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Immaterial Corrections

3 Months Ended

Mar. 31, 2012

NOTE 18

IMMATERIAL CORRECTIONS

During the fourth quarter of 2011, management concluded the previously issued consolidated financial statements required adjustments to reflect certain immaterial corrections. The Company revised amounts previously reported in the consolidated financial statements to reflect certain adjustments, primarily related to income taxes, cumulative translation adjustments, and other adjustments, related to previously unrecorded immaterial adjustments identified during the preparation of prior years’ financial statements. Certain of these adjustments had an impact on the previously reported first quarter 2011 financial statements. Prior to the distribution of Exelis and Xylem, the Company had evaluated and concluded that the identified amounts were not material to any of its previously issued financial statements. Although management believes the amounts, individually and in the aggregate, were, and continue to be, immaterial to prior periods, management concluded that the prior period corrections to the post-Distribution financial statements are appropriate.

As a result of these adjustments, basic and diluted earnings per share were adjusted by $(0.03) for the first quarter of 2011, which includes $(0.04) related to discontinued operations. The impact of these adjustments is detailed in the table below.


QUARTER ENDED MARCH 31, 2011	As Previously Reported with Reclassification For Discontinued Operations (Note 4)			Adjustments			As Adjusted and with Reclassification For Discontinued Operations
Cost of sales	$	364		$	1		$	365
Gross profit		169			(1	)		168
General and administrative expenses		48			(3	)		45
Operating income (loss)		(12	)		2			(10	)
Income (loss) from continuing operations before income tax expense		(37	)		2			(35	)
Income (loss) from continuing operations		(23	)		1			(22	)
Income from discontinued operations		147			(4	)		143
Net income	$	124		$	(3	)	$	121

The adjustments had no effect on any of the subtotals within the Consolidated Condensed Statement of Cash Flows.