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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 2, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    
Commission File Number: 001-05672
ITT INC.
State of Indiana 81-1197930
(State or Other Jurisdiction
of Incorporation or Organization)
 (I.R.S. Employer
Identification Number)
1133 Westchester Avenue, White Plains, NY 10604
(Principal Executive Office)
Telephone Number: (914) 641-2000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $1.00 per shareITTNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes      No  
As of May 2, 2022, there were 83.5 million shares of Common Stock (par value $1.00 per share) of the issuer outstanding.



TABLE OF CONTENTS
ITEM
  
PAGE
PART I – FINANCIAL INFORMATION
1.
2.
3.
4.
PART II – OTHER INFORMATION
1.
1A.
2.
3.
4.
5.
6.



WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy statements and other information with the U.S. Securities and Exchange Commission (the SEC). The SEC maintains a website at www.sec.gov on which you may access our SEC filings. In addition, we make available free of charge at www.investors.itt.com copies of materials we file with, or furnish to, the SEC as soon as reasonably practical after we electronically file or furnish these reports, as well as other important information that we disclose from time to time. Information contained on our website, or that can be accessed through our website, does not constitute a part of this Quarterly Report on Form 10-Q (this Report). We have included our website address only as an inactive textual reference and do not intend it to be an active link to our website.
Our corporate headquarters are located at 1133 Westchester Avenue, White Plains, New York 10604 and the telephone number of this location is (914) 641-2000.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
Some of the information included herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts, but rather represent only a belief regarding future events based on current expectations, estimates, assumptions and projections about our business, future financial results and the industry in which we operate, and other legal, regulatory and economic developments. These forward-looking statements include, but are not limited to, future strategic plans and other statements that describe the company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future events and future operating or financial performance.
We use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “future,” “may,” “will,” “could,” “should,” “potential,” “continue,” “guidance” and other similar expressions to identify such forward-looking statements. Forward-looking statements are uncertain and, by their nature, many are inherently unpredictable and outside of ITT’s control, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements.
Where in any forward-looking statement we express an expectation or belief as to future results or events, such expectation or belief is based on current plans and expectations of our management, expressed in good faith and believed to have a reasonable basis. However, we cannot provide any assurance that the expectation or belief will occur or that anticipated results will be achieved or accomplished.
Among the factors that could cause our results to differ materially from those indicated by forward-looking statements are risks and uncertainties inherent in our business including, without limitation:
impacts on our business due to the COVID-19 pandemic, including:
variant strains of the virus, as well as the timing, effectiveness and availability of, and people’s receptivity to, vaccines or other medical remedies;
disruptions to our operations and demand for our products, increased costs, disruption of supply chain and other constraints in the availability of key commodities and other necessary services;
government-mandated site closures, employee illness, skilled labor shortages, the impact of potential travel restrictions, stay-in-place restrictions, and vaccination requirements on our business and workforce; and
customer and supplier bankruptcies, impacts to the global economy and financial markets, and liquidity challenges in accessing capital markets;
uncertain global economic and capital markets conditions, including those due to COVID-19, trade disputes between the U.S. and its trading partners, political and social unrest, and the availability and fluctuations in prices of steel, oil, copper, tin, and other commodities;
volatility in raw material prices and our suppliers’ ability to meet quality and delivery requirements;
failure to manage the distribution of products and services effectively;
failure to compete successfully and innovate in our markets;
failure to protect our intellectual property rights or violations of the intellectual property rights of others;
the extent to which there are quality problems with respect to manufacturing processes or finished goods;
the risk of cybersecurity breaches;



loss of or decrease in sales from our most significant customers;
risks due to our operations and sales outside the U.S. and in emerging markets;
the impacts on our business from Russia’s invasion of Ukraine, and the global response to it;
fluctuations in foreign currency exchange rates and the impact of such fluctuations on our hedging arrangements;
fluctuations in interest rates and the impact of such fluctuations on our cost of debt;
fluctuations in demand or customers’ levels of capital investment and maintenance expenditures, especially in the oil and gas, chemical, and mining markets, or changes in our customers’ anticipated production schedules, especially in the commercial aerospace market;
the risk of material business interruptions, particularly at our manufacturing facilities;
risk of liabilities from past divestitures and spin-offs;
failure of portfolio management strategies, including cost-saving initiatives, to meet expectations;
risks related to government contracting, including changes in levels of government spending and regulatory and contractual requirements applicable to sales to the U.S. government;
fluctuations in our effective tax rate, including as a result of possible tax reform legislation in the U.S. and other jurisdictions;
changes in environmental laws or regulations, discovery of previously unknown or more extensive contamination, or the failure of a potentially responsible party to perform;
failure to comply with the U.S. Foreign Corrupt Practices Act (or other applicable anti-corruption legislation), export controls and trade sanctions, including tariffs;
risk of product liability claims and litigation; and
changes in laws relating to the use and transfer of personal and other information.
More information on factors that could cause actual results or events to differ materially from those anticipated is included in Part II, Item 1A, “Risk Factors” herein, as well as in our reports filed with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2021 (particularly under the caption “Risk Factors”), our Quarterly Reports on Form 10-Q and in other documents we file from time to time with the SEC.
The forward-looking statements included in this Report speak only as of the date of this Report. We undertake no obligation (and expressly disclaim any obligation) to update any forward-looking statements, whether written or oral or as a result of new information, future events or otherwise.



PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
For the Three Months EndedApril 2, 2022April 3, 2021
Revenue$726.2 $698.4 
Cost of revenue507.8 469.4 
Gross profit218.4 229.0 
General and administrative expenses60.4 58.1 
Sales and marketing expenses38.4 36.7 
Research and development expenses25.0 24.3 
Operating income94.6 109.9 
Interest and non-operating income, net(0.2)(1.3)
Income from continuing operations before income tax expense94.8 111.2 
Income tax expense19.5 24.7 
Net income75.3 86.5 
Less: Income attributable to noncontrolling interests0.5 0.3 
Net income attributable to ITT Inc.$74.8 $86.2 
Earnings per share attributable to ITT Inc.:
Basic$0.88 $1.00 
Diluted$0.88 $0.99 
Weighted average common shares – basic84.8 86.3 
Weighted average common shares – diluted85.2 86.9 
The accompanying Notes to the Consolidated Condensed Financial Statements are an integral part of the Statements of Operations.
1


CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(IN MILLIONS) 
For the Three Months EndedApril 2, 2022April 3, 2021
Net income$75.3 $86.5 
Other comprehensive (loss):
Net foreign currency translation adjustment(11.7)(30.0)
Net change in postretirement benefit plans, net of tax expense of $(0.2) and $(0.1), respectively
(0.3) 
Other comprehensive (loss)(12.0)(30.0)
Comprehensive income63.3 56.5 
Less: Comprehensive income attributable to noncontrolling interests0.5 0.3 
Comprehensive income attributable to ITT Inc.$62.8 $56.2 
Disclosure of reclassification adjustments to postretirement benefit plans:
Amortization of prior service benefit, net of tax expense of $(0.3) and $(0.3), respectively
$(1.0)$(1.0)
Amortization of net actuarial loss, net of tax benefit of $0.1 and $0.2, respectively
0.7 1.0 
Net change in postretirement benefit plans, net of tax$(0.3)$ 
The accompanying Notes to the Consolidated Condensed Financial Statements are an integral part of the Statements of Comprehensive Income.
2


CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 
As of the Period EndedApril 2,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$710.4 $647.5 
Receivables, net615.8 555.1 
Inventories, net475.6 430.9 
Other current assets102.7 88.6 
Total current assets1,904.5 1,722.1 
Non-current assets:
Plant, property and equipment, net504.9 509.1 
Goodwill918.5 924.3 
Other intangible assets, net80.9 85.7 
Other non-current assets316.8 324.2 
Total non-current assets1,821.1 1,843.3 
Total assets$3,725.6 $3,565.4 
Liabilities and Shareholders’ Equity
Current liabilities:
Commercial paper and current maturities of long-term debt$487.0 $197.6 
Accounts payable411.0 373.4 
Accrued liabilities344.3 357.3 
Total current liabilities1,242.3 928.3 
Non-current liabilities:
Postretirement benefits196.4 199.9 
Other non-current liabilities196.7 206.5 
Total non-current liabilities393.1 406.4 
Total liabilities1,635.4 1,334.7 
Shareholders’ equity:
Common stock:
Authorized – 250.0 shares, $1 par value per share
Issued and outstanding – 83.6 shares and 85.5 shares, respectively
83.6 85.5 
Retained earnings2,334.6 2,461.6 
Total accumulated other comprehensive loss(333.3)(321.3)
Total ITT Inc. shareholders’ equity2,084.9 2,225.8 
Noncontrolling interests5.3 4.9 
Total shareholders’ equity2,090.2 2,230.7 
Total liabilities and shareholders’ equity$3,725.6 $3,565.4 
The accompanying Notes to the Consolidated Condensed Financial Statements are an integral part of the Balance Sheets.
3


CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN MILLIONS)
For the Three Months EndedApril 2, 2022April 3, 2021
Operating Activities
Income from continuing operations attributable to ITT Inc.$74.8 $86.2 
Adjustments to income from continuing operations:
Depreciation and amortization27.3 28.5 
Equity-based compensation3.7 3.3 
Other non-cash charges, net10.2 6.3 
Changes in assets and liabilities:
Change in receivables(70.7)(50.1)
Change in inventories(48.4)(21.2)
Change in contract assets(1.7)0.6 
Change in contract liabilities11.8 (2.7)
Change in accounts payable48.6 36.6 
Change in accrued expenses(42.5)(12.4)
Change in income taxes10.1 10.4 
Other, net(25.9)(14.7)
Net Cash – Operating Activities(2.7)70.8 
Investing Activities
Capital expenditures(30.0)(17.2)
Other, net0.6 0.1 
Net Cash – Investing Activities(29.4)(17.1)
Financing Activities
Commercial paper, net borrowings290.7 (42.6)
Long-term debt, repayments (0.1)
Share repurchases under repurchase plan(163.9)(50.0)
Share repurchases from net settlement of employee stock incentive plans(8.4)(11.0)
Dividends paid(22.4)(19.1)
Other, net0.6  
Net Cash – Financing Activities96.6 (122.8)
Exchange rate effects on cash and cash equivalents(1.5)(10.4)
Net cash – operating activities of discontinued operations(0.1)(0.1)
Net change in cash and cash equivalents62.9 (79.6)
Cash and cash equivalents – beginning of year (includes restricted cash of $0.8 and $0.8, respectively)
648.3 860.6 
Cash and Cash Equivalents – End of Period (includes restricted cash of $0.8 and $0.8, respectively)
$711.2 $781.0 
Supplemental Disclosures of Cash Flow Information
Cash paid during the year for:
Interest$0.5 $0.2 
Income taxes, net of refunds received$8.5 $13.4 
The accompanying Notes to the Consolidated Condensed Financial Statements are an integral part of the Statements of Cash Flows.
4


CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 
As of and for the Three Months Ended
April 2, 2022
Common StockRetained EarningsAccumulated Other Comprehensive LossNoncontrolling InterestTotal Shareholders' Equity
(Shares)(Dollars)
December 31, 2021
85.5 $85.5 $2,461.6 $(321.3)$4.9 $2,230.7 
Net income— — 74.8  0.5 75.3 
Shares issued and activity from stock incentive plans0.3 0.3 4.1   4.4 
Share repurchases under repurchase plan(2.1)(2.1)(175.7)  (177.8)
Share repurchases from net settlement of employee stock incentive plans(0.1)(0.1)(8.3)  (8.4)
Dividends declared ($0.264 per share)
—  (21.9)  (21.9)
Total other comprehensive loss, net of tax—   (12.0) (12.0)
April 2, 2022
83.6 $83.6 $2,334.6 $(333.3)$5.3 $2,090.2 
As of and for the Three Months Ended
April 3, 2021
December 31, 202086.5 $86.5 $2,319.3 $(279.4)$1.5 $2,127.9 
Net income—  86.2  0.3 86.5 
Shares issued and activity from stock incentive plans0.3 0.3 3.2   3.5 
Share repurchases under repurchase plan(0.6)(0.6)(49.4)  (50.0)
Share repurchases from net settlement of employee stock incentive plans(0.1)(0.1)(10.9)  (11.0)
Dividends declared ($0.22 per share)
—  (19.0)  (19.0)
Total other comprehensive loss, net of tax—   (30.0) (30.0)
April 3, 202186.1 $86.1 $2,329.4 $(309.4)$1.8 $2,107.9 
The accompanying Notes to the Consolidated Condensed Financial Statements are an integral part of the Statements of Changes in Shareholders’ Equity.
5


NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
(DOLLARS AND SHARES (EXCEPT PER SHARE AMOUNTS) IN MILLIONS, UNLESS OTHERWISE STATED)
NOTE 1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Description of Business
ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Inc. and its subsidiaries. ITT operates through three reportable segments: Motion Technologies (MT), consisting of friction and shock and vibration equipment; Industrial Process (IP), consisting of industrial flow equipment and services; and Connect & Control Technologies (CCT), consisting of electronic connectors, fluid handling, motion control, composite materials and noise and energy absorption products. Financial information for our segments is presented in Note 3, Segment Information.
Russia-Ukraine Conflict
In February 2022, the United States announced targeted economic sanctions on Russia and certain Russian citizens in response to Russia’s invasion of Ukraine. As described in Part I, Item IA, “Risk Factors” in our 2021 Annual Report for the fiscal year ended December 31, 2021, our business may be sensitive to global economic conditions, which can be negatively impacted by instability in the geopolitical environment. Our annual sales directly to customers in Russia and Ukraine were approximately $38 for 2021.
During the first quarter of 2022, we recorded total charges of $8.8, primarily related to inventory and accounts receivable reserves, as a result of suspending our operations in Russia and to reflect the current macroeconomic conditions impacting some of our customers that sell or supply into this region. If circumstances worsen, we may experience a further reduction in demand and incur additional charges, including potential fixed asset impairments, severance and other reserves, which could have a material adverse impact on our business and financial results. For additional discussion of the risks related to the Russia-Ukraine conflict, see Part II, Item 1A, “Risk Factors” herein.
Basis of Presentation
The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, reflect all known adjustments (which consist primarily of normal, recurring accruals, estimates and assumptions) necessary to state fairly the financial position, results of operations, and cash flows for the periods presented. The Consolidated Condensed Balance Sheet as of December 31, 2021, presented herein, has been derived from our audited balance sheet included in our Annual Report on Form 10-K (2021 Annual Report) for the year ended December 31, 2021 but does not include all disclosures required by accounting principles generally accepted in the United States (GAAP). We consistently applied the accounting policies described in the 2021 Annual Report in preparing these unaudited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2021 Annual Report.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities and assets, allowance for credit losses and inventory valuation. Actual results could differ from these estimates.
ITT’s quarterly financial periods end on the Saturday that is closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31st. ITT’s first quarter for 2022 and 2021 ended on April 2, 2022 and April 3, 2021, respectively.
Certain prior year amounts have been reclassified to conform to the current year presentation.
6


NOTE 2
RECENT ACCOUNTING PRONOUNCEMENTS
The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs not listed below were assessed and determined to be either not applicable or are expected to not have a material impact on our consolidated financial position or results of operations.
Recent Accounting Pronouncements Not Yet Adopted:
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquiror on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. Under the current guidance, such assets and liabilities are recognized by the acquiror at fair value as of the acquisition date. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. We are currently evaluating this guidance and plan to apply it during future periods in which we execute acquisitions. We do not expect that this guidance will have a significant impact on our operating results, financial position, or cash flows.
NOTE 3
SEGMENT INFORMATION
The Company’s segments are reported on the same basis used by our Chief Executive Officer, who is also our chief operating decision maker, for evaluating performance and for allocating resources. Our three reportable segments are referred to as Motion Technologies, Industrial Process, and Connect & Control Technologies.
Motion Technologies manufactures brake components and specialized sealing solutions, shock absorbers and damping technologies primarily for the global automotive, truck and trailer, public bus and rail transportation markets.
Industrial Process manufactures engineered fluid process equipment serving a diversified mix of customers in global industries such as chemical, energy, mining, and other industrial process markets and is a provider of plant optimization and efficiency solutions and aftermarket services and parts.
Connect & Control Technologies manufactures harsh-environment connector solutions, critical energy absorption, flow control components, and composite materials for the aerospace and defense, general industrial, medical, and energy markets.
Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, M&A due diligence, and other administrative costs, as well as charges related to certain matters, such as environmental liabilities, and, for 2021, asbestos-related impacts, that are managed at a corporate level and are not included in segment results when evaluating performance or allocating resources. Corporate and Other also includes research and development-related expenses associated with a subsidiary that does not constitute a reportable segment. Assets of the segments exclude general corporate assets, which principally consist of cash, investments, deferred taxes, and certain property, plant and equipment.
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The following table presents our revenue, operating income, and operating margin for each segment.
 RevenueOperating IncomeOperating Margin
For the Three Months Ended
April 2, 2022April 3, 2021April 2, 2022April 3, 2021April 2, 2022April 3, 2021
Motion Technologies$370.1 $369.1 $59.7 $76.0 16.1 %20.6 %
Industrial Process202.2 202.3 20.4 31.0 10.1 %15.3 %
Connect & Control Technologies154.6 127.3 25.7 11.8 16.6 %9.3 %
Eliminations(0.7)(0.3) —  — 
Total segment results726.2 698.4 105.8 118.8 14.6 %17.0 %
Asbestos-related costs, net   (2.4)  
Corporate and Other — (11.2)(6.5)  
Total Corporate and other costs  (11.2)(8.9)  
Total$726.2 $698.4 $94.6 $109.9 13.0 %15.7 %
The following table presents our total assets, capital expenditures, and depreciation & amortization expense for each segment.
As of and for the Three Months Ended
Total AssetsCapital
Expenditures
Depreciation &
Amortization
April 2, 2022December 31, 2021April 2, 2022April 3, 2021April 2, 2022April 3, 2021
Motion Technologies$1,336.1 $1,272.8 $22.8 $13.5 $15.8 $15.7 
Industrial Process1,073.5 1,030.0 2.6 1.6 5.4 5.6 
Connect & Control Technologies724.7 719.3 2.5 1.9 5.4 5.5 
Corporate and Other591.3 543.3 2.1 0.2 0.7 1.7 
Total$3,725.6 $3,565.4 $30.0 $17.2 $27.3 $28.5 

NOTE 4
REVENUE
The following tables present our revenue disaggregated by end market.
Three Months Ended April 2, 2022
Motion TechnologiesIndustrial ProcessConnect & Control TechnologiesEliminationsTotal
Auto and rail$360.4 $ $ $ $360.4 
Chemical and industrial pumps 167.2   167.2 
Aerospace and defense1.5  74.9  76.4 
Energy 35.0 10.0  45.0 
General industrial8.2  69.7 (0.7)77.2 
Total$370.1 $202.2 $154.6 $(0.7)$726.2 

Three Months Ended April 3, 2021
Motion TechnologiesIndustrial ProcessConnect & Control TechnologiesEliminationsTotal
Auto and rail$364.0 $ $ $ $364.0 
Chemical and industrial pumps 159.7   159.7 
Aerospace and defense1.6  60.2  61.8 
Energy 42.6 8.5  51.1 
General industrial3.5  58.6 (0.3)61.8 
Total$369.1 $202.3 $127.3 $(0.3)$698.4 
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Contract Assets and Liabilities
Contract assets consist of unbilled amounts where revenue recognized exceeds customer billings, net of allowances for credit losses. Contract assets are included in other current assets and other non-current assets in our Consolidated Condensed Balance Sheet. Contract liabilities consist of advance customer payments and billings in excess of revenue recognized. Contract liabilities are included in accrued liabilities and other non-current liabilities in our Consolidated Condensed Balance Sheet.
The following table represents our net contract assets and liabilities.
April 2,
2022
December 31,
2021
Current contract assets, net$22.0 $20.6 
Non-current contract assets, net0.3 0.3 
Current contract liabilities(58.8)(46.6)
Non-current contract liabilities(4.4)(4.4)
Net contract liabilities$(40.9)$(30.1)
During the three months ended April 2, 2022, we recognized revenue of $13.0 related to contract liabilities as of December 31, 2021. The aggregate amount of the transaction price allocated to unsatisfied or partially satisfied performance obligations as of April 2, 2022 was $972.6. Of this amount, we expect to recognize approximately $730 to $750 of revenue during the remainder of 2022.
NOTE 5
INCOME TAXES
The following table summarizes our income tax expense and effective tax rate.
For the Three Months EndedApril 2, 2022April 3, 2021
Income tax expense$19.5 $24.7 
Effective tax rate20.6 %22.2 %
The effective tax rate for the three months ended April 2, 2022 declined 160 basis points to 20.6% due to an increase in permanent tax benefits, primarily related to research and development incentives in both foreign and U.S. jurisdictions.
The Company operates in various tax jurisdictions and is subject to examination by tax authorities in these jurisdictions. The Company is currently under examination in several jurisdictions including the Czech Republic, Germany, India, Italy, and the U.S. The estimated tax liability calculation for unrecognized tax benefits considers uncertainties in the application of complex tax laws and regulations in various tax jurisdictions. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the unrecognized tax benefit. Over the next 12 months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could decrease by approximately $2 due to changes in audit status, expiration of statutes of limitations and other events.
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NOTE 6
EARNINGS PER SHARE DATA
The following table provides a reconciliation of the data used in the calculation of basic and diluted earnings per share from continuing operations attributable to ITT.
For the Three Months EndedApril 2, 2022April 3, 2021
Basic weighted average common shares outstanding84.8 86.3 
Add: Dilutive impact of outstanding equity awards0.4 0.6 
Diluted weighted average common shares outstanding85.2 86.9 
There were zero and 0.2 anti-dilutive shares related to equity stock unit awards excluded from the computation of diluted earnings per share for the three months ended April 2, 2022 and April 3, 2021, respectively.
NOTE 7
RECEIVABLES, NET 

The following table summarizes our receivables and associated allowance for credit losses.
April 2,
2022
December 31,
2021
Trade accounts receivable$597.3 $530.4 
Notes receivable18.4 19.2 
Other15.5 17.5 
Receivables, gross631.2 567.1 
Less: Allowance for credit losses - receivables(a)
(15.4)(12.0)
Receivables, net$615.8 $555.1 
The following table displays our allowance for credit losses for receivables and contract assets.
April 2,
2022
December 31,
2021
Allowance for credit losses - receivables(a)
$15.4 $12.0 
Allowance for credit losses - contract assets0.5 0.5 
Total allowance for credit losses$15.9 $12.5 
The following table displays a rollforward of our total allowance for credit losses.
April 2,
2022
April 3,
2021
Total allowance for credit losses - January 1 $12.5 $15.6 
Charges (recoveries) to income(a)
3.8 (0.2)
Write-offs(0.3)(0.1)
Foreign currency and other(0.1)(0.1)
Total allowance for credit losses - ending balance$15.9 $15.2 
(a)    During the three months ended April 2, 2022, we recorded bad debt expense of $3.0 to reflect the current macroeconomic conditions impacting some of our customers in light of the Russia-Ukraine conflict. See Note 1, Description of Business and Basis of Presentation, for further information.
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NOTE 8
INVENTORIES, NET 
The following table summarizes our net inventories.
April 2,
2022
December 31,
2021
Finished goods$76.1 $73.0 
Work in process103.1 92.3 
Raw materials296.4 265.6 
Inventories, net(a)
$475.6 $430.9 
(a)    During the three months ended April 2, 2022, we recorded inventory reserves of $5.4 primarily related to finished goods inventories that we had previously intended to deliver to customers in Russia. See Note 1, Description of Business and Basis of Presentation, for further information.
NOTE 9
OTHER CURRENT AND NON-CURRENT ASSETS 
The following table summarizes our other current and non-current assets.
April 2,
2022
December 31,
2021
Advance payments and other prepaid expenses$57.6 $44.1 
Current contract assets, net22.0 20.6 
Prepaid income taxes6.9 10.4 
Other16.2 13.5 
Other current assets$102.7 $88.6 
Other employee benefit-related assets$117.9 $118.4 
Operating lease right-of-use assets75.3 78.0 
Deferred income taxes61.8 63.4 
Equity method and other investments15.2 14.5 
Capitalized software costs14.8 16.7 
Environmental-related assets8.1 8.5 
Other23.7 24.7 
Other non-current assets$316.8 $324.2 

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NOTE 10
PLANT, PROPERTY AND EQUIPMENT, NET 
The following table summarizes our property, plant, and equipment, net of accumulated depreciation.
Useful life
(in years)
April 2,
2022
December 31,
2021
Machinery and equipment
  2 - 10
$1,198.1 $1,202.0 
Buildings and improvements
  5 - 40
270.2 265.5 
Furniture, fixtures and office equipment
3 - 7
78.8 78.3 
Construction work in progress64.7 62.8 
Land and improvements31.9 32.5 
Other3.3 4.3 
Plant, property and equipment, gross1,647.0 1,645.4 
Less: Accumulated depreciation(1,142.1)(1,136.3)
Plant, property and equipment, net$504.9 $509.1 
Depreciation expense was $21.0 and $21.4 for the three months ended April 2, 2022 and April 3, 2021, respectively.
NOTE 11
GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
The following table provides a rollforward of the carrying amount of goodwill by segment. 
Motion
Technologies
Industrial
Process
Connect & Control
Technologies
Total
Goodwill - December 31, 2021
$292.3 $352.4 $279.6 $924.3 
Foreign exchange translation(2.2)(3.0)(0.6)(5.8)
Goodwill - April 2, 2022
$290.1 $349.4 $279.0 $918.5 
Other Intangible Assets, Net 
The following table summarizes our other intangible assets, net of accumulated amortization. 
April 2, 2022December 31, 2021
Gross
Carrying
Amount
Accumulated AmortizationNet IntangiblesGross
Carrying
Amount
Accumulated AmortizationNet Intangibles
Customer relationships$161.9 $(116.8)$45.1 $162.1 $(113.7)$48.4 
Proprietary technology45.9 (27.7)18.2 46.1 (26.9)19.2 
Patents and other15.5 (14.2)1.3 15.7 (14.0)1.7 
Finite-lived intangible total223.3 (158.7)64.6 223.9 (154.6)69.3 
Indefinite-lived intangibles16.3  16.3 16.4 — 16.4 
Other intangible assets$239.6 $(158.7)$80.9 $240.3 $(154.6)$85.7 
Amortization expense related to finite-lived intangible assets was $4.2 and $5.1 for the three months ended April 2, 2022 and April 3, 2021, respectively.
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NOTE 12