Investment in Joint Venture

12 Months Ended

Dec. 31, 2012

Investment in Joint Venture

Investment in Joint Venture

(9)   Investment in Joint Venture

        We have a joint venture, EGS, with Emerson Electric Co., in which we hold a 44.5% interest. Emerson Electric Co. controls and operates the joint venture. EGS operates primarily in the United States, Brazil, Canada and France and is engaged in the manufacture of electrical fittings, hazardous location lighting and power conditioning products. We account for our investment under the equity method, on a three-month lag basis, and we typically receive our share of the joint venture's earnings in cash dividends paid quarterly. EGS's results of operations and selected other information for its fiscal years ended September 30, 2012, 2011 and 2010 were as follows:

	2012		2011		2010
Net sales	$	527.0	$	495.3	$	445.4
Gross profit		221.9		201.5		189.2
Net income		87.9		63.7		62.7
Capital expenditures		12.0		16.7		11.9
Depreciation and amortization		10.4		10.3		9.6
Dividends received by SPX		35.2		29.4		30.3
Undistributed earnings attributable to SPX Corporation		8.4		4.6		5.5
SPX's equity earnings in EGS		39.0		28.7		28.8

        Condensed balance sheet information of EGS as of September 30, 2012 and 2011 was as follows:

	2012		2011
Current assets	$	183.5	$	179.7
Non-current assets		339.6		342.5
Current liabilities		116.9		128.0
Non-current liabilities		33.0		30.1

        The carrying value of our investment in EGS was $73.5 and $68.9 at December 31, 2012 and 2011, respectively, and is recorded in "Other assets" in our consolidated balance sheets. We contributed non-monetary assets to EGS upon its formation. We recorded these contributed assets at their historical cost while EGS recorded these assets at their fair value. As a result of this basis difference in the goodwill recorded by EGS upon formation, our investment in EGS is less than our proportionate share of EGS's net assets, with such difference totaling $82.9 at December 31, 2012. During the second quarter of 2010, EGS acquired Nutsteel Industria Metalurgica Ltda for $35.4. We contributed $15.8 to EGS to fund our portion of the acquisition price.

        The financial position, results of operations and cash flows of our other equity method investments are not material, on an individual or aggregate basis, in relation to our consolidated financial statements.