2021 Corporate and unallocated $ (131) $ (115) $ (124) Corporate and unallocated costs increased from 2022 primarily due to higher property insurance costs and incentive compensation costs in 2023.
Corporate and unallocated Corporate and unallocated items include corporate and administrative costs, research and development, and unallocated items such as stock-based compensation and insurance costs. 2024 2023 2022 Corporate and unallocated $ (165) $ (131) $ (115) Corporate and unallocated costs increased from 2023 primarily due to higher incentive compensation, including stock-based compensation.
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.
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.
In the fo urth quarter of 2023, the Company announced the closure of its beverage can facilities in Ho Chi Minh City, Vietnam and Singapore with capacity relocated to the Company's Vung Tau, Vietnam facility. 28 Crown Holdings, Inc.
In the fo urth quarter of 2023, the Company announced the closure of its beverage can facilities in Ho Chi Minh City, Vietnam and Singapore with capacity relocated to the Company's Vung Tau, Vietnam facility and in the fourth quarter of 2024, the Company announced the closure of its beverage can facility in Sihanoukville, Cambodia.
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.
As of December 31, 2024, the Company had forward commodity contracts to hedge aluminum price fluctuations with a notional value of $73 and a net gain of $7. The maturities of the commodity contracts closely correlate to the anticipated purchases of those commodities.
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.
The Company’s pension expense for the year ended December 31, 2024 included charges of $34 for the amortization of accumulated net losses, and the Company estimates charges of $10 in 2025.
To meet volume requirements in these markets, the Company added additional line capacity in Olympia, Washington (2021), Rio Verde, Brazil (2021) and Monterrey, Mexico (2022) and new greenfield facilities in Bowling Green, Kentucky (2021), Uberaba, Brazil (2022), Martinsville, Virginia (2022) and Mesquite, Nevada (2023).
To meet volume requirements in these markets, the Company added additional line capacity in Monterrey, Mexico (2022) and new greenfield facilities in Uberaba, Brazil (2022), Martinsville, Virginia (2022) and Mesquite, Nevada (2023).
The Company could have borrowed this amount at December 31, 2023 and still have been in compliance with its leverage ratio covenant.
The Company could have borrowed this amount at December 31, 2024 and still have been in compliance with its leverage ratio covenant. 32 Crown Holdings, Inc.
Additionally, in December 2023, the Company issued €500 principal amount of 4.75% senior unsecured notes due 2029 and used a portion of the proceeds to pay down the U.S. dollar term loan facility. In March 2022, the Company issued $500 principal amount of 5.250% senior unsecured notes due 2030.
Additionally, in December 2023, the Company issued €500 principal amount of 4.75% senior unsecured notes due 2029 and used a portion of the proceeds to pay down the U.S. dollar term loan facility. The Company also repaid revolver borrowings of $329 in 2023.
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.
As of December 31, 2024, approximately 60% 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 $14,300 in 2022, $15,800 in 2023 and $17,700 in 2024.
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.
The Company currently expects capital expenditures in 2025 to be approximately $450. At December 31, 2024, the Company had approximately $48 of capital commitments primarily related to its Americas Beverage and European Beverage segments. The Company expects to fund these commitments primarily through cash generated from operations.
Corporate and unallocated costs decreased from 2021 to 2022 primarily due to lower incentive compensation costs. DEPRECIATION AND AMORTIZATION The Company periodically reviews the useful lives of property, plant and equipment.
Corporate and unallocated costs increased from 2022 primarily due to higher property insurance costs and incentive compensation costs in 2023. DEPRECIATION AND AMORTIZATION The Company periodically reviews the useful lives of property, plant and equipment.
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.
The fair value of these contracts at December 31, 2024 was a net gain of $86. Total future payments of long-term debt obligations at December 31, 2024 include $3,448 of U.S. dollar-denominated debt, $2,713 of euro-denominated debt and $10 of debt denominated in other currencies.
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'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 Indian rupee, the Japanese yen, the Mexican peso and the Brazilian real. 26 Crown Holdings, Inc.
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.
Crown Cork Obligor Group December 31, 2024 Net sales $ — Gross Profit — Income from operations 1 Net income 1 (140) Net income attributable to Crown Holdings 1 (140) (1) Includes $55 of expense related to intercompany interest with non-guarantor subsidiaries. 34 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.
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.
Segment income increas ed primarily due to contractual pass-through mechanisms put in place to recover prior costs net of current year expenses and higher volumes and customer mix, partially offset by $ 19 higher depreciation associated with recent capacity expansions. Year ended December 31, 2022 compared to 2021 Net sales increased primarily due to the pass-through of higher aluminum costs.
Segment income increas ed primarily due to contractual pass-through mechanisms put in place to recover prior costs net of current year expenses and higher volumes and customer mix, partially offset by $ 19 higher depreciation associated with recent capacity expansions. 27 Crown Holdings, Inc.
Supplemental Guarantor Financial Information As disclosed in Note M , the Company and certain of its 100% directly or indirectly owned subsidiaries provide guarantees of senior notes and debentures issued by other 100% directly or indirectly owned subsidiaries.
The guarantees and agreements are further discussed under Note Q to the consolidated financial statements. Supplemental Guarantor Financial Information As disclosed in Note N , the Company and certain of its 100% directly or indirectly owned subsidiaries provide guarantees of senior notes and debentures issued by other 100% directly or indirectly owned subsidiaries.
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.
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.
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. 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.
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.
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.
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. To meet volume requirements in Southeast Asia, the Company added additional line capacity in Phnom Penh, Cambodia (2022).
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.
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. Segment income decreased primarily due to lower volumes.
Net sales and segment income in the European Beverage segment were as follows: 2023 2022 2021 Net sales $ 1,939 $ 2,114 $ 1,843 Segment income 199 123 224 Year ended December 31, 2023 compared to 2022 Net sales decreased primarily due to 9% lower volumes and the pass-through of lower aluminum costs of $120, partially offset by the contractual recovery of prior years' inflationary cost increases and favorable foreign currency of $24.
Year ended December 31, 2023 compared to 2022 Net sales decreased primarily due to 9% lower volumes and the pass-through of lower aluminum costs of $120, partially offset by the contractual recovery of prior years' inflationary cost increases and favorable foreign currency of $24.
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.
Foreign exchange contracts generally mature within twelve months. The table below provides information in U.S. dollars as of December 31, 2024 about the Company’s forward currency exchange contracts. The contracts primarily hedge anticipated transactions, trade payables and receivables, unrecognized firm commitments and intercompany debt.
Net sales and segment income in Other were as follows: 2023 2022 2021 Net sales $ 1,371 $ 1,543 $ 1,258 Segment income 117 240 144 Year ended December 31, 2023 compared to 2022 Net sales decreased primarily due to lower food and aerosol volumes of 7% and 23%, respectively.
Segment income decreased primarily due to lower volumes. Year ended December 31, 2023 compared to 2022 Net sales decreased primarily due to lower food and aerosol volumes of 7% and 23%, respectively.
The contract with no amount in the average contractual exchange rate has an exchange rate less than $.01.
The contracts with no amounts in the fair value column have a fair value of less than $1. The contract with no amount in the average contractual exchange rate has an exchange rate less than $.01.
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 generally attempts to mitigate aluminum and steel price risk by matching its purchase obligations with its sales agreements. 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.
Other Other includes the Company's food can, aerosol can and closures businesses in North America, and beverage tooling and equipment operations in the U.S. and U.K.. In 2021, the Company commenced operations at a new food can plant in Dubuque, Iowa and on a new food can line in its Hanover, Pennsylvania plant.
Other Other includes the Company's food can, aerosol can and closures businesses in North America, and beverage tooling and equipment operations in the U.S. and U.K.. The Company added a third two-piece food can line to its Owatonna, Minnesota plant in 2022 and a pet food can line to its Dubuque, Iowa plant in 2024.
RESTRUCTURING AND OTHER, NET In 2023, the $114 charge from restructuring and other, net, included asset impairments, termination benefits and other exit costs primarily related to plant closures in the Americas Beverage, Asia Pacific and Other segments. See Note L for additional information.
In 2023, the $114 charge from restructuring and other, net, included asset impairments, termination benefits and other exit costs primarily related to plant closures in the Americas Beverage, Asia Pacific and Other segments. See Note M for additional details. These actions reduced headcount by approximately 650 employees and annual savings were approximately $35. 30 Crown Holdings, Inc.
This action is expected to result in annual savings of approximately $60. There can be no assurance that pre-tax savings amounts above will be realized. The Company continues to identify cost reduction initiatives in its businesses and it is possible that the Company may record additional restructuring charges in the future.
The annual savings were approximately $ 60. The Company continues to identify cost reduction initiatives in its businesses and it is possible that the Company may record additional restructuring charges in the future.
The standard requires disclosure of specific categories within the effective tax rate reconciliation and details about significant reconciling items, subject to a quantitative threshold. The standard also requires information on income taxes paid disaggregated by federal, state and foreign based on a quantitative threshold. The standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted.
The standard also requires information on income taxes paid disaggregated by federal, state and foreign based on a quantitative threshold. The standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The standard is applied prospectively with an option for retrospective adoption.
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.
NET SALES AND SEGMENT INCOME 2024 2023 2022 Net sales $11,801 $12,010 $12,943 Year ended December 31, 2024 compared to 2023 Net sales decreased primarily due to $196 from the pass-through of lower aluminum, steel and other commodity costs, unfavorable foreign currency translation of $23, and lower volumes in Transit Packaging, Asia Pacific and Other segments, partially offset by 7% higher beverage can volumes in both Americas and European Beverage.
Net sales and segment income in the Transit Packaging segment were as follows: 2023 2022 2021 Net sales $ 2,256 2,545 $ 2,530 Segment income 331 281 318 Year ended December 31, 2023 compared to 2022 Net sales decreased primarily d ue to $219 from lower volumes, mainly protective solutions and steel and plastic consumables, and the pass-through of lower raw material prices.
Year ended December 31, 2023 compared to 2022 Net sales decreased primarily d ue to $219 from lower volumes, mainly protective solutions and steel and plastic consumables, and the pass-through of lower raw material prices. Segment income increased primarily due to approxim ately $50 of cost savings from headcount reductions across the business.
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.
The Company also uses commodity forward contracts to manage its exposure to raw material costs. 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 standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adopting this standard on its disclosures. In December 2023, the Financial Accounting Standards Board issued a final standard on improvements to income tax disclosures.
The Company is currently evaluating the impact of adopting this standard on its disclosures. In December 2023, the Financial Accounting Standards Board issued a final standard on improvements to income tax disclosures. The standard requires disclosure of specific categories within the effective tax rate reconciliation and details about significant reconciling items, subject to a quantitative threshold.
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.
LIQUIDITY As of December 31, 2024, $676 of the Company's $918 in cash and cash equivalents was located outside the U.S. The Company is not aware of any legal restrictions under foreign law that materially impact its access to cash held outside the U.S.
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.
December 31, 2024 Current assets $ 47 Non-current assets 22 Current liabilities 68 Non-current liabilities 1 6,647 (1) Includes payables of $5,905 due to non-guarantor subsidiaries Crown Americas Obligor Group December 31, 2024 Net sales 1 $ 4,840 Gross profit 2 799 Income from operations 2 305 Net income from continuing operations 3 (385) Net income attributable to Crown Holdings 3 (385) (1) Includes $433 of sales to non-guarantor subsidiaries (2) Includes $43 of gross profit related to sales to non-guarantor subsidiaries (3) Includes $27 of expense related to intercompany interest and technology royalties with non-guarantor subsidiaries December 31, 2024 Current assets 1 $ 1,056 Non-current assets 2 3,756 Current liabilities 3 1,158 Non-current liabilities 4 6,136 (1) Includes receivables of $32 due from non-guarantor subsidiaries (2) Includes receivables of $167 due from non-guarantor subsidiaries (3) Includes payables of $20 due to non-guarantor subsidiaries (4) Includes payables of $2,242 due to non-guarantor subsidiaries The senior notes are structurally subordinated to all indebtedness of the Company’s non-guarantor subsidiaries.
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.
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. 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.
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.
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.
The Company's strategy is anchored by strong cash flow generation and a healthy balance sheet with a targeted net leverage ratio in the range of 3.0x to 3.5x adjusted EBITDA (a non-GAAP measure).
The Company's strategy is anchored by strong cash flow generation and a healthy balance sheet with a long-term net leverage target of 2.5x adjusted EBITDA (a non-GAAP measure). The Company believes it has the flexibility and resources to fund growth, repay debt and return excess cash flow to shareholders in the future.
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.
To date the war between Russia and Ukraine and the conflicts in the Middle East have not had a direct material impact on the Company's business, financial condition, or results of operations.

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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. 42 Crown Holdings, Inc.
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. 41 Crown Holdings, Inc.

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