Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Entity Current Reporting Status | Yes |
Security Exchange Name | NYSE |
Entity Registrant Name | Pentair plc |
Title of 12(b) Security | Ordinary Shares, nominal value $0.01 per share |
Entity Incorporation, State or Country Code | L2 |
Document Transition Report | false |
Document Quarterly Report | true |
Entity Central Index Key | 0000077360 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Document Type | 10-Q |
Entity File Number | 001-11625 |
Document Period End Date | Sep. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Trading Symbol | PNR |
Entity Common Stock, Shares Outstanding | 168,092,998 |
Entity Tax Identification Number | 98-1141328 |
City Area Code | 74 |
Local Phone Number | 9421-6154 |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Country Region | 44 |
Entity Address, Address Line One | Regal House, 70 London Road, |
Entity Address, Address Line Two | Twickenham, |
Entity Address, City or Town | London, |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | TW13QS |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||||||
Net sales | $ 713.6 | $ 711.4 | $ 2,202 | $ 2,224.6 | ||||
Cost of goods sold | 458.6 | 467.6 | 1,424.7 | 1,444.9 | ||||
Gross profit | 255 | 243.8 | 777.3 | 779.7 | ||||
Selling, general and administrative expenses | 126.4 | 116.3 | 405.9 | 399 | ||||
Research and development expenses | 19.8 | 19.1 | 61.2 | 57 | ||||
Operating income | 108.8 | 108.4 | 310.2 | 323.7 | ||||
Other (income) expense: | ||||||||
(Gain) loss on sale of business | 0.1 | 0.2 | (3.3) | 6.4 | ||||
Loss on early extinguishment of debt | 0 | 0 | 0 | (17.1) | ||||
Net interest expense | 6.9 | 4.3 | 23.6 | 27.9 | ||||
Other Income | 0.6 | 2.1 | (11.7) | (1.7) | ||||
Income from continuing operations before income taxes | 101.2 | 101.8 | 301.6 | 274 | ||||
Provision for income taxes | 9.9 | 10.6 | 42.8 | 46.5 | ||||
Net income from continuing operations | 91.3 | 91.2 | 258.8 | 227.5 | ||||
Income (loss) from discontinued operations, net of tax | 1 | 18.9 | (0.9) | 27 | ||||
Net income | 92.3 | $ 114.3 | $ 51.3 | 110.1 | $ 41.5 | $ 102.9 | 257.9 | 254.5 |
Comprehensive income, net of tax | ||||||||
Net income | 92.3 | $ 114.3 | $ 51.3 | 110.1 | $ 41.5 | $ 102.9 | 257.9 | 254.5 |
Changes in cumulative translation adjustment | (25.8) | (2.1) | (28.3) | 23.1 | ||||
Changes in market value of derivative financial instruments, net of tax | 21.9 | (1) | 22.8 | (0.7) | ||||
Comprehensive income | $ 88.4 | $ 107 | $ 252.4 | $ 276.9 | ||||
Earnings (loss) Per Share, Basic | ||||||||
Continuing operations (in dollars per share) | $ 0.54 | $ 0.52 | $ 1.53 | $ 1.29 | ||||
Discontinued operations (in dollars per share) | 0.01 | 0.11 | (0.01) | 0.15 | ||||
Basic earnings (loss) per ordinary share (in dollars per share) | 0.55 | 0.63 | 1.52 | 1.44 | ||||
Earnings (loss) Per Share, Diluted | ||||||||
Continuing operations (in dollars per share) | 0.54 | 0.52 | 1.52 | 1.28 | ||||
Discontinued operations (in dollars per share) | 0.01 | 0.11 | (0.01) | 0.15 | ||||
Diluted earnings (loss) per ordinary share (in dollars per share) | $ 0.55 | $ 0.63 | $ 1.51 | $ 1.43 | ||||
Weighted average ordinary shares outstanding | ||||||||
Basic (shares) | 168.1 | 174.3 | 169.7 | 176.8 | ||||
Diluted (shares) | 168.6 | 175.7 | 170.3 | 178.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Changes in cumulative translation adjustment inclusive of divestiture of business reclassified to gain from sale | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 113.2 | $ 74.3 |
Accounts and notes receivable, net of allowances of $13.4 and $14.0, respectively | 404 | 488.2 |
Inventories | 390.3 | 387.5 |
Other current assets | 95.1 | 89.4 |
Total current assets | 1,002.6 | 1,039.4 |
Property, plant and equipment, net | 277.9 | 272.6 |
Other assets | ||
Goodwill | 2,261 | 2,072.7 |
Intangibles, net | 341.4 | 276.3 |
Other non-current assets | 197.5 | 145.5 |
Total other assets | 2,799.9 | 2,494.5 |
Total assets | 4,080.4 | 3,806.5 |
Current liabilities | ||
Accounts payable | 253.4 | 378.6 |
Employee compensation and benefits | 70.7 | 111.7 |
Other current liabilities | 370.1 | 328.4 |
Total current liabilities | 694.2 | 818.7 |
Other liabilities | ||
Long-term debt | 1,118.7 | 787.6 |
Pension and other post-retirement compensation and benefits | 88.1 | 90 |
Deferred tax liabilities | 111.4 | 105.9 |
Other non-current liabilities | 199.2 | 168.2 |
Total liabilities | 2,211.6 | 1,970.4 |
Equity | ||
Ordinary shares $0.01 par value, 426.0 authorized, 168.1 and 171.4 issued at September 30, 2019 and December 31, 2018, respectively | 1.7 | 1.7 |
Additional paid-in capital | 1,765.9 | 1,893.8 |
Retained earnings | 335.3 | 169.2 |
Accumulated other comprehensive loss | (234.1) | (228.6) |
Total equity | 1,868.8 | 1,836.1 |
Total liabilities and equity | $ 4,080.4 | $ 3,806.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowances | $ 13.4 | $ 14 |
Ordinary shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 426,000,000 | 426,000,000 |
Common shares issued (in shares) | 168,100,000 | 171,400,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 257.9 | $ 254.5 |
Loss (income) from discontinued operations, net of tax | 0.9 | (27) |
Adjustments to reconcile net income from continuing operations to net cash provided by (used for) operating activities of continuing operations | ||
Equity income of unconsolidated subsidiaries | (3) | (7.1) |
Depreciation | 36.4 | 36.9 |
Amortization | 24.1 | 27 |
Deferred income taxes | (17.7) | (4.1) |
(Gain) loss on sale of business | (3.3) | 6.4 |
Share-based compensation | 15.3 | 16.4 |
Trade name and other impairment | 18.2 | 6 |
Loss on early extinguishment of debt | 0 | (17.1) |
Pension settlement (gain) loss | (11.8) | 2.2 |
Pension and other post-retirement plan contributions | (11.1) | 0 |
Changes in assets and liabilities, net of effects of business acquisitions | ||
Accounts and notes receivable | 82.8 | 73.5 |
Inventories | 4 | (36.3) |
Other current assets | (10.5) | (11) |
Accounts payable | (128.8) | (60.1) |
Employee compensation and benefits | (19.1) | (25.4) |
Other current liabilities | 21.3 | 27.7 |
Other non-current assets and liabilities | 10.5 | 2.5 |
Net cash provided by operating activities of continuing operations | 266.1 | 299.2 |
Net cash used for operating activities of discontinued operations | (1.4) | (14.6) |
Net cash provided by operating activities | 264.7 | 284.6 |
Investing activities | ||
Capital expenditures | (44.6) | (33.8) |
Proceeds from sale of property and equipment | 0.4 | (0.4) |
Proceeds from (payments due to) the sale of businesses, net | 0.7 | (12.8) |
Acquisitions, net of cash acquired | (284.5) | (0.9) |
Other | (1.5) | 0 |
Net cash used for investing activities of continuing operations | (329.5) | (47.9) |
Net cash used for investing activities of discontinued operations | 0 | (7.1) |
Net cash used for investing activities | (329.5) | (55) |
Financing activities | ||
Net receipts of commercial paper and revolving long-term debt | 91.2 | 46 |
Proceeds from long-term debt | 400 | 0 |
Repayments of long-term debt | (151.5) | (675.1) |
Debt issuance costs | (6.3) | (2) |
Premium paid on early extinguishment of debt | 0 | (16) |
Transfer of cash to nVent | 0 | (74.2) |
Distribution of cash from nVent | 0 | 993.6 |
Shares issued to employees, net of shares withheld | 6.8 | 16 |
Repurchases of ordinary shares | (150) | (400) |
Dividends paid | (92.4) | (156.7) |
Net cash provided by financing activities of continuing operations | 97.8 | (268.4) |
Change in cash held for sale | 0 | 27 |
Effect of exchange rate changes on cash and cash equivalents | 5.9 | (9.8) |
Change in cash and cash equivalents | 38.9 | (21.6) |
Cash and cash equivalents, beginning of period | 74.3 | 86.3 |
Cash and cash equivalents, end of period | $ 113.2 | $ 64.7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) shares in Millions, $ in Millions | Total | Ordinary shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss |
Cash dividends declared per ordinary share | $ 0.35 | ||||
Beginning Balance (in shares) at Dec. 31, 2017 | 180.3 | ||||
Beginning Balance at Dec. 31, 2017 | $ 5,037.8 | $ 1.8 | $ 2,797.7 | $ 2,481.7 | $ (243.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 102.9 | 102.9 | |||
Other comprehensive income, net of tax | (1.4) | (1.4) | |||
Dividends declared, $0.18 per share | (62.6) | (62.6) | |||
Share repurchase (in shares) | (2.2) | ||||
Share repurchase | (150) | (150) | |||
Exercise of options, net of shares tendered for payment | 5.8 | 5.8 | |||
Exercise of options, net of shares tendered for payment (in shares) | 0.1 | ||||
Issuance of restricted shares, net of cancellations (in shares) | 0.3 | ||||
Issuance of restricted shares, net of cancellations | 0 | ||||
Shares surrendered by employees to pay taxes (in shares) | (0.1) | ||||
Shares surrendered by employees to pay taxes | (4.8) | (4.8) | |||
Share-based compensation | 6 | 6 | |||
Ending Balance (in shares) at Mar. 31, 2018 | 178.4 | ||||
Ending Balance at Mar. 31, 2018 | 4,719.7 | $ 1.8 | 2,654.7 | 2,308 | (244.8) |
Beginning Balance (in shares) at Dec. 31, 2017 | 180.3 | ||||
Beginning Balance at Dec. 31, 2017 | 5,037.8 | $ 1.8 | 2,797.7 | 2,481.7 | (243.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 254.5 | ||||
Ending Balance (in shares) at Sep. 30, 2018 | 173.6 | ||||
Ending Balance at Sep. 30, 2018 | $ 1,880.2 | $ 1.8 | 1,991.9 | 107.5 | (221) |
Cash dividends declared per ordinary share | $ 0.175 | ||||
Beginning Balance (in shares) at Mar. 31, 2018 | 178.4 | ||||
Beginning Balance at Mar. 31, 2018 | $ 4,719.7 | $ 1.8 | 2,654.7 | 2,308 | (244.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 41.5 | 41.5 | |||
Other comprehensive income, net of tax | 74.8 | 74.8 | |||
Dividends declared, $0.18 per share | (30.9) | (30.9) | |||
Share repurchase (in shares) | (3.3) | ||||
Share repurchase | (150) | (150) | |||
Exercise of options, net of shares tendered for payment | 6.3 | 6.3 | |||
Exercise of options, net of shares tendered for payment (in shares) | 0.3 | ||||
Issuance of restricted shares, net of cancellations (in shares) | (0.1) | ||||
Issuance of restricted shares, net of cancellations | 0 | $ 0 | |||
Shares surrendered by employees to pay taxes (in shares) | 0.1 | ||||
Shares surrendered by employees to pay taxes | (1) | (1) | |||
Distribution to nVent | (2,776.8) | (438.2) | (2,290.7) | (47.9) | |
Share-based compensation | 5.3 | 5.3 | |||
Ending Balance (in shares) at Jun. 30, 2018 | 175.4 | ||||
Ending Balance at Jun. 30, 2018 | $ 1,888.9 | $ 1.8 | 2,077.1 | 27.9 | (217.9) |
Cash dividends declared per ordinary share | $ 0.175 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 110.1 | 110.1 | |||
Other comprehensive income, net of tax | (3.1) | (3.1) | |||
Dividends declared, $0.18 per share | (30.5) | (30.5) | |||
Share repurchase (in shares) | (2.3) | ||||
Share repurchase | (100) | (100) | |||
Exercise of options, net of shares tendered for payment | 10.7 | 10.7 | |||
Exercise of options, net of shares tendered for payment (in shares) | 0.4 | ||||
Issuance of restricted shares, net of cancellations (in shares) | 0.1 | ||||
Issuance of restricted shares, net of cancellations | 0 | ||||
Shares surrendered by employees to pay taxes | (1) | (1) | |||
Share-based compensation | 5.1 | 5.1 | |||
Ending Balance (in shares) at Sep. 30, 2018 | 173.6 | ||||
Ending Balance at Sep. 30, 2018 | $ 1,880.2 | $ 1.8 | 1,991.9 | 107.5 | (221) |
Cash dividends declared per ordinary share | $ 0.18 | ||||
Beginning Balance (in shares) at Dec. 31, 2018 | 171.4 | ||||
Beginning Balance at Dec. 31, 2018 | $ 1,836.1 | $ 1.7 | 1,893.8 | 169.2 | (228.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 51.3 | 51.3 | |||
Other comprehensive income, net of tax | 2.7 | 2.7 | |||
Dividends declared, $0.18 per share | (31) | (31) | |||
Exercise of options, net of shares tendered for payment | 9.1 | 9.1 | |||
Exercise of options, net of shares tendered for payment (in shares) | 0.3 | ||||
Issuance of restricted shares, net of cancellations (in shares) | 0.2 | ||||
Issuance of restricted shares, net of cancellations | 0 | $ 0 | |||
Shares surrendered by employees to pay taxes (in shares) | 0 | ||||
Shares surrendered by employees to pay taxes | (3.2) | (3.2) | |||
Share-based compensation | 5.4 | 5.4 | |||
Ending Balance (in shares) at Mar. 31, 2019 | 171.9 | ||||
Ending Balance at Mar. 31, 2019 | 1,870.4 | $ 1.7 | 1,905.1 | 189.5 | (225.9) |
Beginning Balance (in shares) at Dec. 31, 2018 | 171.4 | ||||
Beginning Balance at Dec. 31, 2018 | 1,836.1 | $ 1.7 | 1,893.8 | 169.2 | (228.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 257.9 | ||||
Ending Balance (in shares) at Sep. 30, 2019 | 168.1 | ||||
Ending Balance at Sep. 30, 2019 | $ 1,868.8 | $ 1.7 | 1,765.9 | 335.3 | (234.1) |
Cash dividends declared per ordinary share | $ 0.18 | ||||
Beginning Balance (in shares) at Mar. 31, 2019 | 171.9 | ||||
Beginning Balance at Mar. 31, 2019 | $ 1,870.4 | $ 1.7 | 1,905.1 | 189.5 | (225.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 114.3 | 114.3 | |||
Other comprehensive income, net of tax | (4.3) | (4.3) | |||
Dividends declared, $0.18 per share | (30.4) | (30.4) | |||
Share repurchase (in shares) | (4) | ||||
Share repurchase | (150) | (150) | |||
Exercise of options, net of shares tendered for payment | 2.2 | 2.2 | |||
Exercise of options, net of shares tendered for payment (in shares) | 0.1 | ||||
Issuance of restricted shares, net of cancellations (in shares) | 0.1 | ||||
Issuance of restricted shares, net of cancellations | 0 | $ 0 | |||
Shares surrendered by employees to pay taxes (in shares) | (0.1) | ||||
Shares surrendered by employees to pay taxes | (0.9) | (0.9) | |||
Share-based compensation | 5.3 | 5.3 | |||
Ending Balance (in shares) at Jun. 30, 2019 | 168 | ||||
Ending Balance at Jun. 30, 2019 | $ 1,806.6 | $ 1.7 | 1,761.7 | 273.4 | (230.2) |
Cash dividends declared per ordinary share | $ 0.18 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 92.3 | 92.3 | |||
Other comprehensive income, net of tax | (3.9) | (3.9) | |||
Dividends declared, $0.18 per share | (30.4) | (30.4) | |||
Exercise of options, net of shares tendered for payment | 0 | 0 | |||
Exercise of options, net of shares tendered for payment (in shares) | 0.1 | ||||
Shares surrendered by employees to pay taxes (in shares) | 0 | ||||
Shares surrendered by employees to pay taxes | (0.4) | (0.4) | |||
Share-based compensation | 4.6 | 4.6 | |||
Ending Balance (in shares) at Sep. 30, 2019 | 168.1 | ||||
Ending Balance at Sep. 30, 2019 | $ 1,868.8 | $ 1.7 | $ 1,765.9 | $ 335.3 | $ (234.1) |
Basis of Presentation and Respo
Basis of Presentation and Responsibility for Interim Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Responsibility for Interim Financial Statements | Basis of Presentation and Responsibility for Interim Financial Statements The accompanying unaudited condensed consolidated financial statements of Pentair plc and its subsidiaries (“we,” “us,” “our,” “Pentair,” or the “Company”) have been prepared following the requirements of the U.S. 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. We are responsible for the unaudited condensed 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 and operating results. As these are condensed financial statements, one should also read our consolidated financial statements and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Revenues, expenses, cash flows, assets and liabilities can and do vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be indicative of those for a full year. Our fiscal year ends on December 31. We report our interim quarterly periods on a calendar quarter basis. Adoption of new accounting standards On January 1, 2019, we adopted ASU No. 2016-02, “Leases” (“the new lease standard” or “ASC 842”) using the transition method of adoption. Under the transition method of adoption, comparative information has not been restated and continues to be reported under the standards in effect for those periods. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We also elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as one lease cost. The impact of adopting the new standard primarily relates to the recognition of a lease right-of-use (“ROU”) asset and current and non-current lease liability on the consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As we cannot readily determine the rate implicit in the lease, we use our incremental borrowing rate determined by country of lease origin based on the anticipated lease term as determined at commencement date in determining the present value of lease payments. The ROU asset also excludes any accrued lease payments and unamortized lease incentives. As of September 30, 2019 , $80.0 million was included in Other non-current assets , $19.8 million in Other current liabilities and $63.0 million in Other non-current liabilities , on the Condensed Consolidated Balance Sheets as a result of the new lease standard. There was no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income or Condensed Consolidated Statements of Cash Flows. Refer to Note 15 for further discussion. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We disaggregate our revenue from contracts with customers by segment, geographic location and vertical, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Refer to Note 14 for revenue disaggregated by segment. Geographic net sales information, based on geographic destination of the sale, was as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, U.S. $ 445.0 $ 438.5 $ 1,382.1 $ 1,395.1 Western Europe 97.8 97.1 309.0 311.2 Developing (1) 119.9 117.6 357.8 346.0 Other Developed (2) 50.9 58.2 153.1 172.3 Consolidated net sales $ 713.6 $ 711.4 $ 2,202.0 $ 2,224.6 (1) Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia. (2) Other Developed includes Australia, Canada and Japan. Vertical net sales information was as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Residential $ 395.5 $ 397.6 $ 1,230.1 $ 1,247.3 Commercial 154.3 155.8 475.7 475.4 Industrial 163.8 158.0 496.2 501.9 Consolidated net sales $ 713.6 $ 711.4 $ 2,202.0 $ 2,224.6 Performance obligations On September 30, 2019 , we had $62.8 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 . Contract assets and liabilities Contract assets and liabilities consisted of the following: In millions September 30, December 31, $ Change % Change Contract assets $ 37.3 $ 36.5 $ 0.8 2.2 % Contract liabilities 34.4 32.8 1.6 4.9 % Net contract assets $ 2.9 $ 3.7 $ (0.8 ) (21.6 )% The $0.8 million decrease in net contract assets from December 31, 2018 to September 30, 2019 was primarily the result of timing of milestone payments. Approximately 80% of our contract liabilities at December 31, 2018 were recognized in revenue in the first nine months of 2019 . There were no impairment losses recognized on our contract assets for the three months or nine months ended September 30, 2019 . |
Acquisitions and Discontinued O
Acquisitions and Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Acquisitions and Discontinued Operations | Acquisitions and Discontinued Operations Acquisitions In February 2019, as part of Filtration Solutions, we completed the acquisitions of Aquion, Inc. (“Aquion”) and Pelican Water Systems (“Pelican”) for $163.4 million and $121.1 million , respectively, in cash, net of cash acquired. For Aquion, the excess of purchase price over tangible net assets and identified intangible assets acquired has been preliminarily allocated to goodwill in the amount of $94.5 million , $4.6 million of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired as part of the Aquion acquisition include $15.7 million of indefinite-lived trade name intangible assets and $78.8 million of definite-lived customer relationships with an estimated useful life of 15 years . For Pelican, the excess purchase price over tangible net assets acquired has been preliminarily allocated to goodwill in the amount of $121.0 million , $7.6 million of which is expected to be deductible for income tax purposes. The preliminary purchase price allocation for these acquisitions is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation. These changes will primarily relate to impacts associated with income taxes and other accruals. The proforma impact of these acquisitions is not material. Discontinued Operation — Electrical Separation On April 30, 2018, we completed the separation of our Electrical business from the rest of Pentair (the “Separation”) by means of a dividend in specie of the Electrical business, which was effected by the transfer of the Electrical business from Pentair to nVent Electric plc (“nVent”) and the issuance by nVent of ordinary shares directly to Pentair shareholders (the “Distribution”). The results of the Electrical business have been presented as discontinued operations. The Electrical business had been previously disclosed as a stand-alone reporting segment. Separation costs related to the Separation and Distribution were $2.5 million and $82.4 million for the three and nine months ended September 30, 2018 , respectively. These costs are reported in discontinued operations as they represent a cost directly related to the Separation and Distribution and are included within Income (loss) from discontinued operations, net of tax presented below. Operating results of the discontinued operation is summarized below: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Net sales $ — $ — $ — $ 693.9 Cost of goods sold — — — 424.0 Gross profit — — — 269.9 Selling, general and administrative expenses 1.2 2.5 2.0 233.5 Research and development expenses — — — 14.6 Operating (loss) income $ (1.2 ) $ (2.5 ) $ (2.0 ) $ 21.8 (Loss) income from discontinued operations before income taxes $ (1.3 ) $ 14.8 $ (2.5 ) $ 34.6 Income tax (benefit) provision (2.3 ) (4.1 ) (1.6 ) 7.6 Income (loss) from discontinued operations, net of tax $ 1.0 $ 18.9 $ (0.9 ) $ 27.0 |
Share Plans
Share Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share Plans | Share Plans Total share-based compensation expense for the three and nine months ended September 30, 2019 and 2018 was as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Restricted stock units $ 2.5 $ 2.4 $ 8.2 $ 6.7 Stock options 0.9 1.3 3.4 3.5 Performance share units 1.2 1.4 3.7 6.2 Total share-based compensation expense $ 4.6 $ 5.1 $ 15.3 $ 16.4 Of the total share-based compensation expense noted above, $3.4 million was reported as part of Income (loss) from discontinued operations, net of tax for the nine months ended September 30, 2018 . In the first quarter of 2019, we issued our annual share-based compensation grants under the Pentair plc 2012 Stock and Incentive Plan to eligible employees. The total number of awards issued was approximately 0.8 million , of which 0.3 million were restricted stock units (“RSUs”), 0.4 million were stock options and 0.1 million were performance share units (“PSUs”). The weighted-average grant date fair value of the RSUs, stock options and PSUs issued was $40.84 , $8.84 , and $38.47 , respectively. We estimated the fair value of each stock option award issued in the annual share-based compensation grant using a Black-Scholes option pricing model, modified for dividends and using the following assumptions: 2019 Annual Grant Risk-free interest rate 2.89 % Expected dividend yield 1.78 % Expected share price volatility 23.3 % Expected term (years) 6.1 These estimates require us to make assumptions based on historical results, observance of trends in our share price, changes in option exercise behavior, future expectations and other relevant factors. If other assumptions had been used, share-based compensation expense, as calculated and recorded under the accounting guidance, could have been affected. We based the expected life assumption on historical experience as well as the terms and vesting periods of the options granted. For purposes of determining expected share price volatility, we considered a rolling average of historical volatility measured over a period approximately equal to the expected option term. The risk-free interest rate for periods that coincide with the expected life of the options is based on the U.S. Treasury Department yield curve in effect at the time of grant. |
Share-based Compensation Expense | Total share-based compensation expense for the three and nine months ended September 30, 2019 and 2018 was as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Restricted stock units $ 2.5 $ 2.4 $ 8.2 $ 6.7 Stock options 0.9 1.3 3.4 3.5 Performance share units 1.2 1.4 3.7 6.2 Total share-based compensation expense $ 4.6 $ 5.1 $ 15.3 $ 16.4 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the nine months ended September 30, 2019 and the year ended December 31, 2018 , we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. Initiatives during the nine months ended September 30, 2019 and the year ended December 31, 2018 included the reduction in hourly and salaried headcount of approximately 325 employees and 300 employees, respectively. Restructuring-related costs included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income included costs for severance and other restructuring costs as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Severance and related costs $ 2.1 $ 2.8 $ 9.6 $ 12.8 Other 0.8 0.7 1.1 21.3 Total restructuring costs $ 2.9 $ 3.5 $ 10.7 $ 34.1 Other restructuring costs primarily consist of asset impairment and various contract termination costs. Restructuring costs by reportable segment were as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Aquatic Systems $ 0.2 $ 0.6 $ 3.1 $ 3.6 Filtration Solutions 1.5 0.9 3.1 14.4 Flow Technologies 0.3 0.7 2.4 8.7 Other 0.9 1.3 2.1 7.4 Consolidated $ 2.9 $ 3.5 $ 10.7 $ 34.1 Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the nine months ended September 30, 2019 : In millions September 30, Beginning balance $ 27.1 Costs incurred 9.6 Cash payments and other (19.7 ) Ending balance $ 17.0 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows: Three months ended Nine months ended In millions, except per-share data September 30, September 30, September 30, September 30, Net income $ 92.3 $ 110.1 $ 257.9 $ 254.5 Net income from continuing operations $ 91.3 $ 91.2 $ 258.8 $ 227.5 Weighted average ordinary shares outstanding Basic 168.1 174.3 169.7 176.8 Dilutive impact of stock options, restricted stock units and performance share units 0.5 1.4 0.6 1.7 Diluted 168.6 175.7 170.3 178.5 Earnings (loss) per ordinary share Basic Continuing operations $ 0.54 $ 0.52 $ 1.53 $ 1.29 Discontinued operations 0.01 0.11 (0.01 ) 0.15 Basic earnings per ordinary share $ 0.55 $ 0.63 $ 1.52 $ 1.44 Diluted Continuing operations $ 0.54 $ 0.52 $ 1.52 $ 1.28 Discontinued operations 0.01 0.11 (0.01 ) 0.15 Diluted earnings per ordinary share $ 0.55 $ 0.63 $ 1.51 $ 1.43 Anti-dilutive stock options excluded from the calculation of diluted earnings per share 2.2 1.3 2.0 0.6 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information In millions September 30, December 31, Inventories Raw materials and supplies $ 198.0 $ 191.3 Work-in-process 63.4 64.0 Finished goods 128.9 132.2 Total inventories $ 390.3 $ 387.5 Other current assets Cost in excess of billings $ 37.3 $ 36.5 Prepaid expenses 42.7 36.7 Prepaid income taxes 9.4 8.5 Other current assets 5.7 7.7 Total other current assets $ 95.1 $ 89.4 Property, plant and equipment, net Land and land improvements $ 33.1 $ 33.5 Buildings and leasehold improvements 186.4 178.9 Machinery and equipment 608.7 593.8 Construction in progress 40.1 35.7 Total property, plant and equipment 868.3 841.9 Accumulated depreciation and amortization 590.4 569.3 Total property, plant and equipment, net $ 277.9 $ 272.6 Other non-current assets Right-of-use lease assets $ 80.0 $ — Deferred income taxes 26.3 26.2 Deferred compensation plan assets 20.0 20.9 Other non-current assets 71.2 98.4 Total other non-current assets $ 197.5 $ 145.5 Other current liabilities Dividends payable $ 30.3 $ 30.8 Accrued warranty 30.6 33.9 Accrued rebates and incentives 105.1 76.9 Billings in excess of cost 21.5 21.3 Current lease liability 19.8 — Income taxes payable 12.0 10.4 Accrued restructuring 17.0 27.1 Other current liabilities 133.8 128.0 Total other current liabilities $ 370.1 $ 328.4 Other non-current liabilities Long-term lease liability $ 63.0 $ — Income taxes payable 45.8 46.8 Self-insurance liabilities 43.1 47.7 Deferred compensation plan liabilities 20.0 20.9 Foreign currency contract liabilities 1.9 30.6 Other non-current liabilities 25.4 22.2 Total other non-current liabilities $ 199.2 $ 168.2 |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The changes in the carrying amount of goodwill by reportable segment were as follows: In millions December 31, Acquisitions Foreign currency translation/other September 30, Aquatic Systems $ 965.9 $ — $ (1.0 ) $ 964.9 Filtration Solutions 643.5 215.5 (19.8 ) 839.2 Flow Technologies 463.3 — (6.4 ) 456.9 Total goodwill $ 2,072.7 $ 215.5 $ (27.2 ) $ 2,261.0 Identifiable intangible assets consisted of the following: September 30, December 31, In millions Cost Accumulated amortization Net Cost Accumulated amortization Net Definite-life intangibles Customer relationships $ 415.9 $ (260.8 ) $ 155.1 $ 347.1 $ (247.9 ) $ 99.2 Trade names — — — 0.4 (0.4 ) — Proprietary technology and patents 42.8 (28.8 ) 14.0 86.2 (68.4 ) 17.8 Total definite-life intangibles 458.7 (289.6 ) 169.1 433.7 (316.7 ) 117.0 Indefinite-life intangibles Trade names 172.3 — 172.3 159.3 — 159.3 Total intangibles $ 631.0 $ (289.6 ) $ 341.4 $ 593.0 $ (316.7 ) $ 276.3 Identifiable intangible asset amortization expense was $7.6 million and $8.6 million for the three months ended September 30, 2019 and 2018 , respectively, and $24.1 million and $27.0 million for the nine months ended September 30, 2019 and 2018 , respectively. Estimated future amortization expense for identifiable intangible assets during the remainder of 2019 and the next five years is as follows: Q4 In millions 2019 2020 2021 2022 2023 2024 Estimated amortization expense $ 7.4 $ 27.1 $ 22.1 $ 15.2 $ 12.8 $ 12.3 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt and the average interest rates on debt outstanding were as follows: In millions Average interest rate as of September 30, 2019 Maturity Year September 30, December 31, Commercial paper 2.575% 2023 $ 189.7 $ 76.0 Revolving credit facilities 3.116% 2023 3.6 26.2 Senior notes - fixed rate (1) 2.650% 2019 250.0 250.0 Senior notes - fixed rate - Euro (1) 2.450% 2019 — 155.1 Senior notes - fixed rate (1) 3.625% 2020 74.0 74.0 Senior notes - fixed rate (1) 5.000% 2021 103.8 103.8 Senior notes - fixed rate (1) 3.150% 2022 88.3 88.3 Senior notes - fixed rate (1) 4.650% 2025 19.3 19.3 Senior notes - fixed rate (1) 4.500% 2029 400.0 — Unamortized debt issuance costs and discounts N/A N/A (10.0 ) (5.1 ) Total debt $ 1,118.7 $ 787.6 (1) Senior notes are guaranteed as to payment by Pentair and PISG. In June 2019, Pentair, Pentair Finance S.à r.l. (“PFSA”) and Pentair Investments Switzerland GmbH (“PISG”) completed a public offering of $400.0 million aggregate principal amount of PFSA’s 4.500% Senior Notes due 2029 (the “2029 Notes”). The 2029 Notes are fully and unconditionally guaranteed as to payment of principal and interest by Pentair and PISG. We used the net proceeds of the 2029 Notes to partially repay outstanding commercial paper. In April 2018, Pentair, PISG, PFSA and Pentair, Inc. entered into a credit agreement, providing for an $800.0 million senior unsecured revolving credit facility with a term of five years (the “Senior Credit Facility”), with Pentair and PISG as guarantors and PFSA and Pentair, Inc. as borrowers. The Senior Credit Facility replaced PFSA’s existing credit facility under that certain Amended and Restated Credit Agreement, dated as of October 3, 2014. The Senior Credit Facility has a maturity date of April 25, 2023. Borrowings under the Senior Credit Facility bear interest at a rate equal to an adjusted base rate or the London Interbank Offered Rate, plus, in each case, an applicable margin. The applicable margin is based on, at PFSA’s election, Pentair’s leverage level or PFSA’s public credit rating. PFSA has the option to request an increase to the Senior Credit Facility up to $1,100.0 million in the aggregate, subject to customary conditions, including the commitment of participating lenders. In May 2019, PFSA executed an increase of the Senior Credit Facility by $100.0 million for a total commitment up to $900.0 million in the aggregate. As of September 30, 2019 , total availability under the Senior Credit Facility was $706.7 million . PFSA is authorized to sell short-term commercial paper notes to the extent availability exists under the Senior Credit Facility. PFSA uses the Senior Credit Facility as back-up liquidity to support 100% of commercial paper outstanding. PFSA had $189.7 million of commercial paper outstanding as of September 30, 2019 and $76.0 million as of December 31, 2018 , all of which was classified as long-term debt as we have the intent and the ability to refinance such obligations on a long-term basis under the Senior Credit Facility. Our debt agreements contain various financial covenants, but the most restrictive covenants are contained in the Senior Credit Facility. The Senior Credit Facility contains covenants requiring us not to 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 (the “Leverage Ratio”) 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 as of the end of each fiscal quarter. For purposes of the Leverage Ratio, the Senior Credit Facility provides for the calculation of EBITDA giving pro forma effect to certain acquisitions, divestitures and liquidations during the period to which such calculation relates. In addition to the Senior Credit Facility, we have various other credit facilities with an aggregate availability of $20.9 million , of which there were no outstanding borrowings at September 30, 2019 . Borrowings under these credit facilities bear interest at variable rates. We have $324.0 million aggregate principal amount of fixed rate senior notes maturing in the next twelve months. We classified this debt as long-term as of September 30, 2019 as we have the intent and ability to refinance such obligation on a long-term basis under the Senior Credit Facility. Debt outstanding, excluding unamortized issuance costs and discounts, at September 30, 2019 matures on a calendar year basis as follows: Q4 In millions 2019 2020 2021 2022 2023 2024 Thereafter Total Contractual debt obligation maturities $ 250.0 $ 74.0 $ 103.8 $ 88.3 $ 193.3 $ — $ 419.3 $ 1,128.7 |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Financial Instruments | 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 of 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. At September 30, 2019 and December 31, 2018 , we had outstanding foreign currency derivative contracts with gross notional U.S. dollar equivalent amounts of $41.5 million and $47.6 million , respectively. The impact of these contracts on the Condensed Consolidated Statements of Operations and Comprehensive Income was not material for any period presented. Cross Currency Swaps At September 30, 2019 and December 31, 2018 , we had outstanding cross currency swap agreements with a combined notional amount of $601.9 million and $283.8 million , respectively. The agreements are accounted for as either cash flow hedges, to hedge foreign currency fluctuations on certain intercompany debt, or as net investment hedges to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. We had deferred foreign currency gains of $3.8 million at September 30, 2019 and deferred foreign currency losses of $14.5 million at December 31, 2018 , in Accumulated other comprehensive loss associated with our cross currency swap activity. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1: Valuation is based on observable inputs such as quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Valuation is based on inputs such as quoted market prices for similar assets or liabilities in active markets or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Valuation is based upon other unobservable inputs that are significant to the fair value measurement. In making fair value measurements, observable market data must be used when available. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. 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 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 accounting guidance; fair value of common/collective trusts are valued at net asset value (“NAV”), which is based on the fair value of the underlying securities owned by the fund and 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: September 30, December 31, In millions Recorded Amount Fair Value Recorded Amount Fair Value Variable rate debt $ 193.3 $ 193.3 $ 102.2 $ 102.2 Fixed rate debt 935.4 981.8 690.5 691.8 Total debt $ 1,128.7 $ 1,175.1 $ 792.7 $ 794.0 Financial assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2019 In millions Level 1 Level 2 Level 3 NAV Total Recurring fair value measurements Foreign currency contract assets $ — $ 0.2 $ — $ — $ 0.2 Foreign currency contract liabilities — (1.9 ) — — (1.9 ) Deferred compensation plan assets 11.6 — — 8.4 20.0 Total recurring fair value measurements $ 11.6 $ (1.7 ) $ — $ 8.4 $ 18.3 December 31, 2018 In millions Level 1 Level 2 Level 3 NAV Total Recurring fair value measurements Foreign currency contract liabilities $ — $ (30.6 ) $ — $ — $ (30.6 ) Deferred compensation plan assets 17.6 — — 3.3 20.9 Total recurring fair value measurements $ 17.6 $ (30.6 ) $ — $ 3.3 $ (9.7 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We manage our affairs so that we are centrally managed and controlled in the United Kingdom (“U.K.”) and therefore have our tax residency in the U.K. The provision for income taxes consists of provisions for the U.K. and international income taxes. We operate in an international environment with operations in various locations outside the U.K. Accordingly, the consolidated income tax rate is a composite rate reflecting the earnings in the various locations and the applicable rates. The effective income tax rate for the nine months ended September 30, 2019 was 14.2% , compared to 17.0% for the nine months ended September 30, 2018 . We continue to actively pursue initiatives to reduce our effective tax rate. 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. The liability for uncertain tax positions was $48.4 million and $51.4 million at September 30, 2019 and December 31, 2018 , respectively. We record penalties and interest related to unrecognized tax benefits in Provision for income taxes and Net interest expense , respectively, on the Condensed Consolidated Statements of Operations and Comprehensive Income, which is consistent with our past practices. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Components of net periodic benefit cost for our pension plans for the three and nine months ended September 30, 2019 and 2018 were as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Service cost $ 0.7 $ 1.0 $ 1.8 $ 3.1 Interest cost 0.9 3.0 6.3 9.0 Expected return on plan assets (0.2 ) (2.2 ) (3.6 ) (6.7 ) Plan settlement loss (gain) 0.4 2.2 (11.8 ) 2.2 Net periodic benefit expense (income) $ 1.8 $ 4.0 $ (7.3 ) $ 7.6 Components of net periodic benefit expense (income) for our other post-retirement plans for the three and nine months ended September 30, 2019 and 2018 were not material. In 2017, our Board of Directors approved amendments to terminate the Pentair Salaried Plan (the “Salaried Plan”), a U.S. qualified pension plan. The Salaried Plan discontinued accruing benefits on December 31, 2017 and the termination was effective December 31, 2017. Salaried Plan participants whose benefits were not in pay status by July 1, 2018 were given the opportunity to elect a lump-sum (or monthly annuity) payment during a special election window. During the third quarter of 2018, lump-sum payments of $171.9 million were made and resulted in a settlement loss of $2.2 million for the three and nine months ended September 30, 2018. In 2019, we received all required government approvals to complete the termination of the Salaried Plan. In June 2019, we entered into an agreement with an insurance company to purchase from us, through an annuity contract, our remaining obligations under the Salaried Plan. For the nine months ended September 30, 2019 , we contributed $11.1 million to the Salaried Plan as part of the process to settle our obligations. As a result of these actions, a non-cash pre-tax settlement gain of $11.8 million was recorded for the nine months ended September 30, 2019 and is reflected within Plan settlement loss (gain) in the table above. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Shareholders' Equity | Shareholders’ Equity Share repurchases In May 2018, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $750.0 million . The authorization expires on May 31, 2021 . During the nine months ended September 30, 2019 , we repurchased 4.0 million of our shares for $150.0 million . As of September 30, 2019 , we had $250.0 million available for share repurchases under this authorization. Dividends payable On September 24, 2019 , the Board of Directors declared a quarterly cash dividend of $0.18 , payable on November 1, 2019 to shareholders of record at the close of business on October 18, 2019 . As a result, the balance of dividends payable included in Other current liabilities on our Condensed Consolidated Balance Sheets was $30.3 million at September 30, 2019 , compared to $30.8 million at December 31, 2018 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 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 equity income of unconsolidated subsidiaries and 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 Nine months ended In millions September 30, September 30, September 30, September 30, Net sales Aquatic Systems $ 218.7 $ 232.7 $ 709.8 $ 749.3 Filtration Solutions 273.5 240.4 798.4 754.1 Flow Technologies 221.0 238.0 692.7 720.2 Other 0.4 0.3 1.1 1.0 Consolidated $ 713.6 $ 711.4 $ 2,202.0 $ 2,224.6 Segment income (loss) Aquatic Systems $ 54.8 $ 59.9 $ 184.0 $ 199.5 Filtration Solutions 45.1 38.4 128.8 124.4 Flow Technologies 37.9 36.6 109.9 119.7 Other (15.0 ) (13.1 ) (47.1 ) (40.7 ) Consolidated $ 122.8 $ 121.8 $ 375.6 $ 402.9 The following table presents a reconciliation of consolidated segment income to consolidated income from continuing operations before income taxes: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Segment income $ 122.8 $ 121.8 $ 375.6 $ 402.9 Deal-related costs and expenses — — (4.2 ) — Inventory step-up — — (2.2 ) — Restructuring and other (5.9 ) (3.5 ) (13.7 ) (28.1 ) Intangible amortization (7.6 ) (8.6 ) (24.1 ) (27.0 ) Pension settlement (loss) gain (0.4 ) (2.2 ) 11.8 (2.2 ) Asset impairment — — (18.2 ) (6.0 ) (Loss) gain on sale of business (0.1 ) (0.2 ) 3.3 (6.4 ) Loss on early extinguishment of debt — — — (17.1 ) Corporate allocations — — — (11.0 ) Net interest expense (6.9 ) (4.3 ) (23.6 ) (27.9 ) Other expense (0.7 ) (1.2 ) (3.1 ) (3.2 ) Income from continuing operations before income taxes $ 101.2 $ 101.8 $ 301.6 $ 274.0 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | Commitments and Contingencies Leases We determine if an arrangement is a lease at inception. Our lease portfolio principally consists of operating leases related to facilities, machinery, equipment and vehicles. Our lease terms do not include options to extend or terminate the lease until we are reasonably certain that we will exercise that option. Operating lease cost for lease payments is recognized on a straight-line basis over the lease term and principally consists of fixed payments for base rent. The components of lease cost for the three and nine months ended September 30, 2019 were as follows: Three months ended Nine months ended In millions September 30, 2019 Operating lease cost $ 8.0 $ 24.7 Sublease income (0.2 ) (0.7 ) Total lease cost $ 7.8 $ 24.0 Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows: In millions September 30, Operating cash flows from operating leases $ 20.1 Right-of-use assets obtained in exchange for lease obligations 88.0 Other information related to leases was as follows: September 30, Weighted-average remaining lease term of operating leases 5 years Weighted-average discount rate of operating leases 6.3 % Future minimum lease commitments under non-cancelable operating leases as of September 30, 2019 were as follows: In millions Operating Leases Q4 2019 $ 6.4 2020 22.4 2021 18.1 2022 15.6 2023 13.2 Thereafter 22.4 Total lease payments 98.1 Less: imputed interest (15.3 ) Total $ 82.8 Future minimum lease commitments under non-cancelable operating leases based on accounting standards applicable as of December 31, 2018 were as follows: In millions Operating Leases 2019 $ 23.2 2020 17.6 2021 13.3 2022 11.1 2023 9.5 Thereafter 13.8 Total $ 88.5 Warranties and guarantees In connection with our disposition of businesses, product lines and assets, we often provide representations, warranties and indemnities to cover purchasers for various potential liabilities relating to the sold businesses, product lines and assets, such as unknown damages or liabilities relating to the assets and 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 obligations under such indemnifications are not explicitly stated and as a result, the overall amount of these obligations cannot be reasonably estimated due to their inchoate and unknown nature. 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 adverse 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. In connection with the disposition of the Valves & Controls business in 2017, we agreed to indemnify Emerson Electric Co. for certain pre-closing tax liabilities. We have recorded a liability representing the fair value of our expected future obligation for this matter. 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. The changes in the carrying amount of service and product warranties of continuing operations for the nine months ended September 30, 2019 were as follows: In millions September 30, Beginning balance $ 33.9 Service and product warranty provision 37.9 Payments (41.0 ) Foreign currency translation (0.2 ) Ending balance $ 30.6 Stand-by letters of credit, bank guarantees and bonds In certain situations, Tyco International Ltd., Pentair Ltd.’s former parent company (“Tyco”), guaranteed performance by the flow control business of Pentair Ltd. (“Flow Control”) to third parties or provided financial guarantees for financial commitments of Flow Control. In situations where Flow Control and Tyco were unable to obtain a release from these guarantees in connection with the spin-off of Flow Control from Tyco, we will indemnify Tyco for any losses it suffers as a result of such guarantees. 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 September 30, 2019 and December 31, 2018 , the outstanding value of bonds, letters of credit and bank guarantees totaled $105.0 million and $123.6 million , respectively. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Guarantor Information | Supplemental Guarantor Information Pentair plc (the “Parent Company Guarantor”) and PISG (the “Subsidiary Guarantor”), fully and unconditionally, guarantee the notes of PFSA (the “Subsidiary Issuer”). The Subsidiary Guarantor is a Switzerland limited liability company and 100 percent -owned subsidiary of the Parent Company Guarantor. The Subsidiary Issuer is a Luxembourg private limited liability company and 100 percent -owned subsidiary of the Subsidiary Guarantor. The guarantees provided by the Parent Company Guarantor and Subsidiary Guarantor are joint and several. The following supplemental financial information sets forth the Company’s Condensed Consolidating Statements of Operations and Comprehensive Income (Loss), Condensed Consolidating Balance Sheets and Condensed Consolidating Statements of Cash Flows by relevant group within the Company: Pentair plc and PISG as the guarantors, PFSA as issuer of the debt and all other non-guarantor subsidiaries. Condensed consolidating financial information for Pentair plc, PISG and PFSA on a stand-alone basis is presented using the equity method of accounting for subsidiaries. Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three months ended September 30, 2019 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ — $ 713.6 $ — $ 713.6 Cost of goods sold — — — 458.6 — 458.6 Gross profit — — — 255.0 — 255.0 Selling, general and administrative 9.9 (0.2 ) 0.4 116.3 — 126.4 Research and development — — — 19.8 — 19.8 Operating (loss) income (9.9 ) 0.2 (0.4 ) 118.9 — 108.8 (Earnings) loss from continuing operations of investment in subsidiaries (101.2 ) (101.0 ) (103.9 ) — 306.1 — Other (income) expense: Loss on sale of business — — — 0.1 — 0.1 Net interest expense — — 2.5 4.4 — 6.9 Other expense — — — 0.6 — 0.6 Income (loss) from continuing operations before income taxes 91.3 101.2 101.0 113.8 (306.1 ) 101.2 Provision for income taxes — — — 9.9 — 9.9 Net income (loss) from continuing operations 91.3 101.2 101.0 103.9 (306.1 ) 91.3 Income from discontinued operations, net of tax — — — 1.0 — 1.0 Earnings (loss) from discontinued operations of investment in subsidiaries 1.0 1.0 1.0 — (3.0 ) — Net income (loss) $ 92.3 $ 102.2 $ 102.0 $ 104.9 $ (309.1 ) $ 92.3 Comprehensive income (loss), net of tax Net income (loss) $ 92.3 $ 102.2 $ 102.0 $ 104.9 $ (309.1 ) $ 92.3 Changes in cumulative translation adjustment (25.8 ) (25.8 ) (25.8 ) (25.8 ) 77.4 (25.8 ) Changes in market value of derivative financial instruments, net of tax 21.9 21.9 21.9 21.9 (65.7 ) 21.9 Comprehensive income (loss) $ 88.4 $ 98.3 $ 98.1 $ 101.0 $ (297.4 ) $ 88.4 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2019 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ — $ 2,202.0 $ — $ 2,202.0 Cost of goods sold — — — 1,424.7 — 1,424.7 Gross profit — — — 777.3 — 777.3 Selling, general and administrative expenses 15.6 0.1 1.1 389.1 — 405.9 Research and development expenses — — — 61.2 — 61.2 Operating (loss) income (15.6 ) (0.1 ) (1.1 ) 327.0 — 310.2 (Earnings) loss from continuing operations of investment in subsidiaries (274.4 ) (276.5 ) (280.8 ) — 831.7 — Other (income) expense: Gain on sale of business — — — (3.3 ) — (3.3 ) Net interest expense — 2.0 3.2 18.4 — 23.6 Other income — — — (11.7 ) — (11.7 ) Income (loss) from continuing operations before income taxes 258.8 274.4 276.5 323.6 (831.7 ) 301.6 Provision for income taxes — — — 42.8 — 42.8 Net income (loss) from continuing operations 258.8 274.4 276.5 280.8 (831.7 ) 258.8 Loss from discontinued operations, net of tax — — — (0.9 ) — (0.9 ) (Loss) earnings from discontinued operations of investment in subsidiaries (0.9 ) (0.9 ) (0.9 ) — 2.7 — Net income (loss) $ 257.9 $ 273.5 $ 275.6 $ 279.9 $ (829.0 ) $ 257.9 Comprehensive income (loss), net of tax Net income (loss) $ 257.9 $ 273.5 $ 275.6 $ 279.9 $ (829.0 ) $ 257.9 Changes in cumulative translation adjustment (28.3 ) (28.3 ) (28.3 ) (28.3 ) 84.9 (28.3 ) Changes in market value of derivative financial instruments, net of tax 22.8 22.8 22.8 22.8 (68.4 ) 22.8 Comprehensive income (loss) $ 252.4 $ 268.0 $ 270.1 $ 274.4 $ (812.5 ) $ 252.4 Condensed Consolidating Balance Sheet September 30, 2019 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 0.1 $ — $ 0.1 $ 113.0 $ — $ 113.2 Accounts and notes receivable, net 10.7 — 7.1 390.3 (4.1 ) 404.0 Inventories — — — 390.3 — 390.3 Other current assets 0.6 — — 94.5 — 95.1 Total current assets 11.4 — 7.2 988.1 (4.1 ) 1,002.6 Property, plant and equipment, net — — — 277.9 — 277.9 Other assets Investments in subsidiaries 2,072.2 2,071.6 2,825.6 — (6,969.4 ) — Goodwill — — — 2,261.0 — 2,261.0 Intangibles, net — — — 341.4 — 341.4 Other non-current assets 13.3 1.0 1,272.3 184.2 (1,273.3 ) 197.5 Total other assets 2,085.5 2,072.6 4,097.9 2,786.6 (8,242.7 ) 2,799.9 Total assets $ 2,096.9 $ 2,072.6 $ 4,105.1 $ 4,052.6 $ (8,246.8 ) $ 4,080.4 Liabilities and Equity Current liabilities Accounts payable $ 3.3 $ 0.1 $ — $ 254.1 $ (4.1 ) $ 253.4 Employee compensation and benefits 0.2 — — 70.5 — 70.7 Other current liabilities 33.6 0.3 9.4 326.8 — 370.1 Total current liabilities 37.1 0.4 9.4 651.4 (4.1 ) 694.2 Other liabilities Long-term debt 170.5 — 2,024.3 197.2 (1,273.3 ) 1,118.7 Pension and other post-retirement compensation and benefits — — — 88.1 — 88.1 Deferred tax liabilities — — — 111.4 — 111.4 Other non-current liabilities 20.5 — — 178.7 — 199.2 Total liabilities 228.1 0.4 2,033.7 1,226.8 (1,277.4 ) 2,211.6 Equity 1,868.8 2,072.2 2,071.4 2,825.8 (6,969.4 ) 1,868.8 Total liabilities and equity $ 2,096.9 $ 2,072.6 $ 4,105.1 $ 4,052.6 $ (8,246.8 ) $ 4,080.4 Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2019 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Operating activities Net cash provided by (used for) operating activities $ 248.3 $ 272.4 $ 282.8 $ 287.5 $ (826.3 ) $ 264.7 Investing activities Capital expenditures — — — (44.6 ) — (44.6 ) Proceeds from sale of property and equipment — — — 0.4 — 0.4 Proceeds from the sale of businesses — — — 0.7 — 0.7 Acquisitions, net of cash acquired — — — (284.5 ) — (284.5 ) Net intercompany loan activity — (131.8 ) (450.5 ) 109.9 472.4 — Other — — — (1.5 ) — (1.5 ) Net cash (used for) provided by investing activities — (131.8 ) (450.5 ) (219.6 ) 472.4 (329.5 ) Financing activities Net receipts (repayments) of commercial paper and revolving long-term debt — — 113.8 (22.6 ) — 91.2 Proceeds from long-term debt — — 400.0 — — 400.0 Repayments of long-term debt — — (151.5 ) — — (151.5 ) Debt issuance costs — — (6.3 ) — — (6.3 ) Net change in advances to subsidiaries (12.7 ) (140.6 ) (184.7 ) (15.9 ) 353.9 — Shares issued to employees, net of shares withheld 6.8 — — — — 6.8 Repurchases of ordinary shares (150.0 ) — — — — (150.0 ) Dividends paid (92.4 ) — — — — (92.4 ) Net cash (used for) provided by financing activities (248.3 ) (140.6 ) 171.3 (38.5 ) 353.9 97.8 Effect of exchange rate changes on cash and cash equivalents — — (3.6 ) 9.5 — 5.9 Change in cash and cash equivalents — — — 38.9 — 38.9 Cash and cash equivalents, beginning of period 0.1 — 0.1 74.1 — 74.3 Cash and cash equivalents, end of period $ 0.1 $ — $ 0.1 $ 113.0 $ — $ 113.2 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three months ended September 30, 2018 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Net sales $ — $ — $ — $ 711.4 $ — $ 711.4 Cost of goods sold — — — 467.6 — 467.6 Gross profit — — — 243.8 — 243.8 Selling, general and administrative expenses 2.3 — 0.2 113.8 — 116.3 Research and development expenses — — — 19.1 — 19.1 Operating (loss) income (2.3 ) — (0.2 ) 110.9 — 108.4 (Earnings) loss from continuing operations of investment in subsidiaries (93.5 ) (93.3 ) (69.5 ) — 256.3 — Other (income) expense: Loss on sale of business — — — 0.2 — 0.2 Net interest (income) expense — (0.2 ) 1.7 2.8 — 4.3 Other expense — — — 2.1 — 2.1 Income (loss) from continuing operations before income taxes 91.2 93.5 67.6 105.8 (256.3 ) 101.8 Provision for income taxes — — — 10.6 — 10.6 Net income (loss) from continuing operations 91.2 93.5 67.6 95.2 (256.3 ) 91.2 Income from discontinued operations, net of tax — — — 18.9 — 18.9 (Loss) earnings from discontinued operations of investment in subsidiaries 18.9 18.9 18.9 — (56.7 ) — Net income (loss) $ 110.1 $ 112.4 $ 86.5 $ 114.1 $ (313.0 ) $ 110.1 Comprehensive income (loss), net of tax Net income (loss) $ 110.1 $ 112.4 $ 86.5 $ 114.1 $ (313.0 ) $ 110.1 Changes in cumulative translation adjustment (2.1 ) (2.1 ) (2.1 ) (2.1 ) 6.3 (2.1 ) Changes in market value of derivative financial instruments, net of tax (1.0 ) (1.0 ) (1.0 ) (1.0 ) 3.0 (1.0 ) Comprehensive income (loss) $ 107.0 $ 109.3 $ 83.4 $ 111.0 $ (303.7 ) $ 107.0 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2018 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Net sales $ — $ — $ — $ 2,224.6 $ — $ 2,224.6 Cost of goods sold — — — 1,444.9 — 1,444.9 Gross profit — — — 779.7 — 779.7 Selling, general and administrative 10.4 — 0.7 387.9 — 399.0 Research and development — — — 57.0 — 57.0 Operating (loss) income (10.4 ) — (0.7 ) 334.8 — 323.7 (Earnings) loss from continuing operations of investment in subsidiaries (240.4 ) (239.4 ) (278.9 ) — 758.7 — Other (income) expense: Loss on sale of business — — — 6.4 — 6.4 Loss on early extinguishment of debt — — 17.1 — — 17.1 Net interest (income) expense — (1.0 ) 21.7 7.2 — 27.9 Other income — — — (1.7 ) — (1.7 ) Income (loss) from continuing operations before income taxes 230.0 240.4 239.4 322.9 (758.7 ) 274.0 Provision for income taxes 2.5 — — 44.0 — 46.5 Net income (loss) from continuing operations 227.5 240.4 239.4 278.9 (758.7 ) 227.5 Income from discontinued operations, net of tax — — — 27.0 — 27.0 Earnings (loss) from discontinued operations of investment in subsidiaries 27.0 27.0 27.0 — (81.0 ) — Net income (loss) $ 254.5 $ 267.4 $ 266.4 $ 305.9 $ (839.7 ) $ 254.5 Comprehensive income (loss), net of tax Net income (loss) $ 254.5 $ 267.4 $ 266.4 $ 305.9 $ (839.7 ) $ 254.5 Changes in cumulative translation adjustment 23.1 23.1 23.1 23.1 (69.3 ) 23.1 Changes in market value of derivative financial instruments, net of tax (0.7 ) (0.7 ) (0.7 ) (0.7 ) 2.1 (0.7 ) Comprehensive income (loss) $ 276.9 $ 289.8 $ 288.8 $ 328.3 $ (906.9 ) $ 276.9 Condensed Consolidating Balance Sheet December 31, 2018 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 0.1 $ — $ 0.1 $ 74.1 $ — $ 74.3 Accounts and notes receivable, net 4.6 — — 483.6 — 488.2 Inventories — — — 387.5 — 387.5 Other current assets 3.4 — 2.2 99.2 (15.4 ) 89.4 Total current assets 8.1 — 2.3 1,044.4 (15.4 ) 1,039.4 Property, plant and equipment, net — — — 272.6 — 272.6 Other assets Investments in subsidiaries 1,903.8 2,036.1 2,675.7 — (6,615.6 ) — Goodwill — — — 2,072.7 — 2,072.7 Intangibles, net — — — 276.3 — 276.3 Other non-current assets 23.3 — 696.1 729.7 (1,303.6 ) 145.5 Total other assets 1,927.1 2,036.1 3,371.8 3,078.7 (7,919.2 ) 2,494.5 Total assets $ 1,935.2 $ 2,036.1 $ 3,374.1 $ 4,395.7 $ (7,934.6 ) $ 3,806.5 Liabilities and Equity Current liabilities Accounts payable $ 0.9 $ — $ — $ 377.7 $ — $ 378.6 Employee compensation and benefits 0.2 — — 111.5 — 111.7 Other current liabilities 47.6 1.5 4.4 290.3 (15.4 ) 328.4 Total current liabilities 48.7 1.5 4.4 779.5 (15.4 ) 818.7 Other liabilities Long-term debt 29.9 130.8 1,333.9 596.6 (1,303.6 ) 787.6 Pension and other post-retirement compensation and benefits — — — 90.0 — 90.0 Deferred tax liabilities — — — 105.9 — 105.9 Other non-current liabilities 20.5 — — 147.7 — 168.2 Total liabilities 99.1 132.3 1,338.3 1,719.7 (1,319.0 ) 1,970.4 Equity 1,836.1 1,903.8 2,035.8 2,676.0 (6,615.6 ) 1,836.1 Total liabilities and equity $ 1,935.2 $ 2,036.1 $ 3,374.1 $ 4,395.7 $ (7,934.6 ) $ 3,806.5 Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2018 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Operating activities Net cash provided by (used for) operating activities $ 197.2 $ 269.2 $ 274.7 $ 464.1 $ (920.6 ) $ 284.6 Investing activities Capital expenditures — — — (33.8 ) — (33.8 ) Proceeds from sale of property and equipment — — — (0.4 ) — (0.4 ) Payments due to sale of businesses, net — — — (12.8 ) — (12.8 ) Acquisitions, net of cash acquired — — — (0.9 ) — (0.9 ) Net intercompany loan activity — 24.9 (62.0 ) 618.7 (581.6 ) — Net cash provided by (used for) investing activities of continuing operations — 24.9 (62.0 ) 570.8 (581.6 ) (47.9 ) Net cash used for investing activities of discontinued operations — — — (7.1 ) — (7.1 ) Net cash provided by (used for) investing activities — 24.9 (62.0 ) 563.7 (581.6 ) (55.0 ) Financing activities Net receipts (repayments) of commercial paper and revolving long-term debt — — 65.0 (19.0 ) — 46.0 Repayments of long-term debt — — (675.1 ) — — (675.1 ) Premium paid on early extinguishment of debt — — (16.0 ) — — (16.0 ) Debt issuance costs — — (2.0 ) — — (2.0 ) Transfer of cash to nVent — — — (74.2 ) — (74.2 ) Distribution from nVent spin-off — — 993.6 — — 993.6 Net change in advances to subsidiaries 343.6 (294.1 ) (563.9 ) (987.8 ) 1,502.2 — Shares issued to employees, net of shares withheld 16.0 — — — — 16.0 Repurchases of ordinary shares (400.0 ) — — — — (400.0 ) Dividends paid (156.7 ) — — — — (156.7 ) Net cash (used for) provided by financing activities (197.1 ) (294.1 ) (198.4 ) (1,081.0 ) 1,502.2 (268.4 ) Change in cash held for sale — — — 27.0 — 27.0 Effect of exchange rate changes on cash and cash equivalents — — (14.2 ) 4.4 — (9.8 ) Change in cash and cash equivalents 0.1 — 0.1 (21.8 ) — (21.6 ) Cash and cash equivalents, beginning of period — — — 86.3 — 86.3 Cash and cash equivalents, end of period $ 0.1 $ — $ 0.1 $ 64.5 $ — $ 64.7 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset and Liability | Contract assets and liabilities Contract assets and liabilities consisted of the following: In millions September 30, December 31, $ Change % Change Contract assets $ 37.3 $ 36.5 $ 0.8 2.2 % Contract liabilities 34.4 32.8 1.6 4.9 % Net contract assets $ 2.9 $ 3.7 $ (0.8 ) (21.6 )% | |
Disaggregation of Revenue | Geographic net sales information, based on geographic destination of the sale, was as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, U.S. $ 445.0 $ 438.5 $ 1,382.1 $ 1,395.1 Western Europe 97.8 97.1 309.0 311.2 Developing (1) 119.9 117.6 357.8 346.0 Other Developed (2) 50.9 58.2 153.1 172.3 Consolidated net sales $ 713.6 $ 711.4 $ 2,202.0 $ 2,224.6 (1) Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia. (2) Other Developed includes Australia, Canada and Japan. Vertical net sales information was as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Residential $ 395.5 $ 397.6 $ 1,230.1 $ 1,247.3 Commercial 154.3 155.8 475.7 475.4 Industrial 163.8 158.0 496.2 501.9 Consolidated net sales $ 713.6 $ 711.4 $ 2,202.0 $ 2,224.6 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Operating results of the discontinued operation is summarized below: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Net sales $ — $ — $ — $ 693.9 Cost of goods sold — — — 424.0 Gross profit — — — 269.9 Selling, general and administrative expenses 1.2 2.5 2.0 233.5 Research and development expenses — — — 14.6 Operating (loss) income $ (1.2 ) $ (2.5 ) $ (2.0 ) $ 21.8 (Loss) income from discontinued operations before income taxes $ (1.3 ) $ 14.8 $ (2.5 ) $ 34.6 Income tax (benefit) provision (2.3 ) (4.1 ) (1.6 ) 7.6 Income (loss) from discontinued operations, net of tax $ 1.0 $ 18.9 $ (0.9 ) $ 27.0 |
Share Plans (Tables)
Share Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Expense | Total share-based compensation expense for the three and nine months ended September 30, 2019 and 2018 was as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Restricted stock units $ 2.5 $ 2.4 $ 8.2 $ 6.7 Stock options 0.9 1.3 3.4 3.5 Performance share units 1.2 1.4 3.7 6.2 Total share-based compensation expense $ 4.6 $ 5.1 $ 15.3 $ 16.4 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | We estimated the fair value of each stock option award issued in the annual share-based compensation grant using a Black-Scholes option pricing model, modified for dividends and using the following assumptions: 2019 Annual Grant Risk-free interest rate 2.89 % Expected dividend yield 1.78 % Expected share price volatility 23.3 % Expected term (years) 6.1 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Related Costs | Restructuring-related costs included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income included costs for severance and other restructuring costs as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Severance and related costs $ 2.1 $ 2.8 $ 9.6 $ 12.8 Other 0.8 0.7 1.1 21.3 Total restructuring costs $ 2.9 $ 3.5 $ 10.7 $ 34.1 |
Restructuring Costs By Segment [Table Text Block] | Restructuring costs by reportable segment were as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Aquatic Systems $ 0.2 $ 0.6 $ 3.1 $ 3.6 Filtration Solutions 1.5 0.9 3.1 14.4 Flow Technologies 0.3 0.7 2.4 8.7 Other 0.9 1.3 2.1 7.4 Consolidated $ 2.9 $ 3.5 $ 10.7 $ 34.1 |
Restructuring Accrual Activity Recorded on Consolidated Balance Sheets | Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows for the nine months ended September 30, 2019 : In millions September 30, Beginning balance $ 27.1 Costs incurred 9.6 Cash payments and other (19.7 ) Ending balance $ 17.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three months ended Nine months ended In millions, except per-share data September 30, September 30, September 30, September 30, Net income $ 92.3 $ 110.1 $ 257.9 $ 254.5 Net income from continuing operations $ 91.3 $ 91.2 $ 258.8 $ 227.5 Weighted average ordinary shares outstanding Basic 168.1 174.3 169.7 176.8 Dilutive impact of stock options, restricted stock units and performance share units 0.5 1.4 0.6 1.7 Diluted 168.6 175.7 170.3 178.5 Earnings (loss) per ordinary share Basic Continuing operations $ 0.54 $ 0.52 $ 1.53 $ 1.29 Discontinued operations 0.01 0.11 (0.01 ) 0.15 Basic earnings per ordinary share $ 0.55 $ 0.63 $ 1.52 $ 1.44 Diluted Continuing operations $ 0.54 $ 0.52 $ 1.52 $ 1.28 Discontinued operations 0.01 0.11 (0.01 ) 0.15 Diluted earnings per ordinary share $ 0.55 $ 0.63 $ 1.51 $ 1.43 Anti-dilutive stock options excluded from the calculation of diluted earnings per share 2.2 1.3 2.0 0.6 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | In millions September 30, December 31, Inventories Raw materials and supplies $ 198.0 $ 191.3 Work-in-process 63.4 64.0 Finished goods 128.9 132.2 Total inventories $ 390.3 $ 387.5 Other current assets Cost in excess of billings $ 37.3 $ 36.5 Prepaid expenses 42.7 36.7 Prepaid income taxes 9.4 8.5 Other current assets 5.7 7.7 Total other current assets $ 95.1 $ 89.4 Property, plant and equipment, net Land and land improvements $ 33.1 $ 33.5 Buildings and leasehold improvements 186.4 178.9 Machinery and equipment 608.7 593.8 Construction in progress 40.1 35.7 Total property, plant and equipment 868.3 841.9 Accumulated depreciation and amortization 590.4 569.3 Total property, plant and equipment, net $ 277.9 $ 272.6 Other non-current assets Right-of-use lease assets $ 80.0 $ — Deferred income taxes 26.3 26.2 Deferred compensation plan assets 20.0 20.9 Other non-current assets 71.2 98.4 Total other non-current assets $ 197.5 $ 145.5 Other current liabilities Dividends payable $ 30.3 $ 30.8 Accrued warranty 30.6 33.9 Accrued rebates and incentives 105.1 76.9 Billings in excess of cost 21.5 21.3 Current lease liability 19.8 — Income taxes payable 12.0 10.4 Accrued restructuring 17.0 27.1 Other current liabilities 133.8 128.0 Total other current liabilities $ 370.1 $ 328.4 Other non-current liabilities Long-term lease liability $ 63.0 $ — Income taxes payable 45.8 46.8 Self-insurance liabilities 43.1 47.7 Deferred compensation plan liabilities 20.0 20.9 Foreign currency contract liabilities 1.9 30.6 Other non-current liabilities 25.4 22.2 Total other non-current liabilities $ 199.2 $ 168.2 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segment were as follows: In millions December 31, Acquisitions Foreign currency translation/other September 30, Aquatic Systems $ 965.9 $ — $ (1.0 ) $ 964.9 Filtration Solutions 643.5 215.5 (19.8 ) 839.2 Flow Technologies 463.3 — (6.4 ) 456.9 Total goodwill $ 2,072.7 $ 215.5 $ (27.2 ) $ 2,261.0 |
Detail of Identifiable Intangible Assets | Identifiable intangible assets consisted of the following: September 30, December 31, In millions Cost Accumulated amortization Net Cost Accumulated amortization Net Definite-life intangibles Customer relationships $ 415.9 $ (260.8 ) $ 155.1 $ 347.1 $ (247.9 ) $ 99.2 Trade names — — — 0.4 (0.4 ) — Proprietary technology and patents 42.8 (28.8 ) 14.0 86.2 (68.4 ) 17.8 Total definite-life intangibles 458.7 (289.6 ) 169.1 433.7 (316.7 ) 117.0 Indefinite-life intangibles Trade names 172.3 — 172.3 159.3 — 159.3 Total intangibles $ 631.0 $ (289.6 ) $ 341.4 $ 593.0 $ (316.7 ) $ 276.3 |
Estimated Future Amortization Expense for Identifiable Intangible Assets | Estimated future amortization expense for identifiable intangible assets during the remainder of 2019 and the next five years is as follows: Q4 In millions 2019 2020 2021 2022 2023 2024 Estimated amortization expense $ 7.4 $ 27.1 $ 22.1 $ 15.2 $ 12.8 $ 12.3 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Average Interest Rates on Debt Outstanding | Debt and the average interest rates on debt outstanding were as follows: In millions Average interest rate as of September 30, 2019 Maturity Year September 30, December 31, Commercial paper 2.575% 2023 $ 189.7 $ 76.0 Revolving credit facilities 3.116% 2023 3.6 26.2 Senior notes - fixed rate (1) 2.650% 2019 250.0 250.0 Senior notes - fixed rate - Euro (1) 2.450% 2019 — 155.1 Senior notes - fixed rate (1) 3.625% 2020 74.0 74.0 Senior notes - fixed rate (1) 5.000% 2021 103.8 103.8 Senior notes - fixed rate (1) 3.150% 2022 88.3 88.3 Senior notes - fixed rate (1) 4.650% 2025 19.3 19.3 Senior notes - fixed rate (1) 4.500% 2029 400.0 — Unamortized debt issuance costs and discounts N/A N/A (10.0 ) (5.1 ) Total debt $ 1,118.7 $ 787.6 (1) Senior notes are guaranteed as to payment by Pentair and PISG. |
Debt Outstanding Matures on Calendar Year Basis | Debt outstanding, excluding unamortized issuance costs and discounts, at September 30, 2019 matures on a calendar year basis as follows: Q4 In millions 2019 2020 2021 2022 2023 2024 Thereafter Total Contractual debt obligation maturities $ 250.0 $ 74.0 $ 103.8 $ 88.3 $ 193.3 $ — $ 419.3 $ 1,128.7 |
Derivatives and Financial Ins_2
Derivatives and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis were as follows: September 30, 2019 In millions Level 1 Level 2 Level 3 NAV Total Recurring fair value measurements Foreign currency contract assets $ — $ 0.2 $ — $ — $ 0.2 Foreign currency contract liabilities — (1.9 ) — — (1.9 ) Deferred compensation plan assets 11.6 — — 8.4 20.0 Total recurring fair value measurements $ 11.6 $ (1.7 ) $ — $ 8.4 $ 18.3 December 31, 2018 In millions Level 1 Level 2 Level 3 NAV Total Recurring fair value measurements Foreign currency contract liabilities $ — $ (30.6 ) $ — $ — $ (30.6 ) Deferred compensation plan assets 17.6 — — 3.3 20.9 Total recurring fair value measurements $ 17.6 $ (30.6 ) $ — $ 3.3 $ (9.7 ) |
Recorded Amounts and Estimated Fair Values of Long-term Debt and Derivative Financial Instruments | The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows: September 30, December 31, In millions Recorded Amount Fair Value Recorded Amount Fair Value Variable rate debt $ 193.3 $ 193.3 $ 102.2 $ 102.2 Fixed rate debt 935.4 981.8 690.5 691.8 Total debt $ 1,128.7 $ 1,175.1 $ 792.7 $ 794.0 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Components of net periodic benefit cost for our pension plans for the three and nine months ended September 30, 2019 and 2018 were as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Service cost $ 0.7 $ 1.0 $ 1.8 $ 3.1 Interest cost 0.9 3.0 6.3 9.0 Expected return on plan assets (0.2 ) (2.2 ) (3.6 ) (6.7 ) Plan settlement loss (gain) 0.4 2.2 (11.8 ) 2.2 Net periodic benefit expense (income) $ 1.8 $ 4.0 $ (7.3 ) $ 7.6 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | Financial information by reportable segment is as follows: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Net sales Aquatic Systems $ 218.7 $ 232.7 $ 709.8 $ 749.3 Filtration Solutions 273.5 240.4 798.4 754.1 Flow Technologies 221.0 238.0 692.7 720.2 Other 0.4 0.3 1.1 1.0 Consolidated $ 713.6 $ 711.4 $ 2,202.0 $ 2,224.6 Segment income (loss) Aquatic Systems $ 54.8 $ 59.9 $ 184.0 $ 199.5 Filtration Solutions 45.1 38.4 128.8 124.4 Flow Technologies 37.9 36.6 109.9 119.7 Other (15.0 ) (13.1 ) (47.1 ) (40.7 ) Consolidated $ 122.8 $ 121.8 $ 375.6 $ 402.9 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a reconciliation of consolidated segment income to consolidated income from continuing operations before income taxes: Three months ended Nine months ended In millions September 30, September 30, September 30, September 30, Segment income $ 122.8 $ 121.8 $ 375.6 $ 402.9 Deal-related costs and expenses — — (4.2 ) — Inventory step-up — — (2.2 ) — Restructuring and other (5.9 ) (3.5 ) (13.7 ) (28.1 ) Intangible amortization (7.6 ) (8.6 ) (24.1 ) (27.0 ) Pension settlement (loss) gain (0.4 ) (2.2 ) 11.8 (2.2 ) Asset impairment — — (18.2 ) (6.0 ) (Loss) gain on sale of business (0.1 ) (0.2 ) 3.3 (6.4 ) Loss on early extinguishment of debt — — — (17.1 ) Corporate allocations — — — (11.0 ) Net interest expense (6.9 ) (4.3 ) (23.6 ) (27.9 ) Other expense (0.7 ) (1.2 ) (3.1 ) (3.2 ) Income from continuing operations before income taxes $ 101.2 $ 101.8 $ 301.6 $ 274.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Cost and Other Information Related to Leases | Other information related to leases was as follows: September 30, Weighted-average remaining lease term of operating leases 5 years Weighted-average discount rate of operating leases 6.3 % The components of lease cost for the three and nine months ended September 30, 2019 were as follows: Three months ended Nine months ended In millions September 30, 2019 Operating lease cost $ 8.0 $ 24.7 Sublease income (0.2 ) (0.7 ) Total lease cost $ 7.8 $ 24.0 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows: In millions September 30, Operating cash flows from operating leases $ 20.1 Right-of-use assets obtained in exchange for lease obligations 88.0 |
Future Minimum Lease Commitments Under Non-cancelable Operating Leases | Future minimum lease commitments under non-cancelable operating leases as of September 30, 2019 were as follows: In millions Operating Leases Q4 2019 $ 6.4 2020 22.4 2021 18.1 2022 15.6 2023 13.2 Thereafter 22.4 Total lease payments 98.1 Less: imputed interest (15.3 ) Total $ 82.8 |
Changes in Carrying Amount of Service and Product Warranties | The changes in the carrying amount of service and product warranties of continuing operations for the nine months ended September 30, 2019 were as follows: In millions September 30, Beginning balance $ 33.9 Service and product warranty provision 37.9 Payments (41.0 ) Foreign currency translation (0.2 ) Ending balance $ 30.6 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three months ended September 30, 2019 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ — $ 713.6 $ — $ 713.6 Cost of goods sold — — — 458.6 — 458.6 Gross profit — — — 255.0 — 255.0 Selling, general and administrative 9.9 (0.2 ) 0.4 116.3 — 126.4 Research and development — — — 19.8 — 19.8 Operating (loss) income (9.9 ) 0.2 (0.4 ) 118.9 — 108.8 (Earnings) loss from continuing operations of investment in subsidiaries (101.2 ) (101.0 ) (103.9 ) — 306.1 — Other (income) expense: Loss on sale of business — — — 0.1 — 0.1 Net interest expense — — 2.5 4.4 — 6.9 Other expense — — — 0.6 — 0.6 Income (loss) from continuing operations before income taxes 91.3 101.2 101.0 113.8 (306.1 ) 101.2 Provision for income taxes — — — 9.9 — 9.9 Net income (loss) from continuing operations 91.3 101.2 101.0 103.9 (306.1 ) 91.3 Income from discontinued operations, net of tax — — — 1.0 — 1.0 Earnings (loss) from discontinued operations of investment in subsidiaries 1.0 1.0 1.0 — (3.0 ) — Net income (loss) $ 92.3 $ 102.2 $ 102.0 $ 104.9 $ (309.1 ) $ 92.3 Comprehensive income (loss), net of tax Net income (loss) $ 92.3 $ 102.2 $ 102.0 $ 104.9 $ (309.1 ) $ 92.3 Changes in cumulative translation adjustment (25.8 ) (25.8 ) (25.8 ) (25.8 ) 77.4 (25.8 ) Changes in market value of derivative financial instruments, net of tax 21.9 21.9 21.9 21.9 (65.7 ) 21.9 Comprehensive income (loss) $ 88.4 $ 98.3 $ 98.1 $ 101.0 $ (297.4 ) $ 88.4 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2019 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ — $ 2,202.0 $ — $ 2,202.0 Cost of goods sold — — — 1,424.7 — 1,424.7 Gross profit — — — 777.3 — 777.3 Selling, general and administrative expenses 15.6 0.1 1.1 389.1 — 405.9 Research and development expenses — — — 61.2 — 61.2 Operating (loss) income (15.6 ) (0.1 ) (1.1 ) 327.0 — 310.2 (Earnings) loss from continuing operations of investment in subsidiaries (274.4 ) (276.5 ) (280.8 ) — 831.7 — Other (income) expense: Gain on sale of business — — — (3.3 ) — (3.3 ) Net interest expense — 2.0 3.2 18.4 — 23.6 Other income — — — (11.7 ) — (11.7 ) Income (loss) from continuing operations before income taxes 258.8 274.4 276.5 323.6 (831.7 ) 301.6 Provision for income taxes — — — 42.8 — 42.8 Net income (loss) from continuing operations 258.8 274.4 276.5 280.8 (831.7 ) 258.8 Loss from discontinued operations, net of tax — — — (0.9 ) — (0.9 ) (Loss) earnings from discontinued operations of investment in subsidiaries (0.9 ) (0.9 ) (0.9 ) — 2.7 — Net income (loss) $ 257.9 $ 273.5 $ 275.6 $ 279.9 $ (829.0 ) $ 257.9 Comprehensive income (loss), net of tax Net income (loss) $ 257.9 $ 273.5 $ 275.6 $ 279.9 $ (829.0 ) $ 257.9 Changes in cumulative translation adjustment (28.3 ) (28.3 ) (28.3 ) (28.3 ) 84.9 (28.3 ) Changes in market value of derivative financial instruments, net of tax 22.8 22.8 22.8 22.8 (68.4 ) 22.8 Comprehensive income (loss) $ 252.4 $ 268.0 $ 270.1 $ 274.4 $ (812.5 ) $ 252.4 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three months ended September 30, 2018 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Net sales $ — $ — $ — $ 711.4 $ — $ 711.4 Cost of goods sold — — — 467.6 — 467.6 Gross profit — — — 243.8 — 243.8 Selling, general and administrative expenses 2.3 — 0.2 113.8 — 116.3 Research and development expenses — — — 19.1 — 19.1 Operating (loss) income (2.3 ) — (0.2 ) 110.9 — 108.4 (Earnings) loss from continuing operations of investment in subsidiaries (93.5 ) (93.3 ) (69.5 ) — 256.3 — Other (income) expense: Loss on sale of business — — — 0.2 — 0.2 Net interest (income) expense — (0.2 ) 1.7 2.8 — 4.3 Other expense — — — 2.1 — 2.1 Income (loss) from continuing operations before income taxes 91.2 93.5 67.6 105.8 (256.3 ) 101.8 Provision for income taxes — — — 10.6 — 10.6 Net income (loss) from continuing operations 91.2 93.5 67.6 95.2 (256.3 ) 91.2 Income from discontinued operations, net of tax — — — 18.9 — 18.9 (Loss) earnings from discontinued operations of investment in subsidiaries 18.9 18.9 18.9 — (56.7 ) — Net income (loss) $ 110.1 $ 112.4 $ 86.5 $ 114.1 $ (313.0 ) $ 110.1 Comprehensive income (loss), net of tax Net income (loss) $ 110.1 $ 112.4 $ 86.5 $ 114.1 $ (313.0 ) $ 110.1 Changes in cumulative translation adjustment (2.1 ) (2.1 ) (2.1 ) (2.1 ) 6.3 (2.1 ) Changes in market value of derivative financial instruments, net of tax (1.0 ) (1.0 ) (1.0 ) (1.0 ) 3.0 (1.0 ) Comprehensive income (loss) $ 107.0 $ 109.3 $ 83.4 $ 111.0 $ (303.7 ) $ 107.0 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine months ended September 30, 2018 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Net sales $ — $ — $ — $ 2,224.6 $ — $ 2,224.6 Cost of goods sold — — — 1,444.9 — 1,444.9 Gross profit — — — 779.7 — 779.7 Selling, general and administrative 10.4 — 0.7 387.9 — 399.0 Research and development — — — 57.0 — 57.0 Operating (loss) income (10.4 ) — (0.7 ) 334.8 — 323.7 (Earnings) loss from continuing operations of investment in subsidiaries (240.4 ) (239.4 ) (278.9 ) — 758.7 — Other (income) expense: Loss on sale of business — — — 6.4 — 6.4 Loss on early extinguishment of debt — — 17.1 — — 17.1 Net interest (income) expense — (1.0 ) 21.7 7.2 — 27.9 Other income — — — (1.7 ) — (1.7 ) Income (loss) from continuing operations before income taxes 230.0 240.4 239.4 322.9 (758.7 ) 274.0 Provision for income taxes 2.5 — — 44.0 — 46.5 Net income (loss) from continuing operations 227.5 240.4 239.4 278.9 (758.7 ) 227.5 Income from discontinued operations, net of tax — — — 27.0 — 27.0 Earnings (loss) from discontinued operations of investment in subsidiaries 27.0 27.0 27.0 — (81.0 ) — Net income (loss) $ 254.5 $ 267.4 $ 266.4 $ 305.9 $ (839.7 ) $ 254.5 Comprehensive income (loss), net of tax Net income (loss) $ 254.5 $ 267.4 $ 266.4 $ 305.9 $ (839.7 ) $ 254.5 Changes in cumulative translation adjustment 23.1 23.1 23.1 23.1 (69.3 ) 23.1 Changes in market value of derivative financial instruments, net of tax (0.7 ) (0.7 ) (0.7 ) (0.7 ) 2.1 (0.7 ) Comprehensive income (loss) $ 276.9 $ 289.8 $ 288.8 $ 328.3 $ (906.9 ) $ 276.9 |
Schedule of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2019 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 0.1 $ — $ 0.1 $ 113.0 $ — $ 113.2 Accounts and notes receivable, net 10.7 — 7.1 390.3 (4.1 ) 404.0 Inventories — — — 390.3 — 390.3 Other current assets 0.6 — — 94.5 — 95.1 Total current assets 11.4 — 7.2 988.1 (4.1 ) 1,002.6 Property, plant and equipment, net — — — 277.9 — 277.9 Other assets Investments in subsidiaries 2,072.2 2,071.6 2,825.6 — (6,969.4 ) — Goodwill — — — 2,261.0 — 2,261.0 Intangibles, net — — — 341.4 — 341.4 Other non-current assets 13.3 1.0 1,272.3 184.2 (1,273.3 ) 197.5 Total other assets 2,085.5 2,072.6 4,097.9 2,786.6 (8,242.7 ) 2,799.9 Total assets $ 2,096.9 $ 2,072.6 $ 4,105.1 $ 4,052.6 $ (8,246.8 ) $ 4,080.4 Liabilities and Equity Current liabilities Accounts payable $ 3.3 $ 0.1 $ — $ 254.1 $ (4.1 ) $ 253.4 Employee compensation and benefits 0.2 — — 70.5 — 70.7 Other current liabilities 33.6 0.3 9.4 326.8 — 370.1 Total current liabilities 37.1 0.4 9.4 651.4 (4.1 ) 694.2 Other liabilities Long-term debt 170.5 — 2,024.3 197.2 (1,273.3 ) 1,118.7 Pension and other post-retirement compensation and benefits — — — 88.1 — 88.1 Deferred tax liabilities — — — 111.4 — 111.4 Other non-current liabilities 20.5 — — 178.7 — 199.2 Total liabilities 228.1 0.4 2,033.7 1,226.8 (1,277.4 ) 2,211.6 Equity 1,868.8 2,072.2 2,071.4 2,825.8 (6,969.4 ) 1,868.8 Total liabilities and equity $ 2,096.9 $ 2,072.6 $ 4,105.1 $ 4,052.6 $ (8,246.8 ) $ 4,080.4 Condensed Consolidating Balance Sheet December 31, 2018 In millions Parent Company Guarantor Subsidiary Subsidiary Issuer Non-guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 0.1 $ — $ 0.1 $ 74.1 $ — $ 74.3 Accounts and notes receivable, net 4.6 — — 483.6 — 488.2 Inventories — — — 387.5 — 387.5 Other current assets 3.4 — 2.2 99.2 (15.4 ) 89.4 Total current assets 8.1 — 2.3 1,044.4 (15.4 ) 1,039.4 Property, plant and equipment, net — — — 272.6 — 272.6 Other assets Investments in subsidiaries 1,903.8 2,036.1 2,675.7 — (6,615.6 ) — Goodwill — — — 2,072.7 — 2,072.7 Intangibles, net — — — 276.3 — 276.3 Other non-current assets 23.3 — 696.1 729.7 (1,303.6 ) 145.5 Total other assets 1,927.1 2,036.1 3,371.8 3,078.7 (7,919.2 ) 2,494.5 Total assets $ 1,935.2 $ 2,036.1 $ 3,374.1 $ 4,395.7 $ (7,934.6 ) $ 3,806.5 Liabilities and Equity Current liabilities Accounts payable $ 0.9 $ — $ — $ 377.7 $ — $ 378.6 Employee compensation and benefits 0.2 — — 111.5 — 111.7 Other current liabilities 47.6 1.5 4.4 290.3 (15.4 ) 328.4 Total current liabilities 48.7 1.5 4.4 779.5 (15.4 ) 818.7 Other liabilities Long-term debt 29.9 130.8 1,333.9 596.6 (1,303.6 ) 787.6 Pension and other post-retirement compensation and benefits — — — 90.0 — 90.0 Deferred tax liabilities — — — 105.9 — 105.9 Other non-current liabilities 20.5 — — 147.7 — 168.2 Total liabilities 99.1 132.3 1,338.3 1,719.7 (1,319.0 ) 1,970.4 Equity 1,836.1 1,903.8 2,035.8 2,676.0 (6,615.6 ) 1,836.1 Total liabilities and equity $ 1,935.2 $ 2,036.1 $ 3,374.1 $ 4,395.7 $ (7,934.6 ) $ 3,806.5 |
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2019 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Operating activities Net cash provided by (used for) operating activities $ 248.3 $ 272.4 $ 282.8 $ 287.5 $ (826.3 ) $ 264.7 Investing activities Capital expenditures — — — (44.6 ) — (44.6 ) Proceeds from sale of property and equipment — — — 0.4 — 0.4 Proceeds from the sale of businesses — — — 0.7 — 0.7 Acquisitions, net of cash acquired — — — (284.5 ) — (284.5 ) Net intercompany loan activity — (131.8 ) (450.5 ) 109.9 472.4 — Other — — — (1.5 ) — (1.5 ) Net cash (used for) provided by investing activities — (131.8 ) (450.5 ) (219.6 ) 472.4 (329.5 ) Financing activities Net receipts (repayments) of commercial paper and revolving long-term debt — — 113.8 (22.6 ) — 91.2 Proceeds from long-term debt — — 400.0 — — 400.0 Repayments of long-term debt — — (151.5 ) — — (151.5 ) Debt issuance costs — — (6.3 ) — — (6.3 ) Net change in advances to subsidiaries (12.7 ) (140.6 ) (184.7 ) (15.9 ) 353.9 — Shares issued to employees, net of shares withheld 6.8 — — — — 6.8 Repurchases of ordinary shares (150.0 ) — — — — (150.0 ) Dividends paid (92.4 ) — — — — (92.4 ) Net cash (used for) provided by financing activities (248.3 ) (140.6 ) 171.3 (38.5 ) 353.9 97.8 Effect of exchange rate changes on cash and cash equivalents — — (3.6 ) 9.5 — 5.9 Change in cash and cash equivalents — — — 38.9 — 38.9 Cash and cash equivalents, beginning of period 0.1 — 0.1 74.1 — 74.3 Cash and cash equivalents, end of period $ 0.1 $ — $ 0.1 $ 113.0 $ — $ 113.2 Condensed Consolidating Statement of Cash Flows Nine months ended September 30, 2018 In millions Parent Subsidiary Subsidiary Non-guarantor Eliminations Consolidated Operating activities Net cash provided by (used for) operating activities $ 197.2 $ 269.2 $ 274.7 $ 464.1 $ (920.6 ) $ 284.6 Investing activities Capital expenditures — — — (33.8 ) — (33.8 ) Proceeds from sale of property and equipment — — — (0.4 ) — (0.4 ) Payments due to sale of businesses, net — — — (12.8 ) — (12.8 ) Acquisitions, net of cash acquired — — — (0.9 ) — (0.9 ) Net intercompany loan activity — 24.9 (62.0 ) 618.7 (581.6 ) — Net cash provided by (used for) investing activities of continuing operations — 24.9 (62.0 ) 570.8 (581.6 ) (47.9 ) Net cash used for investing activities of discontinued operations — — — (7.1 ) — (7.1 ) Net cash provided by (used for) investing activities — 24.9 (62.0 ) 563.7 (581.6 ) (55.0 ) Financing activities Net receipts (repayments) of commercial paper and revolving long-term debt — — 65.0 (19.0 ) — 46.0 Repayments of long-term debt — — (675.1 ) — — (675.1 ) Premium paid on early extinguishment of debt — — (16.0 ) — — (16.0 ) Debt issuance costs — — (2.0 ) — — (2.0 ) Transfer of cash to nVent — — — (74.2 ) — (74.2 ) Distribution from nVent spin-off — — 993.6 — — 993.6 Net change in advances to subsidiaries 343.6 (294.1 ) (563.9 ) (987.8 ) 1,502.2 — Shares issued to employees, net of shares withheld 16.0 — — — — 16.0 Repurchases of ordinary shares (400.0 ) — — — — (400.0 ) Dividends paid (156.7 ) — — — — (156.7 ) Net cash (used for) provided by financing activities (197.1 ) (294.1 ) (198.4 ) (1,081.0 ) 1,502.2 (268.4 ) Change in cash held for sale — — — 27.0 — 27.0 Effect of exchange rate changes on cash and cash equivalents — — (14.2 ) 4.4 — (9.8 ) Change in cash and cash equivalents 0.1 — 0.1 (21.8 ) — (21.6 ) Cash and cash equivalents, beginning of period — — — 86.3 — 86.3 Cash and cash equivalents, end of period $ 0.1 $ — $ 0.1 $ 64.5 $ — $ 64.7 |
Basis of Presentation and Res_2
Basis of Presentation and Responsibility for Interim Financial Statements - Adoption of New Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Liability, Current | $ 19.8 | $ 19.8 | $ 0 | ||
Operating Lease, Liability, Noncurrent | 63 | 63 | 0 | ||
Net periodic benefit cost | 1.8 | $ 4 | (7.3) | $ 7.6 | |
Operating Lease, Right-of-Use Asset | $ 80 | $ 80 | $ 0 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 37,300,000 | $ 37,300,000 | $ 36,500,000 |
Contract liabilities | 34,400,000 | 34,400,000 | 32,800,000 |
Net contract assets | 2,900,000 | 2,900,000 | $ 3,700,000 |
$ Change | |||
Contract assets | 800,000 | ||
Contract liabilities | 1,600,000 | ||
Net contract assets | $ (800,000) | ||
% Change | |||
Contract assets | 2.20% | ||
Contract liabilities | 4.90% | ||
Net contract assets | (21.60%) | ||
Percent of contract liabilities | 80.00% | ||
Impairment losses on contract assets | $ 0 | $ 0 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Percent of contract liabilities | 80.00% | |
Change in net contract assets | $ (800,000) | |
Impairment losses on contract assets | $ 0 | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 62.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation period | 18 months |
Revenue - Geographic Net Sales
Revenue - Geographic Net Sales Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 713.6 | $ 711.4 | $ 2,202 | $ 2,224.6 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 395.5 | 397.6 | 1,230.1 | 1,247.3 |
Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 154.3 | 155.8 | 475.7 | 475.4 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 163.8 | 158 | 496.2 | 501.9 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 445 | 438.5 | 1,382.1 | 1,395.1 |
Western Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 97.8 | 97.1 | 309 | 311.2 |
Developing | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 119.9 | 117.6 | 357.8 | 346 |
Other Developed | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 50.9 | $ 58.2 | $ 153.1 | $ 172.3 |
Acquisitions and Discontinued_2
Acquisitions and Discontinued Operations Acquisitions (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Acquisitions, net of cash acquired | $ 284.5 | $ 0.9 | ||
Goodwill | $ 2,261 | $ 2,072.7 | ||
Aquion | ||||
Business Acquisition [Line Items] | ||||
Acquisitions, net of cash acquired | $ 163.4 | |||
Goodwill | 94.5 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 4.6 | |||
Indefinite-lived trade name intangible assets | 15.7 | |||
Definite-lived customer relationships | $ 78.8 | |||
Estimated useful life | 15 years | |||
Pelican | ||||
Business Acquisition [Line Items] | ||||
Acquisitions, net of cash acquired | $ 121.1 | |||
Goodwill | 121 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 7.6 |
Acquisitions and Discontinued_3
Acquisitions and Discontinued Operations Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Separation costs | $ 2.5 | $ 82.4 |
Acquisitions and Discontinued_4
Acquisitions and Discontinued Operations Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 693.9 |
Cost of goods sold | 0 | 0 | 0 | 424 |
Gross profit | 0 | 0 | 0 | 269.9 |
Selling, general and administrative expenses | 1.2 | 2.5 | 2 | 233.5 |
Research and development expenses | 0 | 0 | 0 | 14.6 |
Operating (loss) income | (1.2) | (2.5) | (2) | 21.8 |
(Loss) income from discontinued operations before income taxes | (1.3) | 14.8 | (2.5) | 34.6 |
Income tax (benefit) provision | (2.3) | (4.1) | (1.6) | 7.6 |
Income (loss) from discontinued operations, net of tax | 1 | 18.9 | (0.9) | 27 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | $ 1 | $ 18.9 | $ (0.9) | $ 27 |
Share Plans - Schedule of Share
Share Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation associated with discontinued operations | $ 3.4 | |||
Total share-based compensation expense | $ 4.6 | $ 5.1 | $ 15.3 | 16.4 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 2.5 | 2.4 | 8.2 | 6.7 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 0.9 | 1.3 | 3.4 | 3.5 |
Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1.2 | $ 1.4 | $ 3.7 | $ 6.2 |
Share Plans - Schedule of Valua
Share Plans - Schedule of Valuation Assumptions (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Risk-free interest rate | 2.89% |
Expected dividend yield | 1.78% |
Expected share price volatility | 23.30% |
Expected term (years) | 6 years 1 month 6 days |
Share Plans - Additional Inform
Share Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation associated with discontinued operations | $ 3.4 | |
2012 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued (in shares) | 0.8 | |
2012 Stock Incentive Plan | Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 0.3 | |
Weighted-average grant date fair value (in dollars per share) | $ 40.84 | |
2012 Stock Incentive Plan | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in shares) | 0.4 | |
Weighted-average grant date fair value of options (in dollars per share) | $ 8.84 | |
2012 Stock Incentive Plan | Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 0.1 | |
Weighted-average grant date fair value (in dollars per share) | $ 38.47 |
Restructuring - Additional Inf
Restructuring - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Person | Sep. 30, 2018USD ($) | Dec. 31, 2018Person | |
Restructuring Cost and Reserve [Line Items] | |||||
Number of employees | Person | 325 | 300 | |||
Total restructuring costs | $ 2.9 | $ 3.5 | $ 10.7 | $ 34.1 | |
Aquatic Systems | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring costs | 0.2 | 0.6 | 3.1 | 3.6 | |
Filtration Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring costs | 1.5 | 0.9 | 3.1 | 14.4 | |
Flow Technologies | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring costs | 0.3 | 0.7 | 2.4 | 8.7 | |
Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring costs | $ 0.9 | $ 1.3 | $ 2.1 | $ 7.4 |
Restructuring - Costs Included
Restructuring - Costs Included in Selling, General & Administrative Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 2.9 | $ 3.5 | $ 10.7 | $ 34.1 |
Severance and related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 2.1 | 2.8 | 9.6 | 12.8 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0.8 | $ 0.7 | $ 1.1 | $ 21.3 |
Restructuring - Accrual Activit
Restructuring - Accrual Activity (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 27.1 |
Costs incurred | 9.6 |
Cash payments and other | (19.7) |
Ending balance | $ 17 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 92.3 | $ 110.1 | $ 257.9 | $ 254.5 |
Net income from continuing operations | $ 91.3 | $ 91.2 | $ 258.8 | $ 227.5 |
Weighted average common shares outstanding | ||||
Basic (shares) | 168.1 | 174.3 | 169.7 | 176.8 |
Dilutive impact of stock options, restricted stock units and performance share units | 0.5 | 1.4 | 0.6 | 1.7 |
Diluted (shares) | 168.6 | 175.7 | 170.3 | 178.5 |
Earnings (loss) Per Share, Basic | ||||
Continuing operations (in dollars per share) | $ 0.54 | $ 0.52 | $ 1.53 | $ 1.29 |
Discontinued operations (in dollars per share) | 0.01 | 0.11 | (0.01) | 0.15 |
Basic earnings (loss) per ordinary share (in dollars per share) | 0.55 | 0.63 | 1.52 | 1.44 |
Earnings (loss) Per Share, Diluted | ||||
Continuing operations (in dollars per share) | 0.54 | 0.52 | 1.52 | 1.28 |
Discontinued operations (in dollars per share) | 0.01 | 0.11 | (0.01) | 0.15 |
Diluted earnings (loss) per ordinary share (in dollars per share) | $ 0.55 | $ 0.63 | $ 1.51 | $ 1.43 |
Anti-dilutive stock options excluded from the calculation of diluted earnings per share | 2.2 | 1.3 | 2 | 0.6 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories | ||
Raw materials and supplies | $ 198 | $ 191.3 |
Work-in-process | 63.4 | 64 |
Finished goods | 128.9 | 132.2 |
Total inventories | 390.3 | 387.5 |
Other current assets | ||
Cost in excess of billings | 37.3 | 36.5 |
Prepaid expenses | 42.7 | 36.7 |
Prepaid income taxes | 9.4 | 8.5 |
Other current assets | 5.7 | 7.7 |
Total other current assets | 95.1 | 89.4 |
Property, plant and equipment, net | ||
Land and land improvements | 33.1 | 33.5 |
Buildings and leasehold improvements | 186.4 | 178.9 |
Machinery and equipment | 608.7 | 593.8 |
Construction in progress | 40.1 | 35.7 |
Total property, plant and equipment | 868.3 | 841.9 |
Accumulated depreciation and amortization | 590.4 | 569.3 |
Total property, plant and equipment, net | 277.9 | 272.6 |
Operating Lease, Right-of-Use Asset | 80 | 0 |
Other non-current assets | ||
Prepaid income taxes | 26.3 | 26.2 |
Deferred compensation plan assets | 20 | 20.9 |
Other non-current assets | 71.2 | 98.4 |
Total other non-current assets | 197.5 | 145.5 |
Other current liabilities | ||
Dividends payable | 30.3 | 30.8 |
Accrued warranty | 30.6 | 33.9 |
Accrued rebates and incentives | 105.1 | 76.9 |
Billings in excess of cost | 21.5 | 21.3 |
Operating Lease, Liability, Current | 19.8 | 0 |
Income taxes payable | 12 | 10.4 |
Accrued restructuring | 17 | 27.1 |
Other current liabilities | 133.8 | 128 |
Total other current liabilities | 370.1 | 328.4 |
Operating Lease, Liability, Noncurrent | 63 | 0 |
Other non-current liabilities | ||
Income taxes payable | 45.8 | 46.8 |
Self-insurance liabilities | 43.1 | 47.7 |
Deferred compensation plan liabilities | 20 | 20.9 |
Foreign currency contract liabilities | 1.9 | 30.6 |
Other non-current liabilities | 25.4 | 22.2 |
Total other non-current liabilities | $ 199.2 | $ 168.2 |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 2,072.7 |
Acquisitions/divestitures | 215.5 |
Foreign currency translation/other | (27.2) |
Ending Balance | 2,261 |
Aquatic Systems | |
Goodwill [Roll Forward] | |
Beginning Balance | 965.9 |
Acquisitions/divestitures | 0 |
Foreign currency translation/other | (1) |
Ending Balance | 964.9 |
Filtration Solutions | |
Goodwill [Roll Forward] | |
Beginning Balance | 643.5 |
Acquisitions/divestitures | 215.5 |
Foreign currency translation/other | (19.8) |
Ending Balance | 839.2 |
Flow Technologies | |
Goodwill [Roll Forward] | |
Beginning Balance | 463.3 |
Acquisitions/divestitures | 0 |
Foreign currency translation/other | (6.4) |
Ending Balance | $ 456.9 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets - Detail of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Acquired Intangible Assets By Major Class [Line Items] | ||
Cost | $ 458.7 | $ 433.7 |
Accumulated amortization | (289.6) | (316.7) |
Net | 169.1 | 117 |
Net, indefinite-life intangibles | 172.3 | 159.3 |
Cost | 631 | 593 |
Net | 341.4 | 276.3 |
Customer relationships | ||
Acquired Intangible Assets By Major Class [Line Items] | ||
Cost | 415.9 | 347.1 |
Accumulated amortization | (260.8) | (247.9) |
Net | 155.1 | 99.2 |
Trade names intangibles | ||
Acquired Intangible Assets By Major Class [Line Items] | ||
Cost | 0 | 0.4 |
Accumulated amortization | 0 | (0.4) |
Net | 0 | 0 |
Patented Technology [Member] | ||
Acquired Intangible Assets By Major Class [Line Items] | ||
Cost | 42.8 | 86.2 |
Accumulated amortization | (28.8) | (68.4) |
Net | $ 14 | $ 17.8 |
Goodwill and Other Identifiab_5
Goodwill and Other Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization expense | $ 7.6 | $ 8.6 | $ 24.1 | $ 27 |
Goodwill and Other Identifiab_6
Goodwill and Other Identifiable Intangible Assets - Estimated Future Amortization Expense for Identifiable Intangible Assets (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Q3 - Q4 2019 | $ 7.4 |
2020 | 27.1 |
2021 | 22.1 |
2022 | 15.2 |
2023 | 12.8 |
2024 | $ 12.3 |
Debt - Debt and Average Interes
Debt - Debt and Average Interest Rates on Debt Outstanding (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs and discounts | $ (10) | $ (5.1) |
Total debt | $ 1,118.7 | 787.6 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 2.575% | |
Commercial paper | $ 189.7 | 76 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 3.116% | |
Total debt | $ 3.6 | 26.2 |
Senior Notes | Senior Notes 2.650% Due 2019 | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 2.65% | |
Total debt | $ 250 | 250 |
Senior Notes | Senior Notes 2.45% Due 2019 | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 2.45% | |
Total debt | $ 0 | 155.1 |
Senior Notes | Senior Notes 3.625% Due 2020 | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 3.625% | |
Total debt | $ 74 | 74 |
Senior Notes | Senior Notes 5.000% Due 2021 | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 5.00% | |
Total debt | $ 103.8 | 103.8 |
Senior Notes | Senior Notes 3.150% Due 2022 | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 3.15% | |
Total debt | $ 88.3 | 88.3 |
Senior Notes | Senior Notes 4.650% Due 2025 | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 4.65% | |
Total debt | $ 19.3 | 19.3 |
Senior Notes | Senior Notes 4.500% Due 2029 | ||
Debt Instrument [Line Items] | ||
Average interest rate as of September 30, 2019 | 4.50% | |
Total debt | $ 400 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Apr. 25, 2018 | May 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Leverage ratio covenant period | 12 months | |||
Debt | $ 1,118,700,000 | $ 787,600,000 | ||
Aggregate principal amount maturing in the next twelve months | 324,000,000 | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | |||
Credit facility maximum borrowing capacity | $ 800,000,000 | $ 900,000,000 | ||
Credit facility available borrowing capacity | 706,700,000 | |||
Optional line of credit limit increase | 1,100,000,000 | |||
Line of Credit Facility, Increase | $ 100,000,000 | |||
Debt | $ 3,600,000 | 26,200,000 | ||
Average interest rate as of September 30, 2019 | 3.116% | |||
Line of Credit | Revolving Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, unrestricted cash | $ 250,000,000 | |||
Debt agreement financial covenant, leverage ratio | 1 | |||
EBITDA ratio for debt | 3 | |||
Line of Credit | Revolving Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, unrestricted cash | $ 5,000,000 | |||
Debt agreement financial covenant, leverage ratio | 3.75 | |||
EBITDA ratio for debt | 1 | |||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Commercial paper | $ 189,700,000 | 76,000,000 | ||
Average interest rate as of September 30, 2019 | 2.575% | |||
Senior Notes | Senior Notes 4.500% Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt | $ 400,000,000 | $ 0 | ||
Average interest rate as of September 30, 2019 | 4.50% | |||
Other Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 20,900,000 | |||
Borrowings outstanding | $ 0 |
Debt - Debt Outstanding Matures
Debt - Debt Outstanding Matures on Calendar Year Basis (Detail) $ in Millions | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Q3 - Q4 2019 | $ 250 |
2020 | 74 |
2021 | 103.8 |
2022 | 88.3 |
2023 | 193.3 |
Thereafter | 419.3 |
Total debt | $ 1,128.7 |
Derivatives and Financial Ins_3
Derivatives and Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 41.5 | $ 47.6 |
Currency Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 601.9 | 283.8 |
Deferred foreign currency gain (loss) | $ 3.8 | $ (14.5) |
Derivatives and Financial Ins_4
Derivatives and Financial Instruments - Recorded Amounts and Estimated Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total debt | $ 1,128.7 | |
Recorded Amount | ||
Derivative [Line Items] | ||
Variable rate debt | 193.3 | $ 102.2 |
Fixed rate debt | 935.4 | 690.5 |
Total debt | 1,128.7 | 792.7 |
Fair Value | ||
Derivative [Line Items] | ||
Variable rate debt | 193.3 | 102.2 |
Fixed rate debt | 981.8 | 691.8 |
Total debt | $ 1,175.1 | $ 794 |
Derivatives and Financial Ins_5
Derivatives and Financial Instruments - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | $ (1.9) | $ (30.6) |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0.2 | |
Foreign currency contract liabilities | (1.9) | (30.6) |
Deferred compensation plan | 20 | 20.9 |
Total recurring fair value measurements | 18.3 | (9.7) |
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0 | |
Foreign currency contract liabilities | 0 | 0 |
Deferred compensation plan | 11.6 | 17.6 |
Total recurring fair value measurements | 11.6 | 17.6 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0.2 | |
Foreign currency contract liabilities | (1.9) | (30.6) |
Deferred compensation plan | 0 | 0 |
Total recurring fair value measurements | (1.7) | (30.6) |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0 | |
Foreign currency contract liabilities | 0 | 0 |
Deferred compensation plan | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0 | |
Foreign currency contract liabilities | 0 | 0 |
Deferred compensation plan | 8.4 | 3.3 |
Total recurring fair value measurements | $ 8.4 | $ 3.3 |
Income Taxes - Additional Info
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 14.20% | 17.00% | |
Total gross liability for unrecognized tax benefits | $ 48.4 | $ 51.4 |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 0.7 | $ 1 | $ 1.8 | $ 3.1 |
Interest cost | 0.9 | 3 | 6.3 | 9 |
Expected return on plan assets | (0.2) | (2.2) | (3.6) | (6.7) |
Actuarial gain | 0.4 | 2.2 | (11.8) | 2.2 |
Net periodic benefit cost | $ 1.8 | $ 4 | $ (7.3) | $ 7.6 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | $ 171.9 | |||
Pension and other post-retirement plan contribution | $ 11.1 | $ 0 | ||
Actuarial gain | $ (0.4) | $ (2.2) | $ 11.8 | $ (2.2) |
Shareholders' Equity - Additio
Shareholders' Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2014 | Dec. 31, 2018 | May 08, 2018 | |
Stockholders Equity Note Disclosure [Line Items] | |||||||||||
Payments for Repurchase of Common Stock | $ 150,000,000 | $ 400,000,000 | |||||||||
Cash dividends declared per ordinary share | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.175 | $ 0.175 | $ 0.35 | |||||
Dividends payable | $ 30,300,000 | 30,300,000 | $ 30,800,000 | ||||||||
May 2018 Share Repurchase Program [Member] | |||||||||||
Stockholders Equity Note Disclosure [Line Items] | |||||||||||
Repurchase of shares of our common stock up to a maximum aggregate value | $ 750,000,000 | ||||||||||
Common stock authorized for repurchase, expiration date | May 31, 2021 | ||||||||||
December 2014 Share Repurchase Program | |||||||||||
Stockholders Equity Note Disclosure [Line Items] | |||||||||||
Share repurchase program remaining available amount | $ 250,000,000 | $ 250,000,000 |
Segment Information - Financial
Segment Information - Financial Information by Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 713.6 | $ 711.4 | $ 2,202 | $ 2,224.6 |
Segment income | 108.8 | 108.4 | 310.2 | 323.7 |
Aquatic Systems | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 218.7 | 232.7 | 709.8 | 749.3 |
Segment income | 54.8 | 59.9 | 184 | 199.5 |
Filtration Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 273.5 | 240.4 | 798.4 | 754.1 |
Segment income | 45.1 | 38.4 | 128.8 | 124.4 |
Flow Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 221 | 238 | 692.7 | 720.2 |
Segment income | 37.9 | 36.6 | 109.9 | 119.7 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0.4 | 0.3 | 1.1 | 1 |
Segment income | (15) | (13.1) | (47.1) | (40.7) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment income | $ 122.8 | $ 121.8 | $ 375.6 | $ 402.9 |
Segment Information Reconciliat
Segment Information Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment income | $ 108.8 | $ 108.4 | $ 310.2 | $ 323.7 |
Inventory step-up | 0 | 0 | ||
Restructuring and other | (2.9) | (3.5) | (10.7) | (34.1) |
Intangible amortization | (7.6) | (8.6) | (24.1) | (27) |
Pension settlement (loss) gain | (0.4) | (2.2) | ||
Asset Impairment | 0 | 0 | (18.2) | (6) |
(Loss) gain on sale of business | (0.1) | (0.2) | 3.3 | (6.4) |
Loss on early extinguishment of debt | 0 | 0 | 0 | (17.1) |
Income from continuing operations before income taxes | 101.2 | 101.8 | 301.6 | 274 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment income | 122.8 | 121.8 | 375.6 | 402.9 |
Segment Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Restructuring and other | (5.9) | (3.5) | (13.7) | (28.1) |
Intangible amortization | (7.6) | (8.6) | (24.1) | (27) |
(Loss) gain on sale of business | (0.1) | (0.2) | 3.3 | (6.4) |
Loss on early extinguishment of debt | 0 | 0 | 0 | (17.1) |
Corporate allocations | 0 | 0 | 0 | (11) |
Net interest expense | (6.9) | (4.3) | (23.6) | (27.9) |
Other expense | (0.7) | (1.2) | (3.1) | (3.2) |
Segment Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Deal related costs and expenses | $ 0 | $ 0 | (4.2) | 0 |
Inventory step-up | (2.2) | 0 | ||
Pension settlement (loss) gain | 11.8 | (2.2) | ||
Asset Impairment | $ (18.2) | $ (6) |
Commitments and Contingencies -
Commitments and Contingencies - Components of Lease Cost and Other Information Related to Leases (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 8 | $ 24.7 |
Sublease income | (0.2) | (0.7) |
Total lease cost | $ 7.8 | $ 24 |
Weighted-average remaining lease term of operating leases | 5 years | 5 years |
Weighted-average discount rate of operating leases | 6.30% | 6.30% |
Commitments and Contingencies_2
Commitments and Contingencies - Supplemental Cash Flow Information Related to Leases (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating cash flows from operating leases | $ 20.1 |
Right-of-use assets obtained in exchange for lease obligations | $ 88 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Lease Commitments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Q4 2019 | $ 6.4 | $ 23.2 |
2020 | 22.4 | 17.6 |
2021 | 18.1 | 13.3 |
2022 | 15.6 | 11.1 |
2023 | 13.2 | 9.5 |
Thereafter | 22.4 | 13.8 |
Total lease payments | 98.1 | $ 88.5 |
Less: imputed interest | (15.3) | |
Total | $ 82.8 |
Commitments and Contingencies
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 105 | $ 123.6 |
Commitments and Contingencies_4
Commitments and Contingencies - Changes in Carrying Amount of Service and Product Warranties (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning balance | $ 33.9 |
Service and product warranty provision | 37.9 |
Payments | (41) |
Foreign currency translation | (0.2) |
Ending balance | $ 30.6 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net sales | $ 713.6 | $ 711.4 | $ 2,202 | $ 2,224.6 | ||||
Cost of goods sold | 458.6 | 467.6 | 1,424.7 | 1,444.9 | ||||
Gross profit | 255 | 243.8 | 777.3 | 779.7 | ||||
Selling, general and administrative expenses | 126.4 | 116.3 | 405.9 | 399 | ||||
Research and development expenses | 19.8 | 19.1 | 61.2 | 57 | ||||
Segment income | 108.8 | 108.4 | 310.2 | 323.7 | ||||
(Earnings) loss from continuing operations of investment in subsidiaries | 0 | 0 | 0 | 0 | ||||
Other (income) expense: | ||||||||
Loss on sale of business | 0.1 | 0.2 | (3.3) | 6.4 | ||||
Loss on early extinguishment of debt | 0 | 0 | 0 | 17.1 | ||||
Net interest expense | 6.9 | 4.3 | 23.6 | 27.9 | ||||
Other Income | 0.6 | 2.1 | (11.7) | (1.7) | ||||
Income from continuing operations before income taxes | 101.2 | 101.8 | 301.6 | 274 | ||||
Provision for income taxes | 9.9 | 10.6 | 42.8 | 46.5 | ||||
Net income from continuing operations | 91.3 | 91.2 | 258.8 | 227.5 | ||||
Income (loss) from discontinued operations, net of tax | 1 | 18.9 | (0.9) | 27 | ||||
Discontinued Operation, Income (Loss) From Investment In Subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income | 92.3 | $ 114.3 | $ 51.3 | 110.1 | $ 41.5 | $ 102.9 | 257.9 | 254.5 |
Comprehensive income, net of tax | ||||||||
Changes in cumulative translation adjustment | (25.8) | (2.1) | (28.3) | 23.1 | ||||
Changes in market value of derivative financial instruments, net of tax | 21.9 | (1) | 22.8 | (0.7) | ||||
Comprehensive income | 88.4 | 107 | 252.4 | 276.9 | ||||
Parent Company Guarantor | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of goods sold | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 9.9 | 2.3 | 15.6 | 10.4 | ||||
Research and development expenses | 0 | 0 | 0 | 0 | ||||
Segment income | (9.9) | (2.3) | (15.6) | (10.4) | ||||
(Earnings) loss from continuing operations of investment in subsidiaries | (101.2) | (93.5) | (274.4) | (240.4) | ||||
Other (income) expense: | ||||||||
Loss on sale of business | 0 | 0 | 0 | 0 | ||||
Loss on early extinguishment of debt | 0 | |||||||
Net interest expense | 0 | 0 | 0 | 0 | ||||
Other Income | 0 | 0 | 0 | 0 | ||||
Income from continuing operations before income taxes | 91.3 | 91.2 | 258.8 | 230 | ||||
Provision for income taxes | 0 | 0 | 0 | 2.5 | ||||
Net income from continuing operations | 91.3 | 91.2 | 258.8 | 227.5 | ||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Discontinued Operation, Income (Loss) From Investment In Subsidiaries | 1 | 18.9 | (0.9) | 27 | ||||
Net income | 92.3 | 110.1 | 257.9 | 254.5 | ||||
Comprehensive income, net of tax | ||||||||
Changes in cumulative translation adjustment | (25.8) | (2.1) | (28.3) | 23.1 | ||||
Changes in market value of derivative financial instruments, net of tax | 21.9 | (1) | 22.8 | (0.7) | ||||
Comprehensive income | 88.4 | 107 | 252.4 | 276.9 | ||||
Guarantor Subsidiaries | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of goods sold | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | (0.2) | 0 | 0.1 | 0 | ||||
Research and development expenses | 0 | 0 | 0 | 0 | ||||
Segment income | 0.2 | 0 | (0.1) | 0 | ||||
(Earnings) loss from continuing operations of investment in subsidiaries | (101) | (93.3) | (276.5) | (239.4) | ||||
Other (income) expense: | ||||||||
Loss on sale of business | 0 | 0 | 0 | 0 | ||||
Loss on early extinguishment of debt | 0 | |||||||
Net interest expense | 0 | (0.2) | 2 | (1) | ||||
Other Income | 0 | 0 | 0 | 0 | ||||
Income from continuing operations before income taxes | 101.2 | 93.5 | 274.4 | 240.4 | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Net income from continuing operations | 101.2 | 93.5 | 274.4 | 240.4 | ||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Discontinued Operation, Income (Loss) From Investment In Subsidiaries | 1 | 18.9 | (0.9) | 27 | ||||
Net income | 102.2 | 112.4 | 273.5 | 267.4 | ||||
Comprehensive income, net of tax | ||||||||
Changes in cumulative translation adjustment | (25.8) | (2.1) | (28.3) | 23.1 | ||||
Changes in market value of derivative financial instruments, net of tax | 21.9 | (1) | 22.8 | (0.7) | ||||
Comprehensive income | 98.3 | 109.3 | 268 | 289.8 | ||||
Subsidiary Issuer | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of goods sold | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 0.4 | 0.2 | 1.1 | 0.7 | ||||
Research and development expenses | 0 | 0 | 0 | 0 | ||||
Segment income | (0.4) | (0.2) | (1.1) | (0.7) | ||||
(Earnings) loss from continuing operations of investment in subsidiaries | (103.9) | (69.5) | (280.8) | (278.9) | ||||
Other (income) expense: | ||||||||
Loss on sale of business | 0 | 0 | 0 | 0 | ||||
Loss on early extinguishment of debt | 17.1 | |||||||
Net interest expense | 2.5 | 1.7 | 3.2 | 21.7 | ||||
Other Income | 0 | 0 | 0 | 0 | ||||
Income from continuing operations before income taxes | 101 | 67.6 | 276.5 | 239.4 | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Net income from continuing operations | 101 | 67.6 | 276.5 | 239.4 | ||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Discontinued Operation, Income (Loss) From Investment In Subsidiaries | 1 | 18.9 | (0.9) | 27 | ||||
Net income | 102 | 86.5 | 275.6 | 266.4 | ||||
Comprehensive income, net of tax | ||||||||
Changes in cumulative translation adjustment | (25.8) | (2.1) | (28.3) | 23.1 | ||||
Changes in market value of derivative financial instruments, net of tax | 21.9 | (1) | 22.8 | (0.7) | ||||
Comprehensive income | 98.1 | 83.4 | 270.1 | 288.8 | ||||
Non-Guarantor Subsidiaries | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net sales | 713.6 | 711.4 | 2,202 | 2,224.6 | ||||
Cost of goods sold | 458.6 | 467.6 | 1,424.7 | 1,444.9 | ||||
Gross profit | 255 | 243.8 | 777.3 | 779.7 | ||||
Selling, general and administrative expenses | 116.3 | 113.8 | 389.1 | 387.9 | ||||
Research and development expenses | 19.8 | 19.1 | 61.2 | 57 | ||||
Segment income | 118.9 | 110.9 | 327 | 334.8 | ||||
(Earnings) loss from continuing operations of investment in subsidiaries | 0 | 0 | 0 | 0 | ||||
Other (income) expense: | ||||||||
Loss on sale of business | 0.1 | 0.2 | (3.3) | 6.4 | ||||
Loss on early extinguishment of debt | 0 | |||||||
Net interest expense | 4.4 | 2.8 | 18.4 | 7.2 | ||||
Other Income | 0.6 | 2.1 | (11.7) | (1.7) | ||||
Income from continuing operations before income taxes | 113.8 | 105.8 | 323.6 | 322.9 | ||||
Provision for income taxes | 9.9 | 10.6 | 42.8 | 44 | ||||
Net income from continuing operations | 103.9 | 95.2 | 280.8 | 278.9 | ||||
Income (loss) from discontinued operations, net of tax | 1 | 18.9 | (0.9) | 27 | ||||
Discontinued Operation, Income (Loss) From Investment In Subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income | 104.9 | 114.1 | 279.9 | 305.9 | ||||
Comprehensive income, net of tax | ||||||||
Changes in cumulative translation adjustment | (25.8) | (2.1) | (28.3) | 23.1 | ||||
Changes in market value of derivative financial instruments, net of tax | 21.9 | (1) | 22.8 | (0.7) | ||||
Comprehensive income | 101 | 111 | 274.4 | 328.3 | ||||
Consolidation, Eliminations | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of goods sold | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||||
Research and development expenses | 0 | 0 | 0 | 0 | ||||
Segment income | 0 | 0 | 0 | 0 | ||||
(Earnings) loss from continuing operations of investment in subsidiaries | 306.1 | 256.3 | 831.7 | 758.7 | ||||
Other (income) expense: | ||||||||
Loss on sale of business | 0 | 0 | 0 | 0 | ||||
Loss on early extinguishment of debt | 0 | |||||||
Net interest expense | 0 | 0 | 0 | 0 | ||||
Other Income | 0 | 0 | 0 | 0 | ||||
Income from continuing operations before income taxes | (306.1) | (256.3) | (831.7) | (758.7) | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Net income from continuing operations | (306.1) | (256.3) | (831.7) | (758.7) | ||||
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Discontinued Operation, Income (Loss) From Investment In Subsidiaries | (3) | (56.7) | 2.7 | (81) | ||||
Net income | (309.1) | (313) | (829) | (839.7) | ||||
Comprehensive income, net of tax | ||||||||
Changes in cumulative translation adjustment | 77.4 | 6.3 | 84.9 | (69.3) | ||||
Changes in market value of derivative financial instruments, net of tax | (65.7) | 3 | (68.4) | 2.1 | ||||
Comprehensive income | $ (297.4) | $ (303.7) | $ (812.5) | $ (906.9) |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||||||||
Cash and cash equivalents | $ 113.2 | $ 74.3 | $ 64.7 | $ 86.3 | ||||
Accounts and notes receivable, net | 404 | 488.2 | ||||||
Inventories | 390.3 | 387.5 | ||||||
Other current assets | 95.1 | 89.4 | ||||||
Total current assets | 1,002.6 | 1,039.4 | ||||||
Property, plant and equipment, net | 277.9 | 272.6 | ||||||
Other assets | ||||||||
Investments in subsidiaries | 0 | 0 | ||||||
Goodwill | 2,261 | 2,072.7 | ||||||
Intangibles, net | 341.4 | 276.3 | ||||||
Other non-current assets | 197.5 | 145.5 | ||||||
Total other assets | 2,799.9 | 2,494.5 | ||||||
Total assets | 4,080.4 | 3,806.5 | ||||||
Current liabilities | ||||||||
Accounts payable | 253.4 | 378.6 | ||||||
Employee compensation and benefits | 70.7 | 111.7 | ||||||
Other current liabilities | 370.1 | 328.4 | ||||||
Total current liabilities | 694.2 | 818.7 | ||||||
Other liabilities | ||||||||
Long-term debt | 1,118.7 | 787.6 | ||||||
Pension and other post-retirement compensation and benefits | 88.1 | 90 | ||||||
Deferred tax liabilities | 111.4 | 105.9 | ||||||
Other non-current liabilities | 199.2 | 168.2 | ||||||
Total liabilities | 2,211.6 | 1,970.4 | ||||||
Equity | ||||||||
Total equity | 1,868.8 | $ 1,806.6 | $ 1,870.4 | 1,836.1 | 1,880.2 | $ 1,888.9 | $ 4,719.7 | 5,037.8 |
Total liabilities and equity | 4,080.4 | 3,806.5 | ||||||
Parent Company Guarantor | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 0.1 | 0.1 | 0.1 | 0 | ||||
Accounts and notes receivable, net | 10.7 | 4.6 | ||||||
Inventories | 0 | 0 | ||||||
Other current assets | 0.6 | 3.4 | ||||||
Total current assets | 11.4 | 8.1 | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Other assets | ||||||||
Investments in subsidiaries | 2,072.2 | 1,903.8 | ||||||
Goodwill | 0 | 0 | ||||||
Intangibles, net | 0 | 0 | ||||||
Other non-current assets | 13.3 | 23.3 | ||||||
Total other assets | 2,085.5 | 1,927.1 | ||||||
Total assets | 2,096.9 | 1,935.2 | ||||||
Current liabilities | ||||||||
Accounts payable | 3.3 | 0.9 | ||||||
Employee compensation and benefits | 0.2 | 0.2 | ||||||
Other current liabilities | 33.6 | 47.6 | ||||||
Total current liabilities | 37.1 | 48.7 | ||||||
Other liabilities | ||||||||
Long-term debt | 170.5 | 29.9 | ||||||
Pension and other post-retirement compensation and benefits | 0 | 0 | ||||||
Deferred tax liabilities | 0 | 0 | ||||||
Other non-current liabilities | 20.5 | 20.5 | ||||||
Total liabilities | 228.1 | 99.1 | ||||||
Equity | ||||||||
Total equity | 1,868.8 | 1,836.1 | ||||||
Total liabilities and equity | 2,096.9 | 1,935.2 | ||||||
Guarantor Subsidiaries | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||
Accounts and notes receivable, net | 0 | 0 | ||||||
Inventories | 0 | 0 | ||||||
Other current assets | 0 | 0 | ||||||
Total current assets | 0 | 0 | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Other assets | ||||||||
Investments in subsidiaries | 2,071.6 | 2,036.1 | ||||||
Goodwill | 0 | 0 | ||||||
Intangibles, net | 0 | 0 | ||||||
Other non-current assets | 1 | 0 | ||||||
Total other assets | 2,072.6 | 2,036.1 | ||||||
Total assets | 2,072.6 | 2,036.1 | ||||||
Current liabilities | ||||||||
Accounts payable | 0.1 | 0 | ||||||
Employee compensation and benefits | 0 | 0 | ||||||
Other current liabilities | 0.3 | 1.5 | ||||||
Total current liabilities | 0.4 | 1.5 | ||||||
Other liabilities | ||||||||
Long-term debt | 0 | 130.8 | ||||||
Pension and other post-retirement compensation and benefits | 0 | 0 | ||||||
Deferred tax liabilities | 0 | 0 | ||||||
Other non-current liabilities | 0 | 0 | ||||||
Total liabilities | 0.4 | 132.3 | ||||||
Equity | ||||||||
Total equity | 2,072.2 | 1,903.8 | ||||||
Total liabilities and equity | 2,072.6 | 2,036.1 | ||||||
Subsidiary Issuer | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 0.1 | 0.1 | 0.1 | 0 | ||||
Accounts and notes receivable, net | 7.1 | 0 | ||||||
Inventories | 0 | 0 | ||||||
Other current assets | 0 | 2.2 | ||||||
Total current assets | 7.2 | 2.3 | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Other assets | ||||||||
Investments in subsidiaries | 2,825.6 | 2,675.7 | ||||||
Goodwill | 0 | 0 | ||||||
Intangibles, net | 0 | 0 | ||||||
Other non-current assets | 1,272.3 | 696.1 | ||||||
Total other assets | 4,097.9 | 3,371.8 | ||||||
Total assets | 4,105.1 | 3,374.1 | ||||||
Current liabilities | ||||||||
Accounts payable | 0 | 0 | ||||||
Employee compensation and benefits | 0 | 0 | ||||||
Other current liabilities | 9.4 | 4.4 | ||||||
Total current liabilities | 9.4 | 4.4 | ||||||
Other liabilities | ||||||||
Long-term debt | 2,024.3 | 1,333.9 | ||||||
Pension and other post-retirement compensation and benefits | 0 | 0 | ||||||
Deferred tax liabilities | 0 | 0 | ||||||
Other non-current liabilities | 0 | 0 | ||||||
Total liabilities | 2,033.7 | 1,338.3 | ||||||
Equity | ||||||||
Total equity | 2,071.4 | 2,035.8 | ||||||
Total liabilities and equity | 4,105.1 | 3,374.1 | ||||||
Non-Guarantor Subsidiaries | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 113 | 74.1 | 64.5 | 86.3 | ||||
Accounts and notes receivable, net | 390.3 | 483.6 | ||||||
Inventories | 390.3 | 387.5 | ||||||
Other current assets | 94.5 | 99.2 | ||||||
Total current assets | 988.1 | 1,044.4 | ||||||
Property, plant and equipment, net | 277.9 | 272.6 | ||||||
Other assets | ||||||||
Investments in subsidiaries | 0 | 0 | ||||||
Goodwill | 2,261 | 2,072.7 | ||||||
Intangibles, net | 341.4 | 276.3 | ||||||
Other non-current assets | 184.2 | 729.7 | ||||||
Total other assets | 2,786.6 | 3,078.7 | ||||||
Total assets | 4,052.6 | 4,395.7 | ||||||
Current liabilities | ||||||||
Accounts payable | 254.1 | 377.7 | ||||||
Employee compensation and benefits | 70.5 | 111.5 | ||||||
Other current liabilities | 326.8 | 290.3 | ||||||
Total current liabilities | 651.4 | 779.5 | ||||||
Other liabilities | ||||||||
Long-term debt | 197.2 | 596.6 | ||||||
Pension and other post-retirement compensation and benefits | 88.1 | 90 | ||||||
Deferred tax liabilities | 111.4 | 105.9 | ||||||
Other non-current liabilities | 178.7 | 147.7 | ||||||
Total liabilities | 1,226.8 | 1,719.7 | ||||||
Equity | ||||||||
Total equity | 2,825.8 | 2,676 | ||||||
Total liabilities and equity | 4,052.6 | 4,395.7 | ||||||
Consolidation, Eliminations | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||||
Accounts and notes receivable, net | (4.1) | 0 | ||||||
Inventories | 0 | 0 | ||||||
Other current assets | 0 | (15.4) | ||||||
Total current assets | (4.1) | (15.4) | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Other assets | ||||||||
Investments in subsidiaries | (6,969.4) | (6,615.6) | ||||||
Goodwill | 0 | 0 | ||||||
Intangibles, net | 0 | 0 | ||||||
Other non-current assets | (1,273.3) | (1,303.6) | ||||||
Total other assets | (8,242.7) | (7,919.2) | ||||||
Total assets | (8,246.8) | (7,934.6) | ||||||
Current liabilities | ||||||||
Accounts payable | (4.1) | 0 | ||||||
Employee compensation and benefits | 0 | 0 | ||||||
Other current liabilities | 0 | (15.4) | ||||||
Total current liabilities | (4.1) | (15.4) | ||||||
Other liabilities | ||||||||
Long-term debt | (1,273.3) | (1,303.6) | ||||||
Pension and other post-retirement compensation and benefits | 0 | 0 | ||||||
Deferred tax liabilities | 0 | 0 | ||||||
Other non-current liabilities | 0 | 0 | ||||||
Total liabilities | (1,277.4) | (1,319) | ||||||
Equity | ||||||||
Total equity | (6,969.4) | (6,615.6) | ||||||
Total liabilities and equity | $ (8,246.8) | $ (7,934.6) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net cash provided by (used for) operating activities | $ 264.7 | $ 284.6 |
Investing activities | ||
Capital expenditures | (44.6) | (33.8) |
Proceeds from sale of property and equipment | 0.4 | (0.4) |
Proceeds from (payments due to) the sale of businesses, net | 0.7 | (12.8) |
Acquisitions, net of cash acquired | (284.5) | (0.9) |
Net intercompany loan activity | 0 | 0 |
Payments for (Proceeds from) Other Investing Activities | (1.5) | 0 |
Net cash used for investing activities of continuing operations | (329.5) | (47.9) |
Net cash used for investing activities of discontinued operations | 0 | (7.1) |
Net cash used for investing activities | (329.5) | (55) |
Financing activities | ||
Net receipts of commercial paper and revolving long-term debt | 91.2 | 46 |
Proceeds from long-term debt | 400 | 0 |
Repayments of long-term debt | (151.5) | (675.1) |
Premium paid on early extinguishment of debt | 0 | (16) |
Debt issuance costs | (6.3) | (2) |
Cash Divested from Deconsolidation | 0 | (74.2) |
Distribution of cash from nVent | 0 | 993.6 |
Net change in advances to subsidiaries | 0 | 0 |
Shares issued to employees, net of shares withheld | 6.8 | 16 |
Repurchases of ordinary shares | (150) | (400) |
Dividends paid | (92.4) | (156.7) |
Net cash provided by financing activities of continuing operations | 97.8 | (268.4) |
Change in cash held for sale | 0 | 27 |
Effect of exchange rate changes on cash and cash equivalents | 5.9 | (9.8) |
Change in cash and cash equivalents | 38.9 | (21.6) |
Cash and cash equivalents, beginning of period | 74.3 | 86.3 |
Cash and cash equivalents, end of period | 113.2 | 64.7 |
Parent Company Guarantor | ||
Operating activities | ||
Net cash provided by (used for) operating activities | 248.3 | 197.2 |
Investing activities | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 0 |
Proceeds from (payments due to) the sale of businesses, net | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Net intercompany loan activity | 0 | 0 |
Payments for (Proceeds from) Other Investing Activities | 0 | |
Net cash used for investing activities of continuing operations | 0 | |
Net cash used for investing activities of discontinued operations | 0 | |
Net cash used for investing activities | 0 | 0 |
Financing activities | ||
Net receipts of commercial paper and revolving long-term debt | 0 | 0 |
Proceeds from long-term debt | 0 | |
Repayments of long-term debt | 0 | 0 |
Premium paid on early extinguishment of debt | 0 | |
Debt issuance costs | 0 | 0 |
Cash Divested from Deconsolidation | 0 | |
Distribution of cash from nVent | 0 | |
Net change in advances to subsidiaries | (12.7) | 343.6 |
Shares issued to employees, net of shares withheld | 6.8 | 16 |
Repurchases of ordinary shares | (150) | (400) |
Dividends paid | (92.4) | (156.7) |
Net cash provided by financing activities of continuing operations | (248.3) | (197.1) |
Change in cash held for sale | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Change in cash and cash equivalents | 0 | 0.1 |
Cash and cash equivalents, beginning of period | 0.1 | 0 |
Cash and cash equivalents, end of period | 0.1 | 0.1 |
Guarantor Subsidiaries | ||
Operating activities | ||
Net cash provided by (used for) operating activities | 272.4 | 269.2 |
Investing activities | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 0 |
Proceeds from (payments due to) the sale of businesses, net | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Net intercompany loan activity | (131.8) | 24.9 |
Payments for (Proceeds from) Other Investing Activities | 0 | |
Net cash used for investing activities of continuing operations | 24.9 | |
Net cash used for investing activities of discontinued operations | 0 | |
Net cash used for investing activities | (131.8) | 24.9 |
Financing activities | ||
Net receipts of commercial paper and revolving long-term debt | 0 | 0 |
Proceeds from long-term debt | 0 | |
Repayments of long-term debt | 0 | 0 |
Premium paid on early extinguishment of debt | 0 | |
Debt issuance costs | 0 | 0 |
Cash Divested from Deconsolidation | 0 | |
Distribution of cash from nVent | 0 | |
Net change in advances to subsidiaries | (140.6) | (294.1) |
Shares issued to employees, net of shares withheld | 0 | 0 |
Repurchases of ordinary shares | 0 | 0 |
Dividends paid | 0 | 0 |
Net cash provided by financing activities of continuing operations | (140.6) | (294.1) |
Change in cash held for sale | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Subsidiary Issuer | ||
Operating activities | ||
Net cash provided by (used for) operating activities | 282.8 | 274.7 |
Investing activities | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 0 |
Proceeds from (payments due to) the sale of businesses, net | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Net intercompany loan activity | (450.5) | (62) |
Payments for (Proceeds from) Other Investing Activities | 0 | |
Net cash used for investing activities of continuing operations | (62) | |
Net cash used for investing activities of discontinued operations | 0 | |
Net cash used for investing activities | (450.5) | (62) |
Financing activities | ||
Net receipts of commercial paper and revolving long-term debt | 113.8 | 65 |
Proceeds from long-term debt | 400 | |
Repayments of long-term debt | (151.5) | (675.1) |
Premium paid on early extinguishment of debt | (16) | |
Debt issuance costs | (6.3) | (2) |
Cash Divested from Deconsolidation | 0 | |
Distribution of cash from nVent | 993.6 | |
Net change in advances to subsidiaries | (184.7) | (563.9) |
Shares issued to employees, net of shares withheld | 0 | 0 |
Repurchases of ordinary shares | 0 | 0 |
Dividends paid | 0 | 0 |
Net cash provided by financing activities of continuing operations | 171.3 | (198.4) |
Change in cash held for sale | 0 | |
Effect of exchange rate changes on cash and cash equivalents | (3.6) | (14.2) |
Change in cash and cash equivalents | 0 | 0.1 |
Cash and cash equivalents, beginning of period | 0.1 | 0 |
Cash and cash equivalents, end of period | 0.1 | 0.1 |
Non-Guarantor Subsidiaries | ||
Operating activities | ||
Net cash provided by (used for) operating activities | 287.5 | 464.1 |
Investing activities | ||
Capital expenditures | (44.6) | (33.8) |
Proceeds from sale of property and equipment | 0.4 | (0.4) |
Proceeds from (payments due to) the sale of businesses, net | 0.7 | (12.8) |
Acquisitions, net of cash acquired | (284.5) | (0.9) |
Net intercompany loan activity | 109.9 | 618.7 |
Payments for (Proceeds from) Other Investing Activities | (1.5) | |
Net cash used for investing activities of continuing operations | 570.8 | |
Net cash used for investing activities of discontinued operations | (7.1) | |
Net cash used for investing activities | (219.6) | 563.7 |
Financing activities | ||
Net receipts of commercial paper and revolving long-term debt | (22.6) | (19) |
Proceeds from long-term debt | 0 | |
Repayments of long-term debt | 0 | 0 |
Premium paid on early extinguishment of debt | 0 | |
Debt issuance costs | 0 | 0 |
Cash Divested from Deconsolidation | (74.2) | |
Distribution of cash from nVent | 0 | |
Net change in advances to subsidiaries | (15.9) | (987.8) |
Shares issued to employees, net of shares withheld | 0 | 0 |
Repurchases of ordinary shares | 0 | 0 |
Dividends paid | 0 | 0 |
Net cash provided by financing activities of continuing operations | (38.5) | (1,081) |
Change in cash held for sale | 27 | |
Effect of exchange rate changes on cash and cash equivalents | 9.5 | 4.4 |
Change in cash and cash equivalents | 38.9 | (21.8) |
Cash and cash equivalents, beginning of period | 74.1 | 86.3 |
Cash and cash equivalents, end of period | 113 | 64.5 |
Consolidation, Eliminations | ||
Operating activities | ||
Net cash provided by (used for) operating activities | (826.3) | (920.6) |
Investing activities | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 0 |
Proceeds from (payments due to) the sale of businesses, net | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Net intercompany loan activity | 472.4 | (581.6) |
Payments for (Proceeds from) Other Investing Activities | 0 | |
Net cash used for investing activities of continuing operations | (581.6) | |
Net cash used for investing activities of discontinued operations | 0 | |
Net cash used for investing activities | 472.4 | (581.6) |
Financing activities | ||
Net receipts of commercial paper and revolving long-term debt | 0 | 0 |
Proceeds from long-term debt | 0 | |
Repayments of long-term debt | 0 | 0 |
Premium paid on early extinguishment of debt | 0 | |
Debt issuance costs | 0 | 0 |
Cash Divested from Deconsolidation | 0 | |
Distribution of cash from nVent | 0 | |
Net change in advances to subsidiaries | 353.9 | 1,502.2 |
Shares issued to employees, net of shares withheld | 0 | 0 |
Repurchases of ordinary shares | 0 | 0 |
Dividends paid | 0 | 0 |
Net cash provided by financing activities of continuing operations | 353.9 | 1,502.2 |
Change in cash held for sale | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $ 0 | $ 0 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Subsidiary Issuer | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage | 100.00% |
Uncategorized Items - pnr-20190
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (214,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (214,000,000) |