XML 27 R46.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Financial Statements of Parent Company Guarantor (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2013
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, 2013
In millions | Parent Company Guarantor | Subsidiary Issuer | Non-guarantor Subsidiaries | Eliminations | Pentair Ltd. and Subsidiaries Consolidated
Net sales | $ | — |  | $ | — |  | $ | 7,479.7 |  | $ | — |  | $ | 7,479.7 |
Cost of goods sold | — |  | — |  | 5,006.8 |  | — |  | 5,006.8 |
Gross profit | — |  | — |  | 2,472.9 |  | — |  | 2,472.9 |
Selling, general and administrative | 21.0 |  | 13.3 |  | 1,527.8 |  | — |  | 1,562.1 |
Research and development | — |  | — |  | 125.8 |  | — |  | 125.8 |
Impairment of trade names and goodwill | — |  | — |  | 11.0 |  | — |  | 11.0 |
Operating (loss) income | (21.0 | ) | (13.3 | ) | 808.3 |  | — |  | 774.0 |
Loss (earnings) from investment in subsidiaries | (564.1 | ) | (533.7 | ) | — |  | 1,097.8 |  | — |
Other (income) expense: |  |  |  |  |
Gain on sale of businesses, net | — |  | — |  | (19.7 | ) | — |  | (19.7 | )
Equity income of unconsolidated subsidiaries | — |  | — |  | (1.8 | ) | — |  | (1.8 | )
Interest income | — |  | (99.2 | ) | (56.6 | ) | 148.2 |  | (7.6 | )
Interest expense | 5.6 |  | 106.0 |  | 113.3 |  | (148.2 | ) | 76.7 |
Income (loss) before income taxes and noncontrolling interest | 537.5 |  | 513.6 |  | 773.1 |  | (1,097.8 | ) | 726.4 |
Provision for income taxes | 0.7 |  | 1.4 |  | 181.7 |  | — |  | 183.8 |
Net income (loss) before noncontrolling interest | 536.8 |  | 512.2 |  | 591.4 |  | (1,097.8 | ) | 542.6 |
Noncontrolling interest | — |  | — |  | 5.8 |  | — |  | 5.8 |
Net income (loss) attributable to Pentair Ltd. | $ | 536.8 |  | $ | 512.2 |  | $ | 585.6 |  | $ | (1,097.8 | ) | $ | 536.8 |
Comprehensive income (loss), net of tax |  |  |  |  |
Net income (loss) before noncontrolling interest | $ | 536.8 |  | $ | 512.2 |  | $ | 591.4 |  | $ | (1,097.8 | ) | $ | 542.6 |
Changes in cumulative translation adjustment | (31.3 | ) | (31.3 | ) | (29.1 | ) | 62.6 |  | (29.1 | )
Amortization of pension and other post-retirement prior service cost | (0.4 | ) | (0.4 | ) | (0.4 | ) | 0.8 |  | (0.4 | )
Changes in market value of derivative financial instruments | (0.3 | ) | (0.3 | ) | (0.3 | ) | 0.6 |  | (0.3 | )
Total comprehensive income (loss) | 504.8 |  | 480.2 |  | 561.6 |  | (1,033.8 | ) | 512.8 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | — |  | — |  | 8.0 |  | — |  | 8.0 |
Comprehensive income (loss) attributable to Pentair Ltd. | $ | 504.8 |  | $ | 480.2 |  | $ | 553.6 |  | $ | (1,033.8 | ) | $ | 504.8 |
Pentair Ltd. and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year ended December 31, 2012
In millions | Parent Company Guarantor | Subsidiary Issuer | Non-guarantor Subsidiaries | Eliminations | Pentair Ltd. and Subsidiaries Consolidated
Net sales | $ | — |  | $ | — |  | $ | 4,416.1 |  | $ | — |  | $ | 4,416.1 |
Cost of goods sold | — |  | — |  | 3,146.5 |  | — |  | 3,146.5 |
Gross profit | — |  | — |  | 1,269.6 |  | — |  | 1,269.6 |
Selling, general and administrative | 5.0 |  | (3.8 | ) | 1,157.2 |  | — |  | 1,158.4 |
Research and development | — |  | — |  | 93.6 |  | — |  | 93.6 |
Impairment of trade names and goodwill | — |  | — |  | 60.7 |  | — |  | 60.7 |
Operating (loss) income | (5.0 | ) | 3.8 |  | (41.9 | ) | — |  | (43.1 | )
Loss (earnings) from investment in subsidiaries | 101.4 |  | 102.3 |  | — |  | (203.7 | ) | — |
Other (income) expense: |  |  |  |  |
Loss on early extinguishment of debt | — |  | — |  | 75.4 |  | — |  | 75.4 |
Equity income of unconsolidated subsidiaries | — |  | — |  | (2.1 | ) | — |  | (2.1 | )
Interest income | — |  | (9.2 | ) | (2.9 | ) | 9.2 |  | (2.9 | )
Interest expense | 0.1 |  | 10.2 |  | 69.4 |  | (9.2 | ) | 70.5 |
Income (loss) before income taxes and noncontrolling interest | (106.5 | ) | (99.5 | ) | (181.7 | ) | 203.7 |  | (184.0 | )
Provision (benefit) for income taxes | 0.7 |  | 1.1 |  | (81.2 | ) | — |  | (79.4 | )
Net income (loss) before noncontrolling interest | (107.2 | ) | (100.6 | ) | (100.5 | ) | 203.7 |  | (104.6 | )
Noncontrolling interest | — |  | — |  | 2.6 |  | — |  | 2.6 |
Net income (loss) attributable to Pentair Ltd. | $ | (107.2 | ) | $ | (100.6 | ) | $ | (103.1 | ) | $ | 203.7 |  | $ | (107.2 | )
Comprehensive income (loss), net of tax |  |  |  |  |
Net income (loss) before noncontrolling interest | $ | (107.2 | ) | $ | (100.6 | ) | $ | (100.5 | ) | $ | 203.7 |  | $ | (104.6 | )
Changes in cumulative translation adjustment | 30.0 |  | 30.0 |  | 31.4 |  | (60.0 | ) | 31.4 |
Amortization of pension and other post-retirement prior service cost | (0.3 | ) | (0.3 | ) | (0.3 | ) | 0.6 |  | (0.3 | )
Changes in market value of derivative financial instruments | (3.6 | ) | (3.6 | ) | (3.6 | ) | 7.2 |  | (3.6 | )
Total comprehensive income (loss) | (81.1 | ) | (74.5 | ) | (73.0 | ) | 151.5 |  | (77.1 | )
Less: Comprehensive income (loss) attributable to noncontrolling interest | — |  | — |  | 4.0 |  | — |  | 4.0 |
Comprehensive income (loss) attributable to Pentair Ltd. | $ | (81.1 | ) | $ | (74.5 | ) | $ | (77.0 | ) | $ | 151.5 |  | $ | (81.1 | )
Condensed Consolidating Balance Sheet | Pentair Ltd. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2012
In millions | Parent Company Guarantor | Subsidiary Issuer | Non-guarantor Subsidiaries | Eliminations | Pentair Ltd. and Subsidiaries Consolidated
Assets
Current assets |  |  |  |  |
Cash and cash equivalents | $ | — |  | $ | — |  | $ | 261.3 |  | $ | — |  | $ | 261.3 |
Accounts and notes receivable, net | 20.2 |  | 1,458.3 |  | 1,330.7 |  | (1,534.6 | ) | $ | 1,274.6 |
Inventories | — |  | — |  | 1,333.9 |  | — |  | $ | 1,333.9 |
Other current assets | 85.8 |  | — |  | 333.1 |  | (84.4 | ) | $ | 334.5 |
Total current assets | 106.0 |  | 1,458.3 |  | 3,259.0 |  | (1,619.0 | ) | 3,204.3 |
Property, plant and equipment, net | — |  | — |  | 1,188.2 |  | — |  | 1,188.2 |
Other assets |  |  |  |  |
Investments in subsidiaries | 6,486.3 |  | 7,464.6 |  | — |  | (13,950.9 | ) | — |
Goodwill | — |  | — |  | 5,111.0 |  | — |  | 5,111.0 |
Intangibles, net | — |  | — |  | 1,926.9 |  | — |  | 1,926.9 |
Other non-current assets | 31.6 |  | 6.9 |  | 413.8 |  | — |  | 452.3 |
Total other assets | 6,517.9 |  | 7,471.5 |  | 7,451.7 |  | (13,950.9 | ) | 7,490.2 |
Total assets | $ | 6,623.9 |  | $ | 8,929.8 |  | $ | 11,898.9 |  | $ | (15,569.9 | ) | $ | 11,882.7 |
Liabilities and Equity
Current liabilities |  |  |  |  |
Current maturities of long-term debt and short-term borrowings | $ | — |  | $ | — |  | $ | 3.1 |  | $ | — |  | $ | 3.1 |
Accounts payable | 54.3 |  | 1.7 |  | 587.3 |  | (76.3 | ) | 567.0 |
Employee compensation and benefits | — |  | — |  | 296.7 |  | — |  | 296.7 |
Other current liabilities | 180.9 |  | 11.5 |  | 670.3 |  | (84.4 | ) | 778.3 |
Total current liabilities | 235.2 |  | 13.2 |  | 1,557.4 |  | (160.7 | ) | 1,645.1 |
Other liabilities |  |  |  |  |
Long-term debt | — |  | 2,297.7 |  | 1,614.9 |  | (1,458.3 | ) | 2,454.3 |
Pension and other post-retirement compensation and benefits | — |  | — |  | 378.8 |  | — |  | 378.8 |
Deferred tax liabilities | — |  | — |  | 421.9 |  | — |  | 421.9 |
Other non-current liabilities | 17.6 |  | — |  | 477.5 |  | — |  | 495.1 |
Total liabilities | 252.8 |  | 2,310.9 |  | 4,450.5 |  | (1,619.0 | ) | 5,395.2 |
Equity |  |  |  |  |
Shareholders’ equity attributable to Pentair Ltd. and subsidiaries | 6,371.1 |  | 6,618.9 |  | 7,332.0 |  | (13,950.9 | ) | 6,371.1 |
Noncontrolling interest | — |  | — |  | 116.4 |  | — |  | 116.4 |
Total equity | 6,371.1 |  | 6,618.9 |  | 7,448.4 |  | (13,950.9 | ) | 6,487.5 |
Total liabilities and equity | $ | 6,623.9 |  | $ | 8,929.8 |  | $ | 11,898.9 |  | $ | (15,569.9 | ) | $ | 11,882.7 |
Pentair Ltd. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2013
In millions | Parent Company Guarantor | Subsidiary Issuer | Non-guarantor Subsidiaries | Eliminations | Pentair Ltd. and Subsidiaries Consolidated
Assets
Current assets |  |  |  |  |
Cash and cash equivalents | $ | 0.5 |  | $ | 47.0 |  | $ | 217.6 |  | $ | — |  | $ | 265.1 |
Accounts and notes receivable, net | 2.9 |  | 4.0 |  | 1,391.0 |  | (63.6 | ) | 1,334.3 |
Inventories | — |  | — |  | 1,243.3 |  | — |  | 1,243.3 |
Other current assets | 1.4 |  | 0.6 |  | 387.4 |  | — |  | 389.4 |
Total current assets | 4.8 |  | 51.6 |  | 3,239.3 |  | (63.6 | ) | 3,232.1 |
Property, plant and equipment, net | — |  | — |  | 1,170.0 |  | — |  | 1,170.0 |
Other assets |  |  |  |  |
Investments in subsidiaries | 6,224.7 |  | 8,066.6 |  | — |  | (14,291.3 | ) | — |
Goodwill | — |  | — |  | 5,134.2 |  | — |  | 5,134.2 |
Intangibles, net | — |  | — |  | 1,776.1 |  | — |  | 1,776.1 |
Other non-current assets | 31.6 |  | 1,302.7 |  | 393.3 |  | (1,296.7 | ) | 430.9 |
Total other assets | 6,256.3 |  | 9,369.3 |  | 7,303.6 |  | (15,588.0 | ) | 7,341.2 |
Total assets | $ | 6,261.1 |  | $ | 9,420.9 |  | $ | 11,712.9 |  | $ | (15,651.6 | ) | $ | 11,743.3 |
Liabilities and Equity
Current liabilities |  |  |  |  |
Current maturities of long-term debt and short-term borrowings | $ | — |  | $ | — |  | $ | 2.5 |  | $ | — |  | $ | 2.5 |
Accounts payable | 48.1 |  | 8.6 |  | 603.5 |  | (63.6 | ) | 596.6 |
Employee compensation and benefits | 0.5 |  | — |  | 346.6 |  | — |  | 347.1 |
Other current liabilities | 99.6 |  | 11.7 |  | 552.7 |  | — |  | 664.0 |
Total current liabilities | 148.2 |  | 20.3 |  | 1,505.3 |  | (63.6 | ) | 1,610.2 |
Other liabilities |  |  |  |  |
Long-term debt | — |  | 2,401.9 |  | 1,447.4 |  | (1,296.7 | ) | 2,552.6 |
Pension and other post-retirement compensation and benefits | — |  | — |  | 324.8 |  | — |  | 324.8 |
Deferred tax liabilities | — |  | 2.2 |  | 578.4 |  | — |  | 580.6 |
Other non-current liabilities | 17.6 |  | — |  | 439.8 |  | — |  | 457.4 |
Total liabilities | 165.8 |  | 2,424.4 |  | 4,295.7 |  | (1,360.3 | ) | 5,525.6 |
Equity |  |  |  |  |
Shareholders’ equity attributable to Pentair Ltd. and subsidiaries | 6,095.3 |  | 6,996.5 |  | 7,294.8 |  | (14,291.3 | ) | 6,095.3 |
Noncontrolling interest | — |  | — |  | 122.4 |  | — |  | 122.4 |
Total equity | 6,095.3 |  | 6,996.5 |  | 7,417.2 |  | (14,291.3 | ) | 6,217.7 |
Total liabilities and equity | $ | 6,261.1 |  | $ | 9,420.9 |  | $ | 11,712.9 |  | $ | (15,651.6 | ) | $ | 11,743.3 |
Condensed Consolidating Statement of Cash Flows | Pentair Ltd. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year ended December 31, 2013
In millions | Parent Company Guarantor | Subsidiary Issuer | Non-guarantor Subsidiaries | Eliminations | Pentair Ltd. and Subsidiaries Consolidated
Operating activities |  |  |  |
Net cash provided by (used for) operating activities | $ | 534.2 |  | $ | 514.0 |  | $ | 964.9 |  | $ | (1,097.8 | ) | $ | 915.3 |
Investing activities |  |  |  |  |
Capital expenditures | — |  | — |  | (170.0 | ) | — |  | (170.0 | )
Proceeds from sale of property and equipment | — |  | — |  | 6.0 |  | — |  | 6.0 |
Proceeds from sale of businesses, net | — |  | — |  | 43.5 |  | — |  | 43.5 |
Acquisitions, net of cash acquired | — |  | — |  | (92.4 | ) | — |  | (92.4 | )
Other | — |  | — |  | 1.7 |  | — |  | 1.7 |
Net cash provided by (used for) investing activities | — |  | — |  | (211.2 | ) | — |  | (211.2 | )
Financing activities |  |  |  |  |
Net receipts from commercial paper and revolving long-term debt | — |  | 104.2 |  | — |  | — |  | 104.2 |
Proceeds from long-term debt | — |  | — |  | 0.7 |  | — |  | 0.7 |
Repayment of long-term debt | — |  | — |  | (7.4 | ) | — |  | (7.4 | )
Debt issuance costs | — |  | (1.4 | ) | — |  | — |  | (1.4 | )
Net change in advances to subsidiaries | (339.5 | ) | (569.8 | ) | (188.5 | ) | 1,097.8 |  | — |
Excess tax benefits from share-based compensation | — |  | — |  | 16.8 |  | — |  | 16.8 |
Shares issued to employees, net of shares withheld | — |  | — |  | 80.0 |  | — |  | 80.0 |
Repurchases of common shares | — |  | — |  | (715.8 | ) | — |  | (715.8 | )
Dividends paid | (194.2 | ) | — |  | — |  | — |  | (194.2 | )
Distributions to noncontrolling interest | — |  | — |  | (2.0 | ) | — |  | (2.0 | )
Net cash provided by (used for) financing activities | (533.7 | ) | (467.0 | ) | (816.2 | ) | 1,097.8 |  | (719.1 | )
Effect of exchange rate changes on cash and cash equivalents | — |  | — |  | 18.8 |  | — |  | 18.8 |
Change in cash and cash equivalents | 0.5 |  | 47.0 |  | (43.7 | ) | — |  | 3.8 |
Cash and cash equivalents, beginning of year | — |  | — |  | 261.3 |  | — |  | 261.3 |
Cash and cash equivalents, end of year | $ | 0.5 |  | $ | 47.0 |  | $ | 217.6 |  | $ | — |  | $ | 265.1 |
Pentair Ltd. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year ended December 31, 2012
In millions | Parent Company Guarantor | Subsidiary Issuer | Non-guarantor Subsidiaries | Eliminations | Pentair Ltd. and Subsidiaries Consolidated
Operating activities |  |  |  |
Net cash provided by (used for) operating activities | $ | (109.0 | ) | $ | (88.2 | ) | $ | 61.5 |  | $ | 203.7 |  | $ | 68.0 |
Investing activities |  |  |  |  |
Capital expenditures | — |  | — |  | (94.5 | ) | — |  | (94.5 | )
Proceeds from sale of property and equipment | — |  | — |  | 5.5 |  | — |  | 5.5 |
Acquisitions, net of cash acquired | — |  | 300.1 |  | 170.4 |  | — |  | 470.5 |
Other | — |  | — |  | (5.9 | ) | — |  | (5.9 | )
Net cash provided by (used for) investing activities | — |  | 300.1 |  | 75.5 |  | — |  | 375.6 |
Financing activities |  |  |  |  |
Net repayments on short-term borrowings | — |  | — |  | (3.7 | ) | — |  | (3.7 | )
Net receipts (repayments) from commercial paper and revolving long-term debt | — |  | 424.7 |  | (170.9 | ) | — |  | 253.8 |
Proceeds from long-term debt | — |  | 594.3 |  | — |  | — |  | 594.3 |
Repayment of long-term debt | — |  | — |  | (617.2 | ) | — |  | (617.2 | )
Debt issuance costs | — |  | (8.7 | ) | (1.0 | ) | — |  | (9.7 | )
Debt extinguishment costs | — |  | — |  | (74.8 | ) | — |  | (74.8 | )
Net change in advances to subsidiaries | 157.0 |  | (1,222.2 | ) | 1,268.9 |  | (203.7 | ) | — |
Excess tax benefits from share-based compensation | — |  | — |  | 5.0 |  | — |  | 5.0 |
Shares issued to employees, net of shares withheld | — |  | — |  | 68.2 |  | — |  | 68.2 |
Repurchases of common shares | — |  | — |  | (334.2 | ) | — |  | (334.2 | )
Dividends paid | (48.0 | ) | — |  | (64.4 | ) | — |  | (112.4 | )
Distributions to noncontrolling interest | — |  | — |  | (1.6 | ) | — |  | (1.6 | )
Net cash provided by (used for) financing activities | 109.0 |  | (211.9 | ) | 74.3 |  | (203.7 | ) | (232.3 | )
Effect of exchange rate changes on cash and cash equivalents | — |  | — |  | (0.1 | ) | — |  | (0.1 | )
Change in cash and cash equivalents | — |  | — |  | 211.2 |  | — |  | 211.2 |
Cash and cash equivalents, beginning of year | — |  | — |  | 50.1 |  | — |  | 50.1 |
Cash and cash equivalents, end of year | $ | — |  | $ | — |  | $ | 261.3 |  | $ | — |  | $ | 261.3 |

X
- Definition Tabular disclosure of a condensed balance sheet. Disclosure may include, but is not limited to, balance sheets of consolidated entities and consolidation eliminations. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCondensedBalanceSheetTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a condensed cash flow statement. Disclosure may include, but is not limited to, cash flow statements of consolidated entities and consolidation eliminations. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCondensedCashFlowStatementTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a condensed income statement. Disclosure may include, but is not limited to, income statements of consolidated entities and consolidation eliminations. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCondensedIncomeStatementTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration