The Transformation Program, initiated in 2021, continues to focus on pricing excellence, strategic sourcing, operations excellence, and organizational effectiveness. This program aims to accelerate growth and drive margin expansion by streamlining processes and reducing complexity.

In 2024, Pentair began using 80/20 guiding principles to focus on the right customers and products through quadrant-based strategies. This is expected to improve operating performance by reducing lower margin sales and removing complexity.

Pentair is focusing on growth initiatives that accelerate investments in digital, innovation, technology, and ESG. Specific details on the amount of investment and expected returns are not provided in this filing.

Pentair executed certain business restructuring initiatives aimed at reducing fixed cost structure and realigning the business. These actions are expected to continue throughout the remainder of 2024 and to drive margin growth. Approximately 200 employees were impacted in the first six months of 2024.

The effective income tax rate for the six months ended June 30, 2024, was 14.6%, compared to 14.8% for the six months ended June 30, 2023. This increase is primarily driven by the unfavorable mix of global earnings.

During the three and six months ended June 30, 2024, Pentair repurchased 0.6 million of its ordinary shares for $50.0 million. As of June 30, 2024, $550.0 million remained available for share repurchases under the existing authorization.

The 10-Q states that 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 company experienced inflationary cost increases for certain raw materials, logistics, and transportation. They anticipate supply chain pressures and inflationary cost increases to continue for the remainder of 2024.

The Organization for Economic Co-operation and Development Pillar Two Model Rules for a global 15.0% minimum tax are in the process of being adopted by a number of jurisdictions in which Pentair operates. Pillar Two has negatively impacted their effective tax rate in 2024.

The company experienced decreased sales volume in residential flow and industrial solutions businesses within the Flow segment, and in commercial and residential businesses in the Water Solutions segment, indicating potential competitive pressures or market shifts.

The Pool segment experienced increased sales volume due to higher demand compared to the prior year, indicating a strong competitive position in this market.

Overall backlog decreased from $738.3 million at December 31, 2023, to $490.9 million at June 30, 2024. This decrease was primarily driven by backlog trending down to more historical levels as a result of increased manufacturing capacity and improved lead times.

Increased productivity, mainly driven by manufacturing leverage within the Pool segment and transformation initiatives, contributed to improved gross profit margins.

Changes in net working capital included a cash inflow of $15.4 million, primarily due to lower inventory and increased accounts payable balances. The decrease in inventory was primarily related to supply chain efficiencies and improved lead times.

Restructuring and Transformation Program initiatives included a reduction in hourly and salaried headcount of approximately 200 employees during the six months ended June 30, 2024.

Pentair is focusing on growth initiatives that accelerate investments in digital, innovation, and technology. No specific details or metrics are provided in this filing.

Capitalized software increased from $70.5 million in December 31, 2023 to $90.7 million in June 30, 2024.

The 10-Q lacks detailed discussion of specific R&D projects, new product launches, or technological advancements beyond the general statement of focusing on growth initiatives that accelerate investments in digital, innovation, and technology.

During the three and six months ended June 30, 2024, Pentair repurchased 0.6 million of its ordinary shares for $50.0 million. As of June 30, 2024, $550.0 million remained available for share repurchases under the existing authorization.

On May 6, 2024, the Board of Directors declared a quarterly cash dividend of $0.23 per share, payable on August 2, 2024.

Net cash used for investing activities in the first six months of 2024 primarily reflects capital expenditures of $36.3 million, similar to $35.4 million in the prior year.

Pentair is focusing on growth initiatives that accelerate investments in ESG. No specific details or metrics are provided in this filing.

The 10-Q lacks any specific disclosures related to environmental commitments, progress towards sustainability goals, or social responsibility initiatives beyond the general statement of focusing on growth initiatives that accelerate investments in ESG.

The 10-Q lacks any specific disclosures related to governance practices.

The company acknowledges that overall global economic and business conditions, including housing market strength and international hostilities, impact their business.

Pentair experiences seasonal cash flows primarily due to seasonal demand in a number of markets, with peak sales during April to September.

The current volatile market for commodities has the potential to continue to drive price increases in Pentair's supply chain.