Effective January 1, 2025, we changed our method of determining the cost for certain inventories from a last-in, first-out (LIFO) basis to a first-in, first-out (FIFO) basis for all inventories previously accounted for under LIFO. We concluded the FIFO basis of accounting is the preferable method for determining inventory cost for our businesses because it improves comparability with our peers, more accurately reflects the current value and physical flow of inventory, improves consistency across all locations, and aligns operationally with how management views the performance of the business.

We retrospectively applied this change in accounting principle to all prior periods and recorded a cumulative effect adjustment to increase the January 1, 2024 inventory balance by $19.1, with an increase to retained earnings of $14.6, net of tax. The Consolidated Condensed Statement of Operations, Consolidated Condensed Statement of Comprehensive Income, Consolidated Condensed Statement of Cash flows and Consolidated Condensed Statement of Changes in Shareholders’ Equity for the three and six months ended June 29, 2024, and the Consolidated Condensed Balance Sheet as of December 31, 2024 and the related Notes to the Consolidated Condensed Financial Statements have been adjusted to reflect the change in accounting principle.


Three Months Ended June 29, 2024	As previously reported		Effect of Change		As Adjusted
Cost of revenue	$	589.8	$	(0.7)	$	589.1
Gross profit	316.1		0.7		316.8
Operating income	159.0		0.7		159.7
Income from continuing operations before income taxes	153.4		0.7		154.1
Income tax expense	33.0		0.2		33.2


Net income	120.4		0.5		120.9
Net income attributable to ITT Inc.	$	119.2	$	0.5	$	119.7
Basic earnings per share	$	1.45	$	0.01	$	1.46
Diluted earnings per share	$	1.45	$	—	$	1.45

Six Months Ended June 29, 2024
Cost of revenue	$	1,199.6	$	(1.4)	$	1,198.2
Gross profit	616.9		1.4		618.3
Operating income	308.2		1.4		309.6
Income from continuing operations before income taxes	298.2		1.4		299.6
Income tax expense	65.8		0.3		66.1


Net income	232.4		1.1		233.5
Net income attributable to ITT Inc.	$	230.2	$	1.1	$	231.3
Basic earnings per share	$	2.80	$	0.02	$	2.82
Diluted earnings per share	$	2.79	$	0.01	$	2.80


Three Months Ended June 29, 2024	As previously reported		Effect of Change		As Adjusted
Net income	$	120.4	$	0.5	$	120.9
Comprehensive income	102.6		0.5		103.1
Comprehensive income attributable to ITT Inc.	$	101.4	$	0.5	$	101.9

Six Months Ended June 29, 2024
Net income	$	232.4	$	1.1	$	233.5
Comprehensive income	181.5		1.1		182.6
Comprehensive income attributable to ITT Inc.	$	179.3	$	1.1	$	180.4



December 31, 2024	As previously reported		Effect of Change		As Adjusted
Inventories	$	591.2	$	21.1	$	612.3
Total current assets	1,864.7		21.1		1,885.8
Other non-current assets	384.6		(0.5)		384.1
Total non-current assets	2,846.0		(0.5)		2,845.5
Total assets	4,710.7		20.6		4,731.3
Other non-current liabilities	256.3		4.4		260.7
Total non-current liabilities	607.9		4.4		612.3
Total liabilities	1,941.1		4.4		1,945.5
Retained earnings	3,099.4		16.2		3,115.6
Total ITT Inc. shareholders’ equity	2,762.6		16.2		2,778.8
Total shareholders’ equity	2,769.6		16.2		2,785.8
Total liabilities and shareholders’ equity	$	4,710.7	$	20.6	$	4,731.3







Six Months Ended June 29, 2024	As previously reported		Effect of Change	As Adjusted
Income from continuing operations	$	230.2	1.1	$	231.3
Change in inventories	(5.1)		(1.4)	(6.5)
Change in income taxes	(13.6)		0.3	(13.3)