2010 Annual Report - AO Smith

CONSOLIDATED STATEMENT OF EARNINGS
Years ended December 31 (dollars in millions, except per share amounts)
2010 2009 2008
Continuing Operations
Net sales $ 1,489.3 $ 1,375.0 $ 1,451.3
Cost of products sold 1,043.3 980.1 1,077.2
Gross profit 446.0 394.9 374.1
Selling, general and administrative expenses 328.7 291.8 283.3
Flood related expense 35.4 - -
Restructuring, impairment and settlement income - net 0.1 1.3 2.4
Interest expense 6.9 7.2 11.0
Other expense - net 0.5 2.8 2.3
Earnings before provision for income taxes 74.4 91.8 75.1
Provision for income taxes 17.3 30.9 27.6
Earnings before equity loss in joint venture and discontinued
operations 57.1 60.9 47.5
Equity loss in joint venture - (0.4) (0.3)
Earnings from Continuing Operations 57.1 60.5 47.2
Discontinued Operations
Earnings from discontinued operations, less provision
(benefit) for income taxes of $16.2 in 2010 and $(1.3) in
2009 and $(0.2) in 2008 54.4 29.1 30.1
Net Earnings 111.5 89.6 77.3
Net (earnings)/loss attributable to noncontrolling interest:
Continuing operations 0.2 (9.6) (35.0)
Discontinued operations - 1.3 (20.6)
Net earnings attributable to A. O. Smith Corporation $ 111.7 $ 81.3 $ 21.7
Net Earnings Per Share of Common Stock
Continuing Operations $ 1.25 $ 1.48 $ 0.86
Discontinued Operations 1.19 0.89 0.67
Net Earnings attributable to A. O. Smith Corporation $ 2.44 $ 2.37 $ 1.53
Diluted Net Earnings Per Share of Common Stock
Continuing Operations $ 1.24 $ 1.48 $ 0.86
Discontinued Operations 1.18 0.88 0.67
Net Earnings attributable to A. O. Smith Corporation $ 2.42 $ 2.36 $ 1.53
CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (LOSS)
Years ended December 31 (dollars in millions)
2010 2009 2008
Net Earnings $ 111.5 $ 89.6 $ 77.3
Other comprehensive earnings (loss)
Foreign currency translation adjustments 7.3 2.9 5.6
Unrealized net gain (loss) on cash flow derivative
instruments, less related income tax effect of
$0.1 in 2010, $(35.0) in 2009 and $27.6 in 2008 (0.2) 54.7 (43.1)
Change in pension liability
less related income tax effect of $2.7 in 2010,
$4.3 in 2009 and $92.7 in 2008 (5.6) (6.7) (145.0)
Less comprehensive (earnings) loss attributable to
noncontrolling interest - (20.6) 68.7
Reclass of accumulated comprehensive loss associated with
noncontrolling interest - (179.7) -
Comprehensive Earnings (Loss) $ 113.0 $ (59.8) $ (36.5)
See accompanying notes which are an integral part of these statements.
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