Acquisitions Acquisitions (Notes)

12 Months Ended

Dec. 31, 2016

Acquisitions [Abstract]

Acquisitions Disclosure [Text Block]

ACQUISITIONS

Wolverine Automotive Holdings

On October 5, 2015, we completed the acquisition of Wolverine Automotive Holdings Inc., the parent company of Wolverine Advanced Materials LLC (Wolverine). Wolverine, which reported 2014 revenues of $154, including $17 of sales to ITT, is a manufacturer of customized technologies for automotive braking systems and specialized sealing solutions for harsh operating environments across a range of industries. The purchase price of $307.0 net of cash acquired, was funded through a combination of cash and borrowings from our revolving credit facility.

The final purchase price allocation is based on the fair value of assets acquired, liabilities assumed and non-controlling interests in Wolverine as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired of $164.2 was recorded as goodwill (which is expected to be deductible for income tax purposes). All of the goodwill has been assigned to the Motion Technologies segment. Other intangibles acquired include existing customer relationships, proprietary technology, and trade names.

Hartzell Aerospace

On March 31, 2015, we completed the acquisition of Environmental Control Systems (f/k/a Hartzell Aerospace) for a purchase price of $52.9 that was funded through additional commercial paper borrowings. Hartzell Aerospace, 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. The acquisition is being 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 final purchase price allocation is based on the fair value of assets acquired and liabilities assumed as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired of $13.7 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.    

Allocation of Purchase Price for Wolverine and Hartzell Aerospace

	Wolverine			Hartzell Aerospace
Cash	$	8.5		$	—
Receivables	31.6			5.3
Inventory	35.0			4.8
Plant, property and equipment	28.5			2.6
Goodwill	164.2			13.7
Other intangible assets	86.0			28.6
Other assets	10.7			0.9
Accounts payable and accrued liabilities	(21.2		)	(3.0		)
Postretirement liabilities	(14.6		)	—
Other liabilities	(13.2		)	—
Net assets acquired	$	315.5		$	52.9

Pro forma results of operations have not been presented because the acquisitions were not deemed material, either individually or in the aggregate, at the acquisition date.