Silgan (SLGN) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Silgan Holdings Inc. achieved record Q2 2025 EBIT and Adjusted EBIT, driven by strong performance across its dispensing and metal container segments Second Quarter 2025 Highlights Silgan Holdings Inc. achieved record Q2 2025 EBIT and Adjusted EBIT, with strong distribution product growth and mid-single-digit pet food metal container growth - Achieved record second quarter EBIT and Adjusted EBIT[5] - Net sales and Adjusted EBIT for the Dispensing and Specialty Closures segment reached new quarterly highs[5] - Distribution products continued to show strong growth[5] - Metal containers for the pet food market achieved mid-single-digit growth[5] CEO Commentary CEO Adam Greenlee highlighted 15% Q2 2025 Adjusted EPS growth, driven by organic sales, Weener integration, and operational excellence - Adjusted diluted earnings per share (EPS) increased by 15% year-over-year, primarily driven by organic volume growth in key product categories, successful integration of the Weener acquisition, and strong operational performance[4] - The Dispensing and Specialty Closures segment achieved record quarterly results, with strong performance in distribution products[4] - The Metal Containers segment saw significant Adjusted EBIT growth, with mid-single-digit volume growth in the pet food market[4] - The Custom Containers segment's Adjusted EBIT grew, benefiting from improved comparable volumes and effective execution of cost reduction initiatives[4] - First-half Adjusted EBIT was record-setting, increasing by 17% year-over-year[4] - The company anticipates 9% EPS growth and double-digit Adjusted EBIT and free cash flow growth for 2025[4] Second Quarter 2025 Financial Results Silgan Holdings Inc. reported significant Q2 2025 net sales and net income growth, driven by acquisition and raw material cost pass-through Consolidated Financial Performance Silgan Holdings Inc. reported significant Q2 2025 net sales and net income growth, driven by acquisition and cost pass-through Second Quarter 2025 Consolidated Financial Data | Metric | Q2 2025 | Q2 2024 | Change (Millions USD) | Change (%) | | :--------------------------------- | :--------------- | :--------------- | :-------------------- | :------- | | Net Sales (Millions USD) | 1,539.2 | 1,381.4 | 157.8 | 11% | | Net Income (Millions USD) | 89.0 | 76.1 | 12.9 | 17% | | Diluted EPS (USD) | 0.83 | 0.71 | 0.12 | 17% | | Adjusted Diluted EPS (USD) | 1.01 | 0.88 | 0.13 | 15% | | EBIT (Millions USD) | 167.5 | 141.8 | 25.7 | 18% | | Interest and Other Debt Expense (Millions USD) | 48.7 | 41.3 | 7.4 | 18% | | Effective Tax Rate | 25.6% | 24.3% | 1.3 pp | - | - Net sales growth was primarily attributable to the inclusion of the Weener acquisition and the contractual pass-through of raw material costs[7] - Interest and other debt expense increased primarily due to higher borrowings associated with the Weener acquisition during the period[9] - The effective tax rate increased primarily due to a change in the geographic mix of earnings for the current period compared to the prior year period[10] Segment Performance Dispensing and Specialty Closures Dispensing and Specialty Closures achieved record Q2 2025 net sales and Adjusted EBIT, driven by acquisition and organic growth Dispensing and Specialty Closures Segment Q2 2025 Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (Millions USD) | Change (%) | | :----------------- | :--------------------- | :--------------------- | :-------------------- | :------- | | Net Sales | 702.2 | 565.4 | 136.8 | 24% | | Adjusted EBIT | 107.9 | 92.7 | 15.2 | 16% | - Net sales for dispensing products increased by $143.6 million, primarily due to the inclusion of the Weener acquisition and higher organic volumes[11] - Specialty closures volumes in the food and beverage markets decreased by 3% year-over-year, primarily impacted by lower volumes in the North American beverage market due to cooler, wetter weather conditions and lower-than-anticipated promotional activity in Q2 2025[11] - Adjusted EBIT growth primarily resulted from the Weener acquisition and higher organic volumes, partially offset by a decrease in specialty closures volumes in the North American beverage market, impacting Adjusted EBIT by approximately $5 million[12] Metal Containers Metal Containers saw increased Q2 2025 net sales and Adjusted EBIT, driven by favorable price/mix and normalized production Metal Containers Segment Q2 2025 Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (Millions USD) | Change (%) | | :----------------- | :--------------------- | :--------------------- | :-------------------- | :------- | | Net Sales | 676.1 | 650.8 | 25.3 | 4% | | Adjusted EBIT | 70.8 | 58.5 | 12.3 | 21% | - Net sales growth was primarily driven by a 3% price/mix benefit, resulting from the contractual pass-through of raw material and other manufacturing costs, partially offset by an unfavorable mix due to increased volumes of smaller-sized containers in the pet food market[14] - Foreign currency translation contributed approximately 1% to growth[14] - Metal container volumes were flat year-over-year, with mid-single-digit growth in the pet food market partially offset by lower volumes in the soup market[14] - The improvement in Adjusted EBIT primarily resulted from a favorable price/cost relationship (including mix) and normalized production in the current quarter, compared to lower production volumes in the prior year period due to a customer's reduced fruit and vegetable packing schedule in mid-2024[15] Custom Containers Custom Containers saw slight Q2 2025 net sales decrease from exiting low-margin business, but Adjusted EBIT grew from favorable price/cost Custom Containers Segment Q2 2025 Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (Millions USD) | Change (%) | | :----------------- | :--------------------- | :--------------------- | :-------------------- | :------- | | Net Sales | 160.9 | 165.2 | (4.3) | (3%) | | Adjusted EBIT | 24.9 | 22.5 | 2.4 | 11% | - Net sales decreased primarily due to a 2% decline in volumes, largely attributable to exiting low-margin business to achieve cost reduction targets; excluding this exited business, volumes increased by 2%[16] - The growth in Adjusted EBIT primarily resulted from a more favorable price/cost relationship (including mix)[17] Outlook for 2025 The company adjusted its 2025 full-year Adjusted Diluted EPS guidance due to market challenges but maintains a positive outlook for free cash flow and anticipates varied segment performance in Q3 Full Year 2025 Outlook Full-year 2025 Adjusted Diluted EPS guidance was revised due to market challenges, but double-digit free cash flow growth is still projected Full Year 2025 Financial Outlook | Metric | 2025 Revised Estimate | 2024 Actual | Change (%) | | :--------------------------------- | :-------------------- | :--------------- | :------- | | Adjusted Diluted EPS (USD) | 3.85 - 4.05 | 3.62 | 9% (Midpoint) | | Interest and Other Debt Expense (Millions USD) | Approx. 185 | - | - | | Effective Tax Rate | Approx. 24% | - | - | | Free Cash Flow (Millions USD) | Approx. 430 | 391.3 | 10% | | Capital Expenditures (Millions USD) | Approx. 300 | - | - | - The estimated Adjusted Diluted EPS was revised primarily due to anticipated lower specialty closure volumes in the North American beverage market and the expected impact of a recent customer bankruptcy in the North American metal containers business[18] Third Quarter 2025 Outlook Q3 2025 Adjusted EBIT is expected to vary across segments, impacted by lower beverage closure volumes and a customer bankruptcy - Adjusted EBIT for the Dispensing and Specialty Closures and Custom Containers segments is expected to be higher than the prior year period[20] - Adjusted EBIT for the Metal Containers segment is expected to be slightly lower than the prior year period[20] - Third quarter Adjusted EBIT is expected to be impacted by lower specialty closure product volumes in the North American beverage market and the recent customer bankruptcy in the North American metal containers business[20][21] Q3 2025 Adjusted Diluted EPS Outlook | Metric | Q3 2025 Estimated Range | | :----------------------- | :---------------------- | | Adjusted Diluted EPS (USD) | 1.18 - 1.28 | Company Information This section provides an overview of Silgan Holdings Inc.'s global operations, product offerings, investor communication details, and important disclaimers regarding forward-looking statements Business Description Silgan Holdings Inc. is a global leader in sustainable rigid packaging, with $5.9 billion in 2024 net sales and 124 global facilities - Silgan is a leading global supplier of sustainable rigid packaging solutions for essential consumer goods worldwide[23] - Annual net sales were approximately $5.9 billion in 2024[23] - Operates 124 manufacturing facilities globally across North America, South America, Europe, and Asia[23] - Key products include: dispensing and specialty closures (for beauty, food, beverage, personal and health care, home care, and garden products), metal containers (for pet and human food, and general products in North America and Europe), and custom containers (for shelf-stable food and personal care products in North America)[23] Conference Call Details Silgan Holdings Inc. will host a conference call on July 30, 2025, at 11:00 AM ET to discuss its Q2 2025 results - The conference call will be held on Wednesday, July 30, 2025, at 11:00 AM ET[22] - Dial-in numbers are (888) 254-3590 for the U.S. and Canada, and (773) 305-6853 for outside the U.S. and Canada, with conference ID 7251782[22] - An audio webcast will be accessible at www.silganholdings.com and available for replay for 90 days after the call[22] Forward-Looking Statements Non-historical statements are forward-looking, protected by safe harbor, and subject to uncertainties that may cause actual results to differ - Forward-looking statements are based on management's expectations and beliefs about future events and involve uncertainties and risks[24] - Actual operating results or financial condition may differ materially from those expressed or implied in forward-looking statements[24] - Risk factors include those described in the company's 2024 Form 10-K Annual Report and other SEC filings[24] Contact Information Investor relations contact details are provided for inquiries - Contact: Alexander Hutter, Vice President, Investor Relations[25] - Email: AHutter@silgan.com[25] - Phone: 203-406-3187[25] Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including statements of income, balance sheets, cash flows, and supplemental segment data for the specified periods Condensed Consolidated Statements of Income This section presents unaudited condensed consolidated statements of income for Q2 and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Income (Unaudited) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Net Sales (Millions USD) | $1,539.2 | $1,381.4 | $3,005.8 | $2,698.4 | | Cost of Sales (Millions USD) | 1,240.1 | 1,125.4 | 2,436.3 | 2,218.9 | | Gross Profit (Millions USD) | 299.1 | 256.0 | 569.5 | 479.5 | | Selling, General and Administrative Expenses (Millions USD) | 121.8 | 107.7 | 250.9 | 208.2 | | Rationalization Charges (Millions USD) | 9.9 | 6.9 | 20.8 | 18.5 | | Other Pension and Postretirement (Income) (Millions USD) | (0.1) | (0.4) | (0.3) | (0.8) | | EBIT (Millions USD) | 167.5 | 141.8 | 298.1 | 253.6 | | Interest and Other Debt Expense (Millions USD) | 48.7 | 41.3 | 91.6 | 80.0 | | Income Before Provision for Income Taxes (Millions USD) | 118.8 | 100.5 | 206.5 | 173.6 | | Provision for Income Taxes (Millions USD) | 30.4 | 24.4 | 51.3 | 42.3 | | Income Before Equity in Earnings of Affiliates (Millions USD) | 88.4 | 76.1 | 155.2 | 131.3 | | Equity in Earnings of Affiliates, Net of Tax (Millions USD) | 0.6 | — | 1.7 | — | | Net Income (Millions USD) | $89.0 | $76.1 | $156.9 | $131.3 | | Basic Net Income Per Share (USD) | $0.83 | $0.71 | $1.47 | $1.23 | | Diluted Net Income Per Share (USD) | $0.83 | $0.71 | $1.46 | $1.23 | | Cash Dividends Per Common Share (USD) | $0.20 | $0.19 | $0.40 | $0.38 | Condensed Consolidated Balance Sheets This section provides unaudited condensed consolidated balance sheets as of June 30, 2025, June 30, 2024, and December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited) | Metric | June 30, 2025 (Millions USD) | June 30, 2024 (Millions USD) | December 31, 2024 (Millions USD) | | :--------------------------------- | :------------------------ | :------------------------ | :------------------------ | | ASSETS: | | | | | Cash and Cash Equivalents | $317.5 | $302.8 | $822.9 | | Trade Accounts Receivable, Net | 1,242.1 | 1,056.8 | 594.3 | | Inventories | 1,258.5 | 1,005.6 | 928.1 | | Other Current Assets | 190.8 | 173.5 | 177.5 | | Property, Plant and Equipment, Net | 2,382.1 | 1,933.6 | 2,282.9 | | Other Assets, Net | 4,019.4 | 3,220.9 | 3,779.0 | | Total Assets | $9,410.4 | $7,693.2 | $8,584.7 | | LIABILITIES AND STOCKHOLDERS' EQUITY: | | | | | Current Liabilities, Excluding Debt | $1,197.2 | $997.7 | $1,530.7 | | Current and Long-Term Debt | 5,052.1 | 3,929.0 | 4,136.8 | | Other Liabilities | 938.9 | 832.8 | 927.6 | | Stockholders' Equity | 2,222.2 | 1,933.7 | 1,989.6 | | Total Liabilities and Stockholders' Equity | $9,410.4 | $7,693.2 | $8,584.7 | Condensed Consolidated Statements of Cash Flows This section presents unaudited condensed consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric | Six Months 2025 (Millions USD) | Six Months 2024 (Millions USD) | | :--------------------------------- | :------------------------ | :------------------------ | | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | Net Income | $156.9 | $131.3 | | Depreciation and Amortization | 155.3 | 131.9 | | Amortization of Debt Discount and Issuance Costs | 2.6 | 2.7 | | Rationalization Charges | 20.8 | 18.5 | | Trade Accounts Receivable, Net | (601.8) | (474.5) | | Inventories | (293.8) | (74.5) | | Trade Accounts Payable and Other Changes, Net | (344.9) | (262.3) | | Net Cash (Used In) Operating Activities | (904.9) | (526.9) | | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | Capital Expenditures | (155.7) | (131.4) | | Proceeds from Sale of Assets | 9.6 | 3.0 | | Other Investing Activities | 0.3 | 0.1 | | Net Cash (Used In) Investing Activities | (145.8) | (128.3) | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | Cash Dividends Paid on Common Stock | (43.4) | (41.5) | | Change in Outstanding Checks - Primarily for Vendors | (85.0) | (160.6) | | Net Borrowings and Other Financing Activities | 642.3 | 531.0 | | Net Cash Provided By Financing Activities | 513.9 | 328.9 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 31.4 | (13.8) | | Net (Decrease) in Cash and Cash Equivalents | (505.4) | (340.1) | | Beginning Balance | 822.9 | 642.9 | | Ending Balance | $317.5 | $302.8 | Consolidated Supplemental Segment Financial Data This section provides unaudited consolidated supplemental segment financial data for Q2 and six months ended June 30, 2025 and 2024 Consolidated Supplemental Segment Financial Data (Unaudited) | Segment | Q2 2025 Net Sales (Millions USD) | Q2 2024 Net Sales (Millions USD) | Six Months 2025 Net Sales (Millions USD) | Six Months 2024 Net Sales (Millions USD) | | :----------------------- | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Dispensing and Specialty Closures | $702.2 | $565.4 | $1,373.3 | $1,101.3 | | Metal Containers | 676.1 | 650.8 | 1,304.5 | 1,267.9 | | Custom Containers | 160.9 | 165.2 | 328.0 | 329.2 | | Consolidated Total | $1,539.2 | $1,381.4 | $3,005.8 | $2,698.4 | | | | | | | | Segment | Q2 2025 EBIT (Millions USD) | Q2 2024 EBIT (Millions USD) | Six Months 2025 EBIT (Millions USD) | Six Months 2024 EBIT (Millions USD) | | :----------------------- | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Dispensing and Specialty Closures | $89.8 | $78.9 | $169.7 | $138.7 | | Metal Containers | 65.7 | 56.3 | 110.5 | 98.0 | | Custom Containers | 22.6 | 20.5 | 44.7 | 38.3 | | Corporate | (10.6) | (13.9) | (26.8) | (21.4) | | Consolidated Total | $167.5 | $141.8 | $298.1 | $253.6 | Non-GAAP Financial Measures Reconciliation This section provides detailed reconciliations of non-GAAP financial measures, including Adjusted Diluted EPS, Adjusted EBIT, and Adjusted EBITDA, along with explanations for their use and the specific adjustments made Adjusted Net Income Per Diluted Share Reconciliation (Table A) This section provides a reconciliation of Adjusted Net Income Per Diluted Share for Q2 and six months ended June 30, 2025 and 2024 Adjusted Net Income Per Diluted Share Reconciliation (Table A) | Metric | Q2 2025 Net Income (Millions USD) | Q2 2025 Diluted EPS (USD) | Q2 2024 Net Income (Millions USD) | Q2 2024 Diluted EPS (USD) | Six Months 2025 Net Income (Millions USD) | Six Months 2025 Diluted EPS (USD) | Six Months 2024 Net Income (Millions USD) | Six Months 2024 Diluted EPS (USD) | | :--------------------------------- | :------------------------------ | :----------------------------- | :------------------------------ | :----------------------------- | :------------------------------ | :----------------------------- | :------------------------------ | :----------------------------- | | U.S. GAAP Net Income and Diluted EPS | $89.0 | $0.83 | $76.1 | $0.71 | $156.9 | $1.46 | $131.3 | $1.23 | | Adjustments | 19.0 | 0.18 | 17.9 | 0.17 | 39.2 | 0.37 | 35.8 | 0.33 | | Non-GAAP Adjusted Net Income and Adjusted Diluted EPS | $108.0 | $1.01 | $94.0 | $0.88 | $196.1 | $1.83 | $167.1 | $1.56 | | Details of Adjustments: | | | | | | | | | | Amortization of Acquired Intangible Assets | $15.9 | | $12.3 | | $31.3 | | $25.6 | | | Other Pension (Income) from U.S. Pension Plans | (0.9) | | (1.2) | | (1.8) | | (2.4) | | | Rationalization Charges | 9.9 | | 6.9 | | 20.8 | | 18.5 | | | Costs Associated with Announced Acquisitions | — | | 5.5 | | 1.1 | | 5.5 | | | Pre-Tax Impact of Adjustments | 24.9 | | 23.5 | | 51.4 | | 47.2 | | | Tax Impact of Adjustments | 5.9 | | 5.6 | | 12.2 | | 11.4 | | | Net Impact of Adjustments | $19.0 | | $17.9 | | $39.2 | | $35.8 | | | Adjusted Tax Rate | 25.3% | | 24.2% | | 24.6% | | 24.3% | | Adjusted EBIT and Adjusted EBITDA Reconciliation (Table B) This section provides a reconciliation of Adjusted EBIT and Adjusted EBITDA by segment for Q2 and six months ended June 30, 2025 and 2024 Adjusted EBIT and Adjusted EBITDA Reconciliation (Table B) | Segment | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Six Months 2025 (Millions USD) | Six Months 2024 (Millions USD) | | :----------------------- | :--------------------------------- | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Dispensing and Specialty Closures: | EBIT | $89.8 | $78.9 | $169.7 | $138.7 | | | Amortization of Acquired Intangible Assets | 14.4 | 10.9 | 28.4 | 22.6 | | | Other Pension (Income) from U.S. Pension Plans | (0.2) | (0.3) | (0.3) | (0.5) | | | Equity in Earnings of Affiliates, Net of Tax | 0.6 | — | 1.7 | — | | | Rationalization Charges | 3.3 | 3.2 | 7.6 | 9.7 | | | Adjusted EBIT | 107.9 | 92.7 | 207.1 | 170.5 | | | Depreciation | 37.6 | 25.4 | 73.5 | 50.5 | | | Adjusted EBITDA | $145.5 | $118.1 | $280.6 | $221.0 | | Metal Containers: | EBIT | $65.7 | $56.3 | $110.5 | $98.0 | | | Amortization of Acquired Intangible Assets | 0.4 | 0.3 | 0.7 | 0.7 | | | Other Pension (Income) from U.S. Pension Plans | (0.4) | (0.6) | (1.0) | (1.3) | | | Rationalization Charges | 5.1 | 2.5 | 10.1 | 6.1 | | | Adjusted EBIT | 70.8 | 58.5 | 120.3 | 103.5 | | | Depreciation | 13.6 | 18.9 | 32.9 | 37.8 | | | Adjusted EBITDA | $84.4 | $77.4 | $153.2 | $141.3 | | Custom Containers: | EBIT | $22.6 | $20.5 | $44.7 | $38.3 | | | Amortization of Acquired Intangible Assets | 1.1 | 1.1 | 2.2 | 2.3 | | | Other Pension (Income) from U.S. Pension Plans | (0.3) | (0.3) | (0.5) | (0.6) | | | Rationalization Charges | 1.5 | 1.2 | 3.1 | 2.7 | | | Adjusted EBIT | 24.9 | 22.5 | 49.5 | 42.7 | | | Depreciation | 8.7 | 8.8 | 17.4 | 17.9 | | | Adjusted EBITDA | $33.6 | $31.3 | $66.9 | $60.6 | | Corporate: | EBIT (Loss) | $(10.6) $ | $(13.9) $ | $(26.8) $ | $(21.4) $ | | | Costs Associated with Announced Acquisitions | — | 5.5 | 1.1 | 5.5 | | | Adjusted EBIT | (10.6) | (8.4) | (25.7) | (15.9) | | | Depreciation | 0.1 | 0.1 | 0.2 | 0.1 | | | Adjusted EBITDA | $(10.5) $ | $(8.3) $ | $(25.5) $ | $(15.8) $ | | Total Adjusted EBIT | | 193.0 | 165.3 | 351.2 | 300.8 | | Total Depreciation | | 60.0 | 53.2 | 124.0 | 106.3 | | Total Adjusted EBITDA | | $253.0 | $218.5 | $475.2 | $407.1 | Adjusted Net Income Per Diluted Share Reconciliation (Table C - Outlook) This section provides a reconciliation of Adjusted Net Income Per Diluted Share for Q3 and full-year 2025 estimates and actual 2024 Adjusted Net Income Per Diluted Share Reconciliation (Table C - Outlook) | Metric | Q3 2025 Estimated Net Income (Millions USD) | Q3 2025 Estimated Diluted EPS (USD) | Q3 2024 Actual Net Income (Millions USD) | Q3 2024 Actual Diluted EPS (USD) | Full Year 2025 Estimated Net Income (Millions USD) | Full Year 2025 Estimated Diluted EPS (USD) | Full Year 2024 Actual Net Income (Millions USD) | Full Year 2024 Actual Diluted EPS (USD) | | :--------------------------------- | :---------------------------------- | :--------------------------------- | :---------------------------------- | :--------------------------------- | :---------------------------------- | :--------------------------------- | :---------------------------------- | :--------------------------------- | | U.S. GAAP Net Income and Diluted EPS | $111.5 - $122.2 | $1.04 - $1.14 | $100.1 | $0.93 | $342.5 - $364.0 | $3.19 - $3.39 | $276.4 | $2.58 | | Adjustments | 15.1 | 0.14 | 29.8 | 0.28 | 70.6 | 0.66 | 111.4 | 1.04 | | Non-GAAP Adjusted Net Income and Adjusted Diluted EPS | $126.6 - $137.3 | $1.18 - $1.28 | $129.9 | $1.21 | $413.1 - $434.6 | $3.85 - $4.05 | $387.8 | $3.62 | | Details of Adjustments: | | | | | | | | | | Amortization of Acquired Intangible Assets | $15.9 | | $12.4 | | $63.1 | | $52.6 | | | Other Pension (Income) from U.S. Pension Plans | (0.9) | | (0.7) | | (3.7) | | (4.2) | | | Rationalization Charges | 4.9 | | 19.5 | | 31.8 | | 59.5 | | | Costs Associated with Announced Acquisitions | — | | 7.1 | | 1.1 | | 28.4 | | | Purchase Accounting Inventory Step-Up | — | | — | | — | | 6.1 | | | Loss on Early Extinguishment of Debt | — | | — | | — | | 1.1 | | | Pre-Tax Impact of Adjustments | 19.9 | | 38.3 | | 92.3 | | 143.5 | | | Tax Impact of Adjustments | 4.8 | | 8.5 | | 21.7 | | 32.1 | | | Net Impact of Adjustments | $15.1 | | $29.8 | | $70.6 | | $111.4 | | | Diluted EPS Impact of Adjustments | $0.14 | | $0.28 | | $0.66 | | $1.04 | | Explanation of Non-GAAP Measures This section explains the company's use of non-GAAP financial measures, detailing the rationale for excluding items not reflecting ongoing operations - The company uses non-GAAP financial measures such as Adjusted Diluted EPS, Adjusted EBIT, and Adjusted EBITDA to more appropriately assess its operating performance[42][43][44] - Items excluded from Adjusted Diluted EPS include: amortization of acquired intangible assets, other pension income from U.S. pension plans, rationalization charges, costs associated with announced acquisitions, purchase accounting inventory step-up, and loss on early extinguishment of debt[42] - Items excluded from Adjusted EBIT are similar to those for Adjusted Diluted EPS, but also include equity in earnings of affiliates, net of tax, to reflect the operating performance of unconsolidated affiliates[43] - Adjusted EBITDA is calculated by adding depreciation expense to Adjusted EBIT[44] - The rationale for these adjustments is that excluded items, such as intangible asset amortization, acquisition costs, and inventory step-up losses, do not represent ongoing operating performance, while rationalization charges are considered investments that generate savings[42][43]