SPECIAL CHARGES

9 Months Ended

Oct. 01, 2011

SPECIAL CHARGES

SPECIAL CHARGES

(5)           SPECIAL CHARGES

Special charges, net, for the three and nine months ended October 1, 2011 and October 2, 2010, are summarized and described in more detail below:

	Three months ended				Nine months ended
	October 1,		October 2,		October 1,		October 2,
	2011		2010		2011		2010
Flow Technology	$	5.6	$	2.0	$	9.4	$	8.5
Test and Measurement	0.5		2.7		6.0		6.0
Thermal Equipment and Services	—		3.6		1.8		4.8
Industrial Products and Services	1.5		—		2.3		—
Corporate	0.1		0.6		0.2		0.8
Total	$	7.7	$	8.9	$	19.7	$	20.1

Flow Technology segment — Charges for the three months ended October 1, 2011 related primarily to headcount reductions at facilities in Germany and China, and lease exit costs for a facility in Denmark. In addition, charges for the nine months ended October 1, 2011 included charges related to the integration of Anhydro and Gerstenberg, the reorganization of the segment’s systems business, the transition of certain European back-office positions to the shared service center in Manchester, United Kingdom, and additional costs associated with restructuring activities initiated in 2010. Charges for the three and nine months ended October 2, 2010 related primarily to headcount reduction costs at various facilities in Europe, lease exit costs for one facility in Australia and two facilities in New Zealand, additional costs associated with restructuring activities initiated in 2009, and impairment charges associated with an idle facility in Lake Mills, WI ($0.1 and $1.1 for the three and nine months ended October 2, 2010, respectively), as well as costs associated with the segment’s regional reorganization and the movement of certain functions to the new European shared service center in Manchester, United Kingdom.

Test and Measurement segment — Charges for the three and nine months ended October 1, 2011 and October 2, 2010 related primarily to costs associated with headcount reductions and consolidation activities for a number of domestic and foreign facilities. In addition, during the nine months ended October 1, 2011, the segment recorded an impairment charge of $3.7 associated with the rationalization of certain software assets that occurred as a result of the integration of the DS acquisition. Lastly, charges for the three and nine months ended October 2, 2010 included facility impairment charges of $1.6.

Thermal Equipment and Services segment — Charges for the nine months ended October 1, 2011 related primarily to costs associated with headcount reductions at facilities in Germany and Italy and lease exit costs associated with two facilities in Germany. Charges for the three and nine months ended October 2, 2010 related primarily to costs associated with headcount reductions at facilities in China, Europe and Tulsa, OK. Additionally, charges for the nine months ended October 2, 2010 included fixed asset impairment charges of $1.0.

Industrial Products and Services segment — Charges for the three months ended October 1, 2011 related primarily to costs associated with headcount reductions at a facility in Raymond, ME. Charges for the nine months ended October 1, 2011 also included an impairment charge of $0.8.

Corporate — Charges for the three and nine months ended October 1, 2011 related primarily to our legal entity reduction initiative. Charges for the three and nine months ended October 2, 2010 related primarily to asset impairment charges of $0.6 and our legal entity reduction initiative.

The following is an analysis of our restructuring and integration liabilities for the nine months ended October 1, 2011 and October 2, 2010:

	Nine months ended
	October 1,			October 2,
	2011			2010
Beginning balance	$	20.7		$	26.0
Special charges (1)	15.1			15.8
Adjustments related to acquisition accounting	—			0.4
Utilization — cash	(21.2		)	(22.5		)
Currency translation adjustment and other	0.6			(0.1		)
Ending balance	$	15.2		$	19.6

(1) The nine months ended October 1, 2011 and October 2, 2010 exclude $4.6 and $4.3, respectively, of non-cash special charges that impact special charges but not the restructuring and integration related liabilities.