Financial Statements of Parent Company Guarantor (Tables)

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Text Block [Abstract]

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, 2016

In millions	Parent Company Guarantor			Subsidiary Guarantor			Subsidiary Issuer			Non-guarantor Subsidiaries			Eliminations			Consolidated Total
Net sales	$	—		$	—		$	—		$	4,890.0		$	—		$	4,890.0
Cost of goods sold	—			—			—			3,095.9			—			3,095.9
Gross profit	—			—			—			1,794.1			—			1,794.1
Selling, general and administrative	15.8			—			1.2			962.3			—			979.3
Research and development	—			—			—			114.1			—			114.1
Operating (loss) income	(15.8		)	—			(1.2		)	717.7			—			700.7
Loss (earnings) from continuing operations of investment in subsidiaries	(466.0		)	(466.0		)	(578.1		)	—			1,510.1			—
Other (income) expense:
Loss on sale of businesses, net	—			—			—			3.9			—			3.9
Equity income of unconsolidated subsidiaries	—			—			—			(4.3		)	—			(4.3		)
Interest income	—			—			(70.3		)	(54.5		)	116.5			(8.3		)
Interest expense	—			—			181.2			83.7			(116.5		)	148.4
Income (loss) from continuing operations before income taxes	450.2			466.0			466.0			688.9			(1,510.1		)	561.0
Provision (benefit) for income taxes	(1.4		)	—			—			110.8			—			109.4
Net income (loss) from continuing operations	451.6			466.0			466.0			578.1			(1,510.1		)	451.6
Income from discontinued operations, net of tax	—			—			—			70.0			—			70.0
Gain from sale of discontinued operations, net of tax	—			—			—			0.6			—			0.6
Earnings (loss) from discontinued operations of investment in subsidiaries	70.6			70.6			70.6			—			(211.8		)	—
Net income (loss)	$	522.2		$	536.6		$	536.6		$	648.7		$	(1,721.9	)	$	522.2
Comprehensive income (loss), net of tax
Net income (loss)	$	522.2		$	536.6		$	536.6		$	648.7		$	(1,721.9	)	$	522.2
Changes in cumulative translation adjustment	(83.0		)	(83.0		)	(83.0		)	(83.0		)	249.0			(83.0		)
Changes in market value of derivative financial instruments, net of tax	(8.3		)	(8.3		)	(8.3		)	(8.3		)	24.9			(8.3		)
Comprehensive income (loss)	$	430.9		$	445.3		$	445.3		$	557.4		$	(1,448.0	)	$	430.9

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	$	—		$	—		$	—		$	4,616.4		$	—		$	4,616.4
Cost of goods sold	—			—			—			3,017.6			—			3,017.6
Gross profit	—			—			—			1,598.8			—			1,598.8
Selling, general and administrative	33.7			2.2			5.3			842.8			—			884.0
Research and development	—			—			—			98.7			—			98.7
Operating (loss) income	(33.7		)	(2.2		)	(5.3		)	657.3			—			616.1
Loss (earnings) from continuing operations of investment in subsidiaries	(436.1		)	(439.7		)	(475.1		)	—			1,350.9			—
Other (income) expense:
Loss on sale of businesses, net	—			—			—			3.2			—			3.2
Equity income of unconsolidated subsidiaries	—			—			—			(1.5		)	—			(1.5		)
Interest income	—			—			(80.6		)	(33.8		)	109.7			(4.7		)
Interest expense	—			1.4			126.3			88.6			(109.7		)	106.6
Income (loss) from continuing operations before income taxes	402.4			436.1			424.1			600.8			(1,350.9		)	512.5
Provision for income taxes	5.3			—			—			110.1			—			115.4
Net income (loss) from continuing operations	397.1			436.1			424.1			490.7			(1,350.9		)	397.1
Loss from discontinued operations, net of tax	—			—			—			(466.8		)	—			(466.8		)
Loss from sale of discontinued operations, net of tax	—			—			—			(6.7		)	—			(6.7		)
Earnings (loss) from discontinued operations of investment in subsidiaries	(473.5		)	(473.5		)	(473.5		)	—			1,420.5			—
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, net of tax	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	$	—		$	—		$	—		$	4,666.8		$	—		$	4,666.8
Cost of goods sold	—			—			—			3,046.3			—			3,046.3
Gross profit	—			—			—			1,620.5			—			1,620.5
Selling, general and administrative	25.3			2.6			7.7			950.0			—			985.6
Research and development	—			—			—			96.4			—			96.4
Operating (loss) income	(25.3		)	(2.6		)	(7.7		)	574.1			—			538.5
Loss (earnings) from continuing operations of investment in subsidiaries	(365.1		)	(369.3		)	(360.7		)	—			1,095.1			—
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		)	(38.8		)	128.8			(2.3		)
Interest expense	0.7			2.1			95.6			101.3			(128.8		)	70.9
Income (loss) from continuing operations before income taxes	339.1			364.6			349.7			512.6			(1,095.1		)	470.9
Provision (benefit) for income taxes	(17.5		)	(0.5		)	(2.4		)	134.7			—			114.3
Net income (loss) from continuing operations	356.6			365.1			352.1			377.9			(1,095.1		)	356.6
Income from discontinued operations, net of tax	—			—			—			244.0			—			244.0
Loss from sale / impairment of discontinued operations, net of tax	—			—			—			(385.7		)	—			(385.7		)
Earnings (loss) from discontinued operations of investment in subsidiaries	(141.7		)	(141.7		)	(141.7		)	—			425.1			—
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, net of tax	(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	)

Condensed Consolidating Balance Sheet

Pentair plc and Subsidiaries

Condensed Consolidating Balance Sheet

December 31, 2016

In millions	Parent Company Guarantor		Subsidiary Guarantor		Subsidiary Issuer		Non-guarantor Subsidiaries		Eliminations			Consolidated Total
Assets
Current assets
Cash and cash equivalents	$	—	$	—	$	—	$	238.5	$	—		$	238.5
Accounts and notes receivable, net	0.1		—		—		763.9		—			764.0
Inventories	—		—		—		524.2		—			524.2
Other current assets	1.2		4.1		1.1		237.8		9.2			253.4
Current assets held for sale	—		—		—		891.9		—			891.9
Total current assets	1.3		4.1		1.1		2,656.3		9.2			2,672.0
Property, plant and equipment, net	—		—		—		538.6		—			538.6
Other assets
Investments in subsidiaries	4,509.5		4,471.4		9,295.5		—		(18,276.4		)	—
Goodwill	—		—		—		4,217.4		—			4,217.4
Intangibles, net	—		—		—		1,631.8		—			1,631.8
Other non-current assets	2.2		35.2		717.8		1,568.9		(2,142.0		)	182.1
Non-current assets held for sale	—		—		—		2,292.9		—			2,292.9
Total other assets	4,511.7		4,506.6		10,013.3		9,711.0		(20,418.4		)	8,324.2
Total assets	$	4,513.0	$	4,510.7	$	10,014.4	$	12,905.9	$	(20,409.2	)	$	11,534.8
Liabilities and Equity
Current liabilities
Current maturities of long-term debt and short-term borrowings	$	—	$	—	$	—	$	0.8	$	—		$	0.8
Accounts payable	0.7		—		0.1		435.8		—			436.6
Employee compensation and benefits	0.8		—		—		165.3		—			166.1
Other current liabilities	95.2		1.2		26.7		379.2		9.2			511.5
Current liabilities held for sale	—		—		—		356.2		—			356.2
Total current liabilities	96.7		1.2		26.8		1,337.3		9.2			1,471.2
Other liabilities
Long-term debt	148.1		—		5,515.9		756.4		(2,142.0		)	4,278.4
Pension and other post-retirement compensation and benefits	—		—		—		253.4		—			253.4
Deferred tax liabilities	—		—		—		609.5		—			609.5
Other non-current liabilities	13.8		—		—		148.2		—			162.0
Non-current liabilities held for sale	—		—		—		505.9		—			505.9
Total liabilities	258.6		1.2		5,542.7		3,610.7		(2,132.8		)	7,280.4
Equity	4,254.4		4,509.5		4,471.7		9,295.2		(18,276.4		)	4,254.4
Total liabilities and equity	$	4,513.0	$	4,510.7	$	10,014.4	$	12,905.9	$	(20,409.2	)	$	11,534.8

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		—		—		773.1			—			773.2
Inventories	—		—		—		564.7			—			564.7
Other current assets	25.2		12.8		—		219.9			(37.9		)	220.0
Current assets held for sale	—		—		—		1,093.4			—			1,093.4
Total current assets	25.3		12.8		0.1		2,777.3			(37.9		)	2,777.6
Property, plant and equipment, net	—		—		—		539.8			—			539.8
Other assets
Investments in subsidiaries	4,495.6		4,486.1		10,151.1		—			(19,132.8		)	—
Goodwill	—		—		—		4,259.0			—			4,259.0
Intangibles, net	—		—		—		1,747.4			—			1,747.4
Other non-current assets	12.6		—		190.1		145.6			(187.2		)	161.1
Non-current assets held for sale	—		—		—		2,348.6			—			2,348.6
Total other assets	4,508.2		4,486.1		10,341.2		8,500.6			(19,320.0		)	8,516.1
Total assets	$	4,533.5	$	4,498.9	$	10,341.3	$	11,817.7		$	(19,357.9	)	$	11,833.5
Liabilities and Equity
Current liabilities
Accounts payable	$	0.6	$	—	$	0.3	$	402.9		$	—		$	403.8
Employee compensation and benefits	0.4		0.1		—		162.1			—			162.6
Other current liabilities	61.7		1.5		27.1		434.7			(37.9		)	487.1
Current liabilities held for sale	—		—		—		433.0			—			433.0
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		4,535.5		(117.5		)	(187.2		)	4,685.8
Pension and other post-retirement compensation and benefits	—		—		—		244.6			—			244.6
Deferred tax liabilities	—		—		3.1		667.1			—			670.2
Other non-current liabilities	8.7		—		—		183.7			—			192.4
Non-current liabilities held for sale	—		—		—		545.2			—			545.2
Total liabilities	524.7		3.3		4,566.0		2,955.8			(225.1		)	7,824.7
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	$	10,341.3	$	11,817.7		$	(19,357.9	)	$	11,833.5

Condensed Consolidating Statement of Cash Flows

Pentair plc and Subsidiaries

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2016

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	$	522.7		$	463.1		$	469.5		$	916.2		$	(1,510.1	)	$	861.4
Investing activities
Capital expenditures	—			—			—			(117.8		)	—			(117.8		)
Proceeds from sale of property and equipment	—			—			—			24.7			—			24.7
Acquisitions, net of cash acquired	—			—			—			(25.0		)	—			(25.0		)
Net intercompany loan activity	—			—			667.3			(191.0		)	(476.3		)	—
Other	—			—			—			(5.2		)	—			(5.2		)
Net cash provided by (used for) investing activities of continuing operations	—			—			667.3			(314.3		)	(476.3		)	(123.3		)
Net cash provided by (used for) investing activities of discontinued operations	—			—			—			1.5			—			1.5
Net cash provided by (used for) investing activities	—			—			667.3			(312.8		)	(476.3		)	(121.8		)
Financing activities
Net receipts of short-term borrowings	—			—			—			0.8			—			0.8
Net receipts (repayments) of commercial paper and revolving long-term debt	—			—			(385.8		)	0.5			—			(385.3		)
Repayment of long-term debt	—			—			—			(0.7		)	—			(0.7		)
Net change in advances to subsidiaries	(299.8		)	(463.1		)	(778.9		)	(444.6		)	1,986.4			—
Excess tax benefits from share-based compensation	—			—			—			8.0			—			8.0
Shares issued to employees, net of shares withheld	20.7			—			—			—			—			20.7
Dividends paid	(243.6		)	—			—			—			—			(243.6		)
Net cash provided by (used for) financing activities	(522.7		)	(463.1		)	(1,164.7		)	(436.0		)	1,986.4			(600.1		)
Effect of exchange rate changes on cash and cash equivalents	—			—			27.8			(55.1		)	—			(27.3		)
Change in cash and cash equivalents	—			—			(0.1		)	112.3			—			112.2
Cash and cash equivalents, beginning of year	—			—			0.1			126.2			—			126.3
Cash and cash equivalents, end of year	$	—		$	—		$	—		$	238.5		$	—		$	238.5

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	—			—			—			(91.3		)	—			(91.3		)
Proceeds from sale of property and equipment	—			—			—			4.6			—			4.6
Acquisitions, net of cash acquired	—			—			—			(1,913.9		)	—			(1,913.9		)
Net intercompany loan activity	—			—			891.0			(295.0		)	(596.0		)	—
Other	—			—			—			(3.0		)	—			(3.0		)
Net cash provided by (used for) investing activities of continuing operations	—			—			891.0			(2,298.6		)	(596.0		)	(2,003.6		)
Net cash provided by (used for) investing activities from discontinued operations	—			—			—			38.1			—			38.1
Net cash provided by (used for) investing activities	—			—			891.0			(2,260.5		)	(596.0		)	(1,965.5		)
Financing activities
Net repayments on 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	—			—			—			(83.7		)	—			(83.7		)
Proceeds from sale of property and equipment	—			—			—			1.9			—			1.9
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 of continuing operations	—			—			37.8			18.3			(150.0		)	(93.9		)
Net cash provided by (used for) investing activities of discontinued operations	—			—			—			(34.4		)	—			(34.4		)
Net cash provided by (used for) investing activities	—			—			37.8			(16.1		)	(150.0		)	(128.3		)
Financing activities
Net receipts of 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		)
Purchase of 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