In Management's Discussion and Analysis of Financial Condition and Results of Operations (the "MD&A"), we explain the general financial condition and the results of operations for STERIS including:

General Company Overview and Executive Summary

Our debt-to-total capital ratio was 31.9% at June 30, 2022 and 32.1% at March 31, 2022. During the first three months of fiscal 2023, we declared and paid a quarterly cash dividend of $0.43 per ordinary share.

Additional information regarding our financial performance during the first quarter of fiscal 2023 is included in the subsection below titled "Results of Operations."

The following table summarizes the calculation of our free cash flow for the three months ended June 30, 2022 and 2021:

Revenues. The following tables compare our revenues for the three months ended June 30, 2022 to the revenues for the three months ended June 30, 2021:

Gross Profit. The following table compares our gross profit for the three months ended June 30, 2022 to the three months ended June 30, 2021:

Operating Expenses. The following table compares our operating expenses for the three months ended June 30, 2022 to the three months ended June 30, 2021:

22,674 $ 21,812 $ 862 Fair value adjustment related to convertible debt, premium liability

Income Tax Expense. The following table compares our income tax expense and effective income tax rates for the three months ended June 30, 2022 and June 30, 2021:

Business Segment Results of Operations. We report our financial information in four reportable business segments: Healthcare, Applied Sterilization Technologies, Life Sciences and Dental. Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income.

(Gain) on fair value adjustment of acquisition related contingent consideration (1)

Amortization of inventory and property "step up" to fair value (1)

The following table summarizes significant components of our cash flows for the three months ended June 30, 2022 and 2021:

Our debt-to-total capital ratio was 31.9% at June 30, 2022 and 34.3% at June 30, 2021.

The following is a summary of the Senior Public Notes guarantees:

•Parent Company Guarantor - STERIS plc

•Subsidiary Issuer - STERIS Irish FinCo Unlimited Company

•Subsidiary Guarantor - STERIS Limited

•Subsidiary Guarantor - STERIS Corporation

The guarantee of a Guarantor will be automatically and unconditionally released and discharged:

•in the case of a Subsidiary Guarantor, upon the sale, transfer or other disposition (including by way of consolidation or merger) of such Subsidiary Guarantor, other than to the Parent or a subsidiary of the Parent and as permitted by the indenture;

•in the case of a Subsidiary Guarantor, at such time as such Subsidiary Guarantor is no longer a borrower under or no longer guarantees any material credit facility (subject to restatement in specified circumstances);

•as described in accordance with the terms of the indenture; or

Operating costs arising from transactions with non-issuers and non-guarantors - net

Non-operating income (expense) arising from transactions with subsidiaries that are non-issuers and non-guarantors - net

Intercompany balances and transactions between the obligor group have been eliminated, and amounts due from, amounts due to, and transactions with non-issuer and non-guarantor subsidiaries have been presented separately. Intercompany transactions arise from internal financing and trade activities.

Critical Accounting Estimates and Assumptions

Refer to note 7 of our Consolidated Financial Statements titled, "Income Tax Expense" for more information.

Availability of Securities and Exchange Commission Filings

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