DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

Income from discontinued operations was $1.1 and $2.8 for the three and six month periods ended June 30, 2013, respectively, primarily due to reversal of warranty reserves and legal-related contingencies associated with previously disposed businesses.

On November 13, 2012, the Company completed the sale of its shape cutting product lines, including the Kaliburn and Burny brands as well as the web tension control products and custom engineered systems sold under the Cleveland Motion Controls brand (collectively referred to herein as the Shape Cutting Businesses). Subsequent to this divestiture, we do not have any significant continuing involvement in the operations of these businesses, nor do we expect significant continuing cash flows. Accordingly, the results of operations and cash flows of the Shape Cutting Businesses are reported as a discontinued operation in all periods presented. The table below provides the results of discontinued operations and certain transformation costs that were incurred in 2012 by ITT but qualified for classification within discontinued operations.

Three Months Ended June 30, 2012	Shape Cutting Businesses		Other(a)		Total
Revenue	$	9.6	$	—	$	9.6
Transformation costs	—		0.8		0.8
Earnings before income taxes	0.6		1.2		1.8
Income tax expense	0.3		0.9		1.2
Income from discontinued operations	0.3		0.3		0.6

Six Months Ended June 30, 2012	Shape Cutting Businesses		Other(a)			Total
Revenue	$	18.4	$	—		$	18.4
Transformation costs	—		8.2			8.2
Earnings (loss) before income taxes	0.4		(7.1		)	(6.7		)
Income tax expense (benefit)	0.3		(0.3		)	—
Income (loss) from discontinued operations	0.1		(6.8		)	(6.7		)

(a) Amounts presented in the “Other” column relate to various divested ITT businesses accounted for as discontinued operations in the year of divestiture for which legacy liabilities remain, as well as certain costs to create a revised organizational structure (referred to as transformation costs) following the spin-offs of Exelis Inc. and Xylem Inc. in the fourth quarter of 2011. Transformation costs included in discontinued operations provide no future benefit to the Company.