Document and Company Informatio
Document and Company Information (USD $) | |||
In Billions, except Share data in Millions | 12 Months Ended
Dec. 31, 2009 | Jun. 30, 2009
| Jan. 29, 2009
|
Document and Company Information [Abstract] | |||
Entity Registrant Name | ITT CORP | ||
Entity Central Index Key | 0000216228 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | 8.1 | ||
Entity Common Stock, Shares Outstanding | 182.9 |
Consolidated Income Statements
Consolidated Income Statements (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Consolidated Income Statements | |||
Product revenue | 8243.5 | 9181.2 | 7057.5 |
Service revenue | 2,661 | 2513.6 | 1945.8 |
Total revenue | 10904.5 | 11694.8 | 9003.3 |
Cost of product revenue | 5527.6 | 6255.1 | 4746.4 |
Cost of service revenue | 2316.2 | 2184.3 | 1688.6 |
Total costs of revenue | 7843.8 | 8439.4 | 6,435 |
Gross profit | 3060.7 | 3255.4 | 2568.3 |
Selling, general and administrative expenses | 1576.4 | 1709.2 | 1328.9 |
Research and development expenses | 258.1 | 244.3 | 182.3 |
Asbestos-related costs, net | 237.5 | 14.3 | 13.8 |
Restructuring and asset impairment charges, net | 79.3 | 77.5 | 66.1 |
Operating income | 909.4 | 1210.1 | 977.2 |
Interest expense | 99.5 | 140.8 | 114.9 |
Interest income | 24.3 | 31.3 | 49.6 |
Miscellaneous expense, net | 9 | 13.1 | 13.4 |
Income from continuing operations before income tax expense | 825.2 | 1087.5 | 898.5 |
Income tax expense | 174.5 | 312.3 | 265.5 |
Income from continuing operations | 650.7 | 775.2 | 633 |
Discontinued operations: | |||
(Loss) income from discontinued operations, including tax benefit of $5.1, $6.9 and $26.1, respectively | (7) | 19.5 | 109.1 |
Net income | 643.7 | 794.7 | 742.1 |
Income from continuing operations: | |||
Basic | 3.56 | 4.26 | 3.49 |
Diluted | 3.54 | 4.21 | 3.43 |
Discontinued operations: | |||
Basic | -0.03 | 0.11 | 0.6 |
Diluted | -0.04 | 0.11 | 0.59 |
Net income: | |||
Basic | 3.53 | 4.37 | 4.09 |
Diluted | 3.5 | 4.32 | 4.02 |
Cash dividends declared per common share | 0.85 | 0.7 | 0.56 |
Average Common Shares - Basic | 182.5 | 181.9 | 181.5 |
Average Common Shares - Diluted | 183.9 | 184 | 184.5 |
Consolidated Income Statements
Consolidated Income Statements (Parenthetical) (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Consolidated Income Statements | |||
Tax benefit from discontinued operations | 5.1 | 6.9 | 26.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net income | 643.7 | 794.7 | 742.1 |
Other comprehensive income: | |||
Net foreign currency translation adjustments | 126.2 | -221.2 | 276.1 |
Changes in postretirement benefit plans, net of tax expense (benefit) of $88.8, $(781.1) and $126.3, respectively | 145.9 | -1337.7 | 300.9 |
Unrealized gain (loss) on investment securities, net of tax expense of $7.5, $0.0 and $0.5, respectively | 11.5 | -0.1 | 1 |
Other comprehensive income (loss) | 283.6 | (1,559) | 578 |
Comprehensive income (loss) | 927.3 | -764.3 | 1320.1 |
1_Consolidated Statements of Co
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Consolidated Statements of Comprehensive Income (Loss) | |||
Tax expense (benefit) of changes in postretirement benefit plans | 88.8 | -781.1 | 126.3 |
Tax expense of unrealized gain (loss) on investment securities | 7.5 | 0.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | |||||||||||||||||||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
| |||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | 1215.6 | 964.9 | |||||||||||||||||
Receivables, net | 1796.7 | 1961.1 | |||||||||||||||||
Inventories, net | 802.3 | 803.8 | |||||||||||||||||
Deferred income taxes | 234.1 | 203.4 | |||||||||||||||||
Other current assets | 207.1 | 131 | |||||||||||||||||
Total current assets | 4255.8 | 4064.2 | |||||||||||||||||
Plant, property and equipment, net | 1,051 | 993.9 | |||||||||||||||||
Deferred income taxes | 583.2 | 608.5 | |||||||||||||||||
Goodwill | 3,864 | 3831.3 | |||||||||||||||||
Other intangible assets, net | 518.9 | 616.5 | |||||||||||||||||
Asbestos-related assets | 604.3 | 201.2 | |||||||||||||||||
Other non-current assets | 251.9 | 164.6 | |||||||||||||||||
Total non-current assets | 6873.3 | 6,416 | |||||||||||||||||
Total assets | 11129.1 | 10480.2 | |||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||
Accounts payable | 1291.3 | 1234.6 | |||||||||||||||||
Accrued expenses | 1034.7 | 991.2 | |||||||||||||||||
Accrued taxes | 105 | 30.2 | |||||||||||||||||
Short-term debt and current maturities of long-term debt | 75 | 1,679 | |||||||||||||||||
Postretirement benefits | 73.2 | 68.8 | |||||||||||||||||
Deferred income taxes | 36.4 | 26.7 | |||||||||||||||||
Total current liabilities | 2615.6 | 4030.5 | |||||||||||||||||
Postretirement benefits | 1788.5 | 2141.6 | |||||||||||||||||
Long-term debt | 1430.8 | 467.9 | |||||||||||||||||
Asbestos-related liabilities | 867.2 | 225.9 | |||||||||||||||||
Other non-current liabilities | 548.7 | 554.4 | |||||||||||||||||
Total non-current liabilities | 4635.2 | 3389.8 | |||||||||||||||||
Total liabilities | 7250.8 | 7420.3 | |||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||
Common stock: Authorized - 500 shares, $1 par value per share, outstanding - 182.9 shares and 181.7 shares, respectively(1) | 181.6 | [1] | 180.6 | [1] | |||||||||||||||
Retained earnings | 4736.8 | 4,203 | |||||||||||||||||
Accumulated other comprehensive (loss) income: | |||||||||||||||||||
Postretirement benefits | -1388.2 | -1534.1 | |||||||||||||||||
Cumulative translation adjustments | 336 | 209.8 | |||||||||||||||||
Unrealized gain on investment securities | 12.1 | 0.6 | |||||||||||||||||
Total accumulated other comprehensive loss | -1040.1 | -1323.7 | |||||||||||||||||
Total shareholders' equity | 3878.3 | 3059.9 | |||||||||||||||||
Total liabilities and shareholders' equity | 11129.1 | 10480.2 | |||||||||||||||||
[1]Shares outstanding include unvested restricted common stock of 1.3 and 1.1 at December 31, 2009 and 2008, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
Share data in Millions | Dec. 31, 2009
| Dec. 31, 2008
|
Common stock: | ||
Common stock, Par value per share | 1 | 1 |
Common stock, Shares authorized | 500 | 500 |
Common stock, Shares outstanding | 182.9 | 181.7 |
Common stock, Unvested restricted common stock included in shares outstanding | 1.3 | 1.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Operating Activities | |||
Net income | 643.7 | 794.7 | 742.1 |
Less: (Loss) income from discontinued operations | (7) | 19.5 | 109.1 |
Income from continuing operations | 650.7 | 775.2 | 633 |
Adjustments to income from continuing operations: | |||
Depreciation and amortization | 292.6 | 278.3 | 185.4 |
Stock-based compensation | 31.3 | 30.8 | 34.6 |
Asbestos-related costs, net | 237.5 | 14.3 | 13.8 |
Restructuring and asset impairment charges, net | 79.3 | 77.5 | 66.1 |
Payments for restructuring | -81.9 | -54.1 | -51.5 |
Contributions to pension plans | (161) | -24.1 | -83.1 |
Change in receivables | 187.2 | -112.9 | -236.7 |
Change in inventories | 20.9 | 70.4 | 111.8 |
Change in accounts payable | 29.9 | -40.4 | 153 |
Change in accrued expenses | 3 | 101.7 | -15.8 |
Change in accrued and deferred taxes | -9.2 | 19.7 | -34.1 |
Change in other assets | -21.2 | (6) | -9.1 |
Change in other liabilities | -13.1 | -6.9 | 19.6 |
Other, net | 23.7 | -3.9 | 11.1 |
Net Cash - Operating activities | 1269.7 | 1119.6 | 798.1 |
Investing Activities | |||
Capital expenditures | -271.6 | -248.7 | -239.3 |
Acquisitions, net of cash acquired | -34.3 | -275.7 | -2009.2 |
Proceeds from sale of assets and businesses | 20.6 | 21.6 | 283.6 |
Other, net | 0.2 | -0.1 | 6.8 |
Net Cash - Investing activities | -285.1 | -502.9 | -1958.1 |
Financing Activities | |||
Short-term debt, net | (1,603) | (1,229) | 2311.9 |
Long-term debt repaid | -29.3 | -23.3 | -15.2 |
Long-term debt issued | 992.5 | 0.6 | 0.5 |
Repurchase of common stock | (75) | (299) | |
Proceeds from issuance of common stock | 14.7 | 34.4 | 65.4 |
Dividends paid | -147.9 | -120.9 | -96.6 |
Tax benefit from stock option exercises and restricted stock award lapses | 3 | 6.7 | 15 |
Other, net | -1.9 | -0.9 | -0.9 |
Net Cash - Financing activities | -771.9 | -1407.4 | 1981.1 |
Exchange Rate Effects on Cash and Cash Equivalents | 40 | -73.4 | 103 |
Net Cash - Discontinued Operations: | |||
Operating Activities | (2) | -9.1 | -16.2 |
Investing Activities | -1.9 | (4) | |
Financing Activities | (1) | ||
Net change in cash and cash equivalents | 250.7 | -875.1 | 902.9 |
Cash and cash equivalents - beginning of year | 964.9 | 1,840 | 937.1 |
Cash and Cash Equivalents - End of Year | 1215.6 | 964.9 | 1,840 |
Cash paid during the year for: | |||
Interest | 89.6 | 135.5 | 96 |
Income taxes (net of refunds received) | 181.7 | 281.6 | 313.6 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity (USD $) | ||||
In Millions | Common Stock
| Retained Earnings
| Accumulated Other Comprehensive (Loss) Income
| Total
|
Beginning balance, shares at Dec. 31, 2006 | 182.6 | 182.6 | ||
Beginning balance at Dec. 31, 2006 | 182.6 | 3029.5 | -342.7 | 2869.4 |
Shares: | ||||
Stock incentive plans, shares | 2.2 | 2.2 | ||
Repurchases, shares | -4.1 | -4.1 | ||
Dollars: | ||||
Stock incentive plans | 2.2 | 2.2 | ||
Repurchases | -4.1 | -4.1 | ||
Net income | 742.1 | 742.1 | ||
Cash dividends declared on common stock | -101.7 | -101.7 | ||
Net repurchase of common stock and other | -141.1 | -141.1 | ||
Change in pension and other benefits plans, net of tax | 300.9 | 300.9 | ||
Change in foreign currency translation | 276.1 | 276.1 | ||
Change in unrealized (loss) gain on investment securities, net of tax | 1 | 1 | ||
Ending balance, shares at Dec. 31, 2007 | 180.7 | 180.7 | ||
Ending balance at Dec. 31, 2007 | 180.7 | 3528.8 | 235.3 | 3944.8 |
Shares: | ||||
Stock incentive plans, shares | 1.1 | 1.1 | ||
Repurchases, shares | -1.2 | -1.2 | ||
Dollars: | ||||
Stock incentive plans | 1.1 | 1.1 | ||
Repurchases | -1.2 | -1.2 | ||
Net income | 794.7 | 794.7 | ||
Cash dividends declared on common stock | -127.3 | -127.3 | ||
Net repurchase of common stock and other | 6.8 | 6.8 | ||
Change in pension and other benefits plans, net of tax | -1337.7 | -1337.7 | ||
Change in foreign currency translation | -221.2 | -221.2 | ||
Change in unrealized (loss) gain on investment securities, net of tax | -0.1 | -0.1 | ||
Ending balance, shares at Dec. 31, 2008 | 180.6 | 180.6 | ||
Ending balance at Dec. 31, 2008 | 180.6 | 4,203 | -1323.7 | 3059.9 |
Shares: | ||||
Stock incentive plans, shares | 1 | 1 | ||
Dollars: | ||||
Stock incentive plans | 1 | 1 | ||
Net income | 643.7 | 643.7 | ||
Cash dividends declared on common stock | -155.1 | -155.1 | ||
Net repurchase of common stock and other | 45.2 | 45.2 | ||
Change in pension and other benefits plans, net of tax | 145.9 | 145.9 | ||
Change in foreign currency translation | 126.2 | 126.2 | ||
Change in unrealized (loss) gain on investment securities, net of tax | 11.5 | 11.5 | ||
Ending balance, shares at Dec. 31, 2009 | 181.6 | 181.6 | ||
Ending balance at Dec. 31, 2009 | 181.6 | 4736.8 | -1040.1 | 3878.3 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE1 Summary of Significant Accounting Policies Consolidation Principles ITT Corporation is a global multi-industry leader in high-technology engineering and manufacturing, operating through three principal business segments; Defense Electronics Services (Defense segment), Fluid Technology (Fluid segment) and Motion Flow Control (Motion Flow segment). The Consolidated Financial Statements include the accounts of ITT Corporation and all majority-owned subsidiaries, and are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Unless the context otherwise indicates, references herein to ITT, the Company, and such words as we, us, and our include ITT Corporation and its subsidiaries. ITT consolidates companies in which it owns more than 50% of the voting shares or we are considered the primary beneficiary. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. All intercompany transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Significant estimates and assumptions are used for, but not limited to, revenue recognition, pension benefits, income tax contingency accruals and valuation allowances, asbestos-related liabilities and insurance recoveries, asset impairment, and product liability and other litigation-related accruals. Actual results could differ from these estimates. Revenue Recognition ITT recognizes revenue as services are rendered and when title transfers for products, subject to any special terms and conditions of specific contracts. The Defense segment and certain businesses within the Fluid segment generally recognize revenue and anticipated profits under long-term fixed-price contracts based on the units of delivery, the completion of scheduled performance milestones, or percentage of costs incurred to total costs. Estimated contract profits are recorded into earnings in proportion to recorded revenue. During the performance of such contracts, estimated final contract prices and costs are periodically reviewed and revisions are made as required. The effect of these revisions to estimates is included in earnings in the period in which the revisions are made. Revenue under cost-reimbursement contracts are recorded as costs are incurred and include estimated earned fees or profits calculated on the basis of the relationship between costs incurred and total estimated costs. For time-and-material contracts, revenue is recognized to the extent of billable rates times hours incurred plus material and ot |
New Accounting Pronouncements
New Accounting Pronouncements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | NOTE2 New Accounting Pronouncements On July1, 2009, the GAAP hierarchy was codified under the Accounting Standards Codification (Codification or ASC). The Codification is now considered the single source of authoritative U.S.accounting and reporting standards, except for additional authoritative rules and interpretive releases issued by the Securities and Exchange Commission (SEC). The Codification was developed to provide a logical organization of GAAP pronouncements by topic. Pronouncements Not Yet Adopted In October 2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2009-13, which amended the accounting requirements for multiple element arrangements under the Revenue Recognition Topic, ASC 605-25. The objective of this update is to address the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than as a combined unit. The amendments establish a hierarchy for determining the selling price of a deliverable and will allow for the separation of products and services in more instances than previously permitted. The guidance provided within ASU 2009-13 is effective for fiscal years beginning on or after June15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We are currently evaluating the impact that adoption of this guidance will have on our Consolidated Financial Statements. In October 2009, the FASB issued ASU 2009-14 which amended the accounting requirements for revenue recognition under the Software Topic, ASC 985-605. The objective of this update is to address the accounting for revenue arrangements that contain tangible products and software. Specifically, products that contain software that is more than incidental to the product as a whole will be removed from the scope of ASC subtopic 985-605. The amendments align the accounting for these revenue transaction types with the amendments under ASU 2009-13 mentioned above. The guidance provided within ASU 2009-14 is effective for fiscal years beginning on or after June15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We are currently evaluating the impact that adoption of this guidance will have on our Consolidated Financial Statements. Effective January1, 2010, the Consolidation Topic, ASC 810-10 Variable Interest Entities, amends requirements pertaining to the consolidation of variable interest entities (VIE(s)). The amendments include replacing the quantitative-based risks and rewards calculation for determining which enterprise, if any, has a controlling financial interest in a VIE(s) with an approach focused on identifying which enterprise has the power to direct the activities of a VIE(s) that most significantly impact the entitys economic performance and (1)the obligation to absorb losses of the entity or (2)the right to receive benefits from the entity. In addition, the amended guidance will require ongoing assessments of whether an enterprise is the primary beneficiary of a VIE(s) and requires additional disclosures a |
Acquisitions
Acquisitions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Acquisitions [Abstract] | |
Acquisitions | NOTE3 Acquisitions 2009 Acquisitions During 2009, we spent $34.3, net of cash acquired, on acquisitions that were not material individually or in the aggregate to our results of operations or financial position. The most significant of these acquisitions was Laing GmbH (Laing), which we acquired in May of 2009. Laing, a privately held producer of energy-efficient circulator pumps primarily used in residential and commercial plumbing and heating, ventilating and air conditioning systems, was fully integrated into the Fluid segment during 2009. 2008 Acquisitions During 2008, we spent $49.2, net of cash acquired, on acquisitions that were not material individually or in the aggregate to our results of operations or financial position. Additionally, we spent $226.5 in connection with companies acquired during 2007. See below for further information. 2007 Acquisitions EDO Corporation On December 20, 2007, ITT acquired all of the outstanding shares of EDO Corporation (EDO), a global aerospace and defense company, for $56 per outstanding share of EDO plus the assumption of debt, which valued the transaction at approximately $1.8billion. There was no contingent consideration related to the acquisition. EDO designs and manufactures a diverse range of products for defense, intelligence and commercial markets, and provides related engineering and professional services. The addition of EDO allows our Defense segment to provide a broader set of solutions to a wider band of customers and improved our position to play an important role in some of the U.S.militarys vital transformational initiatives. ITTs results of operations for the year ended December31, 2007 reflect the impact of results of operations for EDO from December20, 2007. Goodwill of $1,237.0 was recorded within the Defense segment, in connection with the EDO acquisition, representing the excess of the purchase price over the fair value of net assets acquired. Intangible assets relating to this acquisition totaled $410.9, entirely consisting of customer relationships, with a weighted average amortization period of approximately 6years. The following table summarizes the fair values of the assets acquired and liabilities assumed in connection with the EDO acquisition. TOTAL IMPACT Current assets $ 534.6 Goodwill and intangible assets 1,647.9 Other non-current assets 107.4 Total assets acquired $ 2,289.9 Current liabilities $ 321.8 Long-term debt 567.0 Pension and other benefit plan obligations, long-term 60.8 Other long-term liabilities 151.8 Net assets acquired $ 1,188.5 Other 2007 Acquisitions During 2007, we spent $410.5, net of cash acquired, on acquisitions that were not material individually or in the aggregate to our results of operations or financial position. The most significant of these acquisitions was International Motion Control, Inc. (IMC), which we acquired on September10, 2 |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Restructuring and Asset Impairment Charges [Abstract] | |
Restructuring and Asset Impairment Charges | NOTE4 Restructuring and Asset Impairment Charges 2009 Restructuring Activities During 2009, we recorded a net restructuring charge of $79.3, reflecting costs of $70.7 related to new actions and $11.4 related to prior years plans, as well as the reversal of $2.8 of restructuring accruals that management determined would not be required. The charges associated with actions announced during 2009 primarily represent severance costs for reductions in headcount associated with the strategic relocation of certain production operations within our Fluid and Motion Flow segments to lower cost regions, as well as other various planned reductions in headcount associated with our lean fulfillment initiative. Planned position eliminations total 1,092, including 528 factory workers, 530 office workers and 34 management employees. The costs recognized during 2009 related to prior years plans of $11.4 primarily reflect additional severance and lease cancellation related costs. The following table details the components of restructuring charges recorded during 2009. 2009 ACTIONS PRIOR OTHER LEASE PLANNED YEARS PLANS EMPLOYEE- CANCELLATION ASSET POSITION ADDITIONAL REVERSAL OF COMPONENTS OF CHARGES SEVERANCE RELATED COSTS OTHER COSTS WRITE-OFFS TOTAL ELIMINATIONS COSTS ACCRUALS Fluid $ 31.0 $ 0.4 $ 2.4 $ 0.4 $ 34.2 506 $ 3.9 $ (1.3 ) Motion Flow 31.3 0.5 1.5 0.7 34.0 496 3.3 (0.7 ) Defense 1.3 0.3 1.6 79 4.2 (0.6 ) Corporate and Other 0.6 0.2 0.1 0.9 11 (0.2 ) $ 64.2 $ 1.1 $ 4.3 $ 1.1 $ 70.7 1,092 $ 11.4 $ (2.8 ) 2008 Restructuring Activities During 2008, we recorded a net restructuring charge of $74.6, reflecting costs of $66.9 related to new actions and $9.3 related to prior years plans, as well as the reversal of $1.6 of restructuring accruals that management determined would not be required. The charges associated with actions announced during 2008 primarily represent a reduction of structural costs in all business segments and the planned closure of a facility in the Motion Flow segment and a facility in the Defense segment. Planned position eliminations total 1,360, including |
Divestitures
Divestitures | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Divestitures [Abstract] | |
Divestitures | NOTE5 Divestitures We have not engaged in any divestiture actions that were material individually or in the aggregate to our results of operations or financial position, in either 2009 or 2008. We received proceeds from the sale of assets and businesses of $20.6 and $21.6 during 2009 and 2008, respectively. Amounts reported as discontinued operations within the Consolidated Income Statements for these years pertain to costs incurred on previously divested businesses that were reported as discontinued operations in the period of divestiture. During 2007, we sold the majority of the Switches businesses to a private equity firm, for net proceeds of $223.2, and an after-tax gain of $84.4. During the third quarter of 2008, we completed the sale of the remaining component of the Switches businesses to the same buyer, for net proceeds of $5.1. As a result, we recorded an after-tax gain on sale of $5.4 for the year ended December31, 2008. Revenue and operating income for the Switches businesses reported in discontinued operations were as follows: YEAR ENDED DECEMBER 31 2008 2007 Revenue $ 7.7 $ 177.8 Operating income $ 0.2 $ 11.0 |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | NOTE6 Income Taxes Income tax data from continuing operations is as follows: YEAR ENDED DECEMBER 31 2009 2008 2007 Income components: U.S. $ 447.1 $ 662.6 $ 454.9 Foreign 378.1 424.9 443.6 $ 825.2 $ 1,087.5 $ 898.5 Current provision: U.S. federal $ 130.9 $ 160.2 $ 89.8 State and local 8.2 4.8 8.1 Foreign 108.6 130.6 133.5 $ 247.7 $ 295.6 $ 231.4 Deferred benefit: U.S. federal $ (41.6 ) $ 23.0 $ 21.8 State and local (13.7 ) (0.4 ) 4.1 Foreign (17.9 ) (5.9 ) 8.2 (73.2 ) 16.7 34.1 Total income tax expense $ 174.5 $ 312.3 $ 265.5 A reconciliation of the tax provision for continuing operations at the U.S.statutory rate to the effective income tax expense rate as reported is as follows: YEAR ENDED DECEMBER 31 2009 2008 2007 Tax provision at U.S. statutory rate 35.0 % 35.0 % 35.0 % International restructurings (7.0 ) Foreign tax rate differential (4.3 ) (2.2 ) (1.4 ) Effect of repatriation of foreign earnings (0.4 ) (0.4 ) (0.7 ) State and local income tax (1.3 ) 0.4 1.4 Research credit (0.8 ) (0.2 ) (0.3 ) Tax examinations (4.9 ) Domestic manufacturing deduction (1.3 ) (0.3 ) (1.0 ) Tax account validation adjustment (3.8 ) Other 1.2 0.2 1.4 Effective income tax expense rate 21.1 % 28.7 % 29.5 % Deferred income taxes are established for temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and for tax reporting purposes and for carryforwards. Deferred tax assets and liabilities include the following: DECEMBER 31 2009 2008 Deferred Tax Assets: Employee benefits |
Earnings Per Share
Earnings Per Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE7 Earnings Per Share A reconciliation of the data used in the calculation of basic and diluted earnings per share computations for income from continuing operations is as follows: YEAR ENDED DECEMBER 31 2009 2008 2007 Basic Earnings Per Share: Income from continuing operations $ 650.7 $ 775.2 $ 633.0 Average common shares outstanding 182.5 181.9 181.5 Basic earnings per share $ 3.56 $ 4.26 $ 3.49 Diluted Earnings Per Share: Income from continuing operations $ 650.7 $ 775.2 $ 633.0 Average common shares outstanding 182.5 181.9 181.5 Add: Impact of stock options and restricted stock 1.4 2.1 3.0 Average common shares outstanding on a diluted basis 183.9 184.0 184.5 Diluted earnings per share $ 3.54 $ 4.21 $ 3.43 Shares underlying stock options excluded from the computation of diluted earnings per share because they were anti-dilutive were as follows: DECEMBER 31 2009 2008 2007 Stock options 1.7 4.1 0.5 Average exercise price $ 54.49 $ 49.29 $ 56.78 Years of expiration 2012- 2012- 2012- 2016 2015 2014 The amounts of anti-dilutive restricted common stock excluded from the computation of diluted earnings per share for 2009, 2008 and 2007 were insignificant. |
Receivables, Net
Receivables, Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Receivables, Net [Abstract] | |
Receivables, Net | NOTE8 Receivables, Net DECEMBER 31 2009 2008 Trade accounts receivable $ 1,390.7 $ 1,479.5 Unbilled contract receivable 404.1 465.9 Other 56.2 57.0 Receivables, gross 1,851.0 2,002.4 Less allowance for doubtful accounts and cash discounts (54.3 ) (41.3 ) Receivables, net $ 1,796.7 $ 1,961.1 Unbilled amounts represent revenue recognized on long-term contracts that arise based on performance attainment, though appropriately recognized, cannot be billed as of the balance sheet date. We expect to bill and collect substantially all of the December31, 2009 unbilled contract receivables during 2010 as scheduled performance milestones are completed or units are delivered. Our outstanding accounts receivable balance from the U.S.Government was $337.5 and $400.0 as of December31, 2009 and 2008, respectively. |
Inventories, Net
Inventories, Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Inventories, Net [Abstract] | |
Inventories, Net | NOTE9 Inventories, Net DECEMBER 31 2009 2008 Finished goods $ 176.7 $ 184.1 Work in process 56.7 74.9 Raw materials 253.2 303.1 486.6 562.1 Inventoried costs related to long-term contracts 390.4 322.6 Less progress payments (74.7 ) (80.9 ) Inventoried costs related to long-term contracts, net 315.7 241.7 Inventories, net $ 802.3 $ 803.8 Deferred production costs incurred within the Defense segment on in-process and delivered units in excess of the aggregate estimated average cost of those units was $21.4 and $34.2 as of December31, 2009 and 2008, respectively. |
Plant, Property and Equipment,
Plant, Property and Equipment, Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Plant, Property and Equipment, Net [Abstract] | |
Plant, Property and Equipment, Net | NOTE10 Plant, Property and Equipment, Net DECEMBER 31 2009 2008 Land and improvements $ 57.0 $ 59.0 Buildings and improvements 609.5 575.9 Machinery and equipment 1,686.4 1,620.2 Furniture, fixtures and office equipment 221.0 230.9 Construction work in progress 156.6 132.4 Other 96.8 82.3 2,827.3 2,700.7 Less accumulated depreciation and amortization (1,776.3 ) (1,706.8 ) Plant, property and equipment, net $ 1,051.0 $ 993.9 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Goodwill and Other Intangible Assets, Net [Abstract] | |
Goodwill and Other Intangible Assets, Net | NOTE11 Goodwill and Other Intangible Assets, Net Changes in the carrying amount of goodwill for the years ended December31, 2009 and 2008 by business segment are as follows: MOTION CORPORATE DEFENSE FLUID FLOW AND OTHER TOTAL Balance as of January1, 2008 $ 2,176.8 $ 1,167.4 $ 480.5 $ 5.0 $ 3,829.7 Goodwill acquired during the period 7.0 16.2 23.2 Adjustments to purchase price allocations 34.0 3.0 37.0 Foreign currency translation (52.0 ) (5.2 ) (57.2 ) Other (0.2 ) (0.1 ) (1.1 ) (1.4 ) Balance as of December31, 2008 $ 2,210.6 $ 1,122.3 $ 493.4 $ 5.0 $ 3,831.3 Goodwill acquired during the period 17.3 17.3 Foreign currency translation 26.1 2.4 28.5 Other (2.2 ) (0.7 ) (10.2 ) (13.1 ) Balance as of December31, 2009 $ 2,208.4 $ 1,165.0 $ 485.6 $ 5.0 $ 3,864.0 Goodwill acquired during 2009 relates to the Laing acquisition. Amounts reported as Other relate primarily to the write-off of goodwill associated with various immaterial business divestitures occurring during 2009 and 2008. Information regarding our other intangible assets is as follows: GROSS CARRYING ACCUMULATED NET AMOUNT AMORTIZATION INTANGIBLES 2009 Finite-lived intangibles: Customer relationships $ 649.8 $ (243.1 ) $ 406.7 Proprietary technology 65.9 (23.9 ) 42.0 Trademarks 35.1 (7.9 ) 27.2 Patents and other 44.7 (20.0 ) 24.7 Indefinite-lived intangibles- Brands and trademarks 18.3 18.3 Balance as of December31, 2009 $ 813.8 $ (294.9 ) $ 518.9 2008 Finite-lived intangibles: Customer relationships $ 643.7 $ (149.9 ) $ 493.8 Proprietary technology 68.4 |
Other Non-Current Assets
Other Non-Current Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Non-Current Assets [Abstract] | |
Other Non-Current Assets | NOTE12 Other Non-Current Assets DECEMBER 31 2009 2008 Other employee benefit-related assets $ 86.8 $ 61.2 Capitalized software costs 65.1 26.4 Other long-term third party receivables-net 44.4 43.8 Equity method investments 27.4 8.4 Pension assets and prepaid benefit plan costs 16.3 1.7 Other 11.9 23.1 Other non-current assets $ 251.9 $ 164.6 ITT recorded sales to unconsolidated affiliates during 2009, 2008 and 2007 totaling $42.5, $17.3 and $13.7, respectively. Additionally, ITT purchased $33.5 of products from unconsolidated affiliates during 2009. For all investments in unconsolidated companies, our exposure is limited to the amount of the investment. All investments accounted for under the cost method generally represent voting rights interests of less than 20%. |
Leases and Rentals
Leases and Rentals | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Leases and Rentals [Abstract] | |
Leases and Rentals | NOTE13 Leases and Rentals ITT leases certain offices, manufacturing buildings, land, machinery, automobiles, aircraft, computers and other equipment. Such leases expire at various dates and may include renewal and payment escalation clauses. ITT often pays maintenance, insurance and tax expense related to leased assets. Rental expenses under operating leases were $141.3, $133.3 and $99.2, for 2009, 2008 and 2007, respectively. Future minimum operating lease payments under long-term operating leases as of December31, 2009 are shown below. 2010 $ 147.7 2011 114.6 2012 97.6 2013 67.4 2014 58.3 2015 and thereafter 235.6 Total minimum lease payments $ 721.2 |
Debt
Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Debt [Abstract] | |
Debt | NOTE14 Debt During 2009 we modified our debt structure through the issuance of $1.0billion of long-term debt and the repayment of a majority of our outstanding commercial paper balance. Further details surrounding the issuance are provided below. The following table provides outstanding debt balances by type as of December31, 2009 and 2008. 2009 2008 Commercial paper(a) $ 55.0 $ 1,618.7 Short-term loans 9.5 47.0 Current maturities of long-term debt and other 10.5 13.3 Short-term debt and current maturities of long-term debt $ 75.0 $ 1,679.0 Non-current maturities of long-term debt 1,391.8 417.3 Non-current capital leases 3.7 4.3 Deferred gain on interest rate swaps(b) 50.2 54.7 Unamortized discounts and debt issuance costs (14.9 ) (8.4 ) Long-term debt 1,430.8 467.9 Total debt $ 1,505.8 $ 2,146.9 (a) Our commercial paper program is performed under a five-year revolving credit agreement in the aggregate principal amount of $1.75billion. The intended purpose of this credit agreement is to provide additional liquidity as a source of funding for the commercial paper program, if needed. The interest rate for borrowings under the agreement is generally based on the London Interbank Offered Rate (LIBOR), plus a spread, which reflects ITTs debt rating. The weighted average interest rate for short-term borrowings was 0.21% and 6.17% at December31, 2009 and 2008, respectively. The commitment fee on the credit facility is 0.08% of the total commitment. The provisions of this agreement require that we maintain an adjusted EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) to interest expense ratio greater than 3.5:1. At December31, 2009 and 2008, we were in compliance with our financial covenants. (b) Deferred gain on terminated interest rate swaps is accreted into income over the remaining terms of the underlying debt, which mature at various dates through 2025. The following table summarizes the carrying and fair value of our long-term outstanding notes and debentures by maturity date for both December31, 2009 and 2008. The fair value of our short-term loans approximates carrying value. December31, 2009 December31, 2008 Interest Carrying Fair Carrying Fair Rate Value Value Value Value Notes and debentures: Maturity date May 2011 6.50 % $ 31.7 $ 31.8 $ 31.7 $ 31.7 July 2011 7.50 % |
Other Non-Current Liabilities
Other Non-Current Liabilities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Non-Current Liabilities [Abstract] | |
Other Non-Current Liabilities | NOTE15 Other Non-Current Liabilities DECEMBER 31 2009 2008 Deferred income taxes and other tax-related accruals $ 182.2 $ 182.9 Environmental 128.1 119.5 Compensation and other employee-related benefits 122.9 133.8 Product liability, guarantees and other legal matters 62.5 58.8 Other 53.0 59.4 Other non-current liabilities $ 548.7 $ 554.4 |
Employee Benefit Plans
Employee Benefit Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | NOTE16 Employee Benefit Plans Defined Contribution Plans ITT sponsors numerous defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. Several of the plans require us to match a percentage of the employee contributions up to certain limits. Matching contributions charged to income amounted to $53.3, $55.0 and $36.6 for 2009, 2008 and 2007, respectively. The ITT Stock Fund, an investment option under the ITT Salaried Investment and Savings Plan, is considered an Employee Stock Ownership Plan and, as a result, participants in the ITT Stock Fund may receive dividends in cash or may reinvest such dividends into the ITT Stock Fund. The ITT Stock Fund held approximately 9.2shares of ITT common stock at December31, 2009. Defined Benefit Plans Pension Plans ITT sponsors numerous defined benefit pension plans around the world, the most significant of which is the U.S. Salaried Retirement Plan. We fund employee pension benefits, except in some countries outside the U.S., where funding is not required. In addition to sponsored pension plans, certain employees participate in multi-employer pension plans sponsored by local or national unions. Our contribution to such plans amounted to $0.8, $0.6 and $0.8 for 2009, 2008 and 2007, respectively. Postretirement Health and Life Insurance Plans ITT provides health care and life insurance benefits for certain eligible employees upon retirement. We have pre-funded a portion of the health care and life insurance obligations, where such pre-funding can be accomplished on a tax-effective basis. Balance Sheet and Income Statement Items Changes in projected benefit obligations, plan assets, and funded status of the pension and other employee-related benefit plans (collectively, postretirement benefit plans) for the years ended 2009 and 2008 were as follows: PENSION OTHER BENEFITS 2009 2008 2009 2008 Change in benefit obligation Benefit obligation at beginning of year $ 5,323.0 $ 5,380.7 $ 702.7 $ 740.9 Service cost 98.7 98.9 6.9 7.6 Interest cost 329.3 324.7 42.0 41.9 Amendments made during the year/other 2.5 3.5 (11.7 ) (2.4 ) Actuarial loss (gain) 286.9 (9.9 ) 6.8 (36.6 ) Benefits paid (383.1 ) (359.8 ) (46.0 ) (48.7 ) Effect of currency translation 42.4 (115.1 ) Benefit obligation at end of year $ 5,699.7 $ 5,323.0 $ 700.7 $ 702.7 Change in plan assets Fair value of plan assets |
Long-Term Incentive Employee Co
Long-Term Incentive Employee Compensation | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Long-Term Incentive Employee Compensation [Abstract] | |
Long-Term Incentive Employee Compensation | NOTE17 Long-Term Incentive Employee Compensation Our long-term incentive awards program is comprised of three components: non-qualified stock options (NQOs), restricted stock awards and units (RSAs and RSUs, respectively), and a target cash award (TSR). We account for NQOs and RSAs as equity-based compensation awards. RSU and TSR awards are cash settled and accounted for as liability-based compensation. The NQO and RSA incentive plans provide for the awarding of options on common shares and restricted common shares to employees and non-employee directors. The ITT Amended and Restated 2003 Equity Incentive Plan (2003 Equity Incentive Plan) was approved by shareholders and established in May of 2003. The number of shares initially available for awards under this plan was 12.2. As of December31, 2009, 3.6shares were available for future grants. ITT makes available for the exercise of stock options or vesting of restricted shares by purchasing shares in the open market or by issuing shares from Treasury. The 2003 Equity Incentive Plan replaced the 2002 ITT Stock Option Plan for Non-Employee Directors, the ITT 1996 Restricted Stock Plan for Non-Employee Directors and the 1994 ITT Incentive Stock Plan on a prospective basis. All outstanding awards granted under these prior plans are vested and exercisable. No future grants will be made under these prior plans. Long-term incentive employee compensation costs are primarily recorded within SGA expenses, and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows: YEAR ENDED DECEMBER 31 2009 2008 2007 Compensation costs on equity-based awards $ 29.4 $ 31.5 $ 35.5 Compensation costs on liability-based awards 4.1 23.7 22.4 Total compensation costs, pre-tax $ 33.5 $ 55.2 $ 57.9 Future tax benefit $ 10.4 $ 18.2 $ 19.0 At December31, 2009, there was $38.1 of total unrecognized compensation cost related to non-vested awards granted under the stock option and restricted stock plans. This cost is expected to be recognized ratably over a weighted-average period of 1.7years. RSU compensation costs and the related number of units granted, settled and outstanding for each of the periods presented are not considered material. Non-Qualified Stock Options Options generally vest over or at the conclusion of a three year period and are exercisable in seven or ten-year periods, except in certain instances of death, retirement or disability. The exercise price per share is the fair market value of the underlying common stock on the date each option is granted. A summary of the status of our stock option and restricted stock shares as of December31, 2009, 2008 and 2007 and changes during the years then ended is presented below. |
Capital Stock
Capital Stock | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Capital Stock [Abstract] | |
Capital Stock | NOTE18 Capital Stock ITT has authority to issue an aggregate of 550shares of capital stock, of which 500shares have been designated as Common Stock having a par value of $1 per share and 50shares have been designated as Preferred Stock not having any par or stated value. There was no Preferred Stock outstanding as of December31, 2009 and 2008. As of December31, 2009 and 2008, 24.0 and 25.2shares of Common Stock were held in Treasury, respectively. |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE19 Commitments and Contingencies From time to time we are involved in legal proceedings that are incidental to the operation of our businesses. Some of these proceedings allege damages relating to environmental liabilities, intellectual property matters, copyright infringement, personal injury claims, employment and pension matters, government contract issues and commercial or contractual disputes, sometimes related to acquisitions or divestitures. We will continue to vigorously defend itself against all claims. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have any material adverse impact on our cash flow, results of operations, or financial condition on a consolidated basis in the foreseeable future, unless otherwise noted below. Asbestos Matters ITT, including its subsidiary Goulds Pumps, Inc. (Goulds), has been joined as a defendant with numerous other companies in product liability lawsuits alleging personal injury due to asbestos exposure. These claims allege that certain of our products sold prior to 1985 contained a part manufactured by a third party, e.g., a gasket, which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. In certain other cases, it is alleged that former ITT companies were distributors for other manufacturers products that may have contained asbestos. As of December31, 2009, there were 104,679 open claims against ITT filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: 2009 2008 Open claims* January 1 103,006 102,568 New claims 4,274 6,332 Settlements (1,081 ) (1,736 ) Dismissals (4,728 ) (4,158 ) Adjustment** 3,208 Open claims* December 31 104,679 103,006 * Excludes 34,813 claims related to maritime actions that have been placed on inactive dockets, which the Company believes will not be litigated. Almost all of these claims were filed in the United States District Court for the Northern District of Ohio and transferred to the Eastern District of Pennsylvania pursuant to an order by the Federal Judicial Panel on Multi-District Litigation (MDL). ** Reflects an adjustment to increase the number of open claims as a result of our transition to our own comprehensive database as we have assumed responsibility for administering our asbestos claims from our primary insurance companies. Frequently, the plaintiffs are unable to identify any ITT or Goulds product as a source of asbestos exposure. In addition, in a large majority of |
Guarantees, Indemnities and War
Guarantees, Indemnities and Warranties | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Guarantees, Indemnities and Warranties [Abstract] | |
Guarantees, Indemnities and Warranties | NOTE20 Guarantees, Indemnities and Warranties Guarantees Indemnities Since ITTs incorporation in 1920, we have acquired and disposed of numerous entities. The related acquisition and disposition agreements contain various representation and warranty clauses and may provide indemnities for a misrepresentation or breach of the representations and warranties by either party. The indemnities address a variety of subjects; the term and monetary amounts of each such indemnity are defined in the specific agreements and may be affected by various conditions and external factors. Many of the indemnities have expired either by operation of law or as a result of the terms of the agreement. We do not have a liability recorded for the historic indemnifications and are not aware of any claims or other information that would give rise to material payments under such indemnities. In December of 2007, we entered into a sale leaseback type agreement for our corporate aircraft, with the aircraft leased back under a five-year operating lease. We have provided, under the lease, a residual value guarantee to the counterparty in the amount of $41.7. We would have to make payments under the residual value guarantee only if the fair value of the aircraft was less than the residual value guarantee upon termination of the agreement. At December31, 2009, the projected fair value of the aircraft at the end of the lease is estimated to be $3.9 less than the residual value guarantee. However, since this estimated loss does not exceed the $5.4 gain we realized from the sale of the aircraft which has been deferred as a loss contingency for the residual value guarantee, we have not recorded any additional accrual in our financial statements. ITT has a number of individually immaterial guarantees outstanding at December31, 2009, that may be affected by various conditions and external forces, some of which could require that payments be made under such guarantees. We do not believe these payments will have any material adverse impact on the financial position, results of operations or cash flow on a consolidated basis in the foreseeable future. Product Warranties ITT warrants numerous products, the terms of which vary widely. In general, ITT warrants its products against defect and specific non-performance. In the automotive businesses, liability for product defects could extend beyond the selling price of the product and could be significant if the defect interrupts production or results in a recall. Changes in the product warranty accrual for December31, 2009 and 2008 were as follows: 2009 2008 Beginning balance January 1 $ 57.4 $ 52.1 Accruals for product warranties issued in the period 45.7 38.0 Changes in pre-existing warranties(1) (7.6 ) (0.3 ) Payments (29.3 ) (30.8 ) Foreign currency translation 1.1 (1.6 ) Ending balance December 31 $ 67.3 $ 57.4 (1) |
Business Segment Information
Business Segment Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Business Segment Information [Abstract] | |
Business Segment Information | NOTE21 Business Segment Information The Companys business segments are reported on the same basis used internally for evaluating performance and for allocating resources. Our three reporting segments are referred to as: Defense Electronics Services (Defense segment), Fluid Technology (Fluid segment), and Motion Flow Control (Motion Flow segment). Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges which occur from time to time related to certain matters, such as asbestos and environmental liabilities, that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources. Assets of the business segments exclude general corporate assets, which principally consist of cash, deferred tax assets, insurance receivables, certain property, plant and equipment, and certain other assets. Defense The businesses in this segment are those that directly serve the military and government agencies with products and services. These include air traffic control systems, jamming devices that guard military planes against radar-guided missiles, digital combat radios, night vision devices, satellite instruments, defense electronics, communications, aircraft armament systems, undersea warfare, integrated composite structures, and professional and engineering services. Approximately 39% of the sales and revenues in this business segment are generated through contracts for technical and support services which ITT provides for the military and other government agencies. The Defense segment had revenue from the U.S. Government of $5,789.8, $5,893.8 and $3,920.3, for 2009, 2008 and 2007, respectively. Apart from the U.S. Government, no other government or commercial customer accounted for more than 10% of revenue. The Defense segment comprises approximately 58% of consolidated revenue and 60% of segment operating income in 2009. Fluid Our Fluid segment is a provider of water and wastewater treatment systems, pumps and related technologies, and other water and fluid control products with residential, commercial, and industrial applications. This segment comprises approximately 31% of consolidated revenue and approximately 31% of segment operating income for 2009. Motion Flow Our Motion Flow segment is comprised of a group of businesses providing products and services for the areas of transportation, defense, aerospace, industrial, computer, telecommunications, marine and beverage. The Motion Flow businesses primarily serve the high end of their markets, with highly engineered products, high brand recognition, a focus on new product development and operational excellence. The Motion Flow segment comprises approximately 11% of consolidated revenue and approximately 9% of segment operating income for 2009. MOTION CORPORATE DEFENSE FLUID FLOW AND OTHER ELIMINATIONS TOTAL 2009 |
Quarterly Results for 2009 and
Quarterly Results for 2009 and 2008 (Unaudited) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Quarterly Results for 2009 and 2008 (Unaudited) [Abstract] | |
Quarterly Results for 2009 and 2008 (Unaudited) | NOTE22 Quarterly Results for 2009 and 2008 (Unaudited) FULL THREE MONTHS ENDED MAR.31 JUNE30 SEPT.30(a) DEC.31 YEAR 2009 Revenue $ 2,557.1 $ 2,780.0 $ 2,697.7 $ 2,869.7 $ 10,904.5 Gross profit 669.1 778.8 768.6 844.2 3,060.7 Income from continuing operations 186.5 202.6 66.0 195.6 650.7 Net income 184.1 201.4 59.0 199.2 643.7 Income from continuing operations per share Basic $ 1.02 $ 1.11 $ 0.36 $ 1.07 $ 3.56 Diluted $ 1.02 $ 1.10 $ 0.36 $ 1.06 $ 3.54 Net income per share Basic $ 1.01 $ 1.10 $ 0.32 $ 1.09 $ 3.53 Diluted $ 1.01 $ 1.10 $ 0.32 $ 1.08 $ 3.50 Common stock information price per share range: High $ 51.42 $ 46.91 $ 52.71 $ 56.95 $ 56.95 Low $ 31.94 $ 37.26 $ 41.15 $ 48.43 $ 31.94 Close $ 38.47 $ 44.50 $ 52.15 $ 49.74 $ 49.74 Dividends per share $ 0.2125 $ 0.2125 $ 0.2125 $ 0.2125 $ 0.85 2008 Revenue $ 2,806.4 $ 3,064.1 $ 2,879.3 $ 2,945.0 $ 11,694.8 Gross profit 760.9 867.1 810.7 816.7 3,255.4 Income from continuing operations 170.9 224.3 204.5 175.5 775.2 Net income 171.9 221.0 216.3 185.5 794.7 Income from continuing operations per share Basic $ 0.94 $ 1.23 $ 1.12 $ 0.97 $ 4.26 Diluted $ 0.93 $ 1.21 $ 1.11 $ 0.96 $ 4.21 Net income per share Basic $ 0.95 $ 1.21 $ 1.19 $ 1.02 $ 4.37 Diluted $ 0.93 $ 1.19 $ 1.17 $ 1.01 $ 4.32 Common stock information pr |
Subsequent Events
Subsequent Events | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE23 Subsequent Events On February17, 2010, the Company announced that it signed an agreement to purchase Nova Analytics Corporation (Nova), a privately held company. The purchase price is approximately $390, subject to normal and customary closing conditions. We expect that the purchase price will be funded through a mix of cash and commercial paper. Nova is a leading manufacturer of premium quality field, portable, on-line and laboratory analytical instruments used in water and wastewater, environmental, industrial, food and beverage, pharmaceutical and medical applications. Nova provides ITT brands, technologies, distribution and aftermarket content in the $6billion analytical instrumentation market. The addition of Nova will broaden the solutions we offer customers in key markets such as municipal water and wastewater, industrial processing, and food beverage. The transaction is projected to be completed by the end of March 2010 pending customary regulatory approvals. Nova employs approximately 725people across Germany, Norway, France, the United Kingdom, the United States and China. |