| Financial Information Related to Company's Reportable Segments |
Financial information relating to the Company’s reportable segments is as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, | | | Americas | | EMEA | | APAC | | 2026 | 2025 | | 2026 | 2025 | | 2026 | 2025 | | Net sales | $ | 4,121 | | $ | 3,837 | | | $ | 1,282 | | $ | 1,201 | | | $ | 739 | | $ | 638 | | | Cost of sales | 2,589 | | 2,397 | | | 829 | | 807 | | | 462 | | 403 | | | Selling, general and administrative expenses ("SG&A") | 827 | | 824 | | | 274 | | 277 | | | 135 | | 135 | | | Equity income | — | | — | | | — | | — | | | (1) | | (1) | | | Segment EBIT | 705 | | 616 | | | 179 | | 117 | | | 143 | | 101 | | Amortization of intangible assets | 77 | | 91 | | | 7 | | 18 | | | 3 | | 3 | | | Segment EBITA (non-GAAP) | $ | 782 | | $ | 707 | | | $ | 186 | | $ | 135 | | | $ | 146 | | $ | 104 | | | | | | | | | | | | Depreciation included in Cost of sales and SG&A | $ | 38 | | $ | 37 | | | $ | 6 | | $ | 15 | | | $ | 6 | | $ | 6 | | | Capital expenditures | $ | 18 | | $ | 26 | | | $ | 19 | | $ | 30 | | | $ | 2 | | $ | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended March 31, | | | Americas | | EMEA | | APAC | | 2026 | 2025 | | 2026 | 2025 | | 2026 | 2025 | | Net sales | $ | 7,964 | | $ | 7,464 | | | $ | 2,543 | | $ | 2,358 | | | $ | 1,432 | | $ | 1,280 | | | Cost of sales | 5,057 | | 4,731 | | | 1,642 | | 1,567 | | | 904 | | 809 | | | Selling, general and administrative expenses ("SG&A") | 1,658 | | 1,623 | | | 571 | | 558 | | | 274 | | 286 | | | Equity income | — | | — | | | — | | — | | | (2) | | (1) | | | Segment EBIT | 1,249 | | 1,110 | | | 330 | | 233 | | | 256 | | 186 | | Amortization of intangible assets | 153 | | 186 | | | 14 | | 38 | | | 7 | | 8 | | | Segment EBITA (non-GAAP) | $ | 1,402 | | $ | 1,296 | | | $ | 344 | | $ | 271 | | | $ | 263 | | $ | 194 | | | | | | | | | | | | Depreciation included in Cost of sales and SG&A | $ | 71 | | $ | 70 | | | $ | 12 | | $ | 20 | | | $ | 11 | | $ | 11 | | | Capital expenditures | $ | 46 | | $ | 81 | | | $ | 39 | | $ | 44 | | | $ | 7 | | $ | 1 | |
A reconciliation of segment EBIT and segment EBITA (non-GAAP) to consolidated income before income taxes is as follows (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, | | Six Months Ended March 31, | | | 2026 | | 2025 | | 2026 | | 2025 | | Segment EBITA (non-GAAP) | $ | 1,114 | | | $ | 946 | | | $ | 2,009 | | | $ | 1,761 | | | Amortization of intangible assets | 87 | | | 112 | | | 174 | | | 232 | | | Segment EBIT | 1,027 | | | 834 | | | 1,835 | | | 1,529 | | | | | | | | | | | Corporate expenses | 152 | | | 186 | | | 308 | | | 357 | | | Restructuring and impairment costs | 57 | | | 62 | | | 144 | | | 95 | | | | | | | | | | Water systems AFFF insurance recoveries (1) | (1) | | | (8) | | | (131) | | | (12) | | | Net financing charges | 67 | | | 80 | | | 126 | | | 166 | | | Gain on divestiture | — | | | — | | | (70) | | | — | | | Net mark-to-market adjustments | 14 | | | 13 | | | 12 | | | 14 | | | | | | | | | | | Income from continuing operations before income taxes | $ | 738 | | | $ | 501 | | | $ | 1,446 | | | $ | 909 | |
(1) Refer to Note 18, "Commitments and Contingencies," of the notes to the consolidated financial statements for further disclosure related to the water systems AFFF settlement.
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