Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

We classify our operations into the following 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, commercial ice machines, 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. In addition, our water solutions business also provides installation and preventative services for water management solutions for commercial operators. 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 and transformation activities, impairments and other unusual non-operating items.

Financial information by reportable segment is as follows:

	2022		2021		2020		2022		2021		2020
In millions	Net sales						Segment income (loss)
Consumer Solutions	$	2,619.5	$	2,341.9	$	1,742.9	$	611.1	$	554.4	$	419.1
Industrial & Flow Technologies	1,500.8		1,421.4		1,273.6		242.3		213.3		164.6
Other	1.5		1.5		1.3		(85.7)		(81.8)		(66.1)
Consolidated (1)	$	4,121.8	$	3,764.8	$	3,017.8	$	767.7	$	685.9	$	517.6

(1) One customer in the Consumer Solutions’ pool business represented approximately 20%, 20%, and 15% of our consolidated net sales in 2022, 2021 and 2020, respectively.

	2022		2021		2020		2022		2021		2020		2022		2021		2020
In millions	Identifiable assets (1)						Capital expenditures						Depreciation
Consumer Solutions	$	4,496.7	$	2,823.0	$	2,327.9	$	53.5	$	32.5	$	27.4	$	27.3	$	23.7	$	21.4
Industrial & Flow Technologies	1,722.4		1,716.4		1,661.7		24.0		23.0		26.6		19.5		21.4		19.8
Other	228.4		214.2		207.6		7.7		4.7		8.2		7.3		6.1		5.5
Consolidated	$	6,447.5	$	4,753.6	$	4,197.2	$	85.2	$	60.2	$	62.2	$	54.1	$	51.2	$	46.7

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

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

In millions	2022		2021		2020
Segment income	$	767.7	$	685.9	$	517.6
Restructuring and other	(32.4)		(7.5)		(12.7)
Transformation costs	(27.2)		(11.7)		—
Inventory step-up	(5.8)		(2.3)		—
Intangible amortization	(52.5)		(26.3)		(28.4)
Pension and other post-retirement mark-to-market gain (loss)	17.5		2.4		(6.7)
Asset impairment and write-offs	(25.6)		—		(2.7)
Gain (loss) on sale of businesses	0.2		1.4		(0.1)
Russia business exit impact	(4.7)		—		—
Interest expense, net	(61.8)		(12.5)		(23.9)
Deal related costs and expenses	(22.2)		(7.9)		(0.6)
COVID-19 related costs and expenses	—		(0.6)		(10.4)
Legal accrual adjustments and settlements	(0.2)		7.6		—
Other expense	(2.4)		(1.7)		—
Income from continuing operations before income taxes	$	550.6	$	626.8	$	432.1