The company is investing in a multi-year productivity initiative (AAA) to improve supply chain and manufacturing-related spend, optimize selling, general and administrative expenses, and leverage new technology. Total pre-tax costs are estimated at $200-250 million from inception through 2026, with annual savings expected to be approximately $300 million at the program's conclusion.

The International Optimization Program, focused on streamlining resources and investments in select international markets, was completed in 2023. Total pre-tax charges to execute the program totaled $53.799 million.

The North America Salty Snacks segment saw a net sales increase of 6.4% in Q2 2024, driven by volume growth of approximately 9%, primarily related to Dot's Homestyle Pretzels and Pirate's Booty snacks.

The company completed the implementation of a new global enterprise resource planning (ERP) system in April 2024. This resulted in material changes to internal controls over financial reporting, requiring updates to the controls.

Management is undertaking business realignment activities, including the Advancing Agility & Automation Initiative, to increase efficiency and focus the business. These initiatives are expected to generate long-term savings.

Despite efforts to mitigate gross margin pressures, higher prices for direct materials used to manufacture products were, and continue to be, the primary incremental cost to our business. The company is actively managing commodity price risk using derivatives.

The company states that increased marketplace competition could hurt our business, as a risk factor.

The company states that disruptions, failures or security breaches of our information technology infrastructure could have a negative impact on our operations, as a risk factor.

The company states that complications with the design, implementation or usage of our new enterprise resource planning system, including the ability to support post-implementation efforts and maintain enhancements, new features or modifications, could adversely impact our business and operations, as a risk factor.

The U.S. candy, mint and gum (CMG) consumer takeaway declined 5.0% and experienced a CMG market share decline of 138 basis points.

The Salty consumer takeaway increased 8.0% in the second quarter of 2024 and experienced a Salty market share increase of 22 basis points.

The International segment net sales decreased by 8.9% due to volume declines of approximately 16% across the segment, partially offset by growth in India and Europe.

Gross margin was 40.2% in the second quarter of 2024 compared to 45.5% in the same period of 2023, a decrease of 530 basis points. The decrease was partially offset by lower supply chain costs.

The company periodically undertakes business realignment activities designed to increase our efficiency and focus our business in support of our key growth strategies.

The ERP system is designed to accurately maintain the Company's financial records, enhance operational functionality, and provide timely information to the Company's management team related to the operation of the business.

SM&A expenses, excluding advertising and related consumer marketing, decreased 0.8% in the second quarter of 2024 driven by lower compensation costs across segments, partially offset by $24.1 million of incremental business realignment costs, as well as higher investments in capabilities and technology.

The costs in 2024 related to the Advancing Agility & Automation (AAA) Initiative, which commenced in 2024, focused on leveraging new technology to improve supply chain and manufacturing-related spend, and optimize selling, general and administrative expenses.

During the second quarter of 2024, we completed the process of our multi-year implementation of a new global enterprise resource planning (“ERP”) system, which replaced our existing operating and financial systems.

The company repurchases shares of Common Stock to offset the dilutive impact of treasury shares issued under our equity compensation plans.

We expect 2024 capital expenditures, including capitalized software, to approximate $600 million to $625 million, a slight decrease from our previously estimated range of $600 million to $650 million.

Total dividend payments to holders of our Common Stock and Class B Common Stock were $543.9 million during the first six months of 2024, an increase of $130.4 million compared to $413.5 million in the same period of 2023.

We make investments in partnership entities that in turn make equity investments in projects eligible to receive federal historic and renewable energy tax credits.

The company states that risks associated with climate change and other environmental impacts, and increased focus and evolving views of our customers, stockholders and other stakeholders on climate change issues, could negatively affect our business and operations, as a risk factor.

The company states that Our Company's reputation or brand image might be impacted as a result of issues or concerns relating to the quality and safety of our products, ingredients or packaging, human and workplace rights, and other environmental, social or governance matters, which in turn could result in litigation or otherwise negatively impact our operating results, as a risk factor.

Throughout the first six months of 2024, U.S. consumer behavior has continued to shift and evolve, as cost fatigue and labor markets restrict income growth and constrain consumer spending and purchasing patterns.

Furthermore, certain geopolitical events, specifically the conflict between Russia and Ukraine, have increased global economic and political uncertainty.

As such, during the six months ended June 30, 2024, we continued to experience a dynamic macroeconomic environment, including price volatility related to select commodities, resulting in corresponding incremental costs and gross margin pressures, and net sales and net income declines.