Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

In January 2012, the Company completed the sale of its integrated scanning system business (the Accu-Sort ("ASI") business) for a sale price of $132 million in cash. In addition, in February 2012, the Company completed the sale of its Kollmorgen Electro-Optical ("KEO") business for a sale price of $205 million in cash. These businesses were part of the Industrial Technologies segment. ASI supplies bar code scanning and dimensional measurement systems and KEO designs, develops, manufactures and integrates highly engineered, stabilized electro-optical/ISR systems that integrate into submarines, surface ships, and combat and ground vehicles. The businesses had combined annual revenues of $275 million in 2011. The Company recorded an aggregate after-tax gain on the sale of these businesses of $94 million or $0.13 per diluted share in its first quarter 2012 results.

In April 2011, the Company completed the divestiture of its Pacific Scientific Aerospace (“PSA”) business for a sale price of $680 million in cash. This business, which was also part of the Industrial Technologies segment and supplies safety, security and electric power components to commercial and military aerospace markets globally, had annual revenues of $377 million in 2010. The Company recorded an after-tax gain on the sale of PSA of $202 million or $0.29 per diluted share in its second quarter 2011 results.

The Company has reported the PSA, ASI and KEO businesses as discontinued operations in its consolidated financial statements. Accordingly, the results of operations for all periods presented reflect these businesses as discontinued operations and the assets and liabilities of these businesses have been classified as held for sale for all periods presented. The Company allocated a portion of the consolidated interest expense to discontinued operations based on the ratio of the discontinued businesses’ net assets to the Company’s consolidated net assets.

The key components of income from discontinued operations for the years ended December 31 were as follows ($ in millions):

	2012			2011			2010
Net sales	$	9.9		$	385.8		$	652.6
Operating expenses	(11.2		)	(328.3		)	(535.9		)
Allocated interest expense	—			(2.0		)	(3.6		)
(Loss) earnings before income taxes	(1.3		)	55.5			113.1
Income tax benefit (expense)	0.5			(20.2		)	(38.3		)
(Loss) earnings from discontinued operations	(0.8		)	35.3			74.8
Gain on sale, net of $55.0 million and $126.0 million of related income taxes for the years ended December 31, 2012 and 2011, respectively	93.7			201.7			—
Earnings from discontinued operations, net of income taxes	$	92.9		$	237.0		$	74.8

As of December 31, 2011, the aggregate components of assets and liabilities classified as discontinued operations and included in other current assets and other current liabilities consisted of the following ($ in millions):

Trade accounts receivable, net	$	82.7
Inventories	10.5
Prepaid expenses and other	9.3
Property, plant & equipment, net	31.5
Goodwill and other intangibles, net	104.0
Total assets	$	238.0
Trade accounts payable	$	32.7
Accrued expenses and other	47.8
Total liabilities	$	80.5