The company continues to execute on its Transformation Program initiatives, focusing on pricing excellence, strategic sourcing, operations excellence, and organizational effectiveness. Transformation costs were $17.0 million in the first quarter of 2024, compared to $8.5 million in the first quarter of 2023.

The company continues to pursue specific product and geographic market opportunities, both within and outside the U.S., and expects to continue investing in its businesses to drive these opportunities through research and development and additional sales and marketing resources.

In 2024, the company's operating objectives focus on delivering profitable revenue growth and productivity for customers and shareholders, focusing on capital allocation, accelerating performance with strategically aligned mergers and acquisitions, and focusing growth initiatives that accelerate investments in digital, innovation, technology and ESG.

The company executed certain business restructuring initiatives aimed at reducing its fixed cost structure and realigning its business. These actions are expected to continue throughout the remainder of 2024 and to drive margin growth.

The company continues to focus on capital allocation through committing to maintain its investment grade rating, focusing on reducing its long-term debt, and returning cash to shareholders through dividends and share repurchases.

The company is continuing to implement its Transformation Program initiatives that will drive operational excellence, reduce complexity and improve its organizational structure.

The company experienced inflationary cost increases for certain raw materials. The current volatile market for commodities has the potential to continue to drive price increases in the supply chain.

The Organization for Economic Co-operation and Development Pillar Two Model Rules for a global 15.0% minimum tax are impacting the company's effective tax rate in 2024.

There have been no material changes from the risk factors previously disclosed in Item 1A. of the Annual Report on Form 10-K for the year ended December 31, 2023.

The 1.9 percent decrease in net sales for Flow in the first quarter of 2024 from 2023 was primarily driven by decreased sales volume in our residential flow business compared to the same period of the prior year.

The 0.4 percent increase in net sales for Water Solutions in the first quarter of 2024 from 2023 was primarily driven by increased selling prices in our commercial business to mitigate inflationary cost increases.

The 1.3 percent decrease in net sales for Pool in the first quarter of 2024 from 2023 was primarily driven by decreased sales volume primarily due to lower demand compared to the prior year.

The 1.3 percentage point increase in gross profit as a percentage of net sales in the first quarter of 2024 from 2023 was primarily driven by increased productivity in our Flow and Water Solutions segments mainly driven by manufacturing leverage and transformation initiatives.

The 1.4 percentage point increase in SG&A as a percentage of net sales in the first quarter of 2024 from 2023 was primarily driven by transformation costs of $17.0 million in the first quarter of 2024, compared to $8.5 million in the first quarter of 2023.

The decrease in our overall backlog from December 31, 2023 was primarily driven by backlog in our Flow and Pool segments trending down to more historical levels as a result of increased manufacturing capacity and improved lead times.

The company is focusing growth initiatives that accelerate investments in digital, innovation, technology and ESG.

The company continues to focus on capital allocation through committing to maintain its investment grade rating, focusing on reducing its long-term debt, and returning cash to shareholders through dividends and share repurchases.

In December 2020, the Board of Directors authorized the repurchase of ordinary shares up to a maximum dollar limit of $750.0 million. During the three months ended March 31, 2024, no ordinary shares were repurchased.

We paid dividends in the first three months of 2024 of $38.0 million, or $0.23 per ordinary share compared with $36.2 million, or $0.22 per ordinary share, in the prior year period.

The company is focusing growth initiatives that accelerate investments in digital, innovation, technology and ESG.

End-user demand for pool equipment in the Pool segment, water solution products in the Water Solutions segment, and residential water supply and agricultural products within the Flow segment follows warm weather trends, with seasonal highs from April to September.

As of March 31, 2024, we had $89.1 million of cash held in certain countries in which the ability to repatriate is limited due to local regulations or significant potential tax consequences.