Select key financial results for the three months ended June 30, 2022 when compared to the same period in the prior year are as follows:

Select key financial results for the six months ended June 30, 2022 when compared to the same period in the prior year are as follows:

The following is a discussion and analysis of the Company's results of operations for the three and six months ended June 30, 2022 compared with the three and six months ended June 30, 2021.

Performance for the Three and Six Months Ended June 30, 2022 Compared with the Same Periods in 2021

Cost of Sales and Gross Margin

Selling, General and Administrative Expenses

Restructuring Expenses and Asset Impairments

Other Expense (Income) - Net

Results of Reportable Business Segments

The Company has three reportable segments: Fluid & Metering Technologies ("FMT"), Health & Science Technologies ("HST") and Fire & Safety/Diversified Products ("FSDP").

(1) Acquisitions included KZValve - May 2022 and Nexsight - February 2022. (2) Based on the timing of its acquisition, ABEL results for the first two months of 2022 are reflected in the acquisitions/divestitures column while the remaining year-over-year fluctuation is included in the organic column.

(1) Acquisitions included Airtech in June 2021.

Cash flows provided by operating activities decreased $53.6 million to $192.0 million, primarily due to increases in working capital discussed below, partially offset by higher earnings.

(1) Free cash flow as a percent of adjusted net income attributable to IDEX reflects the impact of excluding acquisition-related intangible asset amortization, net of related taxes, from adjusted net income attributable to IDEX in both periods presented.

The decrease in free cash flow as compared to 2021 is due to the increases in working capital discussed above, which more than offset higher earnings.

Subsequent to June 30, 2022 and through July 22, 2022, the Company has repurchased 140,112 shares at a cost of $25.8 million.

The Company's credit ratings, which were independently developed by the following credit agencies, are detailed below:

•S&P Global Ratings affirmed the Company's corporate credit rating of BBB (stable outlook) in June 2021.

•Moody's Investors Service affirmed the Company's corporate credit rating of Baa2 (stable outlook) in December 2021.

•Fitch Ratings reaffirmed the Company's corporate credit rating of BBB+ (stable outlook) in March 2022.

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP. The financial results prepared in accordance with U.S. GAAP and the reconciliations from these results should be carefully evaluated.

1. Reconciliations of the Change in Net Sales to Organic Net Sales

3. Reconciliations of Reported-to-Adjusted Operating Income and Margin

4. Reconciliations of Reported-to-Adjusted Net Income and Diluted EPS

+ Tax impact on acquisition-related intangible asset amortization

5. Reconciliations of EBITDA to Net Income

6. Reconciliations of EBITDA to Adjusted EBITDA

(1) EBITDA, a non-GAAP financial measure, is reconciled to net income, its most directly comparable U.S. GAAP financial measure, immediately above in Table 5.

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