Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Ordinary Shares, nominal value $0.01 per share	NVT	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ¨☑ No þ*☐

*~~The registrant became subject to such requirements on April 9, 2018, and it has filed all reports so required since that date.~~

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filerþ

Non-accelerated filer o

Emerging growth

company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨☐ No þ☑

On ~~April~~June 30, ~~2018, 178,415,318~~2021, 168,107,127 shares of Registrant's common stock were outstanding.

ITEM 1. FINANCIAL STATEMENTS

Condensed ~~Combined~~Consolidated Statements of Income and Comprehensive Income (Unaudited)

See accompanying notes to condensed ~~combined~~consolidated financial statements.

March 31,
2018 December 31,
2017
In millions
Assets
Current assets
Cash and cash equivalents $ 836.7
$ 26.9
Accounts and notes receivable, net of allowances of $6.4 and $8.4, respectively 355.2
349.3
Inventories 225.4
224.1
Other current assets 107.4
132.3
Total current assets 1,524.7
732.6
Property, plant and equipment, net 265.1
265.8
Other assets
Goodwill 2,241.3
2,238.2
Intangibles, net 1,220.7
1,236.6
Other non-current assets 49.3
251.8
Total other assets 3,511.3
3,726.6
Total assets $ 5,301.1
$ 4,725.0
Liabilities and Equity
Current liabilities
Accounts payable $ 141.7
$ 174.1
Employee compensation and benefits 60.2
75.5
Other current liabilities 126.8
141.3
Total current liabilities 328.7
390.9
Other liabilities
Long-term debt 793.0
—
Pension and other post-retirement compensation and benefits 188.7
176.7
Deferred tax liabilities 265.0
279.4
Other non-current liabilities 85.5
86.7
Total liabilities 1,660.9
933.7
Equity
Net Parent investment 3,695.7
3,848.4
Accumulated other comprehensive loss (55.5 ) (57.1 )
Total equity 3,640.2
3,791.3
Total liabilities and equity $ 5,301.1
$ 4,725.0


	June 30, 2021		December 31, 2020
In millions, except per-share data
Assets
Current assets
Cash and cash equivalents	$	101.8	$	122.5
Accounts and notes receivable, net of allowances of $5.8 and $6.2, respectively	409.3		313.8
Inventories	275.4		235.2
Other current assets	116.0		92.9
Total current assets	902.5		764.4
Property, plant and equipment, net	291.6		289.4
Other assets
Goodwill	2,193.3		2,098.2
Intangibles, net	1,179.0		1,105.5
Other non-current assets	143.4		108.6

Total other assets	3,515.7		3,312.3
Total assets	$	4,709.8	$	4,366.1
Liabilities and Equity
Current liabilities
Current maturities of long-term debt and short-term borrowings	$	20.0	$	20.0
Accounts payable	219.1		171.1
Employee compensation and benefits	95.3		70.4
Other current liabilities	201.4		188.5

Total current liabilities	535.8		450.0
Other liabilities
Long-term debt	1,083.9		928.0
Pension and other post-retirement compensation and benefits	231.8		237.9
Deferred tax liabilities	231.3		230.1
Other non-current liabilities	134.2		110.3
Total liabilities	2,217.0		1,956.3
Equity

Ordinary shares $0.01 par value, 400.0 authorized, 168.1 and 168.2 issued at June 30, 2021 and December 31, 2020, respectively	1.7		1.7
Additional paid-in capital	2,478.2		2,482.6
Retained earnings	92.3		20.7
Accumulated other comprehensive loss	(79.4)		(95.2)
Total equity	2,492.8		2,409.8
Total liabilities and equity	$	4,709.8	$	4,366.1

See accompanying notes to condensed ~~combined~~consolidated financial statements.

Condensed ~~Combined~~Consolidated Statements of Cash Flows (Unaudited)

Three months ended
In millions March 31,
2018 March 31,
2017
Operating activities
Net income $ 52.3
$ 55.3
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation 9.2
8.7
Amortization 15.4
15.3
Deferred income taxes (0.6 ) (5.5 )
Share-based compensation 2.4
6.2
Changes in assets and liabilities, net of effects of business acquisitions
Accounts and notes receivable (1.3 ) (9.4 )
Inventories 2.0
(9.5 )
Other current assets (8.0 ) (6.8 )
Accounts payable (34.6 ) (6.3 )
Employee compensation and benefits (16.5 ) (8.0 )
Other current liabilities 19.4
28.5
Other non-current assets and liabilities (3.6 ) 18.6
Net cash provided by (used for) operating activities 36.1
87.1
Investing activities
Capital expenditures (5.4 ) (11.3 )
Proceeds from sale of property and equipment 2.3
—
Acquisitions, net of cash acquired (2.0 ) (13.5 )
Net cash provided by (used for) investing activities (5.1 ) (24.8 )
Financing activities
Proceeds from long-term debt 800.0
—
Debt issuance costs (7.5 ) —
Net transfers to Parent (10.0 ) (51.1 )
Net cash provided by (used for) financing activities 782.5
(51.1 )
Effect of exchange rate changes on cash and cash equivalents (3.7 ) (4.7 )
Change in cash and cash equivalents 809.8
6.5
Cash and cash equivalents, beginning of period 26.9
21.5
Cash and cash equivalents, end of period $ 836.7
$ 28.0


	Six months ended
In millions	June 30, 2021		June 30, 2020
Operating activities
Net income	$	131.6	$	44.4


Adjustments to reconcile net income to net cash provided by (used for) operating activities

Depreciation	20.0		19.0
Amortization	31.9		32.0
Deferred income taxes	(0.9)		26.2

Share-based compensation	6.2		6.1





Changes in assets and liabilities, net of effects of business acquisitions
Accounts and notes receivable	(69.2)		31.9
Inventories	(20.5)		(2.9)
Other current assets	(21.2)		10.0
Accounts payable	33.1		(49.3)
Employee compensation and benefits	23.5		(9.4)
Other current liabilities	6.7		(16.5)
Other non-current assets and liabilities	2.1		(1.0)


Net cash provided by (used for) operating activities	143.3		90.5
Investing activities
Capital expenditures	(17.9)		(17.2)
Proceeds from sale of property and equipment	0.1		1.4

Acquisitions, net of cash acquired	(232.6)		(27.0)

Net cash provided by (used for) investing activities	(250.4)		(42.8)
Financing activities


Net receipts of revolving long-term debt	165.4		150.0

Repayments of long-term debt	(10.0)		(7.5)



Dividends paid	(58.8)		(59.5)

Shares issued to employees, net of shares withheld	9.5		2.7
Repurchases of ordinary shares	(20.0)		(3.2)


Net cash provided by (used for) financing activities	86.1		82.5
Effect of exchange rate changes on cash and cash equivalents	0.3		(1.6)
Change in cash and cash equivalents	(20.7)		128.6
Cash and cash equivalents, beginning of period	122.5		106.4
Cash and cash equivalents, end of period	$	101.8	$	235.0

See accompanying notes to condensed ~~combined~~consolidated financial statements.

Condensed ~~Combined~~Consolidated Statements of Changes in Equity (Unaudited)


In millions	Ordinary shares			Additional paid-in capital	Retained earnings		Accumulated other comprehensive loss		Total
	Number	Amount
Balance - December 31, 2020	168.2	$	1.7		$	2,482.6	$	20.7	$	(95.2)	$	2,409.8
Net income	—	—			—		65.4		—		65.4
Other comprehensive income (loss), net of tax	—	—			—		—		22.3		22.3
Dividends declared	—	—			—		(29.4)		—		(29.4)
Share repurchases	(0.9)	0			(20.0)		—		—		(20.0)
Exercise of options, net of shares tendered for payment	0.2	—			4.1		—		—		4.1
Issuance of restricted shares, net of cancellations	0.3	—			—		—		—		0
Shares surrendered by employees to pay taxes	(0.1)	—			(2.0)		—		—		(2.0)
Share-based compensation	—	—			(0.2)		—		—		(0.2)
Balance - March 31, 2021	167.7	$	1.7		$	2,464.5	$	56.7	$	(72.9)	$	2,450.0

Net income	—	—			—		66.2		—		66.2
Other comprehensive income (loss), net of tax	—	—			—		—		(6.5)		(6.5)
Dividends declared	—	—			—		(30.6)		—		(30.6)

Exercise of options, net of shares tendered for payment	0.4	—			7.5		—		—		7.5

Shares surrendered by employees to pay taxes	0	—			(0.2)		—		—		(0.2)
Share-based compensation	—	—			6.4		—		—		6.4
Balance - June 30, 2021	168.1	$	1.7		$	2,478.2	$	92.3	$	(79.4)	$	2,492.8

See accompanying notes to condensed ~~combined~~consolidated financial statements.

Table of Contents

nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)

1.Basis of Presentation and Responsibility for Interim Financial Statements

nVent Electric plc ("nVent," "we," "us," "our" or the "Company") is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. The Company is comprised of ~~three~~3 reporting segments: Enclosures, ~~Thermal Management and~~ Electrical & Fastening ~~Solutions.~~Solutions and Thermal Management.

The Company was incorporated in Ireland on May 30, 2017. Although our jurisdiction of organization is Ireland, we manage our affairs so that we are centrally managed and controlled in the United Kingdom (the "U.K.") and ~~therefore~~ have tax residency in the U.K.

~~Separation from Pentair~~

On April 30, 2018, Pentair plc ("Pentair" or "Parent") completed the separation (the "separation") of its Water business and its Electrical business into two independent, publicly-traded companies. To effect the separation, Pentair distributed to its shareholders one ordinary share of nVent for every ordinary share of Pentair held as of the record date of April 17, 2018. As a result of the distribution, nVent is now an independent publicly-traded company and began "regular way" trading under the symbol "NVT" on the New York Stock Exchange on May 1, 2018.

In connection with the separation, we filed a Registration Statement on Form 10 (as amended, the “Form 10”) with the Securities and Exchange Commission (the “SEC”), which was declared effective on April 9, 2018. The Form 10 included an Information Statement describing the details of the separation and providing information as to our business and management. The final version of the Information Statement was filed with the SEC as Exhibit 99.1 to our Current Report on Form 8-K/A filed with the SEC on April 11, 2018 (the "Information Statement").

Except where indicated, references below to transactions completed by nVent prior to April 30, 2018 refer to transactions completed by or on behalf of the Electrical reporting segment of Pentair that are reflected on the combined financial statements of nVent.

Basis of presentation

The accompanying unaudited condensed ~~combined~~consolidated financial statements of nVent have been prepared following the requirements of the ~~SEC~~Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America ("GAAP") can be condensed or omitted. As these are condensed financial statements, one should also read our combined financial statements and notes thereto for the year ended December 31 2017, which were included in the Information Statement.

We are responsible for the unaudited condensed ~~combined~~consolidated financial statements included in this document. The financial statements include all normal recurring adjustments that are considered necessary for the fair presentation of our financial position ~~results of operations~~ and ~~cash flows~~operating results. As these are condensed financial statements, one should also read our consolidated and combined financial statements and notes thereto, which are included in our Annual Report on Form 10-K for the ~~interim periods presented.~~year ended December 31, 2020.

Revenues, expenses, cash flows, assets and liabilities can and do vary during each quarter of the year. Additionally, in March 2020, the World Health Organization declared novel coronavirus 2019 (“COVID-19”) a pandemic. The effects of the COVID-19 pandemic have had and may continue to have an unfavorable impact on our business. The broader implication of COVID-19 on our results of operations and overall financial performance remains uncertain. We may experience reduced customer demand or constrained supply that could materially adversely impact our business, financial condition, results of operations and overall financial performance in future periods. Therefore, the results and trends in these interim financial statements may not be indicative of those for a full year.

The condensed combined financial statements of nVent have been derived from the consolidated financial statements and records of Pentair as if nVent were operated on a stand-alone basis. The condensed combined financial statements have been prepared in U.S. dollars (“USD”) and in accordance with GAAP.

~~Cost allocations~~

The condensed combined financial statements of nVent include general corporate expenses of Pentair for certain support functions provided on a centralized basis, such as expenses related to executive management, finance, audit, legal, information technology, human resources, communications, facilities and employee benefits and compensation. These general corporate expenses are included in the Condensed Combined Statements of Income and Comprehensive Income within ~~Selling, general and administrative expense~~ ~~and~~ ~~Other expense~~. The amounts allocated were $26.3 million and $17.9 million for the three months ended March 31, 2018 and 2017, respectively, of which $7.7 million and $6.0 million, respectively, were historically recorded to the Electrical segment in Pentair’s consolidated financial statements. These expenses have been allocated to nVent

Table of Contents

nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)

~~on the basis of direct usage when identifiable, with the remainder allocated based on a proportional basis of net sales, headcount or other measures.~~

Pentair maintains self-insurance programs at the corporate level. nVent was a participant in Pentair’s self-insurance program, including general product liability, workers’ compensation and vehicle liability. Liabilities associated with these risks are estimated in part by considering historical claims experience, demographic factors and other actuarial assumptions. The annual cost is allocated to all of the participating businesses using methodologies deemed reasonable by management. All obligations pursuant to these programs have historically been obligations of Pentair. No self-insurance reserves have been allocated to the Company as these reserves represent obligations of Pentair, which are not transferable.

Pentair’s external debt and related interest expense have not been allocated to nVent for any of the periods presented as nVent was not the legal obligor of the debt and no portion of the borrowings was assumed by nVent upon separation.

nVent considers the allocation methodology regarding Pentair’s general corporate expenses to be reasonable for all periods presented. Nevertheless, the condensed combined financial statements of nVent may not reflect the actual expenses that would have been incurred and may not reflect nVent’s combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented. Actual costs that would have been incurred if nVent had been a stand-alone company would depend on multiple factors including organization structure, capital structure and strategic decisions made in various areas, including information technology and infrastructure. Transactions between nVent and Pentair have been included in related party transactions in these unaudited condensed combined financial statements and are considered to be effectively settled at the time the transaction is recorded. The total net effect of the settlement of these transactions is reflected in the Condensed Combined Statements of Cash Flows as a financing activity and in the Condensed Combined Balance Sheets as ~~Net Parent investment. The~~ ~~Net Parent investment~~ represents Pentair’s historical investment in nVent, the net effect of cost allocations from transactions with Pentair, net transfers of cash and assets to Pentair and nVent’s accumulated earnings. See Note 10 for a further description of related party transactions and ~~Net Parent investment~~.

Cash is managed centrally with certain net earnings reinvested locally and working capital requirements met from existing liquid funds. Accordingly, the cash and cash equivalents held by Pentair at the corporate level are not attributed to nVent for any of the periods presented. Only cash amounts specifically attributable to nVent are reflected in the Condensed Combined Balance Sheets. Transfers of cash, both to and from Pentair’s centralized cash management system are reflected as a component of ~~Net Parent investment~~ ~~in the Condensed Combined Balance Sheets and as a financing activity on the Condensed Combined Statements of Cash Flows.~~

nVent’s operations have historically been included in Pentair’s U.S. federal and state income tax returns, and all income taxes have been paid by Pentair. Income tax expense and other income tax related information contained in these condensed combined financial statements are presented on a separate return approach as if nVent filed its own tax returns. Under this approach, the provision for income taxes represents income tax paid or payable (or received or receivable) for the current year plus the change in deferred taxes during the year calculated as if nVent was a stand-alone taxpayer filing hypothetical income tax returns where applicable. Current income tax liabilities are assumed to be immediately settled with Pentair and are relieved through the ~~Net Parent investment~~ ~~account and the~~ ~~Net transfers to Parent~~ ~~in the Condensed Combined Statements of Cash Flows.~~

~~Adoption of new accounting standards~~

On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2017-07, "Retirement Benefits-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." As a result of the adoption, the interest cost, expected return on plan assets and net actuarial gain/loss components of net periodic pension and post-retirement benefit cost have been reclassified from ~~Selling, general and administrative expense~~ to ~~Other expense. Only the service cost component remains in~~ ~~Operating income~~ ~~and will be eligible for capitalization in assets on a prospective basis.~~

~~Table of Contents~~

~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~

The effect of the retrospective presentation change related to the net periodic cost of our defined benefit pension and other post-retirement plans on our Condensed Combined Statements of Income and Comprehensive Income was as follows:

Three months ended
March 31, 2017
In millions Prior to Adoption As Revised Effect of Change
Selling, general and administrative $ 121.5
$ 120.1
$ (1.4 )
Operating income 66.2
67.6
1.4
Other expense —
1.4
1.4

On January 1, 2018, we adopted ASU No. 2016-16, "Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory" using the modified retrospective method. The ASU requires the tax effects of all intra-entity sales of assets other than inventory to be recognized in the period in which the transaction occurs. The adoption resulted in a $174.5 million cumulative-effect adjustment recorded in equity as of the beginning of 2018 that reflects a $201.5 million reduction of non-current prepaid income tax assets, partially offset by the establishment of $27.0 million of deferred tax assets.

On January 1, 2018, we adopted ASU No. 2014-09, "Revenue from Contracts with Customers" and the related amendments ("ASC 606" or "the new revenue standard") using the modified retrospective method. As a result of adoption, the cumulative impact to our beginning equity at January 1, 2018 was $1.8 million. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis.

A majority of our net sales continue to be recognized when products are shipped from our manufacturing facilities or delivery has occurred, depending on terms of the sale. Under the new standard, timing for recognition of certain revenue may be accelerated such that a portionDisaggregation of revenue ~~will be recognized prior to shipment or delivery dependent upon contract-specific terms.~~

The impact of adopting the new standard primarily relates to the accounting for certain custom products manufactured by our Enclosures segment. Previously revenue was recognized for these custom products upon shipment. However, as these products have no alternative use to the Company and we have an enforceable right to payment for our performance completed to date, revenue related to these custom products will now be recognized over time. Additionally, the new revenue standard resulted in reclassifications on the Condensed Combined Balance Sheets related to accounting for sales returns.

The impact of adoption of the new revenue standard on our Condensed Combined Statements of Income and Comprehensive Income and Condensed Combined Balance Sheets for the first quarter of 2018 was not material.

~~Table of Contents~~

~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~

~~The cumulative effect of the changes made to our January 1, 2018 Condensed Combined Balance Sheet from the modified retrospective adoption of ASU 2016-16 and ASU 2014-09 was as follows:~~

Condensed Combined Balance Sheets
In millions Balance at December 31, 2017 Adjustments due to ASU 2016-16 Adjustments due to ASU 2014-09 Balance at January 1, 2018
Assets
Accounts and notes receivable, net $ 349.3
$ —
$ 3.8
$ 353.1
Inventories 224.1
—
(1.8 ) 222.3
Other current assets 132.3
—
1.8
134.1
Other non-current assets 251.8
(174.5 ) —
77.3
Liabilities
Other current liabilities 141.3
—
3.8
145.1
Deferred tax liabilities 279.4
—
0.4
279.8
Equity
Net Parent investment 3,848.4
(174.5 ) 1.8
3,675.7

~~New accounting standards issued but not yet adopted~~

In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, "Leases" ("the new lease standard" or "ASC 842"), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new lease standard requirements are effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and early adoption is permitted. The Company has begun evaluating the new lease standard, including the review and implementation of the necessary changes to our existing processes and systems that will be required to implement this new standard. While we are unable to quantify the impact at this time, we expect the primary impact to our combined financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our combined balance sheets resulting in the recording of right of use assets and lease obligations. We currently do not expect ASC 842 to have a material effect on either our Combined Statements of Income and Comprehensive Income or Combined Statements of Cash Flows. We plan to adopt ASC 842 in the first quarter of 2019.

~~Revenue recognition~~

Revenue is recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those goods or providing services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

When determining whether the customer has obtained control of the goods or services, we consider any future performance obligations. Generally, there is no post-shipment obligation on product sold other than warranty obligations in the normal and ordinary course of business. In the event significant post-shipment obligations were to exist, revenue recognition would be deferred until nVent has substantially accomplished what it must do to be entitled to the benefits represented by the revenues.

~~Performance obligations~~

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, stand-alone selling price is generally readily observable.

~~Table of Contents~~

~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~

Our performance obligations are satisfied at a point in time or over time as work progresses. Revenue from products and services transferred to customers at a point in time accounted for 72.5% and 85.5% of our revenue for the three-month periods ended March 31, 2018 and 2017, respectively. Revenue on these contracts is recognized when obligations under the terms of the contract with our customer are satisfied; generally this occurs with the transfer of control upon shipment.

Revenue from products and services transferred to customers over time accounted for 27.5% and 14.5% of our revenue for the three-month periods ended March 31, 2018 and 2017, respectively. The increase in our revenue recognized on an over time basis in the first three months of 2018 compared to the first three months of 2017 is primarily the result of the impact of the new revenue standard for certain custom products manufactured by our Enclosures segment. Previously, revenue was recognized for these custom products upon shipment. However, as these products have no alternative use to the Company and we have an enforceable right to payment for our performance completed to date, revenue related to these custom products will now be recognized over time.

For the majority of our revenue recognized over time, we use an input measure to determine progress towards completion. Under this method, sales and gross profit are recognized as work is performed generally based on the relationship between the actual costs incurred and the total estimated costs at completion ("the cost-to-cost method") or based on efforts for measuring progress towards completion in situations in which this approach is more representative of the progress on the contract than the cost-to-cost method. Contract costs include labor, material, overhead and, when appropriate, general and administrative expenses. Changes to the original estimates may be required during the life of the contract and such estimates are reviewed on a regular basis. Sales and gross profit are adjusted using the cumulative catch-up method for revisions in estimated total contract costs. These reviews have not resulted in adjustments that were significant to our results of operations. For performance obligations related to long-term contracts, when estimates of total costs to be incurred on a performance obligation exceed total estimates of revenue to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined.

We use an output method to measure progress towards completion for certain of our Enclosures businesses, as this method appropriately depicts performance towards satisfaction of the performance obligation. Under the output method, revenue is recognized based on number of units produced.

On March 31, 2018, we had $77.4 million of remaining performance obligations on contracts with original expected duration of one year or more. We expect to recognize the majority of our remaining performance obligations on these contracts within the next twelve to eighteen months.

The right of return may exist explicitly or implicitly with our customers. Our return policy allows for customer returns only upon our authorization. Goods returned must be product we continue to market and must be in salable condition. When the right of return exists, we adjust the transaction price for the estimated effect of returns. We estimate the expected returns based on historical sales levels, the timing and magnitude of historical sales return levels as a percent of sales, type of product, type of customer and a projection of this experience into the future.

~~Pricing and sales incentives~~

Our sales contracts may give customers the option to purchase additional goods or services priced at a discount. Options to acquire additional goods or services at a discount can come in many forms, such as customer programs and incentive offerings including pricing arrangements, promotions and other volume-based incentives.

We reduce the transaction price for certain customer programs and incentive offerings including pricing arrangements, promotions and other volume-based incentives that represent variable consideration. Sales incentives given to our customers are recorded using either the expected value method or most likely amount approach for estimating the amount of consideration to which nVent shall be entitled. The expected value is the sum of probability-weighted amounts in a range of possible consideration amounts. An expected value is an appropriate estimate of the amount of variable consideration when there are a large number of contracts with similar characteristics. The most likely amount is the single most likely amount in a range of possible consideration amounts (that is, the single most likely outcome of the contract). The most likely amount is an appropriate estimate of the amount of variable consideration if the contract has limited possible outcomes (for example, an entity either achieves a performance bonus or does not).

Pricing is established at or prior to the time of sale with our customers and we record sales at the agreed-upon net selling price. However, certain of our businesses allow customers to apply for a refund of a percentage of the original purchase price if they can demonstrate sales to a qualifying end customer. We use the expected value method to estimate the anticipated refund to be

~~Table of Contents~~

~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~

~~paid based on historical experience and reduce sales for the probable cost of the discount. The cost of these refunds is recorded as a reduction of transaction price.~~

Volume-based incentives involve rebates that are negotiated at or prior to the time of sale with the customer and are redeemable only if the customer achieves a specified cumulative level of sales or sales increase. Under these incentive programs, at the time of sale, we estimate the anticipated rebate to be paid based on forecasted sales levels. These forecasts are updated at least quarterly for each customer and the transaction price is reduced for the anticipated cost of the rebate. If the forecasted sales for a customer changes, the accrual for rebates is adjusted to reflect the new amount of rebates expected to be earned by the customer.

~~Shipping and handling costs~~

~~Amounts billed to customers for shipping and handling activities after the customer obtains control are treated as a promised service performance obligation and recorded in~~ ~~Net sales~~ in the accompanying Condensed Combined Statements of Income and Comprehensive Income. Shipping and handling costs incurred by nVent for the delivery of goods to customers are considered a cost to fulfill the contract and are included in ~~Cost of goods sold~~ ~~in the accompanying Condensed Combined Statements of Income and Comprehensive Income.~~

~~Contract assets and liabilities~~

Contract assets consist of unbilled amounts resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, such as when the customer retains a small portion of the contract price until completion of the contract. We typically receive interim payments on sales under long-term contracts as work progresses, although for some contracts, we may be entitled to receive an advance payment. Contract liabilities consist of advanced payments and billings in excess of costs incurred and deferred revenue.

~~Contract assets are recorded within~~ ~~Other current assets~~ ~~and contract liabilities are recorded within~~ ~~Other current liabilities~~ ~~in the Condensed Combined Balance Sheets.~~

~~Contract assets and liabilities consisted of the following:~~

In millions March 31, 2018 December 31, 2017 $ Change % Change
Contract assets $ 69.8
$ 69.9
$ (0.1 ) (0.1 )%
Contract liabilities 13.7
14.3
(0.6 ) (4.2 )%
Net contract assets (liabilities) $ 56.1
$ 55.6
$ 0.5
0.9 %

The $0.5 million increase in net contract assets from December 31, 2017 to March 31, 2018 was primarily the result of timing of milestone payments. Approximately half of our contract liabilities at December 31, 2017 were recognized in revenue in the first quarter of 2018. There were no impairment losses recognized on our contract assets for the three months ended March 31, 2018.

~~Practical expedients and exemptions~~

We generally expense incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs primarily relate to sales commissions and are recorded in ~~Selling, general and administrative expense~~ ~~in the Condensed Combined Statements of Income and Comprehensive Income.~~

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Further, we do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

~~Revenue by category~~

We disaggregate our revenue from contracts with customers by geographic location and vertical for each of our segments, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

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~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~

Geographic net sales information, ~~by segment,~~ based on geographic destination of the sale, was as follows:


	Three months ended June 30, 2021
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
U.S. and Canada	$	193.0	$	117.4	$	68.3	$	378.7
Developed Europe (1)	78.3		35.0		28.4		141.7
Developing (2)	25.2		12.4		30.3		67.9
Other Developed (3)	3.9		4.4		4.7		13.0
Total	$	300.4	$	169.2	$	131.7	$	601.3

Developed Europe (1)

(1) Developed Europe includes Western Europe and Eastern Europe included in European Union.

(2) Developing includes China, Eastern Europe not included in European Union, Latin America, Middle East and Southeast Asia.

(3) Other Developed includes Australia and Japan.

Three months ended March 31, 2018
In millions Enclosures Thermal Management Electrical & Fastening Solutions Combined
U.S. and Canada $ 172.6
$ 83.1
$ 93.3
$ 349.0
Western Europe 54.3
39.8
27.6
121.7
Developing ⁽¹⁾
24.3
20.1
12.5
56.9
Other Developed ⁽²⁾
2.9
4.9
3.5
11.3
Combined net sales $ 254.1
$ 147.9
$ 136.9
$ 538.9
(1) - Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia.
(2) - Other Developed includes Australia and Japan.

Three months ended March 31, 2017
In millions Enclosures Thermal Management Electrical & Fastening Solutions Combined
U.S. and Canada $ 161.6
$ 77.0
$ 88.5
$ 327.1
Western Europe 40.7 39.7 22.9 103.3
Developing ⁽¹⁾
20.9
25.3
15.9
62.1
Other Developed ⁽²⁾
3.3 3.4 3.0
9.7
Combined net sales $ 226.5
$ 145.4
$ 130.3
$ 502.2
(1) - Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia.
(2) - Other Developed includes Australia and Japan.

~~Vertical net sales information by segment was as follows:~~

Three months ended March 31, 2018
In millions Enclosures Thermal Management Electrical & Fastening Solutions Combined
Industrial $ 157.3
$ 60.7
$ 25.5
$ 243.5
Commercial & Residential 20.5 46.1 79.4 146.0
Energy 27.6 40.0 12.3 79.9
Infrastructure 48.7 1.1 19.7 69.5
Combined net sales $ 254.1
$ 147.9
$ 136.9
$ 538.9

Three months ended March 31, 2017
In millions Enclosures Thermal Management Electrical & Fastening Solutions Combined
Industrial $ 140.2
$ 57.2
$ 23.1
$ 220.5
Commercial & Residential 22.0
37.9
74.6
134.5
Energy 23.9
49.7
14.4
88.0
Infrastructure 40.4
0.6
18.2
59.2
Combined net sales $ 226.5
$ 145.4
$ 130.3
$ 502.2

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nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)

Vertical net sales information was as follows:


	Three months ended June 30, 2021
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	187.6	$	28.6	$	53.9	$	270.1
Commercial & Residential	37.5		82.8		43.7		164.0
Infrastructure	53.0		53.0		5.7		111.7
Energy	22.3		4.8		28.4		55.5
Total	$	300.4	$	169.2	$	131.7	$	601.3


3.	~~Restructuring~~


	Six months ended June 30, 2021
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	359.7	$	53.0	$	104.5	$	517.2
Commercial & Residential	66.1		158.7		88.0		312.8
Infrastructure	108.6		96.6		9.5		214.7
Energy	43.0		8.8		53.7		105.5
Total	$	577.4	$	317.1	$	255.7	$	1,150.2


	Three months ended June 30, 2020
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	133.7	$	21.5	$	35.6	$	190.8
Commercial & Residential	23.7		63.6		32.8		120.1
Infrastructure	46.5		42.9		4.8		94.2
Energy	15.4		4.1		22.6		42.1
Total	$	219.3	$	132.1	$	95.8	$	447.2


	Six months ended June 30, 2020
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	290.2	$	42.5	$	82.2	$	414.9
Commercial & Residential	55.4		136.7		72.5		264.6
Infrastructure	93.6		86.3		8.8		188.7
Energy	38.6		8.5		52.8		99.9
Total	$	477.8	$	274.0	$	216.3	$	968.1

In the first quarter of 2021, we determined that revenue in our power utilities, datacom and renewables sub-verticals was better aligned with the infrastructure vertical based on benchmarking of industry peers and for purposes of how we assess performance, rather than the industrial, commercial & residential and energy verticals, where it was previously reported. For comparability, we have the reclassified revenue for the three and six months ended June 30, 2020 to conform to the new presentation. This reclassification of revenue by vertical had no impact on our consolidated financial results.

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nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

Contract balances

Contract assets and liabilities consisted of the following:


In millions	June 30, 2021		December 31, 2020		$ Change		% Change
Contract assets	$	47.6	$	45.6	$	2.0	4.4	%
Contract liabilities	14.4		11.3		3.1		27.4	%

Net contract assets	$	33.2	$	34.3	$	(1.1)	(3.2	%)

The $1.1 million decrease in net contract assets from December 31, 2020 to June 30, 2021 was primarily the result of timing of milestone payments. The majority of our contract liabilities at December 31, 2020 were recognized in revenue during the six months ended June 30, 2021. There were 0 material impairment losses recognized on our contract assets for the three and six months ended June 30, 2021 and 2020.

Remaining performance obligations

We have elected the practical expedient to disclose only the value of remaining performance obligations for contracts with an original expected length of one year or more. On June 30, 2021, we had $47.9 million of remaining performance obligations on contracts with an original expected duration of one year or more. We expect to recognize the majority of our remaining performance obligations on these contracts within the next 12 to 18 months.

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nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

3.Restructuring

During the ~~three~~six months ended ~~March 31, 2018~~June 30, 2021 and the year ended December 31, ~~2017,~~2020, we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. ~~Initiatives during the three months ended March 31, 2018 and year ended December 31, 2017 included the reduction in hourly and salaried headcount of approximately 25 and 250 employees, respectively.~~

Restructuring related costs included in Selling, general and administrativeexpense in the Condensed ~~Combined~~Consolidated Statements of Income and Comprehensive Income included costs for severance and other restructuring costs as follows:

Three months ended
In millions March 31,
2018 March 31,
2017
Severance and related costs $ 2.8
$ 9.1
Other —
0.2
Total restructuring costs $ 2.8
$ 9.3


	Three months ended				Six months ended
In millions	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Severance and related costs	$	2.5	$	2.7	$	2.7	$	6.2
Other	1.8		0.3		2.4		1.1
Total restructuring costs	$	4.3	$	3.0	$	5.1	$	7.3

Other restructuring costs primarily consist of asset impairment and various contract termination costs.

Restructuring costs by reportable segment were as follows:


	Three months ended				Six months ended
In millions	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Enclosures	$	2.2	$	1.1	$	3.2	$	4.2
Electrical & Fastening Solutions	0.4		0.1		0.6		0.1
Thermal Management	1.1		1.5		1.3		2.6
Other	0.6		0.3		0		0.4
Total	$	4.3	$	3.0	$	5.1	$	7.3

Three months ended
In millions March 31,
2018 March 31,
2017
Enclosures $ 0.3
$ 3.1
Thermal Management 2.1
5.6
Electrical & Fastening Solutions 0.4
0.6
Consolidated $ 2.8
$ 9.3

Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed ~~Combined~~Consolidated Balance Sheets is summarized as ~~follows for the three months ended March 31, 2018:~~follows:


	Six months ended
In millions	June 30, 2021		June 30, 2020
Beginning balance	$	6.6	$	9.5

Costs incurred	2.7		6.2
Cash payments and other	(5.4)		(6.7)
Ending balance	$	3.9	$	9.0

In millions March 31,
2018
Beginning balance $ 5.1
Costs incurred 2.8
Cash payments and other (4.0 )
Ending balance $ 3.9

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nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)


4.	~~Pro Forma Earnings Per Share~~

On April 30, 2018, Pentair completed the separation of its Electrical business, distributing to its shareholders one ordinary share of nVent for every ordinary share of Pentair held as of the record date of April 17, 2018.

~~The computations of basic and diluted earnings per share for periods prior to the separation were calculated using the shares that were distributed to Pentair shareholders upon the separation.~~4.Earnings Per Share

Basic and diluted ~~pro forma~~ earnings per share were calculated as follows:


	Three months ended				Six months ended
In millions, except per-share data	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Net income	$	66.2	$	25.8	$	131.6	$	44.4
Weighted average ordinary shares outstanding
Basic	167.9		169.9		167.8		169.9
Dilutive impact of stock options, restricted stock units and performance share units	1.7		0.5		1.4		0.8
Diluted	169.6		170.4		169.2		170.7
Earnings per ordinary share



Basic earnings per ordinary share	$	0.39	$	0.15	$	0.78	$	0.26



Diluted earnings per ordinary share	$	0.39	$	0.15	$	0.78	$	0.26
Anti-dilutive stock options excluded from the calculation of diluted earnings per share	0.8		4.5		1.0		3.4

5.Acquisitions

On February 10, 2020, we acquired substantially all of the assets of WBT LLC ("WBT") for $29.9 million in cash. The U.S. based WBT business manufactures high-quality cable tray systems and operates within our Electrical & Fastening Solutions segment.

The excess purchase price over tangible net assets and identified intangible assets acquired was allocated to goodwill in the amount of $13.8 million, substantially all of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $11.3 million of definite-lived customer relationships with an estimated useful life of 12 years.

On April 1, 2021, we acquired substantially all of the assets of Vynckier Enclosure Systems, Inc. ("Vynckier") for approximately $27.0 million in cash, subject to purchase price adjustments and holdback arrangements. Vynckier is a U.S. based manufacturer of high-quality non-metallic enclosures that we will market as part of the nVent HOFFMAN product line within our Enclosures segment.

The excess purchase price over tangible net assets and identified intangible assets acquired has been preliminarily allocated to goodwill in the amount of $12.4 million, substantially all of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $6.1 million of definite-lived customer relationships with an estimated useful life of 11 years. The preliminary purchase price allocation is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation.

On June 30, 2021, we acquired CIS Global LLC ("CIS Global") for approximately $203.0 million in cash, subject to purchase price adjustments. The CIS Global business is a leading provider of intelligent rack power distribution and server slides products, and will operate within our Enclosures segment. The purchase price was funded primarily through borrowings under our Revolving Credit Facility (as defined in Note 9).

The excess purchase price over tangible net assets and identified intangible assets acquired has been preliminarily allocated to goodwill in the amount of $84.1 million, of which $32.5 million is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $74.5 million of definite-lived customer relationships with an estimated useful life of 16 years and $24.5 million of developed technology with an estimated useful life of 9 years to 12 years. The preliminary purchase price allocation is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation.

The pro forma impact of these acquisitions is not material individually or in the aggregate.

Three months ended
In millions, except per-share data March 31,
2018 March 31,
2017
Net income $ 52.3
$ 55.3
Weighted average ordinary shares outstanding
Basic 179.0
179.0
Dilutive impact of stock options, restricted stock units and performance share units 2.2
2.2
Diluted 181.2
181.2
Pro forma earnings per ordinary share
Basic
Basic pro forma earnings per ordinary share $ 0.29
$ 0.31
Diluted
Diluted pro forma earnings per ordinary share $ 0.29
$ 0.31
Anti-dilutive stock options excluded from the calculation of diluted earnings per share 0.4
0.4

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nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)

6.Goodwill and Other Identifiable Intangible Assets


5.	~~Goodwill and Other Identifiable Intangible Assets~~

The changes in the carrying amount of goodwill by reportable segment were as follows:


In millions	December 31, 2020		Acquisitions/ divestitures		Foreign currency translation/other		June 30, 2021
Enclosures	$	332.1	96.5		(3.2)		$	425.4
Electrical & Fastening Solutions	1,051.9		0.1		0		1,052.0
Thermal Management	714.2		0		1.7		715.9
Total goodwill	$	2,098.2	$	96.6	$	(1.5)	$	2,193.3

In millions December 31,
2017 Acquisitions/divestitures
Foreign currency
translation/other
March 31,
2018
Enclosures $ 274.8
$ —
$ 2.1
$ 276.9
Thermal Management 927.1
—
(0.9 ) 926.2
Electrical & Fastening Solutions 1,036.3
1.9
—
1,038.2
Total goodwill $ 2,238.2
$ 1.9
$ 1.2
$ 2,241.3

~~In January 2018, we completed an acquisition as part of our Electrical & Fastening Solutions segment with a purchase price of $2.0 million in cash, net of cash acquired.~~

Identifiable intangible assets consisted of the following:


	June 30, 2021						December 31, 2020
In millions	Cost		Accumulated amortization		Net		Cost		Accumulated amortization		Net
Definite-life intangibles
Customer relationships	1,295.9		(421.3)		$	874.6	$	1,214.5	$	(389.6)	$	824.9
Proprietary technology and patents	40.8		(9.5)		31.3		16.3		(8.8)		7.5

Total definite-life intangibles	1,336.7		(430.8)		905.9		1,230.8		(398.4)		832.4
Indefinite-life intangibles
Trade names	273.1		—		273.1		273.1		—		273.1
Total intangibles	$	1,609.8	$	(430.8)	$	1,179.0	$	1,503.9	$	(398.4)	$	1,105.5

March 31,
2018 December 31,
2017
In millions Cost
Accumulated
amortization
Net Cost
Accumulated
amortization
Net
Definite-life intangibles
Customer relationships $ 1,152.1
$ (222.4 ) $ 929.7
$ 1,153.0
$ (207.5 ) $ 945.5
Proprietary technology and patents 14.8
(5.1 ) 9.7
14.6
(4.8 ) 9.8
Total definite-life intangibles 1,166.9
(227.5 ) 939.4
1,167.6
(212.3 ) 955.3
Indefinite-life intangibles
Trade names 281.3
—
281.3
281.3
—
281.3
Total intangibles $ 1,448.2
$ (227.5 ) $ 1,220.7
$ 1,448.9
$ (212.3 ) $ 1,236.6

Identifiable intangible asset amortization expense was ~~$15.4~~$16.0 million ~~and $15.3 million~~ for both the three months ended ~~March 31, 2018~~June 30, 2021 and ~~2017,~~2020, and $31.9 million and $32.0 million for the six months ended June 30, 2021 and 2020, respectively.

Estimated future amortization expense for identifiable intangible assets during the remainder of ~~2018~~2021 and the next five years is as follows:


	Q3-Q4
In millions	2021		2022		2023		2024		2025		2026
Estimated amortization expense	$	35.6	$	71.1	$	70.9	$	70.3	$	70.3	$	70.3

Q2-Q4
In millions 2018 2019 2020 2021 2022 2023
Estimated amortization expense $ 45.5
$ 60.6
$ 60.4
$ 59.3
$ 59.2
$ 59.0

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nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)


6.	~~Supplemental Balance Sheet Information~~

In millions March 31,
2018 December 31,
2017
Inventories
Raw materials and supplies $ 63.0
$ 64.3
Work-in-process 25.4
25.2
Finished goods 137.0
134.6
Total inventories $ 225.4
$ 224.1
Other current assets
Cost in excess of billings $ 69.8
$ 69.9
Prepaid expenses 29.4
29.3
Prepaid income taxes 6.5
31.3
Other current assets 1.7
1.8
Total other current assets $ 107.4
$ 132.3
Property, plant and equipment, net
Land and land improvements $ 39.6
$ 39.1
Buildings and leasehold improvements 173.5
170.2
Machinery and equipment 408.4
402.0
Construction in progress 9.3
11.5
Total property, plant and equipment 630.8
622.8
Accumulated depreciation and amortization 365.7
357.0
Total property, plant and equipment, net $ 265.1
$ 265.8
Other non-current assets
Prepaid income taxes $ —
$ 201.5
Deferred compensation plan assets 23.2
25.1
Other non-current assets 26.1
25.2
Total other non-current assets $ 49.3
$ 251.8
Other current liabilities
Accrued rebates $ 31.4
$ 42.9
Billings in excess of cost 8.9
9.8
Accrued taxes payable 42.6
41.8
Other current liabilities 43.9
46.8
Total other current liabilities $ 126.8
$ 141.3
Other non-current liabilities
Income taxes payable $ 58.5
$ 57.6
Deferred compensation plan liabilities 23.2
25.1
Other non-current liabilities 3.8
4.0
Total other non-current liabilities $ 85.5
$ 86.7
7.Supplemental Balance Sheet Information


In millions	June 30, 2021		December 31, 2020
Inventories
Raw materials and supplies	$	84.2	$	67.3
Work-in-process	30.2		24.4
Finished goods	161.0		143.5
Total inventories	$	275.4	$	235.2
Other current assets
Contract assets	$	47.6	$	45.6
Prepaid expenses	47.1		29.8
Prepaid income taxes	18.6		13.4
Other current assets	2.7		4.1
Total other current assets	$	116.0	$	92.9
Property, plant and equipment, net
Land and land improvements	$	40.6	$	41.0
Buildings and leasehold improvements	185.0		185.5
Machinery and equipment	479.8		461.4
Construction in progress	29.9		30.3
Total property, plant and equipment	735.3		718.2
Accumulated depreciation and amortization	443.7		428.8
Total property, plant and equipment, net	$	291.6	$	289.4
Other non-current assets



Deferred compensation plan assets	$	20.4	$	20.0
Lease right-of-use assets	78.4		45.6
Deferred tax assets	19.8		29.8
Other non-current assets	24.8		13.2
Total other non-current assets	$	143.4	$	108.6
Other current liabilities

Dividends payable	$	30.4	$	29.4

Accrued rebates	55.3		40.5
Contract liabilities	14.4		11.3
Accrued taxes payable	22.1		32.8
Current lease liabilities	18.0		14.2
Other current liabilities	61.2		60.3
Total other current liabilities	$	201.4	$	188.5
Other non-current liabilities

Income taxes payable	$	30.3	$	31.7

Deferred compensation plan liabilities	20.4		20.0
Non-current lease liabilities	64.7		35.7
Other non-current liabilities	18.8		22.9
Total other non-current liabilities	$	134.2	$	110.3

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nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)

8.Derivatives and Financial Instruments


7.	~~Derivatives and Financial Instruments~~

Derivative financial instruments

We are exposed to market risk related to changes in foreign currency exchange rates. To manage the volatility related to this exposure, we periodically enter into a variety of derivative financial instruments. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality.

Foreign currency contracts

We conduct business in various locations throughout the world and are subject to market risk due to changes in the value of foreign currencies in relation to our reporting currency, the U.S. dollar. We manage our economic and transaction exposure to certain market-based risks through the use of foreign currency derivative financial instruments. Our objective in holding these derivatives is to reduce the volatility ofin net earnings and cash flows associated with changes in foreign currency ~~exchange~~ rates. The majority of our foreign currency contracts have an original maturity date of less than one year. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality.

At ~~March 31, 2018~~June 30, 2021 and December 31, ~~2017,~~2020, we had outstanding foreign currency derivative contracts with gross notional U.S. dollar equivalent amounts of ~~$10.8~~$103.6 million and ~~$10.7~~$41.8 million, respectively. The impact of these contracts on the Condensed ~~Combined~~Consolidated Statements of Income and Comprehensive Income was not material for any period presented.

~~Gains or losses on~~

Cross currency swaps

At June 30, 2021 and December 31, 2020, we had outstanding cross currency swap agreements with a combined notional amount of $387.9 million and $329.0 million, respectively. The agreements are accounted for as either cash flow hedges, to hedge foreign currency ~~contracts designated~~fluctuations on certain intercompany debt, or as net investment hedges, ~~are reclassified out of Accumulated Other Comprehensive Loss and into~~ ~~Selling, general and administrativeexpense~~to manage our exposure to fluctuations in the ~~Condensed Combined Statements~~Euro-U.S. Dollar exchange rate. At June 30, 2021 and December 31, 2020, we had deferred foreign currency gains of ~~Income~~$7.2 million and ~~Comprehensive Income when~~$6.9 million, respectively, in Accumulated other comprehensive loss associated with our cross currency swap activity.

Interest rate swaps

We are also exposed to interest rate risk fluctuations in connection with the ~~hedged item affects earnings. Such reclassifications during~~planned issuance of long-term debt. To manage the ~~three months ended March~~volatility related to this exposure, we may use forward starting interest rate swaps to fix a portion of the interest cost associated with anticipated future financings. In 2020, we entered into a forward starting interest rate swap to hedge the variability of cash flows attributable to changes in the benchmark swap interest rate (London Inter-Bank Offer Rate) associated with the anticipated refinancing of the 2023 Notes (as defined below). The interest rate swap contract has a notional amount of $200.0 million and is expected to mature in 2023. The interest rates swaps are accounted for as cash flow hedges since they hedge the risk of an increase in treasury rates for the forecasted interest payments of an anticipated fixed-rate debt issuance. At June 30, 2021 and December 31, ~~2018~~2020, we had deferred gains of $10.8 million and ~~2017 were not material.~~$2.1 million, respectively, in Accumulated other comprehensive loss associated with our interest rate swap activity.

Fair value of financial instruments

The following methods were used to estimate the fair values of each class of financial instruments:

•short-term financial instruments (cash and cash equivalents, accounts and notes receivable, accounts and notes payable and variable-rate debt) — recorded amount approximates fair value because of the short maturity period;

•long-term fixed-rate debt, including current maturities — fair value is based on market quotes available for issuance of debt with similar terms, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance;

•foreign currency contract and interest rate swap agreements — fair values are determined through the use of models that consider various assumptions, including time value, yield curves, as well as other relevant economic measures, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; and

•deferred compensation plan assets (mutual funds, common/collective trusts and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees) — fair value of mutual funds and cash equivalents are based on quoted market prices in active markets that are classified as Level 1 in the valuation hierarchy defined by the

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nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

accounting guidance; fair value of common/collective trusts are valued at net asset value ("NAV"), which is based on ~~observable inputs that are classified as Level 2 in~~ the ~~valuation hierarchy defined~~fair value of underlying securities owned by the ~~accounting guidance.~~fund divided by the number of shares outstanding.

The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows:


	June 30, 2021				December 31, 2020
In millions	Recorded Amount		Fair Value		Recorded Amount		Fair Value
Variable rate debt	$	307.5	$	307.5	$	152.1	$	152.1
Fixed rate debt	800.0		902.4		800.0		915.2
Total debt	$	1,107.5	$	1,209.9	$	952.1	$	1,067.3

March 31,
2018 December 31,
2017
In millions
Recorded
Amount
Fair
Value

Recorded
Amount
Fair
Value
Fixed rate debt $ 800.0
$ 818.0
$ —
$ —
Total debt $ 800.0
$ 818.0
$ —
$ —

Financial assets and liabilities measured at fair value on a recurring ~~and nonrecurring~~ basis were as follows:


	June 30, 2021
In millions	Level 1		Level 2		Level 3		NAV		Total
Foreign currency contract liabilities	$	0	$	(9.4)	$	0	$	0	$	(9.4)
Foreign currency contract assets	0		0.7		0		0		0.7
Interest rate swap assets	0		10.8		0		0		10.8
Deferred compensation plan assets	15.7		0		0		4.7		20.4
Total recurring fair value measurements	$	15.7	$	2.1	$	0	$	4.7	$	22.5


	December 31, 2020
In millions	Level 1		Level 2		Level 3		NAV		Total
Foreign currency contract liabilities	$	0	$	(14.3)	$	0	$	0	$	(14.3)
Foreign currency contract assets	0		0.9		0		0		0.9
Interest rate swap assets	0		2.1		0		0		2.1
Deferred compensation plan assets	15.6		0		0		4.4		20.0
Total recurring fair value measurements	$	15.6	$	(11.3)	$	0	$	4.4	$	8.7

March 31, 2018
In millions Level 1 Level 2 Level 3 Total
Recurring fair value measurements
Deferred compensation plan assets $ 21.3
$ 1.9
$ —
$ 23.2
Total recurring fair value measurements $ 21.3
$ 1.9
$ —
$ 23.2

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nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)

December 31, 2017
In millions Level 1 Level 2 Level 3 Total
Recurring fair value measurements
Foreign currency contract assets $ —
$ 0.7
$ —
$ 0.7
Deferred compensation plan assets 22.9
2.2
—
25.1
Total recurring fair value measurements $ 22.9
$ 2.9
$ —
$ 25.8
Nonrecurring fair value measurements ⁽¹⁾

9.Debt

~~(1)~~

During the fourth quarter of 2017, we completed our annual intangible assets impairment review. As a result, we recorded a pre-tax non-cash impairment charge of $16.4 million. The impairment charge reduced the carrying value of the impacted trade name intangibles to $16.2 million. The fair value of trade names is measured using the relief-from-royalty method. This method assumes the trade name has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from them. This method requires us to estimate the future revenue for the related brands, the appropriate royalty rate and the weighted average cost of capital.


8.	~~Debt~~

Debt and the average interest rates on debt outstanding were as follows:


In millions	Average interest rate at June 30, 2021	Maturity Year	June 30, 2021		December 31, 2020
Revolving credit facility	1.479%	2023	$	200.0	$	34.6
Senior notes - fixed rate	3.950%	2023	300.0		300.0
Senior notes - fixed rate	4.550%	2028	500.0		500.0
Term loan facility	1.479%	2023	107.5		117.5

Unamortized debt issuance costs and discounts	N/A	N/A	(3.6)		(4.1)
Total debt			1,103.9		948.0
Less: Current maturities and short-term borrowings			(20.0)		(20.0)
Long-term debt			$	1,083.9	$	928.0

In millions Average interest rate as of March 31, 2018
Maturity
Year
March 31,
2018 December 31,
2017
Senior notes - fixed rate⁽¹⁾
3.950% 2023 $ 300.0
$ —
Senior notes - fixed rate⁽¹⁾
4.550% 2028 500.0
—
Unamortized debt issuance costs and discounts N/A N/A (7.0 ) —
Long-term debt $ 793.0
$ —
⁽¹⁾Senior notes are fully and unconditionally guaranteed as to payment by nVent Electric plc

Senior notes

In March 2018, nVent Finance S.à r.l. (“nVent Finance” or "Subsidiary Issuer"), a 100-percent owned subsidiary of nVent, issued $300.0 million aggregate principal amount of 3.950% senior notes due 2023 (the "2023 Notes") and $500.0 million aggregate principal amount of 4.550% senior notes due 2028 (the "2028 Notes" and, collectively with the 2023 Notes, the "Notes"). Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 of each ~~year, beginning October 15, 2018.~~year.

The Notes are fully and unconditionally guaranteed as to payment by nVent (the "Parent Company Guarantor"). There are no subsidiaries that guarantee the Notes. The Parent Company Guarantor is a holding company that has no independent assets or operations unrelated to its investments in consolidated subsidiaries. The Subsidiary Issuer is a holding company that has no independent assets or operations unrelated to its investments in consolidated subsidiaries and the issuance of the Notes and other external debt. The Parent Company Guarantor’s principal source of cash flow, including cash flow to make payments on the Notes pursuant to the guarantees, is dividends from its subsidiaries. The Subsidiary Issuer’s principal source of cash flow is interest income from its subsidiaries. None of the subsidiaries of the Parent Company Guarantor or the Subsidiary Issuer is under any direct obligation to pay or otherwise fund amounts due on the Notes or the guarantees, whether in the form of dividends, distributions, loans or other payments. In addition, there may be statutory and regulatory limitations on the payment of dividends from certain subsidiaries of the Parent Company Guarantor or the Subsidiary Issuer. If such subsidiaries are unable to transfer funds to the Parent Company Guarantor or the Subsidiary Issuer and sufficient cash or liquidity is not otherwise available, the Parent Company Guarantor or the Subsidiary Issuer may not be able to make principal and interest payments on their outstanding debt, including the Notes or the guarantees.

The Notes constitute general unsecured senior obligations of the Subsidiary Issuer and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. The guarantees of the Notes by the Parent Company Guarantor constitute general unsecured obligations of the Parent Company Guarantor and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. Subject to certain qualifications and exceptions, the indenture pursuant to which the Notes were issued contains covenants that, among other things, restrict nVent’s, nVent Finance’s and certain subsidiaries’ ability to merge or consolidate with another person, create liens or engage in sale and lease-back transactions.

There are no significant restrictions on the ability of nVent to obtain funds from its subsidiaries by dividend or loan. None of the assets of nVent or its subsidiaries represents restricted net assets pursuant to the guidelines established by the SEC.

Senior credit facilities

In March 2018, nVent Finance entered into a credit agreement with a syndicate of banks providing for a five-year $200.0 million senior unsecured term loan facility (the "Term Loan Facility") and a five-year $600.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility" and, together with the Term Loan Facility, the "Senior Credit Facilities"). We have the option to request to increase the Revolving Credit Facility in an aggregate amount of up to $300.0 million, subject to customary conditions, including the commitment of the participating lenders. ~~The Senior~~Total availability under the Revolving Credit ~~Facilities became effective in April 2018.~~Facility was $400.0 million as of June 30, 2021.

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nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

Our debt agreements contain certain financial covenants, the most restrictive of which are in the Senior Credit Facilities, including that we may not permit (i) the ratio of our consolidated debt (net of our consolidated unrestricted cash in excess of $5.0 million but not to exceed $250.0 million) to our consolidated net income (excluding, among other things, non-cash gains and losses) before interest, taxes, depreciation, amortization and non-cash share-based compensation expense ("EBITDA") on the last day of any period of four consecutive fiscal quarters to exceed 3.75 to 1.00 and (ii) the ratio of our EBITDA to our consolidated interest expense for the same period to be less than 3.00 to 1.00. In addition, subject to certain qualifications and exceptions, the Senior Credit Facilities also contain covenants that, among other things, restrict our ability to create liens, merge or consolidate with another person, make acquisitions and incur subsidiary debt. As of June 30, 2021, we were in compliance with all financial covenants in our debt agreements, and there is no material uncertainty about our ongoing ability to meet those covenants.

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~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~

Debt outstanding, excluding unamortized issuance costs and discounts, at ~~March 31, 2018~~June 30, 2021 matures on a calendar year basis as follows:


	Q3-Q4
In millions	2021		2022		2023		2024		2025		2026		Thereafter		Total
Contractual debt obligation maturities	$	10.0	$	20.0	$	577.5	$	0	$	0	$	0	$	500.0	$	1,107.5

10.Income Taxes

Q2-Q4
In millions 2018 2019 2020 2021 2022 2023 Thereafter Total
Contractual debt obligation maturities $ —
$ —
$ —
$ —
$ —
$ 300.0
$ 500.0
$ 800.0

In April 2018, we drew $200.0 million under the Term Loan Facility. Subsequently, in connection with the separation, we transferred to Pentair all cash in excess of $50.0 million of nVent and its subsidiaries, as consideration for the contribution of the net assets of the Electrical business to nVent by Pentair.


9.	~~Income Taxes~~

The effective income tax rate for the ~~three~~six months ended ~~March 31, 2018~~June 30, 2021 was ~~18.0%~~13.0%, compared to ~~16.3%~~47.6% for ~~2017. The tax rate in any quarter can be affected positively or negatively by adjustments that are required to be reported in~~ the ~~specific quarter of resolution.~~six months ended June 30, 2020. The liability for uncertain tax positions was ~~$24.2~~$15.8 million and ~~$24.6~~$17.1 million at ~~March 31, 2018~~June 30, 2021 and December 31, ~~2017,~~2020, respectively. We record penalties and interest related to unrecognized tax benefits in Provision for income taxes and~~Interest~~ Net interest expense, respectively, on the Condensed ~~Combined~~Consolidated Statements of Income and Comprehensive Income, which is consistent with our past practices.

~~U.S.~~

The 13.0% effective income tax ~~reform~~

~~On December 22, 2017, the Tax Cuts and Jobs Act~~rate reflects a one-time tax benefit of ~~2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited~~$5.2 million related to a ~~corporate~~worthless stock deduction recorded for the six months ended June 30, 2021.

Valuation allowances are recorded to reduce the amount of deferred tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition taxassets in jurisdictions where, based on the ~~mandatory deemed repatriation~~weight of ~~cumulative foreign earnings as of December 31, 2017.~~

~~Given the significance of the Act, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of GAAP in situations when a registrant does not have the necessary~~ information available ~~prepared or analyzed (including computations) in reasonable detail~~ to ~~complete~~us, we determine that it is more likely than not the ~~accounting for certain income~~related tax ~~effects of~~benefits will not be realized. In the ~~Act. SAB 118 allows registrants to record provisional amounts during a one year “measurement period.” The measurement period is deemed to have~~six months ended when the registrant has obtained, prepared and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed.

The Company calculated its best estimate of the impact of the Act in its December 31, 2017 income tax provision in accordance with its understanding of the Act and guidance available as of the date of the filing of the Form 10 andJune 30, 2020, as a result ~~recorded~~of the assessment of the available information, we established a ~~provisional income tax benefit~~valuation allowance of ~~$84.8~~$19.4 million ~~in the fourth quarter of 2017, the period in which the legislation was enacted. The provisional amount related to the remeasurement of~~on certain foreign deferred tax ~~assets~~assets.

11. Shareholders' Equity

Share repurchases

On July 23, 2018, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $500.0 million (the "2018 Authorization"). On February 19, 2019, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $380.0 million (the "2019 Authorization"). The 2018 and ~~liabilities based~~2019 Authorizations expired on July 23, 2021.

During the ~~rates at~~six months ended June 30, 2021, we repurchased 0.9 million of our ordinary shares for $20.0 million under the 2018 Authorization. During the six months ended June 30, 2020, we repurchased 0.2 million of our ordinary shares for $3.2 million under the 2018 Authorization. As of June 30, 2021, we had $525.1 million available for share repurchases under the combined 2018 and 2019 Authorizations, which ~~they are expected~~total $880.0 million.

On May 14, 2021, the Board of Directors authorized the repurchase of our ordinary shares up to ~~reverse in the future was~~ a ~~decrease to income tax expense~~maximum dollar limit of ~~$122.0 million.~~$300.0 million (the "2021 Authorization"). The ~~remeasurement of deferred taxes requires further analysis regarding the state tax impacts~~2021 Authorization began on July 23, 2021 upon expiration of the ~~remeasurement, the impact of the Act on the taxation of executive compensation arrangements, changes to tax capitalization provisions and other aspects of the Act that may impact our tax balances.~~

The amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was an increase to income tax expense of $37.2 million. The determination of the transition tax requires additional analysis regarding the amount and composition of the Company’s historical foreign earnings and foreign tax credit position.

We have not made any additional measurement-period adjustments related to these items during the quarter. However, we are continuing to gather additional information to complete our accounting for these items and expect to complete the analysis required to complete our accounting within the prescribed measurement period.


~~10.~~	~~Related Party Transactions and Net Parent Investment~~

~~Sales to Pentair by nVent were not material for the three months ended March 31,~~ 2018 and ~~2017.~~2019 Authorizations, and expires on July 22, 2024.

Dividends payable

On May 13, 2021, the Board of Directors declared a quarterly cash dividend of $0.175 per ordinary share payable on August 6, 2021, to shareholders of record at the close of business on July 23, 2021. The balance of dividends payable included in Othercurrent liabilities on our Condensed Consolidated Balance Sheets was $30.4 million and $29.4 million at June 30, 2021 and December 31, 2020, respectively.

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nVent Electric plc

Notes to condensed ~~combined~~consolidated financial statements (unaudited)

~~During the historical periods presented, nVent engaged in cash pooling arrangements with related parties managed centrally by the Parent.~~

The Parent’s business model includes a combination of stand-alone and combined business functions between Pentair and nVent, varying by region and country. The condensed combined financial statements of nVent include allocations of these costs between Pentair and nVent. Such allocations are estimates, and also may not represent the cost of such services if performed on a stand-alone basis. See further description of cost allocations in Note 1.

The Condensed Combined Balance Sheets of nVent include certain of the Parent assets and liabilities that are specifically identifiable or otherwise attributable to nVent and will be transferred to nVent upon completion of the separation. Transactions between nVent and the Parent are considered to be effectively settled at the time the transaction is recorded. The net effect of these transactions is included in the Condensed Combined Statements of Cash flows as ~~Net transfers to Parent~~.

~~Net Parent investment~~ in the Condensed Combined Balance Sheets represents the Parent’s historical investment in the Company, the net effect of cost allocations from transactions with the Parent, net transfers of cash and assets to the Parent and nVent’s accumulated earnings.


~~11.~~	~~Benefit Plans~~

We sponsor defined-benefit pension plans and a post-retirement health plan. The defined benefit pension plans cover certain non-U.S. employees and retirees, and the pension benefits are based principally on an employee’s years of service and/or compensation levels near retirement. These plans are accounted for as defined benefit pension plans for purposes of the condensed combined financial statements. Accordingly, the funded position of these plans and the related expense are recorded in the condensed combined financial statements. The unfunded post-retirement health plan covers certain U.S. employees and retirees and provides a fixed monthly dollar credit for retiree health care expenses. The benefit obligation and related expense for this plan are included in the condensed combined financial statements.

~~Components of net periodic benefit cost for our pension plans for the three months ended March 31, 2018 and 2017 were as follows:~~

Three months ended
In millions March 31,
2018 March 31,
2017
Service cost $ 1.5
$ 1.4
Interest cost 1.1
0.9
Expected return on plan assets (0.4 ) (0.3 )
Net periodic benefit cost $ 2.2
$ 2.0
12.Segment Information

As described in Note 1. Basis of Presentation and Responsibility of Interim Financial Statements, during the first quarter of 2018, the Company adopted ASU 2017-07. As a result, service costs are classified as employee compensation costs within ~~Cost of goods sold~~ ~~and~~ ~~Selling, general and administrative expense~~ ~~within the Condensed Combined Statements of Income and Comprehensive Income. All other components of net periodic benefit cost are classified within~~ ~~Other expense~~ ~~for the periods presented.~~

~~Components of net periodic benefit cost for our other post-retirement plan for the three months ended March 31, 2018 and 2017 were not material.~~

Certain Company employees participate in defined benefit pension plans and post-retirement health plans sponsored by Pentair ("Shared Plans"), which also include other Pentair participants. For purposes of these condensed combined financial statements, the Company accounts for the Shared Plans as multi-employer benefit plans. Accordingly, the Company does not record an asset or liability to recognize the funded status of the Shared Plans. However, the Company does record expense attributable to its employees who participate in the Shared Plans, as well as expense allocated for Pentair’s corporate and shared functional employees. The total expense was $0.7 million and $1.8 million for the three months ended March 31, 2018 and 2017, respectively. nVent did not assume any benefit obligation of the Shared Plans as a result of the separation.

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~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~


~~12.~~	~~Share Plans~~

Prior to the separation on April 30, 2018, the Company's employees participated in stock-based compensation plans sponsored by Pentair. The share-based compensation expense recorded by the Company includes the expenses associated with employees historically attributable to the Company’s operations. Additionally, a portion of share-based compensation expense for Pentair’s corporate and shared functional employees has been allocated to the Company’s financial statements. Total share-based compensation expense, including allocated expense for Pentair’s corporate and shared functional employees, for the three months ended March 31, 2018 and 2017 were as follows:

Three months ended
In millions March 31,
2018 March 31,
2017
Restricted stock units $ 1.1
$ 2.0
Stock options 0.5
1.8
Performance share units 0.8
2.4
Total share-based compensation expense $ 2.4
$ 6.2

~~In April 2018, in connection with the separation, the Company's Board of Directors approved the 2018 Omnibus Incentive Plan under which the Company can issue equity awards in the future.~~


~~13.~~	~~Segment Information~~

We evaluate performance based on net sales and segment income ~~(loss)~~ and use a variety of ratios to measure performance of our reporting segments. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Segment income ~~(loss)~~ represents operating income exclusive of intangible amortization, ~~certain~~ acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items.

Financial information by reportable segment is as follows:


	Three months ended				Six months ended
In millions	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Net sales
Enclosures	$	300.4	$	219.3	$	577.4	$	477.8
Electrical & Fastening Solutions	169.2		132.1		317.1		274.0
Thermal Management	131.7		95.8		255.7		216.3
Total	$	601.3	$	447.2	$	1,150.2	$	968.1
Segment income (loss)
Enclosures	$	53.7	$	28.2	$	102.5	$	69.1
Electrical & Fastening Solutions	48.9		34.7		88.1		68.2
Thermal Management	24.9		14.4		45.9		34.7
Other	(17.3)		(9.0)		(29.2)		(22.2)
Total	$	110.2	$	68.3	$	207.3	$	149.8

Three months ended
In millions March 31,
2018 March 31,
2017
Net sales
Enclosures $ 254.1
$ 226.5
Thermal Management 147.9
145.4
Electrical & Fastening Solutions 136.9
130.3
Combined $ 538.9
$ 502.2
Segment income (loss)
Enclosures $ 40.6
$ 40.3
Thermal Management 33.5
26.0
Electrical & Fastening Solutions 31.7
31.7
Other (12.3 ) (5.8 )
Combined $ 93.5
$ 92.2

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~~nVent Electric plc~~

~~Notes to condensed combined financial statements (unaudited)~~

The following table presents a reconciliation of segment income to income before income taxes:


	Three months ended				Six months ended
In millions	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Segment income	$	110.2	$	68.3	$	207.3	$	149.8


Intangible amortization	(16.0)		(16.0)		(31.9)		(32.0)
Restructuring and other	(4.3)		(6.2)		(5.1)		(10.5)
Acquisition transaction and integration costs	(1.6)		(0.8)		(1.6)		(1.7)
Net interest expense	(8.1)		(9.4)		(16.2)		(19.3)

Other expense	(0.6)		(0.7)		(1.2)		(1.5)


Income before income taxes	$	79.6	$	35.2	$	151.3	$	84.8

13. Commitments and Contingencies

Three months ended
In millions March 31,
2018 March 31,
2017
Segment income $ 93.5
$ 92.2
Restructuring and other (2.8 ) (9.3 )
Intangible amortization (15.4 ) (15.3 )
Other expense (1.2 ) (1.4 )
Separation costs (9.7 ) —
Net interest expense (0.6 ) (0.1 )
Income before income taxes $ 63.8
$ 66.1


~~14.~~	~~Commitments and Contingencies~~

Warranties and guarantees

In connection with the disposition of our businesses or product lines, we may agree to indemnify purchasers for various potential liabilities relating to the sold business, such as pre-closing tax, product liability, warranty, environmental, or other obligations. The subject matter, amounts and duration of any such indemnification obligations vary for each type of liability indemnified and may vary widely from transaction to transaction.

Generally, the maximum obligation under such indemnifications is not explicitly stated and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows.

We recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee.

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nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

We provide service and warranty policies on our products. Liability under service and warranty policies is based upon a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience warrant. Our liability for service and product warranties as of ~~March 31, 2018~~June 30, 2021 and December 31, ~~2017~~2020 was ~~not~~0t material.

Stand-by letters of credit, bank guarantees and bonds

In disposing of assets or businesses, we often provide representations, warranties and indemnities to cover various risks including unknown damage to the assets, environmental risks involved in the sale of real estate, liability to investigate and remediate environmental contamination at waste disposal sites and manufacturing facilities and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not have the ability to reasonably estimate the potential liability due to the inchoate and unknown nature of these potential liabilities. However, we have no reason to believe that these uncertainties would have a material adverse effect on our financial position, results of operations or cash flows.

In the ordinary course of business, we are required to commit to bonds, letters of credit and bank guarantees that require payments to our customers for any non-performance. The outstanding face value of these instruments fluctuates with the value of our projects in process and in our backlog. In addition, we issue financial stand-by letters of credit primarily to secure our performance to third parties under self-insurance programs.

As of ~~March 31, 2018~~June 30, 2021 and December 31, ~~2017,~~2020, the outstanding value of bonds, letters of credit and bank guarantees totaled ~~$68.9~~$46.9 million and ~~$72.3~~$43.8 million, respectively.

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~~ITEM 2.~~	~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking Statements

This report contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "targets," "plans," "believes," "expects," "intends," "will," "likely," "may," "anticipates," "estimates," "projects," "forecasts," "should," "would," "positioned," "strategy," ~~"future"~~"future," "are confident," or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include ~~the ability to realize the anticipated benefits from the separation (as defined below);~~ adverse effects on ~~the~~our business operations or financial results, ~~and the market price of our shares as a result of the consummation of the separation; unanticipated transaction expenses, such as litigation or legal settlement expenses; changes in tax laws;~~including due to the impact of the ~~separation on our employees, customers~~novel coronavirus 2019 ("COVID-19") pandemic and ~~suppliers;~~potential impairment of goodwill and trade names; overall global economic and business conditions impacting our ~~businesses; future opportunities that our board may determine present greater potential to increase shareholder value; the ability of our businesses to operate independently following the separation;~~business; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions; competition and pricing pressures in the markets we ~~serve;~~serve, including the ~~strength~~impacts of ~~housing and related markets;~~tariffs; volatility in currency exchange rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; inability to mitigate material and other cost inflation; increased risks associated with operating foreign businesses; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission (the "SEC"), including this Quarterly Report on Form 10-Q and ~~the Information Statement filed as exhibit 99.1 to~~ITEM 1A. of our ~~Current~~Annual Report on Form ~~8-K/A, filed with~~10-K for the ~~SEC on April 11, 2018 (the "Information Statement").~~year ended December 31, 2020. All forward-looking statements speak only as of the date of this report. nVent Electric plc assumes no obligation, and disclaims any obligation, to update the information contained in this report.

Overview

The terms "us," ~~"we" "our"~~"we," "our," "the Company" or "nVent" refer to nVent Electric plc. nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation.

We operate across three segments: Enclosures, Thermal Management, and Electrical & Fastening Solutions, which represented approximately 47%, 28% and 25% of total revenues during the first three months of 2018, respectively. We classify our operations into business segments based primarily on types of products offered and markets ~~served:~~served. We operate across three segments: Enclosures, Electrical & Fastening Solutions and Thermal Management, which represented approximately 50%, 28% and 22% of total revenues during the first six months of 2021, respectively.

•Enclosures—The Enclosures segment provides ~~inventive~~innovative solutions ~~that protect,~~to connect and ~~manage~~

~~heat in~~protect critical controls systems, electronics, ~~communication, control,~~data and ~~power~~electrical equipment. From metallic and non-metallic enclosures to cabinets, subracks and backplanes, it offers the physical infrastructure to host, connect and protect server and network equipment, as well as indoor and outdoor protection for ~~broadband voice, data,~~test and ~~video surveillance~~measurement and aerospace and defense applications in industrial, infrastructure, commercial and energy verticals.

•Electrical & Fastening Solutions—The Electrical & Fastening Solutions segment provides solutions that connect and protect electrical and mechanical systems and civil structures. Its engineered electrical and fastening products are innovative, cost efficient and time saving connections that are used across a wide range of verticals, including commercial, infrastructure, industrial and energy.

•Thermal Management—The Thermal Management segment provides electric thermal solutions that connect and protect critical buildings, infrastructure, industrial processes and people. Its thermal management systems include heat tracing, floor heating, fire-rated and specialty wiring, sensing and snow melting and de-icing solutions for use in industrial, ~~energy,~~ commercial & residential, energy and infrastructure verticals. Its highly reliable and easy to install solutions lower total cost of ownership to building owners, facility managers, operators and end users.

~~Electrical & Fastening Solutions~~—On February 10, 2020, we acquired substantially all of the assets of WBT LLC ("WBT") for $29.9 million in cash. The U.S. based WBT business manufactures high-quality cable tray systems and operates within our Electrical & Fastening Solutions ~~segment provides fastening solutions that connect and protect electrical and mechanical systems and civil structures. Its engineered electrical and fastening products are used across a wide range~~segment.

Table of ~~verticals, including commercial, industrial, infrastructure, and energy.~~Contents

On April 30, 2018, Pentair plc ("Pentair" or "Parent") completed the separation (the "separation") of its Water business and its Electrical business into two independent, publicly-traded companies. To effect the separation, Pentair distributed to its shareholders one ordinary share of nVent for every ordinary share of Pentair held as1, 2021, we acquired substantially all of the ~~record date~~assets of ~~April 17, 2018.~~Vynckier Enclosure Systems, Inc. ("Vynckier") for approximately $27.0 million in cash, subject to purchase price adjustments and holdback arrangements. The U.S. based Vynckier business manufactures high-quality non-metallic enclosures that we will market as part of the nVent HOFFMAN product line within our Enclosures segment.

On June 30, 2021, we acquired CIS Global LLC ("CIS Global") for approximately $203.8 million in cash, subject to purchase price adjustments. The CIS Global business is a leading provider of intelligent rack power distribution and server slides products, and will operate within our Enclosures segment.

COVID-19 Update

In March 2020, the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic has resulted, and is likely to continue to result, in significant economic disruption and has adversely affected, and may continue to adversely affect, our business. Governments around the world have implemented measures to help control the spread of the virus, includingbusiness curtailments and shutdowns, isolating residents to their places of residence and restricting travel. The effects of the COVID-19 pandemic have had and may continue to have an unfavorable impact on our business.

Beginning in March 2020, we experienced significant reductions in customer demand in several end-markets across our business segments. However, economic activity in many of the end-markets in which we operate began to stabilize and recover in the second half of 2020, and continued to increase in the first and second quarters of 2021. Our organic sales have increased sequentially in each of the last four quarters beginning with the third quarter of 2020.

In response to the adverse effects of the pandemic, we executed a number of temporary cash and cost-savings measures, which were largely implemented in 2020. As our business has seen continuous, sequential improvement in our financial results and improved outlook for many end-markets since the third quarter of 2020, we have eliminated certain of the temporary cash and cost savings measures put in place.

While our facilities have remained operational during the first half of 2021, we continue to experience various degrees of manufacturing cost pressures and inefficiencies as a result of supply chain issues and increased demand. Although we regularly monitor the ~~distribution, nVent is now an independent publicly-traded company~~financial health and ~~began regular way trading under~~operations of companies in our supply chain, and use alternative suppliers when necessary and available, financial hardship or government restrictions on our suppliers or sub-suppliers caused by the ~~symbol "NVT" on~~COVID-19 pandemic could cause a disruption in our ability to obtain raw materials or components required to manufacture our products and adversely affect our operations. Further, as the ~~New York Stock Exchange on May 1, 2018.~~COVID-19 conditions have improved and economic activity has increased, we have experienced supply chain challenges, including increased lead times, as well as inflation of raw materials, logistics and labor costs due to availability constraints and high demand. We expect the inflationary trends to continue throughout the remainder of 2021.

~~The Company was incorporated~~

We continue to actively monitor the impacts of the pandemic and global efforts to respond to it, and may take further actions that alter our business operations as may be required by governments in ~~Ireland on May 30, 2017. Although our jurisdiction of organization is Ireland,~~the jurisdictions where we ~~manage our affairs so~~operate, or that we determine are ~~centrally managed and controlled~~ in the ~~United Kingdom (the "U.K.")~~best interests of our employees, customers, suppliers and ~~therefore have tax residency in the U.K.~~shareholders.

Key Trends and Uncertainties Regarding our Existing Business

The following trends and uncertainties affected our financial performance in ~~2017~~2020 and the first ~~three~~six months of ~~2018~~2021 and will likely impact our results in the future:

•There are many uncertainties regarding the COVID-19 pandemic, including the anticipated duration and severity of the pandemic and the extent of worldwide social, political and economic disruption it may cause. The magnitude of the impact of the pandemic on our financial condition, liquidity and results of operations cannot be determined at this time, and ultimately will be affected by a number of evolving factors including the length of time that the pandemic continues, rates of vaccinations, the pandemic's effect on the demand for our products and services and the supply chain, as well as the impact of governmental regulations imposed in response to the pandemic including potential business curtailments and shutdowns impacting our factories.

•We have identified specific product, vertical and geographic ~~market~~ opportunities that we find attractive and continue to pursue, both within and outside the U.S. We are ~~reinforcing~~positioning our businesses to more effectively address these opportunities through research and development and through additional sales and marketing resources. Unless we successfully penetrate these markets, our ~~core~~organic sales growth will likely be limited or may decline.

Table of Contents

•During the first half of 2021, we experienced supply chain challenges, including increased lead times, and inflationary increases of raw materials, logistics and labor costs due to availability constraints and high demand. While we have ~~experienced material~~taken pricing actions and ~~other cost inflation. We~~we strive for productivity improvements that could help offset these cost increases, we expect supply chain pressures and ~~we implement~~inflationary cost increases ~~in selling prices~~ to ~~help mitigate this inflation. We expect~~continue for the ~~current economic environment will result in continuing price volatility for many~~remainder of 2021 and could negatively impact our ~~raw materials, and we are uncertain as to the timing and impact~~results of ~~these market changes.~~operations.

•During ~~2017~~2020 and the first ~~three~~six months of ~~2018,~~2021, we continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and ~~began~~ realigning our ~~business in contemplation of the separation. We expect that these actions will contribute to margin growth in 2018.~~business.

In ~~2018,~~2021, our operating objectives include the following:

•Executing our social responsibility strategy focused on People, Products and Planet;

•Enhancing and supporting employee engagement and development;

•Achieving differentiated revenue growth through new products and solutions and ~~market~~ expansion in higher growth verticals and key developing regions;

•Optimizing our technological capabilities to increasingly generate innovative new and connected products and advance digital transformation;

•Driving operating excellence through lean enterprise initiatives, with specific focus on sourcing and supply management, cash flow management and lean operations;

•Optimizing ~~our technological capabilities~~working capital through inventory reduction initiatives across business segments and focused actions to ~~increasingly generate innovative new~~optimize customer and ~~connected products;~~vendor payment terms; and

~~Focusing on developing global talent in light~~•Deploying capital strategically to drive growth and value creation.

Table of ~~our global presence.~~Contents

nVent's historical condensed combined financial statements have been prepared on a stand-alone basis and are derived from Pentair's consolidated financial statements and accounting records. Therefore, these financial statements reflect, in conformity with accounting principles generally accepted in the U.S. ("GAAP"), nVent's financial position, results of operations, comprehensive income and cash flows as the business was historically operated as part of Pentair prior to the separation.

The combined financial statements of nVent include general corporate expenses of Pentair for certain support functions that are provided on a centralized basis, such as expenses related to executive management, finance, audit, legal, information technology, human resources, communications, facilities and employee benefits and compensation. These general corporate expenses are included in the Condensed Combined Statements of Income and Comprehensive Income within ~~Selling, general and administrative expense~~ ~~and~~ ~~Other expense~~. These expenses have been allocated to nVent on the basis of direct usage when identifiable, with the remainder allocated based on a proportional basis of net sales, headcount or other measures. nVent considers the allocation methodology regarding Pentair’s general corporate expenses to be reasonable for all periods presented. Nevertheless, the condensed combined financial statements of nVent may not reflect the actual expenses that would have been incurred and may not reflect nVent’s condensed combined results of operations, financial position and cash flows had it been a stand-alone company during the periods presented.

CONSOLIDATED RESULTS OF OPERATIONS

The consolidated results of operations for the three months ended ~~March 31, 2018~~June 30, 2021 and ~~2017~~2020 were as follows:

Three months ended
In millions March 31,
2018 March 31,
2017
$
change
% / point
change
Net sales $ 538.9
$ 502.2
$ 36.7
7.3 %
Cost of goods sold 330.0
303.5
26.5
8.7 %
Gross profit 208.9
198.7
10.2
5.1 %
      % of net sales
38.8 % 39.6 % (0.8 ) pts

Selling, general and administrative 131.9
120.1
11.8
9.8 %
      % of net sales
24.5 % 23.9 % 0.6 pts
Research and development 11.4
11.0
0.4
3.6 %
      % of net sales 2.1 % 2.2 % (0.1 ) pts

Operating income 65.6
67.6
(2.0 ) (3.0 )%
      % of net sales 12.2 % 13.5 % (1.3 ) pts

Net interest expense 0.6
0.1
0.5
N.M.
Other expense 1.2
1.4
(0.2 ) N.M.

Income before income taxes 63.8
66.1
(2.3 ) (3.5 )%
Provision for income taxes 11.5
10.8
0.7
6.5 %
      Effective tax rate 18.0 % 16.3 % 1.7 pts


	Three months ended
In millions	June 30, 2021			June 30, 2020			$ change		% / point change
Net sales	$	601.3		$	447.2		$	154.1	34.5	%
Cost of goods sold	366.1			286.9			79.2		27.6	%
Gross profit	235.2			160.3			74.9		46.7	%
% of net sales	39.1		%	35.8		%			3.3	pts

Selling, general and administrative	135.2			104.3			30.9		29.6	%
% of net sales	22.5		%	23.3		%			(0.8	pts)
Research and development	11.7			10.7			1.0		9.3	%
% of net sales	1.9		%	2.4		%			(0.5	pts)




Operating income	88.3			45.3			43.0		94.9	%
% of net sales	14.7		%	10.1		%			4.6	pts




Net interest expense	8.1			9.4			(1.3)		N.M.
Other expense	0.6			0.7			(0.1)		N.M.

Income before income taxes	79.6			35.2			44.4		126.1	%
Provision for income taxes	13.4			9.4			4.0		42.6	%
Effective tax rate	16.8		%	26.7		%			(9.9	pts)

N.M. Not Meaningful

Table of Contents

The consolidated results of operations for the six months ended June 30, 2021 and 2020 were as follows:


	Six months ended
In millions	June 30, 2021			June 30, 2020			$ change		% / point change
Net sales	$	1,150.2		$	968.1		$	182.1	18.8	%
Cost of goods sold	706.0			612.5			93.5		15.3	%
Gross profit	444.2			355.6			88.6		24.9	%
% of net sales	38.6		%	36.7		%			1.9	pts

Selling, general and administrative	252.4			227.4			25.0		11.0	%
% of net sales	21.9		%	23.5		%			(1.6	pts)
Research and development	23.1			22.6			0.5		2.2	%
% of net sales	2.0		%	2.3		%			(0.3	pts)




Operating income	168.7			105.6			63.1		59.8	%
% of net sales	14.7		%	10.9		%			3.8	pts




Net interest expense	16.2			19.3			(3.1)		N.M.
Other expense	1.2			1.5			(0.3)		N.M.

Income before income taxes	151.3			84.8			66.5		78.4	%
Provision for income taxes	19.7			40.4			(20.7)		(51.2	%)
Effective tax rate	13.0		%	47.6		%			(34.6	pts)

N.M. Not Meaningful

Net sales

The components of the ~~combined~~change in consolidated net sales ~~change~~ from the prior period were as follows:



	~~Three months ended March 31, 2018~~
	~~over the prior year period~~
~~Volume~~	~~2.5~~	%
~~Price~~	~~0.6~~
~~Organic growth~~	~~3.1~~
~~Currency~~	~~4.2~~
~~Total~~	~~7.3~~	%


	Three months ended June 30, 2021		Six months ended June 30, 2021
	over the prior year period		over the prior year period
Volume	23.2	%	11.0	%
Price	5.7		3.4
Organic growth	28.9		14.4
Acquisition	0.9		0.6
Currency	4.7		3.8
Total	34.5	%	18.8	%

The ~~7.3~~34.5 and 18.8 percentage point ~~increase~~increases in net sales in the second quarter and first ~~quarter~~half of ~~2018~~2021 from ~~2017 was~~2020, respectively, were primarily the result of:

•organic sales growth contribution of approximately 15.0% and 8.5% from our industrial business in the second quarter and first half of 2021 from 2020, respectively, approximately 8.5% and 4.0% from our commercial & residential business in the second quarter and first half of 2021 from 2020, respectively, and approximately 3.5% and 2.0% from our infrastructure business in the second quarter and first half of 2021 from 2020, respectively, which includes selective increases in selling prices; and

•favorable foreign currency ~~effects;~~effects.

Table of Contents

Gross profit

The 3.3 and 1.9 percentage point increases in gross profit as a percentage of net sales in the second quarter and first half of 2021 from 2020, respectively, were primarily the result of:

~~organic~~•increased sales ~~growth~~volume resulting in increased leverage on fixed expenses in cost of ~~approximately 2.5%~~goods sold;

•selective increases in selling prices to mitigate inflationary cost increases; and

•savings generated from our ~~industrial business~~lean and ~~approximately 1.5% in our infrastructure business.~~supply management practices.

These increases were partially offset by:

~~slowdown in capital spending impacting the energy business, driving lower organic sales of approximately 2.5%.~~

~~Gross profit~~

~~The 0.8 percentage point decrease in gross profit as a percentage of sales in the first quarter of 2018 from 2017 was primarily the result of:~~

•inflationary increases related to certain raw materials, labor and ~~labor costs; and~~

higher cost of sales due to manufacturing footprint rationalization and a new U.S. distribution center. We expect these investments will result in increased productivity and operating leverage in future periods.

~~These decreases were partially offset by:~~

~~organic sales growth in our industrial and infrastructure businesses; and~~

~~favorable mix as a result of the decline in lower margin project sales and growth in higher margin product sales.~~freight costs.

Selling, general and administrative ("SG&A")

The ~~0.6~~0.8 and 1.6 percentage point ~~increase~~decreases in SG&A expense as a percentage of net sales in the second quarter and first ~~quarter~~half of ~~2018~~2021 from ~~2017 was~~2020, respectively, were primarily the result of:

~~$9.7 million of non-recurring separation costs incurred~~•increased sales volume resulting in ~~the first quarter of 2018 to prepare nVent to operate as an independent stand-alone public company, primarily related to legal, advisory~~increased leverage on fixed operating expenses; and

•savings generated from restructuring and other ~~professional fees; and~~

~~lower organic sales in our energy business, which resulted in decreased leverage on operating expenses.~~lean initiatives.

These ~~increases~~decreases were partially offset by:

~~organic sales growth in~~•inflationary increases impacting our ~~industrial and infrastructure businesses, which resulted in increased leverage on operating expenses; and~~labor costs compared to 2020;

~~restructuring costs of $2.8 million~~•temporary actions taken in the ~~first~~second quarter of ~~2018,~~2020 to lower costs in response to the adverse effects of the COVID-19 pandemic, including reducing labor costs and limiting discretionary spending for purchased services and travel; and

•higher employee incentive compensation expense compared to ~~$9.3 million in the first quarter of 2017.~~2020.

Provision for income taxes

The ~~1.7 percentage point increase~~differences in the effective tax ~~rate~~rates in the second quarter and first ~~quarter~~half of ~~2018~~2021 from ~~2017 was~~2020 were primarily the result of:

•a $19.4 million non-cash charge related to the ~~favorable impact~~establishment of ~~discrete items that occurred during~~a valuation allowance on certain foreign deferred tax assets recorded in the first ~~quarter~~half of ~~2017 that did not recur~~2020; and

•a $5.2 million one-time benefit recorded in the ~~current period.~~first half of 2021 to reflect an anticipated worthless stock deduction on an investment in a foreign subsidiary.

~~This increase was partially offset by:~~

•~~the mix of global earnings toward lower tax jurisdictions.~~

SEGMENT RESULTS OF OPERATIONS

The summary that follows provides a discussion of the results of operations of each of our three reportable segments (Enclosures, ~~Thermal Management and~~ Electrical & Fastening ~~Solutions)~~Solutions and Thermal Management). Each of these segments comprises various product offerings that serve ~~various verticals and~~multiple end users.

We evaluate performance based on sales and segment income and use a variety of ratios to measure performance of our reporting segments. Segment income represents operating income (loss) exclusive of intangible amortization, ~~certain~~ acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items.

Enclosures

The net sales, segment income and segment income as a percentage of net sales for ~~the~~ Enclosures ~~segment~~ were as follows:


	Three months ended								Six months ended
In millions	June 30, 2021			June 30, 2020			% / point change		June 30, 2021			June 30, 2020			% / point change
Net sales	$	300.4		$	219.3		37.0	%	$	577.4		$	477.8		20.8	%
Segment income	53.7			28.2			90.4	%	102.5			69.1			48.3	%
% of net sales	17.9		%	12.9		%	5.0	pts	17.8		%	14.5		%	3.3	pts

Three months ended
In millions March 31,
2018 March 31,
2017 % / point change
Net sales $ 254.1
$ 226.5
12.2 %
Segment income 40.6
40.3
0.7 %
% of net sales 16.0 % 17.8 % (1.8 ) pts

Table of Contents

Net sales

The components of the change in ~~the~~ Enclosures ~~segment~~ net sales from the prior period were as follows:



	~~Three months ended March 31, 2018~~
	~~over the prior year period~~
~~Volume~~	~~9.5~~	%
~~Price~~	~~(0.6~~	)
~~Organic growth~~	~~8.9~~
~~Currency~~	~~3.3~~
~~Total~~	~~12.2~~	%


	Three months ended June 30, 2021		Six months ended June 30, 2021
	over the prior year period		over the prior year period
Volume	24.8	%	12.9	%
Price	6.4		3.8
Organic growth	31.2		16.7
Acquisition	1.7		0.8
Currency	4.1		3.3
Total	37.0	%	20.8	%

The ~~12.2 percent increase~~37.0 and 20.8 percentage point increases in Enclosures net sales in the second quarter and first ~~quarter~~half of ~~2018~~2021 from ~~2017 was~~2020, respectively, were primarily the result of:

•organic sales growth contribution of approximately ~~5.5% in~~20.5% and 12.0% from our industrial business in the second quarter and first half of 2021 from 2020, respectively, approximately 6.0% and 2.0% from our commercial & residential business in the second quarter and first half of 2021 from 2020, respectively, and approximately ~~3.0% in~~2.0% and 2.5% from our infrastructure business ~~primarily within~~in the ~~U.S.~~second quarter and ~~Western Europe;~~first half of 2021 from 2020, respectively, which includes selective increases in selling prices; and

•favorable foreign currency effects.

Segment income

The components of the change in ~~the~~ Enclosures segment income as a percentage of net sales from the prior period were as follows:



	~~Three months ended March 31, 2018~~
	~~over the prior year period~~
~~Growth~~	~~2.7~~	~~pts~~
~~Inflation~~	~~(3.4~~	)
~~Productivity/Price~~	~~(1.1~~	)
~~Total~~	~~(1.8~~	~~) pts~~


	Three months ended June 30, 2021		Six months ended June 30, 2021
	over the prior year period		over the prior year period
Growth/acquisition	5.7	pts	2.1	pts

Price	5.3		3.1
Currency	(0.6)		(0.3)
Net productivity	(5.4)		(1.6)
Total	5.0	pts	3.3	pts

The ~~1.8~~5.0 and 3.3 percentage point ~~decrease~~increases in segment income for Enclosures as a percentage of net sales in the second quarter and first ~~quarter~~half of ~~2018~~2021 from ~~2017 was~~2020, respectively, were primarily the result of:

~~inflationary increases related to certain raw materials and labor costs; and~~

•higher ~~cost of~~ sales ~~due to manufacturing footprint rationalization and a new U.S. distribution center. We expect these investments will result in increased productivity and operating leverage in future periods.~~

~~These decreases were partially offset by:~~

~~organic sales growth in our industrial and infrastructure businesses, which resulted~~volume resulting in increased leverage on ~~operating expenses.~~fixed expenses;

~~Thermal Management~~•selective increases in selling prices to mitigate inflationary cost increases; and

~~The net sales~~•savings generated from restructuring and ~~segment income for the Thermal Management segment were as follows:~~

Three months ended
In millions March 31,
2018 March 31,
2017 % / point change
Net sales $ 147.9
$ 145.4
1.7 %
Segment income 33.5
26.0
28.8 %
% of net sales 22.7 % 17.9 % 4.8 pts

~~Net sales~~

~~The components of the change in the Thermal Management segment net sales were as follows:~~



	~~Three months ended March 31, 2018~~
	~~over the prior year period~~
~~Volume~~	~~(4.4~~	)%
~~Price~~	~~0.2~~
~~Organic growth~~	~~(4.2~~	)
~~Currency~~	~~5.9~~
~~Total~~	~~1.7~~	%

~~The 1.7 percent increase in Thermal Management net sales in the first quarter of 2018 from 2017 was primarily the result of:~~

~~favorable foreign currency effects;~~

~~organic sales growth of approximately 4.5% in our commercial & residential business, primarily within the U.S. and Canada; and~~

~~organic sales growth in our project after-market repair and maintenance business.~~lean initiatives.

These increases were partially offset by:

~~slowdown~~•inflationary increases related to certain raw materials, labor and freight costs compared to 2020;

•temporary actions taken in ~~capital~~the second quarter of 2020 to lower costs in response to the adverse effects of the COVID-19 pandemic, including reducing labor costs and limiting discretionary spending ~~impacting the energy business, driving lower organic~~for purchased services and travel; and

•higher sales volume resulting in increased employee incentive compensation expense compared to 2020.

Table of ~~approximately 9.5%.~~Contents

~~Segment~~Electrical & Fastening Solutions

The net sales, segment income and segment income as a percentage of net sales for Electrical & Fastening Solutions were as follows:


	Three months ended								Six months ended
In millions	June 30, 2021			June 30, 2020			% / point change		June 30, 2021			June 30, 2020			% / point change
Net sales	$	169.2		$	132.1		28.1	%	$	317.1		$	274.0		15.7	%
Segment income	48.9			34.7			41.0	%	88.1			68.2			29.2	%
% of net sales	28.9		%	26.3		%	2.6	pts	27.8		%	24.9		%	2.9	pts

Net sales

The components of the change in Electrical & Fastening Solutions net sales from the ~~Thermal Management~~ prior period were as follows:


	Three months ended June 30, 2021		Six months ended June 30, 2021
	over the prior year period		over the prior year period
Volume	16.8	%	7.6	%
Price	7.3		4.4
Organic growth	24.1		12.0
Acquisition	—		0.6
Currency	4.0		3.1
Total	28.1	%	15.7	%

The 28.1 and 15.7 percentage point increases in Electrical & Fastening Solutions net sales in the second quarter and first half of 2021 from 2020, respectively, were primarily the result of:

•organic sales growth contribution of approximately 12.5% and 6.5% from our commercial & residential business in the second quarter and first half of 2021 from 2020, respectively, approximately 7.0% and 3.0% from our infrastructure business in the second quarter and first half of 2021 from 2020, respectively, and approximately 4.0% and 3.0% from our industrial business in the second quarter and first half of 2021 from 2020, respectively, which includes selective increases in selling prices; and

•favorable foreign currency effects.

Segment income

The components of the change in Electrical & Fastening Solutions segment income as a percentage of net sales from the prior period were as ~~follows:~~



	~~Three months ended March 31, 2018~~
	~~over the prior year period~~
~~Growth~~	~~5.0~~	~~pts~~
~~Inflation~~	~~(1.1~~	)
~~Productivity/Price~~	~~0.9~~
~~Total~~	~~4.8~~	~~pts~~

follows:


	Three months ended June 30, 2021		Six months ended June 30, 2021
	over the prior year period		over the prior year period
Growth/acquisition	2.5	pts	0.4	pts

Price	5.0		3.2
Currency	0.1		0.1
Net productivity	(5.0)		(0.8)
Total	2.6	pts	2.9	pts

The ~~4.8~~2.6 and 2.9 percentage point ~~increase in segment income for Thermal Management as a percentage of net sales in the first quarter of 2018 from 2017 was primarily the result of:~~

~~organic sales growth in our commercial & residential business, which resulted in increased leverage on operating expenses;~~

~~favorable mix as a result of the decline in lower margin project sales and growth in higher margin product sales; and~~

~~higher contribution margin as a result of savings generated from our lean and supply management practices.~~

~~These~~ increases ~~were partially offset by:~~

~~inflationary increases related to certain raw materials and labor costs.~~

~~Electrical & Fastening Solutions~~

~~The components of the change in the Electrical & Fastening Solutions segment net sales were as follows:~~

Three months ended
In millions March 31,
2018 March 31,
2017 % / point change
Net sales $ 136.9
$ 130.3
5.1 %
Segment income 31.7
31.7
—
% of net sales 23.2 % 24.3 % (1.1 ) pts

~~Net sales~~

~~The components of the change in the~~ ~~Electrical & Fastening Solutions~~ ~~segment net sales from the prior period were as follows:~~



	~~Three months ended March 31, 2018~~
	~~over the prior year period~~
~~Volume~~	~~(1.8~~	)%
~~Price~~	~~3.1~~
~~Organic growth~~	~~1.3~~
~~Acquisition~~	~~0.2~~
~~Currency~~	~~3.6~~
~~Total~~	~~5.1~~	%

~~The 5.1 percent increase in Electrical & Fastening Solutions net sales in the first quarter of 2018 from 2017 was primarily the result of:~~

~~favorable foreign currency effects;~~

~~organic sales growth of approximately 2.0% in our commercial business; and~~

~~increased sales related to a business acquisition that occurred in the first quarter of 2018.~~

~~These increases were partially offset by:~~

~~slowdown in capital spending, particularly in the energy business, driving lower organic sales of approximately 2.0%.~~

~~Segment income~~

~~The components of the change in the~~ ~~Electrical & Fastening Solutions~~ ~~segment income as a percentage of net sales from the prior period were as follows:~~



	~~Three months ended March 31, 2018~~
	~~over the prior year period~~
~~Growth~~	~~(0.6~~	~~) pts~~
~~Acquisition~~	~~(0.1~~	)
~~Inflation~~	~~(2.7~~	)
~~Productivity/Price~~	~~2.3~~
~~Total~~	~~(1.1~~	~~) pts~~

~~The 1.1 percentage point decrease~~ in segment income for Electrical & Fastening Solutions as a percentage of net sales in the second quarter and first ~~quarter~~half of ~~2018~~2021 from ~~2017 was~~2020, respectively, were primarily the result of:

~~inflationary increases related to certain raw materials and labor costs; and~~

~~lower organic sales in our energy business, which resulted in decreased leverage on operating expenses.~~

~~These decreases were partially offset by:~~

~~higher contribution margin as a result of savings generated from our lean and supply management practices; and~~

•selective increases in selling prices to mitigate inflationary cost ~~increases.~~increases;

•higher sales volume resulting in increased leverage on fixed expenses; and

•savings generated from restructuring and lean initiatives.

These increases were partially offset by:

•inflationary increases related to certain raw materials, labor and freight costs compared to 2020;

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•temporary actions taken in the second quarter of 2020 to lower costs in response to the adverse effects of the COVID-19 pandemic, including reducing labor costs and limiting discretionary spending for purchased services and travel; and

•higher sales volume resulting in increased employee incentive compensation expense compared to 2020.

Thermal Management

The net sales, segment income and segment income as a percentage of net sales for Thermal Management were as follows:


	Three months ended								Six months ended
In millions	June 30, 2021			June 30, 2020			% / point change		June 30, 2021			June 30, 2020			% / point change
Net sales	$	131.7		$	95.8		37.5	%	$	255.7		$	216.3		18.2	%
Segment income	24.9			14.4			72.9	%	45.9			34.7			32.3	%
% of net sales	18.9		%	15.0		%	3.9	pts	18.0		%	16.0		%	2.0	pts

Net sales

The components of the change in Thermal Management net sales from the prior period were as follows:


	Three months ended June 30, 2021		Six months ended June 30, 2021
	over the prior year period		over the prior year period
Volume	28.1	%	11.3	%
Price	1.9		1.3
Organic growth	30.0		12.6

Currency	7.5		5.6
Total	37.5	%	18.2	%

The 37.5 and 18.2 percentage point increases in Thermal Management net sales in the second quarter and first half of 2021 from 2020, respectively, were primarily the result of:

•organic sales growth contribution of approximately 16.5% and 8.5% from our industrial business in the second quarter and first half of 2021 from 2020, respectively, approximately 9.0% and 5.0% from our commercial & residential business in the second quarter and first half of 2021 from 2020, respectively, and approximately 4.0% from our energy business in the second quarter of 2021 from 2020, which includes selective increases in selling prices; and

•favorable foreign currency effects.

Segment income

The components of the change in Thermal Management segment income as a percentage of net sales from the prior period were as follows:


	Three months ended June 30, 2021		Six months ended June 30, 2021
	over the prior year period		over the prior year period
Growth	6.6	pts	1.4	pts

Price	1.6		1.1
Currency	0.5		0.3
Net productivity	(4.8)		(0.8)
Total	3.9	pts	2.0	pts

The 3.9 and 2.0 percentage point increases in segment income for Thermal Management as a percentage of net sales in the second quarter and first half of 2021 from 2020, respectively, were primarily the result of:

•higher sales volume resulting in increased leverage on fixed expenses;

•selective increases in selling prices to mitigate inflationary cost increases; and

•savings generated from restructuring and lean initiatives.

These increases were partially offset by:

•inflationary increases related to certain raw materials, labor and freight costs compared to 2020;

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•higher sales volume resulting in increased employee incentive compensation expense compared to 2020.

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LIQUIDITY AND CAPITAL RESOURCES

The primary source of liquidity for our business is cash flows provided by ~~operations, which have historically been swept to Pentair to support its overall cash management strategy. Transfers of cash to and from Pentair’s cash management system have been reflected in the~~ ~~Net Parent investment~~ ~~in the historical Condensed Combined Balance Sheets, Condensed Combined Statements of Cash Flows and Condensed Combined Statements of Changes in Equity.~~

In connection with the separation, our capital structure and sources of liquidity changed significantly from our historical capital structure. Our businesses no longer participate in cash management and funding arrangements with Pentair. In connection with the separation, nVent Finance S.à r.l. (“nVent Finance”) has entered into certain financing arrangements pursuant to which we had approximately $1.0 billion of indebtedness as of April 30, 2018. In April 2018, we transferred to Pentair all cash in excess of $50.0 million of nVent and its subsidiaries, as consideration for the contribution of the net assets of the Electrical Business to nVent by Pentair.operations. We expect to continue to have cash requirements to support working capital needs and capital expenditures, to pay interest and service debt and to pay dividends to shareholders quarterly. We believe we ~~will~~ have the ability and sufficient capacity to meet these cash requirements by using available cash, ~~and~~ internally generated funds and ~~to borrow~~borrowing under committed ~~and uncommitted~~ credit facilities. We are focused on increasing our cash flow, ~~and repaying debt,~~ while continuing to fund our research and development, sales and marketing and capital investment initiatives. Our intent is to maintain investment grade metrics and a solid liquidity position. As of June 30, 2021, we had $101.8 million of cash on hand, of which only $17.5 million is held in certain countries in which the ability to repatriate is limited due to local regulations or significant potential tax consequences.

We experience seasonal cash flows primarily due to increased demand for Electrical & Fastening Solutions products during the spring and summer months in the Northern Hemisphere and increased demand for Thermal Management products and services during the fall and winter months in the Northern Hemisphere.

Operating activities

~~Cash provided by operating activities was $36.1 million in the first three months of 2018, or $51.0 million lower than in the comparable period in 2017. The decrease in~~Net cash provided by operating activities was ~~due~~$143.3 million in the first six months of 2021, compared to net cash provided by operating activities of $90.5 million in the first six months of 2020. Net cash provided by operating activities in the first six months of 2021 primarily ~~to an~~reflects net income of $182.6 million, net of non-cash depreciation, amortization and changes in deferred taxes, partially offset by a $47.6 million increase in ~~net~~ working ~~capital during the first three months of 2018 compared to the first three months of 2017.~~capital.

Investing activities

Net cash used for investing activities ~~was $5.1~~of $250.4 million in the first ~~three~~six months of ~~2018, or $19.7~~2021 relates primarily to capital expenditures of $17.9 million ~~lower than in the comparable period in 2017.~~ and cash paid for Vynckier and CIS Global acquisitions of $228.7 million.

Net cash used for investing activities of $42.8 million in the first ~~three~~six months of ~~2018 primarily relates to capital expenditures of $5.4 million. Net cash used for investing activities in the first three months of 2017~~2020 relates primarily to capital expenditures of ~~$11.3~~$17.2 million and cash paid for anthe WBT acquisition of ~~$13.5 million, net of cash acquired.~~

~~We anticipate capital expenditures for fiscal 2018 to be approximately $40 million, primarily for capacity expansions of manufacturing facilities, developing new products and general maintenance.~~$27.0 million.

Financing activities

Net cash ~~used for or~~ provided by financing activities of $86.1 million in ~~all periods presented reflect~~the first six months of 2021 primarily relates net ~~transactions with Pentair resulting from operating~~receipts of revolving credit facility of $165.4 million, offset by dividends paid of $58.8 million and ~~investing activities discussed above.~~share repurchases of $20.0 million.

~~In addition, the~~Net cash provided by financing activities ~~for~~of $82.5 million in the first ~~three~~six months of ~~2018 included $800.0~~2020 primarily relates to net receipts of the revolving credit facility of $150.0 million, offset by dividends paid of ~~proceeds from long-term debt. As described further below, nVent Finance issued $800.0 million aggregate principal amount of senior notes in March 2018 in connection with the separation.~~$59.5 million.

Senior notes

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The Notes constitute general unsecured senior obligations of the Subsidiary Issuer and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer.The guarantees of the Notes by the Parent Company Guarantor constitute general unsecured obligations of the Parent Company Guarantor and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. Subject to certain qualifications and exceptions, the indenture pursuant to which the Notes were issued contains covenants that, among other things, restrict nVent’s, nVent Finance’s and certain subsidiaries’ ability to merge or consolidate with another person, create liens or engage in sale and lease-back transactions.

Senior credit facilities

In March 2018, nVent Finance entered into a credit agreement with a syndicate of banks providing for a five-year $200.0 million senior unsecured term loan facility (the "Term Loan Facility") and a five-year $600.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility" and, together with the Term Loan Facility, the "Senior Credit Facilities"). We have the option to request to increase the Revolving Credit Facility in an aggregate amount of up to $300.0 million. Total availability under the Revolving Credit Facility was $400.0 million ~~subject to customary conditions, including the commitment~~as of ~~the participating lenders. The Senior Credit Facilities became effective in April 2018.~~

June 30, 2021.

As of ~~March 31,~~June 30, 2021, we were in compliance with all financial covenants in our debt agreements, and there is no material uncertainty about our ongoing ability to meet those covenants.

Share repurchases

During the six months ended June 30, 2021, we ~~have $10.5~~repurchased 0.9 million of ~~cash held in certain countries in which the ability to repatriate is limited due to local regulations or significant potential tax consequences.~~

~~In April 2018, we drew $200.0~~our ordinary shares for $20.0 million under the ~~Term Loan Facility. Subsequently, in connection with~~2018 Authorization. During the ~~separation,~~six months ended June 30, 2020, we ~~transferred to Pentair all cash in excess of $50.0~~purchased 0.2 million of ~~nVent~~our ordinary shares for $3.2 million under the 2018 Authorization. As of June 30, 2021, we had $525.1 million available for share repurchases under the combined 2018 and ~~its subsidiaries, as consideration for~~2019 Authorizations, which total $880.0 million.

On May 14, 2021, the ~~contribution~~Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $300.0 million (the "2021 Authorization"). The 2021 Authorization began on July 23, 2021 upon expiration of the ~~net assets~~2018 and 2019 Authorizations, and expires on July 22, 2024.

Dividends

During the six months ended June 30, 2021, we paid dividends of $58.8 million, or $0.35 per ordinary share. During the ~~Electrical~~six months ended June 30, 2020, we paid dividends of $59.5 million, or $0.35 per ordinary share.

~~Contractual obligations~~

on July 23, 2021. The ~~following summarizes~~balance of dividends payable included in Othercurrent liabilities on our ~~significant contractual debt~~Condensed Consolidated Balance Sheets was $30.4 million and ~~fixed-rate interest obligations that impact our liquidity. There have been no other material changes from the significant contractual obligations previously disclosed in our Information Statement.~~$29.4 million at June 30, 2021 and December 31, 2020, respectively.

Q2-Q4
In millions 2018 2019 2020 2021 2022 2023 Thereafter Total
Debt obligations $ —
$ —
$ —
$ —
$ —
$ 300.0
$ 500.0
$ 800.0
Interest obligations on fixed-rate debt $ 19.3
$ 34.6
$ 34.6
$ 34.6
$ 34.6
$ 34.6
$ 114.0
$ 306.3

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Other financial measures

In addition to measuring our cash flow generation or usage based upon operating, investing and financing classifications included in the Condensed ~~Combined~~Consolidated Statements of Cash Flows, we also measure our free cash flow. Free cash flow is a non-GAAP financial measure that we use to assess our cash flow performance. We believe free cash flow is an important measure of liquidity because it provides us and our investors a measurement of cash generated from operations that is available to pay dividends, make acquisitions, repay debt and repurchase shares. In addition, free cash flow is used as a criterion to measure and pay compensation-based incentives. Our measure of free cash flow may not be comparable to similarly titled measures reported by other companies. The following table is a reconciliation of free cash flow:


	Six months ended
In millions		June 30, 2021		June 30, 2020
Net cash provided by (used for) operating activities		$	143.3	$	90.5
Capital expenditures		(17.9)		(17.2)
Proceeds from sale of property and equipment		0.1		1.4
Free cash flow		$	125.5	$	74.7

Three months ended
In millions March 31,
2018 March 31,
2017
Net cash provided by (used for) operating activities $ 36.1
$ 87.1
Capital expenditures (5.4 ) (11.3 )
Proceeds from sale of property and equipment 2.3
—
Free cash flow $ 33.0
$ 75.8

~~NEW ACCOUNTING STANDARDS~~

~~See Note 1 of the Notes to Condensed Combined Financial Statements for information pertaining to recently adopted accounting standards or accounting standards to be adopted in the future.~~

CRITICAL ACCOUNTING POLICIES

We have adopted various accounting policies to prepare the ~~combined~~consolidated financial statements in accordance with GAAP. Certain of our accounting policies require the application of significant judgment by management in selecting the appropriate assumptions for calculating financial estimates. In our ~~Information Statement,~~2020 Annual Report on Form 10-K, we identified the critical accounting policies which affect our more significant estimates and assumptions used in preparing our consolidated and combined financial statements. ~~Significant changes to our critical accounting estimates as a result of adopting ASC 606 are discussed below:~~

~~Revenues~~

Accounting for long-term contracts involves the use of various techniques to estimate total contract revenue and costs. Contract estimates are based on various assumptions to project the outcome of future events that may span multiple years. We review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified.

There have been no ~~other~~ material changes to our critical accounting policies and estimates from those previously disclosed in our ~~Information Statement.~~2020 Annual Report on Form 10-K for the year ended December 31, 2020.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risk during the quarter ended ~~March 31, 2018.~~June 30, 2021. For additional information, refer to our ~~Information Statement.~~2020 Annual Report on Form 10-K for the year ended December 31, 2020.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures designed to provide reasonable assurance as to the reliability of our published financial statements and other disclosures included in this report. Our management evaluated, with the participation of our Chief Executive Officer and our Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the quarter ended ~~March 31, 2018~~June 30, 2021 pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 (the "Exchange Act"). Based upon their evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective, at the reasonable assurance level, as of the end of the quarter ended ~~March 31, 2018~~June 30, 2021 to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms, and to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosures.

(b) Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the quarter ended ~~March 31, 2018~~June 30, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

WeThere have been ~~made parties to a number of actions filed or have been given notice of potential claims relating~~no material developments with respect to the ~~conduct~~legal proceedings previously disclosed in Item 3 of our ~~business, including those pertaining to commercial disputes, product liability, asbestos, environmental, safety and health, patent infringement and employment matters.~~

~~While we believe that a material impact~~2020 Annual Report on our financial position, results of operations or cash flows from any such future claims or potential claims is unlikely, given the inherent uncertainty of litigation, a remote possibility exists that a future adverse ruling or unfavorable development could result in future charges that could have a material adverse impact. We do and will continue to periodically reexamine our estimates of probable liabilities and any associated expenses and receivables and make appropriate adjustments to such estimates based on experience and developments in litigation. As a result, the current estimates of the potential impact on our financial position, results of operations and cash flowsForm 10-K for the ~~proceedings and claims described in the notes to our combined financial statements could change in the future.~~year ended December 31, 2020.

We are subject to various product liability lawsuits and personal injury claims. A substantial number of lawsuits and claims incurred prior to the effective date of the separation on April 30, 2018 are insured and accrued for by Pentair’s captive insurance subsidiary. Pentair’s captive insurance subsidiary records a liability for these claims based on actuarial projections of ultimate losses. Lawsuits and claims incurred after the separation will be insured and accrued for by Tonka Bay, a captive insurance subsidiary of nVent. For all other claims, accruals covering the claims are recorded, on an undiscounted basis, when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on existing information. The accruals are adjusted periodically as additional information becomes available. We have not experienced significant unfavorable trends in either the severity or frequency of product liability lawsuits or personal injury claims.

ITEM 1A. RISK FACTORS

There have been no additional material changes from the risk factors previously disclosed in our ~~Information Statement.~~2020 Annual Report on Form 10-K for the year ended December 31, 2020.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

~~Not applicable.~~The following table provides information with respect to purchases we made of our ordinary shares during the second quarter of 2021:


	(a)	(b)		(c)	(d)
Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Dollar value of shares that may yet be purchased under the plans or programs
April 1 - May 1, 2021	1,953	$	28.24	—	$	525,149,844
May 2 - May 29, 2021	3,520	31.26		—	525,149,844
May 30 - June 30, 2021	634	31.86		—	525,149,844
Total	6,107			—

(a)The purchases in this column include shares repurchased as part of our publicly announced plans and shares deemed surrendered to us by participants in the nVent Electric plc 2018 Omnibus Incentive Plan (the "2018 Plan") and earlier Pentair stock incentive plans that are now outstanding under the 2018 Plan (collectively the "Plans") to satisfy the exercise price or withholding of tax obligations related to the exercise of stock options, vesting of restricted shares and vesting of performance shares.

(b)The average price paid in this column includes shares repurchased as part of our publicly announced plans and shares deemed surrendered to us by participants in the Plans to satisfy the exercise price of stock options and withholding tax obligations due upon stock option exercises and vesting of restricted and performance shares.

(c)The number of shares in this column represents the number of shares repurchased as part of our publicly announced plans to repurchase our ordinary shares up to a maximum dollar limit authorized by the Board of Directors, discussed below.

(d)On July 23, 2018, our Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $500.0 million (the "2018 Authorization"). On February 19, 2019, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $380.0 million (the "2019 Authorization"). The 2018 and 2019 Authorizations expired on July 23, 2021. As of June 30, 2021, we had $525.1 million available for share repurchases under the combined 2018 and 2019 Authorizations.

On May 14, 2021, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $300.0 million (the "2021 Authorization"). The 2021 Authorization began on July 23, 2021 upon expiration of the 2018 and 2019 Authorizations, and expires on July 22, 2024.

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ITEM 6. EXHIBITS

The exhibits listed in the following Exhibit Index are filed as part of this Quarterly Report on Form 10-Q.

Exhibit Index to Form 10-Q for the Period Ended ~~March 31, 2018~~June 30, 2021




~~2.1~~22		~~Separation~~Guarantors and ~~Distribution Agreement, dated as~~Subsidiary Issuers of ~~April 27, 2018, by and between Pentair plc and nVent Electric plc (incorporated~~Guaranteed Securities (Incorporated by reference to Exhibit ~~2.1~~22 in the ~~Current~~Quarterly Report on Form ~~8-K~~10-Q of nVent Electric plc filed with the Commission on April ~~30, 2018~~29, 2020 (File No. 001-38265)).

~~2.2~~	Tax Matters Agreement, dated as of April 27, 2018, by and between Pentair plc and nVent Electric plc (incorporated by reference to Exhibit 2.2 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~2.3~~	Transition Services Agreement, dated as of April 27, 2018, by and between Pentair plc and nVent Electric plc (incorporated by reference to Exhibit 2.3 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~2.4~~	Employee Matters Agreement, dated as of April 27, 2018, by and between Pentair plc and nVent Electric plc (incorporated by reference to Exhibit 2.4 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~3.1~~	Amended and Restated Memorandum and Articles of Association of nVent Electric plc (incorporated by reference to Exhibit 3.1 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~4.1~~	Indenture, dated as of March 26, 2018, among nVent Finance S.à r.l, nVent Electric plc, Pentair plc, Pentair Investments Switzerland GmbH and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to Amendment No. 4 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on March 26, 2018 (File No. 001-38265)).

~~4.2~~	First Supplemental Indenture, dated as of March 26, 2018, among nVent Finance S.à r.l, nVent Electric plc, Pentair plc, Pentair Investments Switzerland GmbH and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to Amendment No. 4 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on March 26, 2018 (File No. 001-38265)).

~~4.3~~	Second Supplemental Indenture, dated as of March 26, 2018, among nVent Finance S.à r.l, nVent Electric plc, Pentair plc, Pentair Investments Switzerland GmbH and U.S. Bank National Association (incorporated by reference to Exhibit 4.3 to Amendment No. 4 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on March 26, 2018 (File No. 001-38265)).

~~4.4~~	Third Supplemental Indenture, dated as of April 30, 2018, among nVent Finance S.à r.l, nVent Electric plc and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~4.5~~	Credit Agreement, dated as of March 23, 2018, among nVent Electric plc, nVent Finance S.à r.l., Pentair Technical Products Holdings, Inc. and the lenders and agents party thereto (incorporated by reference to Exhibit 4.4 to Amendment No. 4 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on March 26, 2018 (File No. 001-38265)).

~~10.1~~	nVent Electric plc 2018 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~10.2~~	~~Form of Executive Officer Stock Option Award Agreement.~~

~~10.3~~	~~Form of Executive Officer Restricted Stock Unit Award Agreement.~~

~~10.4~~	~~Form of Executive Officer Performance Stock Unit Award Agreement.~~

~~10.5~~	~~nVent Electric plc Management Incentive Plan.~~

~~10.6~~	~~Form of Non-Employee Director Restricted Stock Unit Award Agreement.~~

~~10.7~~	Form of Key Executive Employment and Severance Agreement for executive officers of nVent Electric plc (incorporated by reference to Exhibit 10.6 to Amendment No. 2 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on January 31, 2018 (File No. 001-38265)).



~~10.8~~31.1		nVent Electric plc Employee Stock Purchase and Bonus Plan (incorporated by reference to Exhibit 10.3 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~10.9~~	nVent Management Company Non-Qualified Deferred Compensation Plan (incorporated by reference to Exhibit 10.4 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~10.10~~	~~nVent Electric plc Compensation Plan for Non-Employee Directors.~~

~~10.11~~	nVent Management Company Supplemental Executive Retirement Plan (incorporated by reference to Exhibit 10.5 in the Current Report on Form 8-K of nVent Electric plc filed with the Commission on April 30, 2018 (File No. 001-38265)).

~~10.12~~	Flow Control Supplemental Savings and Retirement Plan (incorporated by reference to Exhibit 10.12 to Amendment No. 2 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on January 31, 2018 (File No. 001-38265)).

~~10.13~~	Form of Deed of Indemnification for directors and executive officers of nVent Electric plc (incorporated by reference to Exhibit 10.4 to Amendment No. 2 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on January 31, 2018 (File No. 001-38265)).

~~10.14~~	Form of Indemnification Agreement for directors and executive officers of nVent Electric plc (incorporated by reference to Exhibit 10.5 to Amendment No. 2 to the Registration Statement on Form 10 of nVent Electric plc filed with the Commission on January 31, 2018 (File No. 001-38265)).

~~31.1~~	Certification of Chief Executive Officer.

31.2		Certification of Chief Financial Officer.

32.1		Certification of Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following materials from ~~nVent's~~nVent Electric plc's Quarterly Report on Form 10-Q for the quarter ended ~~March 31, 2018~~June 30, 2021 are filed herewith, formatted in ~~XBRL (Extensible~~iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed ~~Combined~~Consolidated Statements of Income and Comprehensive Income for the three and six months ended ~~March 31, 2018~~June 30, 2021 and ~~2017,~~2020, (ii) the Condensed ~~Combined~~Consolidated Balance Sheets as of ~~March 31, 2018~~June 30, 2021 and December 31, ~~2017,~~2020, (iii) the Condensed ~~Combined~~Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~March 31, 2018~~June 30, 2021 and ~~2017,~~2020, (iv) the Condensed ~~Combined~~Consolidated Statements of Changes in Equity for the three and six months ended ~~March 31, 2018~~June 30, 2021 and ~~2017,~~2020, and (v) Notes to Condensed ~~Combined~~Consolidated Financial Statements. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on ~~May 8, 2018.~~August 3, 2021.




nVent Electric plc
	Registrant

	By	/s/ ~~Stacy P. McMahan~~Sara E. Zawoyski
		~~Stacy P. McMahan~~Sara E. Zawoyski
		Executive Vice President and Chief Financial Officer

	By	/s/ Randolph A. Wacker
		Randolph A. Wacker
		Senior Vice President, ~~and~~ Chief Accounting Officer and Treasurer


			Page

PART I FINANCIAL INFORMATION

		~~Page~~

~~PART I FINANCIAL INFORMATION~~

ITEM 1.	Financial Statements (unaudited)

		Condensed ~~Combined~~Consolidated Statements of Income and Comprehensive Income ~~for the three months ended March 31, 2018 and 2017~~	3

		Condensed ~~Combined~~Consolidated Balance Sheets ~~as of March 31, 2018 and December 31, 2017~~	4

		Condensed ~~Combined~~Consolidated Statements of Cash Flows ~~for the three months ended March 31, 2018 and 2017~~	5

		Condensed ~~Combined~~Consolidated Statements of Changes in Equity ~~for the three months ended March 31, 2018 and 2017~~	6

		Notes to Condensed ~~Combined~~Consolidated Financial Statements	7

ITEM 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	2421

ITEM 3.		Quantitative and Qualitative Disclosures about Market Risk	33

ITEM 4.		Controls and Procedures	33

PART II OTHER INFORMATION

ITEM 1.		Legal Proceedings	34

ITEM 1A.		Risk Factors	34

ITEM 2.		Unregistered Sales of Equity Securities and Use of Proceeds	3534

ITEM 6.		Exhibits	35

		Signatures	3736



þ☑		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	~~For the Quarterly Period Ended March 31, 2018~~



¨☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



	Three months ended
In millions	March 31, 2018			March 31, 2017
Net sales	$	538.9		$	502.2
Cost of goods sold	330.0			303.5
Gross profit	208.9			198.7
Selling, general and administrative	131.9			120.1
Research and development	11.4			11.0
Operating income	65.6			67.6
Interest expense	0.6			0.1
Other expense	1.2			1.4
Income before income taxes	63.8			66.1
Provision for income taxes	11.5			10.8
Net income	$	52.3		$	55.3
Comprehensive income, net of tax
Net income	$	52.3		$	55.3
Changes in cumulative translation adjustment	2.3			8.6
Changes in market value of derivative financial instruments, net of tax	(0.7		)	0.7
Comprehensive income	$	53.9		$	64.6



	March 31, 2018			December 31, 2017
In millions
Assets
Current assets
Cash and cash equivalents	$	836.7		$	26.9
Accounts and notes receivable, net of allowances of $6.4 and $8.4, respectively	355.2			349.3
Inventories	225.4			224.1
Other current assets	107.4			132.3
Total current assets	1,524.7			732.6
Property, plant and equipment, net	265.1			265.8
Other assets
Goodwill	2,241.3			2,238.2
Intangibles, net	1,220.7			1,236.6
Other non-current assets	49.3			251.8
Total other assets	3,511.3			3,726.6
Total assets	$	5,301.1		$	4,725.0
Liabilities and Equity
Current liabilities
Accounts payable	$	141.7		$	174.1
Employee compensation and benefits	60.2			75.5
Other current liabilities	126.8			141.3
Total current liabilities	328.7			390.9
Other liabilities
Long-term debt	793.0			—
Pension and other post-retirement compensation and benefits	188.7			176.7
Deferred tax liabilities	265.0			279.4
Other non-current liabilities	85.5			86.7
Total liabilities	1,660.9			933.7
Equity
Net Parent investment	3,695.7			3,848.4
Accumulated other comprehensive loss	(55.5		)	(57.1		)
Total equity	3,640.2			3,791.3
Total liabilities and equity	$	5,301.1		$	4,725.0



	Three months ended March 31, 2017
In millions	Prior to Adoption		As Revised		Effect of Change
Selling, general and administrative	$	121.5	$	120.1	$	(1.4	)
Operating income	66.2		67.6		1.4
Other expense	—		1.4		1.4



Condensed Combined Balance Sheets
In millions	Balance at December 31, 2017		Adjustments due to ASU 2016-16			Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
Accounts and notes receivable, net	$	349.3	$	—		$	3.8		$	353.1
Inventories	224.1		—			(1.8		)	222.3
Other current assets	132.3		—			1.8			134.1
Other non-current assets	251.8		(174.5		)	—			77.3
Liabilities
Other current liabilities	141.3		—			3.8			145.1
Deferred tax liabilities	279.4		—			0.4			279.8
Equity
Net Parent investment	3,848.4		(174.5		)	1.8			3,675.7



In millions	March 31, 2018		December 31, 2017		$ Change			% Change
Contract assets	$	69.8	$	69.9	$	(0.1	)	(0.1	)%
Contract liabilities	13.7		14.3		(0.6		)	(4.2	)%
Net contract assets (liabilities)	$	56.1	$	55.6	$	0.5		0.9	%



	Three months ended March 31, 2018
In millions	Enclosures		Thermal Management		Electrical & Fastening Solutions		Combined
U.S. and Canada	$	172.6	$	83.1	$	93.3	$	349.0
Western Europe	54.3		39.8		27.6		121.7
Developing ⁽¹⁾	24.3		20.1		12.5		56.9
Other Developed ⁽²⁾	2.9		4.9		3.5		11.3
Combined net sales	$	254.1	$	147.9	$	136.9	$	538.9
(1) - Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia.
(2) - Other Developed includes Australia and Japan.



	Three months ended March 31, 2017
In millions	Enclosures		Thermal Management		Electrical & Fastening Solutions		Combined
U.S. and Canada	$	161.6	$	77.0	$	88.5	$	327.1
Western Europe	40.7		39.7		22.9		103.3
Developing ⁽¹⁾	20.9		25.3		15.9		62.1
Other Developed ⁽²⁾	3.3		3.4		3.0		9.7
Combined net sales	$	226.5	$	145.4	$	130.3	$	502.2
(1) - Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia.
(2) - Other Developed includes Australia and Japan.



In millions	December 31, 2017		Acquisitions/divestitures		Foreign currency translation/other			March 31, 2018
Enclosures	$	274.8	$	—	$	2.1		$	276.9
Thermal Management	927.1		—		(0.9		)	926.2
Electrical & Fastening Solutions	1,036.3		1.9		—			1,038.2
Total goodwill	$	2,238.2	$	1.9	$	1.2		$	2,241.3



	Q2-Q4
In millions	2018		2019		2020		2021		2022		2023
Estimated amortization expense	$	45.5	$	60.6	$	60.4	$	59.3	$	59.2	$	59.0



In millions	Average interest rate as of March 31, 2018	Maturity Year	March 31, 2018			December 31, 2017
Senior notes - fixed rate⁽¹⁾	3.950%	2023	$	300.0		$	—
Senior notes - fixed rate⁽¹⁾	4.550%	2028	500.0			—
Unamortized debt issuance costs and discounts	N/A	N/A	(7.0		)	—
Long-term debt			$	793.0		$	—
⁽¹⁾Senior notes are fully and unconditionally guaranteed as to payment by nVent Electric plc