# MINERALS TECHNOLOGIES INC (MTX) FY 2024 MD&A

Verbatim Item 7 Management's Discussion and Analysis from MINERALS TECHNOLOGIES INC's 10-K for fiscal year 2024.

SEC filing source: https://www.sec.gov/Archives/edgar/data/891014/000089101425000018/form10k.htm
Accession: 0000891014-25-000018
Filing date: 2025-02-21
Report date: 2024-12-31
Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high

Company profile: /company/MTX/
All MD&A years: /company/MTX/mda/
Previous year: /company/MTX/mda/fy2023/ (FY 2023)
Next year: /company/MTX/mda/fy2025/ (FY 2025)

Item 7.  Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Cautionary Statement for “Safe Harbor” Purposes under the Private Securities Litigation Reform Act of 1995

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the
Company. This report contains statements that the Company believes may be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, particularly statements relating to the Company’s objectives, plans or
goals, future actions, future performance or results of current and anticipated products, sales efforts, expenditures, and financial results. From time to time, the Company also provides forward-looking statements in other publicly-released materials,
both written and oral. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues and financial performance, and are not limited to describing historical or current facts. They can be
identified by the use of words such as “outlook,” “forecast,” “believes,” “expects,” “plans,” “intends,” “anticipates,” and other words and phrases of similar meaning.

Forward-looking statements are necessarily based on assumptions, estimates and limited information available at the time they are made. A
broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements. Many of these risks and uncertainties are
difficult to predict or are beyond the Company’s control. Consequently, no forward-looking statements can be guaranteed. Actual future results may vary materially. Significant factors affecting the expectations and forecasts are set forth under “Item
1A — Risk Factors” in this Annual Report on Form 10-K.

The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances that arise after the date
hereof. Investors should refer to the Company’s subsequent filings under the Securities Exchange Act of 1934 for further disclosures.

Executive Summary

Worldwide sales decreased 2%
in 2024 to $2.119 billion as
compared with $2.170 billion in 2023. 
Consolidated income from operations was $286.5 million, as compared with $171.8 million in the prior year.  Included in income from operations for 2024 was $11.3 million of litigation expenses incurred in connection with the bankruptcy of the Company’s subsidiaries, BMI Oldco Inc. (f/k/a Barretts Minerals Inc.)
("Oldco") and Barretts Ventures Texas LLC ("BVT" and together with Oldco, the "Chapter 11 Debtors").  In addition, in 2024, the Company entered into a Debtor-in-Possession Credit Agreement with Oldco (the "DIP Credit Agreement") which resulted in a $30.0 million provision for credit loss charge.  The Company also recorded a $12.3 million net gain on the sale of assets relating to a facility in the Engineered Solutions segment in 2024.  Included in income from operations in 2023 was a $71.7 million non-cash impairment charge for Oldco's fixed assets and $29.2 million of litigation expenses in connection with Oldco's bankruptcy filing and by Oldco to defend
against and restore its reserve for claims associated with certain talc products.  In addition, the Company recorded $6.9 million of restructuring charges in 2023.  Net income was $167.1
million in 2024, as compared to $84.1
million in the prior year.  The Company reported diluted earnings of $5.17 per share in 2024 as compared with $2.58 per share in the prior year.

The Company refinanced its senior secured revolving credit facility and term loan in the fourth quarter of 2024, increasing the aggregate
commitments under the revolving credit facility to $400 million and extending out maturities to 2029 for the revolving credit facility and 2031 for the term loan. In connection with the refinancing, the Company incurred $1.8 million of debt
extinguishment expenses.

In 2024, the Company
continued to deliver on its strategic growth initiatives driven by multi-year advancements in new product development, positioning in growth markets and geographies, geographic penetration and growth from acquisitions.

Our balance sheet continues to be strong.  Cash, cash equivalents and short-term investments were $337.1 million as of December 31, 2024.  Cash flow from operations
for 2024 was $236.4 million.  The
Company currently has more than $700 million of available liquidity, including cash on hand, as well as availability under its revolving credit facility. We believe these factors will allow us to meet our anticipated funding requirements. Our intention
is to maintain a balanced approach to capital deployment, by using cash flow for investments in growth, returns to shareholders, and continued debt reduction.

38

Outlook

The Company will continue to focus on innovation and new product development and other opportunities for sales growth in 2025 from its existing businesses, as follows:

Consumer & Specialties Segment

[[GREPCENT_TABLE]]
[["","\u25cf","Increase our presence and market share in global pet litter products, including in emerging markets."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Deploy new products in pet care such as lightweight litter."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Increase our sales of calcium carbonate products by further penetration into filling and coating applications in the paper and packaging markets."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Promote the Company\u2019s expertise in crystal engineering by developing crystal morphologies that help our customers achieve functional benefits."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Deploy new calcium carbonate products in paint, coating and packaging applications."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Continue developing products and processes for waste management and recycling opportunities to reduce the environmental impact for our customers by reducing energy consumption and improving the sustainability of their products."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Continue to develop innovative applications for our bleaching earth products for edible oil and renewable fuel industries."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Develop new mineral-based solutions for personal care applications."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Increase our presence and market share globally for retinol delivery technology for personal care applications."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Expand our bentonite product solutions for animal health applications."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Increase our presence and market share in fabric care, including in emerging markets."]]
[[/GREPCENT_TABLE]]

Engineered Solutions Segment

[[GREPCENT_TABLE]]
[["","\u25cf","Increase our presence and gain penetration of our bentonite-based foundry solutions in emerging markets."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Deploy value-added formulations of refractory materials that not only reduce costs but improve performance."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Deploy our laser measurement technologies into new applications."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Expand our refractory maintenance model to other steel makers globally."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Continue the development and market penetration of our FLUORO-SORB\u00ae products which address PFAS contamination in soil, groundwater, drinking water sources, landfill leachate and wastewater treatment facilities."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Pursue opportunities for the expanded use of our products in environmental, building and construction, infrastructure, and oil and gas drilling and water treatment globally."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Increase our presence and market share for geosynthetic clay liners globally."]]
[[/GREPCENT_TABLE]]

All Segments

[[GREPCENT_TABLE]]
[["","\u25cf","Further operational excellence principles into all aspects of the organization, including system infrastructure and lean principles."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Continue to explore selective acquisitions to fit our competencies in minerals and our core technologies."]]
[[/GREPCENT_TABLE]]

However, there can be no assurance that we will achieve success in implementing any one or more of these opportunities.

39

Results of Operations

Consolidated Income Statement Review

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["(millions of dollars)","","2024","","","2023","","","2022","","","2024 vs. 2023","","","2023 vs. 2022"],["Net sales","","$","2,118.5","","","$","2,169.9","","","$","2,125.5","","","","(2.4",")%","","","2.1","%"],["Cost of goods sold","","","1,570.8","","","","1,662.8","","","","1,660.5","","","","(5.5",")%","","","0.1","%"],["Production margin","","","547.7","","","","507.1","","","","465.0","","","","8.0","%","","","9.1","%"],["Production margin %","","","25.9","%","","","23.4","%","","","21.9","%"],["Marketing and administrative expenses","","","209.2","","","","206.0","","","","192.1","","","","1.6","%","","","7.2","%"],["Research and development expenses","","","23.0","","","","21.2","","","","20.4","","","","8.5","%","","","3.9","%"],["Provision for credit losses","","","30.0","","","","\u2014","","","","\u2014","","","","*","","","","*"],["Restructuring and other items, net","","","\u2014","","","","6.9","","","","\u2014","","","","*","","","","*"],["Impairment of assets","","","\u2014","","","","71.7","","","","\u2014","","","","*","","","","*"],["Acquisition-related expenses","","","\u2014","","","","0.3","","","","5.1","","","","*","","","","(94.1",")%"],["Gain on sale of assets, net","","","(12.3",")","","","\u2014","","","","\u2014","","","","*","","","","*"],["Litigation expenses","","","11.3","","","","29.2","","","","32.6","","","","(61.3",")%","","","(10.4",")%"],["Income from operations","","","286.5","","","","171.8","","","","214.8","","","","66.8","%","","","(20.0",")%"],["Operating margin %","","","13.5","%","","","7.9","%","","","10.1","%"],["Interest expense, net","","","(56.4",")","","","(59.2",")","","","(43.9",")","","","(4.7",")%","","","34.9","%"],["Debt extinguishment expenses","","","(1.8",")","","","\u2014","","","","(6.9",")","","","*","","","","*"],["Non-cash pension settlement charge","","","\u2014","","","","\u2014","","","","(3.5",")","","","*","","","","*"],["Other non-operating deductions, net","","","(4.7",")","","","(4.9",")","","","(3.8",")","","","(4.1",")%","","","28.9","%"],["Total non-operating deductions, net","","","(62.9",")","","","(64.1",")","","","(58.1",")","","","(1.9",")%","","","10.3","%"],["Income before tax and equity in earnings","","","223.6","","","","107.7","","","","156.7","","","","107.6","%","","","(31.3",")%"],["Provision for taxes on income","","","59.4","","","","23.7","","","","32.1","","","","150.6","%","","","(26.2",")%"],["Effective tax rate","","","26.6","%","","","22.0","%","","","20.5","%"],["Equity in earnings of affiliates, net of tax","","","6.7","","","","4.3","","","","1.7","","","","55.8","%","","","152.9","%"],["Consolidated net income","","","170.9","","","","88.3","","","","126.3","","","","93.5","%","","","(30.1",")%"],["Less: Net income attributable to non-controlling interests","","","3.8","","","","4.2","","","","4.1","","","","(9.5",")%","","","2.4","%"],["Net income attributable to Minerals Technologies Inc. (MTI)","","$","167.1","","","$","84.1","","","$","122.2","","","","98.7","%","","","(31.2",")%"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["*","Not meaningful"]]
[[/GREPCENT_TABLE]]

Net Sales

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["(millions of dollars)","","2024","","","2023","","","2022","","","2024 vs. 2023","","","2023 vs. 2022"],["U.S.","","$","1,089.4","","","$","1,144.0","","","$","1,135.6","","","","(4.8",")%","","","0.7","%"],["International","","","1,029.1","","","","1,025.9","","","","989.9","","","","0.3","%","","","3.6","%"],["Total sales","","$","2,118.5","","","$","2,169.9","","","$","2,125.5","","","","(2.4",")%","","","2.1","%"],["Consumer & Specialties Segment","","$","1,140.2","","","$","1,160.2","","","$","1,124.6","","","","(1.7",")%","","","3.2","%"],["Engineered Solutions Segment","","","978.3","","","","1,009.7","","","","1,000.9","","","","(3.1",")%","","","0.9","%"],["Total sales","","$","2,118.5","","","$","2,169.9","","","$","2,125.5","","","","(2.4",")%","","","2.1","%"]]
[[/GREPCENT_TABLE]]

Worldwide net sales in 2024
decreased 2.4% from the previous year to $2,118.5
million.  Included in sales from the prior year were $40.6 million of sales related to Oldco, which was deconsolidated in the fourth quarter of 2023 and primarily impacted sales in the United States.  Net sales in the United States decreased 4.8% to $1,089.4 million in 2024 and represented 51.0% of consolidated
net sales.  International sales increased 0.3% to $1,029.1 million in 2024 and represented 49.0% of consolidated net sales.

40

Worldwide net sales in 2023
increased 2.1% from the previous year to $2,169.9
million.  Net sales in the United States increased 0.7% to $1,144.0 million in 2023 and represented 53.0% of consolidated net sales. International sales increased 3.6%
to $1,025.9 million in 2023 and
represented 47.0% of consolidated net sales.

Operating Costs and Expenses

Consolidated cost of sales was $1,570.8
million, $1,662.8 million and $1,660.5
million in 2024, 2023 and 2022, respectively.  Production margin as a percentage of net sales was 25.9% in 2024, 23.4% in 2023 and 21.9% in 2022.  Production margin increased in 2024 primarily due to improved pricing, lower input costs and higher productivity.

Marketing and administrative costs were $209.2
million, $206.0 million and $192.1
million in 2024, 2023 and 2022, respectively.  Marketing and administrative costs as a percentage of net sales were 9.9% in 2024, 9.5% in 2023 and 9.0% in 2022.

Research and development expenses were $23.0
million, $21.2 million and $20.4
million in 2024, 2023 and 2022, respectively.  Research and development expenses as a percentage of net sales were 1.1% in 2024, 1.0% in 2023 and 1.0% in 2022.

In 2024, the Company
recorded a $30.0 million provision for credit losses in connection with the DIP Credit Agreement.  In addition, the Company recorded litigation
expenses of $11.3 million in connection with Oldco's bankruptcy filing.  The Company also recorded a $12.3 million net gain on sale of refractories manufacturing assets in China.

In 2023, the Company recorded a $71.7 million non-cash impairment charge relating to Oldco's fixed assets within the Consumer & Specialties segment, $6.9 million in restructuring costs to further streamline our cost structure as a result of organization efficiencies gained through our resegmentation, and $0.3 million of acquisition-related expenses.  In addition, the Company recorded $29.2
million of net litigation expenses in connection with Oldco’s bankruptcy and by Oldco to defend against and restore its reserve for claims associated with certain talc products.

In 2022, the Company recorded $32.6 million of litigation expenses relating to costs incurred to defend against, opportunistically settle, and establish a reserve for claims associated with certain talc products from Oldco.  In addition, the Company recorded a $5.1 million charge for acquisition-related expenses.

Income from Operations

During 2024, the Company
recorded income from operations of $286.5 million, as compared with $171.8 million in the prior year.  Income from operations represented 13.5% of sales
compared with 7.9% of sales in the prior year.  Income from operations in 2024 reflected a $30.0 million charge for a provision of credit losses in connection
with the DIP Credit Agreement and $11.3 million of litigation expenses.  In addition, the Company recorded a $12.3 million net gain on sale of refractories manufacturing assets in China.

During 2023, the Company
recorded income from operations of $171.8 million, as compared with $214.8 million in the prior year.  Income from operations represented 7.9% of sales
compared with 10.1% of sales in the prior year.  Income from operations in 2023 reflected $78.6 million in impairment and restructuring charges and $29.2 million of net litigation expenses.

Non-Operating Income (Deductions)

The Company recorded non-operating deductions, net of $62.9 million in 2024 as compared with $64.1 million in the previous year.

Included in non-operating deductions was net interest expense of $56.4 million in 2024 as compared to $59.2 million in the prior year.  In addition, the Company recorded debt extinguishment expenses of $1.8 million related to the refinancing of its credit facilities in the fourth quarter of 2024.

Included in non-operating deductions was net interest expense
of $59.2 million in 2023 as compared to $43.9 million in the prior year, primarily due to higher interest rates. In 2022, the Company recorded debt extinguishment expenses of $6.9 million
related to the refinancing of its credit facilities.  Additionally, the Company recorded a $3.5 million non-cash pension settlement charge relating to some of the Company’s retirement plans in the United
States.

Provision for Taxes on Income

Provision for taxes was $59.4
million, $23.7 million and $32.1
million in 2024, 2023 and 2022, respectively.  The effective tax rates were 26.6%,
22.0% and 20.5% during 2024, 2023 and 2022, respectively.

41

The higher effective tax rate in 2024
as compared to 2023 was primarily due to the expected credit loss in connection with the DIP Credit Agreement that the Company entered into
with its subsidiary, Oldco.  Such credit loss is not currently deductible as the loans under such agreement are treated as an equity contribution for tax purposes.  The current expected credit loss may become fully deductible in a future period.  The
timing of such deductibility is dependent on developments in the bankruptcy proceedings.

The higher effective tax rate in 2023
as compared to 2022 was primarily due to the impact of rate differentials related to foreign earnings indefinitely invested.

The other factors having the most significant impact on our effective tax rates in recent periods are percentage depletion, the Global
Intangible Low-Tax Income provision ("GILTI"), Foreign-Derived Intangible Income (“FDII”), 162(m) disallowance, and the tax benefits on restructuring and impairment charges.

Percentage depletion allowances (tax deductions for depletion that may exceed our tax basis in our mineral reserves) are available to us
under the income tax laws of the United States for operations conducted in the United States.  The tax benefits from percentage depletion were $10.0 million in 2024, $11.1 million in 2023 and $9.6 million in 2022.

The Company has elected, as its accounting policy, to treat the taxes due from GILTI as a current period expense when incurred. The net
charge to the Company for GILTI was $1.5 million, $1.1 million and $3.5 million for 2024, 2023 and 2022, respectively.

We operate in various countries around the world that have tax laws, tax incentives and tax rates that are significantly different than
those of the United States.  These differences combine to move our overall effective tax rate higher or lower than the United States statutory rate depending on the mix of income relative to income earned in the United States.  The effects of foreign
earnings and the related foreign rate differentials resulted in increases of $10.5 million, $8.2 million and $3.8 million in 2024, 2023 and 2022, respectively.

In December 2021, as part of the Organization for Economic Co-operation and Development’s (“OECD”) Inclusive Framework, 140 member
countries agreed to the implementation of the Pillar Two Global Minimum Tax (“Pillar 2”).  The Company began implementation of the Pillar 2 Model Rules in the first quarter of 2024.  The Company continues to assess the effect of the Pillar 2 rules in
all jurisdictions and does not expect that Pillar 2 will have a material impact on its consolidated financial statements.

Consolidated Net Income Attributable to MTI Shareholders

Consolidated net income was $170.9
million in 2024 and included a $31.7 million charge, net of tax.  This charge consisted of a provision for credit loss and litigation
expenses, offset by a gain on a sale of assets.

Consolidated net income was $88.3
million in 2023 and included a $85.8 million charge, net of tax.  This charge consisted of impairment of assets, litigation expenses,
restructuring and acquisition-related expenses.

Segment Review

The following discussions highlight the operating results for each of our two segments.

Consumer & Specialties Segment

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["(millions of dollars)","2024","","2023","","2022","","2024 vs. 2023","","2023 vs. 2022"],["Net Sales"],["Household & Personal Care","","$","530.0","","","$","517.6","","","$","476.2","","","$","12.4","","","$","41.4"],["Specialty Additives","","","610.2","","","","642.6","","","","648.4","","","","(32.4",")","","","(5.8",")"],["Total net sales","","$","1,140.2","","","$","1,160.2","","","$","1,124.6","","","$","(20.0",")","","$","35.6"],["Income from operations","","$","165.5","","","$","41.6","","","$","79.0","","","$","123.9","","","$","(37.4",")"],["% of net sales","","","14.5","%","","","3.6","%","","","7.0","%"]]
[[/GREPCENT_TABLE]]

2024 v 2023

Net sales in the Consumer & Specialties segment decreased 1.7% to $1,140.2 million, as compared with $1,160.2 million in the prior year.  Household & Personal Care sales increased 2.4%
to $530.0 million from $517.6
million the prior year. This increase was primarily driven by strong demand for our pet litter products in all regions and growth in other high-margin consumer-oriented products.  Specialty Additives sales decreased 5.0% to $610.2 million from $642.6 million primarily as a result of the deconsolidation of Oldco in the fourth quarter of 2023.  Included in Specialty Additives' sales from the prior
year were $40.6 million of sales related to Oldco.

42

Income from operations was $165.5
million in 2024, as compared to $41.6
million in 2023.  In 2023, the Company recorded a $71.7 million non-cash impairment of Oldco's fixed assets and litigation expenses of $29.2
million in connection with Oldco's bankruptcy filing and by Oldco to defend against and restore its reserve for claims associated with certain talc products.

2023 v 2022

Net sales in the Consumer & Specialties segment increased 3.2% to $1,160.2 million, as compared with $1,124.6 million in the prior year.  Household & Personal Care sales increased 8.7% to $517.6 million from $476.2 million in the prior year.  This increase was primarily
driven by strong demand for our pet litter products in all regions and growth in other high-margin consumer-oriented products.  Specialty Additives sales decreased 0.9% to $642.6 million from $648.4 million primarily as a result of the deconsolidation of
Oldco in the fourth quarter of 2023.  Sales for Oldco in the fourth quarter of 2022 were $12.0 million.

Income from operations was $41.6
million in 2023, as compared to $79.0
million in 2022.  In 2023, the
Company recorded a $71.7 million non-cash impairment of assets related to Oldco.  In addition, litigation expenses of $29.2 million and $32.6 million were recorded
in 2023 and 2022, respectively,
relating to Oldco.

Engineered Solutions Segment

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["(millions of dollars)","","2024","","","2023","","","2022","","","2024 vs. 2023","","","2023 vs. 2022"],["Net Sales"],["High-Temperature Technologies","","$","713.2","","","$","720.9","","","$","702.5","","","$","(7.7",")","","$","18.4"],["Environmental & Infrastructure","","","265.1","","","","288.8","","","","298.4","","","","(23.7",")","","","(9.6",")"],["Total net sales","","$","978.3","","","$","1,009.7","","","$","1,000.9","","","$","(31.4",")","","$","8.8"],["Income from operations","","$","174.0","","","$","147.8","","","$","147.1","","","$","26.2","","","$","0.7"],["% of net sales","","","17.8","%","","","14.6","%","","","14.7","%"]]
[[/GREPCENT_TABLE]]

2024 v 2023

Net sales in the Engineered Solutions segment decreased 3.1% to $978.3 million, as compared with $1,009.7 million in the prior year.  High-Temperature Technologies sales decreased 1.1%
to $713.2 million, as compared with $720.9
million in the prior year.  This decrease was driven by softer demand in some industrial end markets.  Environmental & Infrastructure sales decreased 8.2%
to $265.1 million, as compared with $288.8
million in the prior year as a result of low levels of project activity.

Income from operations was $174.0
million and 17.8% of sales, as compared with $147.8
million and 14.6% of sales in the prior year.  Included in income from operations for 2024 is a $12.3 million net gain on sale of assets. 
Included in income from operations for 2023 are $3.2 million of restructuring expenses.

2023 v 2022

Net sales in the Engineered Solutions segment increased 0.9% to $1,009.7 million, as compared with $1,000.9 million in the prior year. High-Temperature Technologies sales increased 2.6% to $720.9 million, as compared with $702.5 million in the prior year.  This increase was
driven by strong demand in the North America market and volume recovery in China. Environmental & Infrastructure decreased 3.2% to $288.8
million, as compared with $298.4 million in the prior year.  This decrease is a result of weak commercial construction activity in 2023.

Income from operations was $147.8
million and 14.6% of sales, as compared with $147.1
million and 14.7% of sales in the prior year.  Included in income from operations for 2023 are $3.2 million of restructuring expenses.

Inflation

While inflation historically has not had a material impact on the Company, our financial performance could be adversely affected by
increases in energy and commodity prices. Our production processes consume a significant amount of energy, primarily electricity, diesel fuel, natural gas and coal. We use diesel fuel to operate our mining and processing equipment and our freight costs
are heavily dependent upon fuel prices and surcharges. Energy costs also affect the cost of raw materials. On a combined basis, these factors represent a large exposure to petrochemical and energy products which may be subject to significant price
fluctuations. The contracts pursuant to which we construct and operate our satellite PCC plants generally adjust pricing to reflect the pass-through of increases in costs resulting from inflation, including lime and energy prices. However, there is a
time lag before such price adjustments can be implemented. The Company and its customers will typically negotiate reasonable price adjustments in order to recover a portion of these escalating costs, but there can be no assurance that we will be able
to recover increasing costs through such negotiations.

43

Cyclical Nature of Customers’ Businesses

Portions of our sales to customers in the paper manufacturing, metalcasting, steel manufacturing, oil and gas and construction industries
have historically been cyclical. The pricing structure of some of our long-term PCC contracts makes our PCC business less sensitive to declines in the quantity of product purchased.  Oil and natural gas prices decreased significantly between 2014 through 2017 and again in 2020, which has caused exploration companies to reduce their capital expenditures and production and exploration activities. This has had the effect of
decreasing the demand and increasing competition for the services we provide. We cannot predict the economic outlook in the countries in which we do business, nor in the key industries we serve.

Liquidity and Capital Resources

Cash provided from continuing operations in 2024 was $236.4 million, compared with $233.6 million in prior year. Cash flows provided from operations in 2024
were principally used to fund capital expenditures, repay debt, repurchase shares and to pay the Company’s dividend to common shareholders. The Company’s intention is to use cash flow for investments in growth, returns to shareholders, and continued
debt reduction.

On November 26, 2024, the Company, entered into a Refinancing Facility Agreement and Incremental Facility Amendment (the
“Amendment”) to amend the Company's previous credit agreement (the "Previous Credit Agreement; the previous credit agreement, as amended by the Amendment, being the "Amended Credit Agreement"). The Amendment provides for, among other things, a new
senior secured revolving credit facility with aggregate commitments of $400 million (the “Revolving Facility”), a portion of which may be used for the issuance of letters of credit and swingline loans, and a new senior secured term loan facility
with aggregate commitments of $575 million (the “Term Loan Facility” and, together with the Revolving Facility, the "Senior Secured Credit Facilities"). The Revolving Facility and the Term Loan Facility replace the facilities under the Previous
Credit Agreement, which provided for, among other things, a $550 million senior secured term loan facility and a $300 million senior secured revolving credit facility. The maturity date for loans and commitments under the Revolving Facility is
November 26, 2029, and the maturity date for loans under the Term Loan Facility is November 26, 2031; provided that the maturity dates of the Revolving Facility and the Term Loan Facility will be adjusted to the date that is 91 days prior to the
stated maturity date of the Company’s 5.0% Senior Notes due 2028 (the “Notes”) unless, prior to the date that is 91 days prior to the stated maturity date of the Notes, all amounts in excess of $50 million of the Notes have been either (a)
refinanced with indebtedness permitted under the Amended Credit Agreement maturing later than 90 days after the scheduled maturity date of the Revolving Facility or of the Term Loan Facility, as applicable, or (b) repaid, discharged or repaid
(other than with the proceeds of any indebtedness maturing earlier than 91 days after the scheduled maturity date of the Revolving Facility or of the Term Loan Facility, as applicable).  Loans under the Term Loan Facility amortize at a rate equal
to 1.00% per annum, payable in equal quarterly instalments, and were issued with original issue discount at 99.875% of par.

Loans under the Revolving Facility will bear interest at a rate equal to (a) for loans denominated in U.S. dollars, at the election
of the Company, Term SOFR plus an applicable margin equal to 1.375% per annum or a base rate plus an applicable margin equal to 0.375% per annum, (b) for loans denominated in Euros, adjusted EURIBOR plus an applicable margin equal to 1.375% per annum
and (c) for loans denominated in Pounds Sterling, SONIA plus an applicable margin equal to 1.375% per annum, subject in each case to (i) an increase of 37.5 basis points in the event that, and for so long as, the Net Leverage Ratio (as defined in the
Amended Credit Agreement) is greater than or equal to 3.00 to 1.00 as of the last day of the preceding fiscal quarter, (ii) an increase of 12.5 basis points in the event that, and for so long as, the Net Leverage Ratio is less than 3.00 to 1.00 and
greater than or equal to 2.00 to 1.00 as of the last day of the preceding fiscal quarter and (iii) a decrease of 12.5 basis points in the event that, and for so long as, the Net Leverage Ratio is less than 1.00 to 1.00 as of the last day of the
preceding fiscal quarter.  Loans under the Term Loan Facility will bear interest at a rate equal to, at the election of the Company, Term SOFR plus an applicable margin equal to 2.00% per annum or a base rate plus an applicable margin equal to 1.00%
per annum.  The Company will pay certain fees under the Amended Credit Agreement, including (a) a commitment fee of 0.175% per annum on the undrawn portion of the Revolving Facility (subject to a step-ups to 0.300% and 0.250% and a step-down to
0.150% at the same levels described above), (b) a fronting fee of 0.125% per annum on the average daily undrawn amount of, plus unreimbursed amounts in respect of disbursements under, letters of credit issued under the Revolving Facility and (c)
customary annual administration fees. The obligations of the Company under the Senior Secured Credit Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company
(the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the tangible and intangible assets of the Company and the Guarantors.

In the fourth quarter of 2024, the Company recorded $1.8 million in non-cash debt extinguishment expenses related to the refinancing of our credit facilities, which represents the difference between the redemption payment and the carrying value of
the debt at the refinancing date. All lenders under the previous facility were repaid in full.

As of December 31, 2024,
there were $4.5 million in loans and $9.1
million in letters of credit outstanding under the Revolving Facility.

44

On June 30, 2020, the Company issued $400 million aggregate principal amount of Notes. The Notes were issued pursuant to an indenture,
dated as of June 30, 2020, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Indenture”).  The Notes bear an interest rate of 5.0% per annum payable semi-annually on January 1 and July 1 of each year, beginning
on January 1, 2021.  The Notes are unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly owned domestic restricted subsidiaries that is a borrower under or that guarantees the Company’s obligations
under its Senior Secured Credit Facilities or that guarantees the Company’s or any of the Company’s wholly owned domestic subsidiaries’ long-term indebtedness in an aggregate amount in excess of $50 million.

The Company may redeem some or all of the Notes at any time and from time to time at the applicable redemption prices listed in
the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.

If the Company experiences a change of control (as defined in the indenture), the Company is required to offer to repurchase the Notes at
101% of the principal amount of such Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase.

The Amended Credit Agreement and the Indenture both contain certain customary affirmative and negative covenants that limit or restrict
the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions, as well as customary events of default. In addition, the Amended Credit Agreement contains a financial covenant that requires the
Company to maintain a maximum Net Leverage Ratio of 4.00 to 1.00 for each four fiscal quarter period (subject to an increase to 5.00 to 1.00 for four quarters in connection with certain significant acquisitions).

The Company has a committed loan facility in Japan. As of December 31, 2024, there was an outstanding balance of $0.9 million on this facility.  Principal
will be repaid in accordance with the payment schedule ending in 2026.  The Company repaid $0.4 million on these loans in 2024.

As part of the Concept Pet acquisition, the Company assumed $1.9 million in long-term debt, recorded at fair value, consisting of two
terms loans, one that matures in 2025 and one that matures in 2027.  Both loans have annual payments and carry a variable interest rate.  The Company repaid $0.3
million on these loans during 2024.

As of December 31, 2024, the
Company had $24.3 million in uncommitted short-term bank credit lines, $0.6 million of which were in use. The credit lines are primarily outside the U.S. and are generally one year in term
at competitive market rates at large, well-established institutions.  The Company typically uses its available credit lines to fund working capital requirements or local capital spending needs.  We anticipate that capital expenditures for 2025 should be between $90 million and $100 million, principally related to
opportunities to improve our operations and meet our strategic growth objectives. We expect to meet our other long-term financing requirements from internally generated funds and committed and uncommitted bank credit lines.

In the second quarter of 2023, the Company entered into a floating to fixed interest rate swap for a notional amount of $150 million.  The fair value of this instrument as of December 31, 2024 is an asset of $0.3 million.

In addition to long-term debt, the Company has committed cash outflow related to pension and post-retirement benefit obligations,
non-cancelable operating leases, primarily for office space and equipment, and other long-term contractual obligations. Other long-term liabilities include tax liabilities, including contingent obligations associated with gross unrecognized tax
benefits for uncertain tax positions and a tax liability for the one-time transition tax on accumulated foreign subsidiary earnings, asset retirement obligations relating to the retirement of certain tangible long-lived assets and land restoration
obligations at the Company’s PCC satellite facilities and mining operations.  See Notes 2, 8, 15, 16 and 20 to the Consolidated Financial Statements.

On October 18, 2023, the Company’s Board of Directors authorized the Company’s management to repurchase, at its discretion, up to $75
million of the Company’s shares over a one-year period.  Over this program's one-year period, 1,034,692 shares have been repurchased under
this program for $75 million, or an average price of approximately $72.48 per share.  This program is now complete.

On October 16, 2024, the Company's Board of Directors authorized the Company's management to repurchase, at its discretion, up to $200
million of the Company's shares.  As of December 31, 2024, 34,934 shares have been repurchased under this program for $2.8 million, or an
average price of approximately $79.27 per share. This authorization has no expiration date.

45

On January 22, 2025, the Company’s Board of Directors declared a regular quarterly dividend on its common stock of $0.11 per share.  No
dividend will be payable unless declared by the Board and unless funds are legally available for payment thereof.

The Company and certain of the Company’s subsidiaries are
among numerous defendants in over six hundred cases seeking damages for alleged exposure to asbestos-contaminated talc products sold by the Company’s subsidiary Oldco. The Company’s position is that these cases are meritless and all talc products
sold by Oldco are safe. On October 2, 2023 (the “Petition Date”), notwithstanding the Company’s confidence in the safety of Oldco’s talc products, the Chapter 11 Debtors filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code in the United States Bankruptcy Court for the Southern District of Texas (the “Chapter 11 Cases”) to address and comprehensively resolve Oldco’s liabilities associated with talc. Minerals Technologies Inc. and the Company’s other subsidiaries
were not included in the Chapter 11 filing. In the second quarter of 2024, Oldco sold its talc assets under section 363 of the U.S. Bankruptcy Code. In
addition, in the second quarter of 2024, the Company entered into a Debtor-in-Possession Credit Agreement with Oldco (the "DIP Credit Agreement") and recorded a provision for credit loss of $30 million for the maximum principal amount under such DIP
Credit Agreement. Proceeds of the sale of Oldco's talc assets, as well as the funds drawn by Oldco under the DIP Credit Agreement, will be used to fund the Chapter 11 Cases. 
The Chapter 11 Debtors' ultimate goal in the Chapter 11 Cases is to confirm a plan of reorganization under Section 524(g) of the U.S. Bankruptcy Code and utilize this provision of the Bankruptcy Code to establish a trust that will address all current
and future talc-related claims.  In January 2024, the Chapter 11 Debtors and Minerals Technologies Inc. commenced a court-approved mediation process with the Official Committee of Unsecured Creditors (appointed in the Chapter 11 Cases as the
representative of current talc claimants) and the Future Claimants Representative (appointed in the Chapter 11 Cases as the representative of future talc claimants) regarding the terms of a potential consensual plan of reorganization and the ultimate
amount to be contributed to any trust.  The mediation process is ongoing. During the pendency of the Chapter 11 Cases, the Company anticipates that the Chapter 11 Debtors will benefit from the operation of the automatic stay, which stays ongoing
litigation in connection with talc-related claims against Oldco. In addition, subject to certain exceptions, the filing or continued prosecution of all talc-related claims against Oldco’s non-debtor affiliates is temporarily stayed through April 15,
2025 (subject to further extensions), the date on which a hearing is scheduled on the status of the Chapter 11 Cases. The Chapter 11 Debtors have been deconsolidated from the Company’s financial statements since the Petition Date. Although the
Chapter 11 Cases are progressing, it is not possible to predict the form of any ultimate resolution or when an ultimate resolution might occur at this time. Accordingly, the amount that will be necessary to fully and finally resolve all of the
Chapter 11 Debtors' current and future talc-related claims in connection with a confirmed Chapter 11 plan of reorganization cannot be estimated with certainty at this time.  See Note 17 to the consolidated financial statements included in this report for more information.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements,
which have been prepared in accordance with U.S. generally accepted accounting principles.  The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities.

On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, valuation of long-lived
assets, goodwill and other intangible assets, income taxes, including valuation allowances and pension plan assumptions. We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values of assets and liabilities that cannot readily be determined from other sources.  There can be no assurance that actual results will not differ from those estimates.

We believe the following critical accounting policies require us to make significant judgments and estimates in the preparation of our
consolidated financial statements.

Revenue Recognition

Revenue is recognized at the point in time when the customer obtains control of the promised goods or services in an amount that reflects
the consideration we expect to receive in exchange for those goods or services.  The Company’s revenues are primarily derived from the sale of products.  Our primary performance obligation is satisfied upon shipment or delivery to our customer based on
written sales terms, which is also when control is transferred.   Revenue, where our performance obligations are satisfied in phases, is recognized over time using certain input measures based on the measurement of the value transferred to the
customer, including milestones achieved.  Revenues from sales of equipment are recorded upon completion of installation and transfer of control to the customer.   Revenues from services are recorded when the services are performed.

46

In most of our PCC contracts, the price per ton is based upon the total number of tons sold to the customer during the year. Under those
contracts, the price billed to the customer for shipments during the year is based on periodic estimates of the total annual volume that will be sold to the customer. Revenues are adjusted at the end of each year to reflect the actual volume sold.
There were no significant revenue adjustments in the fourth quarter of 2024 and 2023, respectively. We have consignment arrangements with certain customers in our Engineered Solutions segment.  Revenues for these transactions are recorded when the consigned products are
consumed by the customer.

Allowance for Credit Losses

The allowance for credit losses (ACL) is management's estimate of the current expected credit losses at the balance sheet date.  Our
credit exposure includes an unfunded load commitment.  For this exposure, we recognized an ACL associated with the unfunded amount, which is reported as a liability in accrued expenses and other current liabilities on our consolidated balance sheet.

Valuation of Long-lived Assets, Goodwill and Other Intangible Assets

We assess the possible impairment of long-lived assets and identifiable amortizable intangibles whenever events or changes in
circumstances indicate that the carrying value may not be recoverable.

Goodwill is evaluated for impairment at least annually.  Factors we consider important that could trigger an impairment review include the
following:

[[GREPCENT_TABLE]]
[["","\u25cf","Significant under-performance relative to historical or projected future operating results;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Significant changes in the manner of use of the acquired assets or the strategy for the overall business;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Significant negative industry or economic trends;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Market capitalization below invested capital."]]
[[/GREPCENT_TABLE]]

Annually, the Company performs a qualitative assessment for each of its reporting units to determine if the two-step process for
impairment testing is required.  If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company then evaluates the recoverability of goodwill using a two-step impairment
test approach at the reporting unit level.  Step one involves a) developing the fair value of total invested capital of each reporting unit in which goodwill is assigned; and b) comparing the fair value of total invested capital for each reporting unit
to its carrying amount, to determine if there is goodwill impairment.  Should the carrying amount for a reporting unit exceed its fair value, then the step one test is failed, and the magnitude of any goodwill impairment is determined under step two. 
The amount of impairment loss is determined in step two by comparing the implied fair value of reporting unit goodwill with the carrying amount of goodwill.

The Company has two reporting units; Consumer & Specialties and Engineered Solutions. We identify our reporting units by assessing
whether the components of our operating segments constitute businesses for which discrete financial information is available, and management regularly reviews the operating results of those components.  In the fourth quarter of 2024, the Company performed a qualitative assessment of each of its reporting units and determined it was not more likely than not that the fair value of
any of its reporting units was less than their carrying values.

Property, plant and equipment are depreciated over their useful lives. Useful lives are based on management’s estimates of the period that
the assets can generate revenue, which does not necessarily coincide with the remaining term of a customer’s contractual obligation to purchase products made using those assets.  Our sales of PCC are predominately pursuant to long-term evergreen
contracts, initially ten years in length, with paper mills at which we operate satellite PCC plants.  The terms of many of these agreements have been extended, often in connection with an expansion of the satellite PCC plant.  Failure of a PCC customer
to renew an agreement or continue to purchase PCC from our facility could result in an impairment of assets or accelerated depreciation at such facility.

We evaluate the recoverability of our property, plant and equipment whenever events or change in circumstances indicate that the carrying
value of the assets may not be recoverable.  For testing the recoverability, we primarily use discounted cash flow models or cost approach to estimate the fair value of these assets.  Critical assumptions used in conducting these tests included
expectations of our business performance and financial results, useful lives of assets, discount rates and comparable market data.

47

When we acquire a company, we determine fair value on the acquisition date of assets acquired and liabilities assumed.  We use the income,
market or cost approach (or a combination thereof) for the valuation and use valuation inputs and analyses that are based on market participant assumptions. Changes in assumptions can have a significant impact on the fair value of tangible assets.
Goodwill is calculated as the excess of the consideration transferred over the assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.

Income Taxes

As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the
jurisdictions in which we operate.  This process involves estimating current tax expense together with assessing temporary differences resulting from differing treatments of items for tax and accounting purposes.  These differences result in deferred
tax assets and liabilities, which are included in the consolidated balance sheet.  We must then assess the likelihood that our deferred tax assets will be recovered from future taxable income, and to the extent we believe that recovery is not likely,
we must establish a valuation allowance.  To the extent we establish a valuation allowance or change this allowance in a period, we must include an expense within the tax provision in the Consolidated Statements of Income.

Deferred tax liabilities represent the amount of income taxes payable in future periods.  Such liabilities arise because of temporary
differences between the financial reporting and tax bases of assets and liabilities.  Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years.  Such assets arise because of temporary
differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating losses.  We evaluate the recoverability of these future tax deductions by assessing the adequacy of future expected taxable income from
all sources, including reversal of taxable temporary differences and forecasted operating earnings.  These sources of income inherently rely heavily on estimates. We use our historical experience and business forecasts to provide insight.  The amount
recorded for the net deferred tax liability was $115.7 million and $123.3 million at December 31, 2024 and 2023, respectively.

The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As
such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax laws and regulations change over time. As such, changes in our subjective assumptions and
judgments can materially affect the amounts recognized in the consolidated balance sheets and statements of operations. See Note 8 to the
Consolidated Financial Statements for additional details on our uncertain tax positions.

Pension Benefits

We sponsor pension and other retirement plans in various forms covering the majority of employees who meet eligibility requirements. 
Several statistical and actuarial models which attempt to estimate future events are used in calculating the expense and liability related to the plans.  These models include assumptions about the discount rate, expected return on plan assets and the
rate of future compensation increases as determined by us, within certain guidelines.  Our assumptions reflect our historical experience and management’s best judgment regarding future expectations.  In addition, our actuarial consultants also use
subjective factors such as withdrawal and mortality rates to estimate these assumptions.  The actuarial assumptions used by us may differ materially from actual results due to changing market and economic conditions, higher or lower withdrawal rates,
or longer or shorter life spans of participants, among other things.

The investment strategy for pension plan assets is to maintain a broadly diversified portfolio designed to both preserve and grow plan
assets to meet future plan obligations. The Company’s average rate of return on assets from inception through December 31, 2024 was
approximately 9%.  The Company’s assets are strategically allocated among equity, debt and other investments to achieve a diversification level
that dampens fluctuations in investment returns.  The Company’s long-term investment strategy is an investment portfolio mix of approximately 55%-65% in equity securities, 30%-35% in fixed income securities and 0%-15% in other securities.  As of December 31, 2024,
the Company had approximately 55% of its pension assets in equity securities, 33% in fixed income securities and 12% in other securities.

The Company recognized pension expense of $1.9
million in 2024 as compared to $5.7
million in 2023.  Accounting guidance on retirement benefits requires companies to discount future benefit obligations back to today’s dollars
using a discount rate that is based on high-quality fixed-income investments.  A decrease in the discount rate increases the pension benefit obligation, while an increase in the discount rate decreases the pension benefit obligation.  This increase or
decrease in the pension benefit obligation is recognized in Accumulated other comprehensive income (loss) and subsequently amortized into earnings as an actuarial gain or loss.  The guidance also requires companies to use an expected long-term rate of
return on plan assets for computing current year pension expense.  Differences between the actual and expected returns are also recognized in Accumulated other comprehensive income (loss) and subsequently amortized into earnings as actuarial gains and
losses.  At the end of 2024, total actuarial losses recognized in Accumulated other comprehensive loss for pension plans were $1.3 million as compared to $32.1 million in 2023.

48

A net gain of $40.6 million
($30.6 million after-tax) primarily due to actuarial gains, driven by a change in discount rates is included in other comprehensive income in 2024. In 2023, a net gain of $7.6 million ($5.6 million after-tax) was
recorded in other comprehensive income, primarily due to actuarial gains, driven by a change in discount rates. In 2022, a net gain of $46.3 million ($35.3 million after-tax) was
recorded in other comprehensive income, primarily due to a change in discount rates.

Actuarial losses for pensions will be impacted in future periods by actual asset returns, discount rate changes, actual demographic
experience and other factors that impact these expenses.  These losses, reported in Accumulated other comprehensive income (loss), will generally be amortized as a component of net periodic benefit cost on a straight-line basis over the average
remaining service period of active employees expected to receive benefits under the benefit plans.  At the end of 2024, the average remaining
service period of active employees or life expectancy for fully eligible employees was 9 years.

For a detailed discussion on the application of these and other accounting policies, see “Summary of Significant Accounting Policies” in
Note 1 to the Consolidated Financial Statements. This discussion and analysis should be read in conjunction with the consolidated financial
statements and related notes included elsewhere in this report.

Recently Issued Accounting Standards

Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial
Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to
be either not applicable or are expected to have a minimal impact on our consolidated financial position and results of operations.

Adoption of Segment Reporting (Topic 280):  Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):  Improvements to Reportable Segment Disclosures”, which
requires entities to report incremental information about significant segment expenses included in a segment’s profit or loss measure, as well as the name and title of the chief operating decision maker.  The guidance also requires interim disclosures
related to reportable segment profit or loss and assets that had previously only been disclosed annually.  The new standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December
15, 2023.  The Company adopted this guidance on January 1, 2024 and updated the disclosures contained in Note 21.  This guidance did not
impact the Company's consolidated financial statements.

Income Taxes (Topic 740):  Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):  Improvements to Income Tax Disclosures”, that requires entities
to disclose additional information about federal, state, and foreign income taxes primarily related to the income tax rate reconciliation and income taxes paid.  The new standard also eliminates certain existing disclosure requirements related to
uncertain tax positions and unrecognized deferred tax liabilities.  The new standard is effective for interim and annual periods beginning on or after December 15, 2024.   The adoption of this standard is not expected to have a material impact on the
Company’s consolidated financial statements but will result in disaggregation of the Company's tax footnote.

Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):  Disaggregation
of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures
(Subtopic 220-40):  Disaggregation of Income Statement Expenses”, that requires entities to disclose additional information in the notes to the financial statements about prescribed categories underlying any relevant income statement expense caption. 
The new standard is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027.  The adoption of this standard is not expected to have a material impact on the Company’s
consolidated financial statements.