Parker Reports Fiscal 2024 Third Quarter Results

  • Sales were a record at $5.07 billion; organic sales increased 1%
  • Segment operating margin was 21.5%, or a record 24.7% adjusted, an increase of 150 basis points
  • EPS were $5.56, or a record $6.51 adjusted, an increase of 10%
  • Company increases outlook for segment operating margin and EPS
  • 2024 Investor Meeting scheduled for May 16 at 2 p.m. Eastern time

CLEVELAND, May 02, 2024 (GLOBE NEWSWIRE) — Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2024 third quarter ended March 31, 2024. Sales were $5.07 billion compared with $5.06 billion in the third quarter of fiscal 2023. Net income was $726.6 million compared with $590.9 million in the prior year quarter. Adjusted net income was $850.7 million, an increase of 10% compared with $771.9 million in the third quarter of fiscal 2023. Earnings per share were $5.56 compared with $4.54 in the prior year quarter. Adjusted earnings per share increased 10% to a record at $6.51 compared with $5.93 in the third quarter of fiscal 2023. Fiscal 2024 year-to-date cash flow from operations increased 20% to a record $2.1 billion, or 14.6% of sales, compared with $1.8 billion, or 12.8% of sales, in the prior year. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

“We produced record results this quarter across nearly all key metrics, a reflection of the strength of our transformed portfolio and our global team’s ability to drive operational improvements,” said Chairman and Chief Executive Officer, Jenny Parmentier. “We delivered significant adjusted segment operating margin improvement with our Aerospace Systems Segment delivering another standout quarter. Our strong performance also led to record year-to-date operating cash flow.”

Segment Results
Diversified Industrial Segment: North American third quarter sales decreased 5% to $2.2 billion and operating income was $490.5 million compared with $489.3 million in the same period a year ago. On an adjusted basis, North American operating income was $538.3 million, or 24.1% of sales, a 120 basis point increase compared with the third quarter of fiscal 2023. International third quarter sales decreased 6% to $1.4 billion and operating income was $309.8 million compared with $329.5 million in the same period a year ago. On an adjusted basis, International operating income was $336.6 million, or 23.5% of sales, a 10 basis point increase compared with the prior year quarter.

Aerospace Systems Segment: Third quarter sales increased 18% to $1.4 billion and operating income was $289.3 million compared with $133.9 million in the same period a year ago. On an adjusted basis, operating income was $376.1 million, or 26.7% of sales, a 320 basis point increase compared with the prior year quarter.

Orders
The company reported the following orders for the quarter ending March 31, 2024, compared with the same quarter a year ago:

  • Orders were flat for total Parker
  • Orders decreased 4% in the Diversified Industrial North America businesses
  • Orders decreased 8% in the Diversified Industrial International businesses
  • Orders increased 15% in the Aerospace Systems Segment on a rolling 12-month average basis.

Outlook
Parker’s outlook for the fiscal year ending June 30, 2024 has been updated. The company expects total sales growth in fiscal 2024 to be approximately 4%; total segment operating margin of approximately 21.2%, or 24.6% on an adjusted basis; and earnings per share in the range of $20.80 to $21.00, or $24.65 to $24.85 on an adjusted basis. Reconciliations of forecasted segment operating margin to adjusted forecasted segment operating margin and forecasted earnings per share to adjusted forecasted earnings per share are included in the financial tables of this press release.

Parmentier added, “We are increasing our outlook for fiscal 2024 based on the strong third quarter performance delivered by our team members and double-digit organic growth in aerospace. Parker remains well positioned to continue producing record performance and creating shareholder value by executing The Win Strategy™. We look forward to presenting more about our promising future at our upcoming investor day on May 16, 2024.”

NOTICE OF WEBCAST: Parker Hannifin’s webcast to discuss its fiscal 2024 third quarter results is available to all interested parties via live webcast today at 11:00 a.m. ET, at www.phstock.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit www.phstock.com.

About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 68 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. Learn more at www.parker.com or @parkerhannifin.

Note on Orders
Orders provide near-term perspective on the company’s outlook, particularly when viewed in the context of prior and future quarterly order rates. However, orders are not in themselves an indication of future performance. All comparisons are at constant currency exchange rates, with the prior year restated to the current-year rates. Beginning in the third quarter of fiscal 2023, all comparisons include acquisitions in both the numerator and denominator and exclude divestitures. Diversified Industrial comparisons are on 3-month average computations and Aerospace Systems comparisons are on rolling 12-month average computations.

Note on Net Income
Net income referenced in this press release is equal to net income attributable to common shareholders.

Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margins; (d) adjusted segment operating income; and (e) organic sales growth. The adjusted net income, earnings per share, segment operating margin, segment operating income and organic sales measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and include all statements regarding future performance, earnings projections, events or developments. Neither Parker nor any of its respective associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements will actually occur. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance and earnings projections of the company, including its individual segments, may differ materially from past performance or current expectations. A change in the economic conditions in individual markets may have a particularly volatile effect on segment performance.

Among other factors which may affect future performance are: changes in business relationships with and purchases by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms or significant changes in financial condition, changes in contract cost and revenue estimates for new development programs and changes in product mix; the impact of political, social and economic instability and disruptions; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the integration of Meggitt PLC; our ability to effectively manage expanded operations from acquisitions; the ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination to undertake business realignment activities and the expected costs thereof and, if undertaken, the ability to complete such activities and realize the anticipated cost savings from such activities; ability to implement successfully capital allocation initiatives, including timing, pricing and execution of share repurchases; availability, limitations or cost increases of raw materials, component products and/or commodities that cannot be recovered in product pricing; global economic factors, including manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates, credit availability and changes in consumer habits and preferences; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and changes; additional liabilities relating to changes in tax rates or exposure to additional income tax liabilities; ability to enter into, own, renew, protect and maintain intellectual property and know-how; leverage and future debt service obligations; potential impairment of goodwill; compliance costs associated with environmental laws and regulations; potential labor disruptions or shortages and the ability to attract and retain key personnel; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; global competitive market conditions, including U.S. trade policies and resulting effects on sales and pricing; local and global political and economic conditions, including the Russia-Ukraine war and other armed conflicts and their residual effects; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; government actions and natural phenomena such as pandemics, floods, earthquakes, hurricanes or other natural phenomena that may be related to climate change; increased cyber security threats and sophisticated computer crime; and success of business and operating initiatives. Readers should consider these forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 and other periodic filings made with the SEC.

Contact: Media –  
  Aidan Gormley – Director, Global Communications and Branding 216-896-3258
  [email protected]  
     
  Financial Analysts –  
  Jeff Miller – Vice President, Investor Relations 216-896-2708
  [email protected]  
     
Stock Symbol: PH – NYSE  
PARKER HANNIFIN CORPORATION – MARCH 31, 2024        
CONSOLIDATED STATEMENT OF INCOME              
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Dollars in thousands, except per share amounts)   2024       2023       2024       2023  
Net sales   $ 5,074,356     $ 5,061,665     $ 14,742,791     $ 13,969,251  
Cost of sales     3,279,650       3,340,764       9,478,961       9,373,032  
Selling, general and administrative expenses   816,337       868,393       2,496,830       2,519,163  
Interest expense     123,732       151,993       387,229       416,718  
Other income, net     (65,406 )     (55,866 )     (228,872 )     (116,131 )
Income before income taxes     920,043       756,381       2,608,643       1,776,469  
Income taxes     193,309       165,421       548,780       402,011  
Net income     726,734       590,960       2,059,863       1,374,458  
Less: Noncontrolling interests     160       71       611       478  
Net income attributable to common shareholders $ 726,574     $ 590,889     $ 2,059,252     $ 1,373,980  
                 
 
                 
Earnings per share attributable to common shareholders:              
Basic earnings per share   $ 5.65     $ 4.61     $ 16.03     $ 10.71  
Diluted earnings per share   $ 5.56     $ 4.54     $ 15.82     $ 10.58  
                 
Average shares outstanding during period – Basic   128,502,829       128,293,039       128,467,209       128,343,788  
Average shares outstanding during period – Diluted   130,593,026       130,151,487       130,169,331       129,831,989  
                 
                 
CASH DIVIDENDS PER COMMON SHARE              
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Amounts in dollars)     2024       2023       2024       2023  
Cash dividends per common share $ 1.48     $ 1.33     $ 4.44     $ 3.99  
                 
RECONCILIATION OF ORGANIC GROWTH              
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
    2024   2023   2024   2023
Sales growth – as reported   0.3 %   23.9 %   5.5 %   19.7 %
Adjustments:              
Acquisitions   %   15.3 %   3.6 %   12.0 %
Divestitures   (0.3)%   (0.5)%   (0.4)%   (0.4)%
Currency (0.6)%   (2.4)%   0.2 %   (3.9)%
Organic sales growth   1.2 %   11.5 %   2.1 %   12.0 %
                         
PARKER HANNIFIN CORPORATION – MARCH 31, 2024            
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Dollars in thousands)     2024       2023       2024       2023  
Net income attributable to common shareholders $ 726,574     $ 590,889     $ 2,059,252     $ 1,373,980  
Adjustments:              
Acquired intangible asset amortization expense   141,216       145,147       438,763       374,417  
Business realignment charges   8,468       8,241       35,914       17,480  
Integration costs to achieve     13,256       31,244       29,676       76,653  
Acquisition-related expenses         1,299             163,540  
Loss on deal-contingent forward contracts                     389,992  
Net loss (gain) on divestitures         10,927       (25,651 )     (362,003 )
Amortization of inventory step-up to fair value         37,642             167,973  
Tax effect of adjustments1     (38,779 )     (53,520 )     (108,403 )     (195,766 )
Adjusted net income attributable to common shareholders $ 850,735     $ 771,869     $ 2,429,551     $ 2,006,266  
                 
RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Amounts in dollars)     2024       2023       2024       2023  
Earnings per diluted share $ 5.56     $ 4.54     $ 15.82     $ 10.58  
Adjustments:              
Acquired intangible asset amortization expense   1.08       1.12       3.36       2.88  
Business realignment charges   0.06       0.06       0.27       0.13  
Integration costs to achieve   0.10       0.24       0.23       0.59  
Acquisition-related expenses         0.01             1.27  
Loss on deal-contingent forward contracts                     3.00  
Net loss (gain) on divestitures         0.09       (0.20 )     (2.78 )
Amortization of inventory step-up to fair value         0.29             1.29  
Tax effect of adjustments1     (0.29 )     (0.42 )     (0.82 )     (1.51 )
Adjusted earnings per diluted share $ 6.51     $ 5.93     $ 18.66     $ 15.45  
                 
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
 
PARKER HANNIFIN CORPORATION – MARCH 31, 2024
BUSINESS SEGMENT INFORMATION      
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Dollars in thousands)     2024       2023       2024       2023
Net sales                
Diversified Industrial:                
North America   $ 2,231,478     $ 2,342,590     $ 6,571,587     $ 6,615,035
International     1,434,165       1,524,515       4,227,057       4,277,227
Aerospace Systems     1,408,713       1,194,560       3,944,147       3,076,989
Total net sales   $ 5,074,356     $ 5,061,665     $ 14,742,791     $ 13,969,251
Segment operating income                
Diversified Industrial:                
North America   $ 490,452     $ 489,349     $ 1,458,355     $ 1,362,256
International     309,759       329,498       900,944       908,958
Aerospace Systems     289,339       133,905       778,711       234,849
Total segment operating income   1,089,550       952,752       3,138,010       2,506,063
Corporate general and administrative expenses   56,782       45,780       162,340       146,341
Income before interest expense and other (income) expense, net   1,032,768       906,972       2,975,670       2,359,722
Interest expense     123,732       151,993       387,229       416,718
Other (income) expense, net     (11,007 )     (1,402 )     (20,202 )     166,535
Income before income taxes   $ 920,043     $ 756,381     $ 2,608,643     $ 1,776,469
                 
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Dollars in thousands)     2024       2023       2024       2023  
Diversified Industrial North America sales   $ 2,231,478     $ 2,342,590     $ 6,571,587     $ 6,615,035  
                 
Diversified Industrial North America operating income   $ 490,452     $ 489,349     $ 1,458,355     $ 1,362,256  
Adjustments:                
Acquired intangible asset amortization     43,945       44,184       133,327       134,816  
Business realignment charges     3,058       761       8,892       2,232  
Integration costs to achieve     841       2,442       2,348       3,759  
Adjusted Diversified Industrial North America operating income   $ 538,296     $ 536,736     $ 1,602,922     $ 1,503,063  
                 
Diversified Industrial North America operating margin     22.0 %     20.9 %     22.2 %     20.6 %
Adjusted Diversified Industrial North America operating margin     24.1 %     22.9 %     24.4 %     22.7 %
                                 
                                 
PARKER HANNIFIN CORPORATION – MARCH 31, 2024            
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Dollars in thousands)     2024       2023       2024       2023  
Diversified Industrial International sales   $ 1,434,165     $ 1,524,515     $ 4,227,057     $ 4,277,227  
                 
Diversified Industrial International operating income   $ 309,759     $ 329,498     $ 900,944     $ 908,958  
Adjustments:                
Acquired intangible asset amortization     22,464       17,266       68,342       50,890  
Business realignment charges     3,895       7,314       23,985       12,232  
Integration costs to achieve     451       2,953       954       3,517  
Adjusted Diversified Industrial International operating income   $ 336,569     $ 357,031     $ 994,225     $ 975,597  
                 
Diversified Industrial International operating margin     21.6 %     21.6 %     21.3 %     21.3 %
Adjusted Diversified Industrial International operating margin     23.5 %     23.4 %     23.5 %     22.8 %
                 
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Dollars in thousands)     2024       2023       2024       2023  
Aerospace Systems sales   $ 1,408,713     $ 1,194,560     $ 3,944,147     $ 3,076,989  
                 
Aerospace Systems operating income   $ 289,339     $ 133,905     $ 778,711     $ 234,849  
Adjustments:                
Acquired intangible asset amortization     74,807       83,697       237,094       188,711  
Business realignment charges     (12 )     166       318       3,016  
Integration costs to achieve     11,964       25,849       26,374       69,377  
Amortization of inventory step-up to fair value           37,642             167,973  
Adjusted Aerospace Systems operating income   $ 376,098     $ 281,259     $ 1,042,497     $ 663,926  
                 
Aerospace Systems operating margin     20.5 %     11.2 %     19.7 %     7.6 %
Adjusted Aerospace Systems operating margin     26.7 %     23.5 %     26.4 %     21.6 %
                 
(Unaudited)   Three Months Ended March 31,   Nine Months Ended March 31,
(Dollars in thousands)     2024       2023       2024       2023  
Total net sales   $ 5,074,356     $ 5,061,665     $ 14,742,791     $ 13,969,251  
                 
Total segment operating income   $ 1,089,550     $ 952,752     $ 3,138,010     $ 2,506,063  
Adjustments:                
Acquired intangible asset amortization     141,216       145,147       438,763       374,417  
Business realignment charges     6,941       8,241       33,195       17,480  
Integration costs to achieve     13,256       31,244       29,676       76,653  
Amortization of inventory step-up to fair value           37,642             167,973  
Adjusted total segment operating income   $ 1,250,963     $ 1,175,026     $ 3,639,644     $ 3,142,586  
                 
Total segment operating margin     21.5 %     18.8 %     21.3 %     17.9 %
Adjusted total segment operating margin     24.7 %     23.2 %     24.7 %     22.5 %
                                 
PARKER HANNIFIN CORPORATION – MARCH 31, 2024        
CONSOLIDATED BALANCE SHEET          
(Unaudited)   March 31,   June 30,   March 31,
(Dollars in thousands)     2024     2023     2023
Assets            
Current assets:            
Cash and cash equivalents   $ 405,484   $ 475,182   $ 534,831
Marketable securities and other investments     9,968     8,390     23,466
Trade accounts receivable, net     2,913,357     2,827,297     2,881,534
Non-trade and notes receivable     310,355     309,167     349,903
Inventories     2,966,336     2,907,879     3,067,614
Prepaid expenses and other     337,055     306,314     376,066
Total current assets     6,942,555     6,834,229     7,233,414
Property, plant and equipment, net     2,870,919     2,865,030     2,843,795
Deferred income taxes     72,808     81,429     131,782
Investments and other assets     1,150,784     1,104,576     1,188,671
Intangible assets, net     7,961,957     8,450,614     8,287,517
Goodwill     10,579,307     10,628,594     10,830,548
Total assets   $ 29,578,330   $ 29,964,472   $ 30,515,727
             
Liabilities and equity            
Current liabilities:            
Notes payable and long-term debt payable within one year   $ 4,080,759   $ 3,763,175   $ 1,992,919
Accounts payable, trade     1,964,211     2,050,934     2,080,147
Accrued payrolls and other compensation     514,021     651,319     543,527
Accrued domestic and foreign taxes     358,061     374,571     270,807
Other accrued liabilities     1,077,318     895,371     900,769
Total current liabilities     7,994,370     7,735,370     5,788,169
Long-term debt     7,290,208     8,796,284     11,412,304
Pensions and other postretirement benefits     455,254     551,510     781,139
Deferred income taxes     1,528,529     1,649,674     1,780,533
Other liabilities     709,548     893,355     960,417
Shareholders’ equity     11,590,852     10,326,888     9,781,297
Noncontrolling interests     9,569     11,391     11,868
Total liabilities and equity   $ 29,578,330   $ 29,964,472   $ 30,515,727
             
PARKER HANNIFIN CORPORATION – MARCH 31, 2024    
CONSOLIDATED STATEMENT OF CASH FLOWS        
(Unaudited)   Nine Months Ended March 31,
(Dollars in thousands)     2024       2023  
Cash flows from operating activities:        
Net income   $ 2,059,863     $ 1,374,458  
Depreciation and amortization     696,463       609,066  
Stock incentive plan compensation     128,682       117,536  
Gain on sale of businesses     (23,667 )     (366,345 )
Loss (gain) on property, plant and equipment and intangible assets     5,847       (1,270 )
Gain on marketable securities     (55 )     (1,391 )
Gain on investments     (2,555 )     (4,341 )
Net change in receivables, inventories and trade payables     (244,268 )     (19,052 )
Net change in other assets and liabilities     (427,509 )     (77,389 )
Other, net     (45,724 )     163,622  
Net cash provided by operating activities     2,147,077       1,794,894  
Cash flows from investing activities:        
Acquisitions (net of cash of $89,704 in 2023)           (7,146,110 )
Capital expenditures     (283,328 )     (272,603 )
Proceeds from sale of property, plant and equipment     8,905       11,821  
Proceeds from sale of businesses     75,561       471,720  
Purchases of marketable securities and other investments     (10,091 )     (31,275 )
Maturities and sales of marketable securities and other investments     8,664       35,075  
Payments of deal-contingent forward contracts           (1,405,418 )
Other     5,988       251,875  
Net cash used in investing activities     (194,301 )     (8,084,915 )
Cash flows from financing activities:        
Net payments for common stock activity     (237,689 )     (199,911 )
Acquisition of noncontrolling interests     (2,883 )      
Net (payments for) proceeds from debt     (1,193,373 )     906,811  
Financing fees paid           (8,911 )
Dividends paid     (571,583 )     (513,232 )
Net cash (used in) provided by financing activities     (2,005,528 )     184,757  
Effect of exchange rate changes on cash     (16,946 )     (7,781 )
Net decrease in cash, cash equivalents and restricted cash     (69,698 )     (6,113,045 )
Cash, cash equivalents and restricted cash at beginning of year     475,182       6,647,876  
Cash and cash equivalents at end of period   $ 405,484     $ 534,831  
         
PARKER HANNIFIN CORPORATION – MARCH 31, 2024  
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN
     
(Unaudited)    
(Amounts in percentages)   Fiscal Year 2024
Forecasted segment operating margin ~21.2%
Adjustments:  
Business realignment charges 0.3%
Costs to achieve   0.2%
Acquisition-related intangible asset amortization expense   2.9%
Adjusted forecasted segment operating margin ~24.6%
 
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
     
(Unaudited)    
(Amounts in dollars)   Fiscal Year 2024
Forecasted earnings per diluted share $20.80 to $21.00
Adjustments:  
Business realignment charges 0.46
Costs to achieve   0.27
Acquisition-related intangible asset amortization expense   4.44
Net gain on divestitures   (0.20)
Tax effect of adjustments1   (1.12)
Adjusted forecasted earnings per diluted share $24.65 to $24.85
     
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

 

 


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