Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

Effective January 1, 2020, we reorganized our business segments to better support our organization with our strategies and to better align with our customer base, resulting in a change to our reporting segments. All prior period amounts related to the segment change have been retrospectively reclassified to conform to the new presentation. As part of this reorganization, the legacy Aquatic Systems, Flow Technologies, and Filtration Solutions segments were realigned into two reportable business segments:

•Consumer Solutions — This segment designs, manufactures and sells energy-efficient residential and commercial pool equipment and accessories, and commercial and residential water treatment products and systems. Residential and commercial pool equipment and accessories include pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment and pool accessories. Water treatment products and systems include pressure tanks, control valves, activated carbon products, conventional filtration products, and point-of-entry and point-of-use systems. Applications for our pool business’s products include residential and commercial pool maintenance, repair, renovation, service and construction. Our 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. The primary focus of this segment is business-to-consumer.

•Industrial & Flow Technologies — This segment 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, 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. The primary focus of this segment is business-to-business.

We evaluate performance based on net sales and segment income (loss) and use a variety of ratios to measure performance of our reporting segments. 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. Segment income (loss) represents equity income of unconsolidated subsidiaries and operating income exclusive of intangible amortization, certain acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items.

Financial information by reportable segment is as follows:

	Three months ended				Nine months ended
In millions	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net sales
Consumer Solutions	$	470.8	$	377.0	$	1,260.8	$	1,172.3
Industrial & Flow Technologies	327.4		336.2		960.1		1,028.6
Other	0.3		0.4		0.9		1.1
Consolidated	$	798.5	$	713.6	$	2,221.8	$	2,202.0
Segment income (loss)
Consumer Solutions	$	113.8	$	81.9	$	295.3	$	266.1
Industrial & Flow Technologies	42.7		55.9		131.5		156.6
Other	(16.0)		(15.0)		(50.1)		(47.1)
Consolidated	$	140.5	$	122.8	$	376.7	$	375.6

The following table presents a reconciliation of consolidated segment income to consolidated income from continuing operations before income taxes:

	Three months ended				Nine months ended
In millions	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Segment income	$	140.5	$	122.8	$	376.7	$	375.6
Deal-related costs and expenses	—		—		(0.4)		(4.2)
Inventory step-up	—		—		—		(2.2)
Restructuring and other	(2.1)		(5.9)		(5.6)		(13.7)
Intangible amortization	(6.9)		(7.6)		(21.5)		(24.1)
Pension settlement (loss) gain	—		(0.4)		—		11.8
Asset impairment	—		—		—		(18.2)
(Loss) gain on sale of businesses	—		(0.1)		(0.1)		3.3
COVID-19 related costs and expenses	(2.6)		—		(8.3)		—
Net interest expense	(5.4)		(6.9)		(20.0)		(23.6)
Other income (expense)	1.7		(0.7)		0.6		(3.1)
Income from continuing operations before income taxes	$	125.2	$	101.2	$	321.4	$	301.6