What does water quality systems — goodwill impairment mean?

The expense recognized when the value of goodwill in the water quality segment is deemed to have declined.

How do you interpret water quality systems — goodwill impairment?

An increase signals a negative reassessment of the segment's future earnings potential or asset value.

How does water quality systems — goodwill impairment compare across companies?

Comparable to goodwill impairment charges reported by peers in the industrial and water technology sectors.

Pentair PNR Water Quality Systems — Goodwill Impairment

Discontinued — last reported Q4 '15

Similar metrics at other companies

XYLWater Infrastructure — Goodwill, Impairment Loss

$0—

AMWater Handling — Goodwill Impairment

$296.59M—

WTSWater Quality — Goodwill Gross

$0—

AWK

AWKMarket Based Businesses — Goodwill Impairment

$53M—

ESWater Distribution — Goodwill impairment

$0-100%

XYLApplied Water — Goodwill, Impairment Loss

$0—

Other financials

Income statement

See full

Revenue$1.0B+2.6%

Gross profit$433.4M+7.5%

Operating income$210.0M+3.4%

Net income$172.4M+11.3%

EPS (diluted)$1.05+12.9%

Balance sheet

See full

Cash & equivalents$67.7M-51.8%

Total debt$2.7B+36.0%

Total equity$3.8B+4.9%

Total assets$7.1B+4.8%

Cash flow

See full

Operating cash flow-$67.4M-73.3%

CapEx$18.5M+10.1%

Free cash flow-$85.9M-54.2%

Valuation

See full

Market cap$12.01B-2.5%

Enterprise value$14.6B+2.6%

P/E17.9×-1.1×

P/S2.9×-0.2×

Profitability

See full

Gross margin40.9%+1.4pp

Operating margin20.6%+0.3pp

Net margin16%+0.1pp

FCF margin17%-1.7pp

Returns & leverage

See full

Return on equity18%-0.6pp

Debt / equity0.7×+0.2×

Current ratio1.9×0.0×

Where this comes from

Reported directly by Pentair in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Pentair’s 10-K, filed February 26, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does water quality systems — goodwill impairment mean?: The expense recognized when the value of goodwill in the water quality segment is deemed to have declined.
How do you interpret water quality systems — goodwill impairment?: An increase signals a negative reassessment of the segment's future earnings potential or asset value.
How does water quality systems — goodwill impairment compare across companies?: Comparable to goodwill impairment charges reported by peers in the industrial and water technology sectors.