What changed in this filing

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Item 1. Financial Statements

2024-04-03 compared with 2024-01-09 · 129 added, 104 removed, 490 unchanged (32% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

November 30, 2023 August 31, 2023

(In millions, except per-share data)

February 29, 2024 August 31, 2023

Current assets:

26 unchanged sentences

Stockholders’ equity:

Preferred stock, $ 0.01 par value;

Preferred stock, $ 0.01 par value per share;

50.0 shares authorized;

Common stock, $ 0.01 par value;

Common stock, $ 0.01 par value per share;

500.0 shares authorized;

54,536,606 and 54,411,186 issued, respectively

54.6 and 54.4 shares issued, respectively

Paid-in capital 1,087.7 1,066.8

9 unchanged sentences

(In millions, except per-share data)

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Net sales $ 905.9 $ 943.6 $ 1,840.6 $ 1,941.5

5 unchanged sentences

Other expense:

Interest expense, net 0.9 6.6

Miscellaneous expense, net 1.1 9.1

Interest (income) expense, net ( 0.1 ) 5.7 0.8 12.3

Miscellaneous expense (income), net 0.6 ( 3.7 ) 1.7 5.4

Total other expense 0.5 2.0 2.5 17.7

13 unchanged sentences

Defined benefit plans, net of tax 0.7 1.0 1.3 2.1

Other comprehensive loss items, net of tax ( 1.5 ) ( 0.4 )

Other comprehensive income (loss) items, net of tax 1.4 ( 0.1 ) ( 0.1 ) ( 0.5 )

Comprehensive income $ 90.6 $ 83.1 $ 189.7 $ 157.6

6 unchanged sentences

(In millions)

Three Months Ended

November 30, 2023 November 30, 2022

Six Months Ended

February 29, 2024 February 28, 2023

Cash flows from operating activities:

3 unchanged sentences

Share-based payment expense 23.1 22.0

Loss on sale of property, plant, and equipment 0.4 —

Loss on disposal of property, plant, and equipment 0.3 —

Asset impairment — 4.3

47 unchanged sentences

ISG offers building management solutions and building management software.

ISG's building management solutions include products for controlling heating, ventilation, air conditioning (“HVAC”);

refrigeration;

and building access that deliver end-to-end optimization of those building systems.

ISG's building management solutions include products for controlling heating, ventilation, air conditioning (“HVAC”), lighting, shades, refrigeration, and building access that deliver end-to-end optimization of those building systems.

ISG's intelligent building software enhances the occupant experience, improves building system management, and automates labor intensive tasks while delivering operational energy efficiency and cost reductions.

9 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

These unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly our consolidated financial position as of November 30, 2023, our consolidated comprehensive income for the three months ended November 30, 2023 and 2022, and our consolidated cash flows for the three months ended November 30, 2023 and 2022.

These unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly our consolidated financial position as of February 29, 2024, our consolidated comprehensive income for the three and six months ended February 29, 2024 and February 28, 2023, and our consolidated cash flows for the six months ended February 29, 2024 and February 28, 2023.

Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with U.S.

14 unchanged sentences

Note 3 — Acquisitions and Divestitures

There were no acquisitions or divestitures during the first quarter of fiscal 2024.

The following discussion relates to fiscal year 2023 activities.

On January 19, 2024, we acquired certain assets related to Arize® horticulture lighting products from Current Lighting Solutions, LLC.

The assets have been included in ABL's financial results since the date of acquisition and did not have a material impact to our consolidated financial condition, results of operations, or cash flows.

On May 15, 2023, using cash on hand, we acquired all of the equity interests of KE2 Therm Solutions, Inc.

5 unchanged sentences

Acquisition-related costs were expensed as incurred and were not material to our financial statements.

The aggregate purchase price of this acquisition reflects preliminary goodwill within the ISG segment of $ 15.0 million at November 30, 2023, which is not expected to be deductible for tax purposes.

The aggregate purchase price of this acquisition reflects preliminary goodwill within the ISG segment of $ 15.0 million at February 29, 2024, which is not expected to be deductible for tax purposes.

The goodwill is primarily comprised of expected benefits related to expanding ISG's technology and controls product portfolio as well as the trained workforce acquired with these businesses and expected synergies from combining the operations of KE2 Therm with our operations.

We additionally recorded preliminary gross intangible assets of $ 18.0 million as of November 30, 2023, which reflect estimates for definite-lived intangibles with a preliminary estimated weighted average useful life of approximately 15 years.

Amounts recorded for acquired assets and liabilities are deemed to be provisional until disclosed otherwise as we continue to gather information related to the identification and valuation of acquired assets and liabilities including, but not limited to, intangible assets and tax-related items.

The operating results of KE2 Therm have been included in our financial statements since the date of acquisition and are not material to our consolidated financial condition,

We additionally recorded preliminary gross intangible assets of $ 18.0 million as of February 29, 2024, which reflect estimates for definite-lived intangibles with a preliminary estimated weighted average useful life of approximately 15 years.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

results of operations, or cash flows.

There were no measurement period adjustments during the first six months of fiscal 2024.

The operating results of KE2 Therm have been included in our financial statements since the date of acquisition and are not material to our consolidated financial condition, results of operations, or cash flows.

There were no divestitures during the first six months of fiscal 2024.

The following discussion relates to fiscal year 2023 activities.

We sold our Sunoptics prismatic skylights business in November 2022.

We transferred assets with a total carrying value of $ 15.1 million, which primarily consisted of intangibles with definite lives, inventories, and allocated goodwill from the ABL segment.

During the first quarter of fiscal 2023, we recognized a pre-tax loss on the sale of $ 11.2 million within Miscellaneous expense, net on the Consolidated Statements of Comprehensive Income .

Additionally, we recorded impairment charges for certain retained assets as well as associate severance and other costs related to the sale.

During the first quarter of fiscal 2023, we recognized a pre-tax loss on this sale of $ 11.2 million within Miscellaneous expense (income), net on the Consolidated Statements of Comprehensive Income .

Additionally, we recorded impairment charges for certain retained assets as well as associate severance and other costs related to this sale.

These items are included within Special charges on the Consolidated Statements of Comprehensive Income .

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All other newly issued accounting pronouncements not yet effective have been deemed either immaterial or not applicable.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 5 — Fair Value Measurements

5 unchanged sentences

No transfers between the levels of the fair value hierarchy occurred during the current fiscal period.

In the event of a

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence.

In the event of a transfer in or out of a level within the fair value hierarchy, the transfers would be recognized on the date of occurrence.

We may from time to time be required to remeasure the carrying value of certain assets and liabilities to fair value on a nonrecurring basis.

2 unchanged sentences

The following table summarizes balances and the fair value hierarchy level of our financial instruments recorded at fair value on a recurring basis as of the dates presented (in millions):

November 30, 2023 August 31, 2023

February 29, 2024 August 31, 2023

Assets recorded at fair value:

13 unchanged sentences

Our senior unsecured public notes are carried at the outstanding balance, net of unamortized bond discount and deferred costs, as of the end of the reporting period.

The estimated fair value of our senior unsecured public notes was $ 401.3 million and $ 401.4 million as of November 30, 2023 and August 31, 2023, respectively.

We had no short-term borrowings outstanding under our revolving credit facility as of November 30, 2023 and August 31, 2023.

The estimated fair value of our senior unsecured public notes was $ 410.7 million and $ 401.4 million as of February 29, 2024 and August 31, 2023, respectively.

We had no short-term borrowings outstanding under our revolving credit facility as of February 29, 2024 and August 31, 2023.

Such borrowings, if any, are variable-rate instruments that reset on a frequent short-term basis;

1 unchanged sentence

See Debt and Lines of Credit footnote of the Notes to Consolidated Financial Statements for further details on our outstanding borrowings.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.

2 unchanged sentences

In evaluating our management of liquidity and other risks, the fair values of all assets and liabilities should be taken into consideration, not only those presented above.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 6 — Inventories

1 unchanged sentence

Inventories are stated on a first-in, first-out basis at the lower of cost and net realizable value and consist of the following as of the dates presented (in millions):

November 30, 2023 August 31, 2023

February 29, 2024 August 31, 2023

Raw materials, supplies, and work in process (1)

10 unchanged sentences

Property, plant, and equipment consist of the following as of the dates presented (in millions):

November 30, 2023 August 31, 2023

February 29, 2024 August 31, 2023

Land $ 23.0 $ 23.0

7 unchanged sentences

Indefinite-lived intangible assets consist of trade names that are expected to generate cash flows indefinitely.

We recorded amortization expense for definite-lived intangible assets of $ 9.9 million and $ 13.6 million during the three months ended November 30, 2023 and 2022, respectively.

We recorded amortization expense for definite-lived intangible assets of $ 10.0 million and $ 9.3 million during the three months ended February 29, 2024 and February 28, 2023, respectively, and $ 19.9 million and $ 22.9 million during the six months ended February 29, 2024 and February 28, 2023, respectively.

ACUITY BRANDS, INC.

4 unchanged sentences

Foreign currency translation adjustments ( 0.6 ) ( 0.2 ) ( 0.8 )

Balance at November 30, 2023 $ 1,014.2 $ 83.3 $ 1,097.5

Balance at February 29, 2024 $ 1,013.8 $ 83.3 $ 1,097.1

ABL ISG Total

2 unchanged sentences

Foreign currency translation adjustments ( 1.2 ) ( 2.1 ) ( 3.3 )

Balance at November 30, 2022 $ 1,013.1 $ 68.9 $ 1,082.0

Further discussion of goodwill and other intangible assets is included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K.

Balance at February 28, 2023 $ 1,012.3 $ 68.0 $ 1,080.3

Further discussion of goodwill and intangible assets is included within the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K.

Note 9 — Other Current Liabilities

Other current liabilities consist of the following as of the dates presented (in millions):

November 30, 2023 August 31, 2023

February 29, 2024 August 31, 2023

Customer incentive programs (1)

1 unchanged sentence

Refunds to customers (1)

Current deferred revenues (1)

Deferred revenues (1)

Sales commissions 28.0 35.7

14 unchanged sentences

Long-term Debt

On November 10, 2020, a wholly owned subsidiary of Acuity Brands Lighting, Inc.

issued $ 500.0 million aggregate principal amount of 2.150 % senior unsecured notes due December 15, 2030 (the “Unsecured Notes”) at a price equal to 99.737 % of their face value.

On November 10, 2020, Acuity Brands Lighting, Inc., a wholly-owned operating subsidiary of Acuity Brands, Inc., issued $ 500.0 million aggregate principal amount of 2.150 % senior unsecured notes due December 15, 2030 (the “Unsecured Notes”) at a price equal to 99.737 % of their face value.

Interest on the Unsecured Notes is paid semi-annually in arrears on June 15 and December 15 of each year.

We recorded $ 4.8 million of deferred issuance costs related to the Unsecured Notes as a direct deduction from the face amount of the Unsecured Notes.

At issuance we recorded $ 4.8 million of deferred issuance costs related to the Unsecured Notes as a direct deduction from the face amount of the Unsecured Notes.

These issuance costs are amortized over the 10-year term of the Unsecured Notes.

3 unchanged sentences

On June 30, 2022, we entered into a credit agreement (the “Credit Agreement”) with a syndicate of banks that provides us with a $ 600.0 million five-year unsecured revolving credit facility (the “Revolving Credit Facility”) with the ability to request an additional $ 400.0 million of borrowing capacity.

We had no short-term borrowings outstanding under the Revolving Credit Facility at November 30, 2023 and August 31, 2023.

We had no short-term borrowings outstanding under the Revolving Credit Facility at February 29, 2024 and August 31, 2023.

We were in compliance with all financial covenants under the Credit Agreement as of the periods presented.

At November 30, 2023, we had additional borrowing capacity under the Credit Agreement of $ 596.2 million under the most restrictive covenant in effect at the time, which represents the full amount of the Revolving Credit Facility less outstanding letters of credit of $ 3.8 million issued under the Revolving Credit Facility, primarily for securing collateral requirements under our casualty insurance premiums.

At February 29, 2024, we had additional borrowing capacity under the Credit Agreement of $ 596.2 million under the most restrictive covenant in effect at the time, which represents the full amount of the Revolving Credit Facility less outstanding letters of credit of $ 3.8 million issued under the Revolving Credit Facility, primarily for securing collateral requirements under our casualty insurance premiums.

None of our existing debt instruments include provisions that would require an acceleration of repayments based solely on changes in our credit ratings.

3 unchanged sentences

We establish estimated liabilities when the associated costs related to uncertainties or guarantees become probable and can be reasonably estimated.

For the period ended November 30, 2023, no material changes have occurred in our estimated liabilities for self-insurance, litigation, environmental matters, guarantees and indemnities, or relevant events and circumstances, from those disclosed in the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements within our Form 10-K other than the items discussed below.

For the period ended February 29, 2024, no material changes have occurred in our estimated liabilities for self-insurance, litigation, environmental matters, guarantees and indemnities, or relevant events and circumstances, from those disclosed in the Commitments and Contingencies footnote of the Notes to Consolidated Financial Statements within our Form 10-K other than the items discussed below.

Product Warranty and Recall Costs

12 unchanged sentences

The following table summarizes changes in the estimated liabilities for product warranty and recall costs during the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

Six Months Ended

February 29, 2024 February 28, 2023

Beginning balance $ 31.6 $ 27.3

24 unchanged sentences

Common Stock Outstanding

Shares Amount Paid-in

Amount Paid-in

Capital Retained

13 unchanged sentences

Balance, November 30, 2023 30.9 0.5 1,070.5 3,601.9 ( 114.1 ) ( 2,494.7 ) 2,064.1

Net income — — — 89.2 — — 89.2

Other comprehensive income — — — — 1.4 — 1.4

Share-based payment amortization, issuances, and cancellations

— — 11.8 — — — 11.8

Employee stock purchase plan issuances — — 0.3 — — — 0.3

Cash dividends of $ 0.15 per share paid on common stock

— — — ( 4.7 ) — — ( 4.7 )

Stock options exercised — — 5.1 — — — 5.1

Repurchases of common stock ( 0.1 ) — — — — ( 17.6 ) ( 17.6 )

Balance, February 29, 2024 30.8 $ 0.5 $ 1,087.7 $ 3,686.4 $ ( 112.7 ) $ ( 2,512.3 ) $ 2,149.6

_______________________________________

(1) Share activity and balances above are calculated using rounded numbers.

Common Stock Outstanding

Shares Amount Paid-in

Amount Paid-in

Capital Retained

13 unchanged sentences

Balance, November 30, 2022 32.2 0.5 1,035.4 3,246.8 ( 126.2 ) ( 2,253.0 ) 1,903.5

Net income — — — 83.2 — — 83.2

Other comprehensive loss — — — — ( 0.1 ) — ( 0.1 )

Share-based payment amortization, issuances, and cancellations — — 10.9 — — — 10.9

Employee stock purchase plan issuances — — 0.3 — — — 0.3

Cash dividends of $ 0.13 per share paid on common stock

— — — ( 4.2 ) — — ( 4.2 )

Stock options exercised — — 0.5 — — — 0.5

Repurchases of common stock ( 0.2 ) — — — — ( 46.5 ) ( 46.5 )

Balance, February 28, 2023 32.0 $ 0.5 $ 1,047.1 $ 3,325.8 $ ( 126.3 ) $ ( 2,299.5 ) $ 1,947.6

_______________________________________

(1) Share activity and balances above are calculated using rounded numbers.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 13 — Revenue Recognition

9 unchanged sentences

Contract liabilities arise when we receive cash or an unconditional right to collect cash prior to the transfer of control of goods or services.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The amount of transaction price from contracts with customers allocated to our contract liabilities consists of the following as of the dates presented (in millions):

November 30, 2023 August 31, 2023

February 29, 2024 August 31, 2023

Current deferred revenues $ 16.2 $ 14.1

2 unchanged sentences

These services are expected to be performed within one year.

Revenue recognized from beginning balances of contract liabilities during the three months ended November 30, 2023 totaled $ 3.9 million.

Revenue recognized from beginning balances of contract liabilities during the six months ended February 29, 2024 totaled $ 6.9 million.

Non-current deferred revenues primarily consist of long-term service-type warranties, which are typically recognized ratably as revenue between five and ten years from the date of sale, and are included within Other long-term liabilities on the Consolidated Balance Sheets.

Unsatisfied performance obligations that do not represent contract liabilities are expected to be satisfied within one year from November 30, 2023 and consist primarily of orders for physical goods that have not yet been shipped.

Unsatisfied performance obligations that do not represent contract liabilities are expected to be satisfied within one year from February 29, 2024 and consist primarily of orders for physical goods that have not yet been shipped.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Disaggregated Revenues

2 unchanged sentences

The following table shows revenue from contracts with customers by sales channel and reconciles to our segment information for the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Independent sales network $ 612.3 $ 635.3 $ 1,237.5 $ 1,309.0

10 unchanged sentences

The following table presents share-based payment expense for the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Share-based payment expense $ 12.0 $ 11.3 $ 23.1 $ 22.0

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

We recognized excess tax benefits of $ 1.5 million and $ 1.3 million related to share-based payment awards during the three months ended November 30, 2023 and 2022, respectively.

We recognized excess tax benefits of $ 1.5 million and $ 1.7 million related to share-based payment awards during the six months ended February 29, 2024 and February 28, 2023, respectively.

Further details regarding our share-based payments are included within the Share-based Payments footnote of the Notes to Consolidated Financial Statements within our Form 10-K.

7 unchanged sentences

Net periodic pension cost included the following components before tax for the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Service cost $ 1.2 $ 1.2 $ 2.3 $ 2.3

6 unchanged sentences

Note 16 — Special Charges

We recognized no special charges during the first quarter of fiscal 2024.

We recognized no special charges during the first six months of fiscal 2024.

During the first quarter of fiscal 2023, we recognized $ 6.9 million within Special charges on the Consolidated Statements of Comprehensive Income primarily for impairments of operating lease right-of-use assets for $ 4.3 million associated with our previously owned Sunoptics prismatic skylights business that were not transferred in connection with the sale.

We additionally recognized associate severance and other costs totaling $ 2.6 million primarily in connection with the Sunoptics divestiture.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 17 — Other Expense

The following table summarizes the components of other expense (income), net for the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

Interest expense, net:

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Interest (income) expense, net:

Interest expense $ 6.5 $ 7.6 $ 12.9 $ 15.5

Interest income ( 6.6 ) ( 1.9 ) ( 12.1 ) ( 3.2 )

Interest expense, net 0.9 6.6

Miscellaneous expense, net:

Interest (income) expense, net ( 0.1 ) 5.7 0.8 12.3

Miscellaneous expense (income), net:

Non-service components of net periodic pension cost 1.0 1.2 2.1 2.5

2 unchanged sentences

Other items ( 0.6 ) ( 1.1 ) ( 1.2 ) ( 1.8 )

Miscellaneous expense, net 1.1 9.1

Miscellaneous expense (income), net 0.6 ( 3.7 ) 1.7 5.4

Other expense, net $ 0.5 $ 2.0 $ 2.5 $ 17.7

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 18 — Earnings Per Share

4 unchanged sentences

The following table calculates basic earnings per common share and diluted earnings per common share for the periods presented (in millions, except per share data):

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Net income $ 89.2 $ 83.2 $ 189.8 $ 158.1

9 unchanged sentences

Amounts in the table may not recalculate exactly due to rounding.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The following table presents stock options, performance stock awards, and restricted stock awards that were excluded from the diluted earnings per share calculation for the periods presented as the effect of inclusion would have been antidilutive (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

Stock options 0.1 0.1

Performance stock awards — * — *

Restricted stock awards 0.2 0.1

_______________________________________

* Represents shares of less than 0.1 million.

Stock options, performance stock awards, and restricted stock awards that were excluded from the diluted earnings per share calculation as the effect of inclusion would have been antidilutive for three and six months ended February 29, 2024 and February 28, 2023 were immaterial.

Further discussion of our share-based payment awards is included within the Common Stock and Related Matters and Share-based Payments footnotes of the Notes to Consolidated Financial Statements within our Form 10-K.

2 unchanged sentences

Comprehensive income includes our net income as well as other comprehensive income (loss) items, which are comprised of foreign currency translation and pension adjustments.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The following table presents the changes in each component of accumulated other comprehensive income (loss) net of tax during the periods presented (in millions):

4 unchanged sentences

Net current period other comprehensive (loss) income ( 1.4 ) 1.3 ( 0.1 )

Balance at November 30, 2023 $ ( 67.1 ) $ ( 47.0 ) $ ( 114.1 )

Balance at February 29, 2024 $ ( 66.4 ) $ ( 46.3 ) $ ( 112.7 )

Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Items

3 unchanged sentences

Net current period other comprehensive (loss) income ( 2.6 ) 2.1 ( 0.5 )

Balance at November 30, 2022 $ ( 75.0 ) $ ( 51.2 ) $ ( 126.2 )

Balance at February 28, 2023 $ ( 76.1 ) $ ( 50.2 ) $ ( 126.3 )

_______________________________________

1 unchanged sentence

See the Pension and Defined Contribution Plans footnote of the Notes to Consolidated Financial Statements for additional details.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The following table summarizes the tax expense or benefit allocated to each component of other comprehensive loss for the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

February 29, 2024 February 28, 2023

Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount

6 unchanged sentences

Total defined benefit pension plans, net 0.8 ( 0.1 ) 0.7 1.3 ( 0.3 ) 1.0

Other comprehensive loss $ ( 1.3 ) $ ( 0.2 ) $ ( 1.5 ) $ — $ ( 0.4 ) $ ( 0.4 )

Other comprehensive income (loss) $ 1.5 $ ( 0.1 ) $ 1.4 $ 0.2 $ ( 0.3 ) $ ( 0.1 )

Six Months Ended

February 29, 2024 February 28, 2023

Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount

Foreign currency translation adjustments $ ( 1.4 ) $ — $ ( 1.4 ) $ ( 2.6 ) $ — $ ( 2.6 )

Defined benefit pension plans:

Amortization of defined benefit pension items:

Prior service cost — — — 1.3 ( 0.3 ) 1.0

Actuarial losses 1.6 ( 0.3 ) 1.3 1.5 ( 0.4 ) 1.1

Total defined benefit pension plans, net 1.6 ( 0.3 ) 1.3 2.8 ( 0.7 ) 2.1

Other comprehensive income (loss) $ 0.2 $ ( 0.3 ) $ ( 0.1 ) $ 0.2 $ ( 0.7 ) $ ( 0.5 )

Note 20 — Segment Information

We report our financial results of operations in two reportable segments, ABL and ISG, consistent with how our chief operating decision maker currently evaluates operating results, assesses performance, and allocates resources within the Company.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The accounting policies of our reportable segments are the same as those described in the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K.

2 unchanged sentences

Additionally, net interest expense, net miscellaneous expense, and income tax expense are not allocated to segments.

We recorded no special charges during the three months ended November 30, 2023.

Special charges during the three months ended November 30, 2022 of $ 6.9 million pertained to the ABL segment.

We recorded no special charges during the three and six months ended February 29, 2024.

Special charges during the six months ended February 28, 2023 of $ 6.9 million pertained to the ABL segment.

The following table presents financial information by operating segment for the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

ABL $ 843.5 $ 890.8 $ 1,719.9 $ 1,837.9

5 unchanged sentences

ABL $ 126.0 $ 123.6 $ 269.8 $ 241.7

ISG 9.1 6.3 14.4 14.0

Unallocated corporate amounts ( 17.0 ) ( 18.4 ) ( 33.2 ) ( 35.3 )

3 unchanged sentences

Profit on these sales eliminates within gross profit on a consolidated basis.

ACUITY BRANDS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The following table reconciles operating profit by segment to income before income taxes for the periods presented (in millions):

Three Months Ended

November 30, 2023 November 30, 2022

Three Months Ended Six Months Ended

February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023

Operating profit - ABL $ 126.0 $ 123.6 $ 269.8 $ 241.7

2 unchanged sentences

Operating profit 118.1 111.5 251.0 220.4

Interest expense, net 0.9 6.6

Miscellaneous expense, net 1.1 9.1

Interest (income) expense, net ( 0.1 ) 5.7 0.8 12.3

Miscellaneous expense (income), net 0.6 ( 3.7 ) 1.7 5.4

Income before income taxes $ 117.6 $ 109.5 $ 248.5 $ 202.7

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements