Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations

Discontinued Operations

3. Discontinued Operations

On December 21, 2012, the Company completed the sale of all of the outstanding shares of its subsidiary, Flomatic Corporation (Flomatic). The sale excluded the backflow product line of Flomatic, which was retained by the Company.  Flomatic, located in Glens Falls, New York, specializes in manufacturing and selling check valves, foot valves and automatic hydraulic control valves for the well water industry. The Company acquired Flomatic as part of its acquisition of Danfoss Socla S.A.S. (Socla) in April 2011.  The Company evaluated the operations of Flomatic and determined that it would not have a substantial continuing involvement in Flomatic’s operations and cash flows. As a result, Flomatic’s cash flows and operations were eliminated from the continuing operations of the Company and classified as discontinued operations for all periods presented.

	First Quarter Ended
	March 31, 2013		April 1, 2012
	(in millions)
Operating income - Flomatic	$	—	$	0.3
Income before income taxes	—		0.3
Income tax expense	—		0.1
Income from discontinued operations, net of taxes	$	—	$	0.2

Revenues reported in discontinued operations are as follows:

	First Quarter Ended
	March 31, 2013		April 1, 2012
	(in millions)
Flomatic revenues — discontinued operations	$	—	$	3.0