Investment in Joint Venture

12 Months Ended

Dec. 31, 2013

(9) Investment in Joint Venture

As of December 31, 2013, we had a joint venture, EGS, with Emerson Electric Co., in which we held a 44.5% interest. Emerson Electric Co. controlled and operated 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 accounted for our investment using the equity method, on a three-month lag basis, and we typically received 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, 2013, 2012 and 2011 were as follows:

	2013		2012		2011

Revenues	$	517.5	$	527.0	$	495.3
Gross profit		223.3		221.9		201.5
Income from continuing operations		89.4		87.9		63.7
Net income		89.4		87.9		63.7
Capital expenditures		13.3		12.0		16.7
Depreciation and amortization		11.0		10.4		10.3
Dividends received by SPX		30.3		35.2		29.4
Undistributed earnings attributable to SPX Corporation		20.0		8.4		4.6
SPX's equity earnings in EGS		41.9		39.0		28.7

Condensed balance sheet information of EGS as of September 30, 2013 and 2012 was as follows:

	2013		2012

Current assets	$	180.4	$	183.5
Non-current assets		336.4		339.6
Current liabilities		108.0		116.9
Non-current liabilities		24.0		33.0

The carrying value of our investment in EGS was $81.8 and $73.5 at December 31, 2013 and 2012, 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 $89.4 at December 31, 2013.

On January 7, 2014, we completed the sale of our 44.5% interest in EGS to Emerson Electric Co. for $574.1. As a result of the sale, we will record a gain, net of tax, of approximately $300.0 in our first quarter 2014 results of operations.

The financial position, results of operations and cash flows of our other equity method investments are not material, individually or in the aggregate, in relation to our consolidated financial statements.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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