Company: NPO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001164863-25-000017
Chunk: 28

Company: Enpro Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 28
---
 21.2$1.15 $12.5 21.1$0.59 Income tax expense7.8 1.8 Income before income taxes32.3 14.3 Adjustments from selling, general, and administrative:Acquisition expenses0.2 3.3 Amortization of acquisition-related intangible assets19.1 18.6 Adjustments from other operating expense and cost of sales:Restructuring expense0.6 0.8 Amortization of the fair value adjustment to acquisition date inventory— 1.7 Adjustments from other non-operating expense:Environmental reserve adjustment— 0.2 Costs associated with previously disposed businesses0.3 0.3 Pension expense - non-service cost0.8 — Foreign exchange losses related to the divestiture of a discontinued operation10.4 0.5 Long-term promissory note reserve2— 4.5 Adjusted income before income taxes53.7 44.2 Adjusted income tax expense(13.4)(11.1)Adjusted net income $40.3 21.2$1.90 3$33.1 21.1$1.57 3

1 In connection with the sale of GGB, accounted for as a discontinued operation, in the fourth quarter of 2022, we issued an intercompany note between  a domestic and foreign entity that is denominated in a foreign currency. As a result of this note, we have recorded losses due to the changes in the foreign exchange rate. This intercompany note was settled in March 2025.

2We received a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024 we concluded a reserve was needed for expected future credit losses. We will continue to monitor the note regularly and make adjustments to the reserve as needed based on known facts and circumstances. 

3 Adjusted diluted earnings per share.

The adjusted income tax expense presented above is calculated using a normalized company-wide effective tax rate excluding discrete items of 25.0%.

32

Reconciliation of Net Income to Adjusted EBITDA 

Three Months EndedMarch 31,(in millions)20252024Net income24.5 12.5 Adjustments to arrive at earnings before interest, income taxes, depreciation, amortization, and other selected items (