In June 2011, the Company entered into a definitive agreement to acquire EMS Technologies, Inc. (EMS), a leading provider of connectivity solutions for mobile networking, rugged mobile computers, and satellite communications for $33 per share in cash (or an aggregate purchase price of approximately $491 million, net of cash acquired) pursuant to a tender offer. EMS is a US public company which operates globally and had reported 2010 revenues of approximately $355 million. EMS's board has unanimously recommended the tender offer. The completion of the tender offer is subject to certain conditions, including, among others, the valid tendering without withdrawal of EMS shares representing at least a majority of the outstanding shares of EMS common stock on a fully-diluted basis and the receipt of regulatory approvals. We expect to complete the acquisition of EMS in the third quarter of 2011 and to fund the acquisition with available cash and the issuance of commercial paper. EMS will be integrated into our Automation and Control Solutions and Aerospace Segments.

In January 2011, the Company entered into a definitive agreement to sell its Consumer Products Group business to Rank Group Limited for approximately $950 million. The Company has received all necessary regulatory approvals for the transaction, which is expected to close in the third quarter of 2011. We currently estimate that the transaction will result in a pre-tax gain of approximately $300 million, approximately $150 million net of tax. The sale of CPG, within the Transportation Systems segment, is consistent with the Company's strategic focus on its portfolio of differentiated global technologies.

The Company has reported CPG as a discontinued operation as of June 30, 2011. Accordingly, the results of operations for all periods presented have been reclassified to reflect the business as a discontinued operation and the assets and liabilities of the business have been reclassified as held for sale for the periods presented. The net income attributable to the non-controlling interest for the discontinued operations is insignificant.

The key components of income from discontinued operations related to CPG were as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2011		2010		2011		2010
Net sales	$	234	$	235	$	470	$	475
Costs, expenses and other		184		182		370		373
Selling, general and administrative expense		28		27		49		48
Other expense		1		1		1		1
Income before taxes		21		25		50		53
Tax expense		7		9		18		19
Net income from discontinued operations after
taxes	$	14	$	16	$	32	$	34

The components of assets and liabilities classified as discontinued operations and included in other current assets and other current liabilities related to the CPG business consisted of the following:

		June 30,		December 31,
		2011		2010
Accounts, notes and other receivables	$	195	$	227
Inventories		156		136
Property, plant and equipment - net		111		116
Goodwill and other intangibles - net		359		359
Other		5		3
Total assets	$	826	$	841
Accounts payable	$	145	$	145
Accrued and other liabilities		37		45
Total liabilities	$	182	$	190