Acquisitions Acquisitions (Notes)

12 Months Ended

Dec. 31, 2015

Acquisitions [Abstract]

Acquisitions Disclosure [Text Block]

ACQUISITIONS

Wolverine Automotive Holdings

On October 5, 2015, we completed the acquisition of Wolverine Automotive Holdings Inc., the parent company of Wolverine Advanced Materials LLC (Wolverine). Wolverine is a manufacturer of customized technologies for automotive braking systems and specialized sealing solutions for harsh operating environments across a range of industries. The purchase price of $298.1 net of cash acquired, which is subject to a post-closing working capital adjustment, was funded through a combination of cash and a $200 borrowing from our revolving credit facility. Wolverine has approximately 500 employees globally and reported 2014 revenues of $154, including $17 of sales to ITT.

The allocation of the purchase price is based on the fair value of assets acquired, liabilities assumed and non-controlling interests in Wolverine as of October 5, 2015. Our assessment of fair value is preliminary, and may be adjusted for information that is currently not available to us, primarily related to the valuation of intangible assets, postretirement obligations, environmental liabilities, deferred tax matters, real estate, and residual goodwill. The purchase price allocation presented below represents the effect of recording preliminary estimates for the fair value of assets acquired, liabilities assumed, and non-controlling interests in Wolverine and related deferred income taxes. We expect to obtain the information necessary to finalize the fair value of the net assets acquired at the acquisition date during the measurement period. Changes to the preliminary estimates of the fair value of the net assets acquired during the measurement period will be recorded as adjustments to those assets and liabilities with a corresponding adjustment to goodwill.

The goodwill of $161.6 is not deductible for income tax purposes. All of the goodwill has been assigned to the Motion Technologies segment. Other intangibles acquired include existing customer relationships, proprietary technology, and trade names.

Hartzell Aerospace

On March 31, 2015, we completed the acquisition of Hartzell Aerospace for a purchase price of $52.9 that was funded through additional commercial paper borrowings. Hartzell Aerospace, which reported 2014 revenues of $34, designs and manufactures products to support aerospace applications, featuring a differentiated portfolio of environmental control system components and an established aftermarket business. The acquisition is being reported within the Control Technologies segment and complements the ITT aerospace growth platform, with customer and sales channel alignment and key high-growth and next-generation platform expansion opportunities.

The allocation of the purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired of $13.3 was recorded as goodwill (which is expected to be deductible for income tax purposes). All of the goodwill has been assigned to the Control Technologies segment.

Allocation of Purchase Price for Wolverine and Hartzell Aerospace

	Wolverine			Hartzell
Cash	$	8.5		$	—
Receivables	31.6			5.3
Inventory	34.4			4.8
Plant, property and equipment	22.8			2.6
Goodwill	161.6			13.3
Other intangible assets	89.0			28.6
Other assets	3.4			0.9
Accounts payable and accrued liabilities	(21.3		)	(2.6		)
Postretirement liabilities	(14.6		)	—
Other liabilities	(8.8		)	—
Net assets acquired	$	306.6		$	52.9

Pro forma results of operations have not been presented because the acquisitions were not deemed material, either individually or in the aggregate, at the acquisition date.