2010 Annual Report - AO Smith

2. Discontinued Operations (continued)
The components of the net assets of EPC discontinued operations included in the consolidated balance sheets are:
December 31 (dollars in millions)
2010 2009
Assets
Current Assets
Trade receivables $ 110.8 $ 98.0
Inventory 135.9 104.5
Deferred taxes 2.2 0.8
Derivative contracts asset 17.4 18.5
Other current assets 6.0 5.5
Total Current Assets 272.3 227.3
Net property, plant and equipment 148.1 163.3
Goodwill 248.4 247.9
Other intangibles 2.8 3.9
Other assets 1.4 1.5
Total Assets $ 673.0 $ 643.9
Liabilities
Current Liabilities
Trade payables $ 89.5 $ 76.1
Accrued payroll and benefits 15.2 12.3
Accrued liabilities 11.1 6.7
Product warranties 4.3 4.3
Income taxes 2.5 0.9
Total Current Liabilities 122.6 100.3
Deferred taxes 77.2 71.7
Total Liabilities 199.8 172.0
Total Net Assets $ 473.2 $ 471.9
The condensed statement of earnings of the EPC discontinued operations is:
Years ended December 31 (dollars in millions, except per share amounts)
2010 2009 2008
Net sales $ 701.8 $ 616.5 $ 853.6
Cost of products sold 544.0 510.5 730.0
Gross profit 157.8 106.0 123.6
Selling, general and administrative expenses 84.2 74.8 76.0
Restructuring and other 0.1 (1.6) 8.7
Interest expense 3.6 4.7 8.8
Other (income) expense - net (0.7) 0.3 (0.3)
70.6 27.6 30.4
Provision (benefit) for income taxes 16.2 (1.3) -
Net earnings $ 54.4 $ 29.1 $ 30.4
Consolidated interest expense not directly attributable to other operations was allocated to discontinued operations based on the
ratio of EPC net assets to be sold to the sum of consolidated net assets plus consolidated debt not directly attributable to other
operations.
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