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Investment in Joint Venture

12 Months Ended

Dec. 31, 2011

(9) Investment in Joint Venture

We have a joint venture, EGS, with Emerson Electric Co., in which we hold a 44.5% interest. Emerson Electric Co. controls and operates the joint venture. EGS operates primarily in the United States, Brazil, Canada and France and is engaged in the manufacture of electrical fittings, hazardous location lighting and power conditioning products. We account for our investment under the equity method of accounting, on a three-month lag basis, and we typically receive our share of the joint venture's earnings in cash dividends paid quarterly. EGS's results of operations and selected other information for its fiscal years ended September 30, 2011, 2010 and 2009 were as follows:

	2011		2010		2009

Net sales	$	495.3	$	445.4	$	429.4
Gross profit		201.5		189.2		182.3
Net income		63.7		62.7		62.5
Capital expenditures		16.7		11.9		11.8
Depreciation and amortization		10.3		9.6		8.8
Dividends received		29.4		30.3		30.7
Undistributed earnings attributable to SPX Corporation		4.6		5.5		6.8
SPX's equity earnings in EGS		28.7		28.8		28.0

Condensed balance sheet information of EGS as of September 30, 2011 and 2010 was as follows:

	2011		2010

Current assets	$	179.7	$	170.2
Non-current assets		342.5		337.5
Current liabilities		128.0		114.2
Non-current liabilities		30.1		29.0

The carrying value of our investment in EGS was $68.9 and $69.3 at December 31, 2011 and 2010, respectively, and is recorded in "Other assets" in our consolidated balance sheets. We contributed non-monetary assets to EGS upon its formation. We recorded these contributed assets at their historical cost while EGS recorded these assets at their fair value. As a result of this basis difference in the goodwill recorded by EGS upon formation, our investment in EGS is less than our proportionate share of EGS's net assets, with such difference totaling $85.1 at December 31, 2011. During the second quarter of 2010, EGS acquired Nutsteel Industria Metalurgica Ltda for $35.4. We contributed $15.8 to EGS to fund our portion of the acquisition price.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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