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Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2012
Activity Related to Asbestos Claims

As of December 31, 2012, there were 67 thousand pending active claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows:

 

 (in thousands)    2012(a)     2011(a)     2010(a)  

 Pending claims – Beginning

      105        104        105   

New claims

      4        5        6   

Settlements

      (1 )      (2 )      (1 ) 

Dismissals(b)

      (12 )      (2 )      (6 ) 

 Pending claims – Ending

      96        105        104   

Pending inactive claims(c)

      29        39        40   

Pending active claims

      67        66        64   
(a) In September 2010, ITT executed an amended cost sharing agreement related to a business we disposed of a number of years ago. The cost sharing agreement provided that responsibility for costs associated with claims resolved gradually transitioned away from ITT. In September 2012, ITT entered into a Settlement Agreement with the entity that acquired the disposed business. All claim activity associated with this business has been excluded from the table.

 

(b) During 2012, 12 thousand pending claims were dismissed, 10 thousand of which were filed in Mississippi and were inactive.

 

(c) Inactive claims represent pending claims in Mississippi filed prior to 2004, which have been excluded from our asbestos measurement as these claims have little to no value.
Summary of Net Asbestos Charges
The tables below summarize the total net asbestos charges for the years ended December 31, 2012, 2011 and 2010.

 

      2012     2011     2010  

Continuing operations:

       

Asbestos provision

    $ 53.8      $ 59.5      $ 55.3   

Asbestos remeasurement, net

      2.9        40.9        329.5   

Settlement Agreement

      (5.8 )      —        —   

Net asbestos charge - continuing operations

      50.9        100.4        384.8   

Discontinued Operations:

       

Asbestos provision

      0.5        2.8        —   

Asbestos remeasurement, net

      —        (9.2 )      (9.7 ) 

Settlement Agreement

      (5.6 )      —        —   

Net asbestos charge - discontinued operations

      (5.1 )      (6.4 )      (9.7 ) 

Total net asbestos charge

    $ 45.8      $ 94.0      $ 375.1   

 
Roll Forward of Asbestos Liability and Related Assets
The following table provides a rollforward of the estimated asbestos liability and related assets for the year ended December 31, 2012.

 

     2012     2011  
      Liability     Asset     Net     Liability     Asset     Net  

Balance as of January 1

    $ 1,667.9      $ 954.2      $ 713.7      $ 1,676.5      $ 1,034.7      $ 641.8   

Changes in estimate during the period:

             

Continuing operations

      6.6        (50.2 )      56.8        123.5        23.2        100.3   

Discontinued operations

      11.5        11.0        0.5        (58.4 )      (52.0 )      (6.4 ) 

Settlement Agreement

      (245.2 )      (233.8 )      (11.4 )      —        —        —   

Net cash activity

      (93.4 )      (73.3 )      (20.1 )      (73.7 )      (51.7 )      (22.0 ) 

Balance as of December 31

    $ 1,347.4      $ 607.9      $ 739.5      $ 1,667.9      $ 954.2      $ 713.7   

Current portion

      92.4        82.6          138.8        132.9     

Noncurrent portion

      1,255.0        525.3                1,529.1        821.3           
Rollforward of Environmental Liability and Related Assets

The following table provides a rollforward of the estimated environmental liability and related assets for the years ended December 31, 2012 and 2011.

 

     2012     2011  
      Liability     Asset      Net     Liability     Asset      Net  

Balance as of January 1

    $ 101.8      $ –       $ 101.8      $ 99.7      $ –       $ 99.7   

Changes in estimates for pre-existing accruals:

               

Continuing operations

      7.1        10.8         (3.7 )      13.0        –         13.0   

Discontinued operations

      (1.4 )      1.5         (2.9 )      0.5        –         0.5   

Accruals added during the period for new matters

      –        –         –        –        –         –   

Net cash activity

      (11.5 )      –         (11.5 )      (11.4 )      –         (11.4 ) 

Foreign currency

      0.1        –         0.1        –        –         –   

Balance as of December 31

    $ 96.1      $ 12.3       $ 83.8      $ 101.8      $ –       $ 101.8   
Range of Environmental Liability and Number of Active Sites for Environmental Matters

The following table illustrates the reasonably possible range of estimated liability, and number of active sites for environmental matters.

 

      2012      2011  

Low-end range

    $ 76.9       $ 81.3   

High end range

    $ 167.1       $ 175.0   

Number of active environmental investigation and remediation sites

      58         64