UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended September 30, 2020    

OR

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

Commission file number 001-38265

nVent Electric plc

(Exact name of Registrant as specified in its charter)

Ireland	98-1391970
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification number)

The Mille, 1000 Great West Road, 8th Floor (East), London, TW8 9DW, United Kingdom

(Address of principal executive offices)

Registrant's telephone number, including area code: 44-20-3966-0279

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

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

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§223.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

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

Large accelerated filer ☑ Accelerated filer  ☐ Non-accelerated filer  ☐ Smaller reporting 
company  ☐ Emerging growth
company  ☐

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

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

On September 30, 2020, 170,118,318 shares of Registrant's common stock were outstanding.

nVent Electric plc

		Page
PART I FINANCIAL INFORMATION
ITEM 1.	Financial Statements (unaudited)
	Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)	3
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Cash Flows	5
	Condensed Consolidated Statements of Changes in Equity	6
	Notes to Condensed Consolidated Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	35
ITEM 4.	Controls and Procedures	35
PART II OTHER INFORMATION
ITEM 1.	Legal Proceedings	36
ITEM 1A.	Risk Factors	36
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
ITEM 6.	Exhibits	38
	Signatures	39

2

PART I FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

nVent Electric plc

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited)

	Three months ended				Nine months ended
In millions, except per-share data	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales	$	509.3	$	559.8	$	1,477.4	$	1,637.3
Cost of goods sold	312.5		335.7		925.0		991.1
Gross profit	196.8		224.1		552.4		646.2
Selling, general and administrative	107.4		126.2		334.8		359.4
Research and development	10.5		11.8		33.1		36.2
Impairment of goodwill and trade names	220.5		—		220.5		—
Operating income (loss)	(141.6)		86.1		(36.0)		250.6
Net interest expense	8.5		11.6		27.8		34.0
Other expense	0.7		0.9		2.2		2.8
Income (loss) before income taxes	(150.8)		73.6		(66.0)		213.8
Provision (benefit) for income taxes	(12.1)		13.7		28.3		36.6
Net income (loss)	$	(138.7)	$	59.9	$	(94.3)	$	177.2
Comprehensive income (loss), net of tax
Net income (loss)	$	(138.7)	$	59.9	$	(94.3)	$	177.2
Changes in cumulative translation adjustment	1.2		(8.0)		(15.7)		(1.8)
Changes in market value of derivative financial instruments, net of tax	(5.4)		2.3		6.8		8.8
Comprehensive income (loss)	$	(142.9)	$	54.2	$	(103.2)	$	184.2
Earnings (loss) per ordinary share
Basic	$	(0.82)	$	0.35	$	(0.56)	$	1.03
Diluted	$	(0.82)	$	0.35	$	(0.56)	$	1.02
Weighted average ordinary shares outstanding
Basic	170.0		169.1		169.9		172.3
Diluted	170.0		170.3		169.9		173.8
Cash dividends paid per ordinary share	$	0.175	$	0.175	$	0.525	$	0.525

See accompanying notes to condensed consolidated financial statements.

3

nVent Electric plc

Condensed Consolidated Balance Sheets (Unaudited)

	September 30, 2020		December 31, 2019
In millions, except per-share data
Assets
Current assets
Cash and cash equivalents	$	159.8	$	106.4
Accounts and notes receivable, net of allowances of $7.5 and $5.4, respectively	327.4		334.3
Inventories	238.9		244.7
Other current assets	89.9		113.3
Total current assets	816.0		798.7
Property, plant and equipment, net	278.1		284.5
Other assets
Goodwill	2,090.7		2,279.1
Intangibles, net	1,117.6		1,160.5
Other non-current assets	108.2		117.5
Total other assets	3,316.5		3,557.1
Total assets	$	4,410.6	$	4,640.3
Liabilities and Equity
Current liabilities
Current maturities of long-term debt and short-term borrowings	$	20.0	$	17.5
Accounts payable	139.1		187.1
Employee compensation and benefits	68.8		71.9
Other current liabilities	182.0		185.7
Total current liabilities	409.9		462.2
Other liabilities
Long-term debt	1,032.8		1,047.1
Pension and other post-retirement compensation and benefits	220.0		207.2
Deferred tax liabilities	234.7		237.8
Other non-current liabilities	99.8		93.5
Total liabilities	1,997.2		2,047.8
Equity
Ordinary shares $0.01 par value, 400.0 authorized, 170.1 and 169.5 issued at September 30, 2020 and December 31, 2019, respectively	1.7		1.7
Additional paid-in capital	2,516.2		2,502.7
Retained earnings	3.0		186.7
Accumulated other comprehensive loss	(107.5)		(98.6)
Total equity	2,413.4		2,592.5
Total liabilities and equity	$	4,410.6	$	4,640.3

See accompanying notes to condensed consolidated financial statements.

4

nVent Electric plc

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Nine months ended
In millions	September 30, 2020		September 30, 2019
Operating activities
Net income (loss)	$	(94.3)	$	177.2
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities
Depreciation	28.8		26.1
Amortization	48.1		45.6
Deferred income taxes	6.2		(1.9)
Share-based compensation	10.0		12.4
Impairment of goodwill and trade names	220.5		—
Changes in assets and liabilities, net of effects of business acquisitions
Accounts and notes receivable	7.8		(17.2)
Inventories	9.3		(18.4)
Other current assets	22.2		—
Accounts payable	(46.1)		(53.6)
Employee compensation and benefits	(3.5)		(7.7)
Other current liabilities	(3.4)		(1.9)
Other non-current assets and liabilities	(1.9)		(3.1)
Net cash provided by (used for) operating activities	203.7		157.5
Investing activities
Capital expenditures	(25.4)		(29.0)
Proceeds from sale of property and equipment	1.5		6.1
Acquisitions, net of cash acquired	(27.0)		(127.8)
Net cash provided by (used for) investing activities	(50.9)		(150.7)
Financing activities
Net receipts of revolving long-term debt	—		216.5
Repayments of long-term debt	(12.5)		(9.7)
Dividends paid	(89.2)		(91.1)
Shares issued to employees, net of shares withheld	4.7		5.3
Repurchases of ordinary shares	(3.2)		(235.7)
Net cash provided by (used for) financing activities	(100.2)		(114.7)
Effect of exchange rate changes on cash and cash equivalents	0.8		(1.6)
Change in cash and cash equivalents	53.4		(109.5)
Cash and cash equivalents, beginning of period	106.4		159.0
Cash and cash equivalents, end of period	$	159.8	$	49.5

See accompanying notes to condensed consolidated financial statements.

5

nVent Electric plc

Condensed Consolidated Statements of Changes in Equity (Unaudited)

In millions	Ordinary shares			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Total
	Number	Amount
Balance - December 31, 2019	169.5	$	1.7	$	2,502.7	$	186.7	$	(98.6)	$	2,592.5
Net income	—	—		—		18.6		—		18.6
Other comprehensive income (loss), net of tax	—	—		—		—		(6.5)		(6.5)
Dividends declared	—	—		—		(29.8)		—		(29.8)
Share repurchases	(0.2)	—		(3.2)		—		—		(3.2)
Exercise of options, net of shares tendered for payment	0.3	—		6.4		—		—		6.4
Issuance of restricted shares, net of cancellations	0.3	—		—		—		—		—
Shares surrendered by employees to pay taxes	(0.1)	—		(3.3)		—		—		(3.3)
Share-based compensation	—	—		1.9		—		—		1.9
Balance - March 31, 2020	169.8	$	1.7	$	2,504.5	$	175.5	$	(105.1)	$	2,576.6
Net income	—	—		—		25.8		—		25.8
Other comprehensive income (loss), net of tax	—	—		—		—		1.8		1.8
Dividends declared	—	—		—		(29.8)		—		(29.8)
Exercise of options, net of shares tendered for payment	—	—		0.2		—		—		0.2
Issuance of restricted shares, net of cancellations	0.1	—		—		—		—		—
Shares surrendered by employees to pay taxes	—	—		(0.6)		—		—		(0.6)
Share-based compensation	—	—		4.2		—		—		4.2
Balance - June 30, 2020	169.9	$	1.7	$	2,508.3	$	171.5	$	(103.3)	$	2,578.2
Net income (loss)	—	—		—		(138.7)		—		(138.7)
Other comprehensive income (loss), net of tax	—	—		—		—		(4.2)		(4.2)
Dividends declared	—	—		—		(29.8)		—		(29.8)
Exercise of options, net of shares tendered for payment	0.2	—		2.2		—		—		2.2
Shares surrendered by employees to pay taxes	—	—		(0.2)		—		—		(0.2)
Share-based compensation	—	—		5.9		—		—		5.9
Balance - September 30, 2020	170.1	$	1.7	$	2,516.2	$	3.0	$	(107.5)	$	2,413.4

6

In millions	Ordinary shares			Additional paid-in capital		Retained earnings		Accumulated other comprehensive loss		Total
	Number	Amount
Balance - December 31, 2018	177.2	$	1.8	$	2,709.7	$	83.4	$	(107.8)	$	2,687.1
Net income	—	—		—		56.4		—		56.4
Other comprehensive income (loss), net of tax	—	—		—		—		(3.2)		(3.2)
Dividends declared	—	—		—		(30.6)		—		(30.6)
Share repurchases	(3.0)	(0.1)		(79.8)		—		—		(79.9)
Exercise of options, net of shares tendered for payment	0.3	—		3.6		—		—		3.6
Issuance of restricted shares, net of cancellations	0.3	—		—		—		—		—
Shares surrendered by employees to pay taxes	(0.1)	—		(2.6)		—		—		(2.6)
Share-based compensation	—	—		4.3		—		—		4.3
Balance - March 31, 2019	174.7	$	1.7	$	2,635.2	$	109.2	$	(111.0)	$	2,635.1
Net income	—	—		—		60.9		—		60.9
Other comprehensive income (loss), net of tax	—	—		—		—		15.9		15.9
Dividends declared	—	—		—		(29.6)		—		(29.6)
Share repurchases	(5.9)	—		(152.8)		—		—		(152.8)
Exercise of options, net of shares tendered for payment	0.3	—		4.8		—		—		4.8
Shares surrendered by employees to pay taxes	—	—		(0.6)		—		—		(0.6)
Share-based compensation	—	—		4.1		—		—		4.1
Balance - June 30, 2019	169.1	$	1.7	$	2,490.7	$	140.5	$	(95.1)	$	2,537.8
Net income	—	—		—		59.9		—		59.9
Other comprehensive income (loss), net of tax	—	—		—		—		(5.7)		(5.7)
Dividends declared	—	—		—		(29.6)		—		(29.6)
Exercise of options, net of shares tendered for payment	—	—		0.3		—		—		0.3
Issuance of restricted shares, net of cancellations	0.1	—		—		—		—		—
Shares surrendered by employees to pay taxes	—	—		(0.3)		—		—		(0.3)
Share-based compensation	—	—		4.1		—		—		4.1
Balance - September 30, 2019	169.2	$	1.7	$	2,494.8	$	170.8	$	(100.8)	$	2,566.5

See accompanying notes to condensed consolidated financial statements.

7

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

1.Basis of Presentation and Responsibility for Interim Financial Statements

Business

nVent Electric plc ("nVent," "we," "us," "our" or the "Company") is a leading global provider of electrical connection and protection solutions. The Company is comprised of three reporting segments: Enclosures, Electrical & Fastening Solutions and Thermal Management.

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

Separation from Pentair

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

Basis of presentation

The accompanying unaudited condensed consolidated financial statements of nVent have been prepared following the requirements of the 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 and combined financial statements and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2019.

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

Adoption of new accounting standards

Effective January 1, 2020, the Company adopted Accounting Standards Update 2017-04, "Intangibles-Goodwill and Other (Topic 350)". The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment expense for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit.

In March 2020, the SEC amended Rule 3-10 of Regulation S-X regarding financial disclosure requirements for registered debt offerings involving subsidiaries as either issuers or guarantors. This amended rule narrows the circumstances that require separate financial statements or summarized financial disclosures of subsidiary issuers and guarantors and simplifies the summarized disclosures required in lieu of those statements. As a result of this amended rule, we have included narrative disclosures in lieu of separate financial statements and summarized financial disclosures as amounts presented would not be material because the guarantor and subsidiary issuer do not have material independent assets and operations unrelated to investments in consolidated subsidiaries.

8

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

2.Revenue

Disaggregation of revenue

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

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

	Three months ended September 30, 2020
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
U.S. and Canada	$	159.7	$	109.2	$	69.6	$	338.5
Developed Europe (1)	60.4		26.3		32.0		118.7
Developing (2)	20.9		8.2		12.2		41.3
Other Developed (3)	3.7		4.0		3.1		10.8
Total	$	244.7	$	147.7	$	116.9	$	509.3

	Nine months ended September 30, 2020
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
U.S. and Canada	$	474.6	$	312.3	$	191.4	$	978.3
Developed Europe (1)	177.8		74.9		85.6		338.3
Developing (2)	59.9		23.2		45.5		128.6
Other Developed (3)	10.2		11.3		10.7		32.2
Total	$	722.5	$	421.7	$	333.2	$	1,477.4

	Three months ended September 30, 2019
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
U.S. and Canada	$	183.3	$	107.6	$	90.7	$	381.6
Developed Europe (1)	52.0		28.1		32.1		112.2
Developing (2)	23.6		10.5		20.3		54.4
Other Developed (3)	3.7		3.4		4.5		11.6
Total	$	262.6	$	149.6	$	147.6	$	559.8

	Nine months ended September 30, 2019
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
U.S. and Canada	$	549.8	$	314.6	$	248.0	$	1,112.4
Developed Europe (1)	150.4		82.9		97.4		330.7
Developing (2)	68.9		30.1		63.2		162.2
Other Developed (3)	9.0		10.1		12.9		32.0
Total	$	778.1	$	437.7	$	421.5	$	1,637.3
(1) Developed Europe includes Western Europe and Eastern Europe included in European Union.
(2) Developing includes China, Eastern Europe not included in European Union, Latin America, Middle East and Southeast Asia.
(3) Other Developed includes Australia and Japan.

9

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

Vertical net sales information was as follows:

	Three months ended September 30, 2020
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	148.4	$	29.4	$	47.4	$	225.2
Commercial & Residential	28.5		83.3		45.2		157.0
Energy	21.3		15.5		22.7		59.5
Infrastructure	46.5		19.5		1.6		67.6
Total	$	244.7	$	147.7	$	116.9	$	509.3

	Nine months ended September 30, 2020
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	438.5	$	81.3	$	129.6	$	649.4
Commercial & Residential	83.9		237.5		117.8		439.2
Energy	66.6		45.9		81.4		193.9
Infrastructure	133.5		57.0		4.4		194.9
Total	$	722.5	$	421.7	$	333.2	$	1,477.4

	Three months ended September 30, 2019
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	157.8	$	30.1	$	60.5	$	248.4
Commercial & Residential	29.4		87.2		47.3		163.9
Energy	26.5		13.6		37.1		77.2
Infrastructure	48.9		18.7		2.7		70.3
Total	$	262.6	$	149.6	$	147.6	$	559.8

	Nine months ended September 30, 2019
In millions	Enclosures		Electrical & Fastening Solutions		Thermal Management		Total
Industrial	$	467.7	$	86.7	$	173.9	$	728.3
Commercial & Residential	78.7		255.0		131.7		465.4
Energy	78.6		41.8		109.1		229.5
Infrastructure	153.1		54.2		6.8		214.1
Total	$	778.1	$	437.7	$	421.5	$	1,637.3

Contract balances

Contract assets and liabilities consisted of the following:

In millions	September 30, 2020		December 31, 2019		$ Change		% Change
Contract assets	$	42.8	$	69.4	$	(26.6)	(38.3)	%
Contract liabilities	11.7		13.7		(2.0)		(14.6)	%
Net contract assets	$	31.1	$	55.7	$	(24.6)	(44.2)	%

10

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

The $24.6 million decrease in net contract assets from December 31, 2019 to September 30, 2020 was primarily the result of timing of milestone payments. The majority of our contract liabilities at December 31, 2019 were recognized in revenue during the nine months ended September 30, 2020. There were no material impairment losses recognized on our contract assets for the three or nine months ended September 30, 2020.

Remaining performance obligations

We have elected the practical expedient to disclose only the value of remaining performance obligations for contracts with an original expected length of one year or more. On September 30, 2020, we had $82.7 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.

3.Restructuring

During the nine months ended September 30, 2020 and the year ended December 31, 2019, we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. Specifically in the first nine months of 2020, certain initiatives were executed in response to the decrease in expected demand attributed to the effect of the COVID-19 pandemic and recent significant volatility in oil and gas prices leading to a potential sustained downturn in the energy industry. Restructuring initiatives during the nine months ended September 30, 2020 included the reduction in hourly and salaried headcount of approximately 300 employees.

Restructuring related costs included in Selling, general and administrative expense in the Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) included costs for severance and other restructuring costs as follows: 

	Three months ended				Nine months ended
In millions	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Severance and related costs	$	3.5	$	10.9	$	9.7	$	14.4
Other	0.8		0.3		1.9		1.5
Total restructuring costs	$	4.3	$	11.2	$	11.6	$	15.9

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, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Enclosures	$	0.9	$	1.5	$	5.1	$	1.6
Electrical & Fastening Solutions	0.3		0.2		0.4		1.2
Thermal Management	1.7		2.8		4.3		5.6
Other	1.4		6.7		1.8		7.5
Total	$	4.3	$	11.2	$	11.6	$	15.9

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, 2020:

In millions
Beginning balance	$	9.5
Costs incurred	9.7
Cash payments and other	(11.6)
Ending balance	$	7.6

11

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

4.Earnings (Loss) Per Share

Basic and diluted earnings (loss) per share were calculated as follows:

	Three months ended				Nine months ended
In millions, except per-share data	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net income (loss)	$	(138.7)	$	59.9	$	(94.3)	$	177.2
Weighted average ordinary shares outstanding
Basic	170.0		169.1		169.9		172.3
Dilutive impact of stock options, restricted stock units and performance share units	—		1.2		—		1.5
Diluted	170.0		170.3		169.9		173.8
Earnings (loss) per ordinary share
Basic earnings (loss) per ordinary share	$	(0.82)	$	0.35	$	(0.56)	$	1.03
Diluted earnings (loss) per ordinary share	$	(0.82)	$	0.35	$	(0.56)	$	1.02
Anti-dilutive stock options excluded from the calculation of diluted earnings (loss) per share	4.6		2.6		4.4		2.1

As a result of the Company’s net loss during the three and nine month periods ended September 30, 2020, 0.5 million and 0.7 million of outstanding stock options, restricted stock units and performance share units were not included in the computation of diluted earnings (loss) per share because the effect would have been anti-dilutive.

5.Acquisitions

On August 30, 2019, we completed the acquisition of Eldon Holding AB ("Eldon") for $127.8 million, net of cash acquired. Eldon, now part of our Enclosures segment, is an innovative European based manufacturer of enclosures that protect sensitive electrical, electronic and data and telecommunications components.

The excess purchase price over tangible net assets and identified intangible assets acquired has been allocated to goodwill in the amount of $51.2 million, none of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $46.7 million of definite-lived customer relationships with an estimated useful life of 17 years.

On February 10, 2020, we acquired substantially all of the assets of WBT LLC ("WBT") for $29.9 million in cash. The U.S. based WBT business manufactures high-quality cable tray systems that will be marketed as part of the nVent CADDY product line within our Electrical & Fastening Solutions segment and nVent HOFFMAN product line within our Enclosures segment.

The excess purchase price over tangible net assets and identified intangible assets acquired has been preliminarily allocated to goodwill in the amount of $13.7 million, substantially all of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $11.3 million of definite-lived customer relationships with an estimated useful life of 12 years.

The pro forma impact of these acquisitions is not material.

12

nVent Electric plc

Notes to condensed consolidated financial statements (unaudited)

6.Goodwill and Other Identifiable Intangible Assets

As a result of the adverse market and economic conditions attributed to the COVID-19 pandemic, combined with significant volatility in oil and gas prices leading to a potential sustained downturn in the energy industry, we concluded a triggering event occurred during the third quarter of 2020 for our Thermal Management reporting unit requiring an impairment test as of September 30, 2020. In order to perform the goodwill impairment test for the Thermal Management reporting unit, including consideration of market-based inputs such as a market capitalization reconciliation, we determined it was appropriate to measure the fair value of all of our reporting units as of September 30, 2020.

The fair value of the reporting units was determined using a discounted cash flow and market approach. Determining the fair value of the reporting units required the use of significant judgment, including assumptions about future revenues and expenses, capital expenditures and changes in working capital and discount rates, which are based on our annual operating plan and long-term business plan. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, including the impacts from the COVID-19 pandemic and growth expectations for the industries and end markets in which the reporting unit participates. Inputs used to estimate these fair values included significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy defined by the accounting guidance.

As a result of this analysis, during the three months ended September 30, 2020, we recognized a pre-tax, non-cash goodwill impairment expense of $212.3 million related to the Thermal Management reporting unit. Subsequent to the impairment charge recorded in the quarter, the remaining goodwill for the Thermal Management reporting unit was $712.5 million. The impairment resulted in a $21.6 million income tax benefit associated with the proportionate share of tax deductible goodwill. The impairment expense is included in Impairment of goodwill and trade names on the Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).

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

In millions	December 31, 2019		Acquisitions/ divestitures		Impairment		Foreign currency translation/other		September 30, 2020
Enclosures	$	315.4	$	6.4	$	—	$	4.4	$	326.2
Electrical & Fastening Solutions	1,038.2		13.8		—		—		$	1,052.0
Thermal Management	925.5		—		(212.3)		(0.7)		$	712.5
Total goodwill	$	2,279.1	$	20.2	$	(212.3)	$	3.7	$	2,090.7

Identifiable intangible assets consisted of the following:

	September 30, 2020					December 31, 2019
In millions	Cost		Accumulated amortization		Net	Cost	Accumulated amortization	Net
Definite-life intangibles
Customer relationships	$	1,209.8	$	(