Crown Holdings(CCK)2025-03-03 17:39Customer Concentration - The Company's top ten global customers accounted for approximately 48% of its 2024 consolidated net sales, with two customers each representing 12%[34][35]. - The concentration of the Company's business with major customers increases credit risk and may lead to reduced net sales and profitability[142]. Sustainability and Compliance - The Company aims to achieve 100% compliance with its Responsible and Ethical Sourcing policies for core raw materials and service suppliers by 2030[45]. - The Company has set 20 measurable sustainability goals to be reached by 2030 under its Twentyby30 program, focusing on areas such as Climate Action and Resource Efficiency[47]. - The Company was recognized as 1 in the Containers and Packaging industry category by Sustainalytics for managing ESG risk, marking the fifth consecutive year in the top 3%[59]. - The Company has committed to improving gender and cultural diversity, focusing on developing and empowering minorities and women[60]. - The Company maintains a written Code of Business Conduct and Ethics to ensure compliance with anti-corruption and employee treatment policies[64]. Employee Engagement and Workforce - Approximately 23,000 employees were employed by the Company worldwide as of December 31, 2024, with a significant portion being unionized[55][56]. - The Company has implemented a new employee engagement survey globally to better understand employee experiences and improve workplace culture[61]. Financial Performance and Debt - The Company has approximately 452 million in 2024, 284 million in 2022[108]. - A 0.25% increase in variable interest rates would increase the Company's annual interest expense by approximately 122 million to its pension plans in 2024, with 20 million in 2025, 27 million in 2027, indicating a potential increase in cash flow requirements[117]. Legal and Regulatory Risks - The Company is subject to litigation risks that could negatively impact its operations and net income, with ongoing lawsuits related to environmental and employee benefits laws[121]. - The Company reached a settlement with the European Commission in July 2022, agreeing to pay a fine of 32 million in RD&E activities in 2024, 34 million in 2022[70]. - The Company is focused on enhancing product design and manufacturing capabilities through strategic partnerships and Open Innovation[66]. - The Company is exploring alternatives to bisphenol-A, but there is no assurance of complete success or cost-effectiveness in these efforts[133]. Cybersecurity and Internal Controls - The Company's reliance on information technology makes it vulnerable to cyber-attacks and disruptions, which could negatively impact operations and financial results[154]. - The Company must maintain effective internal controls to ensure accurate financial reporting and fraud prevention[157]. - Failure to maintain adequate internal controls could lead to regulatory scrutiny, civil or criminal penalties, or shareholder litigation[157]. - There are no unresolved written comments from the SEC staff related to the Company's periodic or current reports[158]. Capital Expenditures and Investments - Significant capital expenditures are required for the Company's growth, which may divert resources from product development and debt reduction[147]. - Acquisitions and investments may involve significant cash expenditures and could impair the Company's liquidity and financial stability[149]. Raw Material Supply - The Company has agreements for adequate supplies of raw materials, but future shortages could impact operations if not managed effectively[38].