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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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State of Indiana
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81-1197930
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(State or Other Jurisdiction
of Incorporation or Organization)
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(I.R.S. Employer
Identification Number)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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ITEM
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PAGE
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PART I – FINANCIAL INFORMATION
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1.
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Financial Statements
(unaudited)
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Consolidated Condensed
Statements of Operations
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2.
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3.
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4.
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PART II – OTHER INFORMATION
|
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1.
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||
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1A.
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||
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2.
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||
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3.
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||
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4.
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||
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5.
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||
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6.
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||
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||
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Three Months
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Nine Months
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||||||||||||
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For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Revenue
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Costs of revenue
|
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||||
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Gross profit
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||||
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General and administrative expenses
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||||
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Sales and marketing expenses
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||||
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Research and development expenses
|
|
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||||
|
Gain on sale of long-lived assets
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Asbestos-related benefit, net
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Operating income
|
|
|
|
|
|
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||||
|
Interest and non-operating expenses, net
|
|
|
|
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|
||||
|
Income from continuing operations before income tax expense
|
|
|
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|
|
||||
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss from discontinued operations, including tax benefit of $0.0, $0.0, $0.0 and $0.2, respectively
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Less: Income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||
|
Net income attributable to ITT Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Amounts attributable to ITT Inc.:
|
|
|
|
|
|
|
|
||||||||
|
Income from continuing operations, net of tax
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Loss from discontinued operations, net of tax
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||
|
Net income attributable to ITT Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Earnings per share attributable to ITT Inc.:
|
|
|
|
|
|
|
|
||||||||
|
Basic:
|
|
|
|
|
|
|
|
||||||||
|
Continuing operations
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
|
Continuing operations
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Weighted average common shares – basic
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares – diluted
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash dividends declared per common share
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Net income
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
|
Net foreign currency translation adjustment
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Net change in postretirement benefit plans, net of tax impacts of $1.2, $2.1, $2.0 and $3.0, respectively
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other comprehensive (loss) income
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||
|
Comprehensive income attributable to ITT Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Disclosure of reclassification adjustments to postretirement benefit plans
|
|
|
|
|
|
|
|
||||||||
|
Reclassification adjustments (see Note 15):
|
|
|
|
|
|
|
|
||||||||
|
Amortization of prior service benefit, net of tax expense of $(0.3), $(0.3), $(0.8) and $(1.3), respectively
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Amortization of net actuarial loss, net of tax benefits of $0.6, $1.1, $1.9 and $3.0, respectively
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss from plan settlement or curtailment, net of tax benefit of $0.3, $1.3, $0.3 and $1.3, respectively
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Other adjustments:
|
|
|
|
|
|
|
|
||||||||
|
Net actuarial gain, net of tax expense of $0.6, $0.0, $0.6 and $0.0, respectively
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net change in postretirement benefit plans, net of tax
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
Assets
|
|
|
|
||||
|
Current assets:
|
|
|
|
||||
|
Cash and cash equivalents
|
$
|
|
|
|
$
|
|
|
|
Receivables, net
|
|
|
|
|
|
||
|
Inventories, net
|
|
|
|
|
|
||
|
Other current assets
|
|
|
|
|
|
||
|
Total current assets
|
|
|
|
|
|
||
|
Plant, property and equipment, net
|
|
|
|
|
|
||
|
Goodwill
|
|
|
|
|
|
||
|
Other intangible assets, net
|
|
|
|
|
|
||
|
Asbestos-related assets
|
|
|
|
|
|
||
|
Deferred income taxes
|
|
|
|
|
|
||
|
Other non-current assets
|
|
|
|
|
|
||
|
Total non-current assets
|
|
|
|
|
|
||
|
Total assets
|
$
|
|
|
|
$
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
|
Current liabilities:
|
|
|
|
||||
|
Short-term loans and current maturities of long-term debt
|
$
|
|
|
|
$
|
|
|
|
Accounts payable
|
|
|
|
|
|
||
|
Accrued liabilities
|
|
|
|
|
|
||
|
Total current liabilities
|
|
|
|
|
|
||
|
Asbestos-related liabilities
|
|
|
|
|
|
||
|
Postretirement benefits
|
|
|
|
|
|
||
|
Other non-current liabilities
|
|
|
|
|
|
||
|
Total non-current liabilities
|
|
|
|
|
|
||
|
Total liabilities
|
|
|
|
|
|
||
|
Shareholders’ equity:
|
|
|
|
||||
|
Common stock:
|
|
|
|
||||
|
Authorized – 250.0 shares, $1 par value per share
|
|
|
|
||||
|
Issued and outstanding – 87.6 shares and 88.2 shares, respectively
|
|
|
|
|
|
||
|
Retained earnings
|
|
|
|
|
|
||
|
Total accumulated other comprehensive loss
|
(
|
)
|
|
(
|
)
|
||
|
Total ITT Inc. shareholders’ equity
|
|
|
|
|
|
||
|
Noncontrolling interests
|
|
|
|
|
|
||
|
Total shareholders’ equity
|
|
|
|
|
|
||
|
Total liabilities and shareholders’ equity
|
$
|
|
|
|
$
|
|
|
|
For the Nine Months Ended September 30
|
2018
|
|
2017
|
||||
|
Operating Activities
|
|
|
|
||||
|
Net income
|
$
|
|
|
|
$
|
|
|
|
Less: Loss from discontinued operations
|
|
|
|
(
|
)
|
||
|
Less: Income (loss) attributable to noncontrolling interests
|
|
|
|
(
|
)
|
||
|
Income from continuing operations attributable to ITT Inc.
|
|
|
|
|
|
||
|
Adjustments to income from continuing operations:
|
|
|
|
||||
|
Depreciation and amortization
|
|
|
|
|
|
||
|
Equity-based compensation
|
|
|
|
|
|
||
|
Gain on sale of long-lived assets
|
(
|
)
|
|
(
|
)
|
||
|
Asbestos-related benefit, net
|
(
|
)
|
|
(
|
)
|
||
|
Asbestos-related payments, net
|
(
|
)
|
|
(
|
)
|
||
|
Changes in assets and liabilities:
|
|
|
|
||||
|
Change in receivables
|
(
|
)
|
|
(
|
)
|
||
|
Change in inventories
|
(
|
)
|
|
(
|
)
|
||
|
Change in accounts payable
|
(
|
)
|
|
|
|
||
|
Change in accrued expenses
|
(
|
)
|
|
|
|
||
|
Change in accrued and deferred income taxes
|
|
|
|
|
|
||
|
Other, net
|
|
|
|
(
|
)
|
||
|
Net Cash – Operating activities
|
|
|
|
|
|
||
|
Investing Activities
|
|
|
|
||||
|
Capital expenditures
|
(
|
)
|
|
(
|
)
|
||
|
Proceeds from sale of long-lived assets
|
|
|
|
|
|
||
|
Acquisitions, net of cash acquired
|
|
|
|
(
|
)
|
||
|
Other, net
|
|
|
|
|
|
||
|
Net Cash – Investing activities
|
(
|
)
|
|
(
|
)
|
||
|
Financing Activities
|
|
|
|
||||
|
Commercial paper, net repayments
|
(
|
)
|
|
|
|
||
|
Short-term revolving loans, borrowings
|
|
|
|
|
|
||
|
Short-term revolving loans, repayments
|
(
|
)
|
|
(
|
)
|
||
|
Long-term debt, issued
|
|
|
|
|
|
||
|
Long-term debt, repayments
|
(
|
)
|
|
(
|
)
|
||
|
Repurchase of common stock
|
(
|
)
|
|
(
|
)
|
||
|
Proceeds from issuance of common stock
|
|
|
|
|
|
||
|
Dividends paid
|
(
|
)
|
|
(
|
)
|
||
|
Other, net
|
(
|
)
|
|
|
|
||
|
Net Cash – Financing activities
|
(
|
)
|
|
(
|
)
|
||
|
Exchange rate effects on cash and cash equivalents
|
(
|
)
|
|
|
|
||
|
Net Cash – Operating activities of discontinued operations
|
(
|
)
|
|
(
|
)
|
||
|
Net change in cash and cash equivalents
|
|
|
|
(
|
)
|
||
|
Cash and cash equivalents – beginning of year (includes restricted cash of $1.2 and $1.2, respectively)
|
|
|
|
|
|
||
|
Cash and cash equivalents – end of period (includes restricted cash of $1.2 and $1.2, respectively)
|
$
|
|
|
|
$
|
|
|
|
Supplemental Disclosures of Cash Flow Information
|
|
|
|
||||
|
Cash paid during the year for:
|
|
|
|
||||
|
Interest
|
$
|
|
|
|
$
|
|
|
|
Income taxes, net of refunds received
|
$
|
|
|
|
$
|
|
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Common Stock
|
|
|
|
|
|
|
|
||||||||
|
Common stock, beginning balance
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Activity from stock incentive plans
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Share repurchases
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||
|
Common stock, ending balance
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Retained earnings, beginning balance
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cumulative adjustment for accounting change
(See Note 2)
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Net income attributable to ITT Inc.
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Dividends declared
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Activity from stock incentive plans
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Share repurchases
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Retained earnings, ending balance
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Postretirement benefit plans, beginning balance
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Net change in postretirement benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Postretirement benefit plans, ending balance
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Cumulative translation adjustment, beginning balance
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Net cumulative translation adjustment
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Cumulative translation adjustment, ending balance
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Total accumulated other comprehensive loss
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Noncontrolling interests, beginning balance
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||
|
Other
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||
|
Noncontrolling interests, ending balance
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total shareholders’ equity, beginning balance
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net change in common stock
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||
|
Net change in retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net change in accumulated other comprehensive loss
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Net change in noncontrolling interests
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||
|
Total shareholders’ equity, ending balance
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Balance as of December 31, 2017
|
Cumulative Effect of Adjustments
|
Balance as of January 1, 2018
|
||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
||||||
|
Receivables, net
|
|
$
|
|
|
|
|
$
|
(
|
)
|
|
|
$
|
|
|
|
|
Inventories, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Other current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
|
Accrued liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Other non-current liabilities
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||
|
Equity:
|
|
|
|
|
|
|
|
|
|
||||||
|
Retained earnings
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||
|
|
Three Months
|
|
Nine Months
|
||||||||||||||||||||
|
As of or for the Periods Ended September 30, 2018
|
As Reported
|
Amounts under previous standard
|
Effect of Change
|
|
As Reported
|
Amounts under previous standard
|
Effect of Change
|
||||||||||||||||
|
Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenue
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Costs of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Receivables, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Inventories, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||||||
|
Other current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||||||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Accrued liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
||||||||
|
Other non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Retained earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
For the Three Months Ended September 30, 2017
|
Previously Reported
|
Effect of Change
|
Restated
|
||||||||||||
|
Costs of revenue
|
|
$
|
|
|
|
|
$
|
(
|
)
|
|
|
$
|
|
|
|
|
General and administrative expenses
(a)
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||
|
Research and development expenses
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest and non-operating expenses, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
For the Nine Months Ended September 30, 2017
|
Previously Reported
|
Effect of Change
|
Restated
|
||||||||||||
|
Costs of revenue
|
|
$
|
|
|
|
|
$
|
(
|
)
|
|
|
$
|
|
|
|
|
General and administrative expenses
(a)
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||
|
Sales and marketing expenses
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||
|
Research and development expenses
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Interest and non-operating expenses, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
Revenue
|
|
Operating Income
(a)
|
|
Operating Margin
|
||||||||||||||||
|
For the Three Months Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
|
Industrial Process
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
%
|
|
|
%
|
|
Motion Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
||||
|
Connect & Control Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
||||
|
Total segment results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
||||
|
Asbestos-related benefit, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gain on sale of long-lived assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Eliminations / Other corporate costs
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
||||
|
Total Eliminations / Corporate and Other costs
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
%
|
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Revenue
|
|
Operating Income
(a)
|
|
Operating Margin
|
||||||||||||||||
|
For the Nine Months Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
|
Industrial Process
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
%
|
|
|
%
|
|
Motion Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
||||
|
Connect & Control Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
||||
|
Total segment results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
|
|
|
%
|
||||
|
Asbestos-related benefit, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gain on sale of long-lived assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Eliminations / Other corporate costs
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
||||
|
Total Eliminations / Corporate and Other costs
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
%
|
|
|
%
|
|
|
|
|
|
Total Assets
|
|
Capital
Expenditures
|
|
Depreciation &
Amortization
|
||||||||||||||||||
|
For the Nine Months Ended September 30
|
2018
|
|
2017
(b)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
Industrial Process
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Motion Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Connect & Control Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Corporate and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2018
|
Industrial Process
|
Motion Technologies
|
Connect & Control Technologies
|
Eliminations
|
Total
|
||||||||||||||||||||
|
Industrial pumps
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
Oil & gas pumps and components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Vehicle components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Aerospace & defense components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rail components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Industrial components and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||||
|
Total
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
(
|
)
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
For the Nine Months Ended September 30, 2018
|
Industrial Process
|
Motion Technologies
|
Connect & Control Technologies
|
Eliminations
|
Total
|
||||||||||||||||||||
|
Industrial pumps
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
Oil & gas pumps and components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Vehicle components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||||
|
Aerospace & defense components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rail components
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Industrial components and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|||||
|
Total
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
$
|
(
|
)
|
|
|
$
|
|
|
|
|
|
September 30, 2018
|
January 1,
2018
|
Change
|
|||||||||||
|
Current contract assets
|
|
$
|
|
|
|
|
$
|
|
|
|
|
(
|
)%
|
|
|
Noncurrent contract assets
|
|
|
|
|
|
|
|
|
|
|
%
|
|
||
|
Current contract liabilities
|
|
(
|
)
|
|
|
(
|
)
|
|
|
|
%
|
|
||
|
Net contract liabilities
|
|
$
|
(
|
)
|
|
|
$
|
(
|
)
|
|
|
|
%
|
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Severance costs
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Asset write-offs
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other restructuring costs
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total restructuring costs
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
By segment:
|
|
|
|
|
|
|
|
||||||||
|
Industrial Process
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Motion Technologies
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Connect & Control Technologies
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Corporate and Other
|
|
|
|
(
|
)
|
|
|
|
|
|
|
||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
||||
|
Restructuring accruals - beginning balance
|
$
|
|
|
|
$
|
|
|
|
Restructuring costs
|
|
|
|
|
|
||
|
Cash payments
|
(
|
)
|
|
(
|
)
|
||
|
Asset write-offs
|
|
|
|
(
|
)
|
||
|
Foreign exchange translation and other
|
|
|
|
|
|
||
|
Restructuring accrual - ending balance
|
$
|
|
|
|
$
|
|
|
|
By accrual type:
|
|
|
|
||||
|
Severance accrual
|
$
|
|
|
|
$
|
|
|
|
Facility carrying and other costs accrual
|
|
|
|
|
|
||
|
|
Three Months
|
|
Nine Months
|
||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
|
Basic weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Dilutive impact of outstanding equity awards
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
|
Trade accounts receivable (See Note 2)
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Notes receivable
|
|
|
|
|
|
|
|
|
|
||
|
Other
|
|
|
|
|
|
|
|
|
|
||
|
Receivables, gross
|
|
|
|
|
|
|
|
|
|
||
|
Less: Allowance for doubtful accounts
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||
|
Receivables, net
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
|
Finished goods
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Work in process
|
|
|
|
|
|
|
|
|
|
||
|
Raw materials
|
|
|
|
|
|
|
|
|
|
||
|
Inventoried costs related to long-term contracts
|
|
|
|
|
|
|
|
|
|
||
|
Total inventory before progress payments
|
|
|
|
|
|
|
|
|
|
||
|
Less: Progress payments (see Note 2)
|
|
|
|
|
|
|
(
|
)
|
|
||
|
Inventories, net
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
|
Asbestos-related assets
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Advance payments and other prepaid expenses
|
|
|
|
|
|
|
|
|
|
||
|
Short-term contract asset (see Note 2)
|
|
|
|
|
|
|
|
|
|
||
|
Prepaid income taxes
|
|
|
|
|
|
|
|
|
|
||
|
Other
|
|
|
|
|
|
|
|
|
|
||
|
Other current assets
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Other employee benefit-related assets
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Capitalized software costs
|
|
|
|
|
|
|
|
|
|
||
|
Environmental-related assets
|
|
|
|
|
|
|
|
|
|
||
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
||
|
Other
|
|
|
|
|
|
|
|
|
|
||
|
Other non-current assets
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
|
Land and improvements
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Machinery and equipment
|
|
|
|
|
|
|
|
|
|
||
|
Buildings and improvements
|
|
|
|
|
|
|
|
|
|
||
|
Furniture, fixtures and office equipment
|
|
|
|
|
|
|
|
|
|
||
|
Construction work in progress
|
|
|
|
|
|
|
|
|
|
||
|
Other
|
|
|
|
|
|
|
|
|
|
||
|
Plant, property and equipment, gross
|
|
|
|
|
|
|
|
|
|
||
|
Less: Accumulated depreciation
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||
|
Plant, property and equipment, net
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
Industrial
Process
|
|
Motion
Technologies
|
|
Connect & Control
Technologies
|
|
Total
|
||||||||||||||
|
Goodwill - December 31, 2017
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
Adjustments to purchase price allocations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Foreign exchange translation
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
(
|
)
|
||||
|
Goodwill - September 30, 2018
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||||
|
|
Gross
Carrying
Amount
|
|
Accumulated Amortization
|
|
Net Intangibles
|
|
Gross
Carrying
Amount
|
|
Accumulated Amortization
|
|
Net Intangibles
|
||||||||||||||||||||||||
|
Customer relationships
|
|
$
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
$
|
|
|
|
|
Proprietary technology
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
||||||
|
Patents and other
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
||||||
|
Finite-lived intangible total
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
||||||
|
Indefinite-lived intangibles
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
||||||
|
Other intangible assets
|
|
$
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
(
|
)
|
|
|
|
$
|
|
|
|
|
|
September 30,
2018 |
December 31,
2017 |
||||||||
|
Compensation and other employee-related benefits
|
|
$
|
|
|
|
|
$
|
|
|
|
|
Contract liabilities and other customer-related liabilities (see Note 2)
|
|
|
|
|
|
|
|
|
||
|
Asbestos-related liabilities
|
|
|
|
|
|
|
|
|
||
|
Accrued income taxes and other tax-related liabilities
|
|
|
|
|
|
|
|
|
||
|
Environmental liabilities and other legal matters
|
|
|
|
|
|
|
|
|
||
|
Accrued warranty costs
|
|
|
|
|
|
|
|
|
||
|
Other accrued liabilities
|
|
|
|
|
|
|
|
|
||
|
Accrued liabilities
|
|
$
|
|
|
|
|
$
|
|
|
|
|
Environmental liabilities
|
|
$
|
|
|
|
|
$
|
|
|
|
|
Compensation and other employee-related benefits
|
|
|
|
|
|
|
|
|
||
|
Deferred income taxes and other tax-related accruals
|
|
|
|
|
|
|
|
|
||
|
Other
|
|
|
|
|
|
|
|
|
||
|
Other non-current liabilities
|
|
$
|
|
|
|
|
$
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||||||
|
Commercial paper
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Current maturities of long-term debt and capital leases
|
|
|
|
|
|
|
|
|
|
||
|
Short-term loans and current maturities of long-term debt
|
|
|
|
|
|
|
|
|
|
||
|
Long-term debt and capital leases
|
|
|
|
|
|
|
|
|
|
||
|
Total debt and capital leases
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||||
|
For the Three Months Ended September 30
|
Pension
|
|
Other
Benefits
|
|
Total
|
|
Pension
|
|
Other
Benefits
|
|
Total
|
||||||||||||||||||||||||
|
Service cost
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Interest cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Expected return on plan assets
(a)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||||||
|
Amortization of prior service cost (benefit)
|
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||||||
|
Amortization of net actuarial loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Loss from settlement or curtailment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total net periodic benefit cost
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||||
|
For the Nine Months Ended September 30
|
Pension
|
|
Other
Benefits |
|
Total
|
|
Pension
|
|
Other
Benefits |
|
Total
|
||||||||||||||||||||||||
|
Service cost
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
Interest cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Expected return on plan assets
(a)
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||||||
|
Amortization of prior service cost (benefit)
|
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||||||
|
Amortization of net actuarial loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Loss from settlement or curtailment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total net periodic benefit cost
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Equity-based awards
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Liability-based awards
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total share-based compensation expense
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
# of Awards Granted
|
Weighted Average Grant Date Fair Value Per Share
|
||||
|
Restricted stock units (RSUs)
|
|
|
$
|
|
|
|
|
Performance stock units (PSUs)
|
|
|
$
|
|
|
|
|
For the Nine Months Ended September 30 (in thousands)
|
2018
|
|
|
Pending claims – Beginning
|
|
|
|
New claims
|
|
|
|
Settlements
|
(
|
)
|
|
Dismissals
|
(
|
)
|
|
Pending claims – Ending
|
|
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Asbestos provision
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net asbestos remeasurement cost (benefit)
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||
|
Insurance settlement agreement
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Asbestos-related benefit, net
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
For the Nine Months Ended September 30
|
Liability
|
|
Asset
|
|
Net
|
|
Liability
|
|
Asset
|
|
Net
|
||||||||||||
|
Beginning balance
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Asbestos provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Asbestos remeasurement
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
|
Insurance settlement agreement
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||
|
Net cash activity
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||||
|
Ending balance
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Current portion
|
$
|
|
|
|
$
|
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
||||
|
Noncurrent portion
|
$
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|||
|
For the Nine Months Ended September 30
|
2018
|
|
2017
|
||||
|
Environmental liability - beginning balance
|
$
|
|
|
|
$
|
|
|
|
Change in estimates for pre-existing accruals
|
|
|
|
|
|
||
|
Accruals added during the period for new matters
|
|
|
|
|
|
||
|
Payments
|
(
|
)
|
|
(
|
)
|
||
|
Foreign currency
|
|
|
|
|
|
||
|
Environmental liability - ending balance
|
$
|
|
|
|
$
|
|
|
|
Cash
|
$
|
|
|
|
Receivables
|
|
|
|
|
Inventory
|
|
|
|
|
Plant, property and equipment
|
|
|
|
|
Goodwill
|
|
|
|
|
Other intangible assets
|
|
|
|
|
Other assets
|
|
|
|
|
Accounts payable and accrued liabilities
|
(
|
)
|
|
|
Postretirement liabilities
|
(
|
)
|
|
|
Other liabilities
|
(
|
)
|
|
|
Net assets acquired
|
$
|
|
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||||
|
For the Periods Ended September 30
|
2018
|
2017
|
Change
|
|
2018
|
2017
|
Change
|
||||||||||
|
Revenue
|
$
|
680.6
|
|
$
|
645.0
|
|
5.5
|
%
|
|
$
|
2,066.7
|
|
$
|
1,901.7
|
|
8.7
|
%
|
|
Gross profit
|
226.5
|
|
203.8
|
|
11.1
|
%
|
|
676.7
|
|
611.9
|
|
10.6
|
%
|
||||
|
Gross margin
|
33.3
|
%
|
31.6
|
%
|
170
|
bp
|
|
32.7
|
%
|
32.2
|
%
|
50
|
bp
|
||||
|
Operating expenses
|
88.7
|
|
70.7
|
|
25.5
|
%
|
|
348.0
|
|
362.7
|
|
(4.1
|
%)
|
||||
|
Expense to revenue ratio
|
13.0
|
%
|
11.0
|
%
|
200
|
bp
|
|
16.8
|
%
|
19.1
|
%
|
(230
|
)bp
|
||||
|
Operating income
|
137.8
|
|
133.1
|
|
3.5
|
%
|
|
328.7
|
|
249.2
|
|
31.9
|
%
|
||||
|
Operating margin
|
20.2
|
%
|
20.6
|
%
|
(40
|
)bp
|
|
15.9
|
%
|
13.1
|
%
|
280
|
bp
|
||||
|
Interest and non-operating expenses, net
|
0.7
|
|
5.5
|
|
(87.3
|
%)
|
|
4.0
|
|
8.2
|
|
(51.2
|
%)
|
||||
|
Income tax expense
|
25.9
|
|
40.6
|
|
(36.2
|
%)
|
|
42.4
|
|
60.3
|
|
(29.7
|
%)
|
||||
|
Effective tax rate
|
18.9
|
%
|
31.8
|
%
|
(1,290
|
)bp
|
|
13.1
|
%
|
25.0
|
%
|
(1,190
|
)bp
|
||||
|
Income from continuing operations attributable to ITT Inc.
|
111.0
|
|
87.0
|
|
27.6
|
%
|
|
281.8
|
|
181.0
|
|
55.7
|
%
|
||||
|
(Loss) from discontinued operations, net of tax
|
(0.1
|
)
|
(0.1
|
)
|
—
|
%
|
|
—
|
|
(0.3
|
)
|
100.0
|
%
|
||||
|
Net income attributable to ITT Inc.
|
110.9
|
|
86.9
|
|
27.6
|
%
|
|
281.8
|
|
180.7
|
|
55.9
|
%
|
||||
|
•
|
Revenue of
$680.6
increased
$35.6
, or
5.5%
, driven by gains across all major end-markets. In the transportation end-markets, revenue grew on continued strength in OEM automotive brake pads, as well as solid growth in the aerospace and defense market. Revenue growth in the industrial end-market was driven by pump equipment in the chemical and mining markets. Growth in the oil and gas end-market was due to connector strength. Organic revenue increased
6.6%
compared to the prior year.
|
|
•
|
Orders of
$722.1
reflect a year-over-year increase of
$63.5
, or
9.6%
, due to projects in the petrochemical and general industrial markets, as well as broad-based connector growth across all major end-markets, partially offset by timing of aerospace component orders. In addition, continued share gains in China and North American OEM automotive brake pads and European aftermarket contributed to the increase. Organic orders increased
10.8%
compared to the prior year.
|
|
•
|
Operating income of
$137.8
increased
$4.7
, or
3.5%
, due to an increase in segment operating income of
$26.7
, or
32.8%
and a net gain of $38 related to the sale of a former operating location, partially offset by a decrease in the net asbestos-related benefit of $58.5 from our annual remeasurement. The increase in segment operating income was driven by sales volume leverage at all segments and productivity improvements, partially offset by higher commodity costs and growth investments. As a result, we were able to deliver a segment operating margin of
15.9%
, which is a
330
basis point improvement compared to the previous year. Adjusted segment operating income increased
$15.7
, or
17.2%
.
|
|
•
|
Income from continuing operations of
$1.25
per diluted share, increased
$0.27
over the prior year due to higher segment operating income and favorable impacts from a lower tax rate. Adjusted income from continuing operations was
$0.82
per diluted share, reflecting a
$0.16
, or
24.2%
, increase compared to the prior year.
|
|
For the Three Months Ended September 30
|
2018
|
|
2017
|
|
Change
|
|
Organic Revenue Growth
(a)
|
||||||
|
Industrial Process
|
$
|
205.0
|
|
|
$
|
196.2
|
|
|
4.5
|
%
|
|
5.7
|
%
|
|
Motion Technologies
|
310.3
|
|
|
300.1
|
|
|
3.4
|
%
|
|
4.8
|
%
|
||
|
Connect & Control Technologies
|
166.0
|
|
|
149.4
|
|
|
11.1
|
%
|
|
11.4
|
%
|
||
|
Eliminations
|
(0.7
|
)
|
|
(0.7
|
)
|
|
—
|
%
|
|
—
|
|
||
|
Revenue
|
$
|
680.6
|
|
|
$
|
645.0
|
|
|
5.5
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||
|
For the Nine Months Ended September 30
|
2018
|
|
2017
|
|
Change
|
|
Organic Revenue Growth
(a)
|
||||||
|
Industrial Process
|
$
|
598.0
|
|
|
$
|
574.6
|
|
|
4.1
|
%
|
|
3.6
|
%
|
|
Motion Technologies
|
982.8
|
|
|
877.5
|
|
|
12.0
|
%
|
|
5.4
|
%
|
||
|
Connect & Control Technologies
|
488.0
|
|
|
452.3
|
|
|
7.9
|
%
|
|
6.6
|
%
|
||
|
Eliminations
|
(2.1
|
)
|
|
(2.7
|
)
|
|
(22.2
|
)%
|
|
—
|
|
||
|
Revenue
|
$
|
2,066.7
|
|
|
$
|
1,901.7
|
|
|
8.7
|
%
|
|
5.2
|
%
|
|
(a)
|
See the section titled “Key Performance Indicators and Non-GAAP Measures” for a definition and reconciliation of organic revenue.
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
General and administrative expenses
|
$
|
68.0
|
|
|
$
|
70.1
|
|
|
(3.0
|
)%
|
|
$
|
196.6
|
|
|
$
|
200.4
|
|
|
(1.9
|
)%
|
|
Sales and marketing expenses
|
40.8
|
|
|
41.3
|
|
|
(1.2
|
)%
|
|
127.7
|
|
|
128.2
|
|
|
(0.4
|
)%
|
||||
|
Research and development expenses
|
24.2
|
|
|
23.0
|
|
|
5.2
|
%
|
|
74.7
|
|
|
68.0
|
|
|
9.9
|
%
|
||||
|
Gain on sale of long-lived assets
|
(40.0
|
)
|
|
(0.9
|
)
|
|
**
|
|
(40.5
|
)
|
|
(0.9
|
)
|
|
**
|
||||||
|
Asbestos-related benefit, net
|
(4.3
|
)
|
|
(62.8
|
)
|
|
(93.2
|
)%
|
|
(10.5
|
)
|
|
(33.0
|
)
|
|
(68.2
|
)%
|
||||
|
Total operating expenses
|
$
|
88.7
|
|
|
$
|
70.7
|
|
|
25.5
|
%
|
|
$
|
348.0
|
|
|
$
|
362.7
|
|
|
(4.1
|
)%
|
|
Total Operating Expenses By Segment:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Industrial Process
|
$
|
44.2
|
|
|
$
|
43.6
|
|
|
1.4
|
%
|
|
$
|
127.4
|
|
|
$
|
130.5
|
|
|
(2.4
|
)%
|
|
Motion Technologies
|
40.6
|
|
|
43.8
|
|
|
(7.3
|
)%
|
|
131.9
|
|
|
125.5
|
|
|
5.1
|
%
|
||||
|
Connect & Control Technologies
|
33.5
|
|
|
34.9
|
|
|
(4.0
|
)%
|
|
101.1
|
|
|
112.9
|
|
|
(10.5
|
)%
|
||||
|
Corporate & Other
|
(29.6
|
)
|
|
(51.6
|
)
|
|
(42.6
|
)%
|
|
(12.4
|
)
|
|
(6.2
|
)
|
|
100.0
|
%
|
||||
|
|
Three Months
|
|
Nine Months
|
||||||||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
|
Industrial Process
|
$
|
23.7
|
|
|
$
|
14.3
|
|
|
65.7
|
%
|
|
$
|
64.0
|
|
|
$
|
37.7
|
|
|
69.8
|
%
|
|
Motion Technologies
|
58.5
|
|
|
49.2
|
|
|
18.9
|
%
|
|
175.9
|
|
|
156.3
|
|
|
12.5
|
%
|
||||
|
Connect & Control Technologies
|
26.0
|
|
|
18.0
|
|
|
44.4
|
%
|
|
76.3
|
|
|
48.9
|
|
|
56.0
|
%
|
||||
|
Segment operating income
|
108.2
|
|
|
81.5
|
|
|
32.8
|
%
|
|
316.2
|
|
|
242.9
|
|
|
30.2
|
%
|
||||
|
Asbestos-related benefit, net
|
4.3
|
|
|
62.8
|
|
|
(93.2
|
)%
|
|
10.5
|
|
|
33.0
|
|
|
(68.2
|
)%
|
||||
|
Gain on sale of long-lived assets
|
38.0
|
|
|
—
|
|
|
100.0
|
%
|
|
38.0
|
|
|
—
|
|
|
100.0
|
%
|
||||
|
Other corporate costs
|
(12.7
|
)
|
|
(11.2
|
)
|
|
(13.4
|
)%
|
|
(36.0
|
)
|
|
(26.7
|
)
|
|
(34.8
|
)%
|
||||
|
Total corporate and asbestos-related benefit
|
29.6
|
|
|
51.6
|
|
|
(42.6
|
)%
|
|
12.5
|
|
|
6.3
|
|
|
98.4
|
%
|
||||
|
Total operating income
|
$
|
137.8
|
|
|
$
|
133.1
|
|
|
3.5
|
%
|
|
$
|
328.7
|
|
|
$
|
249.2
|
|
|
31.9
|
%
|
|
Operating margin:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Industrial Process
|
11.6
|
%
|
|
7.3
|
%
|
|
430
|
bp
|
|
10.7
|
%
|
|
6.6
|
%
|
|
410
|
bp
|
||||
|
Motion Technologies
|
18.9
|
%
|
|
16.4
|
%
|
|
250
|
bp
|
|
17.9
|
%
|
|
17.8
|
%
|
|
10
|
bp
|
||||
|
Connect & Control Technologies
|
15.7
|
%
|
|
12.0
|
%
|
|
370
|
bp
|
|
15.6
|
%
|
|
10.8
|
%
|
|
480
|
bp
|
||||
|
Segment operating margin
|
15.9
|
%
|
|
12.6
|
%
|
|
330
|
bp
|
|
15.3
|
%
|
|
12.8
|
%
|
|
250
|
bp
|
||||
|
Consolidated operating margin
|
20.2
|
%
|
|
20.6
|
%
|
|
(40
|
)bp
|
|
15.9
|
%
|
|
13.1
|
%
|
|
280
|
bp
|
||||
|
For the Nine Months Ended September 30
|
2018
|
|
2017
|
||||
|
Operating activities
|
$
|
246.6
|
|
|
$
|
178.3
|
|
|
Investing activities
|
(21.1
|
)
|
|
(189.3
|
)
|
||
|
Financing activities
|
(76.2
|
)
|
|
(75.3
|
)
|
||
|
Foreign exchange
|
(11.4
|
)
|
|
22.4
|
|
||
|
Total net cash flow provided by (used in) continuing operations
|
137.9
|
|
|
(63.9
|
)
|
||
|
Net cash used in discontinued operations
|
(1.9
|
)
|
|
(1.2
|
)
|
||
|
Net change in cash and cash equivalents
|
$
|
136.0
|
|
|
$
|
(65.1
|
)
|
|
n
|
”organic revenue” and “organic orders” are defined as revenue and orders, excluding the impacts of foreign currency fluctuations, acquisitions, and divestitures. Divestitures include sales of portions of our business that did not meet the criteria for presentation as a discontinued operation. The period-over-period change resulting from foreign currency fluctuations is estimated using a fixed exchange rate for both the current and prior periods. Management believes that reporting organic revenue and organic orders provides useful information to investors by helping identify underlying trends in our business and facilitating easier comparisons of our revenue performance with prior and future periods and to our peers. Reconciliations of organic revenue for the
three and nine months ended
September 30, 2018
are provided below.
|
|
Three Months Ended September 30
|
Industrial
Process
|
Motion
Technologies
|
Connect & Control
Technologies
|
Eliminations
|
Total
ITT
|
|||||||||||||||||||
|
2018 Revenue
|
|
$
|
205.0
|
|
|
|
$
|
310.3
|
|
|
|
$
|
166.0
|
|
|
|
$
|
(0.7
|
)
|
|
|
$
|
680.6
|
|
|
Foreign currency translation
|
|
2.3
|
|
|
|
4.1
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
6.8
|
|
|||||
|
2018 Organic revenue
|
|
$
|
207.3
|
|
|
|
$
|
314.4
|
|
|
|
$
|
166.4
|
|
|
|
$
|
(0.7
|
)
|
|
|
$
|
687.4
|
|
|
2017 Revenue
|
|
$
|
196.2
|
|
|
|
$
|
300.1
|
|
|
|
$
|
149.4
|
|
|
|
$
|
(0.7
|
)
|
|
|
$
|
645.0
|
|
|
Organic growth
|
|
11.1
|
|
|
|
14.3
|
|
|
|
17.0
|
|
|
|
—
|
|
|
|
42.4
|
|
|||||
|
Percentage change
|
|
5.7
|
%
|
|
|
4.8
|
%
|
|
|
11.4
|
%
|
|
|
|
|
|
6.6
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended September 30
|
||||||||||||||||||||||||
|
2018 Revenue
|
|
$
|
598.0
|
|
|
|
$
|
982.8
|
|
|
|
$
|
488.0
|
|
|
|
$
|
(2.1
|
)
|
|
|
$
|
2,066.7
|
|
|
(Acquisitions)/divestitures, net
|
|
—
|
|
|
|
(5.5
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(5.5
|
)
|
|||||
|
Foreign currency translation
|
|
(2.5
|
)
|
|
|
(52.1
|
)
|
|
|
(5.9
|
)
|
|
|
0.1
|
|
|
|
(60.4
|
)
|
|||||
|
2018 Organic revenue
|
|
$
|
595.5
|
|
|
|
$
|
925.2
|
|
|
|
$
|
482.1
|
|
|
|
$
|
(2.0
|
)
|
|
|
$
|
2,000.8
|
|
|
2017 Revenue
|
|
$
|
574.6
|
|
|
|
$
|
877.5
|
|
|
|
$
|
452.3
|
|
|
|
$
|
(2.7
|
)
|
|
|
$
|
1,901.7
|
|
|
Organic growth
|
|
20.9
|
|
|
|
47.7
|
|
|
|
29.8
|
|
|
|
0.7
|
|
|
|
99.1
|
|
|||||
|
Percentage change
|
|
3.6
|
%
|
|
|
5.4
|
%
|
|
|
6.6
|
%
|
|
|
|
|
|
5.2
|
%
|
||||||
|
Three Months Ended September 30
|
Industrial
Process
|
Motion
Technologies
|
Connect & Control
Technologies |
Eliminations
|
Total
ITT
|
|||||||||||||||||||
|
2018 Orders
|
|
$
|
241.7
|
|
|
|
$
|
314.2
|
|
|
|
$
|
166.8
|
|
|
|
$
|
(0.6
|
)
|
|
|
$
|
722.1
|
|
|
Foreign currency translation
|
|
2.8
|
|
|
|
4.2
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
7.3
|
|
|||||
|
2018 Organic orders
|
|
$
|
244.5
|
|
|
|
$
|
318.4
|
|
|
|
$
|
167.1
|
|
|
|
$
|
(0.6
|
)
|
|
|
$
|
729.4
|
|
|
2017 Orders
|
|
$
|
193.3
|
|
|
|
$
|
323.7
|
|
|
|
$
|
142.5
|
|
|
|
$
|
(0.9
|
)
|
|
|
$
|
658.6
|
|
|
Organic growth
|
|
51.2
|
|
|
|
(5.3
|
)
|
|
|
24.6
|
|
|
|
0.3
|
|
|
|
70.8
|
|
|||||
|
Percentage change
|
|
26.5
|
%
|
|
|
(1.6
|
)%
|
|
|
17.3
|
%
|
|
|
|
|
|
10.8
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended September 30
|
||||||||||||||||||||||||
|
2018 Orders
|
|
$
|
689.2
|
|
|
|
$
|
1,011.7
|
|
|
|
$
|
525.8
|
|
|
|
$
|
(1.6
|
)
|
|
|
$
|
2,225.1
|
|
|
(Acquisitions)/divestitures, net
|
|
—
|
|
|
|
(17.7
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(17.7
|
)
|
|||||
|
Foreign currency translation
|
|
(2.4
|
)
|
|
|
(53.6
|
)
|
|
|
(6.0
|
)
|
|
|
—
|
|
|
|
(62.0
|
)
|
|||||
|
2018 Organic orders
|
|
$
|
686.8
|
|
|
|
$
|
940.4
|
|
|
|
$
|
519.8
|
|
|
|
$
|
(1.6
|
)
|
|
|
$
|
2,145.4
|
|
|
2017 Orders
|
|
$
|
605.5
|
|
|
|
$
|
899.9
|
|
|
|
$
|
452.7
|
|
|
|
$
|
(2.6
|
)
|
|
|
$
|
1,955.5
|
|
|
Organic growth
|
|
81.3
|
|
|
|
40.5
|
|
|
|
67.1
|
|
|
|
1.0
|
|
|
|
189.9
|
|
|||||
|
Percentage change
|
|
13.4
|
%
|
|
|
4.5
|
%
|
|
|
14.8
|
%
|
|
|
|
|
|
9.7
|
%
|
||||||
|
n
|
”adjusted segment operating income” is defined as operating income, adjusted to exclude special items that include, but are not limited to, restructuring costs, realignment costs, certain asset impairment charges, certain acquisition-related expenses, and unusual or infrequent operating items. Special items represent significant charges or credits that impact current results, which management views as unrelated to the Company’s ongoing operations and performance. We believe that adjusted segment operating income is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors.
|
|
Three Months Ended September 30, 2018
|
Industrial
Process
|
Motion
Technologies
|
Connect & Control
Technologies |
Total
Segment
|
||||||||||||
|
Segment operating income
|
|
$
|
23.7
|
|
|
$
|
58.5
|
|
|
$
|
26.0
|
|
|
$
|
108.2
|
|
|
Restructuring costs
|
|
—
|
|
|
0.4
|
|
|
0.5
|
|
|
0.9
|
|
||||
|
Acquisition-related benefit
|
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
|
(2.1
|
)
|
||||
|
Adjusted segment operating income
|
|
$
|
23.7
|
|
|
$
|
56.8
|
|
|
$
|
26.5
|
|
|
$
|
107.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended September 30, 2018
|
||||||||||||||||
|
Segment operating income
|
|
$
|
64.0
|
|
|
$
|
175.9
|
|
|
$
|
76.3
|
|
|
$
|
316.2
|
|
|
Restructuring costs
|
|
—
|
|
|
1.7
|
|
|
1.3
|
|
|
3.0
|
|
||||
|
Acquisition-related benefit
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
||||
|
Adjusted segment operating income
|
|
$
|
64.0
|
|
|
$
|
177.0
|
|
|
$
|
77.6
|
|
|
$
|
318.6
|
|
|
Three Months Ended September 30, 2017
|
Industrial
Process |
Motion
Technologies |
Connect & Control
Technologies |
Total
Segment |
||||||||||||
|
Segment operating income
|
|
$
|
14.3
|
|
|
$
|
49.2
|
|
|
$
|
18.0
|
|
|
$
|
81.5
|
|
|
Restructuring costs
|
|
3.2
|
|
|
0.5
|
|
|
1.6
|
|
|
5.3
|
|
||||
|
Acquisition-related expenses
|
|
—
|
|
|
2.9
|
|
|
0.4
|
|
|
3.3
|
|
||||
|
Realignment costs and other
(a)
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
1.2
|
|
||||
|
Adjusted segment operating income
|
|
$
|
17.5
|
|
|
$
|
52.6
|
|
|
$
|
21.2
|
|
|
$
|
91.3
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||
|
Segment operating income
|
|
$
|
37.7
|
|
|
$
|
156.3
|
|
|
$
|
48.9
|
|
|
$
|
242.9
|
|
|
Restructuring costs
|
|
4.9
|
|
|
1.3
|
|
|
2.8
|
|
|
9.0
|
|
||||
|
Acquisition-related expenses
|
|
—
|
|
|
3.7
|
|
|
0.4
|
|
|
4.1
|
|
||||
|
Realignment costs and other
(a)
|
|
1.1
|
|
|
—
|
|
|
8.5
|
|
|
9.6
|
|
||||
|
Adjusted segment operating income
|
|
$
|
43.7
|
|
|
$
|
161.3
|
|
|
$
|
60.6
|
|
|
$
|
265.6
|
|
|
(a)
|
Realignment costs and other in 2017 primarily reflect a legal accrual of $5, costs associated with an action to move certain production lines in our Connect & Control Technologies segment, and costs associated with a management reorganization at our Industrial Process segment.
|
|
n
|
”adjusted income from continuing operations” and “adjusted income from continuing operations per diluted share” are defined as income from continuing operations attributable to ITT Inc. and income from continuing operations attributable to ITT Inc. per diluted share, adjusted to exclude special items that include, but are not limited to, asbestos-related costs, restructuring costs, realignment costs, certain asset impairment charges, certain acquisition-related expenses, income tax settlements or adjustments, and unusual or infrequent non-operating items. Special items represent significant charges or credits, on an after-tax basis, that impact current results, which management views as unrelated to the Company’s ongoing operations and performance. The after-tax basis of each special item is determined using the jurisdictional tax rate of where the expense or benefit occurred. We believe that adjusted income from continuing operations is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors.
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
|
For the Periods Ended September 30
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Income from continuing operations attributable to ITT Inc.
|
$
|
111.0
|
|
|
$
|
87.0
|
|
|
$
|
281.8
|
|
|
$
|
181.0
|
|
|
(Gain) costs related to sale of a former operating location, net of tax expense (benefit) of $8.9, ($0.1), $8.9, and ($1.6), respectively
|
(29.0
|
)
|
|
0.2
|
|
|
(29.1
|
)
|
|
2.8
|
|
||||
|
Net asbestos-related benefit, net of tax expense of $1.0, $23.2, $2.5 and $12.2, respectively
|
(3.3
|
)
|
|
(39.6
|
)
|
|
(8.0
|
)
|
|
(20.8
|
)
|
||||
|
Restructuring costs, net of tax benefit of $0.3, $1.3, $0.7 and $2.6, respectively
|
0.6
|
|
|
3.4
|
|
|
2.3
|
|
|
6.4
|
|
||||
|
Realignment costs, net of tax benefit of $0.0, $0.6, $0.1 and $1.8, respectively
(a)
|
—
|
|
|
0.6
|
|
|
—
|
|
|
2.8
|
|
||||
|
Tax-related special items
(b)
|
(5.4
|
)
|
|
1.3
|
|
|
(32.6
|
)
|
|
(5.0
|
)
|
||||
|
Acquisition-related (benefit) costs, net of tax expense (benefit) of $0.6, ($0.6), $0.2 and ($0.9), respectively
|
(1.5
|
)
|
|
2.9
|
|
|
(0.4
|
)
|
|
3.4
|
|
||||
|
Other unusual or infrequent items, net of tax (benefit) expense of $0.0 ($1.4), $0.1 and $0.0, respectively
(c)
|
0.3
|
|
|
2.3
|
|
|
(0.1
|
)
|
|
2.8
|
|
||||
|
Adjusted income from continuing operations attributable to ITT Inc.
|
$
|
72.7
|
|
|
$
|
58.1
|
|
|
$
|
213.9
|
|
|
$
|
173.4
|
|
|
Income from continuing operations attributable to ITT Inc. per diluted share
|
$
|
1.25
|
|
|
$
|
0.98
|
|
|
$
|
3.18
|
|
|
$
|
2.03
|
|
|
Adjusted income from continuing operations attributable to ITT Inc. per diluted share
|
$
|
0.82
|
|
|
$
|
0.66
|
|
|
$
|
2.41
|
|
|
$
|
1.95
|
|
|
(a)
|
Realignment costs in 2017 include costs associated with an action to move certain production lines in our Connect & Control Technologies segment and a management reorganization at our Industrial Process segment.
|
|
(b)
|
Tax-related special items during the third quarter of 2018 primarily relate to a tax benefit on uncertain tax positions. Tax-related special items during the nine months ended September 30, 2018 reflect the release of a valuation allowance on deferred tax assets in Germany, adjustments to our provisional tax estimate associated with the Tax Act, and a tax benefit on uncertain tax positions. Tax-related special items for the
three and nine months ended
September 30, 2017
primarily relate to tax expense due to the distribution of foreign earnings offset by a tax benefit on undistributed foreign earnings, and tax benefits on uncertain tax positions.
|
|
(c)
|
Other unusual or infrequent items in 2017 include a pension curtailment charge in the third quarter, and a legal accrual of $5, partially offset by an environmental-related gain of $3.8, and interest income from the reversal of uncertain tax position taken in prior years in the second quarter.
|
|
n
|
”adjusted free cash flow” is defined as net cash provided by operating activities less capital expenditures, adjusted for cash payments for restructuring costs, realignment actions, net asbestos cash flows and other significant items that impact current results which management views as unrelated to the Company’s ongoing operations and performance. Due to other financial obligations and commitments, including asbestos expenses, the entire free cash flow may not be available for discretionary purposes. We believe that adjusted free cash flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated by our operations. A reconciliation of adjusted free cash flow is provided below.
|
|
For the Nine Months Ended September 30
|
2018
|
|
2017
|
||||
|
Net cash provided by operating activities
|
$
|
246.6
|
|
|
$
|
178.3
|
|
|
Capital expenditures
|
(63.8
|
)
|
|
(79.2
|
)
|
||
|
Insurance settlement agreement, net
|
(16.9
|
)
|
|
—
|
|
||
|
Net asbestos cash flows
|
42.3
|
|
|
39.5
|
|
||
|
Restructuring cash payments
|
5.9
|
|
|
13.8
|
|
||
|
Payments related to the sale of a former operating location
|
—
|
|
|
4.4
|
|
||
|
Discretionary pension contributions, net of tax
|
—
|
|
|
3.2
|
|
||
|
Other
|
—
|
|
|
4.6
|
|
||
|
Adjusted free cash flow
|
$
|
214.1
|
|
|
$
|
164.6
|
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
|
ITEM 1A.
|
RISK FACTORS
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
PERIOD
|
TOTAL
NUMBER
OF SHARES
PURCHASED
|
AVERAGE
PRICE
PAID
PER SHARE
(1)
|
TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS
(2)
|
MAXIMUM DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS
(2)
|
|||||||||||
|
7/1/2018 - 7/31/2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
$
|
90.6
|
|
|
|
8/1/2018 - 8/31/2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
$
|
90.6
|
|
|
|
9/1/2018 - 9/30/2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
$
|
90.6
|
|
|
|
(1)
|
Average price paid per share is calculated on a settlement basis and includes commissions.
|
|
(2)
|
On October 27, 2006, our Board of Directors approved a three-year $1 billion Share Repurchase Program. On December 16, 2008, our Board of Directors modified the provisions of the Share Repurchase Program to replace the original three-year term with an indefinite term. As of
September 30, 2018
, we had repurchased
22.1
shares for
$909.4
, including commissions, under the Share Repurchase Program. The program is consistent with our capital allocation process, which has centered on those investments necessary to grow our businesses organically and through acquisitions, while also providing cash returns to shareholders. Our strategy for cash flow utilization is to invest in our business, execute strategic acquisitions, pay dividends and repurchase common stock.
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
|
ITEM 5.
|
OTHER INFORMATION
|
|
ITEM 6.
|
EXHIBITS
|
|
EXHIBIT NUMBER
|
|
DESCRIPTION |
|
|
|
|
|
(31.1)
|
|
|
|
|
|
|
|
(31.2)
|
|
|
|
|
|
|
|
(32.1)
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(32.2)
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(101)
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The following materials from ITT Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Condensed Statements of Operations, (ii) Consolidated Condensed Statements of Comprehensive Income, (iii) Consolidated Condensed Balance Sheets, (iv) Consolidated Condensed Statements of Cash Flows, (v) Consolidated Condensed Statements of Changes in Shareholders’ Equity, and (vi) Notes to Consolidated Condensed Financial Statements
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ITT Inc.
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(Registrant)
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By:
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/
S
/ Karen LaRue
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Karen LaRue
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Interim Chief Accounting Officer
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(Principal accounting officer)
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No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
Suppliers
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|