What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-02-10 compared with 2025-02-11 · 140 added, 335 removed, 826 unchanged (37% of the section changed)

23 unchanged sentences

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Product Warranty Liability Valuation

Product Warranty Liability

Description of the Matter

4 unchanged sentences

The Company performs separate warranty calculations based on the product type and the warranty term and aggregates them.

Auditing the product warranty liability was complex due to the judgmental nature of the warranty loss experience assumptions, including the estimated product failure rate and the estimated cost of product replacement.

In particular, it is possible that future product failure rates may not be reflective of historical product failure rates, or that a product quality issue has not yet been identified as of the financial statement date.

Auditing the Company’s product warranty liability for certain of its products was complex due to the judgmental nature of the warranty loss experience assumptions, including the estimated product failure rate and the estimated cost of product replacement.

In particular, it is possible that future product failure rates may not be reflective of actual historical product failure rates, or that a product quality issue has not yet been identified.

Additionally, the cost of product replacement could differ from estimates due to fluctuations in the replacement cost of the product.

2 unchanged sentences

For example, we tested controls over management’s review of the product warranty liability calculation, including the significant assumptions and the data inputs to the calculation.

To test the Company’s calculation of the product warranty liability, our audit procedures included, among others, evaluating the methodology used, and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis.

We tested the validity of claims within the calculation and tested the completeness and accuracy of the claims settled data.

We recalculated the historical failure rates using actual claims data.

To test certain products of the Company’s product warranty liability calculation, our audit procedures included, among others, evaluating the methodology used, and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis.

We tested the completeness and accuracy of the claims settled data.

We recalculated the historical failure rates using actual claims settled data.

We compared the estimated cost of replacement included in the product warranty liability with the current costs to manufacture a comparable product and assessed the impact of projected changes in significant product costs.

We also analyzed current year claims data to identify changes in failure trends and assessed the historical accuracy of the prior year liability.

Further, we inquired of operational and quality control personnel regarding quality issues and trends.

We also analyzed current year claims settled data to identify changes in failure trends and assessed the historical accuracy of the prior year liability.

/s/ Ernst & Young LLP

42 unchanged sentences

See accompanying notes which are an integral part of these statements.

CONSOLIDATED STATEMENT OF EARNINGS

CONSOLIDATED STATEMENTS OF EARNINGS

Years ended December 31 (dollars in millions, except per share amounts)

6 unchanged sentences

Interest expense 13.5 6.7 12.0

Other (income) expense, net ( 8.5 ) ( 6.9 ) 425.6

Other income, net ( 0.6 ) ( 8.5 ) ( 6.9 )

Earnings before provision for income taxes 715.1 701.0 733.5

Provision for (benefit from) income taxes 167.4 176.9 ( 12.0 )

Provision for income taxes 168.9 167.4 176.9

Net Earnings $ 546.2 $ 533.6 $ 556.6

4 unchanged sentences

(1) Earnings per share amounts are calculated discretely and, therefore, may not add up to the total due to rounding.

CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

Years ended December 31 (dollars in millions)

3 unchanged sentences

Foreign currency translation adjustments 13.1 ( 24.0 ) 3.8

Unrealized net (loss) gain on cash flow derivative instruments, less related income tax benefit (provision) of $ 0.7 in 2024, $ 1.4 in 2023 and $( 1.4 ) in 2022

Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of $( 0.4 ) in 2025, $ 0.7 in 2024 and $ 1.4 in 2023

1.3 ( 2.2 ) ( 4.2 )

Change in pension liability less related income tax benefit (provision) of $ 0.5 in 2024, $ 0.5 in 2023 and $( 179.0 ) in 2022

Change in pension liability less related income tax benefit of $ 0.4 in 2025, $ 0.5 in 2024 and $ 0.5 in 2023

( 1.1 ) ( 1.5 ) ( 1.4 )

1 unchanged sentence

See accompanying notes which are an integral part of these statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31 (dollars in millions)

7 unchanged sentences

Non-cash impairments — 4.7 15.6

Pension settlement (income) expense — ( 0.9 ) 417.3

Pension settlement income — — ( 0.9 )

Pension settlement non-cash taxes — — 0.2

8 unchanged sentences

Net proceeds from sales of marketable securities 60.5 60.5 128.4

Cash (Used in) Provided by Investing Activities ( 267.1 ) ( 24.1 ) 8.1

Cash Used in Investing Activities ( 53.0 ) ( 267.1 ) ( 24.1 )

Financing Activities

Long-term debt incurred (repaid) 69.7 ( 218.1 ) 150.6

Proceeds from debt 1,087.3 1,100.1 688.0

Repayments of debt ( 1,124.9 ) ( 1,030.4 ) ( 906.1 )

Common stock repurchases ( 400.8 ) ( 305.8 ) ( 306.5 )

Net proceeds (payments) from stock option activity 18.1 23.4 ( 0.7 )

Net proceeds from stock option activity 1.0 18.1 23.4

Dividends paid ( 195.7 ) ( 190.4 ) ( 183.5 )

5 unchanged sentences

See accompanying notes, which are an integral part of these statements.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Years ended December 31 (dollars in millions)

24 unchanged sentences

Foreign currency translation adjustments 13.1 ( 24.0 ) 3.8

Unrealized net (loss) gain on cash flow derivative instruments, less related income tax benefit (provision) of $ 0.7 in 2024, $ 1.4 in 2023 and $( 1.4 ) in 2022

Unrealized net gain (loss) on cash flow derivative instruments, less related income tax (provision) benefit of $( 0.4 ) in 2025, $ 0.7 in 2024 and $ 1.4 in 2023

1.3 ( 2.2 ) ( 4.2 )

Change in pension liability less related income tax benefit (provision) of $ 0.5 in 2024, $ 0.5 in 2023 and $( 179.0 ) in 2022

Change in pension liability less related income tax benefit of $ 0.4 in 2025, $ 0.5 in 2024 and $ 0.5 in 2023

( 1.1 ) ( 1.5 ) ( 1.4 )

17 unchanged sentences

North America and Rest of World.

The Rest of World segment is primarily comprised of China, Europe and India.

The Rest of World segment is primarily comprised of China, India, and Europe.

Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products.

34 unchanged sentences

Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment on an annual basis.

Separable intangible assets, primarily comprised of customer relationships, that are not deemed to have an indefinite life are amortized on a straight-line basis over their estimated useful lives which range from four to 25 years.

Impairment of long-lived and amortizable intangible assets.

16 unchanged sentences

Claims settled ( 66.0 ) ( 78.8 )

Acquired obligations 1.1 —

Balance at end of year $ 209.7 $ 190.4

17 unchanged sentences

Quoted prices in active markets for identical assets (Level 1) Marketable Securities $ 18.7 $ 36.5

Significant other observable inputs (Level 2) (Accrued liabilities) / Other current assets ( 1.9 ) ( 4.1 )

Significant other observable inputs (Level 2) Accrued liabilities — ( 1.9 )

There were no changes in the valuation techniques used to measure fair values on a recurring basis.

25 unchanged sentences

Earnings per share of common stock.

The Company is not required to use the two-class method of calculating earnings per share since its Class A Common Stock and Common Stock have equal dividend rights.

The Company is not required to use the two-class method of calculating earnings per share because its Class A Common Stock and Common Stock have equal dividend rights.

The numerator for the calculation of basic and diluted earnings per share is net earnings.

5 unchanged sentences

Recent Accounting Pronouncements

In September 2025, the FASB issued ASU No.

2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), which modernizes the accounting guidance for internal-use software costs by eliminating the requirement to assess software development stages and introduces a new capitalization threshold.

ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with early adoption permitted.

The Company is currently in the process of reviewing the guidance and evaluating its impact on its financial statements.

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03 “Income Statement - Reporting Comprehensive Income (Topic 220):

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This ASU requires added disclosures related to the tax rate reconciliation and income taxes paid and includes other amendments intended to improve effectiveness and comparability.

The amendment is effective for the Company beginning with its 2025 annual disclosures with early adoption permitted and should be applied on a prospective basis.

The Company is currently evaluating the impact the adoption of ASU 2023-09 will have on its annual disclosures.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures.” The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses.

The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources.

The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods.

The update is effective for the Company beginning with its 2025 annual disclosures and interim periods beginning in 2026.

Organization and Significant Accounting Policies (continued)

with early adoption permitted and requires retrospective application to all prior periods presented in the financial statements.

As a result of adoption, income tax disclosures for prior periods presented have been revised to conform to the new disclosure requirements.

The adoption of ASU 2023-09 did not affect the Company’s financial position or its results of operations.

Refer to Note 17, Operations by Segment, for additional disclosures.

Refer to Note 14, Income Taxes, for additional disclosures.

Revenue Recognition

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North America and Rest of World.

The Rest of World segment is primarily comprised of China, Europe and India.

The Rest of World segment is primarily comprised of China, India, and Europe.

Both segments manufacture and market comprehensive lines of residential and commercial gas, heat pump and electric water heaters, boilers, tanks and water treatment products.

10 unchanged sentences

A significant portion of the Company’s water heater sales in the North America segment is derived from the replacement of existing products.

Revenue Recognition (continued)

Boilers The Company’s boilers are closed loop water heating systems used primarily for space heating or hydronic heating.

The Company’s boilers are primarily used in applications in commercial settings for hospitals, schools, hotels and other large commercial buildings while residential boilers are used in homes, apartments and condominiums.

The Company’s boilers are primarily used in applications in commercial settings for hospitals, schools, hotels and other large

Revenue Recognition (continued)

commercial buildings while residential boilers are used in homes, apartments and condominiums.

The Company’s boiler distribution channel is comprised primarily of manufacturer representative firms, with the remainder of its boilers distributed through wholesale channels.

17 unchanged sentences

All other Rest of World (1)

190.9 126.7 121.8

Total Rest of World 880.4 918.6 956.9

1 unchanged sentence

Total Net Sales $ 3,830.2 $ 3,818.1 $ 3,852.8

(1) Includes the results of Pureit from the fourth quarter 2024, the period of acquisition.

2024 Acquisitions

During the fourth quarter of 2024, the Company acquired Pureit, a residential water purification business in South Asia, from Unilever for an aggregate purchase price of $ 124.6 million.

The purchase price consists of an initial cash payment of $ 117.9 million upon the closing of the transaction and a separate payment of $ 6.7 million made under a transitional supply agreement with Unilever.

Due to the close proximity of the acquisition date and the Company's filing of its annual report on Form 10-K for the year ended December 31, 2024, the initial accounting for the business combination is incomplete and is pending identification and measurement of the assets acquired and liabilities assumed.

Therefore, the Company is unable to disclose the information required by ASC 805, Business Combinations .

Such information will be included in the Company's subsequent Form 10-Q.

At December 31, 2024, the purchase price allocated to Goodwill was $ 117.9 million and the payment of $ 6.7 million was included in Other current assets within the Company’s consolidated financial statements.

The acquired company is included in the Rest of World segment.

The Company incurred acquisition costs of approximately $ 1.4 million.

The following table summarizes the final allocation of the fair value of the assets acquired and liabilities assumed at the date of acquisition.

Of the $ 56.4 million of acquired identifiable intangible assets, $ 48.5 million was assigned to trademarks that are not subject to amortization, $ 3.7 million was assigned to patents which are amortized over 15 years, and the remaining $ 4.2 million million was assigned to customer relationships which are amortized over two to three years .

The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill.

The allocation of the purchase price to goodwill decreased by $ 0.8 million in 2025 due to valuation adjustments related to identifiable intangible assets.

Acquisitions (continued)

(dollars in millions)

Current assets $ 5.6

Property, plant and equipment 0.6

Intangible assets 56.4

Goodwill 63.9

Total assets acquired 126.5

Current liabilities ( 1.9 )

Net assets acquired $ 124.6

During the first quarter of 2024, the Company acquired a privately-held water treatment company.

3 unchanged sentences

The acquired company is included in the North America segment.

Acquisitions (continued)

2023 Acquisitions

3 unchanged sentences

The acquired company is included in the North America segment.

2022 Acquisitions

During the second quarter of 2022, the Company acquired a privately-held water treatment company.

The Company paid an aggregate cash purchase price of $ 5.5 million, net of cash acquired.

The addition of the company acquired expands the Company's water treatment platform and is included in the North America segment for reporting purposes.

In addition, in the third quarter of 2022, the Company incurred $ 4.3 million of expenses and related income tax benefit of $ 1.1 million associated with a terminated acquisition.

These expenses were related to the due diligence of a prospective acquisition target and recorded within selling, general and administrative expenses in the consolidated statement of earnings.

As required under ASC 805, results of operations have been included in the Company’s consolidated financial statements from the date of acquisition.

18 unchanged sentences

Operating lease assets $ 46.3 $ 32.8

Leases (continued)

Lease Term and Discount Rate December 31, 2025

1 unchanged sentence

Weighted-average discount rate 5.40 %

Leases (continued)

The components of lease expense were as follows:

25 unchanged sentences

Upon closing of the sale in the second quarter of 2023, the Company released $ 11.0 million of foreign currency translation losses from accumulated other comprehensive loss.

In 2023, the Company recorded $ 3.2 million of restructuring expense related to the exit of a business within the Far East region.

Also in 2023, the Company recorded $ 3.2 million of restructuring expense related to the exit of a business within the Far East region.

Restructuring and Impairment Expenses (continued)

5 unchanged sentences

Charges 12.1 0.8 4.7 17.6

Cash payments ( 3.5 ) ( 2.2 ) — ( 5.7 )

Non-cash and other adjustments — — ( 4.7 ) ( 4.7 )

4 unchanged sentences

Balance at December 31, 2025 — 0.7 — 0.7

Statement of Cash Flows

Statements of Cash Flows

Supplemental cash flow information is as follows:

35 unchanged sentences

Currency translation adjustment 4.8 ( 2.0 ) 2.8

Acquisitions 20.5 117.9 138.4

Acquisition adjustments (1)

— ( 53.9 ) ( 53.9 )

Balance at December 31, 2025 $ 591.5 $ 119.1 $ 710.6

(1) Measurement period adjustments related to the 2024 acquisitions which impacted the amount of goodwill originally reported.

The carrying amount of other intangible assets consisted of the following:

15 unchanged sentences

No impairments of other intangible assets were recorded in 2025, 2024 and 2023.

The Company was obligated under the following debt instruments:

December 31 (dollars in millions) 2025 2024

Revolving credit agreement borrowings, average year-end interest rates of 5.3 % for 2024

Variable rate agreements, expiring 2029, average year-end interest rates of 7.4 % for 2025 and 8.0 % for 2024

Fixed rate agreements, expiring 2026-2034, average year-end interest rates of 3.3 % for 2025 and 3.1 % for 2024

4 unchanged sentences

Borrowings under the Company’s bank credit lines and commercial paper borrowings are supported by the $ 500 million revolving credit agreement.

As a result of the long-term nature of this facility, the Company’s credit line borrowings are classified as long-term debt at December 31, 2024.

As a result of the long-term nature of this facility, the Company’s credit line borrowings are classified as long-term debt at December 31, 2024 (no credit line borrowings existed at December 31, 2025).

At its option, the Company either maintains cash balances or pays fees for bank credit and services.

The Company has fixed-rate interest expense obligations of $ 23.9 million on outstanding debt as of December 31, 2024.

The Company has interest expense obligations of $ 15.3 million on outstanding debt as of December 31, 2025.

Scheduled maturities of long-term debt within each of the five years subsequent to December 31, 2025 are as follows:

22 unchanged sentences

Balance at beginning of period $ ( 104.3 ) $ ( 80.3 )

Other comprehensive (loss) gain before reclassifications ( 24.0 ) 3.8

Other comprehensive gain (loss) before reclassifications 13.1 ( 24.0 )

Balance at end of period ( 91.2 ) ( 104.3 )

Unrealized net gain (loss) on cash flow derivatives

Unrealized net (loss) gain on cash flow derivatives

Balance at beginning of period ( 1.5 ) 0.7

Other comprehensive (loss) gain before reclassifications ( 0.5 ) 2.8

Realized gains on derivatives reclassified to cost of products sold (net of tax provision of $ 0.5 and $ 2.2 in 2023, respectively) (1)

Other comprehensive gain (loss) before reclassifications 2.5 ( 0.5 )

Realized gains on derivatives reclassified to cost of products sold (net of tax provision of $ 0.4 in 2025 and $ 0.5 in 2024, respectively) (1)

( 1.2 ) ( 1.7 )

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Reclassification net of tax $ 0.3 $ 0.3

(2) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost.

See Note 13, “Pensions and Other Post-retirement Benefits” for additional details.

Included in the results for 2023 is $ 11.0 million of foreign currency translation losses reclassified from accumulated other comprehensive loss to Net earnings related to the Company's sale of its business in Turkey.

See Note 5 - Restructuring and Impairment Expenses for additional details.

Stock Based Compensation

9 unchanged sentences

Beginning in 2023, the Company no longer grants stock options.

The stock options previously granted in 2022 have three year pro rata vesting from the date of grant.

Stock options were issued at exercise prices equal to the fair value of the Company’s Common Stock on the date of grant.

For active employees, all options granted in 2022 expire ten years after the date of grant.

The Company’s stock options are expensed ratably over the three year vesting period;

however, included in the stock option expense recognized in 2022 is expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period.

For active employees, all options granted expire ten years after the date of grant.

Stock based compensation expense attributable to stock options for 2025, 2024 and 2023 was $ 0.1 million, $ 0.6 million and $ 1.2 million, respectively.

8 unchanged sentences

Outstanding at beginning of year 1,395,841 $ 55.07 1,872,553 $ 52.93 2,481,606 $ 51.22

Granted — — — — 322,460 74.11

Exercised (1)

6 unchanged sentences

(1) The total intrinsic value of options exercised in 2025, 2024 and 2023 was $ 2.0 million, $ 18.0 million and $ 15.0 million, respectively.

(2) The weighted average remaining contractual life of options outstanding was 6 years at December 31, 2024, and 7 years at December 31, 2023 and December 31, 2022, respectively.

(2) The weighted average remaining contractual life of options outstanding was 5 years at December 31, 2025, 6 years at December 31, 2024 and 7 years at December 31, 2023, respectively.

The aggregate intrinsic value of options outstanding at December 31, 2025 was $ 16.0 million.

(3) The weighted average remaining contractual life of options exercisable was 6 years at December 31, 2024, December 31, 2023, and December 31, 2022, respectively.

(3) The weighted average remaining contractual life of options exercisable was 5 years at December 31, 2025, and 6 years at December 31, 2024 and December 31, 2023, respectively.

The aggregate intrinsic value of options exercisable at December 31, 2025 was $ 16.0 million.

3 unchanged sentences

Vested ( 100,780 ) 74.10

Forfeited ( 2,093 ) 74.27

Nonvested options at end of year — —

Stock Based Compensation (continued)

The weighted-average fair value per option at the date of grant during 2022, using the Black-Scholes option-pricing model, was $ 17.57 .

Assumptions were as follows:

Expected life (years) 5.7

Risk-free interest rate 1.9 %

Dividend yield 1.5 %

Expected volatility 26.8 %

The expected lives of options for purposes of these models are based on historical exercise behavior.

The risk-free interest rates for purposes of these models are based on the U.S.

Treasury yield in effect on the date of grant for the respective expected lives of the option.

The expected dividend yields for purposes of these models are based on the dividends paid in the preceding four quarters divided by the grant date market value of the Common Stock.

The expected volatility for purposes of these models is based on the historical volatility of the Common Stock.

Participants in the Incentive Plan may also be awarded share units.

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The Company granted 38,435 , 29,475 and 24,580 performance stock units under the Incentive Plan in 2025, 2024 and 2023, respectively.

The performance stock units were valued at $ 2.4 million and $ 1.7 million at the date of issuance in 2024 and 2023, respectively, based on the price of the Company’s Common Stock at the date of grant.

The performance stock units were valued at $ 2.5 million, $ 2.4 million and $ 1.7 million at the date of issuance in 2025, 2024 and 2023, respectively, based on the price of the Company’s Common Stock at the date of grant.

The performance stock units are recognized as compensation expense ratably over the three-year vesting period.

Stock based compensation expense attributable to performance stock units of $ 1.8 million and $ 0.7 million was recognized in 2024 and 2023, respectively.

Stock based compensation expense attributable to performance stock units of $ 2.5 million, $ 1.8 million and $ 0.7 million was recognized in 2025, 2024 and 2023, respectively.

Certain non-U.S.-based executives receive the cash value of the share price at the vesting date in lieu of shares.

Unvested cash-settled awards are remeasured at each reporting period.

Stock Based Compensation (continued)

A summary of stock unit activity under the Incentive Plan is as follows:

4 unchanged sentences

Forfeited ( 3,131 ) 70.78

Performance adjustments 16,289 80.76

Issued and unvested at December 31, 2025 109,702 72.12

Pension and Other Post-retirement Benefits

The Company provides retirement benefits for all U.S.

employees including benefits for employees of previously owned businesses which were earned up to the date of sale.

The Company also has two foreign pension plans, neither of which is material to the Company’s financial position.

The Company has a defined contribution plan which matches 100 percent of the first one percent of contributions made by participating employees and matches 50 percent of the next five percent of employee contributions.

In addition, the Company has defined contribution plans for certain hourly employees which provide for matching Company contributions.

The Company had a defined benefit plan for salaried employees and its non-union hourly workforce.

In 2009, the Company announced U.S.

employees hired after January 1, 2010, would not participate in the defined benefit plan, and benefit accruals for the majority of current salaried and hourly employees sunset on December 31, 2014.

An additional Company contribution is made to the defined contribution plan in lieu of benefits earned in a defined benefit plan.

The Company also has defined benefit and contribution plans for certain union hourly employees.

In 2021, the Company's Board of Directors approved the termination of the defined benefit pension plan (the Plan) with a termination date of December 31, 2021.

The Plan represented over 95 percent of the Company's pension plan liability.

In 2022, the Company received a determination letter from the Internal Revenue Service (IRS) that allowed the Company to proceed with the termination process.

The Company settled approximately $ 169 million of Plan liabilities through lump-sum payments from existing plan assets to eligible participants who elected to receive them and settled approximately $ 463 million of Plan liabilities by entering into an agreement to purchase annuities from Mass Mutual Life Insurance Company (MML).

The irrevocable agreement with MML covers approximately 7,000 active and former employees and their beneficiaries, with MML assuming the future annuity payments for these individuals commencing March 1, 2023.

These settlements resulted in $ 417.3 million of pretax expense in 2022, partially offset by approximately $ 167.7 million in related tax benefits.

In 2023, the Company realized pre-tax pension settlement income of $ 0.9 million, of which $ 0.7 million was recorded in the North America segment and $ 0.2 million in Corporate Expense, and included $ 0.2 million in related tax benefits.

The pension settlement income related to refunds from MML to the Plan for the reconciliation of participant data and was partially offset by settlement accounting adjustments.

The remaining pension assets associated with the Plan at December 31, 2024 were $ 15.6 million.

The Company intends to use the remaining assets to fund future non-elective contributions to the Company’s defined contribution plan.

The Company has unfunded defined-benefit post-retirement plans covering certain hourly and salaried employees that provide medical and life insurance benefits from retirement to age 65 .

Certain hourly employees retiring after January 1, 1996, are subject to a maximum annual benefit and salaried employees hired after December 31, 1993, are not eligible for post-retirement medical benefits.

Obligations and Funded Status

Pension and Post-retirement Disclosure Information

The following tables present the changes in benefit obligations, plan assets and funded status for domestic pension and post-retirement plans and the components of net periodic benefit costs.

Pension and Other Post-retirement Benefits (continued)

Pension Benefits Post-retirement Benefits

Years ended December 31 (dollars in millions) 2024 2023 2024 2023

Accumulated benefit obligation (ABO) at December 31 $ ( 27.3 ) $ ( 26.3 ) N/A N/A

Change in projected benefit obligations (PBO)

PBO at beginning of year $ ( 26.7 ) $ ( 28.3 ) $ ( 1.7 ) $ ( 1.7 )

Service cost ( 1.1 ) ( 0.9 ) — —

Interest cost ( 1.4 ) ( 1.2 ) ( 0.1 ) ( 0.1 )

Participant contributions — — ( 0.1 ) ( 0.1 )

Actuarial gain (loss) including assumption changes 0.7 ( 1.1 ) 0.1 —

Benefits paid 0.8 4.8 0.2 0.2

PBO at end of year $ ( 27.7 ) $ ( 26.7 ) $ ( 1.6 ) $ ( 1.7 )

Change in fair value of plan assets

Plan assets at beginning of year $ 20.3 $ 45.2 $ — $ —

Actual return on plan assets ( 1.4 ) 0.6 — —

Contribution by the Company 0.5 0.5 0.1 0.1

Participant contributions — — 0.1 0.1

Benefits paid ( 0.8 ) ( 4.8 ) ( 0.2 ) ( 0.2 )

Transfer related to plan termination — ( 21.2 ) — —

Plan assets at end of year $ 18.6 $ 20.3 $ — $ —

Funded status $ ( 9.1 ) $ ( 6.4 ) $ ( 1.6 ) $ ( 1.7 )

Amount recognized in the balance sheet

Noncurrent assets $ 2.2 $ 4.4 $ — $ —

Current liabilities ( 0.5 ) ( 0.5 ) ( 0.2 ) ( 0.2 )

Non-current liabilities ( 10.8 ) ( 10.3 ) ( 1.4 ) ( 1.5 )

Net pension liability at end of year $ ( 9.1 ) * $ ( 6.4 ) * $ ( 1.6 ) $ ( 1.7 )

Amounts recognized in accumulated other comprehensive loss before tax

Net actuarial loss $ 8.3 $ 6.7 $ 0.2 $ 0.3

Prior service cost 1.8 1.9 ( 1.3 ) ( 1.8 )

Total recognized in accumulated other comprehensive loss $ 10.1 $ 8.6 $ ( 1.1 ) $ ( 1.5 )

*In addition, the Company has a liability for a foreign pension plan of $ 0.3 million at December 31, 2024 and 2023, respectively.

The actuarial loss in the current year for the pension plan was primarily due to the change in the discount rate.

Pension and Other Post-retirement Benefits (continued)

Pension Benefits Post-retirement Benefits

Years ended December 31 (dollars in millions) 2024 2023 2022 2024 2023 2022

Net periodic cost (benefit)

Service cost $ 1.1 $ 0.9 $ 1.4 $ — $ — $ —

Interest cost 1.4 1.2 14.5 0.1 0.1 0.1

Expected return on plan assets ( 1.2 ) ( 1.0 ) ( 21.5 ) — — —

Amortization of unrecognized:

Net actuarial loss 0.3 0.1 19.9 — — —

Prior service cost 0.1 0.1 ( 0.4 ) ( 0.5 ) ( 0.5 ) ( 0.5 )

Defined-benefit plan expense (income) 1.7 1.3 13.9 ( 0.4 ) ( 0.4 ) $ ( 0.4 )

Pension settlement (income) expense — ( 0.9 ) 417.3 — — —

defined contribution plans cost 17.9 16.5 15.3 — — —

$ 19.6 $ 16.9 $ 446.5 $ ( 0.4 ) $ ( 0.4 ) $ ( 0.4 )

Other changes in plan assets and projected benefit

obligation recognized in other comprehensive loss

Net actuarial loss (gain) $ 1.9 $ 1.5 $ ( 27.0 ) $ ( 0.1 ) $ — $ 0.2

Amortization of net actuarial loss ( 0.3 ) ( 0.1 ) ( 19.9 ) — — —

Settlement loss — — ( 417.3 ) — — —

Amortization of prior service cost ( 0.1 ) ( 0.1 ) 0.4 0.5 0.5 0.5

Total recognized in other comprehensive loss 1.5 1.3 ( 463.8 ) 0.4 0.5 0.7

Total recognized in net periodic cost (benefit) and other comprehensive loss $ 3.2 $ 1.7 $ ( 32.6 ) $ — $ 0.1 $ 0.3

The 2024 and 2023 after tax adjustments for additional minimum pension liability resulted in other comprehensive (loss) of $( 1.5 ) million and $( 1.4 ) million, respectively.

Actuarial assumptions used to determine benefit obligations at December 31 are as follows:

Pension Benefits Post-retirement Benefits

2024 2023 2024 2023

Discount rate 5.57 % 4.96 % 5.49 % 4.89 %

Actuarial assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows:

Pension Benefits Post-retirement Benefits

Years ended December 31 2024 2023 2022 2024 2023 2022

Discount rate 4.96 % 5.15 % 2.80 % 4.89 % 5.09 % 2.44 %

Expected long-term return on plan assets 5.25 % 5.25 % 3.12 % N/A N/A N/A

Rate of compensation increase 4.00 % 4.00 % 4.00 % N/A N/A N/A

Assumed health care cost trend rates

Health care inflation assumptions are no longer needed as all remaining retiree medical benefits are fixed subsidies or reimbursements.

Pension and Other Post-retirement Benefits (continued)

The Company’s pension plan weighted asset allocations as of December 31 by asset category are as follows:

Asset Category 2024 2023

Equity securities 19 % 17 %

Debt securities 76 70

Private equity 5 12

The following tables present the fair value measurement of the Company’s plan assets as of December 31, 2024 and 2023 (dollars in millions):

December 31, 2024

Asset Category Total Quoted Prices in

Active Markets for

Identical Contracts

(Level 1) Significant Other

Observable Inputs

(Level 2) Significant Non-

observable Inputs

Short-term investments $ 0.2 $ 0.2 $ — $ —

Equity securities

Common stocks 2.3 2.3 — —

Fixed income securities

Treasury securities 6.5 0.8 5.7 —

Other fixed income securities 7.4 — 7.4 —

Other types of investments

Mutual funds 1.2 — 1.2 —

Private equity 0.9 — — 0.9

Total fair value of plan asset investments $ 18.5 $ 3.3 $ 14.3 $ 0.9

Non-investment plan assets 0.1

Total plan assets $ 18.6

December 31, 2023

Asset Category Total Quoted Prices in

Active Markets for

Identical Contracts

(Level 1) Significant Other

Observable Inputs

(Level 2) Significant Non-

observable Inputs

Short-term investments $ 0.2 $ 0.2 $ — $ —

Equity securities

Common stocks 2.5 2.5 — —

Fixed income securities

Treasury securities 6.7 0.6 6.1 —

Other fixed income securities 7.4 — 7.4 —

Other types of investments

Mutual funds 1.0 — 1.0 —

Private equity 2.4 — — 2.4

Total fair value of plan asset investments $ 20.2 $ 3.3 $ 14.5 $ 2.4

Non-investment plan assets 0.1

Total plan assets $ 20.3

The short-term investments included in the Company’s plan assets consist of cash and cash equivalents.

The fair value of the remaining categories of the Company’s plan assets are valued as follows:

equity securities are valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year;

fixed income securities are valued using institutional bond quotes, which are based on various market and industry inputs;

mutual funds and real estate funds are valued using the net asset value of the fund, which is based on the fair value of the underlying securities;

Options are valued using the closings market value on the last day of the year;

and private equity investments are

Pension and Other Post-retirement Benefits (continued)

valued at the estimated fair value at the previous quarter end, which is based on the proportionate share of the underlying portfolio investments.

The following table presents a reconciliation of the fair value measurements using significant unobservable inputs (Level 3) as of December 31, 2024 and 2023 (dollars in millions):

Balance at December 31, 2022 $ 2.2

Actual return (loss) on plan assets:

Relating to assets still held at the reporting date 3.9

Relating to assets sold during the period ( 3.6 )

Purchases, sales and settlements ( 0.3 )

Transfers in and/or out 0.2

Balance at December 31, 2023 2.4

Actual return (loss) on plan assets:

Relating to assets still held at the reporting date ( 0.6 )

Relating to assets sold during the period ( 1.0 )

Purchases, sales and settlements 0.1

Balance at December 31, 2024 $ 0.9

The Company’s investment policies employ an approach whereby a diversified blend of equity and bond investments is used to maximize the long-term return of plan assets for a prudent level of risk.

Equity investments are diversified across domestic and non-domestic stocks, as well as growth, value, and small to large capitalizations.

Bond investments include corporate and government issues, with short, mid, and long-term maturities, with a focus on investment-grade when purchased.

The Company’s target allocation to equity managers is between 30 to 60 percent with the remainder allocated primarily to bonds, private equity managers, and cash.

Investment and market risks are measured and monitored on an ongoing basis through regular investment portfolio reviews, annual liability measurements and periodic asset/liability studies.

The Company’s actual asset allocations are in line with target allocations.

The Company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate.

There was no Company stock included in plan assets at December 31, 2024.

The Company was no t required to make any contributions in 2024 to the Plan and is no t required to make a contribution in 2025.

Estimated Future Payments

As of December 31, 2024, the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

Years ended December 31 (dollars in millions) Pension Benefits Post-retirement

2025 $ 0.9 $ 0.2

2030 – 2034 7.0 0.6

Derivative Instruments

15 unchanged sentences

The majority of the amounts in accumulated other comprehensive loss for cash flow hedges are expected to be reclassified into earnings within one year .

The combined fair value of the foreign currency forward contracts was a liability balance of $ 1.4 million as of December 31, 2024 which was recorded in Accrued liabilities within the consolidated balance sheet.

The combined fair value of the foreign currency forward contracts was an asset balance of $ 0.9 million as of December 31, 2023 and recorded in Other current assets within the consolidated balance sheet.

The combined fair value of the foreign currency forward contracts was an asset balance of $ 1.0 million as of December 31, 2025 which was recorded in Other current assets within the consolidated balance sheet.

The combined fair value of the foreign currency forward contracts was a liability balance of $ 1.4 million as of December 31, 2024 and recorded in Accrued liabilities within the consolidated balance sheet.

The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts that are designated as cash flow hedges:

6 unchanged sentences

Interest Rate Swaps

The Company is exposed to interest rate risk as a result of the Company’s floating rate borrowings.

The Company enters into forward interest rate swap agreements with an independent counterparty to hedge the variability in cash flows due to changes in Secured Overnight Financing Rate (SOFR) benchmark interest rate associated with variable rate borrowings.

The interest rate swap has a maturity date of September 30, 2029 and effectively converts the Company’s variable interest rate obligations to fixed interest rate obligations.

Interest rate swaps with an aggregate notional amount of 4.2 billion rupees and zero were

Derivative Instruments (continued)

outstanding as of December 31, 2024 and December 31, 2023, respectively.

The aggregate effective interest rate of the swap as of December 31, 2024 was 8.25 %.

The Company is exposed to interest rate risk as a result of its floating rate borrowings.

The Company entered into a forward interest rate swap agreement with an independent counterparty to hedge the variability in cash flows due to changes in Secured Overnight Financing Rate (SOFR) benchmark interest rate associated with variable rate borrowings.

The interest rate swap has a maturity date of September 30, 2029 and effectively converts the Company’s variable interest rate obligation to a fixed interest rate obligation.

The interest rate swap had an aggregate notional amount of 4.2 billion rupees as of December 31, 2025 and December 31, 2024.

The aggregate effective interest rate of the swap as of December 31, 2025 and December 31, 2024 was 8.25 %.

The fair value of the interest rate swap contract was a liability balance of $ 1.0 million as of December 31, 2025 which was recorded in Accrued liabilities within the consolidated balance sheet.

The fair value of the interest rate swap contract was zero as of December 31, 2023.

The fair value of the interest rate swap contract was $ 0.5 million as of December 31, 2024 which was recorded in Accrued liabilities within the consolidated balance sheet.

Derivative Instruments (continued)

The effect of cash flow hedges on the consolidated statement of earnings:

1 unchanged sentence

Derivatives in ASC 815 cash flow

hedging relationships Amount of (loss) gain recognized in other

hedging relationships Amount of gain (loss) recognized in other

comprehensive loss on

10 unchanged sentences

Interest rate swaps ( 0.5 ) ( 0.5 ) Interest Expense ( 0.4 ) ( 0.1 )

$ 3.5 $ ( 1.2 ) $ 1.2 $ 2.1

Net Investment Hedges

4 unchanged sentences

These hedges are determined to be effective.

The Company recognized $ 2.3 million of after tax gains and $( 1.8 ) million of after-tax losses associated with hedges of a net investment in non-U.S.

The Company recognized $ 8.8 million of after-tax losses and $ 2.3 million of after-tax gains associated with hedges of a net investment in non-U.S.

subsidiaries in currency translation adjustment in other comprehensive income in 2025 and 2024, respectively.

The contractual amount of the Company’s foreign currency denominated intercompany debt that are designated as net investment hedge was 1.5 billion RMB as of December 31, 2024.

The fair value of the net investment hedges was zero as of December 31, 2024.

The contractual amount of the Company’s foreign currency denominated intercompany debt that are designated as net investment hedge was $ 204.0 million as of December 31, 2023.

The fair value of the third-party foreign currency forward contracts was a liability balance $( 4.2 ) million as of December 31, 2023 which was recorded in Accrued liabilities within the consolidated balance sheet.

Balance Sheet Hedges

Foreign Exchange Contracts

The Company periodically enters into foreign exchange contracts to mitigate the foreign currency volatility relative to certain intercompany loans.

These foreign exchange contracts did not qualify for hedge accounting in accordance with ASC 815 and as such were marked to market through earnings.

The combined fair value of the foreign exchange contracts was zero as of December 31, 2024.

The combined fair value of the foreign exchange contracts was an liability balance of $( 0.8 ) million as of December 31, 2023 and recorded in Accrued liabilities within the consolidated balance sheet.

The following table summarizes the contractual amounts of the Company's foreign exchange contracts that are designated as balance sheet hedges:

December 31 (dollars in millions) 2024 2023

Buy Sell Buy Sell

Canadian dollar $ — $ 6.4 $ 44.1 $ —

Chinese yuan — — 206.8 —

Total $ — $ 6.4 $ 250.9 $ —

The amounts recognized within the consolidated statements of earnings related to the Company's foreign exchange contracts are set forth below.

Derivative Instruments (continued)

Years ended December 31 (dollars in millions)

Derivatives not designated as hedging instruments:

Location of within the consolidated statements of earnings

2024 2023 2022

Foreign exchange contracts Other expense (income) - net $ 0.9 $ ( 3.7 ) $ 1.2

The components of the provision for (benefit from) income taxes consisted of the following:

The contractual amount of the Company’s foreign currency denominated intercompany debt that are designated as net investment hedge was 1.5 billion RMB as of both December 31, 2025 and December 31, 2024.

The fair value of the net investment hedges was zero as of both December 31, 2025 and December 31, 2024.

The components of the provision for income taxes consisted of the following:

Years ended December 31 (dollars in millions) 2025 2024 2023

6 unchanged sentences

$ 168.9 $ 167.4 $ 176.9

The provision for (benefit from) income taxes differs from the U.S.

Income Taxes (continued)

The provision for income taxes differs from the U.S.

federal statutory rate due to the following items:

Years ended December 31 2025 2024 2023

Provision at U.S.

federal statutory rate (1)

Dollars Percentages Dollars Percentages Dollars Percentages

federal statutory tax rate $ 150.2 21.0 % $ 147.2 21.0 % $ 154.0 21.0 %

State and local income tax, net of federal (national) benefit (1)

21.0 2.9 18.1 2.6 21.0 2.9

State taxes, net of federal benefit (1)

U.S pension plan settlement expense (1)

International income tax rate differential—China ( 1.1 ) ( 1.2 ) ( 4.6 )

International income tax rate differential—other 0.7 1.3 3.5

Research tax credits ( 0.4 ) ( 0.4 ) ( 1.0 )

Excess tax benefit on stock compensation ( 0.5 ) ( 0.4 ) ( 0.5 )

Foreign tax effects

Tax benefit from research and development expenditures ( 8.5 ) ( 1.2 ) ( 7.9 ) ( 1.1 ) ( 10.1 ) ( 1.4 )

Other 4.2 0.6 3.2 0.5 5.3 0.7

Other foreign jurisdictions 6.8 1.0 1.5 0.2 6.2 0.9

Other Adjustments ( 4.8 ) ( 0.7 ) 5.3 0.7 0.5 0.0

$ 168.9 23.6 % $ 167.4 23.9 % $ 176.9 24.1 %

(1) Included in 2022 is tax effects of the pension plan settlement expense associated with the termination of the Plan.

Refer to Note 13, “Pension and Other Postretirement Benefits” for more information.

A tax benefit of $ 101.9 million on the pretax expense were reflected in computed tax provision at U.S.

federal statutory rate and state taxes, net of federal tax benefit for 2022.

In 2022, the tax benefit of $ 65.8 million or a 29.5 percent benefit related to the release of stranded tax effects in AOCL through the income statement was reflected in U.S.

pension plan settlement expense.

(1) The state and local jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Florida, Illinois, Massachusetts, Maryland, New Jersey, New York and New York City for 2025, California, Illinois, Maryland, Michigan, New Jersey, New York, Pennsylvania and Tennessee for 2024 and California, Florida, Illinois, Massachusetts, New Jersey, New York, Pennsylvania and Tennessee for 2023.

Components of earnings before income taxes were as follows:

3 unchanged sentences

$ 715.1 $ 701.0 $ 733.5

Our 2022 provision for income taxes included $ 167.7 million of tax benefit related to the effective settlement of the Plan, $ 101.9 million of which was the related tax effect on the pretax expense of $ 417.3 million and $ 65.8 million of which was related to the release of stranded tax effects in AOCL through the Tax Cuts and Jobs Act.

Refer to Note 13, “Pension and Other Postretirement Benefits,” for more information.

The Company paid income taxes of $ 187.7 million, $ 189.5 million, and $ 175.4 million in 2024, 2023 and 2022, respectively.

Income Taxes (continued)

The cash taxes paid by the Company were as follows:

Years ended December 31 (dollars in millions) 2025 2024 2023

Federal $ 119.2 $ 136.1 $ 134.8

State 21.7 28.2 25.7

International

Canada 11.4 11.4 11.6

China 9.3 8.3 15.0

Other foreign jurisdictions 3.6 3.7 2.4

$ 165.2 $ 187.7 $ 189.5

Undistributed earnings of the Company’s foreign subsidiaries amounted to $ 633.1 million at December 31, 2025.

5 unchanged sentences

Determination of the amount of unrecognized state and local deferred income tax liability and associated foreign withholding taxes is not practicable due to the complexities associated with its hypothetical calculation.

Income Taxes (continued)

The tax effects of temporary differences of assets and liabilities between income tax and financial reporting are as follows:

28 unchanged sentences

Balance at December 31 $ 13.0 $ 16.2

Income Taxes (continued)

The amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate is $ 4.9 million.

25 unchanged sentences

Inventory Repurchase Arrangements

The Company maintains a commercial relationship with a supply-chain service provider (the Provider) in connection with the Company’s business in China.

In this capacity, the Provider offers order-entry, warehousing and logistics support.

The Provider also offers asset-backed financing to certain of the Company’s distributors in China to facilitate their working capital needs.

To facilitate its financing support business, the Provider has collateralized lending facilities in place with multiple Chinese banks under which the Company has agreed to repurchase inventory if both requested by the banks and certain defined conditions are met, primarily related to the aging of the distributors’ notes.

The Company maintained a commercial relationship with a supply-chain service provider (the Provider) in connection with the Company’s business in China.

In this capacity, the Provider offered order-entry, warehousing and logistics support.

The Provider also offered asset-backed financing to certain of the Company’s distributors in China to facilitate their working capital needs.

To facilitate its financing support business, the Provider collateralized lending facilities in place with multiple Chinese banks under which the Company agreed to repurchase inventory if both requested by the banks and certain defined conditions are met, primarily related to the aging of the distributors’ notes.

The Provider is required to indemnify the Company for any losses the Company would incur in the event of an inventory repurchase under these arrangements.

Potential losses under the repurchase arrangements represent the difference between the repurchase price and net proceeds from the resale of product plus costs incurred in the process, less related distributor rebates.

As of December 31, 2025, the Company terminated the arrangement with the Provider.

Existing loan balances will be paid down throughout 2026 with no new loans offered.

Before considering any reduction of distributor rebate accruals of $ 1.9 million and $ 2.0 million as of December 31, 2025 and December 31, 2024, respectively, and from the resale of the related inventory, the gross amount the Company would be obligated to repurchase, which would be contingent on the default of all of the outstanding loans, was approximately $ 2.1 million and $ 2.9 million as of December 31, 2025 and December 31, 2024, respectively.

The Company’s reserves for estimated losses under repurchase arrangements were immaterial as of December 31, 2025 and December 31, 2024.

Legal Judgment Income

On September 28, 2022, the Company received a cash judgment of $ 11.5 million from a competitor of our North America segment related to its infringement of one of the Company’s patents.

The terms of the judgment resulted in pre-tax income of $ 11.5 million which is recorded as an offset to selling, general and administrative expenses and a related tax expense of $ 2.9 million.

Operations by Segment

1 unchanged sentence

North America and Rest of World.

The Rest of World segment is primarily comprised of China, Europe and India.

The Rest of World segment is primarily comprised of China, India, and Europe.

Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products.

18 unchanged sentences

Selling, general and administrative expenses 444.3 235.9 — 680.2 79.2 759.4

Restructuring and impairment expense 6.3 11.3 — 17.6 — 17.6

Other expense (income), net (1)

2 unchanged sentences

Interest expense ( 13.5 )

Earning before provision for income taxes $ 701.0

(1) Other expense (income), net consist primarily of interest income that is located within Corporate Expenses.

Earnings before provision for income taxes $ 715.1

(1) Other expense (income), net consists primarily of interest income that is located within Corporate Expenses.

Operations by Segment (continued)

December 31, 2024

16 unchanged sentences

Earnings before provision for income taxes $ 701.0

(2) Other expense (income), net consist primarily of interest income that is located within Corporate Expenses.

Operations by Segment (continued)

(2) Other expense (income), net consists primarily of interest income that is located within Corporate Expenses.

December 31, 2023

10 unchanged sentences

Selling, general and administrative expenses 411.6 243.0 — 654.6 72.8 727.4

Restructuring and impairment expense — 15.7 — 15.7 3.1 18.8

Other expense (income), net (3)

3 unchanged sentences

Earnings before provision for income taxes $ 733.5

(3) Other expense (income), net consist primarily of a pre-tax pension settlement expense of $ 346.8 million in the North America segment and $ 70.5 million within Corporate expenses.

(3) Other expense (income), net consists primarily of interest income that is located within Corporate Expenses.

In 2025, sales to the Company's North America segment’s two largest customers were $ 599.7 million and $ 467.8 million which represented 16 percent and 12 percent of the Company’s net sales, respectively.

1 unchanged sentence

In 2023, sales to the Company's North America segment’s two largest customers were $ 604.5 million and $ 509.0 million which represented 16 percent and 13 percent of the Company’s net sales, respectively.

Operations by Segment (continued)

Assets, depreciation and capital expenditures by segment

5 unchanged sentences

Corporate (1)

269.8 332.7 441.5 1.4 1.4 1.4 — 0.1 3.2

Total $ 3,142.8 $ 3,240.0 $ 3,213.9 $ 85.1 $ 78.8 $ 78.3 $ 70.8 $ 108.0 $ 72.6

(1) The majority of corporate assets consist of cash, cash equivalents, marketable securities, and deferred income taxes.

Operations by Segment (continued)

Net sales and long-lived assets by geographic location

8 unchanged sentences

Total $ 778.4 $ 764.3 $ 743.4 Total $ 3,830.2 $ 3,818.1 $ 3,852.8

Subsequent Events

On January 6, 2026, the Company completed the acquisition of LVC Holdco LLC (“Leonard Valve”).

The transaction was completed for $ 470.0 million, subject to customary adjustments.

The all-cash transaction is valued at approximately $ 412.0 million after adjusting for estimated tax benefits and was funded with cash borrowed under a new credit agreement.

The Company has not completed the analysis of identifying and estimating the fair value of identifiable intangible assets acquired.

We anticipate preparing a preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed by the end of the second quarter of fiscal 2026.

The measurement period for the valuation of net assets acquired ends as soon as information on the facts and circumstances that existed as of the acquisition date becomes available, but not to exceed 12 months following the acquisition date.

Adjustments in purchase price allocations may require a change in the amounts allocated to net assets acquired during the periods in which the adjustments are determined.

On January 29, 2026, the Company identified a compromise to a portion of the Ashland City, Tennessee facility roof structure due to a severe ice and snow weather event.

For safety purposes, production has been halted temporarily in the area of the facility impacted while remediation activities are underway.

The Company has shifted certain production activities to other facilities to address the temporary impact.

The Company has insurance coverage for the repair of the assets that were impacted and is working closely with its insurance carrier and claims adjusters to ensure financial recovery due to the event.

The Company’s insurance policies also provide business interruption coverage, including lost profits, and the reimbursement of other expenses and costs to be incurred relating to the damages and losses suffered.

The Company’s evaluation of the situation and associated remediation activities is ongoing.

As of the date of this filing, the Company does not expect the event to result in a material impact on its financial results.

ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data