Pactiv(US:PTVE)2025-02-25 13:27Divestitures and Business Operations - The company divested its 50% interest in a joint venture with Naturepak Limited in 2022 and completed the sale of its remaining closures businesses in Q4 2022 and Q1 2023[30]. - The company operates 22 manufacturing plants in the Foodservice segment and 28 in the Food and Beverage Merchandising segment, including 5 U.S. beverage carton manufacturing plants[37]. Customer Concentration - In 2024, one customer in the Foodservice segment accounted for approximately 10% of consolidated net revenues, while the ten largest customers represented about 44% of net revenues[31]. Research and Development - The company invested $36 million, $45 million, and $33 million in research and development in 2024, 2023, and 2022, respectively[46]. - As of December 31, 2024, the company held more than 200 patents related to product design, utility, and material formulations[43]. Manufacturing and Sustainability - The company has made significant investments in flexible manufacturing assets to efficiently respond to changing market needs and increase the use of sustainable materials[36]. - The company’s packaging innovations include reclosable beverage cartons and compostable plates, focusing on sustainability and customer needs[44]. - In 2024, the company launched the SmartPour™ line of pourable and resealable packaging, which is conveniently recyclable, improving upon traditional bag-in-box offerings[56]. - As of December 31, 2024, nine facilities have earned International Sustainability and Carbon Certification ("ISCC") PLUS certifications, enabling tracking and verification of recycled and renewable feedstocks[57]. - The company aims to reduce Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% from a 2022 baseline, aligning with the Paris Agreement's goals[59]. Health and Safety - The total recordable incidence rate for 2024 was 1.1, significantly lower than the industry average of 2.7, indicating strong workforce health and safety measures[66]. Labor Practices - Approximately 19% of employees were represented by labor unions as of December 31, 2024, reflecting the company's commitment to fair labor practices[65]. - As of December 31, 2024, the company employed approximately 14,000 people globally, focusing on employee recognition and development opportunities[65]. Community Engagement - The company supported 78 non-profits during its 2024 Give Back Month, contributing approximately 3,700 hours of volunteer service and collecting nearly 160,000 pounds of food for local pantries[68]. Financial Management - The company entered into interest rate swap agreements to hedge a portion of its interest rate exposure, fixing the LIBO rate to a weighted average annual rate of 4.12% for an aggregate notional amount of $1,000 million[328]. - A 100 basis point increase in interest rates would result in an increase in interest expense of $5 million based on outstanding debt commitments as of December 31, 2024[329]. - The company is exposed to commodity price risk from purchases of resin, natural gas, and electricity, and uses various strategies to manage these cost exposures[330]. Distribution Network - The company’s Foodservice segment is the only manufacturer in the U.S. with a nationwide hub-and-spoke distribution network, providing a competitive advantage[35]. Certifications - The company has achieved various food safety certifications across its manufacturing facilities, including British Retail Consortium certification for 31 plants[47].