ACQUISITIONS (Notes)

6 Months Ended

Jun. 30, 2015

Acquisitions [Abstract]

Business Combination Disclosure [Text Block]

ACQUISITIONS

Hartzell Aerospace

On March 31, 2015, we completed the acquisition of Hartzell Aerospace (Hartzell) for a purchase price of $53.5 that was funded through additional commercial paper borrowings. Hartzell, which reported 2014 revenues of $34, designs and manufactures products to support aerospace applications, featuring a differentiated portfolio of environmental control system components and an established aftermarket business. Hartzell employs approximately 240 employees at its two facilities in California. The acquisition will be reported within the Control Technologies segment and complements the ITT aerospace growth platform, with customer and sales channel alignment and key high-growth and next-generation platform expansion opportunities.

The allocation of purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date. Our assessment of fair value is preliminary, and may be adjusted for information that is currently not available to us. The aggregate estimated fair value of customer relationships, proprietary technology, and backlog was $17.1, $9.6 and $1.9, respectively. Other assets acquired and liabilities assumed, net, as part of the acquisition were $11.6 and primarily related to working capital balances. The excess of the purchase price over the estimated fair value of net assets acquired of $13.2 was recorded as goodwill (which is expected to be deductible for income tax purposes). All of the goodwill has been assigned to the Control Technologies segment.

Our financial statements include the results of operations and cash flows from Hartzell, prospectively from the acquisition date; however, these results were not material and accordingly, pro forma results of operations have not been presented.