XML 63 R46.htm IDEA: XBRL DOCUMENT v3.3.1.900
Financial Statements of Parent Company Guarantor (Tables)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Pentair plc and Subsidiaries
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Year Ended December 31, 2015
 
In millions
Parent
Company
Guarantor
Subsidiary
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Net sales
$
—

$
—

$
—

$
6,449.0

$
—

$
6,449.0

Cost of goods sold
—

—

—

4,263.2

—

4,263.2

Gross profit
—

—

—

2,185.8

—

2,185.8

Selling, general and administrative
33.7

2.2

5.3

1,293.1



1,334.3

Research and development
—

—

—

119.6

—

119.6

Impairment of goodwill and trade names
—

—

—

554.7

—

554.7

Operating (loss) income
(33.7
)
(2.2
)
(5.3
)
218.4

—

177.2

Loss (earnings) from continuing operations of investment in subsidiaries
26.0

22.4

(13.0
)
—

(35.4
)
—

Other (income) expense:

 




Loss on sale of businesses, net
—

—

—

3.2

—

3.2

Equity income of unconsolidated subsidiaries
—

—

—

(2.8
)
—

(2.8
)
Interest income
—

—

(80.6
)
(35.1
)
109.7

(6.0
)
Interest expense
—

1.4

126.3

90.7

(109.7
)
108.7

Income (loss) from continuing operations before income taxes
(59.7
)
(26.0
)
(38.0
)
162.4

35.4

74.1

Provision for income taxes
5.3

—

—

133.8

—

139.1

Net income (loss) from continuing operations
(65.0
)
(26.0
)
(38.0
)
28.6

35.4

(65.0
)
Loss from discontinued operations, net of tax
—

—

—

(4.7
)
—

(4.7
)
Loss from sale / impairment of discontinued operations, net of tax
—

—

—

(6.7
)
—

(6.7
)
Earnings (loss) from discontinued operations of investment in subsidiaries
(11.4
)
(11.4
)
(11.4
)
—

34.2

—

Net income (loss)
$
(76.4
)
$
(37.4
)
$
(49.4
)
$
17.2

$
69.6

$
(76.4
)
Comprehensive income (loss), net of tax
 
 
 
 
 
 
Net income (loss)
$
(76.4
)
$
(37.4
)
$
(49.4
)
$
17.2

$
69.6

$
(76.4
)
Changes in cumulative translation adjustment
(264.9
)
(264.9
)
(264.9
)
(264.9
)
794.7

(264.9
)
Changes in market value of derivative financial instruments
0.2

0.2

0.2

0.2

(0.6
)
0.2

Comprehensive income (loss)
$
(341.1
)
$
(302.1
)
$
(314.1
)
$
(247.5
)
$
863.7

$
(341.1
)
Pentair plc and Subsidiaries
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Year Ended December 31, 2014

In millions
Parent
Company
Guarantor
Subsidiary
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Net sales
$
—

$
—

$
—

$
7,039.0

$
—

$
7,039.0

Cost of goods sold
—

—

—

4,576.0

—

4,576.0

Gross profit
—

—

—

2,463.0

—

2,463.0

Selling, general and administrative
25.3

2.6

7.7

1,458.2

—

1,493.8

Research and development
—

—

—

117.3

—

117.3

Operating (loss) income
(25.3
)
(2.6
)
(7.7
)
887.5

—

851.9

Loss (earnings) from continuing operations of investment in subsidiaries
(615.5
)
(619.7
)
(611.1
)
—

1,846.3

—

Other (income) expense:
 
 
 
 
 
 
Loss on sale of businesses, net
—

—

—

0.2

—

0.2

Equity income of unconsolidated subsidiaries
—

—

—

(1.2
)
—

(1.2
)
Interest income
—

—

(92.3
)
(40.2
)
128.8

(3.7
)
Interest expense
0.7

2.1

95.6

102.7

(128.8
)
72.3

Income (loss) from continuing operations before income taxes
589.5

615.0

600.1

826.0

(1,846.3
)
784.3

Provision for income taxes
(17.5
)
(0.5
)
(2.4
)
197.7

—

177.3

Net income (loss) from continuing operations
607.0

615.5

602.5

628.3

(1,846.3
)
607.0

Income from discontinued operations, net of tax
—

—

—

(6.4
)
—

(6.4
)
Loss from sale of discontinued operations, net of tax
—

—

—

(385.7
)
—

(385.7
)
Earnings (loss) from discontinued operations of investment in subsidiaries
(392.1
)
(392.1
)
(392.1
)
—

1,176.3

—

Net income (loss)
$
214.9

$
223.4

$
210.4

$
236.2

$
(670.0
)
$
214.9

Comprehensive income (loss), net of tax
 
 
 
 
 
 
Net income (loss)
$
214.9

$
223.4

$
210.4

$
236.2

$
(670.0
)
$
214.9

Changes in cumulative translation adjustment
(336.3
)
(336.3
)
(336.3
)
(336.3
)
1,008.9

(336.3
)
Changes in market value of derivative financial instruments
(0.4
)
(0.4
)
(0.4
)
(0.4
)
1.2

(0.4
)
Comprehensive income (loss)
$
(121.8
)
$
(113.3
)
$
(126.3
)
$
(100.5
)
$
340.1

$
(121.8
)
Pentair plc and Subsidiaries
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Year Ended December 31, 2013

In millions
Parent
Company
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Net sales
$
—

$
—

$
6,999.7

$
—

$
6,999.7

Cost of goods sold
—

—

4,629.6

—

4,629.6

Gross profit
—

—

2,370.1

—

2,370.1

Selling, general and administrative
21.0

13.3

1,459.4

—

1,493.7

Research and development
—

—

122.8

—

122.8

Impairment of trade names
—

—

11.0

—

11.0

Operating (loss) income
(21.0
)
(13.3
)
776.9

—

742.6

Loss (earnings) from continuing operations of investment in subsidiaries
(539.0
)
(508.6
)
—

1,047.6

—

Other (income) expense:
 
 
 
 
 
Gain on sale of businesses, net
 
 
(20.8
)
—

(20.8
)
Equity income of unconsolidated subsidiaries
—

—

(2.0
)
—

(2.0
)
Interest income
—

(99.2
)
(53.4
)
148.2

(4.4
)
Interest expense
5.6

106.0

111.9

(148.2
)
75.3

Income (loss) from continuing operations before income taxes and noncontrolling interest
512.4

488.5

741.2

(1,047.6
)
694.5

Provision (benefit) for income taxes
0.7

1.4

174.9

—

177.0

Net income (loss) from continuing operations before noncontrolling interest
511.7

487.1

566.3

(1,047.6
)
517.5

Income from discontinued operations, net of tax
—

—

25.9

—

25.9

Loss from sale of discontinued operations, net of tax
—

—

(0.8
)
—

(0.8
)
Earnings (loss) from discontinued operations of investment in subsidiaries
25.1

25.1

—

(50.2
)
—

Net income (loss) before noncontrolling interest
536.8

512.2

591.4

(1,097.8
)
542.6

Noncontrolling interest
—

—

5.8

—

5.8

Net income (loss) attributable to Pentair plc
$
536.8

$
512.2

$
585.6

$
(1,097.8
)
$
536.8

Net income (loss) from continuing operations attributable to Pentair plc
$
511.7

$
487.1

$
560.5

$
(1,047.6
)
$
511.7

Comprehensive income (loss), net of tax
 
 
 
 
 
Net income (loss) before noncontrolling interest
$
536.8

$
512.2

$
591.4

$
(1,097.8
)
$
542.6

Changes in cumulative translation adjustment
(31.3
)
(31.3
)
(29.1
)
62.6

(29.1
)
Amortization of pension and other post-retirement prior service cost
(0.4
)
(0.4
)
(0.4
)
0.8

(0.4
)
Changes in market value of derivative financial instruments
(0.3
)
(0.3
)
(0.3
)
0.6

(0.3
)
Total comprehensive income (loss)
504.8

480.2

561.6

(1,033.8
)
512.8

Less: Comprehensive income (loss) attributable to noncontrolling interest
—

—

8.0

—

8.0

Comprehensive income (loss) attributable to Pentair plc
$
504.8

$
480.2

$
553.6

$
(1,033.8
)
$
504.8

Condensed Consolidating Balance Sheet
Pentair plc and Subsidiaries
Condensed Consolidating Balance Sheet
December 31, 2015
 
In millions
Parent
Company
Guarantor
Subsidiary
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Assets
Current assets
 
 
 
 
 
 
Cash and cash equivalents
$
—

$
—

$
0.1

$
126.2

$
—

$
126.3

Accounts and notes receivable, net
0.1

—

—

1,167.6

—

1,167.7

Inventories
—

—

—

1,174.3

—

1,174.3

Other current assets
25.2

12.8

2.1

310.1

(37.9
)
312.3

Total current assets
25.3

12.8

2.2

2,778.2

(37.9
)
2,780.6

Property, plant and equipment, net
—

—

—

942.8

—

942.8

Other assets

 




Investments in subsidiaries
4,495.6

4,486.1

10,151.1

—

(19,132.8
)
—

Goodwill
—

—

—

5,255.4

—

5,255.4

Intangibles, net
—

—

—

2,490.1

—

2,490.1

Other non-current assets
12.6

—

208.5

354.2

(187.2
)
388.1

Total other assets
4,508.2

4,486.1

10,359.6

8,099.7

(19,320.0
)
8,133.6

Total assets
$
4,533.5

$
4,498.9

$
10,361.8

$
11,820.7

$
(19,357.9
)
$
11,857.0

Liabilities and Equity
Current liabilities
 
 
 
 
 
 
Current maturities of long-term debt and short-term borrowings
$
—

$
—

$
—

$
0.7

$
—

$
0.7

Accounts payable
0.6

—

0.3

577.9



578.8

Employee compensation and benefits
0.4

0.1

—

262.4

—

262.9

Other current liabilities
61.7

1.5

27.1

591.7

(37.9
)
644.1

Total current liabilities
62.7

1.6

27.4

1,432.7

(37.9
)
1,486.5

Other liabilities
 
 
 
 
 
 
Long-term debt
453.3

1.7

4,556.0

(114.5
)
(187.2
)
4,709.3

Pension and other post-retirement compensation and benefits
—

—

—

287.2

—

287.2

Deferred tax liabilities
—

—

3.1

841.1

—

844.2

Other non-current liabilities
8.7

—

—

512.3

—

521.0

Total liabilities
524.7

3.3

4,586.5

2,958.8

(225.1
)
7,848.2

Equity
4,008.8

4,495.6

5,775.3

8,861.9

(19,132.8
)
4,008.8

Total liabilities and equity
$
4,533.5

$
4,498.9

$
10,361.8

$
11,820.7

$
(19,357.9
)
$
11,857.0

Pentair plc and Subsidiaries
Condensed Consolidating Balance Sheet
December 31, 2014

In millions
Parent
Company
Guarantor
Subsidiary
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Assets
Current assets
 
 
 
 
 
 
Cash and cash equivalents
$
—

$
—

$
0.1

$
110.3

$
—

$
110.4

Accounts and notes receivable, net
—

—

—

1,206.8

(0.9
)
1,205.9

Inventories
—

—

—

1,130.4

—

1,130.4

Other current assets
—

17.6

2.0

367.6

(20.4
)
366.8

Current assets held for sale
—

—

—

80.6

—

80.6

Total current assets
—

17.6

2.1

2,895.7

(21.3
)
2,894.1

Property, plant and equipment, net
—

—

—

950.0

—

950.0

Other assets
 
 
 
 
 
 
Investments in subsidiaries
4,733.0

4,893.8

7,612.2

—

(17,239.0
)
—

Goodwill
—

—

—

4,741.9

—

4,741.9

Intangibles, net
—

—

—

1,608.1

—

1,608.1

Other non-current assets
80.2

—

1,381.8

345.0

(1,370.8
)
436.2

Non-current assets held for sale
—

—

—

24.9

—

24.9

Total other assets
4,813.2

4,893.8

8,994.0

6,719.9

(18,609.8
)
6,811.1

Total assets
$
4,813.2

$
4,911.4

$
8,996.1

$
10,565.6

$
(18,631.1
)
$
10,655.2

Liabilities and Equity
Current liabilities
 
 
 
 
 
 
Current maturities of long-term debt and short-term borrowings
$
—

$
—

$
—

$
6.7

$
—

$
6.7

Accounts payable
0.9

—

—

583.1

(0.9
)
583.1

Employee compensation and benefits
0.2

0.6

—

304.7

—

305.5

Other current liabilities
120.6

2.2

10.9

595.8

(20.4
)
709.1

Current liabilities held for sale
—

—

—

35.1

—

35.1

Total current liabilities
121.7

2.8

10.9

1,525.4

(21.3
)
1,639.5

Other liabilities
 
 
 
 
 
 
Long-term debt
11.4

175.6

2,860.6

1,320.6

(1,370.8
)
2,997.4

Pension and other post-retirement compensation and benefits
—

—

—

322.0

—

322.0

Deferred tax liabilities
—

—

2.9

525.4

—

528.3

Other non-current liabilities
16.3

—

—

481.4

—

497.7

Non-current liabilities held for sale
—

—

—

6.5

—

6.5

Total liabilities
149.4

178.4

2,874.4

4,181.3

(1,392.1
)
5,991.4

Equity
4,663.8

4,733.0

6,121.7

6,384.3

(17,239.0
)
4,663.8

Total liabilities and equity
$
4,813.2

$
4,911.4

$
8,996.1

$
10,565.6

$
(18,631.1
)
$
10,655.2

 
Condensed Consolidating Statement of Cash Flows
Pentair plc and Subsidiaries
Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2015
 
In millions
Parent
Company
Guarantor
Subsidiary
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Operating activities
 
 
 
 
 
Net cash provided by (used for) operating activities
$
(43.0
)
$
(48.7
)
$
(5.8
)
$
767.1

$
69.7

$
739.3

Investing activities
 
 
 
 
 
 
Capital expenditures
—

—

—

(134.3
)
—

(134.3
)
Proceeds from sale of property and equipment
—

—

—

27.3

—

27.3

Acquisitions, net of cash acquired
—

—

—

(1,913.9
)
—

(1,913.9
)
Net intercompany loan activity
—

—

891.0

(295.0
)
(596.0
)
—

Other
—

—

—

(3.6
)
—

(3.6
)
Net cash provided by (used for) investing activities of continuing operations
—

—

891.0

(2,319.5
)
(596.0
)
(2,024.5
)
Net cash provided by (used for) investing activities of discontinued operations
—

—

—

59.0

—

59.0

Net cash provided by (used for) investing activities
—

—

891.0

(2,260.5
)
(596.0
)
(1,965.5
)
Financing activities
 
 
 
 
 
 
Net receipts of short-term borrowings
—

—

—

(2.3
)
—

(2.3
)
Net receipts of commercial paper and revolving long-term debt
—

—

346.9

16.6

—

363.5

Proceeds from long-term debt
—

—

1,714.8

—

—

1,714.8

Repayment of long-term debt
—

—

(350.0
)
(6.6
)
—

(356.6
)
Debt issuance costs
—

—

(26.8
)
—

—

(26.8
)
Net change in advances to subsidiaries
471.7

48.7

(2,553.7
)
1,507.0

526.3

—

Excess tax benefits from share-based compensation
—

—

—

6.0

—

6.0

Shares issued to employees, net of shares withheld
3.0

—

—

16.4

—

19.4

Repurchases of ordinary shares
(200.0
)
—

—

—

—

(200.0
)
Dividends paid
(231.7
)
—

—

—

—

(231.7
)
Net cash provided by (used for) financing activities
43.0

48.7

(868.8
)
1,537.1

526.3

1,286.3

Effect of exchange rate changes on cash and cash equivalents
—

—

(16.4
)
(27.8
)
—

(44.2
)
Change in cash and cash equivalents
—

—

—

15.9

—

15.9

Cash and cash equivalents, beginning of year
—

—

0.1

110.3

—

110.4

Cash and cash equivalents, end of year
$
—

$
—

$
0.1

$
126.2

$
—

$
126.3

Pentair plc and Subsidiaries
Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2014

In millions
Parent
Company
Guarantor
Subsidiary
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Operating activities
 
 
 
 
 
 
Net cash provided by (used for) operating activities
$
169.0

$
208.6

$
207.0

$
1,093.8

$
(670.0
)
$
1,008.4

Investing activities
 
 
 
 
 
 
Capital expenditures
—

—

—

(129.6
)
—

(129.6
)
Proceeds from sale of property and equipment
—

—

—

13.1

—

13.1

Proceeds from sale of businesses, net
—

—

—

0.3

—

0.3

Acquisitions, net of cash acquired
—

—

—

(12.3
)
—

(12.3
)
Net intercompany loan activity
—

—

37.8

112.2

(150.0
)
—

Other
—

—

—

0.2

—

0.2

Net cash provided by (used for) investing activities
—

—

37.8

(16.1
)
(150.0
)
(128.3
)
Financing activities
 
 
 
 
 
 
Net repayments on short-term borrowings
—

—

—

0.5

—

0.5

Net receipts of commercial paper and revolving long-term debt
—

—

458.7

9.9

—

468.6

Proceeds from long-term debt
—

—

—

2.2

—

2.2

Repayment of long-term debt
—

—

—

(16.8
)
—

(16.8
)
Debt issuance costs
—

—

(3.1
)
—

—

(3.1
)
Net change in advances to subsidiaries
741.1

(208.6
)
(747.3
)
(605.2
)
820.0

—

Excess tax benefits from share-based compensation
—

—

—

12.6

—

12.6

Shares issued to employees, net of shares withheld
—

—

—

37.0

—

37.0

Repurchases of ordinary shares
(699.2
)
—

—

(450.8
)
—

(1,150.0
)
Dividends paid
(211.4
)
—

—

—

—

(211.4
)
Distributions to noncontrolling interest
—

—

—

(134.7
)
—

(134.7
)
Net cash provided by (used for) financing activities
(169.5
)
(208.6
)
(291.7
)
(1,145.3
)
820.0

(995.1
)
Effect of exchange rate changes on cash and cash equivalents
—

—

—

(30.6
)
—

(30.6
)
Change in cash and cash equivalents
(0.5
)
—

(46.9
)
(98.2
)
—

(145.6
)
Cash and cash equivalents, beginning of year
0.5

—

47.0

208.5

—

256.0

Cash and cash equivalents, end of year
$
—

$
—

$
0.1

$
110.3

$
—

$
110.4

Pentair plc and Subsidiaries
Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2013

In millions
Parent
Company
Guarantor
Subsidiary
Issuer
Non-guarantor
Subsidiaries
Eliminations
Consolidated
Total
Operating activities
 
 
 
 
 
Net cash provided by (used for) operating activities
$
534.2

$
514.0

$
977.5

$
(1,097.8
)
$
927.9

Investing activities
 
 
 
 
 
Capital expenditures
—

—

(170.0
)
—

(170.0
)
Proceeds from sale of property and equipment
—

—

6.0

—

6.0

Acquisitions, net of cash acquired
—

—

(92.4
)
—

(92.4
)
Proceeds from sale of business, net
—

—

43.5

—

43.5

Other
—

—

1.7

—

1.7

Net cash provided by (used for) investing activities
—

—

(211.2
)
—

(211.2
)
Financing activities
 
 
 
 
 
Net receipts (repayments) of commercial paper and revolving long-term debt
—

104.2

—

—

104.2

Proceeds from long-term debt
—

—

0.7

—

0.7

Repayment of long-term debt
—

—

(7.4
)
—

(7.4
)
Debt issuance costs
—

(1.4
)
—

—

(1.4
)
Debt extinguishment costs
—

—

—

—

—

Net change in advances to subsidiaries
(339.5
)
(569.8
)
(188.5
)
1,097.8

—

Excess tax benefits from share-based compensation
—

—

16.8

—

16.8

Shares issued to employees, net of shares withheld
—

—

80.0

—

80.0

Repurchases of ordinary shares
—

—

(715.8
)
—

(715.8
)
Dividends paid
(194.2
)
—

—

—

(194.2
)
Distributions to noncontrolling interest
—

—

(2.0
)
—

(2.0
)
Net cash provided by (used for) financing activities
(533.7
)
(467.0
)
(816.2
)
1,097.8

(719.1
)
Effect of exchange rate changes on cash and cash equivalents
—

—

21.0

—

21.0

Change in cash and cash equivalents
0.5

47.0

(28.9
)
—

18.6

Cash and cash equivalents, beginning of year
—

—

237.4

—

237.4

Cash and cash equivalents, end of year
$
0.5

$
47.0

$
208.5

$
—

$
256.0