SPX (SPXC) 10-Q 28 Oct 09 2009 Q3 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 26, 2009	3 Months Ended Sep. 27, 2008	9 Months Ended Sep. 26, 2009	9 Months Ended Sep. 27, 2008
Statements of Operations
Revenues	1173.6	1481.9	3526.7	4331.8
Costs and expenses:
Cost of products sold	819	1040.1	2,492	3025.8
Selling, general and administrative	227.4	276	711.5	856.5
Intangible amortization	5.6	6.4	16	19.7
Special charges, net	19.3	4.8	54.5	9.7
Operating income	102.3	154.6	252.7	420.1
Other expense, net	-6.6	-10.7	-20.4	-9.2
Interest expense	-22.9	-28.3	-68.7	-88.7
Interest income	1.8	3.4	6	7.6
Equity earnings in joint ventures	5.6	9.9	21.9	33.1
Income from continuing operations before income taxes	80.2	128.9	191.5	362.9
Income tax provision	-29.4	-17.8	-63.3	-97.2
Income from continuing operations	50.8	111.1	128.2	265.7
Income (loss) from discontinued operations, net of tax	-1.9	1	-3.3	8.7
Gain (loss) on disposition of discontinued operations, net of tax	-16.9	6.2	-35.5	3.1
Income (loss) from discontinued operations, net of tax	-18.8	7.2	-38.8	11.8
Net income	32	118.3	89.4	277.5
Less: Net income (loss) attributable to noncontrolling interests	(14)	1.3	-14.4	4.3
Net income attributable to SPX Corporation common shareholders	46	117	103.8	273.2
Amounts attributable to SPX Corporation common shareholders:
Income from continuing operations, net of tax	48.5	110.2	126.8	263
Income (loss) from discontinued operations, net of tax	-2.5	6.8	(23)	10.2
Net income	$46	$117	103.8	273.2
Basic income per share of common stock
Income from continuing operations attributable to SPX Corporation common shareholders	0.99	2.03	2.57	4.9
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders	-0.05	0.13	-0.47	0.19
Net income per share attributable to SPX Corporation common shareholders	0.94	2.16	2.1	5.09
Weighted-average number of common shares outstanding - basic	49.17	54.244	49.378	53.688
Diluted income per share of common stock
Income from continuing operations attributable to SPX Corporation common shareholders	0.98	$2	2.55	4.81
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders	-0.05	0.12	-0.46	0.19
Net income per share attributable to SPX Corporation common shareholders	0.93	2.12	2.09	$5
Weighted-average number of common shares outstanding - diluted	49.65	55.091	49.781	54.629

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Sep. 26, 2009	Dec. 31, 2008
Current assets:
Cash and equivalents	438.1	475.9
Accounts receivable, net	1112.2	1,306
Inventories	592	666.8
Other current assets	124.9	180.6
Deferred income taxes	80.1	101.3
Assets of discontinued operations	46.6	108.2
Total current assets	2393.9	2838.8
Property, plant and equipment:
Land	38.3	36.3
Buildings and leasehold improvements	241.5	223.5
Machinery and equipment	713.5	677.9
Property, plant and equipment, gross	993.3	937.7
Accumulated depreciation	-472.9	-437.3
Property, plant and equipment, net	520.4	500.4
Goodwill	1815.2	1769.8
Intangibles, net	652.3	646.8
Other assets	390.1	382.3
TOTAL ASSETS	5771.9	6138.1
Current liabilities:
Accounts payable	480	633.7
Accrued expenses	984	1153.6
Income taxes payable	35	24.5
Short-term debt	45.4	112.9
Current maturities of long-term debt	76	76.4
Liabilities of discontinued operations	17.5	23.9
Total current liabilities	1637.9	2,025
Long-term debt	1,125	1155.4
Deferred and other income taxes	112.4	124
Other long-term liabilities	789.4	788.9
Total long-term liabilities	2026.8	2068.3
SPX Corporation shareholders' equity:
Common stock (97,192,972 and 49,270,311 issued and outstanding at September 26, 2009, respectively, and 96,523,058 and 51,128,448 issued and outstanding at December 31, 2008, respectively)	978.1	972.3
Paid-in capital	1416.1	1393.9
Retained earnings	2307.5	2240.5
Accumulated other comprehensive loss	-88.6	-179.9
Common stock in treasury (47,922,661 and 45,394,610 shares at September 26, 2009 and December 31, 2008, respectively)	-2523.5	(2,416)
Total SPX Corporation shareholders' equity	2089.6	2010.8
Noncontrolling interests	17.6	34
Total equity	2107.2	2044.8
TOTAL LIABILITIES AND EQUITY	5771.9	6138.1

1_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
	Sep. 26, 2009	Dec. 31, 2008
Balance Sheets
Common stock, number of shares issued	97,192,972	96,523,058
Common stock, number of shares outstanding	49,270,311	51,128,448
Common stock in treasury, number of shares	47,922,661	45,394,610

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	9 Months Ended Sep. 26, 2009	9 Months Ended Sep. 27, 2008
Cash flows from (used in) operating activities:
Net income	89.4	277.5
Less: Income (loss) from discontinued operations, net of tax	-38.8	11.8
Income from continuing operations	128.2	265.7
Adjustments to reconcile income from continuing operations to net cash from operating activities:
Special charges, net	54.5	9.7
Gain on sale of product line	-1.4
Deferred and other income taxes	9.5	-13.1
Depreciation and amortization	80	81.2
Pension and other employee benefits	40	41
Stock-based compensation	21.7	33.3
Other, net	17	19.2
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures:
Accounts receivable and other assets	98.4	-181.1
Inventories	45.4	-47.1
Accounts payable, accrued expenses, and other	-210.6	-45.6
Cash spending on restructuring actions	(47)	-13.9
Net cash from continuing operations	235.7	149.3
Net cash from discontinued operations	9.7	3.6
Net cash from operating activities	245.4	152.9
Cash flows from (used in) investing activities:
Proceeds from asset sales and other	2.9	1.3
Decrease in restricted cash	8.9
Business acquisitions and investments, net of cash acquired		-12.5
Capital expenditures	-59.7	-76.3
Net cash used in continuing operations	-47.9	-87.5
Net cash from discontinued operations (includes net cash proceeds from dispositions of $18.8 and $35.7 for the nine months ended September 26, 2009 and September 27, 2008, respectively)	18.2	30
Net cash used in investing activities	-29.7	-57.5
Cash flows from (used in) financing activities:
Borrowings under senior credit facilities	214	615
Repayments under senior credit facilities	-316.6	(600)
Borrowings under trade receivables agreement	127	261
Repayments under trade receivables agreement	(106)	(261)
Net repayments under other financing arrangements	-23.9	-52.6
Purchases of common stock	-113.2
Proceeds from the exercise of employee stock options and other, net of minimum tax withholdings paid on behalf of employees for net share settlements	0.3	80.1
Purchase of noncontrolling interest in subsidiary	-3.2
Dividends paid	-37.4	(40)
Net cash from (used in) continuing operations	(259)	2.5
Net cash from (used in) discontinued operations	0.2	-0.5
Net cash from (used in) financing activities	-258.8	2
Change in cash and equivalents due to changes in foreign currency exchange rates	5.3	14.9
Net change in cash and equivalents	-37.8	112.3
Consolidated cash and equivalents, beginning of period	475.9	354.1
Consolidated cash and equivalents, end of period	438.1	466.4
Cash and equivalents of continuing operations	438.1	466.4

3_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)
In Millions	9 Months Ended Sep. 26, 2009	9 Months Ended Sep. 27, 2008
Statements of Cash Flows
Net cash proceeds from dispositions of $18.8 and $35.7 for the nine months ended September 26, 2009 and September 27, 2008, respectively	18.8	35.7

BASIS OF PRESENTATION

BASIS OF PRESENTATION
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
BASIS OF PRESENTATION	(1) BASIS OF PRESENTATION We prepared the condensed consolidated financial statements pursuant to the rulesand regulations of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rulesand regulations, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States (GAAP) can be condensed or omitted. In our opinion, the financial statements include the adjustments (consisting only of normal and recurring items) necessary for their fair presentation and represent our accounts after the elimination of intercompany transactions. Investments in unconsolidated companies where we exercise significant influence but do not have control are accounted for using the equity method. Our only significant investment reported under the equity method is our 44.5% interest in the EGS Electrical Group, LLC and Subsidiaries (EGS) joint venture, which we account for on a three-month lag. EGSs revenues and our equity earnings from our investment in EGS totaled $93.2 and $5.2 and $142.9 and $9.6 for the three months ended September26, 2009 and September27, 2008, respectively. For the nine months ended September26, 2009 and September27, 2008, EGSs revenues and our equity earnings from our investment in EGS totaled $326.1 and $20.8 and $422.3 and $31.9, respectively. Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates. The unaudited information included in this Quarterly Report on Form10-Q should be read in conjunction with the consolidated financial statements contained in our 2008 Annual Report on Form10-K. Interim results are not necessarily indicative of expected results for a full year. We have reclassified certain prior year amounts to conform to the current year presentation, including the results of discontinued operations, the impact of the adoption of the noncontrolling interest amendments described in the Consolidation Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (Codification), and the impact of adoption of the amendments described in the Earnings Per Share Topic of the Codification. See Note 2 for further discussion of the impact of adopting new pronouncements under the Codification. Also, unless otherwise indicated, amounts provided in these Notes pertain to continuing operations (see Note 3 for information on discontinued operations). We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the calendar quarter. The interim closing dates for the first, second and third quarters of 2009 were March28, June27 and September26, compared to March29, June28 and September27 for 2008, respectively. This practice only impacts the quarterly reporting periods and not the annual reporting period. We had two fewer days in the first quarter of 2009 and will have one additional day in the fourth quarter of 2009 when compared to the respectiv

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
NEW ACCOUNTING PRONOUNCEMENTS	(2) NEW ACCOUNTING PRONOUNCEMENTS The following is a summary of new accounting pronouncements that apply or may apply to our business. In December2007, the FASB issued guidance that requires an acquiring entity to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-date fair value with limited exceptions. In addition, under this guidance acquisition costs are required to be expensed as incurred, acquired contingent liabilities will be recorded at fair value at the acquisition date and subsequently measured at either the higher of such amount or the amount determined under existing guidance for non-acquired contingencies, in-process research and development will be recorded at fair value as an indefinite-lived intangible asset (until completion or abandonment of the research and development efforts) at the acquisition date, restructuring costs associated with a business combination will be generally expensed subsequent to the acquisition date and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. A substantial number of new disclosure requirements are also required under this guidance. The guidanceis effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December15, 2008. We adopted the guidance on January1, 2009 and we expect this statementwill have an impact on our consolidated financial statements for acquisitions consummated after January1, 2009, but the nature and magnitude of the specific effects will depend upon the terms and size of the acquisitions we consummate. In addition, during the first nine months of 2009, there were no settlements of acquisition related liabilities for unrecognized tax benefits or reductions of acquisition-related valuation allowances. In December2007, the FASB issued guidance which established new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. Specifically, noncontrolling interest (minority interest) is required to be recognized as equity in the consolidated financial statements and separate from the parents equity. The amount of net income attributable to the noncontrolling interest is to be included in consolidated net income on the face of the income statement. In addition, a parent is required to recognize a gain or loss in net income when a subsidiary is deconsolidated. Such gain or loss will be measured using the fair value of the noncontrolling equity investment on the deconsolidation date. The guidance establishes a single method of accounting for changes in a parents ownership interest in a subsidiary that do not result in deconsolidation by clarifying that all of those transactions are equity transactions if the parent retains its controlling financial interest in the subsidiary. Expanded disclosure requirements regarding the interests of the parent and the noncontrolling interest are required. The guidance is effective for fiscal years, and interim periods within tho

ACQUISITIONS AND DISCONTINUED O

ACQUISITIONS AND DISCONTINUED OPERATIONS
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
ACQUISITIONS AND DISCONTINUED OPERATIONS	(3) ACQUISITIONS AND DISCONTINUED OPERATIONS Acquisitions During September2008, our Test and Measurement segment completed the acquisition of AutoBoss Tech Inc., a China-based manufacturer of diagnostic tools and equipment serving Chinas vehicle maintenance and repair market, for a purchase price of $9.7. The acquired business had revenues of approximately $7.9 in the 12 months prior to its acquisition. Discontinued Operations As part of our operating strategy, we regularly review and negotiate potential divestitures, some of which are or may be material. As a result of this continuous review, we determined that certain of our businesses would be better strategic fits with other companies or investors. We report businesses or asset groups as discontinued operations when, among other things, we commit to a plan to divest the business or asset group, we actively begin marketing the business or asset group, and when the sale of the business or asset group is deemed probable within the next 12months. The following businesses, which have been sold, met these requirements, and therefore have been reported as discontinued operations for the periods presented: Business Quarter Discontinued ActualClosing DateofSale Dezurik Q3 2008 Q1 2009 Scales and Counting Systems business (Scales) Q3 2008 Q4 2008 Vibration Testing and Data Acquisition Equipment business (LDS) Q1 2008 Q4 2008 Air Filtration Q3 2007 Q3 2008 Dezurik Sold for total consideration of $23.5, including $18.8 in cash and a promissory note of $4.7, resulting in a loss, net of taxes, of $1.0 during the first quarter of 2009. During the second and third quarters of 2009, we recorded net charges of $0.2 and $0.3, respectively, in connection with adjustments to certain liabilities that we retained. During the fourth quarter of 2008, we recorded a net charge of $6.0 to Gain (loss) on disposition of discontinued operations, net of tax in order to reduce the carrying value of the net assets to be sold to their estimated net realizable value. Scales Sold for cash consideration of $16.8, resulting in a loss, net of taxes, of $1.2 and $3.5 during the third and fourth quarters of 2008, respectively. LDS Sold for cash consideration of $82.5, resulting in a gain, net of taxes, of $17.1 during the fourth quarter of 2008. During the first quarter of 2009, we recorded a net charge of $2.6 in connection with an adjustment to certain liabilities that we retained. In addition, during the second quarter of 2009, we recorded additional income tax expense of $1.6 related to the disposition. Air Filtration Sold for cash consideration of $35.7, resulting in a gain, net of taxes, of $2.4 during the third quarter of 2008. During the first quarter of 2008, we recorded a net charge of $3.1 to Gain (loss) on disposition of discontinued operations, net of tax to adjust the deferred tax assets of the Air Filtration business to their estimated realizable value. During 2007, we recorded a net charge of $11.0 to Gain (loss) on disposition of discontinued operations, net of tax in order to reduce the carrying valu

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
BUSINESS SEGMENT INFORMATION	(4) BUSINESS SEGMENT INFORMATION We are a global provider of flow technology, test and measurement products and services, thermal equipment and services, and industrial products and services, with operations in over 40 countries. We offer a diverse collection of products, which include, among other things, valves, fluid handling equipment, metering and mixing solutions, specialty service tools, diagnostic systems, service equipment and technical information services, cooling, heating and ventilation products, power transformers, and television and radio broadcast antennas. Our products are used by a broad array of customers in various industries, including power generation, chemical processing, pharmaceuticals, infrastructure, mineral processing, petrochemical, automotive service, telecommunications and transportation. We have aggregated our operating segments into four reportable segments: Flow Technology, Test and Measurement, Thermal Equipment and Services and Industrial Products and Services. The factors considered in determining our aggregated segments are the economic similarity of the businesses, the nature of products sold or services provided, production processes, types of customers and distribution methods. In determining our segments, we apply the threshold criteria of the Segment Reporting Topic of the Codification to operating income or loss of each segment before considering impairment and special charges, pension and postretirement expenses, stock-based compensation and other indirect corporate expense. This is consistent with the way our chief operating decision maker evaluates the results of each segment. Flow Technology Our Flow Technology segment designs, manufactures, and markets solutions and products that are used to blend, meter and transport fluids, as well as air and gas filtration and dehydration products. Our Flow Technology businesses focus on innovative, highly engineered new product introductions and expansion from products to systems and services to create total customer solutions. Products for the segment include high-integrity pumps, valves, heat exchangers, fluid mixers, agitators, metering systems, filters and dehydration equipment for the food and beverage and pharmaceutical processing, power generation, general industrial, chemical processing, oil and gas processing, air dehydration and mining markets. Test and Measurement Our Test and Measurement segment engineers and manufactures branded, technologically advanced test and measurement products used on a global basis across the transportation, telecommunications and utility industries. Our technology supports the introduction of new systems, expanded services and sophisticated testing and validation. Products for the segment include specialty automotive diagnostic service tools, fare-collection systems and portable cable and pipe locators. The segment continues to focus on initiatives such as lean manufacturing, expanding its commercialization of the European and Chinese markets and leveraging its outsourcing model. Thermal Equipment and Services Our Thermal Equipment and Services segment engineers, manufactures and se

SPECIAL CHARGES

SPECIAL CHARGES
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
SPECIAL CHARGES	(5) SPECIAL CHARGES Special charges, net, for the three and nine months ended September26, 2009 and September27, 2008, are summarized and described in more detail below: Threemonthsended Ninemonthsended September26, September27, September26, September27, 2009 2008 2009 2008 Flow Technology $ 12.4 $ 0.5 $ 22.2 $ 1.7 Test and Measurement 3.9 1.5 19.7 3.0 Thermal Equipment and Services 1.0 1.1 7.8 2.1 Industrial Products and Services 0.3 2.3 Corporate 1.7 1.7 2.5 2.9 Total $ 19.3 $ 4.8 $ 54.5 $ 9.7 Flow Technology Segment Charges for the three and nine months ended September26, 2009 related primarily to costs associated with headcount reductions at facilities in Orebro, Sweden; Mexico City, Mexico; Rochester, NY; Buffalo, NY; and Houston, TX, as well as additional integration costs (primarily headcount reductions) associated with the December31, 2007 acquisition of APV. The charges for the three and nine months ended September27, 2008 related primarily to the relocation of the segments headquarters from Delavan, WI to Charlotte, NC. Test and Measurement Segment Charges for the three and nine months ended September26, 2009 related to costs associated with headcount reductions and consolidation activities that impacted facilities in North America, Europe and Asia-Pacific, primarily in response to the continued difficulties being experienced by the global vehicle manufacturers and their dealer service networks. The charges for the three and nine months ended September27, 2008 related primarily to costs associated with a plan to consolidate distribution activities within the segment, costs associated with the closure of a manufacturing facility in Owatonna, MN, and costs associated with integrating the segments technical and training service lines into its diagnostic tools business. Thermal Equipment and Services Segment Charges for the three and nine months ended September26, 2009 related primarily to costs associated with headcount reductions at facilities in Ratingen, Germany; Gallarate, Italy; Guangzhou, China; Worcester, UK; Michigan City, IN; and Eden, NC. The charges for the three and nine months ended September27, 2008 related primarily to the relocation of the segments headquarters from Overland Park, KS to Charlotte, NC, outsourcing certain functions associated with a manufacturing facility in China, and the shut-down of a facility in Houston, TX. Industrial Products and Services Segment Charges for the three and nine months ended September26, 2009 related primarily to costs associated with headcount reductions at facilities in Rockford, IL and Waukesha, WI. Corporate Charges for the three and nine months ended September26, 2009 related primarily to our legal entity reduction initiative, the closure of our information technology data center in Horsham, PA, and an additional impairment charge related to the expected sale of a facility in Newtown, CT. The charges for the three months ended September

INVENTORIES

INVENTORIES
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
INVENTORIES	(6) INVENTORIES Inventories consisted of the following amounts: September26, 2009 December31, 2008 Finished goods $ 225.6 $ 229.3 Work in process 136.0 165.0 Raw materials and purchased parts 273.4 312.7 Total FIFO cost 635.0 707.0 Excess of FIFO cost over LIFO inventory value (43.0 ) (40.2 ) Total inventories $ 592.0 $ 666.8 Inventories include material, labor and factory overhead costs and are reduced, when necessary, to estimated realizable values. Approximately 39% and 36% of the total inventory at September26, 2009 and December31, 2008, respectively, were domestic inventories valued using the last-in, first-out (LIFO) method. Other inventories are valued using the first-in, first-out (FIFO) method. Progress payments, which are netted against work in process, were $3.2 and $4.1 at September26, 2009 and December31, 2008, respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
GOODWILL AND OTHER INTANGIBLE ASSETS	(7) GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill, by segment, were as follows: December31, 2008 Goodwillresulting frombusiness combinations Foreign Currency Translation andother(1) September26, 2009 Flow Technology $ 664.6 $ $ 32.6 $ 697.2 Test and Measurement 364.6 6.0 370.6 Thermal Equipment and Services 481.6 6.8 488.4 Industrial Products and Services 259.0 259.0 Total $ 1,769.8 $ $ 45.4 $ 1,815.2 (1) Represents adjustments to acquisition accounting related to recent acquisitions and changes from foreign currency translation of $7.9 and $37.5, respectively. Other Intangibles Identifiable intangible assets comprise the following: September26,2009 December31,2008 Gross Carrying Value Accumulated Amortization NetCarrying Value Gross Carrying Value Accumulated Amortization NetCarrying Value Intangible assets with determinable lives: Patents $ 28.6 $ (22.8 ) $ 5.8 $ 28.4 $ (21.3 ) $ 7.1 Technology 75.7 (15.2 ) 60.5 73.4 (11.3 ) 62.1 Customer relationships 219.3 (42.5 ) 176.8 211.3 (31.9 ) 179.4 Other 25.8 (10.4 ) 15.4 25.1 (8.9 ) 16.2 349.4 (90.9 ) 258.5 338.2 (73.4 ) 264.8 Trademarks with indefinite lives 393.8 393.8 382.0 382.0 Total $ 743.2 $ (90.9 ) $ 652.3 $ 720.2 $ (73.4 ) $ 646.8 Estimated annual amortization expense related to these intangible assets is $22.9 in 2009, $22.3 in 2010, $21.0 in 2011, $20.1 in 2012 and $19.5 in 2013. At September26, 2009, the net carrying value of net intangible assets with determinable lives consisted of $152.2 in the Flow Technology segment, $77.1 in the Test and Measurement segment, and $25.2 in the Thermal Equipment and Services segment. Trademarks with indefinite lives were associated with $210.0 in the Flow Technology segment, $53.6 in the Test and Measurement segment, $115.1 in the Thermal Equipment and Services segment, and $15.1 in the Industrial Products and Services segment. We annually test the recoverability of our indefinite-lived intangible assets during the fourth quarter based on a measurement date as of the end of the third quarter and continually monitor impairment indicators across all our reporting units. Any significant change in market conditions and estimates or judgments used to determine expected future cash flows that indicate a reduction in carrying value may give rise to impairment in the period that the change becomes known. The estimated fair value of our Service Solutions reporting unit (our specialty diagnostic service tools business in our Test and Measurement segment) exceeds the carrying value of its net assets by less than 2%. Any unfavorable changes in assumptions used in determining the estimated fair value

WARRANTY

WARRANTY
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
WARRANTY	(8) WARRANTY The following is an analysis of our product warranty accrual for the first nine months of 2009 and 2008: Ninemonthsended September26, September27, 2009 2008 Balance at beginning of period $ 58.8 $ 60.2 Acquisitions 0.8 5.2 Provisions 19.3 15.2 Usage (22.1 ) (17.2 ) Balance at end of period 56.8 63.4 Less: Current portion of warranty 44.0 47.1 Non-current portion of warranty $ 12.8 $ 16.3

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
EMPLOYEE BENEFIT PLANS	(9) EMPLOYEE BENEFIT PLANS Net periodic benefit expense for our pension and postretirement plans includes the following components: Domestic Pension Plans Three months ended Nine months ended September26, September27, September26, September27, 2009 2008 2009 2008 Service cost $ 2.0 $ 2.0 $ 6.0 $ 5.8 Interest cost 16.6 16.3 49.7 48.9 Expected return on plan assets (18.5 ) (19.5 ) (55.6 ) (58.6 ) Amortization of unrecognized losses 5.5 5.3 16.5 15.9 Amortization of unrecognized prior service cost (0.3 ) (0.2 ) (0.4 ) (0.6 ) Curtailment/settlement loss 7.1 7.1 Total net periodic pension benefit expense 5.3 11.0 16.2 18.5 Less: Net periodic pension benefit expense of discontinued operations (0.2 ) Net periodic pension benefit expense of continuing operations $ 5.3 $ 11.0 $ 16.0 $ 18.5 Foreign Pension Plans Three months ended Nine months ended September26, September27, September26, September27, 2009 2008 2009 2008 Service cost $ 0.7 $ 0.8 $ 1.9 $ 2.6 Interest cost 3.6 4.1 10.2 12.0 Expected return on plan assets (3.5 ) (4.3 ) (9.8 ) (13.3 ) Amortization of unrecognized losses 0.6 0.3 1.6 0.9 Amortization of unrecognized prior service cost (0.1 ) (0.1 ) Total net periodic pension benefit expense 1.4 0.8 3.9 2.1 Less: Net periodic pension benefit expense of discontinued operations (0.2 ) (0.5 ) Net periodic pension benefit expense of continuing operations $ 1.2 $ 0.8 $ 3.4 $ 2.1 Postretirement Plans Three months ended Nine months ended September26, September27, September26, September27, 2009 2008 2009 2008 Service cost $ $ 0.1 $ 0.1 $ 0.2 Interest cost 2.5 2.4 7.4 7.3 Amortization of unrecognized losses 0.7 0.9 2.2 2.7 Amortization of unrecognized prior service cost (0.3 ) (0.4 ) (1.0 ) (1.0 ) Net periodic postretirement benefit expense $ 2.9 $ 3.0 $ 8.7 $ 9.2 During the third quarter of 2008, we recorded a pension settlement charge of $7.1 associated with lump-sum payments to our former Chief Executive Officer to settle remaining obligations of our non-qualified domestic pension plans. The lump-sum payments totaled $31.8 and were made in August2008. During the first nine months of 2009, we made contributions of approximately $12.2 to our foreign and qualified domestic pension plans, of which $2.2 related to businesses classified as discontinued operations. Our estimates of full-year 2009 required employer contributions to our employee benefit pl

INDEBTEDNESS

INDEBTEDNESS
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
INDEBTEDNESS	(10) INDEBTEDNESS The following summarizes our debt activity (both current and non-current) for the nine months ended September26, 2009: December31, 2008 Borrowings Repayments Other(3) September26, 2009 Term loan $ 675.0 $ $ (37.6 ) $ $ 637.4 Domestic revolving loan facility 65.0 214.0 (279.0 ) 7.625% senior notes 500.0 500.0 7.50% senior notes 28.2 28.2 6.25% senior notes 21.3 21.3 Trade receivables financing arrangement (1) 127.0 (106.0 ) 21.0 Other indebtedness (2) 55.2 (23.9 ) 7.2 38.5 Total debt 1,344.7 $ 341.0 $ (446.5 ) $ 7.2 1,246.4 Less: short-term debt 112.9 45.4 Less: current maturities of long-term debt 76.4 76.0 Total long-term debt $ 1,155.4 $ 1,125.0 (1) Under this arrangement, we can borrow, on a continuous basis, up to $130.0, as available. (2) Includes aggregate balances under accounts payable programs and a purchase card program of $24.2 and $47.9 at September26, 2009 and December31, 2008, respectively (3) Other includes debt assumed and foreign currency translation on any debt instruments denominated in currencies other than the U.S. dollar. Credit Facilities We have senior credit facilities with a syndicate of lenders that provided for committed senior secured financing in the aggregate amount of $2,300.0, consisting of the following: a term loan facility in an aggregate principal amount of $750.0 (balance of $637.4 at September26, 2009) with a final maturity of September2012; a domestic revolving credit facility, available for loans and letters of credit, in an aggregate principal amount up to $400.0 with a final maturity of September2012; a global revolving credit facility, available for loans in Euros, British Pounds and other currencies in an aggregate principal amount up to the equivalent of $200.0 with a final maturity of September2012; and a foreign credit instrument facility, available for performance letters of credit and guarantees, in an aggregate principal amount in various currencies up to the equivalent of $950.0 with a final maturity of September2012. Our senior credit facilities require that we maintain a Consolidated Interest Coverage Ratio (generally defined as the ratio of consolidated adjusted EBITDA for the trailing four fiscal quarters ended on such date to consolidated interest expense for such period) as of the last day of any fiscal quarter of at least 3.50 to 1.00, and a Consolidated Leverage Ratio as of the last day of any fiscal quarter of no more than 3.25 to 1.00. Our senior credit facilities also contain covenants that, among other things, restrict our ability to incur additional indebtedness, grant liens, make investments, loans, guarantees or advances, make restricted junior payments, including dividends, redemptions of capital stock and voluntary prepayments or repurchases of certain other indebtedness, engage in mergers, acquisitions or sales of assets,

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
DERIVATIVE FINANCIAL INSTRUMENTS	(11) DERIVATIVE FINANCIAL INSTRUMENTS On January1, 2009, we adopted FASB guidance, which requires enhanced disclosures regarding an entitys derivative and hedging activities. The guidance requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. This adoption had no financial impact on our consolidated financial statements. Interest Rate Swaps We maintain Swaps to hedge interest rate risk on our variable rate term loan. These Swaps, which we designate and account for as cash flow hedges, have maturities through September2012 and effectively convert the majority of our borrowing under our variable rate term loan to a fixed rate of 4.795% plus the applicable margin. These are amortizing Swaps; therefore, the outstanding notional value is scheduled to decline commensurate with the scheduled maturities of the term loan. As of September26, 2009, the aggregate notional amount of the Swaps was $495.0. The unrealized loss, net of taxes, recorded in accumulated other comprehensive loss (AOCI) was $20.6 and $25.8 as of September26, 2009 and December31, 2008, respectively. Currency Forward Contracts We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency exchange rates. Our objective is to preserve the economic value of non-functional currency denominated cash flows and to minimize their impact. Our principal currency exposures relate to the Euro, British Pound, South African Rand and Chinese Yuan. From time to time, we enter into foreign currency protection agreements (FX forward contracts) to manage the exposure on contracts with forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities denominated in currencies other than the functional currency of certain subsidiaries. In addition, some of our contracts contain currency forward embedded derivatives (FX embedded derivatives), as the currency of exchange is not clearly and closely related to the functional currency of either party to the transaction. Certain of these FX embedded derivatives are designated as cash flow hedges, as deemed appropriate. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives fair value are not included in current earnings, but are included in AOCI. These changes in fair value will subsequently be reclassified into earnings as a component of revenues or cost of goods sold, as applicable, when the forecasted transaction impacts earnings. To the extent that a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period it occurs. We had FX forward contracts with an aggregate notional amount of $120.2 outstanding as of September26, 2009. The unrealized loss, net of taxes, recorded in AOCI was

EQUITY AND STOCK-BASED COMPENSA

EQUITY AND STOCK-BASED COMPENSATION
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
EQUITY AND STOCK-BASED COMPENSATION	(12) EQUITY AND STOCK-BASED COMPENSATION Earnings Per Share The following table sets forth the number of weighted-average shares outstanding used in the computation of basic and diluted income per share: Threemonthsended Ninemonthsended September26, September27, September26, September27, 2009 2008 2009 2008 Weighted-average shares outstanding used in basic income per share 49.170 54.244 49.378 53.688 Dilutive SecuritiesEmployee stock options and restricted stock units 0.480 0.847 0.403 0.941 Weighted-average number of common and dilutive securities used for calculating diluted income per share 49.650 55.091 49.781 54.629 The total number of stock options that were not included in the computation of diluted income per share because their exercise price was greater than the average market price of common shares was 0.462 and 0.742 for the three and nine months ended September26, 2009, respectively, and 0.084 and 0.059 for the three and nine months ended September27, 2008, respectively. For the three and nine months ended September26, 2009, 0.220 and 0.225, respectively, of unvested restricted stock units were excluded from the computation of diluted income per share because required market thresholds for vesting (as discussed below) were not met. Stock-based Compensation Under the 2002 Stock Compensation Plan, as amended in 2006, the successor plan to the 1992 Stock Compensation Plan, up to 20.000 shares of our common stock may be granted to key employees and 5.535 of these shares were available for grant at September26, 2009. The 2002 Stock Compensation Plan permits the issuance of new shares or shares from treasury upon the exercise of options and the vesting of restricted stock units or restricted stock. During the nine months ended September26, 2009 and September27, 2008, we classified excess tax benefits from stock-based compensation of $1.6 and $35.0, respectively, as financing cash flows and included such amounts in Proceeds from the exercise of employee stock options and other, net of minimum tax withholdings paid on behalf of employees for net share settlements within our condensed consolidated statements of cash flows. Restricted stock or restricted stock units may be granted to eligible employees or non-employee directors in accordance with applicable equity compensation plan documents and agreements. Subject to plan terms and conditions, the restrictions generally lapse and awards vest over three years. Market (company performance) thresholds have been instituted for vesting of substantially all restricted stock and restricted stock unit awards. This vesting is based on SPX shareholder return versus the SP 500 composite index. On each vesting date, we compare the SPX shareholder return to the performance of the SP 500 composite index for the prior year and for the cumulative period since the date of the grant. If SPX outperforms the SP 500 composite index for the prior year, the one-third portion of the grant associated with that year will vest. If SPX outperforms the SP composite ind

CONTINGENCIES AND OTHER MATTERS

CONTINGENCIES AND OTHER MATTERS
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
CONTINGENCIES AND OTHER MATTERS	(13) CONTINGENCIES AND OTHER MATTERS General Numerous claims, complaints and proceedings arising in the ordinary course of business, including but not limited to those relating to litigation matters (e.g., class actions, derivative lawsuits and contracts, intellectual property, competitive claims, etc.), environmental matters, and risk management matters (e.g., product and general liability, automobile, workers compensation, etc.), have been filed or are pending against us and certain of our subsidiaries. Additionally, we may become subject to significant claims, of which we are currently unaware, or the claims, of which we are aware, may result in our incurring a significantly greater liability than we anticipate. This may also be true in connection with past or future acquisitions. While we maintain property, cargo, auto, product, general liability, environmental, and directors and officers liability insurance and have acquired rights under similar policies in connection with these acquisitions that we believe cover a portion of these claims, this insurance may be insufficient or unavailable to protect us against potential loss exposures. In addition, we have increased our self-insurance limits over the past several years. While we believe we are entitled to indemnification from third parties for some of these claims, these rights may be insufficient or unavailable to protect us against potential loss exposures. However, we believe that our accruals related to these items are sufficient and that these items and our rights to available insurance and indemnity will be resolved without material adverse effect, individually or in the aggregate, on our financial position, results of operations and cash flows. These accruals totaled $336.5 (including $259.4 for risk management matters) and $340.9 (including $260.7 for risk management matters) at September26, 2009 and December31, 2008, respectively. Of these amounts, $263.9 and $266.8 were included in Other long-term liabilities within our condensed consolidated balance sheets at September26, 2009 and December31, 2008, respectively, with the remainder included in Accrued expenses. Litigation Matters We are subject to legal proceedings and claims that arise in the normal course of business. In our opinion, these matters are either without merit or of a kind that should not have a material adverse effect individually or in the aggregate on our financial position, results of operations or cash flows. However, we cannot assure you that these proceedings or claims will not have a material adverse effect on our financial position, results of operations or cash flows. Environmental Matters Our operations and properties are subject to federal, state, local and foreign regulatory requirements relating to environmental protection. It is our policy to comply fully with all applicable requirements. As part of our effort to comply, we have a comprehensive environmental compliance program that includes environmental audits conducted by internal and external independent professionals, as well as regular communications with our operating units regarding environmental compliance requir

INCOME TAXES

INCOME TAXES
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
INCOME TAXES	(14) INCOME TAXES As of September26, 2009, we had gross unrecognized tax benefits of $108.7 (net unrecognized tax benefits of $87.8), of which $74.4, if recognized, would impact our effective tax rate from continuing operations. We classify interest and penalties related to unrecognized tax benefits as a component of our income tax provision. As of September26, 2009, gross accrued interest excluded from the amounts above totaled $24.9 (net accrued interest of $18.1). There were no significant penalties recorded during the nine months ended September26, 2009 or September27, 2008. Based on the outcome of certain examinations or as a result of the expiration of statute of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by approximately $25.0 to $30.0. In October2009, the statute of limitations expired for various state income tax returns. As a result of such expirations, we will be recognizing net tax benefits of approximately $12.3 during the fourth quarter of 2009, with approximately $3.4 recorded to continuing operations and the remainder of $8.9 recorded to discontinued operations. Tax Contingencies and Other Tax Matters We perform reviews of our income tax positions on a continuous basis and accrue for potential contingencies when we determine that an uncertain position meets the criteria of the Income Taxes Topic of the Codification. Accruals for these contingencies are recorded in Income taxes payable and Deferred and other income taxes in the accompanying condensed consolidated balance sheets based on the expectation as to the timing of when the contingency will be resolved. As events change and resolution occurs, these accruals are adjusted, such as in the case of audit settlements with taxing authorities. On August 28, 2008, we reached an agreement with the IRS regarding audits of our 2003 through 2005 Federal income tax returns. Upon the resolution of these examinations, we reduced our liability for uncertain tax positions by $30.6. Of the $30.6 reduction in our liability for uncertain tax positions, $25.6 was recorded as an income tax benefit from continuing operations and $5.0 was recorded as an income tax benefit to Gain (loss) on disposition of discontinued operations within our accompanying condensed consolidated statements of operations for the three and nine months ended September 27, 2008. The IRS currently is performing an audit of our 2006 and 2007 federal income tax returns. At this stage, the outcome of the audit is uncertain; however, we believe that any contingencies are adequately provided for. We do not believe that it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months as we do not expect the examination will conclude within the next 12 months. State income tax returns generally are subject to examination for a period of three to five years after filing of the respective tax returns. The impact on such tax returns of any federal changes remains subject to examination by var

FAIR VALUE

FAIR VALUE
	9 Months Ended Sep. 26, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements (in millions, except per share data)
FAIR VALUE	(15) FAIR VALUE Effective January1, 2009, we adopted fair value measurements, as required by the Fair Value Measurement and Disclosures Topic of the Codification, for our nonfinancial assets and nonfinancial liabilities measured on a non-recurring basis. We adopted these fair value measurements for measuring the fair value of our financial assets and liabilities during 2008. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We utilize market data or assumptions that we believe market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable quoted prices in active markets for identical assets or liabilities (level 1), significant other observable inputs (level 2) or significant unobservable inputs (level 3). Our financial derivative assets and liabilities include Swaps, FX forward contracts, FX embedded derivatives and commodity contracts that are measured at fair value using observable market inputs such as forward rates, interest rates, our own credit risk and our counterparties credit risk. Based on these inputs, the derivative assets and liabilities are classified within level 2 of the valuation hierarchy. Based on our continued ability to enter into forward contracts, we consider the markets for our fair value instruments to be active. As of September26, 2009, there has been no significant impact to the fair value of our derivative liabilities due to our own credit risk, as the related agreements are collateralized under our senior credit facilities. Similarly, there has been no significant impact to the valuation of our derivative assets based on our evaluation of our counterparties credit risk. We primarily use the income approach, which uses valuation techniques to convert future amounts to a single present amount. Assets and liabilities measured at fair value on a recurring basis included the following as of September26, 2009: Fair Value Measurements Using Level1 Level2 Level3 Current assets FX embedded derivatives and FX forward contracts $ $ 0.9 $ Noncurrent assets FX embedded derivatives 0.9 Current liabilities FX forward contracts and FX embedded derivatives 2.7 Long-term liabilities FX embedded derivatives and Swaps 44.6 Assets and liabilities measured at fair value on a recurring basis included the following as of December31, 2008: Fair Value Measurements Using Level1 Level2 Level3 Current assets FX forward contracts and FX embedded derivatives $ $ 0.6 $ Noncurrent assets FX embedded derivatives 8.9 Current liabilities FX forward contracts and commodity contracts 10.1 Long-term liabilities Swaps 42.0 During the nine months ended September 26, 2009, we recorded pre-tax impairment charges of $20.8 in order to reduce the carrying value of the net assets of th

Document and Entity Information

Document and Entity Information (USD $)
	9 Months Ended Sep. 26, 2009	Oct. 22, 2009	Jun. 28, 2008
Document and Entity Information
Entity Registrant Name	SPX CORPORATION
Entity Central Index Key	0000088205
Document Type	10-Q
Document Period End Date	2009-09-26
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			$6,910,385,877
Entity Common Stock, Shares Outstanding		49,292,288