Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

At Pentair, our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. We define our reportable segments on the basis of the way in which internally reported financial information is regularly reviewed by the CODM to analyze financial performance, make decisions and allocate resources. Based on this, we classify our operations into the following reportable segments:

•Flow — The focus of this segment is to deliver water where it is needed, when it is needed, more efficiently and to transform waste into value. This segment designs, manufactures and sells a variety of fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles, while serving the global residential, commercial and industrial markets. These products and systems are used in a range of applications, including fluid delivery, ion exchange, desalination, food and beverage, separation technologies for the oil and gas industry, residential and municipal wells, water treatment, wastewater solids handling, pressure boosting, circulation and transfer, fire suppression, flood control, agricultural irrigation and crop spray.

•Water Solutions — The focus of this segment is to provide great tasting, higher-quality water and ice while helping people use water more productively. This segment designs, manufactures and sells commercial and residential water treatment products and systems including pressure tanks, control valves, activated carbon products, commercial ice machines, conventional filtration products, and point-of-entry and point-of-use water treatment systems. These water treatment products and systems are used in residential whole home water filtration, drinking water filtration and water softening solutions in addition to commercial total water management and filtration in foodservice operations. In addition, our water solutions business also provides installation and preventative services for water management solutions for commercial operators.

•Pool — The focus of this segment is to provide innovative, energy-efficient pool solutions to help people more sustainably enjoy water. This segment designs, manufactures and sells a complete line of energy-efficient residential and commercial pool equipment and accessories including pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment and pool accessories. Applications for our pool products include residential and commercial pool maintenance, pool repair, renovation, service, construction and aquaculture solutions.

Our CODM evaluates our reportable segments’ performance based on net sales and reportable segment income and uses certain ratios, particularly return on sales, to measure their performance. Additionally, these measures are used to evaluate reinvestment of profits into our reportable segments or into other parts of the Company, such as for acquisitions, debt repayments, dividend payments or share repurchases. 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. Reportable segment income represents operating income of each reportable segment inclusive of equity income of unconsolidated subsidiaries and exclusive of intangible amortization, certain acquisition related expenses, 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 reportable segment under accounting standards codification (“ASC”) 280.

Financial information by reportable segment as well as a reconciliation of reportable segment income to consolidated income from continuing operations before income taxes is as follows:

	2024		2023		2022		2024		2023		2022		2024		2023		2022
In millions	Identifiable assets (1)						Capital expenditures						Depreciation
Flow	$	1,590.7	$	1,709.7	$	1,722.4	$	20.1	$	19.6	$	24.0	$	21.4	$	21.1	$	19.5
Water Solutions	2,613.5		2,695.2		2,786.4		22.3		23.0		24.7		17.1		18.1		18.4
Pool	1,801.3		1,679.8		1,710.3		17.1		17.3		28.8		13.1		11.4		8.9
Reportable segment total	6,005.5		6,084.7		6,219.1		59.5		59.9		77.5		51.6		50.6		46.8
Corporate and other	441.0		478.6		228.4		14.9		16.1		7.7		8.7		8.9		7.3
Consolidated	$	6,446.5	$	6,563.3	$	6,447.5	$	74.4	$	76.0	$	85.2	$	60.3	$	59.5	$	54.1

(1) All cash and cash equivalents are included in “Corporate and other.”

2024
In millions	Flow		Water Solutions		Pool		Total
Net sales	$	1,514.0	$	1,131.0	$	1,436.1	$	4,081.1
Reconciliation of consolidated net sales
Corporate and other							1.7
Total consolidated net sales (1)							$	4,082.8
Cost of goods sold (2)(4)	(965.1)		(706.8)		(799.3)
Operating expenses (2)(3)(4)	(230.8)		(169.1)		(160.3)
Reportable segment income	$	318.1	$	255.1	$	476.5	$	1,049.7
Corporate and other							(90.5)
Restructuring and other							(37.0)
Transformation costs							(52.1)
Pension and other post-retirement mark-to-market gain							5.3
Asset impairment and write-offs							(17.6)
Legal accrual adjustments and settlements							7.5
Intangible amortization							(54.3)
Interest expense, net							(88.6)
Other expense							(3.5)
Income from continuing operations before income taxes							$	718.9

(1) One customer in the Pool business represented approximately 15% of our consolidated net sales in 2024.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM, which includes certain corporate overhead allocations directly attributable to each of the segments.

(3) Operating expenses include selling, general, administrative, research and development costs which primarily consist of non-manufacturing employee compensation, non-manufacturing overhead and professional service costs as well as depreciation expense.

(4) These costs exclude certain expenses reported in the Consolidated Statements of Operations and Comprehensive Income, including costs that are reflected in “Corporate and other” and expenses excluded from reportable segment income as defined above.

2023
In millions	Flow		Water Solutions		Pool		Total
Net sales	$	1,582.1	$	1,177.2	$	1,343.6	$	4,102.9
Reconciliation of consolidated net sales
Corporate and other							1.6
Total consolidated net sales (1)							$	4,104.5
Cost of goods sold (2)(4)	(1,054.7)		(752.5)		(775.2)
Operating expenses (2)(3)(4)	(245.1)		(177.1)		(151.4)
Reportable segment income	$	282.3	$	247.6	$	417.0	$	946.9
Corporate and other							(91.8)
Restructuring and other							(3.4)
Transformation costs							(44.3)
Pension and other post-retirement mark-to-market loss							(6.1)
Asset impairment and write-offs							(7.9)
Legal accrual adjustments and settlements							(2.2)
Intangible amortization							(55.3)
Interest expense, net							(118.3)
Other income							1.3
Income from continuing operations before income taxes							$	618.9

(1) One customer in the Pool business represented approximately 15% of our consolidated net sales in 2023.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM, which includes certain corporate overhead allocations directly attributable to each of the segments.

(3) Operating expenses include selling, general, administrative, research and development costs which primarily consist of non-manufacturing employee compensation, non-manufacturing overhead and professional service costs as well as depreciation expense.

(4) These costs exclude certain expenses reported in the Consolidated Statements of Operations and Comprehensive Income, including costs that are reflected in “Corporate and other” and expenses excluded from reportable segment income as defined above.

2022
In millions	Flow		Water Solutions		Pool		Total
Net sales	$	1,500.8	$	986.8	$	1,632.7	$	4,120.3
Reconciliation of consolidated net sales
Corporate and other							1.5
Total consolidated net sales (1)							$	4,121.8
Cost of goods sold (2)(4)	(1,041.5)		(672.5)		(1,009.8)
Operating expenses (2)(3)(4)	(217.0)		(165.3)		(160.8)
Reportable segment income	$	242.3	$	149.0	$	462.1	$	853.4
Corporate and other							(85.7)
Restructuring and other							(32.4)
Transformation costs							(27.2)
Inventory step-up							(5.8)
Pension and other post-retirement mark-to-market gain							17.5
Asset impairment and write-offs							(25.6)
Russia business exit impact							(4.7)
Deal-related costs and expenses							(22.2)
Legal accrual adjustments and settlements							(0.2)
Intangible amortization							(52.5)
Interest expense, net							(61.8)
Other expense							(2.2)
Income from continuing operations before income taxes							$	550.6

(1) One customer in the Pool business represented approximately 20% of our consolidated net sales in 2022.

(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM, which includes certain corporate overhead allocations directly attributable to each of the segments.

(3) Operating expenses include selling, general, administrative, research and development costs which primarily consist of non-manufacturing employee compensation, non-manufacturing overhead and professional service costs as well as depreciation expense.

(4) These costs exclude certain expenses reported in the Consolidated Statements of Operations and Comprehensive Income, including costs that are reflected in “Corporate and other” and expenses excluded from reportable segment income as defined above.