RESTRUCTURING Notes

6 Months Ended

Jul. 02, 2011

Restructuring and Related Activities [Abstract]

Phase III of the Global Manufacturing Realignment Program was substantially complete as of the end of 2010; however, there were residual asset write-offs and severance incurred in 2011. All expenses were attributed to the Water Systems segment.

In June 2011, the Company announced Phase IV of the Global Manufacturing Realignment Program. The Company will transfer approximately 260,000 annual man hours of manufacturing activity from the Oklahoma City, Oklahoma facility primarily to the Linares, Mexico facility with a small portion of the transfer going to another Oklahoma City based facility. Transfers should be completed by the end of the first quarter 2012. The Company also expects to incur miscellaneous expenses associated with realignments and movements of manufacturing and distribution facilities in a variety of international locations, including the relocation to a new manufacturing facility in Joinville, Brazil.

The Company has estimated the pretax charge for Phase IV to be between $2.6 million and $5.2 million, of which $1.2 million to $3.5 million is for closing the Oklahoma City manufacturing facility. The charges began in the second quarter of 2011 and will end in the fourth quarter 2012 and include severance, pension curtailments, asset write-offs, and equipment relocation.

Costs incurred in the second quarter and six months ended July 2, 2011 included in the “Restructuring expense” line of the income statement are as follows:



(In millions)	Second Quarter Ended		Six Months Ended
	July 2, 2011		July 2, 2011
Severance and other employee assistance costs	$	0.1	$	0.2
Asset write-off	0.4		0.7
Total	$	0.5	$	0.9

As of July 2, 2011 and July 3, 2010, there were $0.1 million and $0.3 million, respectively, in restructuring reserves primarily for severance.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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