**Adjusted EBITDA for the fourth quarter and full year of 2018 has been recast to reflect the add-back of stock-based compensation expense.
Reconciliation of GAAP operating margin to adjusted operating margin*:
|
2019 |
2018 |
||||||||
Operating margin |
Q4 |
Q3 |
YTD |
Q4 |
YTD |
|||||
GAAP operating margin |
7.5 |
% |
13.5 |
% |
12.3 |
% |
12.0 |
% |
12.8 |
% |
|
|
|
|
|
|
|||||
Acquisition and related integration costs |
0.3 |
% |
0.2 |
% |
0.2 |
% |
0.2 |
% |
0.3 |
% |
Change in foreign jurisdiction tax regulation on equity awards attributable to a prior period |
— |
% |
— |
% |
0.1 |
% |
— |
% |
— |
% |
Asbestos-related charges |
0.9 |
% |
— |
% |
0.2 |
% |
0.3 |
% |
0.1 |
% |
Environmental accrual adjustment |
0.4 |
% |
— |
% |
0.1 |
% |
— |
% |
— |
% |
Gain from indemnity claim and antitrust litigation settlements |
(0.4 |
)% |
— |
% |
(0.1 |
)% |
(0.6 |
)% |
(0.6 |
)% |
Loss (gain) on sale or disposal of property, plant and equipment |
0.2 |
% |
— |
% |
— |
% |
— |
% |
(0.1 |
)% |
| Restructuring, severance, impairment and other related costs |
0.4 |
% |
0.6 |
% |
0.9 |
% |
1.2 |
% |
1.0 |
% |
| Transition services, net |
0.1 |
% |
— |
% |
0.1 |
% |
0.9 |
% |
0.3 |
% |
| Total discrete items |
1.8 |
% |
0.8 |
% |
1.5 |
% |
2.0 |
% |
1.0 |
% |
| Operating margin adjusted for discrete items |
9.4 |
% |
14.3 |
% |
13.8 |
% |
14.0 |
% |
13.8 |
% |
|
|
|
|
|
|
|
|||||
| Acquisition intangible amortization |
2.3 |
% |
2.0 |
% |
2.0 |
% |
2.0 |
% |
1.9 |
% |
|
|
|
|
|
|
|
|||||
| Adjusted operating margin |
11.6 |
% |
16.3 |
% |
15.7 |
% |
16.0 |
% |
15.8 |
% |
