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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________________ 
 
FORM 8-K
_____________________________________________________ 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 _____________________________________________________ 

Date of Report (Date of earliest event reported): April 25, 2024

carlislelogoaq12020.jpg
www.carlisle.com 
 
CARLISLE COMPANIES INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware   001-09278   31-1168055
(State or other jurisdiction of incorporation or organization) (Commission File Number) (I.R.S. Employer Identification No.)
 
16430 North Scottsdale Road, Suite 400, Scottsdale, Arizona 85254
(Address of principal executive offices, including zip code)

480-781-5000
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class   Trading Symbol(s)   Name of exchange on which registered
Common stock, $1 par value CSL New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐    Emerging growth company

☐    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02.            Results of Operations and Financial Condition.
 
On April 25, 2024, Carlisle Companies Incorporated (the “Company”) issued a press release regarding the Company’s financial results for the first quarter ended March 31, 2024. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished herewith and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01.            Financial Statements and Exhibits.
 
(d)          Exhibits
  
Exhibit
Number
     Exhibit Title
     
 
Press release of Carlisle Companies Incorporated dated April 25, 2024.
104 Cover page interactive data file (embedded within the inline XBRL document).




SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  CARLISLE COMPANIES INCORPORATED
Date: April 25, 2024 By: /s/ Kevin P. Zdimal
    Kevin P. Zdimal
    Vice President and Chief Financial Officer



EX-99.1 2 q12024-ex991xearningsrelea.htm EX-99.1 Document
Exhibit 99.1
PRESS RELEASE
carlisle_masterlogoxrgb.jpg
4/25/24
Carlisle Companies Reports First Quarter Results
SCOTTSDALE, ARIZONA, April 25, 2024 - Carlisle Companies Incorporated (NYSE:CSL) today announced its first quarter 2024 financial results.
•Diluted EPS of $3.52 and adj. EPS of $3.72, an increase of 85% YoY
◦Revenue of $1.1 billion, an increase of 23% YoY
◦Operating margin of 20.5% and adj. EBITDA margin of 24.2%, expanded 530 bps YoY
•CCM expanded adj. EBITDA margin by 510 bps on 36% YoY sales growth
•CWT delivered adj. EBITDA margin expansion of 370 bps on 1% lower sales
•Signed definitive agreements to sell CIT and acquire MTL
•Raising 2024 outlook to include ~10% revenue growth and >100 bps margin expansion

Comments from Chris Koch, Chair, President and Chief Executive Officer
"We were pleased with our overall sales growth and margin expansion during the first quarter which reinforces the underlying themes and key strategies we have outlined in Vision 2030. While still early in the year, our general market feedback indicates the overall construction markets we participate in will have a productive 2024 season. Growing re-roof activity from pent-up demand, favorable weather conditions fostering healthy construction activity, and normalized customer inventory levels all positively impacted our first quarter efforts. We are pleased that the margin expansion delivered in the second half of 2023 continues as we benefit from synergies from the Henry integration, our on-going COS initiatives, and operating efficiencies on higher volumes. Pricing continues to be in-line with our expectations, and we are optimistic on pricing for the balance of the year based on the recent price increases in the industry.
“After announcing our Vision 2030 plan in December of last year, we took the final step in delivering on our commitment to becoming a pure play building products company with the announced sale of CIT in January for approximately $2 billion to Amphenol. Furthermore, in March, we announced the signing of an agreement to acquire MTL, a specialty manufacturer of high-performance metal edge and wall systems. Both actions reinforce our commitment to our pure play building products strategy, our philosophy of superior capital allocation, and ultimately driving best-in-class ROIC. We are very excited with the planned acquisition of MTL which aligns seamlessly with Carlisle’s Vision 2030 strategy to invest in and enhance our building envelope product portfolio.
“Continuing with our capital allocation theme, as part of our plan to repurchase $1.4 billion of shares in 2024, we deployed $150 million in the first quarter to share repurchases.
“As we move through the rest of 2024, we are excited to continue to share the Vision 2030 story and discuss the value creation opportunity unlocked by our transition to a pure play building products portfolio. As mentioned earlier, our Q1 performance demonstrated many of the themes we discussed in our Vision 2030 presentation, including being well-positioned to leverage mega-trends in energy efficiency, labor savings, and growing re-roof demand within the building envelope marketplace. With this in mind and in combination with the strength of our first quarter results, we are increasing our full year 2024 outlook to approximately 10% revenue growth with adjusted EBITDA margins expanding by at least 100 basis points."



First Quarter 2024 Financial Summary
  Three Months Ended
March 31,
(in millions, except per share amounts) 2024 2023 Change %
Revenues $ 1,096.5  $ 892.6  22.8  %
Operating income 225.2  120.7  86.6  %
Operating margin 20.5  % 13.5  % 700 bps
Income from continuing operations 170.9  83.6  104.4  %
Adjusted EBITDA 265.5  168.6  57.5  %
Adjusted EBITDA margin 24.2  % 18.9  % 530 bps
Diluted EPS 3.52  1.61  118.6  %
Adjusted diluted EPS 3.72  2.01  85.1  %
First Quarter 2024 Segment Highlights
Carlisle Construction Materials ("CCM")
•Revenue of $784 million, increased 36.0% (+35.9% organic) year-over-year, driven by the end of channel destocking, growing re-roof activity and favorable weather.
•Operating income was $211 million and adjusted EBITDA was $227 million, up 65.8% year-over-year, reflecting an adjusted EBITDA margin of 28.9%. The 510 basis point increase was driven by strong operating leverage on higher revenues as well as operating efficiencies through COS.
Carlisle Weatherproofing Technologies ("CWT")
•Revenue of $313 million, declined 1.2% (-2.5% organic) primarily due to lower pricing.
•Operating income was $42 million and adjusted EBITDA was $65 million, up 20.0% year-over-year reflecting an adjusted EBITDA margin of 20.7%. The 370 basis point increase was driven by strategic sourcing, execution of COS, and realized synergies from the Henry acquisition.
Cash Flow
Operating cash flow from continuing operations for the three months ended March 31, 2024, was $156 million, an increase of $33 million versus the prior year. Free cash flow from continuing operations was $132 million, an increase of $42 million versus the prior year (defined as cash provided by operating activities less capital expenditures and comprised of continuing operations). This increase was driven by higher income from operations more than offsetting an increase in working capital uses, as a result of the increase in revenues.
During the three months ended March 31, 2024, we deployed $150 million toward share repurchases and paid $42 million in cash dividends. As of March 31, 2024, we had 6.9 million shares available for repurchase under our share repurchase program with $553 million of cash and cash equivalents and $1 billion of availability under our revolving credit facility.
2024 Outlook
•FY 2024 revenues to increase ~10%
◦CCM - FY 2024 revenues to increase low double digits
◦CWT - FY 2024 revenues to increase mid single digits
•Adjusted EBITDA margins expanding >100 bps



Conference Call and Webcast
Carlisle will discuss first quarter 2024 results on a conference call at 5:00 p.m. ET today. The call can be accessed via webcast, along with related materials, at www.carlisle.com/investors/events-and-presentations and via telephone as follows:
Domestic toll free: 800-549-8228
International: 646-564-2877
Conference ID: 27308
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "should," "estimate," "will," "plans," "intends," "forecast," and similar expressions, and reflect our expectations concerning the future. Such statements are made based on known events and circumstances at the time of publication and, as such, are subject in the future to unforeseen risks and uncertainties. It is possible that our future performance may differ materially from current expectations expressed in these forward-looking statements, due to a variety of factors such as: increasing price and product/service competition by foreign and domestic competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; our mix of products/services; increases in raw material costs that cannot be recovered in product pricing; domestic and foreign governmental and public policy changes including environmental and industry regulations; the ability to meet our goals relating to our intended reduction of greenhouse gas emissions, including our net zero commitments; threats associated with and efforts to combat terrorism; protection and validity of patent and other intellectual property rights; the identification of strategic acquisition targets and our successful completion of any transaction and integration of our strategic acquisitions; our successful completion of strategic dispositions; the cyclical nature of our businesses; the impact of information technology, cybersecurity or data security breaches at our businesses or third parties; the outcome of pending and future litigation and governmental proceedings; the emergence or continuation of widespread health emergencies such as the COVID-19 pandemic, including, for example, expectations regarding their impact on our businesses, including on customer demand, supply chains and distribution systems, production, our ability to maintain appropriate labor levels, our ability to ship products to our customers, our future results, or our full-year financial outlook; and the other factors discussed in the reports we file with or furnish to the Securities and Exchange Commission from time to time. In addition, such statements could be affected by general industry and market conditions and growth rates, the condition of the financial and credit markets and general domestic and international economic conditions, including inflation and interest rate and currency exchange rate fluctuations. Further, any conflict in the international arena, including the Russian invasion of Ukraine and war in the Middle East, may adversely affect general market conditions and our future performance. Any forward-looking statement speaks only as of the date on which that statement is made, and we undertake no duty to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which that statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of those factors, nor can it assess the impact of each of those factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.



Non-GAAP Disclosure
Carlisle reports its financial results in accordance with the U.S. generally accepted accounting principles (GAAP). This press release also contains certain financial measures such as adjusted diluted EPS, adjusted EBITDA, adjusted EBITDA margin, organic revenue, return on invested capital (ROIC) and free cash flow that are not recognized under GAAP. Management believes that adjusted diluted EPS, adjusted EBITDA, adjusted EBITDA margin, organic revenue and ROIC are useful to investors because they allow for comparison to Carlisle’s and its segments' performance in prior periods without the effect of items that, by their nature, tend to obscure core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. Management also believes free cash flow is useful to investors as an additional way of viewing Carlisle's liquidity and provides a more complete understanding of factors and trends affecting Carlisle's cash flows. As a result, management believes that these measures enhance the ability of investors to analyze trends in Carlisle’s businesses and evaluate Carlisle’s performance relative to similarly-situated companies. Reconciliations of these measures to amounts reported in Carlisle's consolidated financial statements are in the supplemental schedules of this press release. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Carlisle is not providing reconciliations for forward-looking non-GAAP financial measures because Carlisle does not provide GAAP financial measures on a forward-looking basis as Carlisle is unable to predict with reasonable certainty the ultimate outcome of adjusted items with unreasonable effort. There items are uncertain, depend on various factors, and could be material to Carlisle's financial results computed in accordance with GAAP.
About Carlisle Companies Incorporated
Carlisle Companies Incorporated is a leading supplier of innovative building envelope products and solutions for more energy efficient buildings. Through its building products businesses – Carlisle Construction Materials ("CCM") and Carlisle Weatherproofing Technologies ("CWT") – and family of leading brands, Carlisle delivers innovative, labor-reducing and environmentally responsible products and solutions to customers through the Carlisle Experience. Carlisle is committed to generating superior shareholder returns and maintaining a balanced capital deployment approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Leveraging its culture of continuous improvement as embodied in the Carlisle Operating System ("COS"), Carlisle has committed to achieving net-zero greenhouse gas emissions by 2050.
CONTACT: Mehul Patel
  Vice President, Investor Relations
(310) 592-9668
  mpatel@carlisle.com
* EPS referenced in this release is from continuing operations unless otherwise noted.


Carlisle Companies Incorporated
Unaudited Consolidated Statements of Income
 
  Three Months Ended
March 31,
(in millions, except per share amounts) 2024 2023
Revenues $ 1,096.5  $ 892.6 
Cost of goods sold 697.6  621.4 
Selling and administrative expenses 166.8  142.2 
Research and development expenses 9.2  6.8 
Other operating (income) expense, net (2.3) 1.5 
Operating income 225.2  120.7 
Interest expense, net 18.6  18.8 
Interest income (7.9) (4.5)
Other non-operating income, net (0.3) (1.0)
Income from continuing operations before income taxes 214.8  107.4 
Provision for income taxes 43.9  23.8 
Income from continuing operations 170.9  83.6 
Discontinued operations:    
Income before income taxes 21.9  21.2 
Provision for income taxes 0.5  3.1 
Income from discontinued operations 21.4  18.1 
Net income $ 192.3  $ 101.7 
Basic earnings per share attributable to common shares:    
Income from continuing operations $ 3.57  $ 1.63 
Income from discontinued operations 0.45  0.36 
Basic earnings per share $ 4.02  $ 1.99 
Diluted earnings per share attributable to common shares:    
Income from continuing operations $ 3.52  $ 1.61 
Income from discontinued operations 0.45  0.35 
Diluted earnings per share $ 3.97  $ 1.96 
Average shares outstanding:    
Basic 47.8  51.1 
Diluted 48.4  51.7 
Dividends declared and paid per share $ 0.85  $ 0.75 





Carlisle Companies Incorporated
Unaudited Condensed Consolidated Statements of Cash Flows

  Three Months Ended
March 31,
(in millions) 2024 2023
Net cash provided by operating activities $ 163.5  $ 149.6 
Investing activities:    
Capital expenditures (32.5) (40.2)
Investment in securities 0.2  0.5 
Other investing activities, net 0.3  8.0 
Net cash used in investing activities (32.0) (31.7)
Financing activities:    
Repurchases of common stock (150.0) (50.0)
Dividends paid (41.5) (38.9)
Proceeds from exercise of stock options 42.5  4.8 
Withholding tax paid related to stock-based compensation (16.2) (9.9)
Other financing activities, net (0.9) (0.8)
Net cash used in financing activities (166.1) (94.8)
Effect of foreign currency exchange rate changes on cash and cash equivalents
(0.7) 0.8 
Change in cash and cash equivalents (35.3) 23.9 
Less: change in cash and cash equivalents of discontinued operations (11.2) 2.5 
Cash and cash equivalents at beginning of period 576.7  364.7 
Cash and cash equivalents at end of period $ 552.6  $ 386.1 

Carlisle Companies Incorporated
Unaudited Selected Consolidated Balance Sheet Data

(in millions) March 31,
2024
December 31,
2023
Cash and cash equivalents $ 552.6  $ 576.7 
Long-term debt, including current portion 2,289.7  2,289.4 
Total stockholders' equity 2,859.3  2,829.0 




Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - Organic Revenue
Organic revenue (defined as revenue excluding acquired revenues within the last 12 months and the impact of changes in foreign exchange rates versus the U.S. Dollar) is intended to provide investors and others with information about Carlisle's and its segments' recurring operating performance. This information differs from revenue determined in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should not be considered in isolation or as a substitute for measures of performance determined in accordance with GAAP. Carlisle's and its segments' organic revenue follows, which may not be comparable to similarly titled measures reported by other companies.
Three Months Ended March 31,
(in millions, except percentages) CSL CCM CWT
2023 Revenues (GAAP)
$ 892.6  $ 576.0  $ 316.6 
Organic 199.2  22.3  % 207.1  35.9  % (7.9) (2.5) %
Acquisitions 4.0  0.4  % —  —  % 4.0  1.2  %
FX impact 0.7  0.1  % 0.5  0.1  % 0.2  0.1  %
Total change 203.9  22.8  % 207.6  36.0  % (3.7) (1.2) %
2024 Revenues (GAAP)
$ 1,096.5  $ 783.6  $ 312.9 
Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - Free Cash Flow
Free cash flow is intended to provide investors and others with information about Carlisle's liquidity and provides a more complete understanding of factors and trends affecting Carlisle's cash flows. This information differs from operating cash flow determined in accordance with GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with GAAP. Carlisle's free cash flow follows, which may not be comparable to similarly titled measures reported by other companies.
Three Months Ended
March 31,
(in millions) 2024 2023
Operating cash flow (GAAP) $ 163.5  $ 149.6 
Less: operating cash flow from discontinued operations 7.5  26.5 
Operating cash flow from continuing operations $ 156.0  $ 123.1 
Capital expenditures (GAAP) $ (32.5) $ (40.2)
Less: capital expenditures from discontinued operations (8.5) (6.8)
Capital expenditures from continuing operations $ (24.0) $ (33.4)
Operating cash flow from continuing operations $ 156.0  $ 123.1 
Capital expenditures from continuing operations (24.0) (33.4)
Free cash flow from continuing operations $ 132.0  $ 89.7 




Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin
Earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA margin are intended to provide investors and others with information about Carlisle's and its segments' performance without the effect of items that, by their nature, tend to obscure core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. As a result, management believes that these measures enhance the ability of investors to analyze trends in Carlisle's businesses and evaluate Carlisle's performance relative to similarly-situated companies. This information differs from net income and operating income determined in accordance with GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with GAAP. Carlisle's and its segments' EBIT, adjusted EBIT, adjusted EBITDA and adjusted EBITDA margin follows, which may not be comparable to similarly titled measures reported by other companies.

  Three Months Ended
March 31,
(in millions, except percentages) 2024 2023
Net income (GAAP) $ 192.3  $ 101.7 
Less: Income from discontinued operations (GAAP) 21.4  18.1 
Income from continuing operations (GAAP) 170.9  83.6 
Provision for income taxes 43.9  23.8 
Interest expense, net 18.6  18.8 
Interest income (7.9) (4.5)
EBIT 225.5  121.7 
Exit and disposal, and facility rationalization costs 0.5  2.3 
Inventory step-up amortization and transaction costs 0.6  1.6 
Impairment charges —  0.9 
Losses from acquisitions and disposals —  3.9 
Gains from litigation —  (0.2)
Total non-comparable items 1.1  8.5 
Adjusted EBIT 226.6  130.2 
Depreciation 16.5  16.1 
Amortization 22.4  22.3 
Adjusted EBITDA $ 265.5  $ 168.6 
Divided by:
Total revenues $ 1,096.5  $ 892.6 
Adjusted EBITDA margin 24.2  % 18.9  %




Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended March 31, 2024
(in millions, except percentages) CCM CWT Corporate and unallocated
Operating income (loss) (GAAP) $ 211.2  $ 42.2  $ (28.2)
Non-operating expense (income), net(1)
0.4  —  (0.7)
EBIT 210.8  42.2  (27.5)
Exit and disposal, and facility rationalization costs —  0.5  — 
Inventory step-up amortization and transaction costs —  —  0.6 
(Gains) losses from acquisitions and disposals (0.1) 0.1  — 
Total non-comparable items (0.1) 0.6  0.6 
Adjusted EBIT 210.7  42.8  (26.9)
Depreciation 12.0  4.1  0.4 
Amortization 4.1  17.8  0.5 
Adjusted EBITDA $ 226.8  $ 64.7  $ (26.0)
Divided by:
Total revenues $ 783.6  $ 312.9  $ — 
Adjusted EBITDA margin 28.9  % 20.7  % NM
(1)Includes other non-operating (income) expense, net, which may be presented in separate line items on the unaudited Consolidated Statements of Income.
Three Months Ended March 31, 2023
(in millions, except percentages) CCM CWT Corporate and unallocated
Operating income (loss) (GAAP) $ 122.4  $ 24.1  $ (25.8)
Non-operating income, net(1)
(0.1) (0.2) (0.7)
EBIT 122.5  24.3  (25.1)
Exit and disposal, and facility rationalization costs 0.1  2.2  — 
Inventory step-up amortization and transaction costs
—  —  1.6 
Impairment charges —  0.9  — 
(Gains) losses from acquisitions and disposals (0.2) 4.1  — 
Gains from litigation —  —  (0.2)
Total non-comparable items (0.1) 7.2  1.4 
Adjusted EBIT 122.4  31.5  (23.7)
Depreciation 10.3  4.8  1.0 
Amortization 4.1  17.6  0.6 
Adjusted EBITDA $ 136.8  $ 53.9  $ (22.1)
Divided by:
Total revenues $ 576.0  $ 316.6  $ — 
Adjusted EBITDA margin 23.8  % 17.0  % NM
(1)Includes other non-operating (income) expense, net, which may be presented in separate line items on the unaudited Consolidated Statements of Income.




Carlisle Companies Incorporated
Unaudited Non-GAAP Financial Measures - Adjusted Net Income and Adjusted Diluted EPS
Adjusted net income and adjusted diluted earnings per share is intended to provide investors and others with information about Carlisle's performance without the effect of items that, by their nature, tend to obscure Carlisle's core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. This information differs from net income and diluted earnings per share determined in accordance with GAAP and should not be considered in isolation or as a substitute for measures of performance determined in accordance with GAAP. Carlisle's adjusted net income and adjusted diluted earnings per share follows, which may not be comparable to similarly titled measures reported by other companies.
Three Months Ended
March 31, 2024
Three Months Ended
March 31, 2023
(in millions, except per share amounts) Pre-tax
Impact
After-tax
Impact(1)
Impact to Diluted EPS(2)
Pre-tax
Impact
After-tax
Impact(1)
Impact to Diluted EPS(2)
Net income (GAAP) $ 192.3  $ 3.97  $ 101.7  $ 1.96 
Less: Income from discontinued operations (GAAP) 21.4  0.45  18.1  0.35 
Income from continuing operations (GAAP) 170.9  3.52  83.6  1.61 
Exit and disposal, and facility rationalization costs 0.5  0.3  0.01  2.3  1.8  0.03 
Inventory step-up amortization and transaction costs 0.6  0.5  0.01  1.6  1.2  0.02 
Impairment charges —  —  —  0.9  0.7  0.01 
Losses from acquisitions and disposals —  —  —  3.9  2.9  0.06 
Gains from litigation —  —  —  (0.2) (0.1) — 
Acquisition-related amortization(3)
21.0  15.8  0.32  21.0  15.8  0.31 
Discrete tax items(4)
—  (7.0) (0.14) —  (1.7) (0.03)
Total adjustments 9.6  0.20  20.6  0.40 
Adjusted net income $ 180.5  $ 3.72  $ 104.2  $ 2.01 
(1)The impact to net income reflects the tax effect of noted items, which is based on the statutory rate in the jurisdiction in which the expense or income is deductible or taxable.
(2)The per share impact of adjustments to each period is based on diluted shares outstanding using the two-class method.
(3)Acquisition-related amortization includes the amortization of customer relationships, technology, trade names and other intangible assets recorded in purchase accounting in connection with a business combination. These intangible assets contribute to revenue generation and the amortization of these assets will recur until such intangible assets are fully amortized.
(4)Discrete tax items include current period tax expense or benefit related to prior year items, excess tax benefits from stock compensation, the tax impact of foreign currency gains and losses, or changes in tax laws or rates.