What changed in this filing

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Item 1. Financial Statements

2024-07-23 compared with 2024-04-23 · 177 added, 112 removed, 464 unchanged (38% of the section changed)

2 unchanged sentences

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

Three months ended

In millions, except per-share data March 31,

2024 March 31,

Three months ended Six months ended

In millions, except per-share data June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Net sales $ 1,099.3 $ 1,082.5 $ 2,116.5 $ 2,111.1

4 unchanged sentences

Operating income 248.0 208.5 428.8 392.1

Other expense

Other expense (income)

Net interest expense 26.3 31.8 53.6 64.2

Other expense 0.1 0.7

Other expense (income)

0.8 ( 4.8 ) 0.9 ( 4.1 )

Income from continuing operations before income taxes 220.9 181.5 374.3 332.0

1 unchanged sentence

Net income from continuing operations 186.1 154.2 319.6 282.7

(Loss) income from discontinued operations, net of tax

Loss from discontinued operations, net of tax

— ( 1.3 ) ( 0.2 ) ( 0.1 )

Net income $ 186.1 $ 152.9 $ 319.4 $ 282.6

4 unchanged sentences

Comprehensive income $ 182.2 $ 150.4 $ 316.5 $ 285.0

Earnings per ordinary share

Earnings (loss) per ordinary share

Continuing operations $ 1.12 $ 0.94 $ 1.93 $ 1.71

26 unchanged sentences

Current liabilities

Current maturities of short-term borrowings

Accounts payable 295.0 278.9

9 unchanged sentences

Commitments and contingencies (Note 15)

Ordinary shares $ 0.01 par value, 426.0 authorized, 166.0 and 165.3 issued at March 31, 2024 and December 31, 2023, respectively

Ordinary shares $ 0.01 par value, 426.0 authorized, 165.5 and 165.3 issued at June 30, 2024 and December 31, 2023, respectively

Additional paid-in capital 1,569.2 1,593.6

6 unchanged sentences

Condensed Consolidated Statements of Cash Flows (Unaudited)

Three months ended

In millions March 31,

2024 March 31,

Six months ended

In millions June 30,

2024 June 30,

Operating activities

Net income $ 319.4 $ 282.6

Loss (income) from discontinued operations, net of tax

Loss from discontinued operations, net of tax

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

5 unchanged sentences

Asset impairment and write-offs 0.8 4.4

Gain on sale of assets — ( 3.4 )

Changes in assets and liabilities, net of effects of business acquisitions

6 unchanged sentences

Other non-current assets and liabilities 10.9 ( 1.5 )

Net cash used for operating activities of continuing operations

( 107.4 ) ( 106.6 )

Net cash provided by operating activities of continuing operations

Net cash used for operating activities of discontinued operations ( 0.2 ) ( 1.6 )

Net cash used for operating activities

( 107.6 ) ( 106.6 )

Net cash provided by operating activities

Investing activities

2 unchanged sentences

Acquisitions, net of cash acquired — 0.2

Other ( 0.5 ) 4.1

Net cash used for investing activities ( 36.8 ) ( 26.1 )

Financing activities

Net borrowings of revolving long-term debt

Net receipts of short-term borrowings

Net repayments of revolving long-term debt

Repayments of long-term debt ( 237.5 ) —

Shares issued to employees, net of shares withheld 9.3 0.8

Repurchases of ordinary shares ( 50.0 ) —

Dividends paid ( 76.2 ) ( 72.5 )

Net cash provided by financing activities

Net cash used for financing activities

( 351.1 ) ( 276.0 )

Effect of exchange rate changes on cash and cash equivalents 0.3 ( 3.7 )

18 unchanged sentences

Balance - March 31, 2024 166.0 $ 1.7 $ 1,607.6 $ 1,961.3 $ ( 243.4 ) $ 3,327.2

Net income — — — 186.1 — 186.1

Other comprehensive loss, net of tax — — — — ( 3.9 ) ( 3.9 )

Dividends declared, $ 0.23 per share

— — — ( 38.1 ) — ( 38.1 )

Share repurchases ( 0.6 ) — ( 50.0 ) — — ( 50.0 )

Exercise of options, net of shares tendered for payment 0.1 — 3.7 — — 3.7

Shares surrendered by employees to pay taxes — — ( 0.5 ) — — ( 0.5 )

Share-based compensation — — 8.4 — — 8.4

Balance - June 30, 2024

165.5 $ 1.7 $ 1,569.2 $ 2,109.3 $ ( 247.3 ) $ 3,432.9

In millions Ordinary shares Additional paid-in capital Retained earnings Accumulated

12 unchanged sentences

Balance - March 31, 2023 165.0 $ 1.7 $ 1,558.0 $ 1,483.9 $ ( 234.1 ) $ 2,809.5

Net income — — — 152.9 — 152.9

Other comprehensive loss, net of tax — — — — ( 2.5 ) ( 2.5 )

Dividends declared, $ 0.22 per share

— — — ( 36.4 ) — ( 36.4 )

Exercise of options, net of shares tendered for payment 0.1 — 6.3 — — 6.3

Shares surrendered by employees to pay taxes — — ( 1.4 ) — — ( 1.4 )

Share-based compensation — — 6.9 — — 6.9

Balance - June 30, 2023

165.1 $ 1.7 $ 1,569.8 $ 1,600.4 $ ( 236.6 ) $ 2,935.3

See accompanying notes to condensed consolidated financial statements.

16 unchanged sentences

These rules, if adopted, will require registrants to disclose certain climate-related information, including Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics, in registration statements and annual reports, when material.

Disclosure requirements, absent the results of pending legal challenges, will begin phasing in with our annual reporting for the year ending December 31, 2025.

Disclosure requirements, absent the results of pending legal challenges, may begin phasing in with our annual reporting for the year ending December 31, 2025.

We are currently evaluating the impact the rules will have on our disclosures.

2 unchanged sentences

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

Three months ended

In millions March 31,

2024 March 31,

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

$ 773.6 $ 757.6 $ 1,478.8 $ 1,473.4

1 unchanged sentence

Developing (1)

139.3 142.5 262.0 263.6

Other Developed (2)

59.2 62.9 116.9 126.8

Consolidated net sales $ 1,099.3 $ 1,082.5 $ 2,116.5 $ 2,111.1

2 unchanged sentences

Vertical market net sales information was as follows:

Three months ended

In millions March 31,

2024 March 31,

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Residential $ 581.4 $ 536.0 $ 1,124.6 $ 1,102.4

5 unchanged sentences

Performance obligations

As of March 31, 2024, we had $ 103.8 million of remaining performance obligations on contracts with an original expected duration of one year or more.

As of June 30, 2024, we had $ 88.1 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.

1 unchanged sentence

Contract assets and liabilities consisted of the following:

In millions March 31,

In millions June 30,

2024 December 31,

4 unchanged sentences

$ 26.1 $ 17.1 $ 9.0 52.6 %

The $ 6.0 million increase in net contract assets from December 31, 2023 to March 31, 2024 was primarily the result of timing of milestone payments.

Approximately 60 % of our contract liabilities at December 31, 2023 were recognized in revenue in the first quarter of 2024.

Total share-based compensation expense for the three months ended March 31, 2024 and 2023 was as follows:

Three months ended

In millions March 31,

2024 March 31,

The $ 9.0 million increase in net contract assets from December 31, 2023 to June 30, 2024 was primarily the result of timing of milestone payments.

Approximately 85 % of our contract liabilities at December 31, 2023 were recognized in revenue in the first half of 2024.

Total share-based compensation expense for the three and six months ended June 30, 2024 and 2023 was as follows:

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Restricted stock units $ 4.3 $ 3.7 $ 8.1 $ 7.4

21 unchanged sentences

The Transformation Program is structured in multiple phases and is expected to empower us to work more efficiently and optimize our business to better serve our customers while meeting our financial objectives.

During the three months ended March 31, 2024, we initiated and continued execution of our Transformation Program as well as certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business.

Restructuring and Transformation Program initiatives included a reduction in hourly and salaried headcount of approximately 100 employees during the three months ended March 31, 2024.

During the six months ended June 30, 2024, we initiated and continued execution of activities associated with our Transformation Program as well as initiated and continued certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business.

Restructuring and Transformation Program initiatives included a reduction in hourly and salaried headcount of approximately 200 employees during the six months ended June 30, 2024.

Restructuring and transformation-related costs included within Cost of goods sold and Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income included the following:

Three months ended

In millions March 31,

2024 March 31,

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Restructuring Initiatives

1 unchanged sentence

Other restructuring costs and related adjustments (1)

( 0.1 ) ( 0.1 ) 0.9 0.5

Total restructuring costs 5.3 0.8 10.3 3.9

2 unchanged sentences

Other transformation costs (2)

11.5 5.7 28.1 12.3

Total transformation costs 11.8 6.0 28.8 14.5

1 unchanged sentence

(1) Other restructuring costs and related adjustments primarily consist of certain accruals, various contract termination costs, asset impairments and inventory write-offs associated with business and product line exits.

(2) Other transformation costs primarily consist of professional services and project management related costs.

Restructuring and transformation costs by reportable segment were as follows:

Three months ended

In millions March 31,

2024 March 31,

(2) Other transformation costs primarily consist of professional services and project management related costs, partially offset by gain on sale of assets.

Restructuring and transformation costs by reportable segment as well as Corporate and other were as follows:

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Flow $ 2.4 $ 0.8 $ 5.0 $ 1.2

Water Solutions 0.9 ( 2.6 ) 1.5 ( 1.1 )

Other 15.1 6.4

Consolidated $ 22.0 $ 11.6

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 three months ended March 31, 2024:

In millions March 31,

Pool 1.7 1.9 5.4 5.2

Corporate and other

12.1 6.7 27.2 13.1

Total restructuring and transformation costs

$ 17.1 $ 6.8 $ 39.1 $ 18.4

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 six months ended June 30, 2024:

In millions June 30,

Beginning balance $ 13.4

6 unchanged sentences

Basic and diluted earnings per share were calculated as follows:

Three months ended

In millions, except per-share data March 31,

2024 March 31,

Three months ended Six months ended

In millions, except per-share data June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Net income $ 186.1 $ 152.9 $ 319.4 $ 282.6

4 unchanged sentences

Dilutive impact of stock options, restricted stock units and performance share units

1.4 1.1 1.5 1.0

Diluted 167.3 166.1 167.3 165.9

Earnings per ordinary share

Earnings (loss) per ordinary share

Continuing operations $ 1.12 $ 0.94 $ 1.93 $ 1.71

5 unchanged sentences

Anti-dilutive stock options excluded from the calculation of diluted earnings per share

0.2 0.3 0.2 0.6

Accounts Receivable

5 unchanged sentences

We review our allowance for credit losses on a quarterly basis.

Activity related to our allowance for credit losses is summarized as follows for the three months ended March 31, 2024:

In millions March 31,

Activity related to our allowance for credit losses is summarized as follows for the six months ended June 30, 2024:

In millions June 30,

Beginning balance $ 11.2

Bad debt expense

Write-offs, net of recoveries ( 1.0 )

Ending balance $ 10.6

3 unchanged sentences

Supplemental Balance Sheet Information

In millions March 31,

In millions June 30,

2024 December 31,

49 unchanged sentences

2023 Foreign Currency

Translation March 31,

Translation June 30,

Flow $ 767.1 $ ( 19.0 ) $ 748.1

3 unchanged sentences

Identifiable intangible assets consisted of the following:

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

In millions Cost Accumulated

4 unchanged sentences

Proprietary technology and patents 89.3 ( 45.8 ) 43.5 89.7 ( 43.2 ) 46.5

Total finite-life intangibles

Total definite-life intangibles

1,190.1 ( 426.8 ) 763.3 1,195.9 ( 405.0 ) 790.9

2 unchanged sentences

Total intangibles $ 1,439.2 $ ( 426.8 ) $ 1,012.4 $ 1,447.4 $ ( 405.0 ) $ 1,042.4

Identifiable intangible asset amortization expense was $ 13.5 million and $ 13.8 million for the three months ended March 31, 2024 and 2023, respectively.

Identifiable intangible asset amortization expense was $ 13.4 million and $ 13.9 million for the three months ended June 30, 2024 and 2023, and $ 26.9 million and $ 27.7 million for the six months ended June 30, 2024 and 2023, respectively.

Estimated future amortization expense for identifiable intangible assets during the remainder of 2024 and the next five years is as follows:

4 unchanged sentences

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

In millions Average interest rate as of March 31, 2024 Maturity

Year March 31,

In millions Average interest rate as of June 30, 2024 Maturity

Year June 30,

2024 December 31,

1 unchanged sentence

Term Loan Facility 6.802 % 2023 - 2027 950.0 987.5

Term loans (Senior Credit Facility) 6.550 % 2024 200.0 200.0

Term loans (Senior Credit Facility) N/A 2024 — 200.0

Senior notes - fixed rate (1)

6 unchanged sentences

Total debt 1,755.9 1,988.3

Current maturities of short-term borrowings

Long-term debt $ 1,752.6 $ 1,988.3

(1) Senior notes are guaranteed as to payment by Pentair plc.

1 unchanged sentence

are parties to a credit agreement (the “Senior Credit Facility”), with Pentair as guarantor and PFSA and Pentair, Inc.

as borrowers, providing for a $ 900.0 million senior unsecured revolving credit facility and a $ 200.0 million senior unsecured term loan facility.

The revolving credit facility has a maturity date of December 16, 2026 and the term loan facility has a maturity date of December 16, 2024.

as borrowers, providing for a $ 900.0 million senior unsecured revolving credit facility.

During the second quarter of 2024, PFSA repaid $ 200.0 million of term loans under the Senior Credit Facility.

The revolving credit facility has a maturity date of December 16, 2026.

Borrowings under the Senior Credit Facility bear interest at a rate equal to an alternate base rate, adjusted term secured overnight financing rate, adjusted euro interbank offered rate, adjusted daily simple secured overnight financing rate or central bank 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.

As of March 31, 2024, total availability under the Senior Credit Facility was $ 798.6 million.

In addition, PFSA has the option to request to increase the revolving credit facility and/or to enter into one or more additional tranches of term loans in an aggregate amount of up to $ 300.0 million, subject to customary conditions, including the commitment of the participating lenders.

As of June 30, 2024, total availability under the Senior Credit Facility was $ 900.0 million.

In addition, PFSA has the option to request to increase the revolving credit facility and/or to enter into one or more tranches of term loans in an aggregate amount of up to $ 300.0 million, subject to customary conditions, including the commitment of the participating lenders.

In addition, Pentair and PFSA are parties to a senior unsecured term loan facility (the “Term Loan Facility”), with PFSA, as borrower, Pentair, as guarantor, providing for an aggregate principal amount of $ 1.0 billion.

5 unchanged sentences

For purposes of the Leverage Ratio, the Senior Credit Facility and the Term Loan Facility provide 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 and the Term Loan Facility, we have various other credit facilities with an aggregate availability of $ 20.8 million, of which there were no outstanding borrowings at March 31, 2024.

Borrowings under these credit facilities bear interest at variable rates.

We have $ 43.8 million of Term Loan Facility payments and $ 200.0 million of payments under the senior unsecured term loan facility, associated with the Senior Credit Facility, due in the next twelve months.

We classified this debt as long-term as of

Pentair plc and Subsidiaries

Notes to condensed consolidated financial statements (unaudited)

March 31, 2024 as we have the intent and ability to refinance such obligation on a long-term basis under the revolving credit facility under the Senior Credit Facility.

Debt outstanding, excluding unamortized issuance costs and discounts, at March 31, 2024 matures on a calendar year basis as follows:

We have $ 25.0 million of Term Loan Facility payments due in the next twelve months.

We classified this debt as long-term as of June 30, 2024 as we have the intent and ability to refinance such obligation on a long-term basis under the revolving credit facility under the Senior Credit Facility.

Debt outstanding, excluding unamortized issuance costs and discounts, at June 30, 2024 matures on a calendar year basis as follows:

In millions 2024 2025 2026 2027 2028 2029 Thereafter Total

14 unchanged sentences

The majority of our foreign currency contracts have an original maturity date of less than one year.

At March 31, 2024 and December 31, 2023, we had outstanding foreign currency derivative contracts with gross notional U.S.

At June 30, 2024 and December 31, 2023, we had outstanding foreign currency derivative contracts with gross notional U.S.

dollar equivalent amounts of $ 17.9 million and $ 23.9 million, respectively.

1 unchanged sentence

Cross currency swaps

At March 31, 2024 and December 31, 2023, we had outstanding cross currency swap agreements with a combined notional amount of $ 917.1 million and $ 940.2 million, respectively.

At June 30, 2024 and December 31, 2023, we had outstanding cross currency swap agreements with a combined notional amount of $ 909.8 million and $ 940.2 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 losses of $ 33.4 million and $ 51.6 million at March 31, 2024 and December 31, 2023, respectively, recorded in Accumulated other comprehensive loss associated with our cross currency swap activity.

We had deferred foreign currency losses of $ 27.7 million and $ 51.6 million at June 30, 2024 and December 31, 2023, respectively, recorded in Accumulated other comprehensive loss associated with our cross currency swap activity.

The periodic interest settlements related to our cross currency swap agreements are classified as operating activities.

3 unchanged sentences

We enter into these agreements to hedge the variability of interest expense and cash flows attributable to changes in interest rates of our variable rate debt.

As of March 31, 2024, we had an aggregate notional amount of $ 300.0 million and $ 200.0 million in interest rate swaps and collars, respectively, that are designated as cash flow hedges.

As of June 30, 2024, we had an aggregate notional amount of $ 300.0 million and $ 200.0 million in interest rate swaps and collars, respectively, that are designated as cash flow hedges.

Unrealized gains and losses related to the fair value of the interest rate swaps are recorded in Accumulated other comprehensive loss on our Condensed Consolidated Balance Sheets.

We had unrealized gains of $ 4.8 million and $ 0.3 million at March 31, 2024 and December 31, 2023, respectively, recorded in Accumulated other comprehensive loss associated with our interest rate swap and collar activity.

We had unrealized gains of $ 5.2 million and $ 0.3 million at June 30, 2024 and December 31, 2023, respectively, recorded in Accumulated other comprehensive loss associated with our interest rate swap and collar activity.

The periodic interest settlements related to our interest rate swaps and collars are classified as operating activities.

26 unchanged sentences

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

March 31, 2024

June 30, 2024

In millions Level 1 Level 2 Level 3 NAV Total

19 unchanged sentences

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 three months ended March 31, 2024 was 13.0 %, compared to 14.6 % for the three months ended March 31, 2023.

The effective income tax rate for the six months ended June 30, 2024 was 14.6 %, compared to 14.8 % for the six months ended June 30, 2023.

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 the mix of global earnings or adjustments that are required to be reported in the specific quarter of resolution.

The total gross liability for uncertain tax positions was $ 38.3 million and $ 38.6 million at March 31, 2024 and December 31, 2023, respectively.

The total gross liability for uncertain tax positions was $ 37.3 million and $ 38.6 million at June 30, 2024 and December 31, 2023, 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.

2 unchanged sentences

completed passage of legislation to comply with the Pillar Two framework which became effective on January 1, 2024.

For the three months ended March 31, 2024, the impact of Pillar Two on our condensed consolidated financial statements was not material.

For the six months ended June 30, 2024, the impact of Pillar Two on our condensed consolidated financial statements was not material.

Pentair plc and Subsidiaries

1 unchanged sentence

Benefit Plans

Components of net periodic benefit expense for our pension plans for the three months ended March 31, 2024 and 2023 were as follows:

Three months ended

In millions March 31,

2024 March 31,

Components of net periodic benefit expense for our pension plans for the three and six months ended June 30, 2024 and 2023 were as follows:

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Service cost $ 0.4 $ 0.4 $ 0.8 $ 0.8

2 unchanged sentences

Net periodic benefit expense $ 1.3 $ 1.2 $ 2.6 $ 2.4

Components of net periodic benefit expense for our other post-retirement plans for the three months ended March 31, 2024 and 2023 were not material .

Components of net periodic benefit expense for our other post-retirement plans for the three and six months ended June 30, 2024 and 2023 were not material .

Shareholders’ Equity

2 unchanged sentences

The authorization expires on December 31, 2025 .

During the three months ended March 31, 2024, no ordinary shares were repurchased.

As of March 31, 2024, we had $ 600.0 million available for share repurchases under this authorization.

During the three and six months ended June 30, 2024, we repurchased 0.6 million of our ordinary shares for $ 50.0 million.

As of June 30, 2024, we had $ 550.0 million available for share repurchases under this authorization.

Dividends payable

On February 19, 2024, the Board of Directors declared a quarterly cash dividend of $ 0.23 per share, payable on May 3, 2024 to shareholders of record at the close of business on April 19, 2024.

As a result, the balance of dividends payable included in Other current liabilities on our Condensed Consolidated Balance Sheets was $ 38.2 million at March 31, 2024, compared to $ 38.0 million at December 31, 2023.

On May 6, 2024, the Board of Directors declared a quarterly cash dividend of $ 0.23 per share, payable on August 2, 2024 to shareholders of record at the close of business on July 19, 2024.

As a result, the balance of dividends payable included in Other current liabilities on our Condensed Consolidated Balance Sheets was $ 38.1 million at June 30, 2024, compared to $ 38.0 million at December 31, 2023.

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.

We are composed of three reporting segments:

Flow, Water Solutions and Pool.

We evaluate performance based on net sales and reportable segment income 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 and transformation activities, impairments and other unusual non-operating items.

Financial information by reportable segment is as follows:

Three months ended

In millions March 31,

2024 March 31,

Flow $ 384.3 $ 391.8

Water Solutions 273.1 272.0

Pool 359.5 364.3

Other 0.3 0.5

Consolidated $ 1,017.2 $ 1,028.6

Segment income (loss)

Reportable segment income represents operating income of each reportable segment inclusive of equity income of unconsolidated subsidiaries and exclusive of intangible amortization, costs of restructuring and transformation activities, impairments, legal accrual adjustments and settlements and other unusual non-operating items.

“Corporate and other” activity primarily consists of corporate expenses not allocated to the segments, including executive office, board of directors, and centrally-managed corporate functional or shared service costs related to finance, human resources, communications and corporate development.

These activities do not meet the criteria for a stand-alone reporting segment under accounting standards codification (“ASC”) 280.

Net sales of the Company’s reportable segments as well as Corporate and other were as follows:

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Flow $ 396.8 $ 411.6 $ 781.1 $ 803.4

1 unchanged sentence

Pool 391.5 334.3 751.0 698.6

Other ( 26.4 ) ( 22.6 )

Consolidated $ 217.3 $ 211.0

Reportable segment net sales

1,098.8 1,082.1 2,115.7 2,110.2

Corporate and other

0.5 0.4 0.8 0.9

$ 1,099.3 $ 1,082.5 $ 2,116.5 $ 2,111.1

Pentair plc and Subsidiaries

Notes to condensed consolidated financial statements (unaudited)

The following table presents a reconciliation of consolidated segment income to consolidated income from continuing operations before income taxes:

Three months ended

In millions March 31,

2024 March 31,

Segment income $ 217.3 $ 211.0

The following table presents a reconciliation of reportable segment income to consolidated income from continuing operations before income taxes:

Three months ended Six months ended

In millions June 30,

2024 June 30,

2023 June 30,

2024 June 30,

Reportable segment income

$ 84.4 $ 74.8 $ 161.7 $ 139.8

Water Solutions

72.9 74.8 128.5 127.2

133.6 105.1 244.4 221.3

Reportable segment income

290.9 254.7 534.6 488.3

Corporate and other

( 19.5 ) ( 20.5 ) ( 45.9 ) ( 43.1 )

Asset impairment and write-offs — ( 0.5 ) ( 0.8 ) ( 4.4 )

4 unchanged sentences

Interest expense, net ( 26.3 ) ( 31.8 ) ( 53.6 ) ( 64.2 )

Other expense

Other (expense) income

( 1.0 ) 4.2 ( 2.0 ) 3.3

4 unchanged sentences

Adjustments are made to accruals as claim data and historical experience warrant.

The changes in the carrying amount of service and product warranties from continuing operations for the three months ended March 31, 2024 were as follows:

In millions March 31,

The changes in the carrying amount of service and product warranties from continuing operations for the six months ended June 30, 2024 were as follows:

In millions June 30,

Beginning balance $ 65.0

7 unchanged sentences

In addition, we issue financial stand-by letters of credit primarily to secure our performance to third parties under self-insurance programs.

As of March 31, 2024 and December 31, 2023, the outstanding value of bonds, letters of credit and bank guarantees totaled $ 111.1 million and $ 124.3 million, respectively.

As of June 30, 2024 and December 31, 2023, the outstanding value of bonds, letters of credit and bank guarantees totaled $ 107.2 million and $ 124.3 million, respectively.

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

What changed 10-Q

Item 1. Financial Statements