Selected Quarterly Data

12 Months Ended

Dec. 31, 2012

19.

Selected Quarterly Data (Unaudited)

2012 and 2011 quarterly financial information:


	2012
In thousands, except per-share data	First		Second		Third		Fourth			Year
Net sales	$	858,177	$	941,525	$	865,512	$	1,750,932		$	4,416,146
Gross profit		280,719		312,128		278,077		398,668			1,269,592
Operating income (loss)		86,474		119,314		55,199		(304,106	)		(43,119	)
Net income (loss) before noncontrolling interest		63,099		74,430		32,595		(274,736	)		(104,612	)
Net income (loss) attributable to Pentair Ltd.		61,759		72,775		31,363		(273,083	)		(107,186	)

Earnings (loss) per common share attributable to Pentair Ltd. ⁽¹⁾
Basic	$	0.63	$	0.73	$	0.31	$	(1.31	)	$	(0.84	)
Diluted		0.62		0.72		0.31		(1.31	)		(0.84	)

	2011
In thousands, except per-share data	First		Second		Third		Fourth			Year
Net sales	$	790,273	$	910,175	$	890,546	$	865,692		$	3,456,686
Gross profit		249,059		287,736		272,062		264,865			1,073,722
Operating income (loss)		85,469		108,714		92,195		(186,175	)		100,203
Net income (loss) before noncontrolling interest		51,602		67,705		51,610		(174,068	)		(3,151	)
Net income (loss) attributable to Pentair Ltd.		50,109		66,280		50,648		(174,487	)		(7,450	)

Earnings (loss) per common share attributable to Pentair Ltd. ⁽¹⁾
Basic	$	0.51	$	0.67	$	0.51	$	(1.77	)	$	(0.08	)
Diluted		0.50		0.66		0.50		(1.77	)		(0.08	)

(1)

Amounts may not total to annual earnings because each quarter and year are calculated separately based on basic and diluted weighted-average common shares outstanding during that period.

Third quarter 2012 includes a decrease in operating income of $52.7 million due to costs and expenses related to the Merger.

Fourth quarter 2012 includes the results of the operations acquired in the Merger. Flow Control’s net sales and net loss from continuing operations for the period from the acquisition date to December 31, 2012 were $886.5 million and $117.0 million, respectively. Fourth quarter 2012 also includes decreases in operating income related to the changes in accounting for pension and post-retirement benefit plans of $146.3 million, inventory step-up and customer backlog related to the Merger of $179.6 million, loss on early extinguishment of debt of $75.4 million, a pre-tax non-cash impairment charge of $60.7 million related to trade name intangibles, restructuring costs of $55.3 million and acquisition costs and expenses of $12.0 million.

Fourth quarter 2011 includes decreases in operating income related to the changes in accounting for our pension and post-retirement benefit plans of $66.2 million and a pre-tax non-cash impairment charge of $200.5 million related to goodwill.

Our operating income (loss), net income (loss) before noncontrolling interest, net income (loss) attributable to Pentair Ltd., and earnings (loss) per share have all been revised for the retrospective application of our changes in accounting policy for recognizing the expense associated with our pension and other post-retirement benefit plans. See Note 3 for additional information. The impact of these accounting policy changes revised our previously reported information by the following:

Increase (reduction) to previously reported quarterly information (or for the fourth quarter of 2012, what would have been reported absent the changes in accounting principle):


	2012
In thousands, except per-share data	First			Second			Third			Fourth			Year
Operating income (loss)	$	1,522		$	1,522		$	1,522		$	(146,304	)	$	(141,738	)
Net income (loss) before noncontrolling interest		945			945			945			(89,296	)		(86,461	)
Net income (loss) attributable to Pentair Ltd.		945			945			945			(89,296	)		(86,461	)

Earnings (loss) per common share attributable to Pentair Ltd. ⁽¹⁾
Basic	$	0.01		$	0.01		$	0.01		$	(0.43	)	$	(0.68	)
Diluted		0.01			0.01			0.01			(0.43	)		(0.68	)

	2011
In thousands, except per-share data	First			Second			Third			Fourth			Year
Operating income (loss)	$	(708	)	$	(708	)	$	(708	)	$	(66,190	)	$	(68,314	)
Net income (loss) before noncontrolling interest		(432	)		(432	)		(432	)		(40,376	)		(41,672	)
Net income (loss) attributable to Pentair Ltd.		(432	)		(432	)		(432	)		(40,376	)		(41,672	)

Earnings (loss) per common share attributable to Pentair Ltd. ⁽¹⁾
Basic	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.41	)	$	(0.42	)
Diluted		(0.01	)		(0.01	)		(0.01	)		(0.41	)		(0.42	)

(1)

Amounts may not total to annual earnings because each quarter and year are calculated separately based on basic and diluted weighted-average common shares outstanding during that period.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

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