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Financial Statements of Parent Company Guarantor (Tables) | 12 Months Ended
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Dec. 31, 2012
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Pentair Ltd. and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year ended December 31, 2012
In thousands |  | Parent Company Guarantor |  |  | Subsidiary Issuer |  |  | Non-guarantor Subsidiaries |  |  | Eliminations |  |  | Pentair Ltd. and Subsidiaries Consolidated |
Net sales |  | $ | — |  |  | $ | — |  |  | $ | 4,416,146 |  |  | $ | — |  |  | $ | 4,416,146 |
Cost of goods sold |  |  | — |  |  |  | — |  |  |  | 3,146,554 |  |  |  | — |  |  |  | 3,146,554 |
Gross profit |  |  | — |  |  |  | — |  |  |  | 1,269,592 |  |  |  | — |  |  |  | 1,269,592 |
Selling, general and administrative |  |  | 5,017 |  |  |  | (3,792 | ) |  |  | 1,157,211 |  |  |  | — |  |  |  | 1,158,436 |
Research and development |  |  | — |  |  |  | — |  |  |  | 93,557 |  |  |  | — |  |  |  | 93,557 |
Impairment of trade names and goodwill |  |  | — |  |  |  | — |  |  |  | 60,718 |  |  |  | — |  |  |  | 60,718 |
Operating (loss) income |  |  | (5,017 | ) |  |  | 3,792 |  |  |  | (41,894 | ) |  |  | — |  |  |  | (43,119 | )
Loss (earnings) from investment in subsidiaries |  |  | 101,400 |  |  |  | 102,344 |  |  |  | — |  |  |  | (203,744 | ) |  |  | — |
Other (income) expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loss on early extinguishment of debt |  |  | — |  |  |  | — |  |  |  | 75,367 |  |  |  | — |  |  |  | 75,367 |
Equity income of unconsolidated subsidiaries |  |  | — |  |  |  | — |  |  |  | (2,156 | ) |  |  | — |  |  |  | (2,156 | )
Net interest (income) expense |  |  | 81 |  |  |  | 971 |  |  |  | 66,583 |  |  |  | — |  |  |  | 67,635 |
Income (loss) from continuing operations before income taxes and noncontrolling interest |  |  | (106,498 | ) |  |  | (99,523 | ) |  |  | (181,688 | ) |  |  | 203,744 |  |  |  | (183,965 | )
Provision (benefit) for income taxes |  |  | 688 |  |  |  | 1,101 |  |  |  | (81,142 | ) |  |  | — |  |  |  | (79,353 | )
Net income (loss) before noncontrolling interest |  |  | (107,186 | ) |  |  | (100,624 | ) |  |  | (100,546 | ) |  |  | 203,744 |  |  |  | (104,612 | )
Noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 2,574 |  |  |  | — |  |  |  | 2,574 |
Net income (loss) attributable to Pentair Ltd. |  | $ | (107,186 | ) |  | $ | (100,624 | ) |  | $ | (103,120 | ) |  | $ | 203,744 |  |  | $ | (107,186 | )
Comprehensive income (loss), net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) before noncontrolling interest |  | $ | (107,186 | ) |  | $ | (100,624 | ) |  | $ | (100,546 | ) |  | $ | 203,744 |  |  | $ | (104,612 | )
Changes in cumulative translation adjustment |  |  | 34,416 |  |  |  | 34,416 |  |  |  | 35,830 |  |  |  | 68,832 |  |  |  | 35,830 |
Amortization of pension and other post-retirement prior service cost |  |  | (253 | ) |  |  | (253 | ) |  |  | (253 | ) |  |  | 506 |  |  |  | (253 | )
Changes in market value of derivative financial instruments |  |  | (3,630 | ) |  |  | (3,630 | ) |  |  | (3,630 | ) |  |  | 7,260 |  |  |  | (3,630 | )
Total comprehensive income (loss) |  |  | (76,653 | ) |  |  | (70,091 | ) |  |  | (68,599 | ) |  |  | 142,678 |  |  |  | (72,665 | )
Less: Comprehensive income (loss) attributable to noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 3,988 |  |  |  | — |  |  |  | 3,988 |
Comprehensive income (loss) attributable to Pentair Ltd. |  | $ | (76,653 | ) |  | $ | (70,091 | ) |  | $ | (72,587 | ) |  | $ | 142,678 |  |  | $ | (76,653 | )
Condensed Consolidating Balance Sheet | Pentair Ltd. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2012
In thousands |  | Parent Company Guarantor |  |  | Subsidiary Issuer |  |  | Non-guarantor Subsidiaries |  |  | Eliminations |  |  | Pentair Ltd. and Subsidiaries Consolidated |
Assets |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 30 |  |  | $ | 261,311 |  |  | $ | — |  |  | $ | 261,341 |
Accounts and notes receivable, net |  |  | 20,197 |  |  |  | 1,458,341 |  |  |  | 1,348,698 |  |  |  | (1,534,588 | ) |  |  | 1,292,648 |
Inventories |  |  | — |  |  |  | — |  |  |  | 1,380,271 |  |  |  | — |  |  |  | 1,380,271 |
Other current assets |  |  | 1,425 |  |  |  | — |  |  |  | 324,683 |  |  |  | — |  |  |  | 326,108 |
Total current assets |  |  | 21,622 |  |  |  | 1,458,371 |  |  |  | 3,314,963 |  |  |  | (1,534,588 | ) |  |  | 3,260,368 |
Property, plant and equipment, net |  |  | — |  |  |  | — |  |  |  | 1,224,488 |  |  |  | — |  |  |  | 1,224,488 |
Other assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments in subsidiaries |  |  | 6,496,081 |  |  |  | 7,471,843 |  |  |  | — |  |  |  | (13,967,924 | ) |  |  | — |
Goodwill |  |  | — |  |  |  | — |  |  |  | 4,894,512 |  |  |  | — |  |  |  | 4,894,512 |
Intangibles, net |  |  | — |  |  |  | — |  |  |  | 1,909,656 |  |  |  | — |  |  |  | 1,909,656 |
Other non-current assets |  |  | 13,300 |  |  |  | 8,988 |  |  |  | 497,299 |  |  |  | (13,300 | ) |  |  | 506,287 |
Total other assets |  |  | 6,509,381 |  |  |  | 7,480,831 |  |  |  | 7,301,467 |  |  |  | (13,981,224 | ) |  |  | 7,310,455 |
Total assets |  | $ | 6,531,003 |  |  | $ | 8,939,202 |  |  | $ | 11,840,918 |  |  | $ | (15,515,812 | ) |  | $ | 11,795,311 |
Liabilities and Equity |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current maturities of long-term debt and short-term borrowings |  | $ | — |  |  | $ | — |  |  | $ | 3,096 |  |  | $ | — |  |  | $ | 3,096 |
Accounts payable |  |  | 54,263 |  |  |  | 1,787 |  |  |  | 589,793 |  |  |  | (76,247 | ) |  |  | 569,596 |
Employee compensation and benefits |  |  | — |  |  |  | — |  |  |  | 295,067 |  |  |  | — |  |  |  | 295,067 |
Other current liabilities |  |  | 96,580 |  |  |  | 11,297 |  |  |  | 562,285 |  |  |  | — |  |  |  | 670,162 |
Total current liabilities |  |  | 150,843 |  |  |  | 13,084 |  |  |  | 1,450,241 |  |  |  | (76,247 | ) |  |  | 1,537,921 |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-term debt |  |  | — |  |  |  | 2,297,710 |  |  |  | 1,614,909 |  |  |  | (1,458,341 | ) |  |  | 2,454,278 |
Pension and other post-retirement compensation and benefits |  |  | — |  |  |  | — |  |  |  | 378,066 |  |  |  | — |  |  |  | 378,066 |
Deferred tax liabilities |  |  | — |  |  |  | — |  |  |  | 488,102 |  |  |  | — |  |  |  | 488,102 |
Other non-current liabilities |  |  | 13,300 |  |  |  | — |  |  |  | 453,587 |  |  |  | (13,300 | ) |  |  | 453,587 |
Total liabilities |  |  | 164,143 |  |  |  | 2,310,794 |  |  |  | 4,384,905 |  |  |  | (1,547,888 | ) |  |  | 5,311,954 |
Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity attributable to Pentair Ltd. and subsidiaries |  |  | 6,366,860 |  |  |  | 6,628,408 |  |  |  | 7,339,516 |  |  |  | (13,967,924 | ) |  |  | 6,366,860 |
Noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 116,497 |  |  |  | — |  |  |  | 116,497 |
Total equity |  |  | 6,366,860 |  |  |  | 6,628,408 |  |  |  | 7,456,013 |  |  |  | (13,967,924 | ) |  |  | 6,483,357 |
Total liabilities and equity |  | $ | 6,531,003 |  |  | $ | 8,939,202 |  |  | $ | 11,840,918 |  |  | $ | (15,515,812 | ) |  | $ | 11,795,311 |
Condensed Consolidating Statement of Cash Flows | Pentair Ltd. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year ended December 31, 2012
In thousands |  | Parent Company Guarantor |  |  | Subsidiary Issuer |  |  | Non-guarantor Subsidiaries |  |  | Eliminations |  |  | Pentair Ltd. and Subsidiaries Consolidated |
Operating activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net cash provided by (used for) operating activities |  | $ | (108,944 | ) |  | $ | (88,253 | ) |  | $ | 61,413 |  |  | $ | 203,744 |  |  | $ | 67,960 |
Investing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  |  | — |  |  |  | — |  |  |  | (94,532 | ) |  |  | — |  |  |  | (94,532 | )
Proceeds from sale of property and equipment |  |  | — |  |  |  | — |  |  |  | 5,508 |  |  |  | — |  |  |  | 5,508 |
Acquisitions, net of cash acquired |  |  | — |  |  |  | 300,061 |  |  |  | 170,398 |  |  |  | — |  |  |  | 470,459 |
Other |  |  | — |  |  |  | — |  |  |  | (5,858 | ) |  |  | — |  |  |  | (5,858 | )
Net cash provided by (used for) investing activities |  |  | — |  |  |  | 300,061 |  |  |  | 75,516 |  |  |  | — |  |  |  | 375,577 |
Financing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net short-term borrowings |  |  | — |  |  |  | — |  |  |  | (3,700 | ) |  |  | — |  |  |  | (3,700 | )
Proceeds from long-term debt |  |  | — |  |  |  | 1,397,710 |  |  |  | 138,436 |  |  |  | — |  |  |  | 1,536,146 |
Repayment of long-term debt |  |  | — |  |  |  | — |  |  |  | (1,305,339 | ) |  |  | — |  |  |  | (1,305,339 | )
Debt issuance costs |  |  | — |  |  |  | (8,722 | ) |  |  | (982 | ) |  |  | — |  |  |  | (9,704 | )
Debt extinguishment costs |  |  | — |  |  |  | — |  |  |  | (74,752 | ) |  |  | — |  |  |  | (74,752 | )
Net change in advances to subsidiaries |  |  | 156,977 |  |  |  | (1,600,766 | ) |  |  | 1,647,533 |  |  |  | (203,744 | ) |  |  | — |
Excess tax benefits from share-based compensation |  |  | — |  |  |  | — |  |  |  | 4,976 |  |  |  | — |  |  |  | 4,976 |
Shares issued to employees, net of shares withheld |  |  | — |  |  |  | — |  |  |  | 68,177 |  |  |  | — |  |  |  | 68,177 |
Repurchases of common shares |  |  | — |  |  |  | — |  |  |  | (334,159 | ) |  |  | — |  |  |  | (334,159 | )
Dividends paid |  |  | (48,033 | ) |  |  | — |  |  |  | (64,364 | ) |  |  | — |  |  |  | (112,397 | )
Distributions to noncontrolling interest |  |  | — |  |  |  | — |  |  |  | (1,554 | ) |  |  | — |  |  |  | (1,554 | )
Net cash provided by (used for) financing activities |  |  | 108,944 |  |  |  | (211,778 | ) |  |  | 74,272 |  |  |  | (203,744 | ) |  |  | (232,306 | )
Effect of exchange rate changes on cash and cash equivalents |  |  | — |  |  |  | — |  |  |  | 33 |  |  |  | — |  |  |  | 33 |
Change in cash and cash equivalents |  |  | — |  |  |  | 30 |  |  |  | 211,234 |  |  |  | — |  |  |  | 211,264 |
Cash and cash equivalents, beginning of year |  |  | — |  |  |  | — |  |  |  | 50,077 |  |  |  | — |  |  |  | 50,077 |
Cash and cash equivalents, end of year |  | $ | — |  |  | $ | 30 |  |  | $ | 261,311 |  |  | $ | — |  |  | $ | 261,341 |

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