Discontinued Operations

3 Months Ended

Mar. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

NOTE 3. DISCONTINUED OPERATIONS

In January 2012, the Company completed the sale of its integrated scanning system business (the ASI businesses) for a sale price of approximately $132 million in cash. In addition, in February 2012, the Company completed the sale of its KEO business for a sale price of $205 million in cash. These businesses were part of the Industrial Technologies segment. ASI supplies bar code scanning and dimensional measurement systems and KEO designs, develops, manufactures and integrates highly engineered, stabilized electro-optical/ISR systems that integrate into submarines, surface ships, and combat and ground vehicles. The businesses had combined annual revenues of $275 million in 2011. The Company has reflected an aggregate after-tax gain on the sale of these businesses of $94 million or $0.13 per diluted share in its first quarter 2012 results in connection with the closing of these transactions.

In April 2011, the Company completed the divestiture of its PSA business for a sale price of $680 million in cash. This business, which was also part of the Industrial Technologies segment and supplies safety, security and electric power components to commercial and military aerospace markets globally, had annual revenues of $377 million in 2010. The Company recorded an after-tax gain on the sale of PSA of $202 million or $0.29 per diluted share in its second quarter 2011 results in connection with the closing of the transaction.

The Company has reported the PSA, ASI and KEO businesses as discontinued operations in its consolidated financial statements. Accordingly, the results of operations for all periods presented reflect these businesses as discontinued operations and the assets and liabilities of these businesses have been classified as held for sale for all periods presented. The Company allocated a portion of the consolidated interest expense to discontinued operations based on the ratio of the discontinued businesses' net assets to the Company's consolidated net assets.

The key components of income from discontinued operations were as follows ($ in millions):

	Three Months Ended
	March 30, 2012			April 1, 2011
Net sales	$	9.9		$	151.1
Operating expenses		(11.2	)		(130.5	)
Allocated interest expense		—			(0.9	)
(Loss) earnings before income taxes		(1.3	)		19.7
Income tax benefit (expense)		0.5			(7.1	)
(Loss) earnings from discontinued operations		(0.8	)		12.6
Gain on sale, net of $55 million of related income taxes		93.7			—
Earnings from discontinued operations, net of income taxes	$	92.9		$	12.6

As of December 31, 2011, the aggregate components of assets and liabilities classified as discontinued operations and included in other current assets and other current liabilities consisted of the following ($ in millions):

Accounts receivable, net	$	82.7
Inventories		10.5
Prepaid expenses and other		9.3
Property, plant and equipment, net		31.5
Goodwill and other intangibles, net		104.0
Total assets	$	238.0
Accounts payable	$	32.7
Accrued expenses and other		47.8
Total liabilities	$	80.5