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Fourth Quarter 2025 Earnings Call February 3, 2026
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2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "should," "estimate," "will," "plans," "intends," "forecast," and similar expressions, and reflect our expectations concerning the future. Such statements are made based on known events and circumstances at the time of publication and, as such, are subject in the future to unforeseen risks and uncertainties. It is possible that our future performance may differ materially from current expectations expressed in these forward- looking statements, due to a variety of factors such as: increasing price and product/service competition by foreign and domestic competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; our mix of products/services; increases in raw material costs that cannot be recovered in product pricing; domestic and foreign governmental and public policy changes including environmental and industry regulations; the ability of our customers to maintain appropriate labor levels under U.S. immigration laws, policies and practices; the ability to meet our goals relating to our intended reduction of greenhouse gas emissions, including our net zero commitments; threats associated with and efforts to combat terrorism; protection and validity of patent and other intellectual property rights; the identification of strategic acquisition targets and our successful completion of any transaction and integration of our strategic acquisitions; our successful completion of strategic dispositions; the cyclical nature of our businesses; the impact of information technology, cybersecurity, artificial intelligence or data security breaches at our businesses or third parties; the outcome of pending and future litigation and governmental proceedings; and the other factors discussed in the reports we file with or furnish to the Securities and Exchange Commission from time to time. In addition, such statements could be affected by general industry and market conditions and growth rates, the condition of the financial and credit markets and general domestic and international economic conditions, including inflation, interest rate and currency exchange rate fluctuations, and tariffs. Further, any conflict in the international arena, including the Russian invasion of Ukraine and war in the Middle East, may adversely affect general market conditions and our future performance. Any forward-looking statement speaks only as of the date on which that statement is made, and we undertake no duty to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which that statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of those factors, nor can it assess the impact of each of those factors on the business. The slides contained in this presentation refer to certain non-GAAP financial measures. The Company believes that providing these non-GAAP financial measures enhances the Company’s and investors’ understanding of the Company’s and its segments’ financial performance. Non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Please refer to the appendix for the Company’s definitions of its non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, and reconciliations of historical non-GAAP financial measures to the most comparable GAAP financial measures. The Company is not providing reconciliations for forward-looking non-GAAP financial measures because the Company does not provide GAAP financial measures on a forward-looking basis as the Company is unable to predict with reasonable certainty the ultimate outcome of adjusted items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to the Company’s financial results computed in accordance with GAAP. Forward Looking Statements & Non-GAAP Financial Measures
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3 • Achieved return on invested capital of 24.2% • Generated strong operating cash flow of $1.1 billion and free cash flow of $972 million • Returned $1.5 billion to shareholders through dividends and share buybacks • Advanced Vision 2030 priorities: ◦ Strengthened leadership team ◦ Increased investments in innovation ◦ Enhanced the Carlisle Experience ◦ Drove operational excellence with COS $19.40 Adj. EPS* 24.4% Adj. EBITDA Margin* $5.0B Revenues * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. Full Year 2025 Overview Executing on strategic priorities in challenging conditions
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4 • Generated revenue of $1.1 billion and adjusted EPS of $3.90 • Returned $346 million to shareholders through dividends and share repurchases in Q4 • Advanced strategic initiatives to strengthen the foundation for margin enhancement in 2026 • Confident in our Vision 2030 strategy and long-term objective of delivering $40 of adjusted EPS $3.90 Adj. EPS* 22.1% Adj. EBITDA Margin* $1.1B Revenues * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. Fourth Quarter 2025 Overview Navigating market challenges with operational excellence
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5 Strong Positioning in an Attractive Market Carlisle's business model is at the forefront of secular mega trends AVERAGE AGE OF EXISTING ROOFS DRIVE FOR ENERGY EFFICIENCY NEED FOR LABOR-SAVING SOLUTIONS SHIFT TO INTEGRATED BUILDING ENVELOPE STRATEGIC POSITION • Leading commercial market share • Investment in innovation driving new, more efficient products and solutions • Total building envelope offering allows for cross-selling opportunities • Focused on driving price for value Clear Path to Achieve Vision 2030 Goals
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6 Vision 2030 Key Pillars Driving above market growth to unlock additional shareholder value Carlisle Operating System • Drive operational excellence The Carlisle Experience • Win with customers through exceptional service Innovation • Advance energy-efficient and labor savings systems & solutions Strategic M&A • Enhance our building envelope portfolio Exceptional Talent & Leadership • Attract, retain and develop top talent
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7 25%+ ADJ. EBITDA MARGIN Resilient Performance $40+ 5%+ ORGANIC REVENUE CAGR Above Market Growth ADJ. EPS Mid Teen CAGR 25%+ ROIC Maintain Superior Returns 15%+ FCF MARGIN Cash Generation Engine Vision 2030 Financial Targets Best-in-Class Financial Performance
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8 Revenue +0.4% (-3% Organic*) Adj. EBITDA Margin* -300 bps Adj. EPS* -13% • M&A contributions • Solid commercial re-roofing • Lower volumes due to headwinds in new construction • Volume deleverage • Investments in innovation • Enhancements to the Carlisle Experience • Lower organic earnings • Higher net interest expense • Share repurchases • Accretive acquisitions Fourth Quarter 2025 Results M&A contributions and solid commercial re-roofing demand offset new construction weakness $1,123M $1,128M 4Q24 4Q25 25.1% 22.1% 4Q24 4Q25 $4.47 $3.90 4Q24 4Q25 * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures.
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9 $834M $827M 4Q24 4Q25 29.4% 26.8% 4Q24 4Q25 $245M $222M 4Q24 4Q25 Carlisle Construction Materials (CCM) Segment Results Solid re-roofing demand limited macroeconomic pressures on new construction Notable Revenue Drivers: • Solid recurring re-roof activity partly offsetting new construction headwinds Adjusted EBITDA Margin Change: • Continued investments in innovation and Carlisle Experience enhancements Revenue -0.8% (-1% Organic*) Adj. EBITDA* -10% Adj. EBITDA Margin* -260 bps * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures.
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10 Notable Revenue Drivers: • Plasti-Fab, ThermaFoam, and Bonded Logic acquisitions • Lower volumes due to continued softness in residential and non-residential new construction Adjusted EBITDA Margin Change: • Deleverage on lower volume Carlisle Weatherproofing Technologies (CWT) Segment Results Well-positioned to capitalize on the growing need for energy-efficient weatherproofing solutions Revenue +4% (-7% Organic*) Adj. EBITDA* -10% Adj. EBITDA Margin* -240 bps $289M $301M 4Q24 4Q25 $53M $48M 4Q24 4Q25 18.3% 15.9% 4Q24 4Q25 * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures.
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11 * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. $3.90 $4.47 $(0.62) $0.03 $0.32 $(0.30) 4Q24 Adj. EPS* Organic Acquisitions Share RepurchasesNet Interest/Tax 4Q25 Adj. EPS* Fourth Quarter 2025 Adjusted EPS* Bridge Share repurchases and M&A partially offset organic earnings decline and higher net interest
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12 * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. $19.40$20.20 $(2.15) $0.30 $1.61 $(0.56) FY24 Adj. EPS* Organic Acquisitions Share RepurchasesNet Interest/Tax FY25 Adj. EPS* Full Year 2025 Adjusted EPS* Bridge Share repurchases and M&A partially offset organic earnings decline and higher net interest
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13 Net Debt to EBITDA* Ratio 1.4x Within 1.0x-2.0x target Debt Profile Total Liquidity $2.1B Including cash of $1.1B and $1.0B available under revolver as of 12/31/2025 Debt Maturity Schedule 2027 2030 2032 2035 2040 Senior Note $600M 3.75% Senior Note $750M 2.75% Senior Note $550M 2.20% 3.8% Weighted Average Interest Rate 16.0x EBITDA to Interest Ratio* 6.9 Years Weighted Average Maturity * Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures. Fourth Quarter 2025 Liquidity Strong balance sheet supporting strategic priorities and disciplined capital deployment strategy Senior Note $500.0 5.25% Senior Note $500.0 5.55%
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14 Fourth Quarter and Full Year 2025 Cash Flow Performance Generated record free cash flow from continuing operations in 2025 $378M $392M $1,039M $1,104M $341M $352M $938M $972M $37M $40M $101M $131M Operating Cash Flow*Capital Expenditures*Free Cash Flow* 4Q24 4Q25 YTD24 YTD25 * Continuing Operations; Reference the financial reconciliations of non-GAAP financial measures to the related GAAP financial measures.
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15 • CCM revenue up LSD YoY as recurring re-roofing demand offsets slower new construction activity • CWT revenue up LSD YoY as share gain initiatives offset end market softness • Additional Items: • Corporate & Unallocated Expense: ~$110M • Capital Expenditures: ~$200M • Depreciation and Amortization: ~$200M • Net Interest Expense: ~$90M • Base Tax Rate: 23-24% Full Year 2026 Outlook Focused on executing our Vision 2030 strategy to grow revenues and expand margins Primary Drivers 25%+ ROIC +LSD Revenue Growth +50 bps Adj. EBITDA Margin Expansion 15%+ FCF Margin
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17 Non-GAAP Financial Measures The Company uses the following definitions of financial measures that are not presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”): 1. Organic revenue: Revenues excluding revenue from acquisitions completed in the last 12 months and the impact of changes in foreign exchange rates versus the U.S. Dollar 2. Free cash flow: Net cash provided by operating activities less capital expenditures 3. Free cash flow margin: Free cash flow from continuing operations divided by total revenues 4. EBIT: Net income excluding income/loss from discontinued operations, interest expense, interest income, and provision for income taxes 5. Adjusted EBIT: EBIT excluding gains/losses and costs from acquisitions, dispositions, restructuring, impairment, casualty losses and insurance recoveries, legal settlements, pension settlements, and debt extinguishment 6. Adjusted EBITDA: Adjusted EBIT excluding depreciation and amortization 7. Adjusted EBITDA margin: Adjusted EBITDA divided by total revenues 8. Adjusted net income: Net income excluding income/loss from discontinued operations; gains/losses and costs from acquisitions, dispositions, restructuring, impairment, casualty losses and insurance recoveries, legal settlements, pension settlements, and debt extinguishment; acquisition-related amortization; and discrete tax items 9. Adjusted EPS: Diluted EPS excluding the impact per share of income/loss from discontinued operations; gains/losses and costs from acquisitions, dispositions, restructuring, impairment, casualty losses and insurance recoveries, legal settlements, pension settlements, and debt extinguishment; acquisition-related amortization; and discrete tax items 10. ROIC: EBIT excluding acquisition-related amortization less the tax impact (provision for income taxes plus the tax impact of interest expense, interest income, and acquisition-related amortization at a base rate of 25%) divided by average invested capital (stockholders' equity plus debt, less cash, less equity of businesses held for sale) 11. Net debt to EBITDA: Net debt per debt covenants (total senior note debt less cash) divided by EBITDA per debt covenants (income from continuing operations excluding interest expense, income tax expense, depreciation, amortization, and non-cash stock compensation expense) 12. EBITDA to interest: EBITDA per debt covenants divided by interest expense
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18 Reconciliation to Organic Revenue Three Months Ended December 31, (in millions, except percentages) CSL CCM CWT 2024 Revenues (GAAP) $ 1,122.9 $ 833.6 $ 289.3 Organic (28.2) (2.5) % (9.0) (1.1) % (19.2) (6.6) % Acquisitions 30.4 2.7 % — — % 30.4 10.5 % FX impact 2.6 0.2 % 2.2 0.3 % 0.4 0.1 % Total change 4.8 0.4 % (6.8) (0.8) % 11.6 4.0 % 2025 Revenues (GAAP) 1,127.7 826.8 300.9
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19 Reconciliation to Free Cash Flow Three Months Ended December 31, Year Ended December 31, (in millions) 2025 2024 2025 2024 Operating cash flow (GAAP) $ 386.0 $ 370.6 $ 1,101.8 $ 1,030.3 Less: operating cash flow from discontinued operations (6.0) (7.1) (1.8) (8.9) Operating cash flow from continuing operations $ 392.0 $ 377.7 $ 1,103.6 $ 1,039.2 Capital expenditures (GAAP) $ (39.9) $ (36.6) $ (131.2) $ (113.3) Less: capital expenditures at discontinued operations — — — (12.4) Capital expenditures at continuing operations $ (39.9) $ (36.6) $ (131.2) $ (100.9) Operating cash flow from continuing operations $ 392.0 $ 377.7 $ 1,103.6 $ 1,039.2 Capital expenditures at continuing operations (39.9) (36.6) (131.2) (100.9) Free cash flow from continuing operations $ 352.1 $ 341.1 $ 972.4 $ 938.3 Revenues $ 1,127.7 $ 1,122.9 $ 5,019.9 $ 5,003.6 Free cash flow margin 31.2 % 30.4 % 19.4 % 18.8 %
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20 Reconciliation to Adjusted EBITDA Senior Note $350 M 3.75% Senior Note $300 M 0.55% Senior Note $400 M 3.50% Senior Note $600 M 3.75% Senior Note $750 M 2.75% Three Months Ended December 31, Year Ended December 31, (in millions, except percentages) 2025 2024 2025 2024 Net income (GAAP) $ 127.4 $ 162.8 $ 740.7 $ 1,311.8 Less: Income from discontinued operations (6.0) 0.4 (1.8) 446.7 Income from continuing operations (GAAP) 133.4 162.4 742.5 865.1 Provision for income taxes 39.0 39.6 206.3 245.8 Interest expense 27.7 17.3 78.5 73.3 Interest income (11.3) (16.0) (25.9) (60.3) EBIT 188.8 203.3 1,001.4 1,123.9 Plus (gains)/losses and costs from: Acquisitions 1.6 10.2 11.5 15.0 Dispositions (0.3) 0.2 (0.4) (0.4) Restructuring 5.4 0.2 9.8 2.9 Casualty losses and insurance recoveries — — — (5.0) Legal settlements 2.0 0.7 3.6 2.6 Pension settlements 1.5 21.1 3.0 21.1 Total non-comparable items 10.2 32.4 27.5 36.2 Adjusted EBIT 199.0 235.7 1,028.9 1,160.1 Depreciation 19.3 18.5 74.6 70.2 Amortization 30.7 27.5 121.9 102.4 Adjusted EBITDA 249.0 281.7 $ 1,225.4 $ 1,332.7 Divided by: Total revenues $ 1,127.7 $ 1,122.9 $ 5,019.9 $ 5,003.6 Adjusted EBITDA margin 22.1 % 25.1 % 24.4 % 26.6 %
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21 Reconciliation to Segment Adjusted EBITDA Senior Note $350 M 3.75% Senior Note $300 M 0.55% Senior Note $400 M 3.50% Senior Note $600 M 3.75% Senior Note $750 M 2.75% Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 (in millions, except percentages) CCM CWT Corporate and unallocated CCM CWT Corporate and unallocated Operating income (loss) (GAAP) $ 198.3 $ 13.6 $ (21.9) $ 223.3 $ 25.4 $ (24.7) Non-operating expense (income), net 0.2 — 1.0 0.8 (1.3) 21.2 EBIT 198.1 13.6 (22.9) 222.5 26.7 (45.9) Plus (gains) / losses and costs from: Acquisitions — 1.2 0.4 — 2.7 7.5 Dispositions (0.2) (0.1) — 0.2 — — Restructuring 0.3 5.1 — 0.1 0.1 — Legal settlements 0.5 1.5 — — 0.7 — Pension settlements — — 1.5 — — 21.1 Total non-comparable items 0.6 7.7 1.9 0.3 3.5 28.6 Adjusted EBIT 198.7 21.3 (21.0) 222.8 30.2 (17.3) Depreciation 13.5 5.4 0.4 13.4 4.7 0.4 Amortization 9.4 21.0 0.3 9.0 18.0 0.5 Adjusted EBITDA $ 221.6 $ 47.7 $ (20.3) $ 245.2 $ 52.9 $ (16.4) Divided by: Total revenues $ 826.8 $ 300.9 $ — $ 833.6 $ 289.3 $ — Adjusted EBITDA margin 26.8 % 15.9 % NM 29.4 % 18.3 % NM
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22 Reconciliation to Segment Adjusted EBITDA Senior Note $350 M 3.75% Senior Note $300 M 0.55% Senior Note $400 M 3.50% Senior Note $600 M 3.75% Senior Note $750 M 2.75% Year Ended December 31, 2025 Year Ended December 31, 2024 (in millions, except percentages) CCM CWT Corporate and unallocated CCM CWT Corporate and unallocated Operating income (loss) (GAAP) $ 997.2 $ 101.9 $ (96.6) $ 1,084.3 $ 173.6 $ (114.8) Non-operating expense (income), net 0.2 0.3 0.6 0.8 (1.3) 19.7 EBIT 997.0 101.6 (97.2) 1,083.5 174.9 (134.5) Plus (gains) / losses and costs from: Acquisitions — 7.2 4.3 1.9 2.7 10.4 Dispositions (0.2) (0.3) 0.1 — (0.4) — Restructuring 0.4 9.4 — 1.7 1.2 — Casualty losses and insurance recoveries — — — (5.0) — — Legal settlements 0.5 3.1 — 1.0 1.6 — Pension settlements — — 3.0 — — 21.1 Total non-comparable items 0.7 19.4 7.4 (0.4) 5.1 31.5 Adjusted EBIT 997.7 121.0 (89.8) 1,083.1 180.0 (103.0) Depreciation 52.5 20.5 1.6 51.5 17.1 1.6 Amortization 36.8 83.3 1.8 29.2 71.2 2.0 Adjusted EBITDA $ 1,087.0 $ 224.8 $ (86.4) $ 1,163.8 $ 268.3 $ (99.4) Divided by: Total revenues $ 3,721.7 $ 1,298.2 $ — $ 3,704.3 $ 1,299.3 $ — Adjusted EBITDA margin 29.2 % 17.3 % NM 31.4 % 20.6 % NM
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23 Reconciliation to Adjusted EPS Three Months Ended December 31, 2025 Three Months Ended December 31, 2024 (in millions, except per share amounts) Pre-tax Impact After-tax Impact(1) Impact to Diluted EPS(2) Pre-tax Impact After-tax Impact(1) Impact to Diluted EPS(2) Net income (GAAP) $ 127.4 $ 3.05 $ 162.8 $ 3.57 Less: Income from discontinued operations (GAAP) (6.0) (0.14) 0.4 0.01 Income from continuing operations (GAAP) 133.4 3.19 162.4 3.56 Plus (gains) / losses and costs from: Acquisitions 1.6 1.2 0.03 10.2 7.8 0.17 Dispositions (0.3) (0.2) — 0.2 0.1 — Restructuring 5.4 4.2 0.10 0.2 0.2 — Legal settlements 2.0 1.6 0.03 0.7 0.6 0.01 Pension settlements 1.5 1.1 0.03 21.1 16.1 0.36 Acquisition-related amortization(3) 28.6 22.4 0.53 25.8 20.1 0.44 Discrete tax items(4) — (0.2) (0.01) — (3.3) (0.07) Total adjustments 30.1 0.71 41.6 0.91 Adjusted net income $ 163.5 $ 3.90 $ 204.0 $ 4.47 (1) The impact to net income reflects the tax effect of noted items, which is calculated at a blended tax rate based on Carlisle's operations and the jurisdictions in which we operate. (2) The per share impact of adjustments to each period is based on diluted shares outstanding using the two-class method. (3) Acquisition-related amortization includes the amortization of customer relationships, technology, trade names and other intangible assets recorded in purchase accounting in connection with a business combination. These intangible assets contribute to revenue generation and the amortization of these assets will recur until such intangible assets are fully amortized. (4) Discrete tax items include current period tax expense or benefit related to prior year items, excess tax benefits from stock compensation, the tax impact of foreign currency gains and losses, or changes in tax laws or rates.
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24 Year Ended December 31, 2025 Year Ended December 31, 2024 (in millions, except per share amounts) Pre-tax Impact After-tax Impact(1) Impact to Diluted EPS(2) Pre-tax Impact After-tax Impact(1) Impact to Diluted EPS(2) Net income (GAAP) $ 740.7 $ 17.12 $ 1,311.8 $ 27.82 Less: Income from discontinued operations (GAAP) (1.8) (0.04) 446.7 9.48 Income from continuing operations (GAAP) 742.5 17.16 865.1 18.34 Plus (gains) / losses and costs from: Acquisitions 11.5 8.8 0.20 15.0 11.4 0.24 Dispositions (0.4) (0.2) — (0.4) (0.3) — Restructuring 9.8 7.6 0.17 2.9 2.3 0.05 Casualty losses and insurance recoveries — — — (5.0) (3.8) (0.08) Legal settlements 3.6 2.8 0.06 2.6 2.0 0.04 Pension settlement 3.0 2.3 0.06 21.1 16.1 0.34 Acquisition-related amortization(3) 114.2 87.9 2.03 96.3 73.2 1.55 Discrete tax items(4) — (12.3) (0.28) — (13.1) (0.28) Total adjustments 96.9 2.24 87.8 1.86 Adjusted net income $ 839.4 $ 19.40 $ 952.9 $ 20.20 (1) The impact to net income reflects the tax effect of noted items, which is calculated at a blended tax rate based on Carlisle's operations and the jurisdictions in which we operate. (2) The per share impact of adjustments to each period is based on diluted shares outstanding using the two-class method. (3) Acquisition-related amortization includes the amortization of customer relationships, technology, trade names and other intangible assets recorded in purchase accounting in connection with a business combination. These intangible assets contribute to revenue generation and the amortization of these assets will recur until such intangible assets are fully amortized. (4) Discrete tax items include current period tax expense or benefit related to prior year items, the tax impact of foreign currency gains and losses, or changes in tax laws or rates. Reconciliation to Adjusted EPS
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25 Reconciliation of Debt Covenant Ratios (in millions, except ratios) LTM 12/31/2025 Income from continuing operations (GAAP) $ 742.5 Income tax expense 206.3 Interest expense 78.5 Depreciation and amortization 196.5 Non-cash stock-based compensation expense 34.8 EBITDA per debt covenants $ 1,258.6 Consolidated interest expense $ 78.5 Total senior note debt $ 2,900.0 Less: cash 1,112.1 Net debt per debt covenants $ 1,787.9 Net debt to EBITDA per debt covenants 1.4x EBITDA per debt covenants to interest 16.0x
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26 Reconciliation to ROIC (in millions, except percentages) Year Ended December 31, 2025 Net income (GAAP) $ 740.7 Less: income (loss) from discontinued operations (GAAP) (1.8) Income from continuing operations (GAAP) 742.5 Provision for income taxes 206.3 Interest expense 78.5 Interest Income (25.9) EBIT 1,001.4 Acquisition-related amortization(1) 114.2 Earnings before interest, taxes and amortization 1,115.6 Less: tax impact(2) 248.0 Earnings before interest and amortization 867.6 (in millions, except percentages) Year Ended December 31, 2024 Year Ended December 31, 2025 Average 2024 - 2025 Stockholders' Equity $ 2,463.3 $ 1,795.4 $ 2,129.4 Debt 1,890.6 2,886.4 $ 2,388.5 Less: cash 753.5 1,112.1 $ 932.8 Invested Capital 3,600.4 3,569.7 $ 3,585.1 ROIC 867,600,000.0 24.2 % (1) Acquisition-related amortization includes the amortization of customer relationships, technology, trade names and other intangible assets recorded in purchase accounting in connection with a business combination. These intangible assets contribute to revenue generation and the amortization of these assets will recur until such intangible assets are fully amortized. (2) Tax impact reflects provision for income taxes plus the tax impact of interest expense, interest income and amortization at a base rate of 25%.