PART I FINANCIAL INFORMATION Condensed Consolidated Statements of Income and Comprehensive Income The company reported significant financial performance improvements for the three and six months ended June 30, 2021 Financial Performance Summary | Metric (in millions) | 3 Months Ended Jun 30, 2021 | 3 Months Ended Jun 30, 2020 | YoY Change (%) | 6 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2020 | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $601.3 | $447.2 | 34.5% | $1,150.2 | $968.1 | 18.8% | | Cost of goods sold | $366.1 | $286.9 | 27.6% | $706.0 | $612.5 | 15.3% | | Gross profit | $235.2 | $160.3 | 46.7% | $444.2 | $355.6 | 24.9% | | Operating income | $88.3 | $45.3 | 94.9% | $168.7 | $105.6 | 59.8% | | Net income | $66.2 | $25.8 | 156.6% | $131.6 | $44.4 | 196.4% | | Basic EPS | $0.39 | $0.15 | 160.0% | $0.78 | $0.26 | 200.0% | | Diluted EPS | $0.39 | $0.15 | 160.0% | $0.78 | $0.26 | 200.0% | Condensed Consolidated Balance Sheets The company's balance sheet shows increased total assets driven by growth in goodwill and intangible assets as of June 30, 2021 Balance Sheet Summary | Metric (in millions) | June 30, 2021 | December 31, 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total current assets | $902.5 | $764.4 | $138.1 | 18.1% | | Property, plant and equipment, net | $291.6 | $289.4 | $2.2 | 0.8% | | Goodwill | $2,193.3 | $2,098.2 | $95.1 | 4.5% | | Intangibles, net | $1,179.0 | $1,105.5 | $73.5 | 6.6% | | Total assets | $4,709.8 | $4,366.1 | $343.7 | 7.9% | | Total current liabilities | $535.8 | $450.0 | $85.8 | 19.1% | | Long-term debt | $1,083.9 | $928.0 | $155.9 | 16.8% | | Total liabilities | $2,217.0 | $1,956.3 | $260.7 | 13.3% | | Total equity | $2,492.8 | $2,409.8 | $83.0 | 3.4% | Condensed Consolidated Statements of Cash Flows Cash from operations increased significantly while investing activities used cash for acquisitions for the six months ended June 30, 2021 Cash Flow Summary | Metric (in millions) | 6 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $143.3 | $90.5 | $52.8 | 58.3% | | Net cash provided by (used for) investing activities | $(250.4) | $(42.8) | $(207.6) | 485.0% | | Net cash provided by (used for) financing activities | $86.1 | $82.5 | $3.6 | 4.4% | | Effect of exchange rate changes on cash and cash equivalents | $0.3 | $(1.6) | $1.9 | -118.8% | | Change in cash and cash equivalents | $(20.7) | $128.6 | $(149.3) | -116.1% | | Cash and cash equivalents, end of period | $101.8 | $235.0 | $(133.2) | -56.7% | Condensed Consolidated Statements of Changes in Equity Total equity increased by $83.0 million, driven by net income and partially offset by dividends and share repurchases Changes in Equity | Metric (in millions) | December 31, 2020 | June 30, 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total equity | $2,409.8 | $2,492.8 | $83.0 | 3.4% | - For the six months ended June 30, 2021, net income contributed $131.6 million, dividends declared totaled $60.0 million, and share repurchases amounted to $20.0 million1019128 Notes to Condensed Consolidated Financial Statements This section provides detailed notes covering basis of presentation, revenue, acquisitions, and segment performance Note 1. Basis of Presentation and Responsibility for Interim Financial Statements - nVent is a leading global provider of electrical connection and protection solutions, operating through three reporting segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management20 - The company is incorporated in Ireland but is centrally managed and has tax residency in the United Kingdom21 - The effects of the COVID-19 pandemic have had and may continue to have an unfavorable impact on the business, with the broader implications on results of operations and overall financial performance remaining uncertain24 Note 2. Revenue Net Sales by Geographic Location (Three months ended June 30, 2021 vs 2020) | Geographic Location (in millions) | 2021 Net Sales | 2020 Net Sales | YoY Change ($) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | U.S. and Canada | $378.7 | $292.6 | $86.1 | 29.4% | | Developed Europe | $141.7 | $100.9 | $40.8 | 40.4% | | Developing | $67.9 | $42.3 | $25.6 | 60.5% | | Other Developed | $13.0 | $11.4 | $1.6 | 14.0% | | Total | $601.3 | $447.2 | $154.1 | 34.5% | Net Sales by Vertical (Three months ended June 30, 2021 vs 2020) | Vertical (in millions) | 2021 Net Sales | 2020 Net Sales | YoY Change ($) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Industrial | $270.1 | $190.8 | $79.3 | 41.5% | | Commercial & Residential | $164.0 | $120.1 | $43.9 | 36.6% | | Infrastructure | $111.7 | $94.2 | $17.5 | 18.6% | | Energy | $55.5 | $42.1 | $13.4 | 31.8% | | Total | $601.3 | $447.2 | $154.1 | 34.5% | - In the first quarter of 2021, revenue in power utilities, datacom, and renewables sub-verticals was reclassified to the infrastructure vertical for better alignment with industry peers and performance assessment27 Contract Balances (in millions) | Metric | June 30, 2021 | December 31, 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Contract assets | $47.6 | $45.6 | $2.0 | 4.4% | | Contract liabilities | $14.4 | $11.3 | $3.1 | 27.4% | | Net contract assets | $33.2 | $34.3 | $(1.1) | (3.2%) | - As of June 30, 2021, the company had $47.9 million of remaining performance obligations on contracts with an original expected duration of one year or more, with the majority expected to be recognized within the next 12 to 18 months29 Note 3. Restructuring Total Restructuring Costs (in millions) | Metric | 3 Months Ended Jun 30, 2021 | 3 Months Ended Jun 30, 2020 | 6 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Severance & related costs | $2.5 | $2.7 | $2.7 | $6.2 | | Other | $1.8 | $0.3 | $2.4 | $1.1 | | Total | $4.3 | $3.0 | $5.1 | $7.3 | - Accrued severance and related costs decreased from $6.6 million at the beginning of the six months ended June 30, 2021, to $3.9 million at the end of the period33 Note 4. Earnings Per Share Earnings Per Ordinary Share | Metric | 3 Months Ended Jun 30, 2021 | 3 Months Ended Jun 30, 2020 | 6 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Basic | $0.39 | $0.15 | $0.78 | $0.26 | | Diluted | $0.39 | $0.15 | $0.78 | $0.26 | Note 5. Acquisitions - On April 1, 2021, nVent acquired Vynckier Enclosure Systems, Inc for approximately $27.0 million in cash, adding non-metallic enclosures to its Enclosures segment37 - On June 30, 2021, nVent acquired CIS Global LLC for approximately $203.0 million in cash, enhancing its Enclosures segment with intelligent rack power distribution and server slides products39 - The Vynckier acquisition resulted in a preliminary allocation of $12.4 million to goodwill and $6.1 million to customer relationships, while the CIS Global acquisition resulted in $84.1 million to goodwill, $74.5 million to customer relationships, and $24.5 million to developed technology3840 Note 6. Goodwill and Other Identifiable Intangible Assets Goodwill by Segment (in millions) | Segment | December 31, 2020 | Acquisitions/Divestitures | Foreign Currency Translation/Other | June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Enclosures | $332.1 | $96.5 | $(3.2) | $425.4 | | Electrical & Fastening Solutions | $1,051.9 | $0.1 | — | $1,052.0 | | Thermal Management | $714.2 | — | $1.7 | $715.9 | | Total goodwill | $2,098.2 | $96.6 | $(1.5) | $2,193.3 | Identifiable Intangible Assets, Net (in millions) | Asset Type | December 31, 2020 | June 30, 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Customer relationships | $824.9 | $874.6 | $49.7 | 6.0% | | Proprietary technology and patents | $7.5 | $31.3 | $23.8 | 317.3% | | Trade names (indefinite-life) | $273.1 | $273.1 | $0.0 | 0.0% | | Total intangibles, net | $1,105.5 | $1,179.0 | $73.5 | 6.6% | - Estimated future amortization expense for identifiable intangible assets is $35.6 million for the remainder of 2021 and approximately $70 million annually from 2022 to 202643 Note 7. Supplemental Balance Sheet Information Inventories (in millions) | Inventory Type | June 30, 2021 | December 31, 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Raw materials and supplies | $84.2 | $67.3 | $16.9 | 25.1% | | Work-in-process | $30.2 | $24.4 | $5.8 | 23.8% | | Finished goods | $161.0 | $143.5 | $17.5 | 12.2% | | Total inventories | $275.4 | $235.2 | $40.2 | 17.1% | Other Non-Current Assets (in millions) | Asset Type | June 30, 2021 | December 31, 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Deferred compensation plan assets | $20.4 | $20.0 | $0.4 | 2.0% | | Lease right-of-use assets | $78.4 | $45.6 | $32.8 | 71.9% | | Deferred tax assets | $19.8 | $29.8 | $(10.0) | -33.6% | | Other non-current assets | $24.8 | $13.2 | $11.6 | 87.9% | | Total other non-current assets | $143.4 | $108.6 | $34.8 | 32.0% | Note 8. Derivatives and Financial Instruments - Outstanding foreign currency derivative contracts had gross notional U.S. dollar equivalent amounts of $103.6 million at June 30, 2021, up from $41.8 million at December 31, 202048 - Cross currency swap agreements had a combined notional amount of $387.9 million at June 30, 2021, used as cash flow hedges for intercompany debt and net investment hedges for Euro-U.S. Dollar exchange rate exposure49 - Deferred gains of $10.8 million from interest rate swaps were recorded in Accumulated other comprehensive loss at June 30, 2021, up from $2.1 million at December 31, 202050 Note 9. Debt Debt Outstanding (in millions) | Debt Type | June 30, 2021 | December 31, 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revolving credit facility | $200.0 | $34.6 | $165.4 | 477.9% | | Senior notes - fixed rate (2023) | $300.0 | $300.0 | $0.0 | 0.0% | | Senior notes - fixed rate (2028) | $500.0 | $500.0 | $0.0 | 0.0% | | Term loan facility | $107.5 | $117.5 | $(10.0) | -8.5% | | Total debt | $1,103.9 | $948.0 | $155.9 | 16.4% | - The company was in compliance with all financial covenants in its debt agreements as of June 30, 2021, including the consolidated debt to EBITDA ratio (not to exceed 3.75 to 1.00) and the EBITDA to consolidated interest expense ratio (not less than 3.00 to 1.00)59 - Contractual debt obligation maturities include $10.0 million in the remainder of 2021, $20.0 million in 2022, $577.5 million in 2023, and $500.0 million thereafter60 Note 10. Income Taxes Effective Income Tax Rate | Period | Effective Tax Rate | | :--- | :--- | | 6 Months Ended Jun 30, 2021 | 13.0% | | 6 Months Ended Jun 30, 2020 | 47.6% | | Change (pts) | (34.6) pts | - The 13.0% effective income tax rate for the six months ended June 30, 2021, reflects a one-time tax benefit of $5.2 million related to a worthless stock deduction62 - In the six months ended June 30, 2020, a valuation allowance of $19.4 million was established on certain foreign deferred tax assets, contributing to the higher effective tax rate in that period63 Note 11. Shareholders' Equity - The Board of Directors authorized a new $300.0 million share repurchase program (2021 Authorization) on May 14, 2021, which began on July 23, 2021, and expires on July 22, 202466 - During the six months ended June 30, 2021, the company repurchased 0.9 million ordinary shares for $20.0 million under previous authorizations65 - A quarterly cash dividend of $0.175 per ordinary share was declared on May 13, 2021, payable on August 6, 202167 Note 12. Segment Information Net Sales by Reportable Segment (in millions) | Segment | 3 Months Ended Jun 30, 2021 | 3 Months Ended Jun 30, 2020 | YoY Change (%) | 6 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2020 | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Enclosures | $300.4 | $219.3 | 37.0% | $577.4 | $477.8 | 20.8% | | Electrical & Fastening Solutions | $169.2 | $132.1 | 28.1% | $317.1 | $274.0 | 15.7% | | Thermal Management | $131.7 | $95.8 | 37.5% | $255.7 | $216.3 | 18.2% | | Total | $601.3 | $447.2 | 34.5% | $1,150.2 | $968.1 | 18.8% | Segment Income (in millions) | Segment | 3 Months Ended Jun 30, 2021 | 3 Months Ended Jun 30, 2020 | YoY Change (%) | 6 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2020 | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Enclosures | $53.7 | $28.2 | 90.4% | $102.5 | $69.1 | 48.3% | | Electrical & Fastening Solutions | $48.9 | $34.7 | 41.0% | $88.1 | $68.2 | 29.2% | | Thermal Management | $24.9 | $14.4 | 72.9% | $45.9 | $34.7 | 32.3% | | Total | $110.2 | $68.3 | 61.3% | $207.3 | $149.8 | 38.4% | Note 13. Commitments and Contingencies - The company may indemnify purchasers for various potential liabilities related to sold businesses, with the maximum obligation generally not explicitly stated or reasonably estimable, but historically, payments have not been significant71 - Liability for service and product warranties was not material as of June 30, 2021, and December 31, 202072 - Outstanding bonds, letters of credit, and bank guarantees totaled $46.9 million at June 30, 2021, an increase from $43.8 million at December 31, 202073 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial condition, operational results, business overview, key trends, and liquidity Forward-looking Statements - The report contains forward-looking statements, identified by words such as 'targets,' 'plans,' 'believes,' and 'expects,' which are not guarantees of future performance and are subject to various risks and uncertainties75 - Key risk factors include the adverse effects of the COVID-19 pandemic, overall global economic and business conditions, the ability to achieve restructuring benefits, successful acquisition integration, and competition and pricing pressures75 Overview - nVent is a leading global provider of electrical connection and protection solutions, operating across three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management76 - For the first six months of 2021, Enclosures represented approximately 50% of total revenues, Electrical & Fastening Solutions 28%, and Thermal Management 22%77 - The company completed two acquisitions in Q2 2021: Vynckier Enclosure Systems, Inc for $27.0 million and CIS Global LLC for $203.8 million, both integrated into the Enclosures segment7980 COVID-19 Update - Economic activity in many end-markets stabilized and recovered in the second half of 2020 and continued to increase in the first and second quarters of 2021, with organic sales growing sequentially for four consecutive quarters82 - The company continues to experience supply chain challenges, including increased lead times, and inflationary increases of raw materials, logistics, and labor costs, which are expected to continue throughout the remainder of 202184 - Temporary cash and cost-savings measures implemented in 2020 in response to the pandemic have largely been eliminated due to continuous sequential improvement in financial results and an improved outlook83 Key Trends and Uncertainties Regarding our Existing Business - Significant uncertainties persist regarding the COVID-19 pandemic, including its duration, severity, vaccination rates, and its impact on product demand and the supply chain86 - The company is pursuing specific product, vertical, and geographic opportunities through research and development and increased sales and marketing resources to drive organic sales growth86 - Supply chain challenges, increased lead times, and inflationary cost increases for raw materials, logistics, and labor are expected to continue and could negatively impact results88 Operating Objectives - Operating objectives for 2021 include executing a social responsibility strategy focused on People, Products, and Planet, and enhancing employee engagement and development88 - The company aims to achieve differentiated revenue growth through new products and solutions and expansion in higher-growth verticals and key developing regions88 - Other objectives include optimizing technological capabilities for innovative products, advancing digital transformation, driving operating excellence through lean initiatives, optimizing working capital, and strategically deploying capital88 Consolidated Results of Operations Net sales Components of Change in Consolidated Net Sales | Component | 3 Months Ended Jun 30, 2021 (YoY Change %) | 6 Months Ended Jun 30, 2021 (YoY Change %) | | :--- | :--- | :--- | | Volume | 23.2% | 11.0% | | Price | 5.7% | 3.4% | | Organic growth | 28.9% | 14.4% | | Acquisition | 0.9% | 0.6% | | Currency | 4.7% | 3.8% | | Total | 34.5% | 18.8% | - Organic sales growth was significantly contributed by the industrial business (approximately 15.0% in Q2 and 8.5% in H1), commercial & residential business (approximately 8.5% in Q2 and 4.0% in H1), and infrastructure business (approximately 3.5% in Q2 and 2.0% in H1)93 Gross profit - Gross profit as a percentage of net sales increased by 3.3 percentage points in Q2 2021 (to 39.1%) and 1.9 percentage points in H1 2021 (to 38.6%) compared to the prior year8991 - These increases were primarily due to increased sales volume leading to leverage on fixed expenses, selective increases in selling prices to mitigate inflationary costs, and savings from lean and supply management practices94 - The gains were partially offset by inflationary increases related to certain raw materials, labor, and freight costs94 Selling, general and administrative ("SG&A") - SG&A expense as a percentage of net sales decreased by 0.8 percentage points in Q2 2021 (to 22.5%) and 1.6 percentage points in H1 2021 (to 21.9%) compared to the prior year8991 - These decreases were primarily a result of increased sales volume leading to leverage on fixed operating expenses and savings generated from restructuring and other lean initiatives95 - The decreases were partially offset by inflationary increases impacting labor costs, the cessation of temporary cost-saving actions taken in Q2 2020 due to COVID-19, and higher employee incentive compensation expense95 Provision for income taxes - The effective tax rate decreased by 9.9 percentage points in Q2 2021 (to 16.8%) and 34.6 percentage points in H1 2021 (to 13.0%) compared to the prior year8991 - The differences were primarily due to a $19.4 million non-cash charge related to a valuation allowance on certain foreign deferred tax assets recorded in H1 2020, and a $5.2 million one-time tax benefit from a worthless stock deduction recorded in H1 202195 Segment Results of Operations Enclosures Enclosures Segment Performance (YoY Change) | Metric | 3 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2021 | | :--- | :--- | :--- | | Net sales growth | 37.0% | 20.8% | | Segment income growth | 90.4% | 48.3% | | Segment income % of net sales change | +5.0 pts | +3.3 pts | - Organic sales growth was driven by strong contributions from the industrial business (approximately 20.5% in Q2 and 12.0% in H1), commercial & residential business (approximately 6.0% in Q2 and 2.0% in H1), and infrastructure business (approximately 2.0% in Q2 and 2.5% in H1)100 - The increase in segment income as a percentage of net sales was primarily due to higher sales volume, selective price increases, and savings from restructuring and lean initiatives, partially offset by inflationary costs and higher employee incentive compensation101 Electrical & Fastening Solutions Electrical & Fastening Solutions Segment Performance (YoY Change) | Metric | 3 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2021 | | :--- | :--- | :--- | | Net sales growth | 28.1% | 15.7% | | Segment income growth | 41.0% | 29.2% | | Segment income % of net sales change | +2.6 pts | +2.9 pts | - Organic sales growth was driven by commercial & residential (approximately 12.5% in Q2 and 6.5% in H1), infrastructure (approximately 7.0% in Q2 and 3.0% in H1), and industrial (approximately 4.0% in Q2 and 3.0% in H1) businesses, including selective price increases105 - The increase in segment income as a percentage of net sales was mainly due to selective price increases, higher sales volume, and savings from restructuring and lean initiatives, partially offset by inflationary increases in raw materials, labor, and freight costs105106 Thermal Management Thermal Management Segment Performance (YoY Change) | Metric | 3 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2021 | | :--- | :--- | :--- | | Net sales growth | 37.5% | 18.2% | | Segment income growth | 72.9% | 32.3% | | Segment income % of net sales change | +3.9 pts | +2.0 pts | - Organic sales growth was strong in industrial (approximately 16.5% in Q2 and 8.5% in H1), commercial & residential (approximately 9.0% in Q2 and 5.0% in H1), and energy (approximately 4.0% in Q2) businesses, supported by selective price increases110 - The increase in segment income as a percentage of net sales was primarily due to higher sales volume, selective price increases, and savings from restructuring and lean initiatives, partially offset by inflationary costs and higher employee incentive compensation109111 Liquidity and Capital Resources Operating activities Net Cash Provided by Operating Activities (in millions) | Period | Net Cash Provided by Operating Activities | | :--- | :--- | | 6 Months Ended Jun 30, 2021 | $143.3 | | 6 Months Ended Jun 30, 2020 | $90.5 | | Change ($) | $52.8 | | Change (%) | 58.3% | - The increase in operating cash flow primarily reflects net income of $182.6 million, net of non-cash depreciation, amortization, and changes in deferred taxes, partially offset by a $47.6 million increase in working capital116 Investing activities Net Cash Used for Investing Activities (in millions) | Period | Net Cash Used for Investing Activities | | :--- | :--- | | 6 Months Ended Jun 30, 2021 | $(250.4) | | 6 Months Ended Jun 30, 2020 | $(42.8) | | Change ($) | $(207.6) | | Change (%) | 485.0% | - Net cash used for investing activities in H1 2021 primarily relates to capital expenditures of $17.9 million and cash paid for the Vynckier and CIS Global acquisitions totaling $228.7 million117 Financing activities Net Cash Provided by Financing Activities (in millions) | Period | Net Cash Provided by Financing Activities | | :--- | :--- | | 6 Months Ended Jun 30, 2021 | $86.1 | | 6 Months Ended Jun 30, 2020 | $82.5 | | Change ($) | $3.6 | | Change (%) | 4.4% | - Net cash provided by financing activities in H1 2021 primarily relates to net receipts of $165.4 million from the revolving credit facility, offset by $58.8 million in dividends paid and $20.0 million in share repurchases118 Senior notes - nVent Finance S.à r.l. issued $300.0 million aggregate principal amount of 3.950% senior notes due 2023 and $500.0 million aggregate principal amount of 4.550% senior notes due 2028 in March 2018119 - The notes are fully and unconditionally guaranteed by nVent, the Parent Company Guarantor, whose principal source of cash flow for payments is dividends from its subsidiaries120 Senior credit facilities - In March 2018, nVent Finance entered into a $200.0 million senior unsecured term loan facility and a $600.0 million senior unsecured revolving credit facility, with total availability under the revolving facility at $400.0 million as of June 30, 2021123 - The company was in compliance with all financial covenants in its debt agreements as of June 30, 2021, including the consolidated debt to EBITDA ratio and EBITDA to consolidated interest expense ratio124 Share repurchases - The Board of Directors authorized a new $300.0 million share repurchase program (2021 Authorization) on May 14, 2021, which became effective on July 23, 2021, and expires on July 22, 2024127 - During the six months ended June 30, 2021, the company repurchased 0.9 million ordinary shares for $20.0 million under previous authorizations126 Dividends Dividends Paid (in millions, except per share data) | Period | Dividends Paid ($) | Dividends Paid Per Share ($) | | :--- | :--- | :--- | | 6 Months Ended Jun 30, 2021 | $58.8 | $0.35 | | 6 Months Ended Jun 30, 2020 | $59.5 | $0.35 | - A quarterly cash dividend of $0.175 per ordinary share was declared on May 13, 2021, payable on August 6, 2021129 Other financial measures (Free cash flow) Free Cash Flow (in millions) | Metric | 6 Months Ended Jun 30, 2021 | 6 Months Ended Jun 30, 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $143.3 | $90.5 | $52.8 | 58.3% | | Capital expenditures | $(17.9) | $(17.2) | $(0.7) | 4.1% | | Proceeds from sale of property and equipment | $0.1 | $1.4 | $(1.3) | -92.9% | | Free cash flow | $125.5 | $74.7 | $50.8 | 68.0% | - Free cash flow, a non-GAAP financial measure, is used to assess cash flow performance and represents cash generated from operations available for dividends, acquisitions, debt repayment, and share repurchases131 Critical Accounting Policies - There have been no material changes to the company's critical accounting policies and estimates from those previously disclosed in its 2020 Annual Report on Form 10-K133 ITEM 3. Quantitative and Qualitative Disclosures about Market Risk The company reported no material changes in its market risk during the quarter ended June 30, 2021 - No material changes in market risk were reported for the quarter ended June 30, 2021134 ITEM 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective and reported no material changes in internal control - The company's disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of June 30, 2021135 - There was no change in internal control over financial reporting that materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting during the quarter ended June 30, 2021136 PART II OTHER INFORMATION ITEM 1. Legal Proceedings There have been no material developments with respect to previously disclosed legal proceedings - No material developments regarding legal proceedings were reported138 ITEM 1A. Risk Factors No additional material changes to previously disclosed risk factors were reported - No additional material changes to the risk factors were reported139 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased shares in Q2 2021 and initiated a new $300.0 million repurchase authorization Share Repurchases (Q2 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 1 - May 1, 2021 | 1,953 | $28.24 | | May 2 - May 29, 2021 | 3,520 | $31.26 | | May 30 - June 30, 2021 | 634 | $31.86 | | Total (Q2 2021) | 6,107 | ~$29.98 | - A new $300.0 million share repurchase authorization (2021 Authorization) began on July 23, 2021, upon the expiration of the 2018 and 2019 Authorizations, and expires on July 22, 2024141 ITEM 6. Exhibits This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q - Exhibits include certifications from the Chief Executive Officer (31.1, 32.1) and Chief Financial Officer (31.2, 32.2), as well as iXBRL formatted financial statements (101, 104)144 Signatures The report was duly signed on August 3, 2021, by the company's Chief Financial Officer and Chief Accounting Officer - The report was signed on August 3, 2021, by Sara E. Zawoyski (Executive Vice President and Chief Financial Officer) and Randolph A. Wacker (Senior Vice President, Chief Accounting Officer and Treasurer)147
nVent(NVT) - 2021 Q2 - Quarterly Report