Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

Effective January 1, 2023, we reorganized our reporting segments to reflect how we are managing our business and to help us accelerate our efforts to improve customer experience, differentiate our products and drive profitability for our shareholders. 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 Consumer Solutions segment was divided into a Pool segment and a Water Solutions segment. The Industrial & Flow Technologies segment remains the same. We classify our operations into the following reporting segments:

•Industrial & Flow Technologies — The focus of this segment is to deliver water where it is needed, when it is needed and more efficiently and transforming 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, 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 end-users 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 end-users 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 and construction and aquaculture solutions.

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:

	Three months ended				Six months ended
In millions	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net sales
Industrial & Flow Technologies	$	411.6	$	377.4	$	803.4	$	735.5
Water Solutions	336.2		222.2		608.2		428.0
Pool	334.3		464.0		698.6		899.4
Other	0.4		0.6		0.9		0.9
Consolidated	$	1,082.5	$	1,064.2	$	2,111.1	$	2,063.8
Segment income (loss)
Industrial & Flow Technologies	$	74.8	$	59.1	$	139.8	$	111.3
Water Solutions	74.8		32.5		127.2		54.7
Pool	105.1		136.7		221.3		253.0
Other	(20.5)		(22.4)		(43.1)		(41.0)
Consolidated	$	234.2	$	205.9	$	445.2	$	378.0

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

	Three months ended				Six months ended
In millions	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Segment income	$	234.2	$	205.9	$	445.2	$	378.0
Deal-related costs and expenses	—		(1.6)		—		(8.0)
Asset impairment and write-offs	(0.5)		—		(4.4)		—
Restructuring and other	(0.6)		(1.1)		(3.5)		(3.2)
Transformation costs	(6.0)		(5.2)		(14.5)		(10.7)
Intangible amortization	(13.9)		(6.3)		(27.7)		(12.9)
Russia business exit impact	—		—		—		(5.9)
Legal accrual adjustments and settlements	(4.1)		(0.5)		(2.2)		0.2
Interest expense, net	(31.8)		(9.2)		(64.2)		(14.9)
Other income (expense)	4.2		(0.5)		3.3		(1.1)
Income from continuing operations before income taxes	$	181.5	$	181.5	$	332.0	$	321.5