• Sales increased 9% to $4.09 billion, organic sales increased 11%
  • Segment operating margin was 20.3% as reported, or 22.7% adjusted
  • Adjusted segment operating margin increased 130 bps vs. prior year
  • Net income was $348.0 million, or $630.2 million adjusted
  • EPS were $2.67 as reported, or $4.83 adjusted
  • Company recently announced a 29% increase to the quarterly cash dividend
  • Fiscal 2022 adjusted EPS guidance increased

CLEVELAND, May 05, 2022 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the fiscal 2022 third quarter ended March 31, 2022. Fiscal 2022 third quarter sales were an all-time record at $4.09 billion, an increase of 9%, compared with $3.75 billion in the third quarter of fiscal 2021. Net income was $348.0 million, compared with $473.2 million in the prior year quarter. Fiscal 2022 third quarter adjusted net income was $630.2 million, compared with $541.9 million in the third quarter of fiscal 2021. Adjustments include a non-cash, pre-tax loss of $247 million in the fiscal 2022 third quarter on the deal contingent forward contracts related to the previously announced acquisition of Meggitt plc. Earnings per share were $2.67, compared with $3.60 in the third quarter of fiscal 2021. Adjusted earnings per share increased 17% to a record of $4.83, compared with adjusted earnings per share of $4.12 in the prior year quarter. Fiscal year-to-date cash flow from operations was $1.55 billion, or 13.3% of sales, compared with $1.88 billion, or 18.1% of sales, in the prior year period. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

“We delivered another quarter of outstanding performance, demonstrating our teams’ continued execution at impressive levels despite the persistence of supply chain and global economic challenges,” said Chairman and Chief Executive Officer, Tom Williams. “We reported quarterly sales that eclipsed $4 billion for the first time. Healthy demand combined with ongoing execution of The Win Strategy™ contributed to strong adjusted total segment operating margin at 22.7%, a 130-basis point improvement compared with the prior year period. We also reported record adjusted EBITDA, adjusted net income and adjusted earnings per share in the quarter. These outstanding results reflect the extraordinary efforts of our team members.”

Regarding the war in Ukraine, the events there continue to devastate the lives of many people. Actions were taken in response to the war during the third quarter as Parker immediately suspended all shipments to and from Russia, and subsequently closed its office and warehouse facility in Moscow, Russia. This resulted in a pre-tax charge of approximately $20 million during the quarter. Going forward, this represents an immaterial impact to sales.

Segment Results
Diversified Industrial Segment: North American third quarter sales increased 15% to $2.01 billion and operating income was $414.0 million compared with $336.6 million in the same period a year ago. International third quarter sales increased 4% to $1.44 billion and operating income was $298.5 million compared with $274.4 million in the same period a year ago.

Aerospace Systems Segment: Third quarter sales increased 6% to $632.3 million and operating income was $119.0 million compared with $102.3 million in the same period a year ago.

Parker reported the following orders for the quarter ending March 31, 2022, compared with the same quarter a year ago:
Orders increased 14% for total Parker
Orders increased 23% in the Diversified Industrial North America businesses
Orders increased 9% in the Diversified Industrial International businesses
Orders decreased 4%* in the Aerospace Systems Segment on a rolling 12-month average basis.
*Aerospace orders increased approximately 20% excluding sizable multi-year military orders in the prior period.

Update on Regulatory Clearances Related to the Acquisition of Meggitt PLC
The company continues to make progress on FDI and antitrust regulatory approvals. Completion of the transaction is still expected during the third quarter of calendar year 2022. For copies of all announcements and further information, please visit the dedicated transaction microsite at www.aerospacegrowth.com.

Outlook
For the fiscal year ending June 30, 2022, the company has updated guidance for earnings per share to the range of $13.00 to $13.30, or $18.00 to $18.30 on an adjusted basis. Guidance assumes organic sales growth of approximately 11% compared with the prior year. COVID-19 related shutdowns in China are estimated to reduce sales by $100 million and EPS by $0.24 in the fourth quarter.

Fiscal year 2022 guidance is adjusted on a year-to-date pre-tax basis for acquisition-related expenses of $84 million, a loss of $396 million on deal contingent forward contracts related to the acquisition of Meggitt plc and Russia liquidation expenses of $20 million. Adjustments also include expected business realignment expenses of approximately $20 million, LORD costs to achieve of approximately $5 million and acquisition-related intangible asset amortization of approximately $315 million. A reconciliation of forecasted earnings per share to adjusted forecasted earnings per share is included in the financial tables of this press release.

Williams added, “Despite supply chain, labor and inflationary pressures, we expect to finish the year with a record level of financial performance, giving us a solid foundation to achieve new five-year targets for fiscal year 2027, announced at our Investor meeting in March 2022. We are pleased with the continued progress being made towards meeting all the conditions required to complete the Meggitt acquisition. Through continued execution of our strategy, the ongoing transformation of our portfolio and our strong alignment with the positive secular trends of aerospace, digital, electrification and clean technologies, we see a promising future for Parker.”

NOTICE OF CONFERENCE CALL: Parker Hannifin's conference call and slide presentation to discuss its fiscal 2022 third quarter results are 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 66 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. All exclude acquisitions until they can be reflected in both the numerator and denominator. Aerospace comparisons are rolling 12-month average computations. The total Parker orders number is derived from a weighted average of the year-over-year quarterly % change in orders for Diversified Industrial North America and Diversified Industrial International, and the year-over-year 12-month rolling average of orders for the Aerospace Systems Segment.

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 total segment operating margin; (d) EBITDA margin; (e) adjusted EBITDA margin and (f) organic sales growth. The adjusted net income, earnings per share and total segment operating margin measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and total segment operating margin on a comparable basis from period to period. This press release also contains references to EBITDA, EBITDA margin and adjusted EBITDA margin. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Although EBITDA, EBITDA margin and adjusted EBITDA margin are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior 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.

The risks and uncertainties in connection with such forward-looking statements related to the proposed acquisition of Meggitt include, but are not limited to, the occurrence of any event, change or other circumstances that could delay or prevent the closing of the proposed acquisition, including the failure to satisfy any of the conditions to the proposed acquisition; the possibility that in order for the parties to obtain regulatory approvals, conditions are imposed that prevent or otherwise adversely affect the anticipated benefits from the proposed acquisition or cause the parties to abandon the proposed acquisition; adverse effects on Parker’s common stock because of the failure to complete the proposed acquisition; Parker’s business experiencing disruptions due to acquisition-related uncertainty or other factors making it more difficult to maintain relationships with employees, business partners or governmental entities; the possibility that the expected synergies and value creation from the proposed acquisition will not be realized or will not be realized within the expected time period, due to unsuccessful implementation strategies or otherwise; and significant transaction costs related to the proposed acquisition.

Among other factors which may affect future performance are: the impact of the global outbreak of COVID-19 and governmental and other actions taken in response; 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; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the integration of LORD Corporation or Exotic Metals; 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 business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and changes; compliance costs associated with environmental laws and regulations; potential supply chain and labor disruptions, including as a result of labor shortages; threats associated with international conflicts and efforts to combat terrorism and cyber security risks; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; local and global political and competitive market conditions, including global reactions to U.S. trade policies, and resulting effects on sales and pricing; and 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 (including fluctuations associated with any potential credit rating decline) and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in consumer habits and preferences; government actions, including the impact of changes in the tax laws in the United States and foreign jurisdictions and any judicial or regulatory interpretation thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. 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, 2021 and other periodic filings made with the SEC.

   
Contact:Media -  
 Aidan Gormley - Director, Global Communications and Branding216-896-3258
 aidan.gormley@parker.com  
   
 Financial Analysts - 
 Robin J. Davenport, Vice President, Corporate Finance216-896-2265
 rjdavenport@parker.com  
   
Stock Symbol:PH - NYSE 
   


PARKER HANNIFIN CORPORATION - MARCH 31, 2022
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)Three Months Ended March 31, Nine Months Ended March 31,
(Dollars in thousands, except per share amounts) 2022    2021*    2022    2021*  
Net sales$4,086,387   $3,746,326   $11,673,776   $10,388,771  
Cost of sales 2,927,991    2,712,785    8,406,613    7,617,399  
Selling, general and administrative expenses 412,431    386,831    1,200,906    1,113,254  
Interest expense 63,272    60,830    183,982    189,778  
Other expense (income), net 248,704    (13,460)   386,217    (122,066) 
Income before income taxes 433,989    599,340    1,496,058    1,590,406  
Income taxes 85,901    126,101    308,778    348,514  
Net income 348,088    473,239    1,187,280    1,241,892  
Less: Noncontrolling interests 71    86    506    585  
Net income attributable to common shareholders$348,017   $473,153   $1,186,774   $1,241,307  
        
Earnings per share attributable to common shareholders:       
Basic earnings per share$2.71   $3.67   $9.23   $9.63  
Diluted earnings per share$2.67   $3.60   $9.10   $9.50  
        
Average shares outstanding during period - Basic 128,426,675    129,085,563    128,549,040    128,935,696  
Average shares outstanding during period - Diluted 130,343,581    131,377,933    130,438,593    130,626,600  
        
        
CASH DIVIDENDS PER COMMON SHARE       
(Unaudited)Three Months Ended March 31, Nine Months Ended March 31,
(Amounts in dollars) 2022    2021    2022    2021  
Cash dividends per common share$1.03   $0.88   $3.09   $2.64  
        
        
RECONCILIATION OF ORGANIC GROWTH       
(Unaudited)Three Months Ended March 31, Nine Months Ended March 31,
  2022    2021    2022    2021  
Sales growth - as reported 9.1 %  1.2 %  12.4 %  (1.4)%
Adjustments:       
Currency (2.0)%  2.2 %  (0.8)%  1.4 %
Acquisitions  %   %   %  3.7 %
Organic sales growth 11.1 %  (1.0)%  13.2 %  (6.5)%
        


PARKER HANNIFIN CORPORATION - MARCH 31, 2022
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) 2022    2021*    2022    2021*  
Net income attributable to common shareholders$348,017   $473,153   $1,186,774   $1,241,307  
Adjustments:       
Acquired intangible asset amortization expense 78,865    81,253    237,377    244,193  
Business realignment charges 3,152    5,602    9,811    40,070  
Integration costs to achieve 933    2,655    2,942    10,194  
Acquisition-related expenses 12,724        84,065      
Loss on deal-contingent forward contracts 246,983        396,365      
Gain on sale of land             (100,893) 
Russia liquidation 20,057        20,057      
Tax effect of adjustments1 (80,557)   (20,767)   (168,337)   (43,505) 
Adjusted net income attributable to common shareholders$630,174   $541,896   $1,769,054   $1,391,366  
        
        
        
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) 2022    2021*    2022    2021*  
Earnings per diluted share$2.67   $3.60   $9.10   $9.50  
Adjustments:       
Acquired intangible asset amortization expense 0.61    0.62    1.82    1.87  
Business realignment charges 0.02    0.04    0.07    0.30  
Integration costs to achieve 0.01    0.02    0.03    0.07  
Acquisition-related expenses 0.10        0.65      
Loss on deal-contingent forward contracts 1.89        3.03      
Gain on sale of land             (0.77) 
Russia liquidation 0.15        0.15      
Tax effect of adjustments1 (0.62)   (0.16)   (1.29)   (0.32) 
Adjusted earnings per diluted share$4.83   $4.12   $13.56   $10.65  
        
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
        
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, 2022
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
(Unaudited)Three Months Ended March 31, Nine Months Ended March 31,
(Dollars in thousands) 2022    2021*    2022    2021*  
Net sales$4,086,387   $3,746,326   $11,673,776   $10,388,771  
        
Net income$348,088   $473,239   $1,187,280   $1,241,892  
Income taxes 85,901    126,101    308,778    348,514  
Depreciation 63,832    69,295    194,945    204,615  
Amortization 78,865    81,253    237,377    244,193  
Interest expense 63,272    60,830    183,982    189,778  
EBITDA 639,958    810,718    2,112,362    2,228,992  
Adjustments:       
Business realignment charges 3,152    5,602    9,811    40,070  
Integration costs to achieve 933    2,655    2,942    10,194  
Acquisition-related expenses 12,724        84,065      
Loss on deal-contingent forward contracts 246,983        396,365      
Gain on sale of land             (100,893) 
Russia liquidation 20,057        20,057      
Adjusted EBITDA$923,807   $818,975   $2,625,602   $2,178,363  
        
EBITDA margin 15.7 %  21.6 %  18.1 %  21.5 %
Adjusted EBITDA margin 22.6 %  21.9 %  22.5 %  21.0 %
        
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
        
        
BUSINESS SEGMENT INFORMATION       
(Unaudited)Three Months Ended March 31, Nine Months Ended March 31,
(Dollars in thousands) 2022    2021*    2022    2021*  
Net sales
                   
Diversified Industrial:                   
North America$2,014,715   $1,758,383   $5,615,454   $4,853,371  
International 1,439,357    1,388,999    4,214,972    3,777,875  
Aerospace Systems 632,315    598,944    1,843,350    1,757,525  
Total net sales$4,086,387   $3,746,326   $11,673,776   $10,388,771  
Segment operating income       
Diversified Industrial:       
North America$413,998   $336,589   $1,085,117   $887,041  
International 298,475    274,427    881,206    681,541  
Aerospace Systems 119,016    102,303    352,063    279,798  
Total segment operating income 831,489    713,319    2,318,386    1,848,380  
Corporate general and administrative expenses 57,405    48,089    149,064    123,544  
Income before interest expense and other expense 774,084    665,230    2,169,322    1,724,836  
Interest expense 63,272    60,830    183,982    189,778  
Other expense (income) 276,823    5,060    489,282    (55,348) 
Income before income taxes$433,989   $599,340   $1,496,058   $1,590,406  
        
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
 


PARKER HANNIFIN CORPORATION - MARCH 31, 2022
RECONCILIATION OF TOTAL SEGMENT OPERATING MARGIN TO ADJUSTED TOTAL SEGMENT OPERATING MARGIN
(Unaudited)Three Months Ended Three Months Ended
(Dollars in thousands)March 31, 2022 March 31, 2021
 Operating income   Operating margin   Operating income   Operating margin  
Total segment operating income$831,489   20.3 % $713,319   19.0 %
Adjustments:       
Acquired intangible asset amortization expense 78,865      81,253    
Business realignment charges 3,089      5,445    
Integration costs to achieve 933      2,655    
Russia liquidation 12,827          
Adjusted total segment operating income$927,203   22.7 % $802,672   21.4 %
        
 Nine Months Ended Nine Months Ended
 March 31, 2022 March 31, 2021
 Operating income   Operating margin   Operating income   Operating margin  
Total segment operating income$2,318,386   19.9 % $1,848,380   17.8 %
Adjustments:       
Acquired intangible asset amortization expense 237,377      244,193    
Business realignment charges 9,748      37,890    
Integration costs to achieve 2,942      10,194    
Russia liquidation 12,827          
Adjusted total segment operating income$2,581,280   22.1 % $2,140,657   20.6 %
        


PARKER HANNIFIN CORPORATION - MARCH 31, 2022
CONSOLIDATED BALANCE SHEET  
(Unaudited) March 31,    June 30,    March 31,  
(Dollars in thousands) 2022    2021    2021*  
Assets              
Current assets:              
Cash and cash equivalents$467,711   $733,117   $489,600  
Marketable securities and other investments 38,561    39,116    40,270  
Trade accounts receivable, net 2,357,244    2,183,594    2,118,437  
Non-trade and notes receivable 327,186    326,315    309,568  
Inventories 2,330,242    2,090,642    2,048,971  
Prepaid expenses and other 2,708,750    243,966    193,019  
Total current assets 8,229,694    5,616,750    5,199,865  
Property, plant and equipment, net 2,174,237    2,266,476    2,249,122  
Deferred income taxes 144,506    104,251    125,382  
Investments and other assets 787,986    774,239    791,221  
Intangible assets, net 3,254,062    3,519,797    3,595,182  
Goodwill 7,954,835    8,059,687    8,031,586  
Total assets$22,545,320   $20,341,200   $19,992,358  
      
Liabilities and equity     
Current liabilities:     
Notes payable and long-term debt payable within one year$1,923,860   $2,824   $186,388  
Accounts payable, trade 1,732,421    1,667,878    1,551,460  
Accrued payrolls and other compensation 418,876    507,027    430,008  
Accrued domestic and foreign taxes 276,159    236,384    204,241  
Other accrued liabilities 1,055,348    682,390    664,550  
Total current liabilities 5,406,664    3,096,503    3,036,647  
Long-term debt 6,229,654    6,582,053    6,571,908  
Pensions and other postretirement benefits 904,332    1,055,638    1,777,137  
Deferred income taxes 448,583    553,981    452,849  
Other liabilities 583,228    639,355    631,702  
Shareholders' equity 8,959,866    8,398,307    7,506,388  
Noncontrolling interests 12,993    15,363    15,727  
Total liabilities and equity$22,545,320   $20,341,200   $19,992,358  
      
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
 


PARKER HANNIFIN CORPORATION - MARCH 31, 2022
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)Nine Months Ended March 31,
(Dollars in thousands) 2022    2021*  
Cash flows from operating activities:         
Net income$1,187,280   $1,241,892  
Depreciation and amortization 432,322    448,808  
Share incentive plan compensation 109,781    101,907  
Gain on sale of business (1,472)     
Gain on disposal of property, plant and equipment (6,782)   (108,449) 
Loss (gain) on marketable securities 2,280    (8,489) 
Gain on investments (2,024)   (6,008) 
Net change in receivables, inventories and trade payables (347,086)   125,916  
Net change in other assets and liabilities 308,993    94,742  
Other, net (134,854)   (8,914) 
Net cash provided by operating activities 1,548,438    1,881,405  
Cash flows from investing activities:   
Capital expenditures (158,864)   (136,064) 
Proceeds from sale of property, plant and equipment 29,320    132,740  
Proceeds from sale of businesses 3,366      
Purchases of marketable securities and other investments (20,012)   (30,608) 
Maturities and sales of marketable securities and other investments 17,662    71,225  
Other 2,766    14,120  
Net cash (used in) provided by investing activities (125,762)   51,413  
Cash flows from financing activities:   
Net payments for common stock activity (372,430)   (125,519) 
Net proceeds from (payments for) debt 1,622,442    (1,748,818) 
Financing fees paid (52,655)     
Dividends paid (398,099)   (341,333) 
Net cash provided by (used in) financing activities 799,258    (2,215,670) 
Effect of exchange rate changes on cash 106    86,938  
Net increase (decrease) in cash, cash equivalents and restricted cash 2,222,040    (195,914) 
Cash, cash equivalents and restricted cash at beginning of year 733,117    685,514  
Cash, cash equivalents and restricted cash at end of period$2,955,157   $489,600  
    
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K.
 


PARKER HANNIFIN CORPORATION - MARCH 31, 2022
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
  
(Unaudited) 
(Amounts in dollars)Fiscal Year 2022
Forecasted earnings per diluted share$13.00 to $13.30
Adjustments: 
Business realignment charges0.15
Costs to achieve0.04
Acquisition-related intangible asset amortization expense2.43
Acquisition-related expenses0.64
Loss on deal-contingent forward contracts3.04
Russia Liquidation0.15
Tax effect of adjustments1(1.45)
Adjusted forecasted earnings per diluted share$18.00 to $18.30
  
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.