O-I Glass(OI)2025-02-12 21:31Employee and Workplace Safety - The Company has approximately 21,000 employees and operates 69 plants across 19 countries[53] - The Company has made significant expenditures on workplace safety improvements, which did not materially affect its results of operations or cash flows[52] - The Company continually monitors workplace safety and invests in projects to enhance employee safety, expecting continued improvement as a result[52] - The Company emphasizes a culture of respect and integrity, aiming to create an inclusive work environment to enhance overall performance[57] - The Company has implemented strategic investments to develop employees and improve retention and engagement through surveys and third-party consultations[58] - The Company does not anticipate any material work stoppages in the near term, considering its employee relations to be good[59] Financial Performance - Net sales for 2024 were 7,105 million in 2023[320] - Gross profit for 2024 was 1,496 million in 2023[320] - Net earnings attributable to the Company for 2024 were a loss of 103 million in 2023 and a profit of (0.69), compared to 3.76 in 2022[320] - Total assets decreased to 9,669 million in 2023, a decline of approximately 10.5%[326] - Total liabilities decreased to 7,925 million in 2023, a reduction of about 6%[328] - Total comprehensive loss for 2024 was 208 million in 2023[323] - Cash and cash equivalents decreased to 913 million in 2023, a decline of 19.6%[326] - Inventories decreased to 1,071 million in 2023, a reduction of approximately 10.1%[326] - The Company reported a foreign currency translation adjustment loss of 343 million in 2023[323] Debt and Cash Flow - The Company had approximately 4.9 billion of total debt outstanding as of December 31, 2024 and December 31, 2023, respectively[108] - Approximately 28% of the Company's total debt is subject to variable interest rates as of December 31, 2024[111] - The Company’s ability to generate cash flow is critical for servicing its debt and funding operations, with no assurance of sufficient future cash flow[111] - Cash provided by operating activities decreased to 818 million in 2023[333] - Total cash utilized in investing activities was 683 million in 2023[333] - Additions to long-term debt in 2024 amounted to 1,332 million in 2023[333] Environmental and Regulatory Compliance - The Company has incurred costs for environmental compliance and expects these costs to increase in the future, potentially impacting financial condition and operations[126] - The Company had to comply with various environmental legal requirements that may have a material adverse effect on operations[125] - As of December 31, 2024, various U.S. states, Canadian provinces, and European countries have implemented or are considering recycling laws that may impose fees or require minimum recycled content, affecting packaging choices[129] - Increased scrutiny on environmental, social, and governance (ESG) matters may impose additional costs and risks on the Company[136] Supply Chain and Operational Risks - The Company relies on third parties for transportation, and disruptions in the transportation industry could increase costs and affect operations[90] - Supply chain disruptions have impacted the Company's capital expenditure plans, potentially affecting operating costs and project timelines[86] - The Company faces risks related to supply chain disruptions, competitive pricing pressures, and changes in consumer preferences[302] Technology and Innovation - The Company has implemented the MAGMA program to improve glass melting technology, with a focus on reducing capital requirements and emissions[81] - A greenfield facility utilizing the MAGMA technology was completed in Bowling Green, Kentucky, with production ramping up as of the end of 2024[82] - The Company has paused development on the final phase of the MAGMA program until commercialization activities at the Bowling Green plant are completed[84] - The Company is working on improving its glass melting technology, known as the MAGMA program, to enhance economic profit[303] Competition and Market Conditions - The Company is subject to intense competition from other glass container producers and alternative packaging forms, which could adversely affect its financial health[74] - Future financial performance may be affected by geopolitical factors, including the Ukraine-Russia conflict and other global tensions[302] Currency and Interest Rate Risks - The Company is exposed to risks associated with fluctuations in foreign currency exchange rates, which could adversely impact financial results[118] - The Company has defined a financial counterparty policy to manage credit risk associated with derivative instruments[289] - A potential change in fair value for financial instruments from a 10% change in foreign exchange rates would be approximately 14 million as of December 31, 2024[296] - The Company has variable-interest rate borrowings exposed to fluctuations in foreign currencies, using derivatives to manage these exposures[388] Goodwill and Impairment - Goodwill totaled 445 million recorded in Q4 2023[98] - The company's goodwill balance was 521 million as of December 31, 2024, net of accumulated impairment losses of $1,040 million[381]