Sales Performance - Sales of corrugated packaging products to external customers accounted for 48.1%, 42.3%, and 43.2% of net sales in fiscal 2023, 2022, and 2021, respectively[23] - Sales of consumer packaging products to external customers accounted for 24.2%, 23.2%, and 23.5% of net sales in fiscal 2023, 2022, and 2021, respectively[26] - Sales of global paper products to external customers accounted for 21.5%, 27.9%, and 26.6% of net sales in fiscal 2023, 2022, and 2021, respectively[27] - Sales in the Distribution segment to external customers accounted for 6.2%, 6.6%, and 6.7% of net sales in fiscal 2023, 2022, and 2021, respectively[28] - Non-U.S. operations accounted for 24.4% of net sales in fiscal 2023, up from 18.3% in both 2022 and 2021[87] Financial Outlook - The company expects more earnings and cash flows to be generated in the second half of the fiscal year than in the first half due to seasonal demand variations[29] - The company estimates an investment of approximately $103 million for capital expenditures during fiscal 2024 for environmental compliance[47] - Freight costs continued to increase in fiscal 2023 compared to fiscal 2022, impacting overall operational expenses[34] Sustainability Initiatives - The overall fiber sourcing for all mills is approximately 60% virgin and 40% recycled, with recycled fiber costs lower in fiscal 2023 compared to fiscal 2022[31] - During fiscal 2023, the recycling operations helped divert approximately six million tons of paper and packaging from landfills[51] - The company aims to reduce absolute Scope 1 and 2 GHG emissions by 27.5% by 2030 from a 2019 baseline[55] - The company plans to invest in energy efficiency projects, fuel switching, and low carbon technology to achieve its science-based targets (SBT)[56] - The company’s sustainability program is built on three pillars: supporting people and communities, bettering the planet, and innovating for customers[54] - The company’s board of directors includes six members with sustainability experience, ensuring governance oversight on sustainability matters[52] - The company has systems in place for tracking GHG emissions and monitoring climate-related laws and regulations[62] - The company’s sustainability reports are prepared in accordance with the Global Reporting Initiative and include information on GHG targets and strategies[63] Workforce and Diversity - Approximately 56,100 employees were employed as of September 30, 2023, with 90% in sales and operations[68] - 24% of the global workforce is comprised of women, and 36% of the U.S. workforce consists of people of color[75] - The company has a multi-year Diversity, Inclusion, Equity and Belonging action plan to enhance workforce diversity and inclusion[75] - Approximately 71% of hourly employees in the U.S. and Canada are covered by collective bargaining agreements[68] - The company has implemented part-time work opportunities and benefits for employees working 20 hours or more per week starting January 2023[86] - Approximately 65% of the workforce is located in the U.S. and Canada, while 35% is in Europe, South America, Mexico, and Asia Pacific[68] Risk Management - The company emphasizes the importance of forward-looking statements, which are based on current expectations and involve various risks and uncertainties[90] - Key risks include economic conditions, supply chain disruptions, and competition, which could materially affect future performance[91] - The company is focused on sustainability targets and commitments, with potential impacts from climate change on operations[91] - The proposed Transaction may lead to integration difficulties and management focus being diverted, impacting overall business performance[91] - The company is actively managing risks related to indebtedness and potential increases in interest rates[91] - The company acknowledges the potential for adverse effects from information security incidents and the importance of business continuity plans[91] Governance and Compliance - The company has made available its SEC filings and corporate governance documents on its website for stakeholders[88] - The company is committed to providing copies of governance documents upon request from stockholders[89] - The company’s capital project approval process includes a tool to assess the impact of proposed investments on GHG emissions, water intake, and solid waste generation[57] - The company has established procedures for managing asbestos-containing materials in facilities where they are present, despite not using asbestos in manufacturing[44]

Financial Performance - Net sales for Q3 fiscal 2023 were $5.1 billion, a decrease of $398.6 million or 7.2% compared to Q3 fiscal 2022[197]. - Net income attributable to common stockholders was $202.0 million for Q3 fiscal 2023, down from $377.9 million in Q3 fiscal 2022, a decrease of $175.9 million[198]. - Consolidated Adjusted EBITDA for Q3 fiscal 2023 was $801.9 million, a decrease of $203.6 million or 20.2% from $1.0 billion in Q3 fiscal 2022[198]. - Net sales for the third quarter of fiscal 2023 decreased by $398.6 million, or 7.2%, compared to the same quarter in fiscal 2022, primarily due to lower volumes, partially offset by increased sales from the Mexico Acquisition and higher selling price/mix[211]. - For the nine months ended June 30, 2023, net sales decreased by $532.2 million compared to the prior year period, driven by lower volumes and unfavorable foreign exchange rates, but offset by higher selling price/mix and contributions from the Mexico Acquisition[212]. - Earnings per diluted share for Q3 2023 was $0.79, down from $1.47 in Q3 2022, with a year-to-date loss of $(6.88) compared to $2.28 in the same period last year[306]. - Adjusted Earnings Per Diluted Share for Q3 2023 was $0.89, a decrease from $1.54 in Q3 2022, while year-to-date adjusted earnings were $2.21 compared to $3.34 in the prior year[306]. - The company recorded a net loss of $27.8 million for the nine months ended June 30, 2023, which included a pre-tax goodwill impairment charge of $107.8 million[298]. Costs and Expenses - Cost of goods sold in the third quarter of fiscal 2023 decreased by $260.7 million compared to the prior year quarter, attributed to lower volumes and cost savings, despite higher wage and benefit costs[213]. - Selling, general and administrative expenses (SG&A) excluding intangible amortization increased by $37.2 million in the third quarter of fiscal 2023, mainly due to costs related to the Mexico Acquisition and business systems transformation[216]. - Interest expense, net for the third quarter of fiscal 2023 was $108.1 million, an increase from $78.5 million in the prior year quarter, primarily due to higher interest rates and increased debt from the Mexico Acquisition[226]. - Total restructuring and other costs for Q3 2023 amounted to $47.6 million, significantly lower than $0.6 million in Q3 2022, while year-to-date costs were $525.3 million compared to $366.3 million in the previous year[307]. Cash Flow and Investments - Net cash provided by operating activities decreased to $1.2 billion in the nine months ended June 30, 2023, down from $1.5 billion in the same period of 2022, a decrease of $236.5 million[200]. - Net cash used for investing activities in the nine months ended June 30, 2023, was $1,522.0 million, primarily due to $853.5 million for business acquisitions and $818.3 million for capital expenditures[283]. - Capital expenditures for fiscal 2023 are now expected to be approximately $1.0 billion, with potential additional investments of up to $0.5 billion per year in strategic capital projects[284]. - Net cash provided by financing activities in the nine months ended June 30, 2023, was $336.2 million, mainly from a net increase in debt of $561.1 million, offset by cash dividends of $210.8 million[285]. Acquisitions and Restructuring - The Mexico Acquisition contributed to increased sales, partially offsetting lower volumes[197]. - The company expects restructuring charges related to the permanent closure of the Tacoma, WA containerboard mill[202]. - The Mexico Acquisition added approximately 1.0 million tons of mill capacity to the pre-acquisition capacity of approximately 15.2 million tons[313]. - The increase in market risk due to the acquisition has been offset by mill closures announced during fiscal 2023[313]. Market and Economic Conditions - The company anticipates unfavorable non-cash pension expense of approximately $40 million in Q4 fiscal 2023[202]. - The company anticipates ongoing challenges and uncertainties in the market, which may impact future performance and results[310]. - If market interest rates increase by 100 basis points, the annual interest expense would rise by approximately $21 million[313]. - A 10% change in the price per MMBtu would impact the Cost of Goods Sold by approximately $6 million[313]. Taxation - The effective tax rate for the three months ended June 30, 2023 was 24.9%, down from 25.9% for the same period in 2022, with an income tax expense of $67.3 million[237]. - The company recorded an income tax benefit of $41.2 million for the nine months ended June 30, 2023, compared to an expense of $193.1 million for the same period in 2022, resulting in an effective tax rate of 2.3% versus 24.2%[238]. - The cash tax rate for fiscal 2024 is expected to be higher than the income tax rate due to changes in tax legislation affecting the amortization of research costs[289]. Segment Performance - Corrugated Packaging shipments for the nine months ended June 30, 2023, totaled 5,039.0 thousand tons, a slight increase from 4,903.2 thousand tons in the prior year[241]. - Net sales for the Corrugated Packaging segment increased by $609.0 million in the nine months ended June 30, 2023, driven by $770.2 million from the Mexico Acquisition and $386.4 million from higher selling price/mix[245]. - Adjusted EBITDA for the Corrugated Packaging segment increased by $163.8 million in the nine months ended June 30, 2023, primarily due to a $385.5 million margin impact from higher selling price/mix[247]. - Consumer Packaging shipments decreased to 1,063.0 thousand tons for the nine months ended June 30, 2023, down from 1,174.8 thousand tons in the prior year[250]. - Net sales for the Consumer Packaging segment increased by $71.2 million in the nine months ended June 30, 2023, mainly due to $363.2 million from higher selling price/mix[253]. - Adjusted EBITDA for the Consumer Packaging segment increased by $21.9 million in the nine months ended June 30, 2023, primarily due to a $352.2 million margin impact from higher selling price/mix[255]. - Global Paper shipments for the nine months ended June 30, 2023, totaled 3,397.5 thousand tons, a decrease from 4,806.8 thousand tons in the prior year[257]. - Global Paper segment net sales decreased by $544.6 million in Q3 2023 compared to Q3 2022, primarily due to $484.2 million of lower volumes and $35.5 million of lower selling price/mix[260]. - For the nine months ended June 30, 2023, Global Paper segment net sales decreased by $1,143.5 million, mainly due to $1,184.4 million of lower volumes, partially offset by $120.7 million of higher selling price/mix[261]. - Adjusted EBITDA for the Global Paper segment in Q3 2023 decreased by $222.0 million compared to Q3 2022, primarily due to $141.7 million of lower volumes and $56.2 million impact from economic downtime[262]. - For the nine months ended June 30, 2023, Global Paper segment Adjusted EBITDA decreased by $418.6 million, mainly due to $360.7 million of lower volumes and $130.7 million impact from economic downtime[263]. - Distribution segment net sales decreased by $39.9 million in Q3 2023 compared to Q3 2022, primarily due to $37.5 million of lower volumes[267]. - For the nine months ended June 30, 2023, Distribution segment net sales decreased by $98.2 million, primarily due to $115.2 million of lower volumes, partially offset by $14.4 million of higher selling price/mix[268]. - Adjusted EBITDA for the Distribution segment in Q3 2023 decreased by $13.2 million compared to Q3 2022, primarily due to $11.3 million of lower volumes and $2.4 million of increased net cost inflation[270]. - For the nine months ended June 30, 2023, Distribution segment Adjusted EBITDA decreased by $27.6 million, primarily due to $32.9 million of lower volumes and $18.4 million of increased net cost inflation[271].

Financial Data and Key Metrics Changes - Net sales for Q3 2023 were $5.1 billion, a decrease of 7.2% year over year [21] - Consolidated adjusted EBITDA was $802 million, down 20.2% year over year, with an adjusted EBITDA margin of 15.7%, a decline of 250 basis points [21] - Adjusted EPS was $0.89, reflecting strong execution despite challenging comparisons with the prior year [6] Business Line Data and Key Metrics Changes - **Corrugated Packaging**: Sales were $2.5 billion, an increase of 7.7% year over year, driven by the Mexico acquisition and strong price and mix [23] - **Consumer Packaging**: Segment sales were $1.3 billion, a decline of 1.5% year over year, with adjusted EBITDA margin at 18.4%, a decrease of 10 basis points [26] - **Global Paper**: Sales decreased by 33.8% year over year to $1.1 billion, with adjusted EBITDA declining 55.6% [29] Market Data and Key Metrics Changes - North American shipments per day were stable sequentially, with mid-single-digit improvement noted in July [6] - Consumer Packaging market volumes were down due to inventory reductions and inflation impacting demand [6] Company Strategy and Development Direction - The company is focused on cost savings, targeting over $1 billion in savings by the end of fiscal 2025, with $450 million in run rate savings expected by the end of fiscal 2023 [9][10] - Strategic mill closures are aimed at improving overall profitability and reallocating capital to higher return projects [12][13] - The company is investing in sustainable packaging solutions and expanding its machinery business to drive growth [16][19] Management's Comments on Operating Environment and Future Outlook - Management expects improvement in the first half of fiscal 2024 due to inventory rebalancing and moderating inflation [7][28] - Long-term fundamentals in the Consumer Packaging business remain healthy, with strong customer relationships and growing end markets [7] - The company anticipates a gradual recovery in volumes and improved conditions in fiscal 2024 [28][30] Other Important Information - The company plans to incur $345 million in restructuring charges related to mill closures, with a significant portion being non-cash [12] - The Longview box plant is expected to start operations in November, delivering $25 million in annual benefits once fully operational [15] Q&A Session Summary Question: Can you discuss the cadence of shipments during the quarter? - Management noted that the corrugated business was stable, with order rates up mid-single digits in July and strong backlogs [41][42] Question: What gives confidence in improvement for the consumer packaging segment? - Management highlighted consistent feedback from large customers indicating a shift to the right inventory levels and expectations for growth in 2024 [46] Question: Can you elaborate on the mill closures and their impact on EBITDA? - All closed mills were not generating positive EBITDA, and reallocating production is expected to improve overall profitability [52] Question: What is the progress on enterprise sales and machinery installations? - Enterprise sales reached over $9 billion, with strong momentum and a backlog of over 5,300 machines installed worldwide [61] Question: How should we think about the Tacoma mill closure and its earnings impact? - The Tacoma mill closure is expected to have a positive long-term impact on profitability, with cash costs associated with the closure estimated at around $345 million [94]

Financial Performance - Net sales for Q2 fiscal 2023 were $5,277.6 million, a decrease of $104.5 million or 1.9% compared to Q2 fiscal 2022, primarily due to lower volumes and unfavorable foreign exchange rates [187]. - Net loss attributable to common stockholders was $2,006.1 million for Q2 fiscal 2023, compared to net income of $39.9 million in Q2 fiscal 2022, driven by a $1.9 billion goodwill impairment charge [188]. - Consolidated Adjusted EBITDA for Q2 fiscal 2023 was $788.6 million, a decrease of $65.3 million or 7.6% from $853.9 million in Q2 fiscal 2022 [188]. - Net sales for the six months ended March 31, 2023, decreased by $133.6 million compared to the prior year period, primarily due to lower volumes and unfavorable foreign exchange rates, partially offset by higher selling prices and increased sales from the Grupo Gondi Acquisition [201]. - Net cash provided by operating activities for the six months ended March 31, 2023, was $550.0 million, down from $642.7 million in the prior year [191]. - The company reported a net loss of $88.7 million for the six months ended March 31, 2023, which includes a pre-tax goodwill impairment charge of $107.8 million [284]. - For the three months ended March 31, 2023, the company reported a loss per diluted share of $(7.85), compared to earnings of $0.15 for the same period in 2022 [291]. - The company recognized a goodwill impairment of $7.16 million for the three months ended March 31, 2023, and $7.17 million for the six months ended March 31, 2023 [291]. - Adjusted earnings per diluted share decreased to $0.77 for the three months ended March 31, 2023, down from $1.17 in the same period of 2022 [291]. - The company reported a total adjusted net income of $197.6 million for the three months ended March 31, 2023, compared to $309.4 million for the same period in 2022 [295]. Cost and Expenses - Cost of goods sold for the six months ended March 31, 2023, was $8,515.2 million, a decrease of $18.8 million compared to the prior year period, mainly due to lower volumes and increased net cost inflation [203]. - Selling, general and administrative expenses (SG&A) excluding intangible amortization increased by $32.0 million in the six months ended March 31, 2023, primarily due to $41.0 million of business systems transformation costs [206]. - Interest expense, net for the six months ended March 31, 2023, was $205.7 million, an increase from $159.2 million in the prior year period, primarily due to higher interest rates and increased debt from the Grupo Gondi Acquisition [214]. - Restructuring and other costs for the six months ended March 31, 2023, totaled $477.7 million, with $346.5 million being non-cash charges [210]. - The company incurred restructuring and other costs of $444.7 million for the three months ended March 31, 2023, compared to $363.4 million in the same period of 2022 [295]. Acquisitions and Investments - The Grupo Gondi Acquisition was completed for $969.8 million, resulting in a $46.8 million non-cash, pre-tax loss recognized [177]. - The company expects approximately $160 million in aggregate investment for business systems transformation in fiscal 2023, with $120 million expected to be expensed when incurred [185]. - The company anticipates over $250 million in cost savings from transformation initiatives in fiscal 2023, excluding impacts from economic downtime and inflation [192]. - The company experienced a $430.6 million increase in sales from the acquired Grupo Gondi operations for the six months ended March 31, 2023 [230]. - Grupo Gondi Acquisition added approximately 1 million tons of mill capacity to the pre-acquisition capacity of approximately 15.2 million tons [299]. Segment Performance - Net sales for the Corrugated Packaging segment increased by $308.4 million in Q2 fiscal 2023 compared to the prior year quarter, driven by $328.4 million from acquired Grupo Gondi operations [229]. - Adjusted EBITDA for the Corrugated Packaging segment in Q2 fiscal 2023 rose by $78.8 million, primarily due to a $154.5 million margin impact from higher selling price/mix [232]. - Consumer Packaging segment net sales increased by $14.5 million in Q2 fiscal 2023, mainly due to $125.4 million of higher selling price/mix [237]. - Global Paper shipments decreased to 2,270.6 thousand tons in the six months ended March 31, 2023, down from 3,174.1 thousand tons in the same period of fiscal 2022 [243]. - Net sales for the Global Paper segment decreased by $369.9 million in Q2 fiscal 2023, primarily due to $384.5 million of lower volumes [245]. - Adjusted EBITDA for the Consumer Packaging segment increased by $12.8 million in Q2 fiscal 2023, driven by a $122.0 million margin impact from higher selling price/mix [239]. - Global Paper segment net sales decreased by $598.9 million in the six months ended March 31, 2023, primarily due to $700.2 million of lower volumes, partially offset by $156.2 million of higher selling price/mix [246]. - Adjusted EBITDA for the Global Paper segment decreased by $196.6 million in the six months ended March 31, 2023, primarily due to $219.0 million of lower volumes and $83.4 million of increased net cost inflation [249]. - Distribution segment net sales decreased by $58.3 million in the six months ended March 31, 2023, primarily due to $77.7 million of lower volumes, partially offset by $16.6 million of higher selling price/mix [254]. - Distribution segment Adjusted EBITDA decreased by $14.4 million in the six months ended March 31, 2023, primarily due to $21.6 million of lower volumes and $16.0 million of increased cost inflation [257]. Liquidity and Capital Structure - Cash and cash equivalents were $363.4 million at March 31, 2023, compared to $260.2 million at September 30, 2022 [260]. - Total debt increased to $9,505.6 million at March 31, 2023, up from $7,787.2 million at September 30, 2022, primarily due to the Grupo Gondi Acquisition [260]. - Available liquidity under long-term committed credit facilities and cash and cash equivalents was approximately $3.2 billion at March 31, 2023 [261]. - The board of directors declared a quarterly dividend of $0.275 per share, representing a 10% increase from the prior year [273]. - The board of directors authorized a new repurchase program of up to 25.0 million shares, representing approximately 10% of outstanding Common Stock, with 29.0 million shares available for repurchase as of March 31, 2023 [274]. - In the six months ended March 31, 2022, the company repurchased approximately 7.2 million shares for an aggregate cost of $332.1 million [274]. Tax and Pension Obligations - The effective tax rate for the six months ended March 31, 2023, was 5.3%, significantly lower than 21.2% in the prior year period, primarily due to tax effects related to the goodwill impairment [223]. - The company has approximately $51 million in future potential reductions of U.S. federal, state, and foreign cash taxes, primarily from net operating losses and credits expected to be utilized between fiscal 2023 and 2040 [275]. - The company expects to contribute approximately $28 million to its pension plans in fiscal 2023, having contributed $15.0 million in the six months ended March 31, 2023 [276]. - Withdrawal liabilities are expected to be approximately $12 million per year in fiscal 2023, excluding accumulated funding deficiency demands [277]. - As of March 31, 2023, the company recorded withdrawal liabilities of $213.1 million, a slight decrease from $214.7 million as of September 30, 2022 [279]. Market Conditions and Future Outlook - The company expects ongoing challenges related to pricing cycles, economic conditions, and supply chain disruptions, which may impact future performance [297]. - The company plans to continue focusing on business systems transformation and operational improvements to enhance performance [297]. - The company anticipates potential impacts from acquisitions and divestitures, particularly related to the Grupo Gondi Acquisition [297]. - If market interest rates increase by an average of 100 basis points, annual interest expense would increase by approximately $26 million [299]. - A 10% change in the price per MMBtu would impact Cost of Goods Sold by approximately $5 million, excluding April 2023 [299].

Financial Performance - Net sales for Q1 fiscal 2023 were $4,923.1 million, a decrease of $29.1 million or 0.6% compared to Q1 fiscal 2022, primarily due to lower volumes and unfavorable foreign exchange rates [158]. - Net income attributable to common stockholders for Q1 fiscal 2023 was $45.3 million, a decrease of $137.0 million or 75.2% compared to Q1 fiscal 2022, impacted by increased net cost inflation and restructuring costs [159]. - Consolidated Adjusted EBITDA for Q1 fiscal 2023 was $652.1 million, down $28.2 million or 4.1% from $680.3 million in Q1 fiscal 2022 [159]. - Earnings per diluted share for Q1 fiscal 2023 were $0.18, down from $0.68 in Q1 fiscal 2022, while Adjusted Earnings Per Diluted Share were $0.55 compared to $0.65 in the prior year [160]. - Net income attributable to common stockholders decreased to $45.3 million in Q4 2022 from $182.3 million in Q4 2021, representing a decline of approximately 75% [244]. - Consolidated Adjusted EBITDA for Q4 2022 was $652.1 million, down from $680.3 million in Q4 2021, reflecting a decrease of about 4.5% [244]. Segment Performance - Net sales for the Corrugated Packaging segment increased by $15.2 million in Q1 FY2023, driven by $204.0 million of higher selling price/mix, offset by $189.0 million of lower volumes [189]. - Adjusted EBITDA for the Corrugated Packaging segment rose by $20.3 million in Q1 FY2023, primarily due to a $206.0 million margin impact from higher selling price/mix, offset by $79.0 million of increased net cost inflation [190]. - Consumer Packaging segment net sales increased by $76.3 million in Q1 FY2023, mainly due to $132.3 million of higher selling price/mix, partially offset by $52.4 million of unfavorable foreign exchange rates [194]. - Adjusted EBITDA for the Consumer Packaging segment increased by $14.0 million in Q1 FY2023, primarily due to a $132.3 million margin impact from higher selling price/mix, offset by $54.0 million of increased net cost inflation [195]. - Global Paper segment net sales decreased by $229.0 million in Q1 FY2023, primarily due to $328.6 million of lower volumes, partially offset by $99.8 million of higher selling price/mix [199]. - Global Paper segment Adjusted EBITDA decreased by $75.1 million in Q1 FY2023, primarily due to $113.7 million lower volumes and $47.9 million increased net cost inflation [200]. - Distribution segment net sales in Q1 FY2023 were $321.5 million, a decrease of $3.3 million compared to the prior year quarter, primarily due to $24.7 million lower volumes [204]. - Adjusted EBITDA for the Distribution segment increased by $4.3 million in Q1 FY2023, driven by a $19.9 million margin impact from higher selling price/mix [205]. - Grupo Gondi Acquisition contributed $102.2 million in net sales and $17.3 million in Adjusted EBITDA in Q1 FY2023 [207]. Costs and Expenses - The cost of goods sold for Q1 fiscal 2023 was $4,157.9 million, representing 84.5% of net sales, an increase from 83.9% in Q1 fiscal 2022 [173]. - Selling, general and administrative expenses (SG&A) excluding intangible amortization increased by $26.2 million in Q1 FY2023 compared to Q1 FY2022, primarily due to $21.7 million of business systems transformation costs [175]. - Interest expense, net for Q1 FY2023 was $97.3 million, an increase from $86.7 million in Q1 FY2022, primarily due to higher interest rates and increased debt from the Grupo Gondi Acquisition [180]. - Pension and other postretirement non-service costs for Q1 FY2023 were $5.0 million, a significant decrease from income of $39.9 million in Q1 FY2022, driven by higher interest rates affecting plan asset balances [181]. - The company recorded aggregate pre-tax restructuring and other costs of $33.0 million in Q1 FY2023, compared to $2.3 million in Q1 FY2022 [178]. - Restructuring and other costs rose significantly to $33.0 million in Q4 2022 from $2.3 million in Q4 2021, marking an increase of over 1300% [244]. Cash Flow and Capital Structure - Net cash provided by operating activities for Q1 fiscal 2023 was $265.9 million, an increase from $252.8 million in Q1 fiscal 2022, primarily due to reduced working capital usage [161]. - Cash and cash equivalents were $415.2 million at December 31, 2022, down from $260.2 million at September 30, 2022, with total debt increasing to $9,462.8 million [210]. - Net cash provided by operating activities increased by $13.1 million to $265.9 million in Q1 FY2023 compared to Q1 FY2022, primarily due to a $68.4 million net decrease in working capital usage [219]. - Capital expenditures for FY2023 are expected to be approximately $1.0 billion, focusing on safety, environmental, and maintenance projects [221]. - The company plans to optimize its capital structure and may seek to refinance existing indebtedness to improve terms and reduce costs [230]. Future Outlook - The company expects a sequential increase in net sales and net income in Q2 fiscal 2023, driven by seasonal volume increases and a full quarter of Grupo Gondi results [162]. - Scheduled mill maintenance outages are expected to result in approximately 132,000 tons of maintenance downtime in Q2 fiscal 2023 [163]. - The company anticipates paying approximately $12 million annually in withdrawal liabilities for fiscal 2023, excluding accumulated funding deficiency demands [228]. Risks and Liabilities - The company faces various risks including economic conditions, supply chain disruptions, and competition, which could impact future performance [247]. - A 100 basis point increase in market interest rates would lead to an estimated annual interest expense increase of $26 million [249]. - A 10% change in the price per MMBtu of natural gas would impact the cost of goods sold by approximately $6 million, based on open contracts as of December 31, 2022 [249].

Sales Performance - Sales of corrugated packaging products accounted for 42.9% of net sales in fiscal 2022[19] - Sales of consumer packaging products accounted for 23.2% of net sales in fiscal 2022[21] - Sales of global paper products accounted for 27.9% of net sales in fiscal 2022[22] - Sales in the Distribution segment accounted for 6.6% of net sales in fiscal 2022[24] - In fiscal 2022, non-U.S. operations accounted for 18.3% of net sales, consistent with 2021, and slightly up from 17.5% in 2020[89] Sustainability and Environmental Compliance - Approximately 65% of fiber sourcing is from virgin fiber and 35% from recycled fiber[27] - The company estimates approximately $36 million in capital expenditures for environmental compliance in fiscal 2023[45] - The company is one of the largest recyclers in the paper industry, emphasizing sustainability[48] - More than 95% of the company's fiber-based manufacturing facilities are certified to SFI®, PEFC®, and FSC® standards[49] - The company aims to reduce Scope 1 and Scope 2 GHG emissions per ton of production by 20% from a 2015 baseline by 2025, having achieved a 15% reduction as of September 30, 2021[53] - A science-based target (SBT) has been set to reduce absolute Scope 1 and 2 GHG emissions by 27.5% by 2030 from a 2019 baseline[54] - The company plans to invest over $160 million through 2030 to achieve its SBT[55] - Approximately 7 million tons of paper and packaging were diverted from landfills through recycling operations in fiscal 2022[50] Employee and Workforce Diversity - As of September 30, 2022, the company employed approximately 50,500 people, with 78% located in the U.S. and Canada[69] - 22% of the global workforce is comprised of women, and 35% of the U.S. workforce consists of people of color[75] - The company has established cross-functional groups to develop and implement its sustainability strategy[52] - The company has over 8,500 online courses available for employee development, focusing on technical and operational skills[84] - In fiscal 2022, the company expanded relationships with historically black colleges and universities and established a multi-year scholarship program[85] - The total rewards program includes competitive compensation and comprehensive benefits to support employee growth and well-being[86] - The company aims to create a 100% safe work environment, with a focus on reducing life-changing events through targeted safety programs[40] - Approximately 55% of hourly employees in the U.S. and Canada are covered by collective bargaining agreements, with 32% of those agreements expiring within one year[69] - The company has a master agreement ratified by the United Steelworkers Union covering approximately 8,800 employees across 62 U.S. operating locations[71] - The company has implemented a multi-year plan to enhance workforce diversity and inclusion, impacting approximately 100 senior leaders in fiscal 2022[76] - Annual pay equity analyses are conducted in the U.S., Great Britain, and France to address pay disparities among different races, genders, and ages[79] - In fiscal 2022, 62% of hourly and 81% of salaried workforce participated in workshops focused on unconscious bias[77] Operational Challenges - Energy costs increased significantly in fiscal 2022 compared to fiscal 2021[29] - Higher freight costs and distribution delays were experienced in both fiscal 2022 and 2021[31] - The company is exposed to risks related to international sales and operations, including macroeconomic uncertainties and supply chain disruptions[93] - The company competes in a highly competitive global marketplace, with no single company dominating its industry segments[35] - Forward-looking statements indicate potential risks related to supply chain disruptions, economic conditions, and competition, impacting future performance[93] - The company is currently engaged in a labor dispute at its Mahrt mill, but has implemented a contingency plan to continue operations[70] Safety and Performance Metrics - In fiscal 2022, the company reported year-over-year improvements in safety metrics, although lost workdays and recordable incident rates slightly increased[80]

Financial Performance - Net sales for Q3 fiscal 2022 reached $5,519.7 million, an increase of $703.4 million or 14.6% compared to Q3 fiscal 2021, primarily driven by higher selling price/mix [137]. - Net income attributable to common stockholders for Q3 fiscal 2022 was $377.9 million, up $127.8 million or 51.1% from Q3 fiscal 2021, despite increased cost inflation and lower volumes [138]. - Consolidated Adjusted EBITDA for Q3 fiscal 2022 was $1,005.5 million, reflecting a $194.5 million or 24.0% increase from $811.0 million in Q3 fiscal 2021 [138]. - Net sales for the nine months ended June 30, 2022, increased by $2,198.4 million compared to the prior year, driven by higher selling price/mix and volumes [156]. - Earnings per diluted share for Q3 2022 was $1.47, up 58.1% from $0.93 in Q3 2021 [247]. - Adjusted Earnings Per Diluted Share increased to $1.54 in Q3 2022 from $1.00 in Q3 2021, representing a 54% increase [247]. - Consolidated Adjusted EBITDA for the nine months ended June 30, 2022, was $2,539.7 million, compared to $2,121.3 million for the same period in 2021, reflecting a 19.7% increase [251]. - Net income attributable to common stockholders for Q3 2022 was $377.9 million, compared to $250.1 million in Q3 2021, marking a 51% increase [251]. - The company reported a pre-tax income of $512.5 million for Q3 2022, up from $328.4 million in Q3 2021, an increase of 55.9% [248]. - Adjusted Net Income for the nine months ended June 30, 2022, was $879.1 million, compared to $575.6 million for the same period in 2021, a 52.8% increase [248]. Costs and Expenses - Cost of Goods Sold increased by $473.9 million in Q3 FY2022 compared to Q3 FY2021, primarily due to cost inflation and higher operating costs [158]. - Selling, General and Administrative (SG&A) expenses excluding intangible amortization increased by $53.4 million in Q3 FY2022 compared to Q3 FY2021, driven by higher compensation and benefits [161]. - SG&A expenses excluding intangible amortization rose by $123.2 million in the nine months ended June 30, 2022, compared to the prior year period, largely due to increased compensation and benefits [162]. - Interest expense, net decreased to $78.5 million in Q3 FY2022 from $102.5 million in Q3 FY2021, attributed to lower debt levels and a reduction in pension liabilities [169]. - The company recorded a loss on extinguishment of debt of $8.2 million for the nine months ended June 30, 2022, related to the redemption of $350 million senior notes [171]. - The effective tax rate for Q3 FY2022 was 25.9%, compared to 23.6% for Q3 FY2021, with income tax expense increasing to $132.7 million [176]. Segment Performance - Corrugated Packaging shipments in thousands of tons for Q3 FY2022 were 1,648.7, a slight decrease from 1,709.6 in Q3 FY2021 [180]. - Net sales for the Corrugated Packaging segment in the nine months ended June 30, 2022, were $6,921.5 million, with an Adjusted EBITDA of $1,002.8 million [181]. - Corrugated Packaging segment net sales increased by $227.8 million in Q3 FY2022, driven by $300.1 million from higher selling price/mix, partially offset by $84.1 million from lower volumes [182]. - Consumer Packaging segment net sales rose by $138.0 million in Q3 FY2022, primarily due to $122.4 million from higher selling price/mix and $58.3 million from higher volumes, offset by $44.0 million in unfavorable foreign currency impacts [189]. - Global Paper segment net sales increased by $311.1 million in Q3 FY2022, mainly due to $297.0 million from higher selling price/mix and $38.7 million from higher volumes [197]. - Adjusted EBITDA for the Corrugated Packaging segment increased by $21.3 million in Q3 FY2022, primarily due to a $300.3 million margin impact from higher selling price/mix, offset by $218.1 million in increased cost inflation [184]. - Consumer Packaging segment Adjusted EBITDA increased by $51.6 million in Q3 FY2022, driven by a $122.0 million margin impact from higher selling price/mix, partially offset by $76.9 million in increased cost inflation [191]. - Global Paper segment Adjusted EBITDA rose by $133.8 million in Q3 FY2022, primarily due to a $297.0 million margin impact from higher selling price/mix [199]. - Distribution segment net sales increased by $35.4 million in Q3 FY2022, primarily due to $40.8 million from higher selling price/mix, partially offset by $5.7 million from lower volumes [205]. - For the nine months ended June 30, 2022, Consumer Packaging segment net sales increased by $384.2 million, mainly due to $298.6 million from higher selling price/mix and $176.0 million from higher volumes [190]. - Global Paper segment net sales increased by $980.3 million for the nine months ended June 30, 2022, primarily due to $854.4 million from higher selling price/mix and $210.4 million from higher volumes [198]. - Distribution segment net sales increased by $138.4 million for the nine months ended June 30, 2022, primarily due to $96.3 million from higher selling price/mix and $38.0 million from higher volumes [206]. - Distribution segment Adjusted EBITDA increased by $1.2 million in Q3 FY2022, driven by a $40.8 million margin impact from higher selling prices and a $9.4 million increase in productivity, offset by $47.2 million in cost inflation and $2.1 million in lower volumes [207][208]. - For the nine months ended June 30, 2022, Distribution segment Adjusted EBITDA rose by $8.3 million, primarily due to a $96.3 million margin impact from higher selling prices and a $19.6 million increase in volumes, countered by $103.0 million in cost inflation [209]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended June 30, 2022, was $1,480.1 million, down from $1,602.4 million in the prior year, primarily due to increased working capital usage [140]. - Capital expenditures for the nine months ended June 30, 2022, totaled $569.5 million, while $795.9 million was returned to stockholders through stock repurchases and dividends [141]. - Cash and cash equivalents were $305.4 million as of June 30, 2022, up from $290.9 million at September 30, 2021, with approximately two-thirds held outside the U.S. [212]. - Total debt decreased by $171.2 million during the nine months ended June 30, 2022, primarily due to repayments using net cash from operating activities [212]. - Net cash provided by operating activities decreased by $122.3 million to $1,480.1 million for the nine months ended June 30, 2022, mainly due to $379.9 million of greater working capital usage compared to the prior year [219]. - Capital expenditures for the nine months ended June 30, 2022, were $569.5 million, with expectations to invest approximately $900 million for the full fiscal year 2022 [220][222]. - Net cash used for financing activities was $965.8 million, including $600.0 million for share repurchases and $195.9 million in cash dividends paid to stockholders [223]. - The board declared a quarterly dividend of $0.25 per share, representing a 25% increase from the previous annualized dividend of $1.00 per share [224]. - As of June 30, 2022, the company had approximately $3.5 billion available under long-term committed credit facilities and cash equivalents [213]. - The company anticipates being able to fund capital expenditures, interest payments, dividends, and stock repurchases from cash generated from operations and other financing sources [231]. Impairments and Non-Cash Charges - The company recorded a $26.0 million pre-tax non-cash mineral rights impairment in Q3 fiscal 2022, which impacted net income [138]. - A pre-tax non-cash impairment of $26.0 million was recorded for certain mineral rights due to a lack of leasing or development activity [166]. - Mineral rights impairment for Q3 2022 was $26.0 million, with no impairment reported in Q3 2021 [251]. Strategic Initiatives and Future Outlook - The company announced an agreement to acquire the remaining 67.7% interest in Grupo Gondi on July 27, 2022 [175]. - The company anticipates continued growth driven by strategic acquisitions and market expansion efforts, including the recent acquisition of Grupo Gondi [254]. - Forward-looking statements indicate potential risks including supply chain disruptions and inflationary pressures impacting future performance [254].

Financial Performance - Net sales for Q2 fiscal 2022 were $5,382.1 million, an increase of $944.3 million or 21.3% compared to Q2 fiscal 2021[130] - Consolidated Adjusted EBITDA for Q2 fiscal 2022 was $853.9 million, up $213.4 million or 33.3% from $640.5 million in Q2 fiscal 2021[133] - Net income attributable to common stockholders for Q2 fiscal 2022 was $39.9 million, a decrease of $72.6 million or 64.5% compared to Q2 fiscal 2021[132] - Net cash provided by operating activities for the six months ended March 31, 2022, was $642.7 million, down from $851.6 million in the prior year[135] - Adjusted Earnings Per Diluted Share for Q1 2022 was $1.17, compared to $0.54 in Q1 2021, reflecting a significant increase of 117.0% year-over-year[241] - Consolidated Adjusted EBITDA for the six months ended March 31, 2022, was $1,534.2 million, up from $1,310.3 million for the same period in 2021, representing an increase of 17.1%[245] - Net income attributable to common stockholders for Q1 2022 was $222.2 million, compared to $112.5 million in Q1 2021, indicating a year-over-year growth of 97.7%[245] Restructuring and Costs - The company recorded pre-tax restructuring and other costs of $363.4 million in Q2 fiscal 2022, primarily due to the closure of the Panama City, FL mill[131] - The company reported restructuring and other costs of $363.4 million for Q1 2022, compared to $5.2 million in Q1 2021, highlighting a substantial increase in restructuring expenses[245] - The company anticipates future restructuring charges related to the closure of the Panama City mill, primarily for carrying costs and contract terminations[131] - The company expects to record future restructuring charges associated with the closure of its Panama City, FL mill, primarily related to carrying costs and contract terminations[247] Sales and Revenue Segments - Corrugated Packaging segment net sales increased by $296.6 million in Q2 FY2022 compared to the prior year, driven by $274.0 million from higher selling price/mix and $13.0 million from higher volumes[174] - Consumer Packaging segment net sales rose by $170.0 million in Q2 FY2022, primarily due to $116.6 million from higher selling price/mix and $96.6 million from higher volumes[182] - Paper segment net sales increased by $407.5 million in Q2 FY2022, mainly due to $311.2 million from higher selling price/mix and $130.7 million from higher volumes[190] - For the six months ended March 31, 2022, Corrugated Packaging segment net sales increased by $497.1 million, with $550.4 million from higher selling price/mix partially offset by $64.7 million from lower volumes[175] - Consumer Packaging segment net sales for the six months ended March 31, 2022, increased by $246.2 million, primarily due to $176.2 million from higher selling price/mix[183] - Paper segment net sales for the six months ended March 31, 2022, increased by $669.2 million, mainly due to $557.4 million from higher selling price/mix[191] Costs and Expenses - Cost of goods sold for the second quarter of fiscal 2022 rose by $690.2 million, or 18.9%, compared to the prior year quarter, driven by cost inflation and higher volumes[152] - Selling, general and administrative expenses (SG&A) excluding intangible amortization increased by $34.7 million in the second quarter of fiscal 2022, primarily due to increased compensation and benefits[155] - The company experienced significant cost inflation, with the Corrugated Packaging segment facing $429.7 million and the Consumer Packaging segment facing $169.0 million in increased costs for the six months ended March 31, 2022[177][186] Cash Flow and Debt - Cash and cash equivalents were $360.2 million at March 31, 2022, up from $290.9 million at September 30, 2021, with approximately 75% held outside the U.S.[204] - Total debt increased to $8,374.0 million at March 31, 2022, from $8,194.1 million at September 30, 2021, primarily due to capital expenditures and capital returned to stockholders exceeding net cash provided by operating activities[204] - Net cash provided by operating activities for the six months ended March 31, 2022, was $642.7 million, a decrease of $208.9 million compared to the prior year, primarily due to higher working capital usage[212] - The company had approximately $3.2 billion of availability under long-term committed credit facilities and cash and cash equivalents as of March 31, 2022[205] Future Expectations - The company expects higher sequential earnings in Q3 fiscal 2022, driven by previously published price increases that will offset inflation costs[136] - The company expects to incur capital expenditures of approximately $900 million to $1.0 billion in fiscal 2022, focusing on safety, environmental, and maintenance projects while supporting productivity and growth[248] - The company anticipates higher inflation costs sequentially driven by increased energy, freight, and labor costs, with fiber costs remaining roughly flat[248] - The company expects to recover substantially all remaining ransomware losses from cyber and business interruption insurance in future periods[247] - The company expects its fiscal 2022 cash tax rate to be slightly lower than its income tax rate, with future potential reductions of U.S. federal, state, and foreign cash taxes aggregating approximately $59 million[219] Tax and Pension - The effective tax rate for the three months ended March 31, 2022 was 4.2%, significantly lower than 21.0% for the same period in 2021, due to the impact of research and development tax credits[169] - The company expects to contribute approximately $22 million to its U.S. and non-U.S. pension plans in fiscal 2022[221] - As of March 31, 2022, the company recorded withdrawal liabilities of $232.2 million, down from $247.1 million at the end of fiscal 2021, primarily due to an increase in interest rates[223]

Financial Performance - Net sales for the first quarter of fiscal 2022 were $4,952.2 million, an increase of $550.7 million, or 12.5%, compared to the first quarter of fiscal 2021[121] - Net income attributable to common stockholders for the first quarter of fiscal 2022 was $182.3 million, up $30.3 million, or 19.9%, from the same period in fiscal 2021[122] - Consolidated Adjusted EBITDA for the first quarter of fiscal 2022 was $680.3 million, reflecting an increase of $10.5 million, or 1.6%, compared to $669.8 million in the first quarter of fiscal 2021[122] - Adjusted Earnings Per Diluted Share for Q4 2021 was $0.65, compared to $0.61 in Q4 2020, reflecting a growth of approximately 6.6%[197] - Consolidated Adjusted EBITDA for Q4 2021 was $680.3 million, up from $669.8 million in Q4 2020, indicating an increase of about 1.5%[201] - Net income attributable to common stockholders for Q4 2021 was $182.3 million, compared to $152.0 million in Q4 2020, representing a growth of approximately 19.9%[201] Costs and Expenses - Cost of goods sold for the first quarter of fiscal 2022 was $4,155.6 million, representing an increase of $507.0 million compared to the prior year quarter, primarily due to cost inflation and increased planned downtime[137] - Selling, general and administrative expenses excluding intangible amortization increased by $35.1 million in the first quarter of fiscal 2022, totaling $452.9 million[138] - Net interest expense decreased to $86.7 million in Q1 fiscal 2022 from $93.8 million in the prior year, primarily due to lower debt levels[143] - Pension and other postretirement non-service income increased to $39.9 million in Q1 fiscal 2022, up from $34.9 million in Q1 fiscal 2021[144] - Restructuring and other costs amounted to $2.3 million in Q1 fiscal 2022, down from $7.7 million in Q1 fiscal 2021[141] Cash Flow and Investments - Net cash provided by operating activities in the first quarter of fiscal 2022 was $252.8 million, a decrease from $719.4 million in the same period of fiscal 2021, primarily due to higher working capital usage[124] - The company invested $173.1 million in capital expenditures and returned $166.4 million to stockholders through stock repurchases and dividends in the first quarter of fiscal 2022[125] - Net cash used for investing activities was $154.8 million, consisting mainly of $173.1 million for capital expenditures, partially offset by $22.4 million from the sale of property, plant, and equipment[171] - Net cash used for financing activities was $104.3 million, which included a net increase in debt of $48.1 million and share repurchases of $100.1 million[173] Debt and Liquidity - Total debt increased to $8,233.2 million at December 31, 2021, up from $8,194.1 million at September 30, 2021[162] - The company had approximately $3.6 billion of availability under long-term committed credit facilities at December 31, 2021[163] - Cash and cash equivalents were $291.3 million at December 31, 2021, with approximately 80% held outside the U.S.[162] Future Expectations - The company anticipates that previously published price increases will more than offset inflation, leading to higher sequential earnings in the upcoming quarter[126] - The company expects capital expenditures to be approximately $900 million to $1.0 billion in fiscal 2022, focusing on safety, environmental, and maintenance projects while supporting productivity and growth[204] - The company anticipates higher sequential earnings despite ongoing labor cost increases and supply chain challenges[204] - The company expects to fund capital expenditures, interest payments, dividends, and other corporate actions from cash generated from operations and available borrowings[204] Operational Challenges - The company expects sequential labor cost increases and continued supply chain challenges in the second quarter of fiscal 2022, with approximately 128,000 tons of scheduled downtime across its system[126] - The company acknowledges various risks including supply chain disruptions, labor costs, and market conditions that could impact performance[206] - The company has incurred costs related to COVID-19 safety measures and continues to take actions to protect employee health[204] Shareholder Returns - The quarterly dividend declared on January 27, 2022, is $0.25 per share, representing a 25% increase from the previous annualized dividend of $1.00 per share[174] - Approximately 2.1 million shares of Common Stock were repurchased for $97.5 million during the three months ended December 31, 2021, with 14.6 million shares remaining available for repurchase[176] Pension and Tax Matters - The company has approximately $59 million in future potential reductions of U.S. federal, state, and foreign cash taxes due to net operating losses and tax credits[177] - The pension plans in the U.S. are overfunded, with a pension asset of approximately $0.7 billion, and expected contributions of about $25 million in fiscal 2022[178] - Withdrawal liabilities recorded were $248.1 million as of December 31, 2021, reflecting obligations associated with multiemployer pension plans[180]

Sales Performance - Sales of corrugated packaging products accounted for 65.4% of net sales in fiscal 2021, a slight decrease from 64.6% in 2020 and 64.2% in 2019[16] - Sales of consumer packaging products represented 34.6% of net sales in fiscal 2021, down from 35.3% in 2020 and 35.7% in 2019[20] - Sales from non-U.S. operations accounted for 18.5% of net sales in fiscal 2021, compared to 17.7% in fiscal 2020[85] Customer Base - The company serves over 15,000 customers, including 188 customers who purchased at least $1 million from the Corrugated Packaging and Consumer Packaging segments in fiscal 2021[29] - The company serves more than 15,000 customers, including 188 customers who purchased at least $1 million from its segments in fiscal 2021[29] Environmental Compliance and Sustainability - The overall fiber sourcing for all mills is approximately 65% virgin and 35% recycled[23] - The company achieved a 14% reduction in greenhouse gas emissions per ton of production as of September 30, 2020, towards a goal of 20% reduction by 2025[51] - Approximately 7 to 8 million tons of paper and packaging are diverted from landfills annually through the company's recycling operations[50] - The company has established a goal to reduce Scope 1 and Scope 2 greenhouse gas emissions by 20% from a 2015 baseline by 2025[51] - The company has systems in place for tracking greenhouse gas emissions and monitors developments in climate-related laws and regulations[58] - The company has been recognized for sustainability efforts, including inclusion in the Dow Jones World and North American Sustainability Indices[63] - The company has invested in new roles and capabilities to support its business strategy, including hiring a Chief Sustainability Officer and a Chief Innovation Officer[70] - The company is involved in various environmental compliance obligations, which may require significant capital investments and increase operating costs[43] Financial Outlook - The company expects more earnings and cash flows to be generated in the second half of the fiscal year than in the first half due to seasonal demand variations[22] - The company expects to generate an additional $1 billion in cash through the end of calendar 2021 to reduce outstanding indebtedness[89] - In fiscal 2022, the company anticipates capital expenditures of $1.0 billion, focusing on safety, environmental, and maintenance projects[92] - The company expects record sales and operating profit in fiscal 2022 despite ongoing commodity input cost inflation[90] - The company plans to implement previously published price increases that are expected to outpace inflation in fiscal 2022[90] - The company anticipates being able to fund capital expenditures, interest payments, dividends, and other corporate actions from cash generated from operations and other financing sources[93] Employee and Workforce - The company employs approximately 49,900 people, with 78% located in the U.S. and Canada[65] - 56% of hourly employees in the U.S. and Canada are covered by collective bargaining agreements, with 26% of those agreements expiring within one year[65] - As of September 30, 2021, 21% of the global workforce was female, and 33% of the U.S. workforce comprised people of color[76] - The company has launched an online learning library with over 1,000 courses in five languages to support employee development[82] - The company continues to focus on talent attraction and retention, restructuring work schedules, and providing retention bonuses as needed[81] - The company has set a four-year goal for gender and ethnic representation to enhance workforce diversity[77] - The diversity, inclusion, equity, and belonging modifier is expected to be applied to approximately 100 top executives and leaders in fiscal 2022[78] Capital Expenditures and Investments - The company estimates an investment of approximately $21 million for capital expenditures related to environmental compliance during fiscal 2022[49] - The company expects to contribute approximately $25 million to its U.S. and non-U.S. pension plans in fiscal 2022[93] - Minimum pension contributions are estimated to be in the range of approximately $23 million to $24 million annually from fiscal 2023 through 2026[93] - The company expects to utilize nearly all remaining U.S. federal net operating losses and credits during the current fiscal year[92] - Future cash tax rates are expected to be slightly lower than the income tax rate for fiscal 2022, with an increase anticipated for fiscal 2023 and 2024 due to the absence of nonrecurring tax credits[92] Risk Management - The company expects to incur significant costs to enhance data security and prevent unauthorized access to its systems[93] - The company believes it has substantial insurance coverage for asbestos claims, subject to deductibles and policy limits[95] - The company estimates its exposure related to certain guarantees to be less than $50 million[95] - The company’s restructuring actions are believed to have allowed for more effective business management[93] - The company may seek to refinance existing indebtedness to improve terms and reduce borrowing costs[93]