PH Parker Hannifin Corp

Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended December 31, 2024, that included the following highlights (compared with the prior year quarter):

Fiscal 2025 Second Quarter Highlights:

• Sales were $4.7 billion; organic sales growth was 1%
• Net income was $949 million, an increase of 39%, or $853 million adjusted, an increase of 6%
• EPS were $7.25, an increase of 39%, or $6.53 adjusted, an increase of 6%
• Segment operating margin was 22.1%, an increase of 100 bps, or 25.6% adjusted, an increase of 110 bps
• YTD cash flow from operations increased 24% to $1.7 billion, or 17.4% of sales

“Our performance this quarter reflects our focus on operational excellence and the strength of our balanced portfolio,” said Jenny Parmentier, Chairman and Chief Executive Officer. “We delivered record segment operating margin across all businesses, record earnings per share and year-to-date cash flow from operations. Strong cash flow from operations coupled with proceeds from previously announced divestitures allowed us to substantially reduce debt by $1.1 billion this quarter. We are encouraged to see industrial orders turn positive mainly in our longer-cycle businesses. Looking ahead, we have updated our outlook for fiscal year 2025 to reflect stronger Aerospace growth, currency headwinds and a continued delay in the expected industrial recovery. Our strong cash generation creates capital deployment optionality, and we remain committed to our strategy of actively deploying capital to drive shareholder value.”

This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.

Outlook

Guidance for the fiscal year ending June 30, 2025 has been updated. The company expects:

• Sales growth in fiscal 2025 of (2%) to 1%, with organic sales growth of approximately 2%; divestitures of (1.5%) and unfavorable currency of (1.0%)
• Total segment operating margin of approximately 22.7%, or approximately 25.8% on an adjusted basis
• EPS of $24.46 to $25.06, or $26.40 to $27.00 on an adjusted basis

Segment Results

Diversified Industrial Segment

North America Businesses
$ in mm	FY25 Q2				FY24 Q2				Change				Organic Growth
Sales	$	1,928			$	2,110				-8.6	%			-5.0	%
Segment Operating Income	$	427			$	462				-7.6	%
Segment Operating Margin		22.1	%			21.9	%		20 bps
Adjusted Segment Operating Income	$	473			$	510				-7.2	%
Adjusted Segment Operating Margin		24.6	%			24.2	%		40 bps

• Achieved record adjusted segment operating margin
• Continued softness in transportation and off-highway markets
• Delayed industrial recovery

International Businesses
$ in mm	FY25 Q2				FY24 Q2				Change				Organic Growth
Sales	$	1,325			$	1,404				-5.7	%			-3.0	%
Segment Operating Income	$	284			$	290				-2.2	%
Segment Operating Margin		21.4	%			20.7	%		70 bps
Adjusted Segment Operating Income	$	320			$	323				-1.2	%
Adjusted Segment Operating Margin		24.1	%			23.0	%		110 bps

• Achieved record adjusted segment operating margin
• Broad-based softness continued in Europe
• Gradual recovery continued in Asia

Aerospace Systems Segment

$ in mm	FY25 Q2				FY24 Q2				Change				Organic Growth
Sales	$	1,490			$	1,306				14.0	%			14.0	%
Segment Operating Income	$	338			$	263				28.5	%
Segment Operating Margin		22.7	%			20.1	%		260 bps
Adjusted Segment Operating Income	$	420			$	347				21.2	%
Adjusted Segment Operating Margin		28.2	%			26.5	%		170 bps

• Achieved record sales and adjusted segment operating margin
• Achieved 14% organic sales growth
• 20%+ aftermarket and mid-single digit OEM sales growth

Order Rates

	FY25 Q2
Parker	+5	%
Diversified Industrial Segment - North America Businesses	+3	%
Diversified Industrial Segment - International Businesses	+4	%
Aerospace Systems Segment	+9	%

• Company order rates increased across all reported businesses
• North America orders turned positive on long-cycle strength
• International order growth continued, led by Asia
• Aerospace orders accelerated against a tough prior year comparison

About Parker HannifinParker 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. Learn more at www.parker.com or @parkerhannifin.

Contacts:
Media:	Financial Analysts:
Aidan Gormley	Jeff Miller
216-896-3258	216-896-2708
aidan.gormley@parker.com	jeffrey.miller@parker.com

Notice of Webcast Parker Hannifin's conference call and slide presentation to discuss its fiscal 2025 second quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.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 investors.parker.com.

Note on Orders The company reported orders for the quarter ending December 31, 2024, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, 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 Non-GAAP Financial MeasuresThis press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted operating margin and segment operating margins; (d) adjusted operating income and segment operating income and (e) organic sales growth. The adjusted net income, adjusted earnings per share, adjusted operating margin, adjusted segment operating margin, adjusted operating income, adjusted 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. Although adjusted net income, adjusted earnings per share, adjusted operating margin and segment operating margins, adjusted operating income and segment operating income, and organic sales growth 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 StatementsForward-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 may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.

Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; 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 other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider 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, 2024 and other periodic filings made with the SEC.

CONSOLIDATED STATEMENT OF INCOME
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands, except per share amounts)		2024				2023				2024				2023
Net sales	$	4,742,593			$	4,820,947			$	9,646,577			$	9,668,435
Cost of sales		3,022,229				3,101,962				6,119,948				6,199,311
Selling, general and administrative expenses		782,421				806,802				1,631,210				1,680,493
Interest expense		100,802				129,029				213,893				263,497
Other income, net		(328,716	)			(85,011	)			(359,517	)			(163,466	)
Income before income taxes		1,165,857				868,165				2,041,043				1,688,600
Income taxes		217,208				186,108				393,866				355,471
Net income		948,649				682,057				1,647,177				1,333,129
Less: Noncontrolling interests		107				206				215				451
Net income attributable to common shareholders	$	948,542			$	681,851			$	1,646,962			$	1,332,678
Earnings per share attributable to common shareholders:
Basic earnings per share	$	7.37			$	5.31			$	12.80			$	10.38
Diluted earnings per share	$	7.25			$	5.23			$	12.60			$	10.23
Average shares outstanding during period - Basic		128,752,836				128,426,247				128,707,962				128,449,398
Average shares outstanding during period - Diluted		130,758,808				130,367,351				130,716,482				130,314,326
CASH DIVIDENDS PER COMMON SHARE
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Amounts in dollars)		2024				2023				2024				2023
Cash dividends per common share	$	1.63			$	1.48			$	3.26			$	2.96

RECONCILIATION OF ORGANIC GROWTH
(Unaudited)	Three Months Ended
	As Reported												Adjusted
	December 31, 2024				Currency				Divestitures				December 31, 2024
Diversified Industrial Segment		(7.4	)%			(1.3	)%			(1.9	)%			(4.2	)%
Aerospace Systems Segment		14.0	%			—	%			—	%			14.0	%
Total		(1.6	)%			(0.9	)%			(1.4	)%			0.7	%
(Unaudited)	Six Months Ended
	As Reported												Adjusted
	December 31, 2024				Currency				Divestitures				December 31, 2024
Diversified Industrial Segment		(5.9	)%			(0.8	)%			(1.0	)%			(4.1	)%
Aerospace Systems Segment		15.9	%			0.3	%			—	%			15.6	%
Total		(0.2	)%			(0.5	)%			(0.8	)%			1.1	%

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Net income attributable to common shareholders	$	948,542			$	681,851			$	1,646,962			$	1,332,678
Adjustments:
Acquired intangible asset amortization expense		138,126				142,027				278,247				297,547
Business realignment charges		20,855				14,354				30,361				27,446
Integration costs to achieve		6,893				10,014				13,304				16,420
Gain on sale of building		—				—				(10,461	)			—
Gain on divestitures		(249,748	)			(12,391	)			(249,748	)			(25,651	)
Tax effect of adjustments1		(11,437	)			(33,476	)			(45,648	)			(69,624	)
Adjusted net income attributable to common shareholders	$	853,231			$	802,379			$	1,663,017			$	1,578,816

RECONCILIATION OF EARNINGS PER DILUTED SHARE TO ADJUSTED EARNINGS PER DILUTED SHARE
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Amounts in dollars)		2024				2023				2024				2023
Earnings per diluted share	$	7.25			$	5.23			$	12.60			$	10.23
Adjustments:
Acquired intangible asset amortization expense		1.06				1.09				2.13				2.28
Business realignment charges		0.16				0.11				0.23				0.21
Integration costs to achieve		0.05				0.08				0.10				0.13
Gain on sale of building		—				—				(0.08	)			—
Gain on divestitures		(1.91	)			(0.10	)			(1.91	)			(0.20	)
Tax effect of adjustments1		(0.08	)			(0.26	)			(0.33	)			(0.53	)
Adjusted earnings per diluted share	$	6.53			$	6.15			$	12.74			$	12.12
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.

BUSINESS SEGMENT INFORMATION
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Net sales
Diversified Industrial	$	3,252,806			$	3,514,473			$	6,708,964			$	7,133,001
Aerospace Systems		1,489,787				1,306,474				2,937,613				2,535,434
Total net sales	$	4,742,593			$	4,820,947			$	9,646,577			$	9,668,435
Segment operating income
Diversified Industrial	$	710,562			$	752,334			$	1,494,108			$	1,559,088
Aerospace Systems		338,184				263,112				661,170				489,372
Total segment operating income		1,048,746				1,015,446				2,155,278				2,048,460
Corporate general and administrative expenses		56,264				49,902				105,058				105,558
Income before interest expense and other income, net		992,482				965,544				2,050,220				1,942,902
Interest expense		100,802				129,029				213,893				263,497
Other income, net		(274,177	)			(31,650	)			(204,716	)			(9,195	)
Income before income taxes	$	1,165,857			$	868,165			$	2,041,043			$	1,688,600

RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Diversified Industrial Segment sales	$	3,252,806			$	3,514,473			$	6,708,964			$	7,133,001
Diversified Industrial Segment operating income	$	710,562			$	752,334			$	1,494,108			$	1,559,088
Adjustments:
Acquired intangible asset amortization		62,570				67,309				127,834				135,260
Business realignment charges		19,343				13,285				28,243				25,924
Integration costs to achieve		627				871				1,405				2,010
Adjusted Diversified Industrial Segment operating income	$	793,102			$	833,799			$	1,651,590			$	1,722,282
Diversified Industrial Segment operating margin		21.8	%			21.4	%			22.3	%			21.9	%
Adjusted Diversified Industrial Segment operating margin		24.4	%			23.7	%			24.6	%			24.1	%
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Aerospace Systems Segment sales	$	1,489,787			$	1,306,474			$	2,937,613			$	2,535,434
Aerospace Systems Segment operating income	$	338,184			$	263,112			$	661,170			$	489,372
Adjustments:
Acquired intangible asset amortization		75,556				74,718				150,413				162,287
Business realignment charges		386				(123	)			394				330
Integration costs to achieve		6,266				9,143				11,899				14,410
Adjusted Aerospace Systems Segment operating income	$	420,392			$	346,850			$	823,876			$	666,399
Aerospace Systems Segment operating margin		22.7	%			20.1	%			22.5	%			19.3	%
Adjusted Aerospace Systems Segment operating margin		28.2	%			26.5	%			28.0	%			26.3	%
RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Total net sales	$	4,742,593			$	4,820,947			$	9,646,577			$	9,668,435
Total segment operating income	$	1,048,746			$	1,015,446			$	2,155,278			$	2,048,460
Adjustments:
Acquired intangible asset amortization		138,126				142,027				278,247				297,547
Business realignment charges		19,729				13,162				28,637				26,254
Integration costs to achieve		6,893				10,014				13,304				16,420
Adjusted total segment operating income	$	1,213,494			$	1,180,649			$	2,475,466			$	2,388,681
Total segment operating margin		22.1	%			21.1	%			22.3	%			21.2	%
Adjusted total segment operating margin		25.6	%			24.5	%			25.7	%			24.7	%

CONSOLIDATED BALANCE SHEET
(Unaudited)	December 31,				June 30,
(Dollars in thousands)		2024				2024
Assets
Current assets:
Cash and cash equivalents	$	395,507			$	422,027
Trade accounts receivable, net		2,445,845				2,865,546
Non-trade and notes receivable		304,829				331,429
Inventories		2,806,983				2,786,800
Prepaid expenses		246,467				252,618
Other current assets		148,831				140,204
Total current assets		6,348,462				6,798,624
Property, plant and equipment, net		2,800,992				2,875,668
Deferred income taxes		87,400				92,704
Investments and other assets		1,232,636				1,207,232
Intangible assets, net		7,444,670				7,816,181
Goodwill		10,357,303				10,507,433
Total assets	$	28,271,463			$	29,297,842
Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year	$	2,373,286			$	3,403,065
Accounts payable, trade		1,794,884				1,991,639
Accrued payrolls and other compensation		420,477				581,251
Accrued domestic and foreign taxes		364,143				354,659
Other accrued liabilities		1,034,501				982,695
Total current liabilities		5,987,291				7,313,309
Long-term debt		6,667,955				7,157,034
Pensions and other postretirement benefits		409,873				437,490
Deferred income taxes		1,394,882				1,583,923
Other liabilities		684,401				725,193
Shareholders' equity		13,118,553				12,071,972
Noncontrolling interests		8,508				8,921
Total liabilities and equity	$	28,271,463			$	29,297,842

CONSOLIDATED STATEMENT OF CASH FLOWS
	Six Months Ended
(Unaudited)	December 31,
(Dollars in thousands)		2024				2023
Cash flows from operating activities:
Net income	$	1,647,177			$	1,333,129
Depreciation and amortization		454,869				468,165
Stock incentive plan compensation		106,472				108,061
Gain on sale of businesses		(250,373	)			(25,964	)
(Gain) loss on property, plant and equipment and intangible assets		(6,975	)			5,097
Net change in receivables, inventories and trade payables		70,981				(42,804	)
Net change in other assets and liabilities		(405,002	)			(407,366	)
Other, net		61,584				(86,331	)
Net cash provided by operating activities		1,678,733				1,351,987
Cash flows from investing activities:
Capital expenditures		(216,493	)			(204,117	)
Proceeds from sale of property, plant and equipment		13,259				1,360
Proceeds from sale of businesses		622,182				74,595
Other, net		(6,941	)			(2,954	)
Net cash provided by (used in) investing activities		412,007				(131,116	)
Cash flows from financing activities:
Net payments for common stock activity		(189,681	)			(136,394	)
Acquisition of noncontrolling interests		—				(2,883	)
Net payments for debt		(1,494,484	)			(784,847	)
Dividends paid		(420,061	)			(381,115	)
Net cash used in financing activities		(2,104,226	)			(1,305,239	)
Effect of exchange rate changes on cash		(13,034	)			(7,999	)
Net decrease in cash and cash equivalents		(26,520	)			(92,367	)
Cash and cash equivalents at beginning of year		422,027				475,182
Cash and cash equivalents at end of period	$	395,507			$	382,815

RECONCILIATION OF FORECASTED ORGANIC GROWTH
(Unaudited)
(Amounts in percentages)	Fiscal Year 2025
Forecasted net sales	(2%) to 1%
Adjustments:
Currency	1.0%
Divestitures	1.5%
Adjusted forecasted net sales	0.5% to 3.5%
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN
(Unaudited)
(Amounts in percentages)	Fiscal Year 2025
Forecasted segment operating margin	~ 22.7%
Adjustments:
Business realignment charges	0.2%
Costs to achieve	0.1%
Acquisition-related intangible asset amortization expense	2.8%
Adjusted forecasted segment operating margin	~ 25.8%

RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in dollars)	Fiscal Year 2025
Forecasted earnings per diluted share	$24.46 to $25.06
Adjustments:
Business realignment charges	0.39
Costs to achieve	0.15
Acquisition-related intangible asset amortization expense	4.22
Net gain on divestitures	(1.91)
Gain on sale of building	(0.08)
Tax effect of adjustments1	(0.83)
Adjusted forecasted earnings per diluted share	$26.40 to $27.00
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.
Note: Totals may not foot due to rounding

SUPPLEMENTAL INFORMATION
BUSINESS SEGMENT INFORMATION
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Net sales
Diversified Industrial:
North America businesses	$	1,928,008			$	2,110,203			$	4,028,332			$	4,340,109
International businesses		1,324,798				1,404,270				2,680,632				2,792,892
Segment operating income
Diversified Industrial:
North America businesses	$	426,567			$	461,850			$	911,130			$	967,903
International businesses		283,995				290,484				582,978				591,185

RECONCILIATION OF ORGANIC GROWTH
(Unaudited)	Three Months Ended
	As Reported												Adjusted
	December 31, 2024					Currency			Divestitures				December 31, 2024
Diversified Industrial Segment:
North America businesses		(8.6	)%			(0.4	)%			(3.2	)%			(5.0	)%
International businesses		(5.7	)%			(2.7	)%			—	%			(3.0	)%
(Unaudited)	Six Months Ended
		As Reported												Adjusted
		December 31, 2024				Currency			Divestitures					December 31, 2024
Diversified Industrial Segment:
North America businesses		(7.2	)%			(0.5	)%			(1.7	)%			(5.0	)%
International businesses		(4.0	)%			(1.3	)%			—	%			(2.7	)%

RECONCILIATION OF SEGMENT OPERATING MARGINS TO ADJUSTED SEGMENT OPERATING MARGINS
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Diversified Industrial Segment:
North America businesses sales	$	1,928,008			$	2,110,203			$	4,028,332			$	4,340,109
North America businesses operating income	$	426,567			$	461,850			$	911,130			$	967,903
Adjustments:
Acquired intangible asset amortization		40,985				44,699				83,960				89,382
Business realignment charges		5,444				3,250				8,888				5,834
Integration costs to achieve		445				562				1,050				1,507
Adjusted North America businesses operating income	$	473,441			$	510,361			$	1,005,028			$	1,064,626
North America businesses operating margin		22.1	%			21.9	%			22.6	%			22.3	%
Adjusted North America businesses operating margin		24.6	%			24.2	%			24.9	%			24.5	%
	Three Months Ended								Six Months Ended
(Unaudited)	December 31,								December 31,
(Dollars in thousands)		2024				2023				2024				2023
Diversified Industrial Segment:
International businesses sales	$	1,324,798			$	1,404,270			$	2,680,632			$	2,792,892
International businesses operating income	$	283,995			$	290,484			$	582,978			$	591,185
Adjustments:
Acquired intangible asset amortization		21,585				22,610				43,874				45,878
Business realignment charges		13,899				10,035				19,355				20,090
Integration costs to achieve		182				309				355				503
Adjusted International businesses operating income	$	319,661			$	323,438			$	646,562			$	657,656
International businesses operating margin		21.4	%			20.7	%			21.7	%			21.2	%
Adjusted International businesses operating margin		24.1	%			23.0	%			24.1	%			23.5	%