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Document and Entity Information - USD ($) shares in Millions, $ in Billions	12 Months Ended
	Dec. 31, 2010	Feb. 11, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	ITT CORP
Entity Central Index Key	0000216228
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 8.3
Entity Common Stock, Shares Outstanding		183.7

Consolidated Income Statements - USD ($) shares in Millions	12 Months Ended
Consolidated Income Statements - USD ($) shares in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Income Statements
Product revenue	$ 8,494,000,000	$ 8,244,000,000	$ 9,181,000,000
Service revenue	2,501,000,000	2,430,000,000	2,295,000,000
Total revenue	10,995,000,000	10,674,000,000	11,476,000,000
Costs of product revenue	5,624,000,000	5,528,000,000	6,255,000,000
Costs of service revenue	2,196,000,000	2,122,000,000	2,007,000,000
Total costs of revenue	7,820,000,000	7,650,000,000	8,262,000,000
Gross profit	3,175,000,000	3,024,000,000	3,214,000,000
Selling, general and administrative expenses	1,584,000,000	1,555,000,000	1,689,000,000
Research and development expenses	253,000,000	258,000,000	236,000,000
Asbestos-related costs, net	385,000,000	238,000,000	14,000,000
Restructuring and asset impairment charges, net	53,000,000	79,000,000	77,000,000
Operating income	900,000,000	894,000,000	1,198,000,000
Interest expense	100,000,000	99,000,000	140,000,000
Interest income	16,000,000	24,000,000	31,000,000
Miscellaneous (income) expense, net	(2,000,000)	9,000,000	13,000,000
Income from continuing operations before income tax expense	818,000,000	810,000,000	1,076,000,000
Income tax expense	164,000,000	169,000,000	308,000,000
Income from continuing operations	654,000,000	641,000,000	768,000,000
Income from discontinued operations, including tax (expense) benefit of $(8), $(1) and $2, respectively	144,000,000	3,000,000	27,000,000
Net income	$ 798,000,000	$ 644,000,000	$ 795,000,000
Basic:
Continuing operations	$ 3.55	$ 3.51	$ 4.22
Discontinued operations	0.79	0.02	0.15
Net income	4.34	3.53	4.37
Diluted:
Continuing operations	3.53	3.49	4.17
Discontinued operations	0.77	0.01	0.15
Net income	$ 4.3	$ 3.5	$ 4.32
Weighted average common shares - basic	183.9	182.5	181.9
Weighted average common shares - diluted	185.3	183.9	184.0
Cash dividends declared per common share	$ 1	$ 0.85	$ 0.7

Consolidated Income Statements (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Income Statements
Tax (expense) benefit from discontinued operations	$ (8)	$ (1)	$ 2

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income	$ 798	$ 644	$ 795
Other comprehensive income:
Net foreign currency translation adjustment	(74)	126	(221)
Net change in postretirement benefit plans, net of tax (expense) benefit of $(19), $(89) and $781, respectively	27	146	(1,338)
Net change in unrealized gains on investment securities, net of tax (expense) of $0, $(7) and $0, respectively	0	11	0
Other comprehensive (loss) income	(47)	283	(1,559)
Comprehensive income (loss)	751	927	(764)
Net foreign currency translation adjustment:
Foreign currency translation (loss) gain	(74)	126	(215)
Foreign currency translation gains included in net income	0	0	(6)
Net foreign currency translation adjustment	(74)	126	(221)
Net change in postretirement benefit plans, net of tax:
Prior service (cost) benefit from plan amendment, net of tax benefit (expense) of $1, $(1) and $(1), respectively	(3)	2	2
Net actuarial (loss) gain arising during the period, net of tax benefit (expense) of $14, $(61) and $792, respectively	(24)	100	(1,357)
Unrealized changes in postretirement benefit plans, net of tax	(27)	102	(1,355)
Amortization of prior service costs, net of tax benefit of $1, $3 and $2, respectively	1	5	4
Amortization of net actuarial loss, net of tax benefit of $33, $24 and $8, respectively	53	39	13
Total amortization from accumulated other comprehensive income into net period benefit cost, net of tax	54	44	17
Net change in postretirement benefit plans, net of tax	27	146	(1,338)
Net change in unrealized gains on investment securities, net of tax:
Unrealized holding gains arising during period, net of tax expense of $3, $7 and $0, respectively	4	11	0
Realized gains arising during the period, net of tax expense of $3, $0 and $0, respectively	(4)	0	0
Net change in unrealized gains on investment securities, net of tax (expense) of $0, $(7) and $0, respectively	$ 0	$ 11	$ 0

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Tax (expense) benefit of change in postretirement benefit plans	$ (19)	$ (89)	$ 781
Tax (expense) of net change in unrealized gain on investment securities	0	(7)	0
Tax (expense) benefit of prior service gain from plan amendment	1	(1)	(1)
Tax (expense) benefit of Net actuarial gain (loss) arising during the period	14	(61)	792
Tax benefit of Amortization of prior service costs	1	3	2
Tax (expense) of Amortization of net actuarial loss	33	24	8
Tax expense of Unrealized holding gains arising during period	3	7	0
Tax expense of realized gains arising during the period	$ 3	$ 0	$ 0

Consolidated Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2010

Dec. 31, 2009

Current assets:

Cash and cash equivalents

$ 1,032

$ 1,216

Receivables, net

1,944

1,754

Inventories, net

856

802

Other current assets

562

579

Total current assets

4,394

4,351

Plant, property and equipment, net

1,205

1,050

Deferred income taxes

554

583

Goodwill

4,277

3,788

Other intangible assets, net

766

501

Asbestos-related assets

930

604

Other non-current assets

312

252

Total non-current assets

8,044

6,778

Total assets

12,438

11,129

Current liabilities:

Accounts payable

1,472

1,273

Accrued liabilities

1,262

1,276

Short-term borrowings and current maturities of long-term debt

Total current liabilities

2,745

2,624

Postretirement benefits

1,733

1,788

Long-term debt

1,354

1,431

Asbestos-related liabilities

1,559

867

Other non-current liabilities

542

541

Total non-current liabilities

5,188

4,627

Total liabilities

7,933

7,251

Common Stock:

Authorized - 500.0 shares, $1 par value per share (206.9 shares issued),Outstanding - 184.0 shares and 182.9 shares, respectively

^[1]

183

181

Retained earnings

5,409

4,737

Total accumulated other comprehensive loss

(1,087)

(1,040)

Total shareholders' equity

4,505

3,878

Total liabilities and shareholders' equity

$ 12,438

$ 11,129

[1]	Shares outstanding include unvested restricted common stock of 1.0 and 1.3 at December 31, 2010 and 2009, respectively.

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions	Dec. 31, 2010	Dec. 31, 2009
Shareholders' Equity:
Common stock, shares authorized	500.0	500.0
Common stock, par value	$ 1	$ 1
Common Stock, shares issued	206.9	206.9
Common stock, shares outstanding	184.0	182.9
Common stock, unvested restricted common stock included in shares outstanding	1.0	1.3

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Operating Activities
Net income	$ 798	$ 644	$ 795
Less: Income from discontinued operations	144	3	27
Income from continuing operations	654	641	768
Adjustments to income from continuing operations:
Depreciation and amortization	297	289	274
deferred income taxes	(115)	(77)	12
Stock-based compensation	30	31	30
Asbestos-related costs, net	385	238	14
Restructuring and asset impairment charges, net	53	79	77
Payments for restructuring	(70)	(82)	(54)
Contributions to pension plans	(76)	(161)	(24)
Change in receivables	(150)	187	(108)
Change in inventories	50	21	70
Change in accounts payable	174	33	(50)
Change in accrued liabilities	47	6	109
Change in accrued taxes	(73)	63	5
Change in other assets	(24)	(21)	(5)
Change in other liabilities	35	(13)	(7)
Other, net	17	24	(4)
Net Cash - Operating activities	1,234	1,258	1,107
Investing Activities
Capital expenditures	(328)	(271)	(248)
Acquisitions, net of cash acquired	(1,041)	(34)	(276)
Proceeds from sale of discontinued operations and other assets	257	20	22
Other, net	(5)	0	0
Net Cash - Investing activities	(1,117)	(285)	(502)
Financing Activities
Short-term debt, net	(63)	(1,603)	(1,229)
Long-term debt repaid	(79)	(29)	(23)
Long-term debt issued	1	992	1
Repurchase of common stock	0	0	(75)
Proceeds from issuance of common stock	28	15	34
Dividends paid	(176)	(148)	(121)
Other, net	(1)	1	6
Net Cash - Financing activities	(290)	(772)	(1,407)
Exchange rate effects on cash and cash equivalents	(18)	40	(74)
Net cash from discontinued operations	7	10	1
Net change in cash and cash equivalents	(184)	251	(875)
Cash and cash equivalents - beginning of year	1,216	965	1,840
Cash and Cash Equivalents - End of Year	1,032	1,216	965
Cash paid during the year for:
Interest	92	90	136
Income taxes (net of refunds received)	$ 343	$ 181	$ 280

Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Beginning Balance	$ 3,878	$ 3,060	$ 3,945
Net income	798	644	795
Net change in postretirement benefit plans, net of tax (expense) benefit of $(19), $(89) and $781, respectively	27	146	(1,338)
Net foreign currency translation adjustment	(74)	126	(215)
Net change in unrealized gains on investment securities	0	11	0
Net change in common stock	2	1	0
Net change in retained earnings	672	534	674
Net change in accumulated other comprehensive income	(47)	283	(1,559)
Ending Balance	4,505	3,878	3,060
Common Stock [Member]
Statement [Line Items]
Beginning Balance	$ 181	$ 180	$ 180
Beginning Balance, Shares	181	180	180
Activity from stock incentive plans, Shares	2	1	1
Activity from stock incentive plans	$ 2	$ 1	$ 1
Repurchase of common stock, Shares	0	0	(1)
Repurchase of common stock	$ 0	$ 0	$ (1)
Ending Balance, Shares	183	181	180
Ending Balance	$ 183	$ 181	$ 180
Retained Earnings [Member]
Statement [Line Items]
Beginning Balance	4,737	4,203	3,529
Net income	798	644	795
Cash dividends declared on common stock	(184)	(155)	(127)
Repurchase of common stock, additional paid-in-capital	0	0	(75)
Activity from stock incentive plans, additional paid-in-capital	58	45	81
Ending Balance	5,409	4,737	4,203
Accumulated Other Comprehensive Income [Member]
Statement [Line Items]
Beginning Balance	(1,040)	(1,323)
Postretirement benefit plans, beginning balance	(1,388)	(1,534)	(196)
Net change in postretirement benefit plans, net of tax (expense) benefit of $(19), $(89) and $781, respectively	27	146	(1,338)
Postretirement benefit plans, ending balance	(1,361)	(1,388)	(1,534)
Cumulative translation adjustments, beginning balance	336	210	431
Net foreign currency translation adjustment	(74)	126	(221)
Cumulative translation adjustments, ending balance	262	336	210
Unrealized gain on investment securities, beginning balance	12	1	1
Net change in unrealized gains on investment securities	0	11	0
Unrealized gain on investment securities, ending balance	12	12	1
Ending Balance	$ (1,087)	$ (1,040)	$ (1,323)

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2010
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 Summary of Significant Accounting Policies *Basis of Presentation* ITT Corporation is a global multi-industry leader in high-technology engineering and manufacturing, operating through three principal business segments; Defense & Information Solutions (Defense segment), Fluid Technology (Fluid segment) and Motion & Flow Control (Motion & Flow segment). The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Corporation and its subsidiaries. Certain prior year amounts have been reclassified to conform to the current year presentation. Reclassifications principally relate to the designation of CAS, Inc. (CAS) as a discontinued operation and accordingly, these reclassifications have affected the results of continuing operations for historical periods. See Note 4, “Discontinued Operations,” in our Notes to the Consolidated Financial Statements for further information on the CAS divestiture. *Use of Estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers and other responsible parties, postretirement obligations and assets, revenue recognition, income tax contingency accruals and valuation allowances, goodwill impairment testing and contingent liabilities. Actual results could differ from these estimates. *Consolidation Principles* ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Income Statements. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. All intercompany transactions have been eliminated. *Business Combinations* ITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests acquired based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill. Changes to acquisition date fair values after expiration of the measurement period are recorded in earnings. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred. *Revenue Recognition* Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction-type contracts, we recognize revenue at the time title and risks and rewards of ownership pass, which is generally when products are shipped. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Service revenue is recognized as services are performed. For agreements that contain multiple deliverables, we recognize revenue for a delivered element when it has stand-alone value to the customer, there is objective and reliable evidence of fair value of the undelivered elements, and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The Defense segment and certain businesses within the Fluid segment enter into long-term construction-type sales contracts for which revenue is recognized under the percentage-of-completion method based upon units of delivery, percentage of costs incurred to total costs, or the completion of scheduled performance milestones. For units of delivery, revenues and profits are recognized based upon the ratio of actual units delivered to estimated total units to be delivered under the contract. Under the cost-to-total cost method, revenue is recognized based upon the ratio of costs incurred to estimated total costs at completion. Revenue is recognized under the milestone method, based upon accomplishing a clear deliverable output of contract performance with value to the customer. Revenue under cost-reimbursement contracts is recorded as costs are incurred and includes estimated earned fees or profits calculated on the basis of the relationship between costs incurred and total estimated costs. Revenue and profits on time-and-material type contracts are recognized based on billable rates times direct labor hours incurred plus material and other reimbursable costs incurred. The completed contract method is utilized when reasonable and reliable cost estimates for a project cannot be made. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied, and is recorded as a component of accounts payable. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of trade receivables. During the performance of long-term sale contracts, estimated final contract prices and costs are periodically reviewed and revisions are made as required and recorded in earnings in the period in which they are determined. Additionally, the fees under certain contracts may be increased or decreased in accordance with cost or performance incentive provisions which measure actual performance against established targets or other criteria. Such incentive fee awards or penalties are included in revenue when there is sufficient information to reasonably assess anticipated contract performance. Our claims on contracts are recorded only if it is probable the claim will result in additional contract revenue and the amounts can be reliably estimated. Provisions for estimated losses, if any, on uncompleted long-term contracts, are made in the period in which such losses are determined and are recorded as a component of costs of revenue. We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. Additionally, accruals for estimated expenses related to warranties are made at the time products are sold or services are rendered and are recorded as a component of costs of revenue. These accruals are established using historical information on the nature, frequency and average cost of warranty claims and estimates of future costs. Revenue is reported net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. *Shipping and Handling Costs* Shipping and handling costs are recorded as a component of costs of revenue. *Postretirement Benefit Plans* ITT sponsors numerous pension and other employee-related defined benefit plans (collectively, postretirement benefit plans) for employees around the world. The determination of benefit obligations and the recognition of expenses related to postretirement plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets, rate of future compensation increases, mortality, termination, health care inflation trend rates and other factors. Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist. All actuarial assumptions are reviewed periodically with third-party consultants and adjusted as necessary. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last five years. Actual results that differ from our assumptions are accumulated and amortized over the estimated future working life of the plan participants. The fair value of plan assets is determined based on market prices or estimated fair value at the measurement date. See Note 16, “Postretirement Benefit Plans,” for further information on the measurement of fair value. The funded or unfunded position of each plan is recorded on our balance sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through net income are recorded in accumulated other comprehensive income within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost. *Research and Development* Research and development (R&D) programs include Company-sponsored activities as well as activities performed pursuant to customer contracts. R&D costs incurred as part of a Company-sponsored activity are charged to expense as incurred and are reported as a component of operating income within the R&D expense line. R&D costs incurred under customer contracts reported as a component of costs of revenue when the expense is incurred. *Stock-Based Compensation* Stock-based awards issued to employees and non-employee directors include non-qualified stock options, restricted stock awards and certain liability-based awards. Compensation costs resulting from share-based payment transactions are recognized primarily within SG&A, at fair value over the requisite service period (typically three years) on a straight-line basis. The calculated compensation cost is adjusted based on an estimate of awards ultimately expected to vest. The fair value of a non-qualified stock option is determined on the date of grant using a binomial lattice pricing model incorporating multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The fair value of restricted stock awards is determined using the closing price of the Company’s common stock on date of grant. The fair value of our liability-based awards, including cash awards under our Long-Term Incentive Plan, is reassessed at the end of each reporting period, including an adjustment for awards that are not ultimately expected to vest. *Asbestos-Related Contingencies and Receivables* ITT is a defendant in product liability lawsuits alleging personal injury due to asbestos exposure. We recognize an undiscounted liability for any asbestos-related contingency that is probable of occurrence and reasonably estimable. We have accrued for the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees. Factors utilized in determining the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, and the number of new claims filed against the Company. In light of the uncertainties and variables inherent in the long-term projection of the Company’s total asbestos liability, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years, we do not believe there is a reasonable basis for estimating those costs at this time. In addition, the Company retains a consulting firm to assist management in estimating our potential exposure to pending asbestos claims and for claims estimated to be filed over the next 10 years. The Company has also recorded an asbestos asset, comprised predominantly of an insurance asset and expected recoveries from other responsible parties. The asbestos asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. The timing and amount of reimbursements will vary due to differing policy terms and certain gaps in coverage as a result of possible insurer insolvencies. As part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. In the third quarter each year, we conduct a detailed study with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions to estimate our asbestos liability and related assets. Additionally, we periodically reassess the time horizon over which a reasonable estimate of unasserted claims can be projected. *Restructuring* We periodically initiate management approved restructuring activities to achieve cost savings through reduced operational redundancies and to strategically position ourselves in the market in response to prevailing economic conditions and associated customer demand. Costs associated with restructuring actions can include severance, infrastructure charges to vacate facilities or consolidate operations, contract termination costs and other related charges. For involuntary separation plans, a liability is recognized when it is probable and reasonably estimable. For voluntary separation plans, a liability is recognized when the employee irrevocably accepts the voluntary termination. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as lease termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change. *Income Taxes* We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. We record a valuation allowance to reduce deferred tax assets when uncertainty regarding their realizability exists. In assessing the need for a valuation allowance, we look to the future reversal of existing taxable temporary differences, taxable income in carryback years, the feasibility of tax planning strategies and estimated future taxable income. The valuation allowance can be affected by changes to tax laws, changes to statutory tax rates and changes to future taxable income estimates. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. *Foreign Currency Translation* The national currencies of our foreign companies are generally the functional currencies. Balance sheet accounts are translated at the exchange rate in effect at the end of each period; income statement accounts are translated at the average rates of exchange prevailing during the period. Gains and losses on foreign currency translations are reflected in the cumulative translation adjustments component of shareholders’ equity. Net gains or losses from foreign currency transactions are reported currently in selling, general and administrative expenses. *Earnings Per Share* Basic earnings per common share considers the weighted average number of common shares outstanding, as well as outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends. *Cash and Cash Equivalents* ITT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. We did not have any investments in marketable securities reported within cash and cash equivalents as of December 31, 2010. As of December 31, 2009, marketable securities included in cash and cash equivalents totaled $72. *Concentrations of Credit Risk* Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, and derivative contracts. We maintain cash and cash equivalents and derivative contracts with various financial institutions. These financial institutions are located in many different geographical regions, and our policy is designed to limit exposure with any one institution. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from instruments held at financial institutions. We may utilize forward contracts to protect against the effects of foreign currency fluctuations. Such contracts involve the risk of non-performance by the counterparty. The U.S. government accounted for 25% and 18% of gross accounts receivable at December 31, 2010 and 2009, respectively. Credit risk with respect to other accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. ITT performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances. *Allowance for Doubtful Accounts* We determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. *Inventories* Inventories are recorded at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. A full absorption policy is employed using standard cost techniques that are periodically reviewed and adjusted. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value. Inventories valued under the last-in, first-out (LIFO) method represent 7.1% and 6.4% of total 2010 and 2009 inventories, respectively. There would not have been a material difference in the value of inventories if the FIFO method had been used to value all inventories. Inventoried costs related to long-term contracts are stated at the actual production cost, including overhead and other related non-recurring costs incurred to date reduced by amounts identified with revenue recognized on units delivered or progress completed. General and administrative costs applicable to cost-reimbursement type contracts are also included in inventories. Inventoried costs relating to long-term contracts and programs are reduced by charging any amounts in excess of estimated realizable value to costs of revenue. *Plant, Property and Equipment* Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the economic useful lives of the assets involved as follows: buildings and improvements – five to 40 years, machinery and equipment – two to 10 years, furniture and office equipment – three to seven years, and other – five to 40 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. *Capitalized Internal Use Software* ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from three to seven years. *Long-Lived Asset Impairment* Long-lived assets, including intangible assets with finite lives, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. *Goodwill and Intangible Assets* Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of acquired businesses. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are amortized on a straight-line basis over an estimated economic useful life, which generally range from 15-20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth quarter. For goodwill, the impairment test is a two-step test. In the first step, the estimated fair value of each reporting unit is compared to the carrying value of the net assets assigned to that reporting unit. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and the second step of the impairment test is not performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. We estimate the fair value of our reporting units and indefinite-lived intangible assets using an income approach. Under the income approach, we estimate fair value based on the present value of estimated future cash flows. *Commitments and Contingencies* We record accruals for commitments and loss contingencies for those which are both probable and the amount can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other updated information. Accruals for environmental matters are recorded on a site by site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information become available. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties. Recoveries from insurance companies or other third parties are primarily included in other non-current assets when the recovery is probable. *Fair Value Measurements* We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a hierarchical structure to prioritize the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), then to quoted market prices for similar assets or liabilities in active markets (Level 2) and gives the lowest priority to unobservable inputs (Level 3). *Derivative Financial Instruments* ITT uses derivative financial instruments, primarily foreign currency forward contracts, to mitigate exposure from foreign currency exchange rate fluctuations as it pertains to intercompany transactions. We do not use derivative instruments for speculative purposes. We record derivatives at their fair value as either a current asset or current liability. We include adjustments to reflect changes in fair values of derivatives in earnings as these contracts are not designated as hedges. The amount of gains and losses recorded related to our foreign currency exchange contracts and the net fair value of our outstanding contracts was not material as of and for the years ended 2010, 2009 and 2008. The fair values associated with the foreign currency contracts have been determined using the net position of the contracts and the applicable spot rates and forward rates as of the reporting date. ITT may use interest rate swaps to manage its debt portfolio, the related financing costs and interest rate structure. Interest rate swaps involve the periodic exchange of payments without the exchange of underlying principal or notional amounts. Net payments are recognized as an adjustment to interest expense. When interest rate swaps designated as hedges are terminated, unrealized gains or losses are deferred and amortized over the shorter of the remaining original term of the hedging instrument or the remaining life of the underlying debt instrument. Such gains or losses are reflected in net interest expense. As of December 31, 2010 and 2009 we did not have any material open interest rate swaps.

New Accounting Pronouncements	12 Months Ended
New Accounting Pronouncements	Dec. 31, 2010
New Accounting Pronouncements [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	NOTE 2 New Accounting Pronouncements *Pronouncements Not Yet Adopted* In December 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2010-28, which provides additional guidance when testing goodwill for impairment. Specifically, for reporting units with zero or negative carrying amounts, an entity is required to perform the second step of the goodwill impairment test if it is more likely than not that a goodwill impairment exists, considering any adverse qualitative factors. As of the date of our 2010 annual goodwill impairment test, the net carrying amounts for each of our reporting units exceeded zero. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. We currently do not expect the adoption of this ASU on January 1, 2011 to have a significant effect on our Consolidated Financial Statements. In October 2009, the FASB issued ASU No. 2009-13, which amended the accounting for revenue arrangements that contain multiple elements. The objective of this amendment is to address the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than as a combined unit. The amendments establish a hierarchy for determining the selling price of a deliverable and will allow for the separation of products and services in more instances than previously permitted. The guidance provided within ASU 2009-13 is effective for new or materially modified arrangements in fiscal years beginning on or after June 15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We will adopt the provisions of this ASU on January 1, 2011. Although we continue to evaluate the effects adoption of this ASU will have, we currently do not believe our results of operations, financial position or liquidity will be adversely affected. In October 2009, the FASB issued ASU No. 2009-14, which amended the accounting requirements for software revenue recognition. The objective of this update is to address the accounting for revenue arrangements that contain tangible products and software. Specifically, products that contain software that is “more than incidental” to the product as a whole will be removed from the scope of the software revenue recognition literature. The amendments align the accounting for these revenue transaction types with the amendments described under ASU 2009-13 above. The guidance provided within ASU 2009-14 is effective for new or materially modified arrangements in fiscal years beginning on or after June 15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We do not believe adoption of this ASU on January 1, 2011 will have a significant impact on our Consolidated Financial Statements. In April 2010, the FASB issued ASU No. 2010-17, which establishes authoritative guidance permitting use of the milestone method of revenue recognition for research or development arrangements that contain payment provisions or consideration contingent on the achievement of specified events. This guidance is effective for milestones achieved in fiscal years beginning on or after June 15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We do not believe adoption of this ASU on January 1, 2011 will have a significant impact on our Consolidated Financial Statements. *Recently Adopted Accounting Pronouncements* In June 2009, the FASB amended the accounting and disclosure requirements related to the consolidation of variable interest entities (VIE(s)). The amendments include replacing the quantitative-based risks and rewards calculation for determining which enterprise, if any, has a controlling financial interest in VIE(s) with an approach focused on identifying which enterprise has the power to direct the activities of VIE(s) that most significantly impact the entity’s economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. In addition, the amendments require an ongoing assessment of whether an enterprise is the primary beneficiary of the VIE(s) and requires additional disclosures about an enterprise’s involvement in VIE(s). The adoption of these amendments on January 1, 2010 did not have a material impact on our Consolidated Financial Statements. In September 2009, the FASB issued ASU 2009-12 which provides guidance under the Fair Value Measurements and Disclosures Topic, ASC 820-10. The new guidance provides investors a practical expedient for measuring the fair value of investments in certain entities that calculate net asset value per share (NAV). This ASU is effective for periods ending after December 15, 2009. Adoption did not have a material effect on our Consolidated Financial Statements. In August 2009, the FASB issued ASU 2009-05 which provides additional guidance on the application of fair value techniques for liabilities under the Fair Value Measurements and Disclosures Topic (ASC 820). The guidance clarifies that the quoted price for the liability when traded as an asset in an active market is a Level 1 measurement, when no adjustment to the quoted price is required. In the absence of a Level 1 (quoted price) measurement, an entity must use one or more valuation techniques to estimate fair value in a manner consistent with the principles in ASC 820. The requirements under this ASU were effective for our fourth quarter period beginning October 1, 2009. Adoption did not have a material effect on our Consolidated Financial Statements. In January 2009, the FASB amended the requirements pertaining to the method of applying the acquisition method of accounting for business combinations. These amendments included that acquisition costs will generally be expensed as incurred; noncontrolling interests will be valued at fair value at the acquisition date; in-process research and development will be recorded at fair value as an indefinite-lived intangible asset at the acquisition date; restructuring costs associated with a business combination will generally be expensed subsequent to the acquisition date; and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. These amendments have been applied prospectively to business combinations with an acquisition date subsequent to January 1, 2009. While the new business combination accounting guidance did not have a material impact on our Consolidated Financial Statements on adoption, the effects on future periods will depend upon the nature and significance of future business combinations.

Acquisitions	12 Months Ended
Acquisitions	Dec. 31, 2010
Acquisitions [Abstract]
ACQUISITIONS	NOTE 3 Acquisitions During 2010, we spent an aggregate of $1,041, net of cash acquired, primarily on the acquisitions of Nova Analytics Corporation (Nova) and Godwin Pumps of America, Inc. and Godwin Holdings Limited (collectively referred to as Godwin). The results of operations and cash flows from our 2010 acquisitions have been included in our Consolidated Financial Statements prospectively from their date of acquisition. Pro forma results of operations for acquisitions completed in 2010, 2009 and 2008 have not been presented because they are not material to our Consolidated Financial Statements, either individually or in the aggregate. Provided below is additional information related to the Nova and Godwin acquisitions. *Nova Analytics* On March 23, 2010, we acquired 100% of the outstanding stock of Nova, a manufacturer of premium quality laboratory, field, portable and on-line analytical instruments used in water and wastewater, environmental, medical, and food and beverage applications, for a purchase price of $385, net of cash acquired. Nova provides us with brands, technologies, distribution and after-market content in the analytical instrumentation market. The addition of Nova broadens the solutions our Fluid segment offers customers in key markets such as municipal water and wastewater, industrial processing, and food and beverage. The purchase price for Nova was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of March 23, 2010. The aggregate estimated fair value of distributor relationships, trademarks and proprietary technology was $112, $42 and $10, respectively. Other assets acquired and liabilities assumed as part of the acquisition were $70 primarily related to working capital balances and $81 primarily related to deferred tax liabilities, respectively. The excess of the purchase price over the estimated fair value of net assets acquired equal to $232 was recorded as goodwill (which is not expected to be deductible for income tax purposes). The goodwill arising from the acquisition consists largely of the planned expansion of the Nova footprint to new geographic markets, synergies and economies of scale. All of the goodwill has been assigned to the Fluid segment. *Godwin Pumps* On August 3, 2010, we acquired 100% of the privately held stock of Godwin for a purchase price of $580, net of cash acquired. Godwin is a supplier and servicer of automatic self-priming and on-demand pumping solutions serving the global industrial, construction, mining, municipal, oil and gas dewatering markets. The addition of Godwin’s specialized products and skills to our Fluid segment’s broad submersible pump portfolio and global sales and distribution network provides significant geographic expansion opportunities. The purchase price for Godwin was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of August 3, 2010. The aggregate estimated fair value of customer relationships, trademarks and proprietary technology was $107, $46 and $14, respectively. Other assets acquired as part of the acquisition were $191, primarily including rental equipment, inventory, and trade receivables. Liabilities assumed as part of the acquisition were $30. The excess of the purchase price over the fair value of net assets acquired equal to $252 was recorded as goodwill, a significant portion of which is expected to be deductible for income tax purposes. The goodwill arising from the acquisition is primarily related to the planned geographic expansion of Godwin’s operations. All of the goodwill has been assigned to the Fluid segment. *2009 and 2008 Acquisitions* During 2009, we spent $34, net of cash acquired, on acquisitions that were not material individually or in the aggregate to our results of operations or financial position. The most significant of these acquisitions was Laing GmbH (Laing), which we acquired in May of 2009. Laing, a privately held producer of energy-efficient circulator pumps primarily used in residential and commercial plumbing and heating, ventilating and air conditioning systems, was fully integrated into the Fluid segment during 2009. During 2008, we spent $276, net of cash acquired, on acquisitions that were not material individually or in the aggregate to our results of operations or financial position. The cash spent on acquisitions during 2008 included $226 related to our 2007 acquisition of EDO Corporation (EDO), a global aerospace and defense company.

Discontinued Operations

12 Months Ended

Dec. 31, 2010

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

NOTE 4

Discontinued Operations

During 2010 we sold CAS, Inc. (CAS), a component of our Defense & Information Solutions business segment (Defense segment) engaging in systems engineering and technical assistance (SETA) for the U.S. Government. The sale of CAS was completed on September 8, 2010, resulting in the recognition of a $130 after-tax gain, reported as a component of income from discontinued operations within our Consolidated Income Statements. This transaction resulted in a tax benefit of $4, primarily due to the difference in the book and tax bases of CAS. Proceeds from the sale of CAS were $237.

Subsequent to this divestiture, we do not have any significant continuing involvement in the operations of CAS, nor do we expect significant continuing cash flows from CAS. Accordingly, the financial position and results of operations from CAS are reported as a discontinued operation for the periods presented. The following table provides third-party revenue and operating income provided by CAS included within discontinued operations.


	2010		2009		2008
Revenue	$	160	$	231	$	218
Pre-tax operating income		13		15		12

Assets and liabilities of CAS reported as discontinued operations within our Consolidated Balance Sheet are presented in the table below.


	2009
Receivables, net	$	43
Plant, property and equipment, net		1
Goodwill		76
Other intangible assets, net		18
Deferred income taxes		2
Other assets		1

Total assets of discontinued operations	$	141

Accounts payable	$	19
Accrued expenses		17
Deferred income taxes		8

Total liabilities of discontinued operations	$	44

We did not engage in any divestiture actions that were material individually or in the aggregate to our results of operations or financial position, in either 2009 or 2008. We received proceeds from the sale of assets and businesses of $20 and $22 during 2009 and 2008, respectively. Amounts reported as discontinued operations within the Consolidated Income Statements for these years pertain to costs incurred on previously divested businesses that were reported as discontinued operations in the period of divestiture.

Restructuring and Asset Impairment Charges

12 Months Ended

Dec. 31, 2010

Restructuring and Asset Impairment Charges [Abstract]

RESTRUCTURING AND ASSET IMPAIRMENT CHARGES

NOTE 5

Restructuring and Asset Impairment Charges

We have initiated various restructuring activities throughout the business during the past three years, of which only the realignment of our Defense segment in 2010 and an entity-wide reduction in force in the fourth quarter of 2008 are considered individually significant. See further discussion on these two plans below.

The components of all restructuring costs incurred during each of the previous three years ended are presented below.


	2010			2009			2008
By component:
Severance charges	$	47		$	71		$	66
Other restructuring charges		10			11			10
Reversal of restructuring accruals		(5	)		(3	)		(2	)

Total net restructuring charge		52			79			74
Asset impairment charge		1			–			3

Total net restructuring and impairment charge	$	53		$	79		$	77

By segment:
Defense	$	33		$	5		$	11
Fluid		14			37			34
Motion & Flow		5			37			30
Corporate and Other		1			–			2

The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for the each of the previous three years ended.


	2010			2009
Restructuring accruals – 1/1	$	53		$	58
Charges for plans initiated during the year		50			71
Charges for plans initiated in prior years		7			11
Cash payments		(70	)		(82	)
Asset write-offs		(1	)		(2	)
Reversal of accruals		(5	)		(3	)
Foreign exchange translation and other		(2	)		–

Restructuring accruals – 12/31	$	32		$	53

By accrual type:
Severance accrual	$	26		$	46
Facility carrying and other costs accrual		6			7

By segment:
Defense	$	17		$	4
Fluid		7			18
Motion & Flow		8			31
Corporate and Other		–			–

The following is a rollforward of employee position eliminations associated with restructuring activities through 2010:


	2010			2009
Planned reductions – 1/1		407			510
Additional planned reductions		1,265			1,125
Actual reductions		(1,488	)		(1,228	)

Planned reductions – 12/31		184			407

2010 Defense Segment Realignment Activities

During the first quarter of 2010, we initiated an action to realign our Defense segment to enable better product portfolio integration, encouraging a more coordinated market approach and reduced operational redundancies. As part of the strategic realignment of the Defense segment, the previous organizational structure, consisting of seven divisions, was consolidated into three larger divisions. The charges incurred during 2010 under this action primarily related to employee severance, and to a lesser extent, lease cancellation and other costs associated with three facilities that were substantially closed during 2010. Headcount reductions totaling 642 were originally planned under this action, including 162 factory workers, 457 office workers and 23 management employees. As of December 31, 2010, substantially all of this headcount initiative has been completed. We do not expect to incur significant restructuring charges under this action going forward. We estimate our Defense realignment actions will yield approximately $53 in annual net savings. The following table provides a rollforward of the restructuring accrual associated with this action, including the related charges and payments.


	2010
Restructuring accruals – 1/1	$	–
Restructuring charges		28
Cash payments		(18	)
Reversal of accruals		(1	)
Foreign exchange translation and other		–

Restructuring accruals – 12/31	$	9

Fourth Quarter 2008 Reduction in Force Activities

During the fourth quarter of 2008, we initiated an action to reduce headcount across our businesses in response to declining economic conditions. The fourth quarter 2008 reduction in force activities resulted in $64 of total restructuring charges. The charges by segment were: Fluid $29, Motion & Flow $23, Defense $11 and Corporate & Other $1. This action has resulted in a total headcount reduction of 1,257, including 601 factory workers, 628 office workers and 28 management employees. The following table provides a rollforward of the restructuring accrual associated with this action, including the related charges and payments.


	2010			2009
Restructuring accruals – 1/1	$	8		$	46
Restructuring charges		–			8
Cash payments		(4	)		(45	)
Reversal of accruals		(1	)		(1	)
Foreign exchange translation and other		–			–

Restructuring accruals – 12/31	$	3		$	8

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes [Abstract]

INCOME TAXES

NOTE 6

Income Taxes

Income tax data from continuing operations is as follows:


	2010			2009			2008
Income components:
United States	$	352		$	432		$	651
International		466			378			425

Total pre-tax income	$	818		$	810		$	1,076

Income tax expense components:
Current income tax provision:
United States – federal	$	152		$	129		$	160
United States – state and local		18			8			5
International		109			109			131

Total current income tax provision		279			246			296

Deferred income tax provision:
United States – federal		(112	)		(45	)		19
United States – state and local		(9	)		(14	)		(1	)
International		6			(18	)		(6	)

Total deferred income tax provision		(115	)		(77	)		12

Total income tax expense	$	164		$	169		$	308
Effective income tax rate		20.0	%		20.9	%		28.6	%

A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows:


	2010			2009			2008
Tax provision at U.S. statutory rate		35.0	%		35.0	%		35.0	%
International restructurings		–			(7.1	)		–
Foreign tax rate differential		(5.9	)		(4.4	)		(2.2	)
Effect of repatriation of foreign earnings		(3.1	)		(0.4	)		(0.4	)
State and local income tax		1.1			(1.5	)		0.4
Research credit		(1.1	)		(0.9	)		(0.3	)
Tax examinations		(1.4	)		–			–
Domestic manufacturing deduction		(2.6	)		(1.3	)		(0.3	)
Tax account validation adjustment		–			–			(3.9	)
Other		(2.0	)		1.5			0.3

Effective income tax expense rate		20.0	%		20.9	%		28.6	%

Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted tax rates in effect for the year in which we expect the differences will reverse.

Deferred tax assets and liabilities include the following:


	2010			2009
Deferred Tax Assets:
Employee benefits	$	650		$	736
Accruals		391			281
Loss carryforwards		148			200
Other		110			39

Subtotal		1,299			1,256
Valuation allowance		(116	)		(150	)

Net deferred tax assets	$	1,183		$	1,106

Deferred Tax Liabilities:
Intangibles	$	355		$	324
Accelerated depreciation		50			47
Investment		8			16

Total deferred tax liabilities	$	413		$	387

Included within the deferred tax table provided above is $6 of net deferred tax liability as of December 31, 2009 related to discontinued operations.

Deferred taxes in the Consolidated Balance Sheets consist of the following:


	2010			2009
Current assets	$	280		$	232
Non-current assets		554			583
Current liabilities		(12	)		(36	)
Other non-current liabilities		(52	)		(54	)

	$	770		$	725

As of December 31, 2010, we have not provided for deferred taxes on the excess of financial reporting over the tax basis of investments in certain foreign subsidiaries in the amount of $1,865 because we plan to reinvest such earnings indefinitely outside the United States. While the amount of federal income taxes, if such earnings are distributed in the future, cannot be determined, such taxes may be reduced by tax credits and other deductions.

We have the following attributes available for utilization:


ATTRIBUTE	AMOUNT		FIRST YEAR OF EXPIRATION
U.S. net operating losses	$	24		December 31, 2020
State net operating losses		2,486		December 31, 2011
Federal and state capital losses		29		December 31, 2012
U.S. tax credits		22		December 31, 2012
Foreign net operating losses		343		December 31, 2011

As of December 31, 2010, a valuation allowance of approximately $116 had been established to reduce the deferred income tax asset related to certain U.S. state and foreign net operating losses and U.S. capital loss carryforwards. During 2010, the valuation allowance decreased by $34 resulting from the following: a decrease of $34 attributable to U.S. federal capital loss carryforwards that were utilized in 2010, a decrease of $12 attributable to state net operating loss and credit carryforwards, and an increase of $12 attributable to foreign net operating loss carryforwards and foreign investments.

Shareholders’ equity at December 31, 2010 and 2009 reflects excess tax benefits related to stock-based compensation in 2010 and 2009 of approximately $9 and $3, respectively.

Uncertain Tax Positions

We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31, 2010 and 2009 is as follows:


	2010			2009			2008
Unrecognized tax benefits – 1/1	$	171		$	145		$	103
Additions for:
Current year tax positions		48			5			7
Prior year tax positions		17			28			66
Purchase accounting		5			–			2
Reductions for:
Prior year tax positions		(37	)		(6	)		(13	)
Purchase accounting		–			–			(2	)
Settlements		(12	)		(1	)		(15	)
Lapse of statute of limitations		–			–			(3	)

Unrecognized tax benefits – 12/31	$	192		$	171		$	145

As of December 31, 2010, $90 of the unrecognized tax benefits would affect the effective tax rate if realized. Included in the balance at December 31, 2010 are tax positions of $96, which, because of deferred tax accounting would not impact the annual effective rate, but could accelerate the payment of cash to the taxing authority. In addition, tax positions of $6 attributable to discontinued operations would not impact the annual effective tax rate.

We do not believe that the uncertain tax positions will significantly change within twelve months of the reporting date.

In many cases, uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The following table summarizes the earliest open tax years by major jurisdiction:


JURISDICTION	EARLIEST OPEN YEAR
Austria		2004
Canada		2006
Germany		2000
Italy		2005
Netherlands		2006
Sweden		2005
United Kingdom		2008
United States		2007

We classify interest relating to tax matters as a component of interest expense and tax penalties as a component of income tax expense in our Consolidated Income Statement. During 2010, we recognized less than $1 in net interest expense related to tax matters. During 2009, we recognized net interest income of $3 primarily due to an interest settlement claim with the IRS. We had $23 of interest accrued as of December 31, 2010 and 2009.

Earnings Per Share

12 Months Ended

Dec. 31, 2010

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 7

Earnings Per Share

A reconciliation of the data used in the calculation of basic and diluted earnings per share computations for income from continuing operations is as follows:


	2010		2009		2008
Income from continuing operations	$	654	$	641	$	768
Weighted average common shares outstanding		182.3		181.0		180.7
Add: Weighted average restricted stock awards outstanding^(a)		1.6		1.5		1.2

Basic weighted average common shares outstanding		183.9		182.5		181.9
Add: Dilutive impact of stock options		1.4		1.4		2.1

Diluted weighted average common shares outstanding		185.3		183.9		184.0
Basic earnings per share	$	3.55	$	3.51	$	4.22
Diluted earnings per share	$	3.53	$	3.49	$	4.17


(a)	Restricted stock awards containing rights to non-forfeitable dividends which participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.

Shares underlying stock options excluded from the computation of diluted earnings per share because they were anti-dilutive were as follows:


	2010		2009		2008
Anti-dilutive stock options		2.1		1.7		4.1
Average exercise price	$	54.37	$	54.49	$	49.29

Years of expiration		2012-		2012-		2012-
		2020		2016		2015

Receivables, Net

12 Months Ended

Dec. 31, 2010

Receivables, Net [Abstract]

RECEIVABLES, NET

NOTE 8

Receivables, Net


	2010			2009
Trade accounts receivable	$	1,579		$	1,379
Unbilled contract receivable		367			373
Other		47			56

Receivables, gross		1,993			1,808
Allowance for doubtful accounts		(42	)		(48	)
Allowance for cash discounts		(7	)		(6	)

Receivables, net	$	1,944		$	1,754

Unbilled contract receivables represent revenue recognized on long-term contracts that arise based on performance attainment which, though appropriately recognized, cannot be billed as of the balance sheet date. We expect to bill and collect substantially all of the December 31, 2010 unbilled contract receivables during 2011 as scheduled performance milestones are completed or units are delivered.

Our outstanding trade accounts receivable balance from the U.S. Government was $491 and $327 as of December 31, 2010 and 2009, respectively.

The following table displays an aggregate rollforward of the allowance for doubtful accounts, for the years ended December 31, 2010 and 2009.


	2010			2009
Allowance for doubtful accounts – 1/1	$	48		$	33
Additions charged to expense		5			24
Write-offs		(9	)		(8	)
Foreign currency and other		(2	)		(1	)

Allowance for doubtful accounts – 12/31	$	42		$	48

Inventories, Net

12 Months Ended

Dec. 31, 2010

Inventories, Net [Abstract]

INVENTORIES, NET

NOTE 9

Inventories, Net


	2010			2009
Finished goods	$	231		$	176
Work in process		88			57
Raw materials		317			253

		636			486
Inventoried costs related to long-term contracts		296			391
Less — progress payments		(76	)		(75	)

Inventoried costs related to long-term contracts, net		220			316

Inventories, net	$	856		$	802

Other Current and Non Current Assets

12 Months Ended

Dec. 31, 2010

Other Current and Non Current Assets [Abstract]

OTHER CURRENT AND NON-CURRENT ASSETS

NOTE 10

Other Current and Non-Current Assets


	2010		2009
Current deferred income taxes	$	280	$	232
Asbestos-related current assets		105		62
Assets of discontinued operations		–		141
Other		177		144

Other current assets	$	562	$	579

Other employee benefit-related assets	$	106	$	87
Capitalized software costs		118		65
Other		88		100

Other non-current assets	$	312	$	252

ITT recorded sales to unconsolidated affiliates during 2010, 2009 and 2008 totaling $51, $44 and $20, respectively. Additionally, ITT purchased $22 and $15 of products from unconsolidated affiliates during 2010 and 2009, respectively.

Plant, Property and Equipment, Net

12 Months Ended

Dec. 31, 2010

Plant, Property and Equipment, Net [Abstract]

PLANT, PROPERTY AND EQUIPMENT, NET

NOTE 11

Plant, Property and Equipment, Net


	2010			2009
Land and improvements	$	59		$	57
Buildings and improvements		642			609
Machinery and equipment		1,809			1,688
Equipment held for lease or rental		132			72
Furniture, fixtures and office equipment		231			220
Construction work in progress		160			157
Other		29			22

Plant, property and equipment, gross		3,062			2,825
Less — accumulated depreciation		(1,857	)		(1,775	)

Plant, property and equipment, net	$	1,205		$	1,050

Depreciation expense of $190, $173 and $179 was recognized in 2010, 2009 and 2008, respectively.

Goodwill and Other Intangible Assets, Net

12 Months Ended

Dec. 31, 2010

Goodwill and Other Intangible Assets, Net [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

NOTE 12

Goodwill and Other Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2010 and 2009 by business segment are as follows:


							MOTION &
	DEFENSE			FLUID			FLOW			TOTAL
Goodwill — 1/1/2009	$	2,134		$	1,122		$	499		$	3,755
Goodwill acquired		–			17			–			17
Foreign currency		–			26			2			28
Other		(2	)		–			(10	)		(12	)

Goodwill — 12/31/2009	$	2,132		$	1,165		$	491		$	3,788
Goodwill acquired		24			495			–			519
Foreign currency		–			(25	)		(6	)		(31	)
Other		–			1			–			1

Goodwill — 12/31/2010	$	2,156		$	1,636		$	485		$	4,277

Goodwill of $76 was disposed of during 2010 related to the sale of CAS on September 8, 2010. See Note 4, “Discontinued Operations” for further information.

Goodwill acquired during 2010 primarily relates to the Nova and Godwin acquisitions. Goodwill acquired during 2009 primarily relates to the Laing acquisition. Amounts reported as “Other” relate primarily to the write-off of goodwill associated with various immaterial business divestitures occurring during 2009.

Based on the results of its annual impairment tests, we determined that no impairment of goodwill existed as of the measurement date in 2010 or 2009. However, future goodwill impairment tests could result in a charge to earnings. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth fiscal quarter and whenever events and changes in circumstances indicate there may be a potential impairment.

Other Intangible Assets

Information regarding our other intangible assets is as follows:


	GROSS
	CARRYING		ACCUMULATED			NET
	AMOUNT		AMORTIZATION			INTANGIBLES
Customer and distributor relationships	$	855	$	(312	)	$	543
Proprietary technology		109		(35	)		74
Trademarks		35		(10	)		25
Patents and other		32		(18	)		14
Indefinite-lived intangibles		110		—			110

Intangibles – 12/31/2010	$	1,141	$	(375	)	$	766

Customer and distributor relationships	$	625	$	(236	)	$	389
Proprietary technology		84		(29	)		55
Trademarks		35		(8	)		27
Patents and other		27		(15	)		12
Indefinite-lived intangibles		18		–			18

Intangibles – 12/31/2009	$	789	$	(288	)	$	501

Indefinite-lived intangibles consist of brands and trademarks. Based on the results of its annual impairment tests, we determined that no impairment of the indefinite-lived intangibles existed as of the measurement date in 2010 or 2009. However, future impairment tests could result in a charge to earnings. We will continue to evaluate the indefinite-lived intangible assets on an annual basis as of the beginning of our fourth fiscal quarter and whenever events and changes in circumstances indicate there may be an indicator of potential impairment.

Customer and distributor relationships, proprietary technology, trademarks, and patents and other are amortized over weighted average lives of approximately nine years, 17 years, 15 years and 11 years, respectively.

Amortization expense related to intangible assets for 2010, 2009 and 2008 was $90, $101 and $96, respectively. Estimated amortization expense for each of the five succeeding years is as follows:


2011	2012		2013		2014		2015
$87	$	77	$	60	$	55	$	52

Accrued Liabilities and Other Non-Current Liabilities

12 Months Ended

Dec. 31, 2010

Accrued Liabilities and Other Non-Current Liabilities [Abstract]

ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES

NOTE 13

Accrued Liabilities and Other Non-Current Liabilities


	2010		2009
Compensation and other employee-benefits	$	604	$	578
Asbestos-related liability		117		66
Customer-related liabilities		91		55
Accrued warranty costs		72		67
Accrued income taxes		63		103
Environmental and other legal matters		33		44
Accrued restructuring costs		32		53
Deferred income tax liability		12		36
Liabilities of discontinued operations		–		44
Other accrued liabilities		238		230

Accrued liabilities	$	1,262	$	1,276

Deferred income taxes and other tax-related accruals	$	179	$	174
Environmental		128		128
Compensation and other employee-related benefits		117		123
Product liability, guarantees and other legal matters		52		63
Other		66		53

Other non-current liabilities	$	542	$	541

Leases and Rentals

12 Months Ended

Dec. 31, 2010

Leases and Rentals [Abstract]

LEASES AND RENTALS

NOTE 14

Leases and Rentals

ITT leases certain offices, manufacturing buildings, land, machinery, automobiles, aircraft, computers and other equipment. Such leases expire at various dates through 2023 and may include renewal and payment escalation clauses. ITT often pays maintenance, insurance and tax expense related to leased assets. Rental expenses under operating leases were $132, $139 and $131 for 2010, 2009 and 2008, respectively. Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2010 are shown below.


2011	$	143
2012		115
2013		90
2014		70
2015		53
2016 and thereafter		183

Total minimum lease payments	$	654

Debt

12 Months Ended

Dec. 31, 2010

Debt [Abstract]

DEBT

NOTE 15

Debt


	2010			2009
Commercial paper	$	–		$	55
Short-term loans		1			10
Current maturities of long-term debt and other		10			10

Short-term debt and current maturities of long-term debt		11			75

Non-current maturities of long-term debt		1,314			1,392
Non-current capital leases		3			4
Deferred gain on interest rate swaps		45			50
Unamortized discounts and debt issuance costs		(8	)		(15	)

Long-term debt		1,354			1,431

Total debt	$	1,365		$	1,506

Principal payments required per year on our outstanding long-term notes and debentures for the next five years and thereafter are $11, $11, $13, $538, $1 and $754, respectively. The book value of assets pledged as collateral amounted to $63 as of December 31, 2010.

Commercial Paper

The weighted average interest rate for outstanding commercial paper was 0.21% at December 31, 2009. Our commercial paper program is supported by a revolving credit agreement with the intended purposes of providing additional liquidity, if needed. In August 2010, we replaced a $1.75 billion revolving credit agreement with a new three-year $1.5 billion revolving credit agreement (August 2010 Credit Facility). The interest rate for borrowings under these agreements is generally based on the London Interbank Offered Rate (LIBOR), plus a spread, which reflects ITT’s debt rating. The commitment fee on the August 2010 Credit Facility is 0.225% of the total commitment. The provisions of this agreement require that we maintain an adjusted EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) to interest expense ratio greater than 3.5:1. At December 31, 2010 and 2009, we were in compliance with our debt covenants.

Long-Term Debt

The following table summarizes the carrying and fair value of our long-term outstanding notes and debentures by maturity date for both December 31, 2010 and 2009. The fair value of our outstanding commercial paper and short-term loans approximates carrying value.


				2010				2009

	Interest			Carrying		Fair		Carrying		Fair
	Rate			Value		Value		Value		Value
MATURITY DATE:
May 2011		6.50	%	$	–	$	–	$	32	$	32
July 2011		7.50	%		–		–		37		40
May 2014		4.90	%		500		538		500		515
May 2019		6.125	%		500		553		500		521
November 2025		7.40	%		250		311		250		285
August 2048		(a	)		1		1		1		1
December 2010 – 2014		4.70	%		66		69		74		76
Various 2010 – 2022		(b	)		11		11		12		12

				$	1,328	$	1,483	$	1,406	$	1,482


(a)	Variable rate debt with an interest rate of 0.19% as of December 31, 2010 and 0.16% as of December 31, 2009.


(b)	Includes individually immaterial notes, bonds and capital leases. The weighted average interest rate was 4.86% and 5.24% at December 31, 2010 and 2009, respectively.

May 2014 and May 2019 Senior Notes

In May 2009, the Company issued $500 of 4.9% Senior Notes due May 1, 2014 and $500 of 6.125% Senior Notes due May 1, 2019 (collectively referred to as the Notes). The issuance resulted in gross proceeds of $998, offset by $6 in debt issuance costs. We may redeem the Notes in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount of such Notes and (ii) the sum of the present value of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis at the Treasury Rate plus 50 basis points, plus in each case accrued and unpaid interest to the date of redemption. The Notes are senior unsecured obligations and rank equally with all existing and future senior unsecured indebtedness.

November 2025 Senior Notes

In November 1995, the Company issued $250 of 7.4% Senior Notes due November 15, 2025 (1995 Senior Notes). We may redeem the 1995 Senior Notes in whole or in part at any time at a redemption price equal to the greater of (i) 100% of the principal amount of such 1995 Senior Notes and (ii) the sum of the present value of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semiannual basis at the Treasury Rate plus 20 basis points, plus in each case accrued interest to the date of redemption. The 1995 Senior Notes are senior unsecured obligations and rank equally with all existing and future senior unsecured indebtedness.

Other

As of December 31, 2010, ITT had a $66 obligation associated with a ten-year agreement involving the sale and the subsequent lease back of certain properties. Under the terms of the agreement, we are required to make annual payments of principal and interest. At the end of the agreement in 2014, ITT has the option to repurchase the applicable properties for a nominal fee. This transaction is reflected as debt.

Long-term debt includes the unamortized portion of a deferred gain on a terminated interest rate swap that will be amortized into earnings through 2025.

Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2010

Postretirement Benefit Plans [Abstract]

POSTRETIREMENT BENEFIT PLANS

NOTE 16

Postretirement Benefit Plans

Defined Contribution Plans

ITT sponsors numerous defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. Several of the plans require us to match a percentage of the employee contributions up to certain limits. Matching contributions charged to income amounted to $64, $44 and $47 for 2010, 2009 and 2008, respectively.

The ITT Stock Fund, an investment option under the ITT Salaried Investment and Savings Plan, is considered an Employee Stock Ownership Plan and, as a result, participants in the ITT Stock Fund may receive dividends in cash or may reinvest such dividends into the ITT Stock Fund. The ITT Stock Fund held approximately 8.3 shares of ITT common stock at December 31, 2010.

Defined Benefit Plans

ITT sponsors numerous defined benefit pension plans. As of December 31, 2010, of our total projected benefit obligation, the U.S. Salaried Retirement Plan (U.S. SRP) represented 76%, other U.S. plans represented 14% and international pension plans represented 10%. We fund the U.S. SRP as required by statutory regulations or through discretionary contributions. In addition, we fund certain of our international pension plans in countries where funding is allowable and tax-effective.

ITT also provides health care and life insurance benefits for certain eligible U.S. employees upon retirement. We have funded a portion of the health care and life insurance obligations, where such funding can be accomplished on a tax-effective basis.

Balance Sheet Information

Amounts recognized in the Consolidated Balance Sheets for pension and other employee-related benefit plans (collectively, postretirement benefit plans) reflect the funded status of the postretirement benefit plans. The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of such balances within our Consolidated Balance Sheet as of December 31, 2010 and 2009.


	2010									2009

				Other									Other
	Pension			Benefits			Total			Pension			Benefits			Total
Fair value of plan assets	$	4,622		$	275		$	4,897		$	4,308		$	247		$	4,555
Projected benefit obligation		(5,960	)		(722	)		(6,682	)		(5,700	)		(701	)		(6,401	)

Funded status	$	(1,338	)	$	(447	)	$	(1,785	)	$	(1,392	)	$	(454	)	$	(1,846	)

Amounts reported within:
Other non-current assets	$	20		$	–		$	20		$	16		$	–		$	16
Accrued liabilities		(24	)		(48	)		(72	)		(25	)		(49	)		(74	)
Non-current liabilities		(1,334	)		(399	)		(1,733	)		(1,383	)		(405	)		(1,788	)

A portion of our projected benefit obligation includes amounts that have not yet been recognized as expense in our results of operations. Such amounts are recorded within accumulated other comprehensive loss until they are amortized as a component of net periodic postretirement cost. The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2010 and 2009.


	2010							2009

			Other							Other
	Pension		Benefits			Total		Pension		Benefits			Total
Net actuarial loss	$	1,986	$	162		$	2,148	$	2,034	$	162		$	2,196
Prior service cost (benefit)		29		(6	)		23		29		(8	)		21

Total		2,015		156			2,171	$	2,063	$	154		$	2,217

The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans for the years ended 2010 and 2009.


	2010									2009

	U.S.			Int’l			Total			U.S.			Int’l			Total
Change in benefit obligation
Benefit obligation – 1/1	$	5,173		$	527		$	5,700		$	4,886		$	437		$	5,323
Service cost		108			15			123			88			11			99
Interest cost		299			29			328			302			27			329
Amendments / other		4			–			4			2			1			3
Actuarial loss		133			31			164			247			40			287
Benefits paid		(353	)		(27	)		(380	)		(352	)		(31	)		(383	)
Liabilities assumed through acquisition		–			29			29			–			–			–
Foreign currency translation		–			(8	)		(8	)		–			42			42

Benefit obligation – 12/31	$	5,364		$	596		$	5,960		$	5,173		$	527		$	5,700

The following table provides a rollforward of the projected benefit obligations for our other employee-related benefit plans for the years ended 2010 and 2009.


	2010			2009
Change in benefit obligation
Benefit obligation – 1/1	$	701		$	703
Service cost		6			7
Interest cost		40			42
Amendments / other		–			(12	)
Actuarial loss		22			7
Benefits paid		(47	)		(46	)

Benefit obligation – 12/31	$	722		$	701

The following table provides a rollforward of the pension plan assets and the ending funded status for our U.S. and international pension plans for the years ended 2010 and 2009.


	2010									2009

	U.S.			Int’l			Total			U.S.			Int’l			Total
Change in plan assets
Plan assets – 1/1	$	4,011		$	297		$	4,308		$	3,392		$	219		$	3,611
Actual return on plan assets		525			25			550			772			52			824
Employer contributions		58			18			76			150			11			161
Employee contributions		–			1			1			–			2			2
Benefits paid		(322	)		(5	)		(327	)		(303	)		(16	)		(319	)
Assets acquired through acquisition		–			21			21			–			–			–
Foreign currency translation		–			(7	)		(7	)		–			29			29

Plan assets – 12/31	$	4,272		$	350		$	4,622		$	4,011		$	297		$	4,308

Funded status at end of year	$	(1,092	)	$	(246	)	$	(1,338	)	$	(1,162	)	$	(230	)	$	(1,392	)

The following table provides a rollforward of the other employee-related benefit plan assets and the ending funded status for the years ended 2010 and 2009.


	2010			2009
Change in plan assets
Plan assets – 1/1	$	247		$	205
Actual return on plan assets		33			47
Benefits paid		(5	)		(5	)

Plan assets – 12/31	$	275		$	247

Funded status at end of year	$	(447	)	$	(454	)

The accumulated benefit obligation for all defined benefit pension plans was $5,644 and $5,378 at December 31, 2010 and 2009, respectively. The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets.


	2010		2009
Projected benefit obligation	$	5,683	$	5,465
Accumulated benefit obligation		5,381		5,171
Fair value of plan assets		4,325		4,058

Income Statement Information

The following table provides the components of net periodic benefit cost and other amounts recognized in other comprehensive income for the years 2010, 2009 and 2008, as they pertain to our defined benefit pension plans.


	2010									2009									2008
	U.S.			Int’l			Total			U.S.			Int’l			Total			U.S.			Int’l			Total
Net periodic benefit cost
Service cost	$	108		$	15		$	123		$	88		$	11		$	99		$	85		$	14		$	99
Interest cost		299			29			328			302			27			329			294			31			325
Expected return on plan assets		(414	)		(24	)		(438	)		(412	)		(21	)		(433	)		(421	)		(24	)		(445	)
Amortization of net actuarial loss		72			3			75			46			2			48			14			3			17
Amortization of prior service cost		4			–			4			4			–			4			4			–			4

Net periodic benefit cost (income)		69			23			92			28			19			47			(24	)		24			–

Effect of curtailment		1			–			1			3			–			3			–			–			–

Total net periodic benefit cost (income)		70			23			93			31			19			50			(24	)		24			–

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)		8			19			27			(151	)		13			(138	)		2,018			41			2,059
Prior service cost		4			–			4			6			1			7			–			–			–
Amortization of net actuarial loss		(72	)		(3	)		(75	)		(46	)		(2	)		(48	)		(14	)		(3	)		(17	)
Amortization of prior service cost		(4	)		–			(4	)		(4	)		–			(4	)		(4	)		–			(4	)

Total change recognized in other comprehensive income		(64	)		16			(48	)		(195	)		12			(183	)		2,000			38			2,038

Total impact from net periodic benefit cost and changes in other comprehensive income	$	6		$	39		$	45		$	(164	)	$	31		$	(133	)	$	1,976		$	62		$	2,038

The following table provides the components of net periodic benefit cost and other amounts recognized in other comprehensive loss for the years 2010, 2009 and 2008, as they pertain to other employee-related benefit plans.


	2010			2009			2008
Net periodic benefit cost
Service cost	$	6		$	7		$	8
Interest cost		40			42			42
Expected return on plan assets		(22	)		(18	)		(28	)
Amortization of net actuarial loss		11			15			4
Amortization of prior service (credit) cost		(2	)		4			3

Net periodic benefit cost		33			50			29

Effect of curtailment		—			(1	)		—

Total net periodic benefit cost		33			49			29

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)		11			(23	)		90
Prior service credit		—			(10	)		(3	)
Amortization of net actuarial loss		(11	)		(15	)		(4	)
Amortization of prior service credit (cost)		2			(4	)		(3	)

Total changes recognized in other comprehensive income		2			(52	)		80

Total impact from net periodic benefit cost and changes in other comprehensive income	$	35		$	(3	)	$	109

The following table provides the estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2011.


			Other
	Pension		Benefits			Total
Net actuarial loss	$	118	$	12		$	130
Prior service cost (credit)		4		(2	)		2

Total		122		10			132

Postretirement Plan Assumptions

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our defined benefit pension plans.


	2010						2009
	U.S.			Int’l			U.S.			Int’l
Obligation Assumptions:
Discount rate		5.73	%		5.47	%		6.00	%		5.79	%
Rate of future compensation increase		4.00	%		3.26	%		4.00	%		3.87	%
Cost Assumptions:
Discount rate		6.00	%		5.79	%		6.25	%		6.14	%
Expected return on plan assets		9.00	%		7.33	%		9.00	%		7.29	%
Rate of future compensation increase		4.00	%		3.84	%		4.00	%		3.64	%

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to other employee-related benefit plans.


	2010			2009
Obligation Assumptions:
Discount rate		5.50	%		6.00	%
Rate of future compensation increase		4.00	%		4.00	%
Cost Assumptions:
Discount rate		6.00	%		6.25	%
Expected return on plan assets		9.00	%		9.00	%
Rate of future compensation increase		4.00	%		4.00	%

Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist. Assumptions are reviewed annually and adjusted as necessary.

The expected long-term rate of return on assets reflects the expected returns for each major asset class in which the plans invest, the weight of each asset class in the target mix, the correlations among asset classes and their expected volatilities. Our expected return on plan assets is estimated by evaluating both historical returns and estimates of future returns. Specifically, we analyze the plan’s actual historical annual return on assets, net of fees, over the past 15, 20 and 25 years; estimate future returns based on independent estimates of asset class returns; and evaluate historical broad market returns over long-term timeframes based on our asset allocation range. Based on this approach, our estimate of the long-term annual rate of return on assets for domestic pension plans is 9.0%. For reference, our actual geometric average annual return on plan assets for domestic pension plans as of December 31, 2010 was 8.8%, 10.1% and 10.3%, for the past 15, 20, and 25 year periods, respectively.

The table below provides the actual rate of return generated on plan assets during each of the years presented, as they compare to the expected long-term return utilized in calculating the net periodic benefit costs, as they pertain to our U.S. pension plans.


	2010			2009			2008
Expected rate of return on plan assets		9.0	%		9.0	%		9.0	%
Actual rate of return on plan assets		14.1	%		24.1	%		(31.2	)%

The assumed rate of future increases in the per capita cost of health care (the health care trend rate) is 7.8% for 2011, decreasing ratably to 5.0% in 2019. Increasing the health care trend rates by one percent per year would have the effect of increasing the benefit obligation by $36 and the aggregate annual service and interest cost components by $3. A decrease of one percent in the health care trend rate would reduce the benefit obligation by $30 and the aggregate annual service and interest cost components by $2. To the extent that actual experience differs from these assumptions, the effect will be amortized over the average future service of the covered active employees.

The determination of the assumptions shown in the table above and the discussion of health care trend rates are based on the provisions of the applicable accounting pronouncements, the review of various market data and discussion with our actuaries. Changes in these assumptions could materially affect the financial position and results of operations.

Investment Policy

The investment strategy for managing worldwide postretirement benefit plan assets is to seek an optimal rate of return relative to an appropriate level of risk for each plan. Investment strategies vary by plan, depending on the specific characteristics of the plan, such as plan size and design, funded status, liability profile and legal requirements.

Substantially all of the postretirement benefit plan assets are attributable to the Company’s U.S. SRP, which are managed on a commingled basis in a master investment trust. With respect to the master investment trust, the Company allows itself broad discretion to invest tactically to respond to changing market conditions, while staying reasonably within the asset allocation ranges prescribed by its investment guidelines. In making these asset allocation decisions, the Company takes into account recent and expected returns and volatility of returns for each asset class, the expected correlation of returns among the different investments, as well as anticipated funding and cash flows. To enhance returns and mitigate risk, the Company diversifies its investments by strategy, asset class, geography and sector. The Company engages a large number of managers to gain broad exposure to the markets, while generating excess-of-market returns and mitigating manager-concentration risk.

The following table provides the actual asset allocations of these U.S. plans, as of December 31, 2010 and 2009, and the related asset allocation ranges by asset category.


							Allocation
	2010			2009			Range
Domestic equities		25	%		25	%		25%-75%
Alternative investments		47			47			20%-45%
International equities		18			17			10%-45%
Fixed income		2			4			0%-60%
Cash and other		8			7			0%-30%

The strategies and allocations of plan assets outside of the U.S. are managed locally and may differ significantly from those in the U.S. In general and as of December 31, 2010, non-U.S. plans are managed closely to their strategic allocations.

Fair Value of Plan Assets

In measuring plan assets at fair value, a fair value hierarchy is applied which categorizes and prioritizes the inputs used to estimate fair value into three levels. The fair value hierarchy is based on maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. Classification within the fair value hierarchy is based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows:


	n	Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

	n	Level 2 inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices (in non-active markets or in active markets for similar assets or liabilities), inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	n	Level 3 inputs are unobservable inputs for the assets or liabilities.

In certain instances, fair value is estimated using quoted market prices obtained from external pricing services. In obtaining such data from the pricing service, the Company has evaluated the methodologies used to develop the estimate of fair value in order to assess whether such valuations are representative of fair value, including net asset value (NAV). Additionally, in certain circumstances, the Company may adjust NAV reported by an asset manager when sufficient evidence indicates NAV is not representative of fair value.

The following is a description of the valuation methodologies and inputs used to measure fair value for major categories of investments.


	n	Equity securities – Equities (including common and preferred shares, domestic listed and foreign listed, closed end mutual funds and exchange traded funds) are generally valued at the closing price reported on the major market on which the individual securities are traded at the measurement date. As all equity securities held by the Company are publicly traded in active markets, the securities are classified within Level 1 of the fair value hierarchy.

	n	Open ended mutual funds, collective trusts and commingled funds – Open ended mutual funds, collective trusts and commingled funds are measured at NAV. These funds are generally classified within Level 2 of the fair value hierarchy.

	n	Private equity – The valuation of limited partnership interests in private equity funds may require significant management judgment. The NAV reported by the asset manager is adjusted when management determines that NAV is not representative of fair value. In making such an assessment, a variety of factors are reviewed by management, including, but not limited to, the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. These funds are generally classified within Level 3 of the fair value hierarchy.

	n	Absolute return (hedge funds) – The valuation of limited partnership interests in hedge funds may require significant management judgment. The NAV reported by the asset manager is adjusted when management determines that NAV is not representative of fair value. In making such an assessment, a variety of factors are reviewed by management, including, but not limited to, the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. Depending on how quickly ITT can redeem these investments and the extent of any adjustments to NAV, hedge funds are classified within either Level 2 (redeemable within 90 days) or Level 3 (redeemable beyond 90 days) of the fair value hierarchy.

	n	Fixed income – U.S. government securities are generally valued using quoted prices of securities with similar characteristics. Corporate bonds and notes are generally valued by using pricing models (e.g. discounted cash flows), quoted prices of securities with similar characteristics or broker quotes. Fixed income securities are generally classified in Level 2 of the fair value hierarchy.

The following table provides the fair value of plan assets held by our postretirement benefit plans, at December 31, 2010 and 2009, by asset class.


	2010																2009
	Pension								Other Benefits								Pension									Other Benefits

	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2			Level 3		Total		Level 1		Level 2			Level 3
Asset Category
Equities Securities:
Domestic	$	1,026	$	775	$	154	$	97	$	81	$	68	$	8	$	5	$	957	$	737	$	142		$	78	$	75	$	63	$	8		$	4
Developed markets		495		364		19		112		19		13		—		6		455		339		23			93		15		10		—			5
Emerging markets		447		194		217		36		24		10		12		2		397		158		211			28		20		8		11			1
ITT Stock		52		52		—		—		3		3		—		—		49		49		—			—		2		2		—			—

Subtotal – equity securities		2,020		1,385		390		245		127		94		20		13		1,858		1,283		376			199		112		83		19			10
Private equity:
Buyout funds^(a)		989		—		154		835		53		—		8		45		884		—		1			883		44		—		—			44
Distressed funds^(b)		230		—		—		230		12		—		—		12		181		—		—			181		9		—		—			9
Venture/growth equity funds^(c)		45		—		—		45		2		—		—		2		33		—		—			33		2		—		—			2
Mezzanine funds^(d)		33		—		—		33		2		—		—		2		28		—		—			28		1		—		—			1

Subtotal – private equity		1,297		—		154		1,143		69		—		8		61		1,126		—		1			1,125		56		—		—			56
Absolute return (hedge funds):
Fund of funds^(e)		290		—		58		232		15		—		2		13		319		—		57			262		15		—		2			13
Fixed income/multi-strat^(f)		354		—		162		192		19		—		9		10		319		—		146			173		16		—		7			9
Equity long/short^(g)		128		—		80		48		7		—		4		3		120		—		80			40		6		—		4			2
Macro^(h)		12		—		12		—		1		—		1		—		38		—		38			—		2		—		2			—

Subtotal – absolute return		784		—		312		472		42		—		16		26		796		—		321			475		39		—		15			24
Fixed Income:
Fixed income		184		8		176		—		18		—		10		8		231		13		218			—		23		1		14			8
Other:
Commodities		233		—		200		33		13		—		11		2		179		—		153			26		9		—		8			1
Cash and other, net		104		4		74		26		6		1		4		1		118		109		(6	)		15		8		7		(1	)		2

Subtotal – other		337		4		274		59		19		1		15		3		297		109		147			41		17		7		7			3

Total	$	4,622	$	1,397	$	1,306	$	1,919	$	275	$	95	$	69	$	111	$	4,308	$	1,405	$	1,063		$	1,840	$	247	$	91	$	55		$	101


(a)		Private equity buyout funds, included within postretirement benefit plan assets, are partnership investment vehicles that take a controlling interest primarily in private companies with the intent of developing them for future sale at a higher price to a strategic or financial buyer or through an initial public offering. These investments include $499 where ownership of the partnership interest is directly held and $442 invested through funds of private equity funds.


(b)		Private equity distressed funds are partnership investment vehicles that purchase debt or preferred equity instruments of companies that are distressed, near bankrupt or bankrupt.

(c)		Venture and growth equity private equity funds are partnership investment vehicles that provide seed or growth capital to start-ups and early stage companies, usually in high-growth industries, such as information and clean technology, health care and biotechnology.

(d)		Mezzanine private equity funds provide mezzanine loans to companies that need capital but do not want to sell or dilute their equity interests. Mezzanine loans are subordinated debt or preferred equity securities that represent a claim on the borrower’s assets which is senior to the common equity but subordinate to senior secured and unsecured debt.

(e)		Absolute return fund of funds include partnership investment vehicles that invest in a diversified portfolio of other hedge funds that employ a range of investment strategies.

(f)		Fixed income/multi-strat absolute return funds are partnership investment vehicles that invest in multiple investment strategies, such as macro, equity long/short, convertible arbitrage and event driven, often with the intent to diversify risk and reduce volatility.

(g)		Equity long/short absolute return funds include partnership investment vehicles that can purchase both long and short positions of publicly traded equities. Management of the fund has the ability to shift investments from value to growth strategies, from small to large capitalization companies, and from a net long position to a net short position.

(h)		Macro absolute return funds include partnership investment vehicles that make investments predicated on the managers views, either fundamentally or quantitatively derived, on different global factors, such as asset allocation (e.g., stocks vs. bonds) interest rates, currency, sovereign risk and commodities over a span of different time frames.

The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our pension plans using significant unobservable inputs (Level 3).


	Equity			Private			Absolute			Fixed
	Securities			Equity			Returns			Income			Other			Total
Level 3 balance – 12/31/08	$	274		$	988		$	783		$	40		$	126		$	2,211
Realized gains (losses), net		(1	)		26			3			–			1			29
Unrealized gains (losses), net		70			20			84			–			2			176
Purchases/(sales), net		5			89			(186	)		–			8			(84	)
Transfers in (out), net		(149	)		(1	)		(209	)		(40	)		(96	)		(495	)
Foreign currency translation		–			3			–			–			–			3

Level 3 balance – 12/31/09		199			1,125			475			–			41			1,840
Realized gains (losses), net		–			85			8			–			–			93
Unrealized gains (losses), net		41			46			30			–			2			119
Purchases/(sales), net		4			13			(41	)		–			17			(7	)
Transfers in (out), net		–			(124	)		–			–			–			(124	)
Foreign currency translation		1			(2	)		–			–			(1	)		(2	)

Level 3 balance – 12/31/10	$	245		$	1,143		$	472		$	–		$	59		$	1,919

The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our other employee-related benefit plans using significant unobservable inputs (Level 3):


	Equity			Private			Absolute			Fixed
	Securities			Equity			Returns			Income			Other			Total
Level 3 balance – 12/31/08	$	14		$	50		$	40		$	10		$	6		$	120
Realized gains (losses), net		–			1			–			1			–			2
Unrealized gains (losses), net		4			1			4			–			–			9
Purchases/(sales), net		–			4			(9	)		(1	)		1			(5	)
Transfers in (out), net		(8	)		–			(11	)		(2	)		(4	)		(25	)

Level 3 balance – 12/31/09		10			56			24			8			3			101
Realized gains (losses), net		–			5			–			–			–			5
Unrealized gains (losses), net		3			6			4			–			–			13
Purchases/(sales), net		–			1			(2	)		–			–			(1	)
Transfers in (out), net		–			(7	)		–			–			–			(7	)

Level 3 balance – 12/31/10	$	13		$	61		$	26		$	8		$	3		$	111

Contributions

Funding requirements under Internal Revenue Service rules are a major consideration in making contributions to our post-retirement plans. With respect to qualified pension plans, we intend to contribute annually not less than the minimum required by applicable law and regulations. We made contributions of $76 and $161 to pension plans during 2010 and 2009, respectively, including voluntary contributions to the U.S. SRP of $50 and $100 during the fourth quarter of 2010 and 2009, respectively. We currently anticipate making contributions to our pension plans in the range of $90 to $110 during 2011, of which $20 is expected to be made in the first quarter.

Estimated Future Benefit Payments

The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans.


			Other
	Pension		Benefits
2011	$	368	$	53
2012		375		54
2013		383		55
2014		391		56
2015		402		56
2016 – 2020		2,162		289

Long-Term Incentive Employee Compensation

12 Months Ended

Dec. 31, 2010

Long-Term Incentive Employee Compensation [Abstract]

LONG-TERM INCENTIVE EMPLOYEE COMPENSATION

NOTE 17

Long-Term Incentive Employee Compensation

Our long-term incentive awards program comprises three components: non-qualified stock options (NQOs), restricted stock (RS) and a target cash award (TSR). We account for NQOs and RS as equity-based compensation awards. TSR awards are cash settled and accounted for as liability-based compensation.

The ITT Amended and Restated 2003 Equity Incentive Plan (2003 Equity Incentive Plan) was approved by shareholders and established in May of 2003 to provide for the awarding of options on common shares and restricted common shares to employees and non-employee directors. The number of shares initially available for awards under this plan was 12.2. As of December 31, 2010, 2.9 shares were available for future grants. ITT makes available for the exercise of stock options or vesting of restricted shares by purchasing shares in the open market or by issuing shares from treasury stock.

The 2003 Equity Incentive Plan replaced the 2002 ITT Stock Option Plan for Non-Employee Directors, the ITT 1996 Restricted Stock Plan for Non-Employee Directors and the 1994 ITT Incentive Stock Plan on a prospective basis. All outstanding awards granted under these prior plans are vested and exercisable. No future grants will be made under these prior plans.

Long-term incentive employee compensation costs are primarily recorded within SG&A expenses, and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows:


	2010			2009		2008
Compensation costs on equity-based awards	$	28		$	29	$	31
Compensation costs on liability-based awards		(5	)		5		24

Total compensation costs, pre-tax	$	23		$	34	$	55

Future tax benefit	$	7		$	10	$	18

At December 31, 2010, there was $43 of total unrecognized compensation cost related to non-vested awards granted under the stock option and restricted stock plans. This cost is expected to be recognized ratably over a weighted-average period of 1.8 years.

Non-Qualified Stock Options

Options generally vest over or at the conclusion of a three-year period and are exercisable in seven or ten-year periods, except in certain instances of death, retirement or disability. Options granted between 2004 and 2009 were awarded with a contractual term of seven years. Options granted prior to 2004 and during 2010 were awarded with a contractual term of ten years. The exercise price per share is the fair market value of the underlying common stock on the date each option is granted.

A summary of the status of our NQOs as of December 31, 2010, 2009 and 2008 and changes during the years then ended is presented below.


	2010					2009					2008
				WEIGHTED-					WEIGHTED-					WEIGHTED-
				AVERAGE					AVERAGE					AVERAGE
				EXERCISE					EXERCISE					EXERCISE
STOCK OPTIONS	SHARES			PRICE		SHARES			PRICE		SHARES			PRICE
Outstanding – 1/1		8.1		$	40.29		8.1		$	39.83		8.7		$	38.13
Granted		0.7			53.30		0.9			33.59		0.6			53.57
Exercised		(1.1	)		31.45		(0.8	)		26.32		(1.0	)		32.82
Canceled or expired		(0.3	)		48.78		(0.1	)		45.94		(0.2	)		44.31

Outstanding – 12/31		7.4		$	42.54		8.1		$	40.29		8.1		$	39.83

Options exercisable – 12/31		5.9		$	41.86		6.4		$	39.49		6.8		$	37.02

The intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during 2010, 2009 and 2008 was $22, $18 and $30, respectively.

The amount of cash received from the exercise of stock options was $35 and $20 for 2010 and 2009, respectively. The tax benefit realized during 2010 and 2009 associated with stock option exercises and lapses of restricted stock was $14 and $11, respectively. We classify, as a financing activity, the cash flows attributable to excess tax benefits arising from stock option exercises and restricted stock lapses. Cash provided by operating activities decreased and cash provided by financing activities increased by $6, $3 and $7 for 2010, 2009 and 2008, respectively. The following table summarizes information about ITT’s stock options at December 31, 2010:


		OPTIONS OUTSTANDING								OPTIONS EXERCISABLE
				WEIGHTED-									WEIGHTED-
				AVERAGE		WEIGHTED-							AVERAGE		WEIGHTED-
				REMAINING		AVERAGE		AGGREGATE					REMAINING		AVERAGE		AGGREGATE
RANGE OF EXERCISE				CONTRACTUAL		EXERCISE		INTRINSIC					CONTRACTUAL		EXERCISE		INTRINSIC
PRICES		NUMBER		LIFE (IN YEARS)		PRICE		VALUE		NUMBER			LIFE (IN YEARS)		PRICE		VALUE
$	10-$20		0.1		–	$	18.44	$	3		0.1			–	$	18.44	$	3
$	20-$30		0.4		1.0		25.37		12		0.4			1.0		25.37		11
$	30-$40		2.6		3.4		34.43		45		2.0			2.9		34.79		34
$	40-$50		2.2		1.6		45.05		16		2.2			1.5		45.03		16
$	50-$60		2.0		5.0		54.18		–		1.2			2.9		54.77		–
$	60-$70		0.1		4.0		66.83		–		–	^(a)		3.9		67.16		–

			7.4		3.1		42.54	$	76		5.9			2.2		41.86	$	64


(a)		Amount rounds to less than 0.1

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on ITT’s closing stock price of $52.11 as of December 31, 2010, which would have been received by the option holders had all option holders exercised their options as of that date. The number of options “out-of-the-money” as of December 31, 2010, included as exercisable in the preceding table was 2.1.

As of December 31, 2010, the total number of stock options expected to vest (including those that have already vested) was 7.3. These stock options have a weighted-average exercise price of $42.46, an aggregate intrinsic value of $75 and a weighted-average remaining contractual life of 3.0 years.

The fair value of each option grant was estimated on the date of grant using the binomial lattice pricing model which incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following are weighted-average assumptions for 2010, 2009 and 2008:


	2010			2009			2008
Dividend yield		1.88	%		2.54	%		1.31	%
Expected volatility		27.06	%		38.77	%		28.69	%
Expected life (in years)		7.0			4.7			4.7
Risk-free rates		3.06	%		2.20	%		2.31	%
Weighted-average grant date fair value	$	14.50		$	9.60		$	13.46

Expected volatilities are based on ITT’s stock price history, including implied volatilities from traded options on our stock. ITT uses historical data to estimate option exercise and employee termination behavior within the valuation model. Employee groups and option characteristics are considered separately for valuation purposes. The expected life represents an estimate of the period of time options are expected to remain outstanding. The expected life provided above represents the weighted average of expected behavior for certain groups of employees who have historically exhibited different behavior. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of option grant.

Restricted Stock

Restricted stock typically vests three years from the date of grant. Holders of restricted stock have the right to receive dividends and vote on the shares. If an employee leaves the Company prior to vesting, whether through resignation or termination for cause, the restricted stock is forfeited. If an employee retires or is terminated other than for cause, a pro rata portion of the restricted stock may vest. Included within restricted stock outstanding are 0.2 vested shares that have been deferred until termination of service per individual award agreements. As of December 31, 2010, the total number of restricted stock expected to vest was 1.4.

The table below provides a rollforward of outstanding restricted stock for each of the previous three years ended.


	2010					2009					2008
				WEIGHTED					WEIGHTED					WEIGHTED
				AVERAGE					AVERAGE					AVERAGE
				GRANT					GRANT					GRANT
				DATE					DATE					DATE
RESTRICTED STOCK	SHARES			FAIR VALUE		SHARES			FAIR VALUE		SHARES			FAIR VALUE
Outstanding – 1/1		1.7		$	44.36		1.5		$	51.96		1.3		$	50.93
Granted		0.5			53.25		0.7			33.88		0.4			53.57
Lapsed		(0.4	)		54.44		(0.4	)		52.83		(0.1	)		45.76
Canceled		(0.1	)		44.75		(0.1	)		54.94		(0.1	)		55.89

Outstanding – 12/31		1.7		$	44.81		1.7		$	44.36		1.5		$	51.96

The outstanding restricted shares include 0.1 shares issued to non-employee directors in payment for part of their annual retainer. This cost is expected to be recognized ratably over a weighted average period of 0.6 years.

Total Shareholder Return Awards

The TSR award plan is a performance-based cash award incentive program provided to key employees of ITT. TSR awards are accounted for under stock-compensation principles of accounting as liability-based awards. The fair value of outstanding awards is determined at the conclusion of the three-year performance period by measuring ITT’s total shareholder return percentage against the total shareholder return performance of other stocks generally comprising the S&P Industrials Index. The number of companies included in the applicable benchmark group range from 312 to 365 as of December 31, 2010. We reassess the fair value of our TSR awards on a quarterly basis at the end of each reporting period using actual total shareholder return data over the elapsed performance period as well as a Monte Carlo simulation. The fair value of the outstanding awards at December 31, 2010 and 2009 was $2 and $27, respectively.

Payment, if any, is based on the TSR performance comparison measured against targets established at the time of the award. The total cash paid to settle the TSR liability was $18, $21 and $19, during the years ended 2010, 2009 and 2008, respectively. At December 31, 2010, total unrecognized compensation costs projected to be incurred, based on current performance measurements, over the remaining vesting period is $4. This cost is expected to be recognized ratably over a weighted-average period of 2.0 years.

Capital Stock	12 Months Ended
Capital Stock	Dec. 31, 2010
Capital Stock [Abstract]
CAPITAL STOCK	NOTE 18 Capital Stock ITT has authority to issue an aggregate of 550 shares of capital stock, of which 500 shares have been designated as “Common Stock” having a par value of $1 per share and 50 shares have been designated as “Preferred Stock” not having any par or stated value. There was no Preferred Stock outstanding as of December 31, 2010 and 2009. The stockholders of ITT common stock are entitled to receive dividends when and as declared by ITT’s Board of Directors. Dividends are paid quarterly. Dividends declared were $1.00, $0.85 and $0.70 per common share in 2010, 2009, and 2008, respectively. On October 27, 2006, a three-year $1 billion share repurchase program was approved by our Board of Directors. On December 16, 2008, the provisions of the share repurchase program were modified by our Board of Directors to replace the original three-year term with an indefinite term. Through December 2008, we had repurchased 7.1 million shares for $431, including commission fees, under the $1 billion share repurchase program. No shares were repurchased in 2010 or 2009. We make available for the exercise of stock options and vesting of restricted stock by purchasing shares in the open market or by issuing shares from treasury stock. During 2010, we issued 1.4 shares from our treasury account related to equity compensation arrangements. As of December 31, 2010 and 2009, 22.9 and 24.0 shares of Common Stock were held in our treasury account, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 19

Commitments and Contingencies

From time to time we are involved in legal proceedings that are incidental to the operation of our businesses. Some of these proceedings allege damages relating to asbestos liabilities, environmental liabilities, intellectual property matters, copyright infringement, personal injury claims, employment and pension matters, government contract issues and commercial or contractual disputes, sometimes related to acquisitions or divestitures. We will continue to defend vigorously against all claims. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have any material adverse impact on our cash flow, results of operations, or financial condition on a consolidated basis in the foreseeable future, unless otherwise noted below.

Asbestos Matters

Background

ITT, including its subsidiary Goulds Pumps, Inc. (Goulds), has been joined as a defendant with numerous other companies in product liability lawsuits alleging personal injury due to asbestos exposure. These claims allege that certain products sold by us or our subsidiaries prior to 1985 contained a part manufactured by a third party (e.g., a gasket) which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. In certain other cases, it is alleged that former ITT companies were distributors for other manufacturers’ products that may have contained asbestos.

As of December 31, 2010, there were 103,575 open claims against ITT 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:


	2010^(b)			2009
Pending claims^(a) – 1/1		104,679			103,006
New claims		5,865			4,274
Settlements		(991	)		(1,081	)
Dismissals		(6,469	)		(4,728	)
Adjustment^(c)		491			3,208

Pending claims^(a) – 12/31		103,575			104,679


(a)	We had previously indicated that 34,869 claims related to maritime actions, almost all of which were filed in the United States District Court for the Northern District of Ohio, were not included in the count of asserted claims because the Company believed they would not be litigated. In August 2010, these cases were dismissed.

(b)

In September 2010, ITT executed an amended cost-sharing agreement related to a business we disposed of a number of years ago. The amended agreement provides for a sharing of costs for claims resolved between 2010 and 2019 naming ITT or the entity which acquired the disposed business. Excluded from the table above is claim activity associated with the amended cost-sharing agreement for claims that were not filed against ITT.


(c)	Reflects an adjustment to increase the number of open claims as a result of transitioning claims data from our primary insurance companies to an internal database.

Frequently, plaintiffs are unable to identify any ITT or Goulds product as a source of asbestos exposure. In addition, in a large majority of the 103,575 pending claims against the Company, the plaintiffs are unable to demonstrate any injury. Many of those claims have been placed on inactive dockets (including 39,985 claims in Mississippi). Our experience to date is that a substantial portion of resolved claims have been dismissed without payment by the Company. As a result, management believes that a large majority of the 103,575 open claims have little or no value. The average cost per claim resolved in 2010 and 2009 was $16 thousand and $12 thousand, respectively. Because claims are sometimes dismissed in large groups, the average cost per resolved claim as well as the number of open claims can fluctuate significantly from period to period.

Beginning in the third quarter of 2009, the Company recorded an undiscounted asbestos liability, including legal fees, for costs that the Company is estimated to incur to resolve all pending claims, as well as unasserted claims estimated to be filed over the next 10 years. Prior to the third quarter of 2009, we only recognized a liability for pending claims. While it was probable that we would incur additional costs for future claims to be filed against the Company, a liability for potential future claims was not reasonably estimable at that time due to a number of factors. To begin with, our primary insurance carriers managed and paid all settlement and legal costs directly. This was compounded by the fact that, as part of their claims administration processes, the insurance companies maintained limited claims information and insufficient detail critical to estimate a potential liability for future claims, such as disease type. Lastly, the insurers restricted our access to claim filings and related information.

Over the past several years, we have negotiated coverage-in-place agreements with several of our insurers under which we have assumed responsibility for administering the asbestos claims. Since taking over the claims administration process, we have, over time, gained considerable knowledge of the claims. In addition, at the end of 2008 we engaged an outside consultant to construct a comprehensive database of claims filed against the Company. With the completion of this work in early third quarter of 2009, we were able to develop and analyze key data, such as settlements and dismissals by disease type, necessary to estimate our exposure to potential future asbestos claims. In the third quarter of 2009 and 2010, we engaged a leading consultant of asbestos-related professional services to assist us in estimating our asbestos liability for both pending and unasserted claims. This firm reviewed information provided by the Company concerning claims filed, settled and dismissed, amounts paid in settlements, and relevant claim information such as the nature of the asbestos-related disease asserted by the claimant and the time lag from filing to disposition of claims.

The methodology used to estimate our total liability for pending and unasserted future asbestos claims relies on and includes the following key factors:


	n	interpretation of a widely accepted forecast of the population likely to have been occupationally exposed to asbestos;

	n	widely accepted epidemiological studies estimating the number of people likely to develop mesothelioma and lung cancer from exposure to asbestos;

	n	the Company’s historical experience with the filing of non-malignant claims against it and the historical relationship between non-malignant and malignant claims filed against the Company;

	n	analysis of the number of likely asbestos personal injury claims to be filed against the Company based on such epidemiological and historical data and the Company’s most recent claims experience history;

	n	an analysis of the Company’s pending cases, by disease type;

	n	an analysis of the Company’s most recent history to determine the average settlement and resolution value of claims, by disease type;

	n	an analysis of the Company’s defense costs in relation to its settlement costs and resolved claims;

	n	an adjustment for inflation in the future average settlement value of claims and defense costs; and

	n	an analysis of the time over which the Company is likely to resolve asbestos claims.

Our methodology determines a point estimate based on our assessment of the value of each underlying assumption, rather than a range of reasonably possible outcomes. Projecting future asbestos costs is subject to numerous variables and uncertainties that are inherently difficult to predict. In addition to the uncertainties surrounding the key factors discussed above, other factors include the long latency period prior to the manifestation of the asbestos-related disease, costs of medical treatment, the impact of bankruptcies of other companies that are co-defendants, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, and the impact of potential legislative or judicial changes. Furthermore, any predictions with respect to the variables impacting the estimate of the asbestos liability are subject to even greater uncertainty as the projection period lengthens. In light of the uncertainties and variables inherent in the long-term projection of the Company’s total asbestos liability, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years, we do not believe there is a reasonable basis for estimating those costs at this time.

We record an asset that represents our best estimate of probable recoveries from insurers and other responsible parties for the estimated asbestos liabilities. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers and contractual agreements with other responsible parties, as well as a number of additional factors. These additional factors include current levels of recovery experience, the financial viability of the insurance companies or other responsible parties, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, and interpretation of the various policy and contract terms and limits and their interrelationships. The timing and amount of reimbursements will vary due to differing policy terms and certain gaps in coverage as a result of some insurer insolvencies. In addition, the Company retains an insurance consulting firm to assist management in estimating probable recoveries for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the analysis of policy terms, the likelihood of recovery provided by our legal counsel assuming the continued viability of those insurance carriers and other responsible parties which are currently solvent and incorporating risk mitigation judgments where policy terms or other factors were not certain.

As part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. In the third quarter each year, we conduct a detailed study with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions used to estimate our asbestos liability and related assets. Additionally, we periodically reassess the time horizon over which a reasonable estimate of unasserted claims can be projected.

2010 Charge

In the third quarter of 2010, we conducted our annual detailed study with the assistance of outside consultants to review and update the underlying assumptions used in our liability and asset estimates. During this study, the underlying assumptions were updated based on our actual experience since our last detailed review in the third quarter of 2009, a reassessment of the appropriate reference period of years of experience used in determining each assumption and our expectations regarding future conditions, including inflation. Based on the results of this study, we increased our estimated undiscounted asbestos liability, including legal fees, by $691, reflecting costs that the Company is estimated to incur to resolve all pending claims, as well as unasserted claims estimated to be filed over the next 10 years. The increase in our estimated liability is a result of several developments, including higher settlement costs and significantly increased activity in several higher-cost jurisdictions, increasing the number of cases to be adjudicated and the expected legal costs.

Further, in the third quarter of 2010, the Company recorded a $372 increase in its asbestos-related assets based on the results of this study. These assets comprise an insurance asset, as well as receivables from other responsible parties. See discontinued operations discussion below for further information about receivables from parties other than insurers.

For the full year 2010 and 2009, the net asbestos charge can be summarized as follows:


	2010						2009
	Pre-tax			After-tax			Pre-tax		After-tax
Continuing operations	$	385		$	247		$	238	$	148
Discontinued operations		(10	)		(6	)		9		6

Total	$	375		$	241		$	247	$	154

Changes in Financial Position:

The Company’s estimated asbestos exposure, net of expected recoveries from insurers and other responsible parties, for the resolution of all pending and unasserted asbestos claims estimated to be filed in the next 10 years was $642 and $267 as of December 31, 2010 and 2009, respectively. The following table provides a rollforward of the estimated total asbestos liability and related assets for the years ended December 31, 2010 and 2009, respectively.


	2010									2009
	Liability			Asset			Net			Liability			Asset			Net
Balance as of January 1	$	933		$	666		$	267		$	228		$	201		$	27
Changes in estimate during the period:
Continuing operations		591			206			385			700			462			238
Discontinued operations		217			227			(10	)		67			58			9
Net cash activity		(54	)		(54	)		—			(62	)		(55	)		(7	)
Other adjustments		(11	)		(11	)		—			—			—			—

Balance as of December 31	$	1,676		$	1,034		$	642		$	933		$	666		$	267

The total asbestos liability and related assets as December 31, 2010 and 2009 includes $117 and $66 presented within accrued liabilities and $105 and $62 presented within other current assets on our Consolidated Balance Sheets, respectively.

The asbestos liability and related receivables are based upon current, known information. However, future events affecting the key factors and other variables for either the asbestos liability or related receivables could cause the actual costs and recoveries to be materially higher or lower than currently estimated. Due to these uncertainties, as well as our inability to reasonably estimate any additional asbestos liability for claims which may be filed beyond the next 10 years, it is not possible to predict the ultimate outcome of the cost of resolving the pending and all unasserted asbestos claims. We believe it is possible that future events affecting the key factors and other variables within the next 10 years, as well as the cost of asbestos claims filed beyond the next 10 years, net of expected recoveries, could have a material adverse effect on our financial position, results of operations or cash flows.

Discontinued Operations:

At December 31, 2010 and 2009, $292 and $75 of the liability and $285 and $64 of the asset, respectively, related to a business which we disposed of a number of years ago that is reported as a discontinued operation. The increase in the liability and asset resulted from an amended cost-sharing agreement executed in September 2010 with the entity that acquired the disposed business. The amended agreement provided for a sharing of the claims settled between 2010 and 2019 naming ITT or the entity which acquired the disposed business. In future years, the liability for sharing the claims gradually transitions away from ITT, such that ITT will have no responsibility for claims resolved in 9 to 10 years. Under the prior cost-sharing agreement, costs were shared equally. The amended cost-sharing agreement also provides for the sharing of certain insurance policies. Prior to executing the amended cost-sharing agreement in September 2010, we recorded a liability for this discontinued operation based on pending claims and unasserted claims estimated to be filed over the next 10 years against ITT. As part of amending the cost-sharing agreement, ITT was provided with the key data necessary to estimate the exposure related to the shared pending and estimated future claims. The estimate of the additional liability and asset recorded as a result of the amended cost-sharing agreement were calculated in a manner consistent with the approach used to estimate ITT’s stand-alone asbestos liabilities and assets.

Future Cash Flows:

We have estimated that we will be able to recover 62% of the asbestos settlement and defense costs for pending claims as well as unasserted claims estimated to be filed over the next 10 years from our insurers or other responsible parties. However, because there are gaps in our insurance coverage, reflecting the insolvency of certain insurers and prior insurance settlements, and we expect that certain policies from some of our insurers will exhaust within the next 10 years, the recovery percentage is expected to decline for potential additional asbestos liabilities. Insurance coverage in the tenth year of our estimate of the asbestos claims liability is currently projected to be approximately 25%. Future recoverability rates may also be impacted by other factors, such as future insurance settlements, insolvencies and judicial determinations relevant to our coverage program, which are difficult to predict. Subject to the qualifications regarding uncertainties previously described, it is expected that future annual cash payments, net of recoveries related to pending claims and unasserted claims to be filed within the next 10 years, will extend through approximately 2022 due to the time lag between the filing of a claim and its resolution. These annual net cash outflows are projected to average $25 over the next five years, as compared to an average of approximately $10 to $15 in the past three years, and increase to an average of approximately $50 to $60 over the remainder of the projection period.

Environmental

In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and remediation of sites in various countries. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by ITT, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations.

Accruals for environmental matters are recorded on a site by site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our accrued liabilities for these environmental matters represent the best estimates related to the investigation and remediation of environmental media such as water, soil, soil vapor, air and structures, as well as related legal fees. These estimates, and related accruals, are reviewed periodically and updated for progress of investigation and remediation efforts and changes in facts and legal circumstances. Liabilities for these environmental expenditures are recorded on an undiscounted basis.

It is difficult to estimate the final costs of investigation and remediation due to various factors, including incomplete information regarding particular sites and other potentially responsible parties, uncertainty regarding the extent of investigation or remediation and our share, if any, of liability for such conditions, the selection of alternative remedial approaches, and changes in environmental standards and regulatory requirements. In our opinion, the total amount accrued is appropriate based on existing facts and circumstances. We do not anticipate these liabilities will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

The following table illustrates the activity related to our accrued liabilities for these environmental matters.


	2010			2009
Environmental liability – 1/1	$	140		$	135
Accruals added during the period		—			1
Change in estimates for pre-existing accruals		14			18
Payments		(15	)		(14	)

Environmental liability – 12/31	$	139		$	140

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


	2010		2009
Low-end range	$	117	$	113
High end range	$	251	$	249
Number of active environmental investigation and remediation sites		99		98

Other Matters

The Company is involved in coverage litigation with various insurers seeking recovery of costs incurred in connection with certain environmental and product liabilities. In a suit filed in 1991, ITT Corporation, et al. v. Pacific Indemnity Corporation et al, Sup. Ct., Los Angeles County, we are seeking recovery of costs related to environmental losses. Discovery, procedural matters, changes in California law, and various appeals have prolonged this case. For several years, the case was on appeal before the California Court of Appeals from a decision by the California Superior Court dismissing certain claims made by ITT. The case is now back before the Superior Court and the parties are engaged in further discovery.

On February 13, 2003, we commenced an action, Cannon Electric, Inc. v. Affiliated FM Ins. Co., Sup. Ct., Los Angeles County, seeking recovery of costs related to asbestos product liability losses described above. During this coverage litigation, we entered into coverage-in-place settlement agreements with ACE, Wausau and Utica Mutual dated April 2004, September 2004, and February 2007, respectively. These agreements provide specific coverage for the Company’s legacy asbestos liabilities. We are prepared to pursue legal remedies against the remaining defendants where reasonable negotiations are not productive.

ITT provides an indemnity to U.S. Silica Company (USS) for silica personal injury suits filed prior to September 12, 2005 against our former subsidiary Pennsylvania Glass Sand (PGS). ITT sold the stock of PGS to U.S. Silica Company in 1985. Over the past several years, the majority of the silica cases involving PGS have been dismissed without payment. Currently there are approximately 3,000 cases pending against PGS. The Company expects that the majority of the remaining cases will also be dismissed. In addition, USS is currently filing insurance claims directly with our insurer, and that insurer has been paying the claims. We will continue to seek past defense costs for these cases from our insurers. We believe that these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. All silica-related costs, net of expected insurance recoveries, are shared with certain previously wholly-owned subsidiaries.

On March 27, 2007, we reached a settlement relating to an investigation of our ITT Night Vision Division’s compliance with the International Traffic in Arms Regulations (ITAR) pursuant to which we pled guilty to two violations based on the export of defense articles without a license and the omission of material facts in required export reports. We were assessed a total of $50 in fines, forfeitures and penalties. We also entered into a Deferred Prosecution Agreement with the U.S. Government which deferred action regarding a third count of violations related to ITAR pending our implementation of a remedial action plan, including the appointment of an independent monitor. We were also assessed a deferred prosecution monetary penalty of $50 which is being reduced for monies spent, during the five-year period following the date of the Plea Agreement, to accelerate and further the development and fielding of advanced night vision technology. Management believes that these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

On April 17, 2007, ITT’s Board of Directors received a letter on behalf of a shareholder requesting that the Board take appropriate action against the employees responsible for the violations at our Night Vision facility described above. During 2007 and 2008, the Company also received notice of four shareholder derivative actions each filed in the U.S. District Court for the Southern District of New York. On July 10, 2010, the Court granted the Defendants’ Motion to Terminate the proceedings. The matter is now concluded.

Guarantees, Indemnities and Warranties

12 Months Ended

Dec. 31, 2010

Guarantees, Indemnities and Warranties [Abstract]

GUARENTEES, INDEMNITIES AND WARANTIES

NOTE 20

Guarantees, Indemnities and Warranties

Indemnities

Since ITT’s incorporation in 1920, we have acquired and disposed of numerous entities. The related acquisition and disposition agreements contain various representation and warranty clauses and may provide indemnities for a misrepresentation or breach of the representations and warranties by either party. The indemnities address a variety of subjects; the term and monetary amounts of each such indemnity are defined in the specific agreements and may be affected by various conditions and external factors. Many of the indemnities have expired either by operation of law or as a result of the terms of the agreement. We do not have a liability recorded for these indemnifications and are not aware of any claims or other information that would give rise to material payments under such indemnities.

Guarantees

We have a number of guarantees outstanding at December 31, 2010, the substantial majority of which pertain to our performance under long-term sales contracts. We did not have any recorded loss contingencies under these performance guarantees as of December 31, 2010 and 2009 as the likelihood of ITT nonperformance by ITT or ITT’s subsidiaries is considered remote. We also have certain third-party guarantees that may be affected by various conditions and external factors, some of which could require that payments be made under such guarantees. We do not consider the maximum exposure or current recorded liabilities under our third-party guarantees to be material either individually or in the aggregate. We do not believe such payments would have a material adverse impact on the financial position, results of operations or cash flows on a consolidated basis.

In December 2007, we entered into a sale leaseback agreement for our corporate aircraft, with the aircraft leased to ITT under a five-year operating lease. We have provided a residual value guarantee to the lessor for the future value of the aircraft with a maximum payment of $42. At expiration of the lease, however, if the fair value of the aircraft is less than $50, payment under the residual value guarantee would be equal to the difference between the fair value of the aircraft at expiration of the lease and $50, provided that such payment shall not exceed $42. At December 31, 2010, the projected fair value of the aircraft at expiration of the lease is estimated to be $22 less than the guaranteed amount. As this estimated loss exceeds the $5 gain we realized and deferred from the sale of the aircraft as a loss contingency, we have recorded an additional accrual of $17 during 2010 in our Consolidated Financial Statements.

Warranties

ITT warrants numerous products, the terms of which vary widely. In general, ITT warrants its products against defect and specific non-performance. In the automotive businesses, liability for product defects could extend beyond the selling price of the product and could be significant if the defect interrupts production or results in a recall. The table included below provides changes in the product warranty accrual for December 31, 2010 and 2009.


	2010			2009
Warranty accrual – 1/1	$	67		$	57
Warranty expense		43			38
Payments		(39	)		(29	)
Other		1			1

Warranty accrual – 12/31	$	72		$	67

Business Segment Information

12 Months Ended

Dec. 31, 2010

Business Segment Information [Abstract]

BUSINESS SEGMENT INFORMATION

NOTE 21

Business Segment Information

The Company’s business segments are reported on the same basis used internally for evaluating performance and for allocating resources. Our three reporting segments are referred to as: Defense Electronics & Services (Defense segment), Fluid Technology (Fluid segment), and Motion & Flow Control (Motion & Flow segment). Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as asbestos and environmental liabilities, that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources. Assets of the business segments exclude general corporate assets, which principally consist of cash, deferred tax assets, insurance receivables, certain property, plant and equipment, and certain other assets.

Defense – The businesses in this segment are those that directly serve the military and government agencies with products and services. Products include tactical communications equipment, electronic warfare and force protection equipment, radar systems, integrated structures equipment and imaging and sensor equipment, which includes night vision goggles, as well as weather, location, surveillance and other related technologies. Services include air traffic management, information and cyber solutions, large-scale systems engineering and integration and defense technologies. The U.S. Government accounted for 86% of Defense segment revenue.

Fluid – Our Fluid segment is a provider of water transport and wastewater treatment systems, pumps and related technologies, and other water and fluid control products with residential, commercial, and industrial applications.

Motion & Flow – Our Motion & Flow segment comprises a group of businesses providing products and services for the areas of transportation, defense, aerospace, industrial, computer, telecommunications, medical, marine, and food & beverage. The Motion & Flow businesses primarily serve the high-end of their markets, with highly engineered products, high brand recognition, a focus on new product development and operational excellence.


	2010								2009								2008
	PRODUCT			SERVICE		TOTAL			PRODUCT			SERVICE		TOTAL			PRODUCT			SERVICE		TOTAL
	REVENUE			REVENUE		REVENUE			REVENUE			REVENUE		REVENUE			REVENUE			REVENUE		REVENUE
Defense	$	3,602		$	2,295	$	5,897		$	3,788		$	2,279	$	6,067		$	3,925		$	2,139	$	6,064
Fluid		3,475			195		3,670			3,220			143		3,363			3,693			148		3,841
Motion & Flow		1,430			11		1,441			1,245			8		1,253			1,575			8		1,583
Eliminations		(13	)		—		(13	)		(9	)		—		(9	)		(12	)		—		(12	)

Total	$	8,494		$	2,501	$	10,995		$	8,244		$	2,430	$	10,674		$	9,181		$	2,295	$	11,476


	OPERATING INCOME									OPERATING MARGIN
	2010			2009			2008			2010			2009			2008
Defense	$	752		$	761		$	715			12.8	%		12.5	%		11.8	%
Fluid		479			393			469			13.1	%		11.7	%		12.2	%
Motion & Flow		179			118			192			12.4	%		9.4	%		12.1	%
Corporate and Other		(510	)		(378	)		(178	)		—			—			—

Total	$	900		$	894		$	1,198			8.2	%		8.4	%		10.4	%


					PLANT, PROPERTY										DEPRECIATION AND
	TOTAL ASSETS				& EQUIPMENT, NET				CAPITAL EXPENDITURES						AMORTIZATION
	2010		2009		2010		2009		2010		2009		2008		2010		2009		2008
Defense	$	4,149	$	4,153	$	434	$	402	$	107	$	115	$	87	$	134	$	154	$	147
Fluid		4,077		2,930		518		393		109		74		81		100		73		69
Motion & Flow		1,350		1,323		230		235		52		56		64		53		57		56
Corporate and Other		2,862		2,723		23		20		60		26		16		10		5		2

Total	$	12,438	$	11,129	$	1,205	$	1,050	$	328	$	271	$	248	$	297	$	289	$	274


							PLANT, PROPERTY
	REVENUE^(a)						& EQUIPMENT, NET
Geographic Information	2010		2009		2008		2010		2009
United States	$	7,305	$	7,362	$	7,779	$	739	$	603
Western Europe		1,970		1,814		2,098		305		317
Asia Pacific		663		577		604		70		65
Other		1,057		921		995		91		65

Total	$	10,995	$	10,674	$	11,476	$	1,205	$	1,050


(a)	Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery.

The following table provides revenue by product category, net of intercompany balances.


	2010		2009		2008
Defense segment:
Defense products	$	3,600	$	3,785	$	3,924
Defense services		2,295		2,279		2,139
Fluid segment:
Pumps & complementary products and services		3,667		3,363		3,840
Motion & Flow segment:
Automotive and rail equipment		552		495		567
Connectors equipment		405		335		445
Aerospace products		127		117		134
Other products		349		300		427

Total	$	10,995	$	10,674	$	11,476

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2010
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 22 Subsequent Events On January 12, 2011, the Company announced that its Board of Directors had unanimously approved a plan to separate the Company’s businesses into three distinct, publicly traded companies. Following completion of the transaction, ITT will continue to trade on the New York Stock Exchange as an industrial company that supplies highly engineered solutions in the aerospace, transportation, energy and industrial markets. Under the plan, ITT shareholders will own shares in all three corporations following the completion of the transaction. The transaction is anticipated to be completed by the end of 2011. Under the plan, ITT would execute tax-free spinoffs to shareholders of its water-related businesses and its Defense & Information Solutions segment. The water-related business will include the Water & Wastewater division and the Residential & Commercial Water division, as well as the Flow Control division that is currently reported within the Motion & Flow Control segment. The Industrial Process division, which is currently reported within the Fluid segment, will continue to operate as a subsidiary of the new ITT Corporation.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2010
Summary of Significant Accounting Policies (Policies) [Abstract]
Basis of Presentation	*Basis of Presentation* ITT Corporation is a global multi-industry leader in high-technology engineering and manufacturing, operating through three principal business segments; Defense & Information Solutions (Defense segment), Fluid Technology (Fluid segment) and Motion & Flow Control (Motion & Flow segment). The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Corporation and its subsidiaries. Certain prior year amounts have been reclassified to conform to the current year presentation. Reclassifications principally relate to the designation of CAS, Inc. (CAS) as a discontinued operation and accordingly, these reclassifications have affected the results of continuing operations for historical periods. See Note 4, “Discontinued Operations,” in our Notes to the Consolidated Financial Statements for further information on the CAS divestiture.
Use of Estimates	*Use of Estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers and other responsible parties, postretirement obligations and assets, revenue recognition, income tax contingency accruals and valuation allowances, goodwill impairment testing and contingent liabilities. Actual results could differ from these estimates.
Consolidation Principles	*Consolidation Principles* ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Income Statements. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal. All intercompany transactions have been eliminated.
Business Combinations	*Business Combinations* ITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests acquired based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill. Changes to acquisition date fair values after expiration of the measurement period are recorded in earnings. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are recognized separately from the business combination and are expensed as incurred.
Revenue Recognition	*Revenue Recognition* Revenue is recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction-type contracts, we recognize revenue at the time title and risks and rewards of ownership pass, which is generally when products are shipped. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Service revenue is recognized as services are performed. For agreements that contain multiple deliverables, we recognize revenue for a delivered element when it has stand-alone value to the customer, there is objective and reliable evidence of fair value of the undelivered elements, and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The Defense segment and certain businesses within the Fluid segment enter into long-term construction-type sales contracts for which revenue is recognized under the percentage-of-completion method based upon units of delivery, percentage of costs incurred to total costs, or the completion of scheduled performance milestones. For units of delivery, revenues and profits are recognized based upon the ratio of actual units delivered to estimated total units to be delivered under the contract. Under the cost-to-total cost method, revenue is recognized based upon the ratio of costs incurred to estimated total costs at completion. Revenue is recognized under the milestone method, based upon accomplishing a clear deliverable output of contract performance with value to the customer. Revenue under cost-reimbursement contracts is recorded as costs are incurred and includes estimated earned fees or profits calculated on the basis of the relationship between costs incurred and total estimated costs. Revenue and profits on time-and-material type contracts are recognized based on billable rates times direct labor hours incurred plus material and other reimbursable costs incurred. The completed contract method is utilized when reasonable and reliable cost estimates for a project cannot be made. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied, and is recorded as a component of accounts payable. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of trade receivables. During the performance of long-term sale contracts, estimated final contract prices and costs are periodically reviewed and revisions are made as required and recorded in earnings in the period in which they are determined. Additionally, the fees under certain contracts may be increased or decreased in accordance with cost or performance incentive provisions which measure actual performance against established targets or other criteria. Such incentive fee awards or penalties are included in revenue when there is sufficient information to reasonably assess anticipated contract performance. Our claims on contracts are recorded only if it is probable the claim will result in additional contract revenue and the amounts can be reliably estimated. Provisions for estimated losses, if any, on uncompleted long-term contracts, are made in the period in which such losses are determined and are recorded as a component of costs of revenue. We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. Additionally, accruals for estimated expenses related to warranties are made at the time products are sold or services are rendered and are recorded as a component of costs of revenue. These accruals are established using historical information on the nature, frequency and average cost of warranty claims and estimates of future costs. Revenue is reported net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority.
Shipping and Handling Costs	*Shipping and Handling Costs* Shipping and handling costs are recorded as a component of costs of revenue.
Postretirement Benefit Plans	*Postretirement Benefit Plans* ITT sponsors numerous pension and other employee-related defined benefit plans (collectively, postretirement benefit plans) for employees around the world. The determination of benefit obligations and the recognition of expenses related to postretirement plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets, rate of future compensation increases, mortality, termination, health care inflation trend rates and other factors. Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist. All actuarial assumptions are reviewed periodically with third-party consultants and adjusted as necessary. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last five years. Actual results that differ from our assumptions are accumulated and amortized over the estimated future working life of the plan participants. The fair value of plan assets is determined based on market prices or estimated fair value at the measurement date. See Note 16, “Postretirement Benefit Plans,” for further information on the measurement of fair value. The funded or unfunded position of each plan is recorded on our balance sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through net income are recorded in accumulated other comprehensive income within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost.
Research and Development	*Research and Development* Research and development (R&D) programs include Company-sponsored activities as well as activities performed pursuant to customer contracts. R&D costs incurred as part of a Company-sponsored activity are charged to expense as incurred and are reported as a component of operating income within the R&D expense line. R&D costs incurred under customer contracts reported as a component of costs of revenue when the expense is incurred.
Stock-Based Compensation	*Stock-Based Compensation* Stock-based awards issued to employees and non-employee directors include non-qualified stock options, restricted stock awards and certain liability-based awards. Compensation costs resulting from share-based payment transactions are recognized primarily within SG&A, at fair value over the requisite service period (typically three years) on a straight-line basis. The calculated compensation cost is adjusted based on an estimate of awards ultimately expected to vest. The fair value of a non-qualified stock option is determined on the date of grant using a binomial lattice pricing model incorporating multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The fair value of restricted stock awards is determined using the closing price of the Company’s common stock on date of grant. The fair value of our liability-based awards, including cash awards under our Long-Term Incentive Plan, is reassessed at the end of each reporting period, including an adjustment for awards that are not ultimately expected to vest.
Asbestos-related contingencies and receivables	*Asbestos-Related Contingencies and Receivables* ITT is a defendant in product liability lawsuits alleging personal injury due to asbestos exposure. We recognize an undiscounted liability for any asbestos-related contingency that is probable of occurrence and reasonably estimable. We have accrued for the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees. Factors utilized in determining the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, and the number of new claims filed against the Company. In light of the uncertainties and variables inherent in the long-term projection of the Company’s total asbestos liability, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years, we do not believe there is a reasonable basis for estimating those costs at this time. In addition, the Company retains a consulting firm to assist management in estimating our potential exposure to pending asbestos claims and for claims estimated to be filed over the next 10 years. The Company has also recorded an asbestos asset, comprised predominantly of an insurance asset and expected recoveries from other responsible parties. The asbestos asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. The timing and amount of reimbursements will vary due to differing policy terms and certain gaps in coverage as a result of possible insurer insolvencies. As part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. In the third quarter each year, we conduct a detailed study with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions to estimate our asbestos liability and related assets. Additionally, we periodically reassess the time horizon over which a reasonable estimate of unasserted claims can be projected.
Restructuring	*Restructuring* We periodically initiate management approved restructuring activities to achieve cost savings through reduced operational redundancies and to strategically position ourselves in the market in response to prevailing economic conditions and associated customer demand. Costs associated with restructuring actions can include severance, infrastructure charges to vacate facilities or consolidate operations, contract termination costs and other related charges. For involuntary separation plans, a liability is recognized when it is probable and reasonably estimable. For voluntary separation plans, a liability is recognized when the employee irrevocably accepts the voluntary termination. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as lease termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change.
Income Taxes	*Income Taxes* We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities. We record a valuation allowance to reduce deferred tax assets when uncertainty regarding their realizability exists. In assessing the need for a valuation allowance, we look to the future reversal of existing taxable temporary differences, taxable income in carryback years, the feasibility of tax planning strategies and estimated future taxable income. The valuation allowance can be affected by changes to tax laws, changes to statutory tax rates and changes to future taxable income estimates. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Foreign Currency Translation	*Foreign Currency Translation* The national currencies of our foreign companies are generally the functional currencies. Balance sheet accounts are translated at the exchange rate in effect at the end of each period; income statement accounts are translated at the average rates of exchange prevailing during the period. Gains and losses on foreign currency translations are reflected in the cumulative translation adjustments component of shareholders’ equity. Net gains or losses from foreign currency transactions are reported currently in selling, general and administrative expenses.
Earnings Per Share	*Earnings Per Share* Basic earnings per common share considers the weighted average number of common shares outstanding, as well as outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends.
Cash and Cash Equivalents	*Cash and Cash Equivalents* ITT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. We did not have any investments in marketable securities reported within cash and cash equivalents as of December 31, 2010. As of December 31, 2009, marketable securities included in cash and cash equivalents totaled $72.
Concentrations of Credit Risk	*Concentrations of Credit Risk* Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, and derivative contracts. We maintain cash and cash equivalents and derivative contracts with various financial institutions. These financial institutions are located in many different geographical regions, and our policy is designed to limit exposure with any one institution. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from instruments held at financial institutions. We may utilize forward contracts to protect against the effects of foreign currency fluctuations. Such contracts involve the risk of non-performance by the counterparty. The U.S. government accounted for 25% and 18% of gross accounts receivable at December 31, 2010 and 2009, respectively. Credit risk with respect to other accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. ITT performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances.
Allowance for Doubtful Accounts	*Allowance for Doubtful Accounts* We determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate.
Inventories	*Inventories* Inventories are recorded at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. A full absorption policy is employed using standard cost techniques that are periodically reviewed and adjusted. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value. Inventories valued under the last-in, first-out (LIFO) method represent 7.1% and 6.4% of total 2010 and 2009 inventories, respectively. There would not have been a material difference in the value of inventories if the FIFO method had been used to value all inventories. Inventoried costs related to long-term contracts are stated at the actual production cost, including overhead and other related non-recurring costs incurred to date reduced by amounts identified with revenue recognized on units delivered or progress completed. General and administrative costs applicable to cost-reimbursement type contracts are also included in inventories. Inventoried costs relating to long-term contracts and programs are reduced by charging any amounts in excess of estimated realizable value to costs of revenue.
Property, Plant and Equipment	*Plant, Property and Equipment* Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the economic useful lives of the assets involved as follows: buildings and improvements – five to 40 years, machinery and equipment – two to 10 years, furniture and office equipment – three to seven years, and other – five to 40 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal.
Capitalized Internal Use Software	*Capitalized Internal Use Software* ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from three to seven years.
Long-Lived Asset Impairment	*Long-Lived Asset Impairment* Long-lived assets, including intangible assets with finite lives, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values.
Goodwill and Intangible Assets	*Goodwill and Intangible Assets* Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of acquired businesses. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are amortized on a straight-line basis over an estimated economic useful life, which generally range from 15-20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth quarter. For goodwill, the impairment test is a two-step test. In the first step, the estimated fair value of each reporting unit is compared to the carrying value of the net assets assigned to that reporting unit. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and the second step of the impairment test is not performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. We estimate the fair value of our reporting units and indefinite-lived intangible assets using an income approach. Under the income approach, we estimate fair value based on the present value of estimated future cash flows.
Commitments and Contingencies	*Commitments and Contingencies* We record accruals for commitments and loss contingencies for those which are both probable and the amount can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other updated information. Accruals for environmental matters are recorded on a site by site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. These accruals are adjusted periodically as assessment and remediation efforts progress or as additional technical or legal information become available. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties. Recoveries from insurance companies or other third parties are primarily included in other non-current assets when the recovery is probable.
Fair Value Measurements	*Fair Value Measurements* We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a hierarchical structure to prioritize the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), then to quoted market prices for similar assets or liabilities in active markets (Level 2) and gives the lowest priority to unobservable inputs (Level 3).
Derivative Financial Instruments	*Derivative Financial Instruments* ITT uses derivative financial instruments, primarily foreign currency forward contracts, to mitigate exposure from foreign currency exchange rate fluctuations as it pertains to intercompany transactions. We do not use derivative instruments for speculative purposes. We record derivatives at their fair value as either a current asset or current liability. We include adjustments to reflect changes in fair values of derivatives in earnings as these contracts are not designated as hedges. The amount of gains and losses recorded related to our foreign currency exchange contracts and the net fair value of our outstanding contracts was not material as of and for the years ended 2010, 2009 and 2008. The fair values associated with the foreign currency contracts have been determined using the net position of the contracts and the applicable spot rates and forward rates as of the reporting date. ITT may use interest rate swaps to manage its debt portfolio, the related financing costs and interest rate structure. Interest rate swaps involve the periodic exchange of payments without the exchange of underlying principal or notional amounts. Net payments are recognized as an adjustment to interest expense. When interest rate swaps designated as hedges are terminated, unrealized gains or losses are deferred and amortized over the shorter of the remaining original term of the hedging instrument or the remaining life of the underlying debt instrument. Such gains or losses are reflected in net interest expense. As of December 31, 2010 and 2009 we did not have any material open interest rate swaps.

New Accounting Pronouncements (Policies)	12 Months Ended
New Accounting Pronouncements (Policies)	Dec. 31, 2010
Pronouncements Not Yet Adopted
New Accounting Pronouncements, Not Yet Adopted, ASU 2010-28	In December 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2010-28, which provides additional guidance when testing goodwill for impairment. Specifically, for reporting units with zero or negative carrying amounts, an entity is required to perform the second step of the goodwill impairment test if it is more likely than not that a goodwill impairment exists, considering any adverse qualitative factors. As of the date of our 2010 annual goodwill impairment test, the net carrying amounts for each of our reporting units exceeded zero. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. We currently do not expect the adoption of this ASU on January 1, 2011 to have a significant effect on our Consolidated Financial Statements.
New Accounting Pronouncements, Not Yet Adopted, ASU 2009-13	In October 2009, the FASB issued ASU No. 2009-13, which amended the accounting for revenue arrangements that contain multiple elements. The objective of this amendment is to address the accounting for multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than as a combined unit. The amendments establish a hierarchy for determining the selling price of a deliverable and will allow for the separation of products and services in more instances than previously permitted. The guidance provided within ASU 2009-13 is effective for new or materially modified arrangements in fiscal years beginning on or after June 15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We will adopt the provisions of this ASU on January 1, 2011. Although we continue to evaluate the effects adoption of this ASU will have, we currently do not believe our results of operations, financial position or liquidity will be adversely affected.
New Accounting Pronouncements, Not Yet Adopted, ASU 2009-14	In October 2009, the FASB issued ASU No. 2009-14, which amended the accounting requirements for software revenue recognition. The objective of this update is to address the accounting for revenue arrangements that contain tangible products and software. Specifically, products that contain software that is “more than incidental” to the product as a whole will be removed from the scope of the software revenue recognition literature. The amendments align the accounting for these revenue transaction types with the amendments described under ASU 2009-13 above. The guidance provided within ASU 2009-14 is effective for new or materially modified arrangements in fiscal years beginning on or after June 15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We do not believe adoption of this ASU on January 1, 2011 will have a significant impact on our Consolidated Financial Statements.
New Accounting Pronouncements, Not Yet Adopted, ASU 2010-17	In April 2010, the FASB issued ASU No. 2010-17, which establishes authoritative guidance permitting use of the milestone method of revenue recognition for research or development arrangements that contain payment provisions or consideration contingent on the achievement of specified events. This guidance is effective for milestones achieved in fiscal years beginning on or after June 15, 2010 and allows for either prospective or retrospective application, with early adoption permitted. We do not believe adoption of this ASU on January 1, 2011 will have a significant impact on our Consolidated Financial Statements.
Recently Adopted Accounting Pronouncements
New Accounting Pronouncements, Adopted, Amendment to Variable Interest Entity Accounting and Disclosure Requirements	In June 2009, the FASB amended the accounting and disclosure requirements related to the consolidation of variable interest entities (VIE(s)). The amendments include replacing the quantitative-based risks and rewards calculation for determining which enterprise, if any, has a controlling financial interest in VIE(s) with an approach focused on identifying which enterprise has the power to direct the activities of VIE(s) that most significantly impact the entity’s economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. In addition, the amendments require an ongoing assessment of whether an enterprise is the primary beneficiary of the VIE(s) and requires additional disclosures about an enterprise’s involvement in VIE(s). The adoption of these amendments on January 1, 2010 did not have a material impact on our Consolidated Financial Statements.
Adoption of ASU 2009-12 and its impacts	In September 2009, the FASB issued ASU 2009-12 which provides guidance under the Fair Value Measurements and Disclosures Topic, ASC 820-10. The new guidance provides investors a practical expedient for measuring the fair value of investments in certain entities that calculate net asset value per share (NAV). This ASU is effective for periods ending after December 15, 2009. Adoption did not have a material effect on our Consolidated Financial Statements.
Adoption of ASU 2009-05 and its impacts	In August 2009, the FASB issued ASU 2009-05 which provides additional guidance on the application of fair value techniques for liabilities under the Fair Value Measurements and Disclosures Topic (ASC 820). The guidance clarifies that the quoted price for the liability when traded as an asset in an active market is a Level 1 measurement, when no adjustment to the quoted price is required. In the absence of a Level 1 (quoted price) measurement, an entity must use one or more valuation techniques to estimate fair value in a manner consistent with the principles in ASC 820. The requirements under this ASU were effective for our fourth quarter period beginning October 1, 2009. Adoption did not have a material effect on our Consolidated Financial Statements.

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2010

Discontinued Operations (Tables) [Abstract]

Schedule of disposal groups, including discontinued operations and assets and liabilities reported as held for sale

The following table provides third-party revenue and operating income provided by CAS included within discontinued operations.


	2010		2009		2008
Revenue	$	160	$	231	$	218
Pre-tax operating income		13		15		12

Assets and liabilities of CAS reported as discontinued operations within our Consolidated Balance Sheet are presented in the table below.


	2009
Receivables, net	$	43
Plant, property and equipment, net		1
Goodwill		76
Other intangible assets, net		18
Deferred income taxes		2
Other assets		1

Total assets of discontinued operations	$	141

Accounts payable	$	19
Accrued expenses		17
Deferred income taxes		8

Total liabilities of discontinued operations	$	44

Restructuring and Asset Impairment Charges (Tables)

12 Months Ended

Dec. 31, 2010

Restructuring and Asset Impairment Charges (Tables) [Abstract]

Restructuring costs

The components of all restructuring costs incurred during each of the previous three years ended are presented below.


	2010			2009			2008
By component:
Severance charges	$	47		$	71		$	66
Other restructuring charges		10			11			10
Reversal of restructuring accruals		(5	)		(3	)		(2	)

Total net restructuring charge		52			79			74
Asset impairment charge		1			–			3

Total net restructuring and impairment charge	$	53		$	79		$	77

By segment:
Defense	$	33		$	5		$	11
Fluid		14			37			34
Motion & Flow		5			37			30
Corporate and Other		1			–			2

Rollforward of the restructuring accruals

The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for the each of the previous three years ended.


	2010			2009
Restructuring accruals – 1/1	$	53		$	58
Charges for plans initiated during the year		50			71
Charges for plans initiated in prior years		7			11
Cash payments		(70	)		(82	)
Asset write-offs		(1	)		(2	)
Reversal of accruals		(5	)		(3	)
Foreign exchange translation and other		(2	)		–

Restructuring accruals – 12/31	$	32		$	53

By accrual type:
Severance accrual	$	26		$	46
Facility carrying and other costs accrual		6			7

By segment:
Defense	$	17		$	4
Fluid		7			18
Motion & Flow		8			31
Corporate and Other		–			–

Planned Headcount Reductions

The following is a rollforward of employee position eliminations associated with restructuring activities through 2010:


	2010			2009
Planned reductions – 1/1		407			510
Additional planned reductions		1,265			1,125
Actual reductions		(1,488	)		(1,228	)

Planned reductions – 12/31		184			407

Defense segment realignment activities

The following table provides a rollforward of the restructuring accrual associated with this action, including the related charges and payments.


	2010
Restructuring accruals – 1/1	$	–
Restructuring charges		28
Cash payments		(18	)
Reversal of accruals		(1	)
Foreign exchange translation and other		–

Restructuring accruals – 12/31	$	9

Reduction in Force Activities

The following table provides a rollforward of the restructuring accrual associated with this action, including the related charges and payments.


	2010			2009
Restructuring accruals – 1/1	$	8		$	46
Restructuring charges		–			8
Cash payments		(4	)		(45	)
Reversal of accruals		(1	)		(1	)
Foreign exchange translation and other		–			–

Restructuring accruals – 12/31	$	3		$	8

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2010

Income Taxes (Tables) [Abstract]

Income tax data from continuing operations

Income tax data from continuing operations is as follows:


	2010			2009			2008
Income components:
United States	$	352		$	432		$	651
International		466			378			425

Total pre-tax income	$	818		$	810		$	1,076

Income tax expense components:
Current income tax provision:
United States – federal	$	152		$	129		$	160
United States – state and local		18			8			5
International		109			109			131

Total current income tax provision		279			246			296

Deferred income tax provision:
United States – federal		(112	)		(45	)		19
United States – state and local		(9	)		(14	)		(1	)
International		6			(18	)		(6	)

Total deferred income tax provision		(115	)		(77	)		12

Total income tax expense	$	164		$	169		$	308
Effective income tax rate		20.0	%		20.9	%		28.6	%

Reconciliation of tax provision for continuing operations at US statutory rate

A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows:


	2010			2009			2008
Tax provision at U.S. statutory rate		35.0	%		35.0	%		35.0	%
International restructurings		–			(7.1	)		–
Foreign tax rate differential		(5.9	)		(4.4	)		(2.2	)
Effect of repatriation of foreign earnings		(3.1	)		(0.4	)		(0.4	)
State and local income tax		1.1			(1.5	)		0.4
Research credit		(1.1	)		(0.9	)		(0.3	)
Tax examinations		(1.4	)		–			–
Domestic manufacturing deduction		(2.6	)		(1.3	)		(0.3	)
Tax account validation adjustment		–			–			(3.9	)
Other		(2.0	)		1.5			0.3

Effective income tax expense rate		20.0	%		20.9	%		28.6	%

Deferred tax assets and liabilities

Deferred tax assets and liabilities include the following:


	2010			2009
Deferred Tax Assets:
Employee benefits	$	650		$	736
Accruals		391			281
Loss carryforwards		148			200
Other		110			39

Subtotal		1,299			1,256
Valuation allowance		(116	)		(150	)

Net deferred tax assets	$	1,183		$	1,106

Deferred Tax Liabilities:
Intangibles	$	355		$	324
Accelerated depreciation		50			47
Investment		8			16

Total deferred tax liabilities	$	413		$	387

Deferred taxes in the Consolidated Balance Sheets

Included within the deferred tax table provided above is $6 of net deferred tax liability as of December 31, 2009 related to discontinued operations.

Deferred taxes in the Consolidated Balance Sheets consist of the following:


	2010			2009
Current assets	$	280		$	232
Non-current assets		554			583
Current liabilities		(12	)		(36	)
Other non-current liabilities		(52	)		(54	)

	$	770		$	725

Attributes Available For Utilization

We have the following attributes available for utilization:


ATTRIBUTE	AMOUNT		FIRST YEAR OF EXPIRATION
U.S. net operating losses	$	24		December 31, 2020
State net operating losses		2,486		December 31, 2011
Federal and state capital losses		29		December 31, 2012
U.S. tax credits		22		December 31, 2012
Foreign net operating losses		343		December 31, 2011

A reconciliation of the beginning and ending amount of uncertain tax positions

A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31, 2010 and 2009 is as follows:


	2010			2009			2008
Unrecognized tax benefits – 1/1	$	171		$	145		$	103
Additions for:
Current year tax positions		48			5			7
Prior year tax positions		17			28			66
Purchase accounting		5			–			2
Reductions for:
Prior year tax positions		(37	)		(6	)		(13	)
Purchase accounting		–			–			(2	)
Settlements		(12	)		(1	)		(15	)
Lapse of statute of limitations		–			–			(3	)

Unrecognized tax benefits – 12/31	$	192		$	171		$	145

Open tax years by major jurisdiction

The following table summarizes the earliest open tax years by major jurisdiction:


JURISDICTION	EARLIEST OPEN YEAR
Austria		2004
Canada		2006
Germany		2000
Italy		2005
Netherlands		2006
Sweden		2005
United Kingdom		2008
United States		2007

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2010

Earning Per Share (Tables) [Abstract]

Earnings Per Share

A reconciliation of the data used in the calculation of basic and diluted earnings per share computations for income from continuing operations is as follows:


	2010		2009		2008
Income from continuing operations	$	654	$	641	$	768
Weighted average common shares outstanding		182.3		181.0		180.7
Add: Weighted average restricted stock awards outstanding^(a)		1.6		1.5		1.2

Basic weighted average common shares outstanding		183.9		182.5		181.9
Add: Dilutive impact of stock options		1.4		1.4		2.1

Diluted weighted average common shares outstanding		185.3		183.9		184.0
Basic earnings per share	$	3.55	$	3.51	$	4.22
Diluted earnings per share	$	3.53	$	3.49	$	4.17


(a)	Restricted stock awards containing rights to non-forfeitable dividends which participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.

Shares underlying stock options excluded from the computation of diluted earnings per share because they were anti-dilutive were as follows:


	2010		2009		2008
Anti-dilutive stock options		2.1		1.7		4.1
Average exercise price	$	54.37	$	54.49	$	49.29

Years of expiration		2012-		2012-		2012-
		2020		2016		2015

Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2010

Receivables, Net (Tables) [Abstract]

Receivables, Net


	2010			2009
Trade accounts receivable	$	1,579		$	1,379
Unbilled contract receivable		367			373
Other		47			56

Receivables, gross		1,993			1,808
Allowance for doubtful accounts		(42	)		(48	)
Allowance for cash discounts		(7	)		(6	)

Receivables, net	$	1,944		$	1,754

Rollforward of the allowance for doubtful accounts

The following table displays an aggregate rollforward of the allowance for doubtful accounts, for the years ended December 31, 2010 and 2009.


	2010			2009
Allowance for doubtful accounts – 1/1	$	48		$	33
Additions charged to expense		5			24
Write-offs		(9	)		(8	)
Foreign currency and other		(2	)		(1	)

Allowance for doubtful accounts – 12/31	$	42		$	48

Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2010

Inventories, Net (Tables) [Abstract]

Inventories, Net


	2010			2009
Finished goods	$	231		$	176
Work in process		88			57
Raw materials		317			253

		636			486
Inventoried costs related to long-term contracts		296			391
Less — progress payments		(76	)		(75	)

Inventoried costs related to long-term contracts, net		220			316

Inventories, net	$	856		$	802

Other Current and Non-Current Assets (Tables)

12 Months Ended

Dec. 31, 2010

Other Current and Non-Current Asset (Tables) [Abstract]

Other Current and Non-Current Asset


	2010		2009
Current deferred income taxes	$	280	$	232
Asbestos-related current assets		105		62
Assets of discontinued operations		–		141
Other		177		144

Other current assets	$	562	$	579

Other employee benefit-related assets	$	106	$	87
Capitalized software costs		118		65
Other		88		100

Other non-current assets	$	312	$	252

Plant, Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2010

Plant, Property and Equipment, Net [Abstract]

Plant, Property and Equipment, Net


	2010			2009
Land and improvements	$	59		$	57
Buildings and improvements		642			609
Machinery and equipment		1,809			1,688
Equipment held for lease or rental		132			72
Furniture, fixtures and office equipment		231			220
Construction work in progress		160			157
Other		29			22

Plant, property and equipment, gross		3,062			2,825
Less — accumulated depreciation		(1,857	)		(1,775	)

Plant, property and equipment, net	$	1,205		$	1,050

Goodwill and Other Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2010

Goodwill and Other Intangible Assets, Net (Tables) [Abstract]

Changes in the carrying amount of goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2010 and 2009 by business segment are as follows:


							MOTION &
	DEFENSE			FLUID			FLOW			TOTAL
Goodwill — 1/1/2009	$	2,134		$	1,122		$	499		$	3,755
Goodwill acquired		–			17			–			17
Foreign currency		–			26			2			28
Other		(2	)		–			(10	)		(12	)

Goodwill — 12/31/2009	$	2,132		$	1,165		$	491		$	3,788
Goodwill acquired		24			495			–			519
Foreign currency		–			(25	)		(6	)		(31	)
Other		–			1			–			1

Goodwill — 12/31/2010	$	2,156		$	1,636		$	485		$	4,277

Other intangible assets

Information regarding our other intangible assets is as follows:


	GROSS
	CARRYING		ACCUMULATED			NET
	AMOUNT		AMORTIZATION			INTANGIBLES
Customer and distributor relationships	$	855	$	(312	)	$	543
Proprietary technology		109		(35	)		74
Trademarks		35		(10	)		25
Patents and other		32		(18	)		14
Indefinite-lived intangibles		110		—			110

Intangibles – 12/31/2010	$	1,141	$	(375	)	$	766

Customer and distributor relationships	$	625	$	(236	)	$	389
Proprietary technology		84		(29	)		55
Trademarks		35		(8	)		27
Patents and other		27		(15	)		12
Indefinite-lived intangibles		18		–			18

Intangibles – 12/31/2009	$	789	$	(288	)	$	501

Estimated amortization expense related to intangible assets

Estimated amortization expense for each of the five succeeding years is as follows:


2011	2012		2013		2014		2015
$87	$	77	$	60	$	55	$	52

Accrued Liabilities and Other Non-Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2010

Accrued Liabilities and Other Non-Current Liabilities (Tables) [Abstract]

Accrued Liabilities and Other Non-Current Liabilities, Net


	2010		2009
Compensation and other employee-benefits	$	604	$	578
Asbestos-related liability		117		66
Customer-related liabilities		91		55
Accrued warranty costs		72		67
Accrued income taxes		63		103
Environmental and other legal matters		33		44
Accrued restructuring costs		32		53
Deferred income tax liability		12		36
Liabilities of discontinued operations		–		44
Other accrued liabilities		238		230

Accrued liabilities	$	1,262	$	1,276

Deferred income taxes and other tax-related accruals	$	179	$	174
Environmental		128		128
Compensation and other employee-related benefits		117		123
Product liability, guarantees and other legal matters		52		63
Other		66		53

Other non-current liabilities	$	542	$	541

Leases And Rentals (Tables)

12 Months Ended

Dec. 31, 2010

Leases And Rentals (Tables) [Abstract]

Future minimum operating lease payments under long-term operating leases


2011	$	143
2012		115
2013		90
2014		70
2015		53
2016 and thereafter		183

Total minimum lease payments	$	654

Debt (Tables)

12 Months Ended

Dec. 31, 2010

Debt (Tables) [Abstract]

Debt


	2010			2009
Commercial paper	$	–		$	55
Short-term loans		1			10
Current maturities of long-term debt and other		10			10

Short-term debt and current maturities of long-term debt		11			75

Non-current maturities of long-term debt		1,314			1,392
Non-current capital leases		3			4
Deferred gain on interest rate swaps		45			50
Unamortized discounts and debt issuance costs		(8	)		(15	)

Long-term debt		1,354			1,431

Total debt	$	1,365		$	1,506

Carrying and fair value of long-term outstanding notes and debentures by maturity


				2010				2009

	Interest			Carrying		Fair		Carrying		Fair
	Rate			Value		Value		Value		Value
MATURITY DATE:
May 2011		6.50	%	$	–	$	–	$	32	$	32
July 2011		7.50	%		–		–		37		40
May 2014		4.90	%		500		538		500		515
May 2019		6.125	%		500		553		500		521
November 2025		7.40	%		250		311		250		285
August 2048		(a	)		1		1		1		1
December 2010 – 2014		4.70	%		66		69		74		76
Various 2010 – 2022		(b	)		11		11		12		12

				$	1,328	$	1,483	$	1,406	$	1,482


(a)	Variable rate debt with an interest rate of 0.19% as of December 31, 2010 and 0.16% as of December 31, 2009.


(b)	Includes individually immaterial notes, bonds and capital leases. The weighted average interest rate was 4.86% and 5.24% at December 31, 2010 and 2009, respectively.

Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2010

Postretirement Benefit Plans (Tables) [Abstract]

Balance Sheet and Income Statement Items


	2010									2009

				Other									Other
	Pension			Benefits			Total			Pension			Benefits			Total
Fair value of plan assets	$	4,622		$	275		$	4,897		$	4,308		$	247		$	4,555
Projected benefit obligation		(5,960	)		(722	)		(6,682	)		(5,700	)		(701	)		(6,401	)

Funded status	$	(1,338	)	$	(447	)	$	(1,785	)	$	(1,392	)	$	(454	)	$	(1,846	)

Amounts reported within:
Other non-current assets	$	20		$	–		$	20		$	16		$	–		$	16
Accrued liabilities		(24	)		(48	)		(72	)		(25	)		(49	)		(74	)
Non-current liabilities		(1,334	)		(399	)		(1,733	)		(1,383	)		(405	)		(1,788	)


	2010							2009

			Other							Other
	Pension		Benefits			Total		Pension		Benefits			Total
Net actuarial loss	$	1,986	$	162		$	2,148	$	2,034	$	162		$	2,196
Prior service cost (benefit)		29		(6	)		23		29		(8	)		21

Total		2,015		156			2,171	$	2,063	$	154		$	2,217

The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans for the years ended 2010 and 2009.


	2010									2009

	U.S.			Int’l			Total			U.S.			Int’l			Total
Change in benefit obligation
Benefit obligation – 1/1	$	5,173		$	527		$	5,700		$	4,886		$	437		$	5,323
Service cost		108			15			123			88			11			99
Interest cost		299			29			328			302			27			329
Amendments / other		4			–			4			2			1			3
Actuarial loss		133			31			164			247			40			287
Benefits paid		(353	)		(27	)		(380	)		(352	)		(31	)		(383	)
Liabilities assumed through acquisition		–			29			29			–			–			–
Foreign currency translation		–			(8	)		(8	)		–			42			42

Benefit obligation – 12/31	$	5,364		$	596		$	5,960		$	5,173		$	527		$	5,700

The following table provides a rollforward of the projected benefit obligations for our other employee-related benefit plans for the years ended 2010 and 2009.


	2010			2009
Change in benefit obligation
Benefit obligation – 1/1	$	701		$	703
Service cost		6			7
Interest cost		40			42
Amendments / other		–			(12	)
Actuarial loss		22			7
Benefits paid		(47	)		(46	)

Benefit obligation – 12/31	$	722		$	701

The following table provides a rollforward of the pension plan assets and the ending funded status for our U.S. and international pension plans for the years ended 2010 and 2009.


	2010									2009

	U.S.			Int’l			Total			U.S.			Int’l			Total
Change in plan assets
Plan assets – 1/1	$	4,011		$	297		$	4,308		$	3,392		$	219		$	3,611
Actual return on plan assets		525			25			550			772			52			824
Employer contributions		58			18			76			150			11			161
Employee contributions		–			1			1			–			2			2
Benefits paid		(322	)		(5	)		(327	)		(303	)		(16	)		(319	)
Assets acquired through acquisition		–			21			21			–			–			–
Foreign currency translation		–			(7	)		(7	)		–			29			29

Plan assets – 12/31	$	4,272		$	350		$	4,622		$	4,011		$	297		$	4,308

Funded status at end of year	$	(1,092	)	$	(246	)	$	(1,338	)	$	(1,162	)	$	(230	)	$	(1,392	)

The following table provides a rollforward of the other employee-related benefit plan assets and the ending funded status for the years ended 2010 and 2009.


	2010			2009
Change in plan assets
Plan assets – 1/1	$	247		$	205
Actual return on plan assets		33			47
Benefits paid		(5	)		(5	)

Plan assets – 12/31	$	275		$	247

Funded status at end of year	$	(447	)	$	(454	)

Pension plans with an accumulated benefit obligation in excess of plan assets


	2010		2009
Projected benefit obligation	$	5,683	$	5,465
Accumulated benefit obligation		5,381		5,171
Fair value of plan assets		4,325		4,058

Net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of pension plans and other employee related benefit plans

Income Statement Information


	2010									2009									2008
	U.S.			Int’l			Total			U.S.			Int’l			Total			U.S.			Int’l			Total
Net periodic benefit cost
Service cost	$	108		$	15		$	123		$	88		$	11		$	99		$	85		$	14		$	99
Interest cost		299			29			328			302			27			329			294			31			325
Expected return on plan assets		(414	)		(24	)		(438	)		(412	)		(21	)		(433	)		(421	)		(24	)		(445	)
Amortization of net actuarial loss		72			3			75			46			2			48			14			3			17
Amortization of prior service cost		4			–			4			4			–			4			4			–			4

Net periodic benefit cost (income)		69			23			92			28			19			47			(24	)		24			–

Effect of curtailment		1			–			1			3			–			3			–			–			–

Total net periodic benefit cost (income)		70			23			93			31			19			50			(24	)		24			–

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)		8			19			27			(151	)		13			(138	)		2,018			41			2,059
Prior service cost		4			–			4			6			1			7			–			–			–
Amortization of net actuarial loss		(72	)		(3	)		(75	)		(46	)		(2	)		(48	)		(14	)		(3	)		(17	)
Amortization of prior service cost		(4	)		–			(4	)		(4	)		–			(4	)		(4	)		–			(4	)

Total change recognized in other comprehensive income		(64	)		16			(48	)		(195	)		12			(183	)		2,000			38			2,038

Total impact from net periodic benefit cost and changes in other comprehensive income	$	6		$	39		$	45		$	(164	)	$	31		$	(133	)	$	1,976		$	62		$	2,038

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss)


	2010			2009			2008
Net periodic benefit cost
Service cost	$	6		$	7		$	8
Interest cost		40			42			42
Expected return on plan assets		(22	)		(18	)		(28	)
Amortization of net actuarial loss		11			15			4
Amortization of prior service (credit) cost		(2	)		4			3

Net periodic benefit cost		33			50			29

Effect of curtailment		—			(1	)		—

Total net periodic benefit cost		33			49			29

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)		11			(23	)		90
Prior service credit		—			(10	)		(3	)
Amortization of net actuarial loss		(11	)		(15	)		(4	)
Amortization of prior service credit (cost)		2			(4	)		(3	)

Total changes recognized in other comprehensive income		2			(52	)		80

Total impact from net periodic benefit cost and changes in other comprehensive income	$	35		$	(3	)	$	109

Net loss and prior service cost that will be amortized from accumulated other comprehensive loss

The following table provides the estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2011.


			Other
	Pension		Benefits			Total
Net actuarial loss	$	118	$	12		$	130
Prior service cost (credit)		4		(2	)		2

Total		122		10			132

Weighted-average assumptions used to determine benefit obligations

Postretirement Plan Assumptions

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our defined benefit pension plans.


	2010						2009
	U.S.			Int’l			U.S.			Int’l
Obligation Assumptions:
Discount rate		5.73	%		5.47	%		6.00	%		5.79	%
Rate of future compensation increase		4.00	%		3.26	%		4.00	%		3.87	%
Cost Assumptions:
Discount rate		6.00	%		5.79	%		6.25	%		6.14	%
Expected return on plan assets		9.00	%		7.33	%		9.00	%		7.29	%
Rate of future compensation increase		4.00	%		3.84	%		4.00	%		3.64	%

Weighted-average assumptions used to determine net periodic benefit cost

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to other employee-related benefit plans.


	2010			2009
Obligation Assumptions:
Discount rate		5.50	%		6.00	%
Rate of future compensation increase		4.00	%		4.00	%
Cost Assumptions:
Discount rate		6.00	%		6.25	%
Expected return on plan assets		9.00	%		9.00	%
Rate of future compensation increase		4.00	%		4.00	%

Actual versus the expected long-term returns for our domestic pension plans


	2010			2009			2008
Expected rate of return on plan assets		9.0	%		9.0	%		9.0	%
Actual rate of return on plan assets		14.1	%		24.1	%		(31.2	)%

Asset allocation range

The following table provides the actual asset allocations of these U.S. plans, as of December 31, 2010 and 2009, and the related asset allocation ranges by asset category.


							Allocation
	2010			2009			Range
Domestic equities		25	%		25	%		25%-75%
Alternative investments		47			47			20%-45%
International equities		18			17			10%-45%
Fixed income		2			4			0%-60%
Cash and other		8			7			0%-30%

Fair value of plan assets held by our postretirement benefit plans

The following table provides the fair value of plan assets held by our postretirement benefit plans, at December 31, 2010 and 2009, by asset class.


	2010																2009
	Pension								Other Benefits								Pension									Other Benefits

	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2			Level 3		Total		Level 1		Level 2			Level 3
Asset Category
Equities Securities:
Domestic	$	1,026	$	775	$	154	$	97	$	81	$	68	$	8	$	5	$	957	$	737	$	142		$	78	$	75	$	63	$	8		$	4
Developed markets		495		364		19		112		19		13		—		6		455		339		23			93		15		10		—			5
Emerging markets		447		194		217		36		24		10		12		2		397		158		211			28		20		8		11			1
ITT Stock		52		52		—		—		3		3		—		—		49		49		—			—		2		2		—			—

Subtotal – equity securities		2,020		1,385		390		245		127		94		20		13		1,858		1,283		376			199		112		83		19			10
Private equity:
Buyout funds^(a)		989		—		154		835		53		—		8		45		884		—		1			883		44		—		—			44
Distressed funds^(b)		230		—		—		230		12		—		—		12		181		—		—			181		9		—		—			9
Venture/growth equity funds^(c)		45		—		—		45		2		—		—		2		33		—		—			33		2		—		—			2
Mezzanine funds^(d)		33		—		—		33		2		—		—		2		28		—		—			28		1		—		—			1

Subtotal – private equity		1,297		—		154		1,143		69		—		8		61		1,126		—		1			1,125		56		—		—			56
Absolute return (hedge funds):
Fund of funds^(e)		290		—		58		232		15		—		2		13		319		—		57			262		15		—		2			13
Fixed income/multi-strat^(f)		354		—		162		192		19		—		9		10		319		—		146			173		16		—		7			9
Equity long/short^(g)		128		—		80		48		7		—		4		3		120		—		80			40		6		—		4			2
Macro^(h)		12		—		12		—		1		—		1		—		38		—		38			—		2		—		2			—

Subtotal – absolute return		784		—		312		472		42		—		16		26		796		—		321			475		39		—		15			24
Fixed Income:
Fixed income		184		8		176		—		18		—		10		8		231		13		218			—		23		1		14			8
Other:
Commodities		233		—		200		33		13		—		11		2		179		—		153			26		9		—		8			1
Cash and other, net		104		4		74		26		6		1		4		1		118		109		(6	)		15		8		7		(1	)		2

Subtotal – other		337		4		274		59		19		1		15		3		297		109		147			41		17		7		7			3

Total	$	4,622	$	1,397	$	1,306	$	1,919	$	275	$	95	$	69	$	111	$	4,308	$	1,405	$	1,063		$	1,840	$	247	$	91	$	55		$	101


(a)		Private equity buyout funds, included within postretirement benefit plan assets, are partnership investment vehicles that take a controlling interest primarily in private companies with the intent of developing them for future sale at a higher price to a strategic or financial buyer or through an initial public offering. These investments include $499 where ownership of the partnership interest is directly held and $442 invested through funds of private equity funds.


(b)		Private equity distressed funds are partnership investment vehicles that purchase debt or preferred equity instruments of companies that are distressed, near bankrupt or bankrupt.

(c)		Venture and growth equity private equity funds are partnership investment vehicles that provide seed or growth capital to start-ups and early stage companies, usually in high-growth industries, such as information and clean technology, health care and biotechnology.

(d)		Mezzanine private equity funds provide mezzanine loans to companies that need capital but do not want to sell or dilute their equity interests. Mezzanine loans are subordinated debt or preferred equity securities that represent a claim on the borrower’s assets which is senior to the common equity but subordinate to senior secured and unsecured debt.

(e)		Absolute return fund of funds include partnership investment vehicles that invest in a diversified portfolio of other hedge funds that employ a range of investment strategies.

(f)		Fixed income/multi-strat absolute return funds are partnership investment vehicles that invest in multiple investment strategies, such as macro, equity long/short, convertible arbitrage and event driven, often with the intent to diversify risk and reduce volatility.

(g)		Equity long/short absolute return funds include partnership investment vehicles that can purchase both long and short positions of publicly traded equities. Management of the fund has the ability to shift investments from value to growth strategies, from small to large capitalization companies, and from a net long position to a net short position.

(h)		Macro absolute return funds include partnership investment vehicles that make investments predicated on the managers views, either fundamentally or quantitatively derived, on different global factors, such as asset allocation (e.g., stocks vs. bonds) interest rates, currency, sovereign risk and commodities over a span of different time frames.

Fair value measurement pension plan and postretirement welfare

The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our pension plans using significant unobservable inputs (Level 3).


	Equity			Private			Absolute			Fixed
	Securities			Equity			Returns			Income			Other			Total
Level 3 balance – 12/31/08	$	274		$	988		$	783		$	40		$	126		$	2,211
Realized gains (losses), net		(1	)		26			3			–			1			29
Unrealized gains (losses), net		70			20			84			–			2			176
Purchases/(sales), net		5			89			(186	)		–			8			(84	)
Transfers in (out), net		(149	)		(1	)		(209	)		(40	)		(96	)		(495	)
Foreign currency translation		–			3			–			–			–			3

Level 3 balance – 12/31/09		199			1,125			475			–			41			1,840
Realized gains (losses), net		–			85			8			–			–			93
Unrealized gains (losses), net		41			46			30			–			2			119
Purchases/(sales), net		4			13			(41	)		–			17			(7	)
Transfers in (out), net		–			(124	)		–			–			–			(124	)
Foreign currency translation		1			(2	)		–			–			(1	)		(2	)

Level 3 balance – 12/31/10	$	245		$	1,143		$	472		$	–		$	59		$	1,919


	Equity			Private			Absolute			Fixed
	Securities			Equity			Returns			Income			Other			Total
Level 3 balance – 12/31/08	$	14		$	50		$	40		$	10		$	6		$	120
Realized gains (losses), net		–			1			–			1			–			2
Unrealized gains (losses), net		4			1			4			–			–			9
Purchases/(sales), net		–			4			(9	)		(1	)		1			(5	)
Transfers in (out), net		(8	)		–			(11	)		(2	)		(4	)		(25	)

Level 3 balance – 12/31/09		10			56			24			8			3			101
Realized gains (losses), net		–			5			–			–			–			5
Unrealized gains (losses), net		3			6			4			–			–			13
Purchases/(sales), net		–			1			(2	)		–			–			(1	)
Transfers in (out), net		–			(7	)		–			–			–			(7	)

Level 3 balance – 12/31/10	$	13		$	61		$	26		$	8		$	3		$	111

Estimated Future Benefit Payments

Estimated Future Benefit Payments


			Other
	Pension		Benefits
2011	$	368	$	53
2012		375		54
2013		383		55
2014		391		56
2015		402		56
2016 – 2020		2,162		289

Long-Term Incentive Employee Compensation (Tables)

12 Months Ended

Dec. 31, 2010

Long-Term Incentive Employee Compensation (Tables) [Abstract]

Long-Term Incentive Employee Compensation


	2010			2009		2008
Compensation costs on equity-based awards	$	28		$	29	$	31
Compensation costs on liability-based awards		(5	)		5		24

Total compensation costs, pre-tax	$	23		$	34	$	55

Future tax benefit	$	7		$	10	$	18

Status of stock option and restricted stock shares

A summary of the status of our NQOs as of December 31, 2010, 2009 and 2008 and changes during the years then ended is presented below.


	2010					2009					2008
				WEIGHTED-					WEIGHTED-					WEIGHTED-
				AVERAGE					AVERAGE					AVERAGE
				EXERCISE					EXERCISE					EXERCISE
STOCK OPTIONS	SHARES			PRICE		SHARES			PRICE		SHARES			PRICE
Outstanding – 1/1		8.1		$	40.29		8.1		$	39.83		8.7		$	38.13
Granted		0.7			53.30		0.9			33.59		0.6			53.57
Exercised		(1.1	)		31.45		(0.8	)		26.32		(1.0	)		32.82
Canceled or expired		(0.3	)		48.78		(0.1	)		45.94		(0.2	)		44.31

Outstanding – 12/31		7.4		$	42.54		8.1		$	40.29		8.1		$	39.83

Options exercisable – 12/31		5.9		$	41.86		6.4		$	39.49		6.8		$	37.02

Share Based Compensation, Summary of stock options

The following table summarizes information about ITT’s stock options at December 31, 2010:


		OPTIONS OUTSTANDING								OPTIONS EXERCISABLE
				WEIGHTED-									WEIGHTED-
				AVERAGE		WEIGHTED-							AVERAGE		WEIGHTED-
				REMAINING		AVERAGE		AGGREGATE					REMAINING		AVERAGE		AGGREGATE
RANGE OF EXERCISE				CONTRACTUAL		EXERCISE		INTRINSIC					CONTRACTUAL		EXERCISE		INTRINSIC
PRICES		NUMBER		LIFE (IN YEARS)		PRICE		VALUE		NUMBER			LIFE (IN YEARS)		PRICE		VALUE
$	10-$20		0.1		–	$	18.44	$	3		0.1			–	$	18.44	$	3
$	20-$30		0.4		1.0		25.37		12		0.4			1.0		25.37		11
$	30-$40		2.6		3.4		34.43		45		2.0			2.9		34.79		34
$	40-$50		2.2		1.6		45.05		16		2.2			1.5		45.03		16
$	50-$60		2.0		5.0		54.18		–		1.2			2.9		54.77		–
$	60-$70		0.1		4.0		66.83		–		–	^(a)		3.9		67.16		–

			7.4		3.1		42.54	$	76		5.9			2.2		41.86	$	64


(a)		Amount rounds to less than 0.1

weighted average assumptions

The following are weighted-average assumptions for 2010, 2009 and 2008:


	2010			2009			2008
Dividend yield		1.88	%		2.54	%		1.31	%
Expected volatility		27.06	%		38.77	%		28.69	%
Expected life (in years)		7.0			4.7			4.7
Risk-free rates		3.06	%		2.20	%		2.31	%
Weighted-average grant date fair value	$	14.50		$	9.60		$	13.46

Restricted shares and restricted stock unit awards granted with fair market values

The table below provides a rollforward of outstanding restricted stock for each of the previous three years ended.


	2010					2009					2008
				WEIGHTED					WEIGHTED					WEIGHTED
				AVERAGE					AVERAGE					AVERAGE
				GRANT					GRANT					GRANT
				DATE					DATE					DATE
RESTRICTED STOCK	SHARES			FAIR VALUE		SHARES			FAIR VALUE		SHARES			FAIR VALUE
Outstanding – 1/1		1.7		$	44.36		1.5		$	51.96		1.3		$	50.93
Granted		0.5			53.25		0.7			33.88		0.4			53.57
Lapsed		(0.4	)		54.44		(0.4	)		52.83		(0.1	)		45.76
Canceled		(0.1	)		44.75		(0.1	)		54.94		(0.1	)		55.89

Outstanding – 12/31		1.7		$	44.81		1.7		$	44.36		1.5		$	51.96

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies (Tables) [Abstract]

Roll forward of asbestos claims

Activity related to these asserted asbestos claims during the period was as follows:


	2010^(b)			2009
Pending claims^(a) – 1/1		104,679			103,006
New claims		5,865			4,274
Settlements		(991	)		(1,081	)
Dismissals		(6,469	)		(4,728	)
Adjustment^(c)		491			3,208

Pending claims^(a) – 12/31		103,575			104,679


(a)	We had previously indicated that 34,869 claims related to maritime actions, almost all of which were filed in the United States District Court for the Northern District of Ohio, were not included in the count of asserted claims because the Company believed they would not be litigated. In August 2010, these cases were dismissed.

(b)


(c)	Reflects an adjustment to increase the number of open claims as a result of transitioning claims data from our primary insurance companies to an internal database.

Net asbestos charges

For the full year 2010 and 2009, the net asbestos charge can be summarized as follows:


	2010						2009
	Pre-tax			After-tax			Pre-tax		After-tax
Continuing operations	$	385		$	247		$	238	$	148
Discontinued operations		(10	)		(6	)		9		6

Total	$	375		$	241		$	247	$	154

Roll forward of asbestos liability and related assets

The following table provides a rollforward of the estimated total asbestos liability and related assets for the years ended December 31, 2010 and 2009, respectively.


	2010									2009
	Liability			Asset			Net			Liability			Asset			Net
Balance as of January 1	$	933		$	666		$	267		$	228		$	201		$	27
Changes in estimate during the period:
Continuing operations		591			206			385			700			462			238
Discontinued operations		217			227			(10	)		67			58			9
Net cash activity		(54	)		(54	)		—			(62	)		(55	)		(7	)
Other adjustments		(11	)		(11	)		—			—			—			—

Balance as of December 31	$	1,676		$	1,034		$	642		$	933		$	666		$	267

Roll forward of accrued environmental liabilities

The following table illustrates the activity related to our accrued liabilities for these environmental matters.


	2010			2009
Environmental liability – 1/1	$	140		$	135
Accruals added during the period		—			1
Change in estimates for pre-existing accruals		14			18
Payments		(15	)		(14	)

Environmental liability – 12/31	$	139		$	140

Range of environmental liability and number of active sites for environmental matters

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


	2010		2009
Low-end range	$	117	$	113
High end range	$	251	$	249
Number of active environmental investigation and remediation sites		99		98

Guarantees,Indemnities and Warranties (Tables)

12 Months Ended

Dec. 31, 2010

Guarantees, Indemnities and Warranties (Tables) [Abstract]

Changes in product warranty accrual

The table included below provides changes in the product warranty accrual for December 31, 2010 and 2009.


	2010			2009
Warranty accrual – 1/1	$	67		$	57
Warranty expense		43			38
Payments		(39	)		(29	)
Other		1			1

Warranty accrual – 12/31	$	72		$	67

Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2010

Business Segment Information (Tables) [Abstract]

Business Segment Information


	2010								2009								2008
	PRODUCT			SERVICE		TOTAL			PRODUCT			SERVICE		TOTAL			PRODUCT			SERVICE		TOTAL
	REVENUE			REVENUE		REVENUE			REVENUE			REVENUE		REVENUE			REVENUE			REVENUE		REVENUE
Defense	$	3,602		$	2,295	$	5,897		$	3,788		$	2,279	$	6,067		$	3,925		$	2,139	$	6,064
Fluid		3,475			195		3,670			3,220			143		3,363			3,693			148		3,841
Motion & Flow		1,430			11		1,441			1,245			8		1,253			1,575			8		1,583
Eliminations		(13	)		—		(13	)		(9	)		—		(9	)		(12	)		—		(12	)

Total	$	8,494		$	2,501	$	10,995		$	8,244		$	2,430	$	10,674		$	9,181		$	2,295	$	11,476


	OPERATING INCOME									OPERATING MARGIN
	2010			2009			2008			2010			2009			2008
Defense	$	752		$	761		$	715			12.8	%		12.5	%		11.8	%
Fluid		479			393			469			13.1	%		11.7	%		12.2	%
Motion & Flow		179			118			192			12.4	%		9.4	%		12.1	%
Corporate and Other		(510	)		(378	)		(178	)		—			—			—

Total	$	900		$	894		$	1,198			8.2	%		8.4	%		10.4	%


					PLANT, PROPERTY										DEPRECIATION AND
	TOTAL ASSETS				& EQUIPMENT, NET				CAPITAL EXPENDITURES						AMORTIZATION
	2010		2009		2010		2009		2010		2009		2008		2010		2009		2008
Defense	$	4,149	$	4,153	$	434	$	402	$	107	$	115	$	87	$	134	$	154	$	147
Fluid		4,077		2,930		518		393		109		74		81		100		73		69
Motion & Flow		1,350		1,323		230		235		52		56		64		53		57		56
Corporate and Other		2,862		2,723		23		20		60		26		16		10		5		2

Total	$	12,438	$	11,129	$	1,205	$	1,050	$	328	$	271	$	248	$	297	$	289	$	274

Business segment information by geographical information


							PLANT, PROPERTY
	REVENUE^(a)						& EQUIPMENT, NET
Geographic Information	2010		2009		2008		2010		2009
United States	$	7,305	$	7,362	$	7,779	$	739	$	603
Western Europe		1,970		1,814		2,098		305		317
Asia Pacific		663		577		604		70		65
Other		1,057		921		995		91		65

Total	$	10,995	$	10,674	$	11,476	$	1,205	$	1,050


(a)	Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery.

Revenue by product category, net of intercompany balances

The following table provides revenue by product category, net of intercompany balances.


	2010		2009		2008
Defense segment:
Defense products	$	3,600	$	3,785	$	3,924
Defense services		2,295		2,279		2,139
Fluid segment:
Pumps & complementary products and services		3,667		3,363		3,840
Motion & Flow segment:
Automotive and rail equipment		552		495		567
Connectors equipment		405		335		445
Aerospace products		127		117		134
Other products		349		300		427

Total	$	10,995	$	10,674	$	11,476

Summary of Significant Accounting Policies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Summary of Significant Accounting Policies (Textuals) [Abstract]
Marketable securities Included within cash and cash equivalents	$ 0	$ 72
Percentage U.S. government bears to the total gross accounts receivable	24.00%	18.00%
Percentage of LIFO inventory as compare to total inventory	7.10%	6.40%
Intangible assets with a finite life amortized on a straight-line basis estimated useful life minimum	15
Intangible assets with a finite life amortized on a straight-line basis estimated useful life maximum	20
Tax benefits recognized in the Consolidated Financial Statements from uncertain tax positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement	Tax benefits recognized in the Consolidated Financial Statements from uncertain tax positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement
Time over which accrued for current pending claims and unasserted claims to be filed	next 10 years
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Buildings and improvements useful life, minimum	2
Buildings and improvements useful life, maximum	10
Furniture and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Buildings and improvements useful life, minimum	3
Buildings and improvements useful life, maximum	7
Property, Plant and Equipment, Other Types [Member]
Property, Plant and Equipment [Line Items]
Buildings and improvements useful life, minimum	5
Buildings and improvements useful life, maximum	40
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Buildings and improvements useful life, minimum	5
Buildings and improvements useful life, maximum	40

Acquisitions (Details) - USD ($) $ in Millions	12 Months Ended
Acquisitions (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007	Mar. 23, 2010
2009 And 2008 Acquisitions (Textuals) [Abstract]
Net of cash acquired, on acquisitions	$ 1,041	$ 34	$ 276	$ 226
Nova Analytics [Member]
Acquisitions (Textuals) [Abstract]
Purchase price of net of cash acquired					$ 385
Acquired percentage					100.00%
Aggregate Fair Value of Other Assets Acquired					$ 70
Aggregate Fair Value of Liabilities Assumed					81
Goodwill Acquired on Acquisition					232
Nova Analytics [Member] \| Proprietary technology [Member]
Acquisitions (Textuals) [Abstract]
Aggregate fair value of finite-lived intangibles					10
Nova Analytics [Member] \| Distributor and customer relationships [Member]
Acquisitions (Textuals) [Abstract]
Aggregate fair value of finite-lived intangibles					112
Nova Analytics [Member] \| Trademarks [Member]
Acquisitions (Textuals) [Abstract]
Aggregate fair value of finite-lived intangibles					$ 42

Acquisitions (Details 1) - USD ($) $ in Millions	12 Months Ended
Acquisitions (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Acquisitions (Textuals) [Abstract]
Acquisitions, net of cash acquired	$ (1,041)	$ (34)	$ (276)	$ (226)
Laing GmbH [Member]
Acquisitions (Textuals) [Abstract]
Acquisitions, net of cash acquired		$ 34

Acquisitions (Details 2) - Godwin Pumps [Member] $ in Millions	Aug. 03, 2010 USD ($)
Acquisitions (Textuals) [Abstract]
Purchase price of net of cash acquired	$ 580
Acquired percentage	100.00%
Aggregate Fair Value of Other Assets Acquired	$ 191
Aggregate Fair Value of Liabilities Assumed	30
Goodwill Acquired on Acquisition	252
Proprietary technology [Member]
Acquisitions (Textuals) [Abstract]
Aggregate fair value of finite-lived intangibles	14
Distributor and customer relationships [Member]
Acquisitions (Textuals) [Abstract]
Aggregate fair value of finite-lived intangibles	107
Trademarks [Member]
Acquisitions (Textuals) [Abstract]
Aggregate fair value of finite-lived intangibles	$ 46

Discontinued Operations (Details) - USD ($) $ in Millions	12 Months Ended
Discontinued Operations (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Defense Segment component classified as held for sale and reported as discontinued operations
Revenue (third party)	$ 160	$ 231	$ 218
Pre-tax operating income	13	15	12
Assets and liabilities reported as held for sale
Receivables, net		43
Plant, property and equipment, net		1
Goodwill		76
Other intangible assets, net		18
Deferred income taxes		2
Other assets		1
Total assets of discontinued operations		141
Accounts payable		19
Accrued expenses		17
Deferred income taxes		8
Total liabilities of discontinued operations		44
Discontinued Operations (Textuals) [Abstract]
Recognition of afert-tax gain/ (loss)	130
Tax benefit on gain on sale of discontinued operation	4
Proceeds from the sale of CAS	$ 237
Proceeds from the sale of assets and businesses		$ 20	$ 22

Restructuring and Asset Impairment Charges (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2008	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Restructuring Costs
Severance charges		$ 47	$ 71	$ 66
Other restructuring charges		10	11	10
Reversal of restructuring accruals		(5)	(3)	(2)
Total net restructuring charge	$ 64	52	79	74
Asset impairment charge		1	0	3
Total net restructuring and impairment charge		53	79	77
Defense [Member]
Restructuring Costs
Total net restructuring charge		33	5	11
Fluid [Member]
Restructuring Costs
Total net restructuring charge		14	37	34
Motion and Flow [Member]
Restructuring Costs
Total net restructuring charge		5	37	30
Corporate and Other [Member]
Restructuring Costs
Total net restructuring charge		$ 1	$ 0	$ 2

Restructuring and Asset Impairment Charges (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Rollforward of the restructuring accruals
Restructuring accruals - 1/1	$ 53	$ 58
Charges for plans initiated during the year	50	71
Charges for plans initiated in prior years	7	11
Cash payments	(70)	(82)
Asset write-offs	(1)	(2)
Reversal of restructuring accruals	(5)	(3)	$ (2)
Foreign exchange translation and other	(2)	0
Restructuring accruals - 12/31	32	53	$ 58
Defense [Member]
Rollforward of the restructuring accruals
Restructuring accruals - 1/1	4
Restructuring accruals - 12/31	17	4
Fluid [Member]
Rollforward of the restructuring accruals
Restructuring accruals - 1/1	18
Restructuring accruals - 12/31	7	18
Motion and Flow [Member]
Rollforward of the restructuring accruals
Restructuring accruals - 1/1	31
Restructuring accruals - 12/31	8	31
Corporate and Other [Member]
Rollforward of the restructuring accruals
Restructuring accruals - 1/1	0
Restructuring accruals - 12/31	0	0
Severance accrual [Member]
Rollforward of the restructuring accruals
Restructuring accruals - 1/1	46
Restructuring accruals - 12/31	26	46
Facility Carrying and Other Cost [Member]
Rollforward of the restructuring accruals
Restructuring accruals - 1/1	7
Restructuring accruals - 12/31	$ 6	$ 7

Restructuring and Asset Impairment Charges (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Planned Headcount Reductions
Beginning Balance	$ 407	$ 510
Additional planned reductions	1,265	1,125
Actual reductions	(1,488)	(1,228)
Ending Balance	$ 184	$ 407

Restructuring and Asset Impairment Charges (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Defense Segment Realignment Activities
Restructuring accruals - 1/1	$ 53	$ 58
Cash payments	(70)	(82)
Reversal of restructuring accruals	(5)	(3)	$ (2)
Foreign exchange translation and other	(2)	0
Restructuring accruals - 12/31	32	53	58
2010 Defense Segment Realignment Activities [Member]
Defense Segment Realignment Activities
Restructuring accruals - 1/1	0
Restructuring charges	28
Cash payments	(18)
Reversal of restructuring accruals	(1)
Foreign exchange translation and other	0
Restructuring accruals - 12/31	9	0
Fourth Quarter 2008 Reduction in Force Activities [Member]
Defense Segment Realignment Activities
Restructuring accruals - 1/1	8	46
Restructuring charges	0	8
Cash payments	(4)	(45)
Reversal of restructuring accruals	(1)	(1)
Foreign exchange translation and other	0	0
Restructuring accruals - 12/31	$ 3	$ 8	$ 46

Restructuring and Asset Impairment Charges (Details Textual) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2008 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Restructuring and Asset Impairment Charges (Textuals) [Abstract]
Total restructuring charges	$ 64	$ 52	$ 79	$ 74
2010 Defense Segment Realignment Activities [Member]
Restructuring and Asset Impairment Charges (Textuals) [Abstract]
Total headcount reduction		642
Reduction of factory workers		162
Reduction of office workers		457
Reduction of management employees		23
Estimated yield in annual net savings		$ 61
Fourth Quarter 2008 Reduction in Force Activities [Member]
Restructuring and Asset Impairment Charges (Textuals) [Abstract]
Total headcount reduction		1,257
Reduction of factory workers		601
Reduction of office workers		628
Reduction of management employees		28
Defense [Member]
Restructuring and Asset Impairment Charges (Textuals) [Abstract]
Total restructuring charges	11
Fluid [Member]
Restructuring and Asset Impairment Charges (Textuals) [Abstract]
Total restructuring charges	29
Motion and Flow [Member]
Restructuring and Asset Impairment Charges (Textuals) [Abstract]
Total restructuring charges	23
Corporate and Other [Member]
Restructuring and Asset Impairment Charges (Textuals) [Abstract]
Total restructuring charges	$ 1

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Income components:
United States	$ 352	$ 432	$ 651
International	466	378	425
Total pre-tax income	818	810	1,076
Current income tax provision:
United States - federal	152	129	160
United States - state and local	18	8	5
International	109	109	131
Total current income tax provision	279	246	296
Deferred income tax provision:
United States - federal	(112)	(45)	19
United States - state and local	(9)	(14)	(1)
International	6	(18)	(6)
Total deferred income tax provision	(115)	(77)	12
Total income tax expense	$ 164	$ 169	$ 308
Effective income tax expense rate	20.00%	20.90%	28.60%

Income Taxes (Details 1) $ in Millions	12 Months Ended
Income Taxes (Details 1) $ in Millions	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008
Reconciliation of the tax provision for continuing operations at the U.S. statutory rate
Tax provision at U.S. statutory rate	35.00%	35.00%	35.00%
International restructurings	0.00%	(7.10%)	0.00%
Foreign tax rate differential	(5.90%)	(4.40%)	(2.20%)
Effect of repatriation of foreign earnings	(3.10%)	(0.40%)	(0.40%)
State and local income tax	1.10%	(1.50%)	0.40%
Research credit	1.10%	(0.90%)	(0.30%)
Tax examinations	(0.014)	0	0
Domestic manufacturing deduction	(2.60%)	(1.30%)	(0.30%)
Tax account validation adjustment	0.00%	0.00%	(3.90%)
Other	2.00%	1.50%	0.30%
Effective income tax expense rate	20.00%	20.90%	28.60%
Deferred Tax Assets:
Employee benefits	$ 650	$ 736
Accruals	391	281
Loss carryforwards	148	200
Other	110	39
Subtotal	1,299	1,256
Valuation allowance	(116)	(150)
Net deferred tax assets	1,183	1,106
Deferred Tax Liabilities:
Intangibles	355	324
Accelerated depreciation	50	47
Investment	8	16
Total deferred tax liabilities	413	387
Deferred taxes in the Consolidated Balance Sheets
Current deferred income taxes	280	232
Non-current assets	554	583
Current liabilities	(12)	(36)
Other non-current liabilities	(52)	(54)
Deferred Taxes, Net	$ 770	$ 725

Income Taxes (Details 2) $ in Millions	12 Months Ended
Income Taxes (Details 2) $ in Millions	Dec. 31, 2010 USD ($)
Federal and state capital losses [Member]
Deferred tax asset attributes
Attribute amount	$ 29
First Year of Expiration	31-Dec-12
U.S. tax credits [Member]
Deferred tax asset attributes
Attribute amount	$ 22
First Year of Expiration	31-Dec-12
U.S. net operating losses [Member]
Deferred tax asset attributes
Attribute amount	$ 24
First Year of Expiration	31-Dec-20
State net operating losses [Member]
Deferred tax asset attributes
Attribute amount	$ 2,486
First Year of Expiration	31-Dec-11
Foreign net operating losses [Member]
Deferred tax asset attributes
Attribute amount	$ 343
First Year of Expiration	31-Dec-11

Income Taxes (Details 3) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

A reconciliation of the beginning and ending amount of uncertain tax positions

Unrecognized tax benefits - 1/1

$ 171

^[1]

$ 145

$ 103

Additions for:

Current year tax positions

Prior year tax positions

Purchase accounting

Reductions For

Prior year tax positions

(37)

(6)

(13)

Purchase accounting

(2)

Settlements

(12)

(1)

(15)

Lapse of statute of limitations

(3)

Unrecognized tax benefits - 12/31

$ 192

$ 171

^[1]

$ 145

Austria [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2004

Canada [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2006

Germany [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2000

Italy [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2005

Netherlands [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2006

Sweden [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2005

United Kingdom [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2008

United States [Member]

Open Tax Years By Major Jurisdiction [Line Items]

Open tax years by major jurisdiction

2007

[1]

We had previously indicated that 34,869 claims related to maritime actions, almost all of which were filed in the United States District Court for the Northern District of Ohio, were not included in the count of asserted claims because the Company believed they would not be litigated. In August 2010, these cases were dismissed.

Income Taxes (Details Textual) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Income Taxes (Textuals) [Abstract]
Accumulated undistributed foreign earnings	$ 1,865
Valuation allowance to reduce deferred income tax assets	116
Decrease in valuation allowance	34
Increase in valuation allowance attributable to foreign net operating loss carryforwards and foreign investments	12
Decrease in valuation allowance attributable to state net operating loss and credit	12
Decrease in valuation allowance attributable to US federal capital loss carry forwards	34
Excess tax benefits related to stock-based compensation	$ 9	$ 3
Likelihood of largest benefit of being realized upon ultimate settlement	greater than 50 % likelihood of largest benefit of being realized upon ultimate settlement
Unrecognized tax positions that would affect the effective tax rate	$ 90
Unrecognized tax benefits of deferred tax accounting that would not impact the annual effective rate but could accelerate the payment of cash to the taxing authority	96
Tax positions, attributable to discontinued operations that would not impact the annual effective tax rate	$ 6
Interest expense related to tax matter	less than 1
Interest income due to interest settlement claim		3
Payment of interest accrued	$ 23	23
Deferred tax liability related to discontinued operation		$ 6

Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Earnings Per Share

Income from continuing operations

$ 654,000,000

$ 641,000,000

$ 768,000,000

Weighted average common shares outstanding

182.3

181.0

180.7

Add: Weighted average restricted stock awards outstanding (a)

^[1]

1.6

1.5

1.2

Basic weighted average common shares outstanding

183.9

182.5

181.9

Add: Dilutive impact of stock options

1.4

2.1

Weighted average common shares - diluted

185.3

183.9

184.0

Basic EPS - continuing operations

$ 3.55

$ 3.51

$ 4.22

Diluted EPS from continuing operations

$ 3.53

$ 3.49

$ 4.17

Anti-dilutive stock options

2.1

1.7

4.1

Average exercise price

$ 54.37

$ 54.49

$ 49.29

Years of expiration

2012-2020

2012-2016

2012-2015

[1]	Restricted stock awards containing rights to non-forfeitable dividends which participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share.

Receivables, Net (Details) - USD ($) $ in Millions	12 Months Ended
Receivables, Net (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Receivables, Net
Trade accounts receivable	$ 1,579	$ 1,379
Unbilled contract receivables	367	373
Other	47	56
Receivables, gross	1,993	1,808
Allowance for doubtful accounts	(42)	(48)
Allowance for cash discounts	(7)	(6)
Receivables, net	1,944	1,754
Government [Member]
Receivables, Net (Textuals) [Abstract]
Outstanding accounts receivable balance from the U.S. Government	479	327
Allowance for Doubtful Accounts [Member]
Rollforward of the allowance for doubtful accounts
Allowance for doubtful accounts - 1/1	48	33
Additions charged to expense	5	24
Write-offs	(9)	(8)
Foreign currency and other	(2)	(1)
Allowance for doubtful accounts - 12/31	$ 42	$ 48

Inventories, Net (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Inventories, Net
Finished goods	$ 231	$ 176
Work in process	88	57
Raw materials	317	253
Inventory Gross Total	636	486
Inventoried costs related to long-term contracts	296	391
Less - progress payments	(76)	(75)
Inventoried costs related to long-term contracts, net	220	316
Inventories, net	$ 856	$ 802

Other Current and Non-Current Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other Current and Non-Current Assets
Current deferred income taxes	$ 280	$ 232
Asbestos-related current assets	105	62
Assets of discontinued operations	0	141
Other	177	144
Other current assets	562	579
Other employee benefit-related assets	106	87
Capitalized software costs	118	65
Other	88	100
Other non-current assets	312	252
Other Current and Non Current Assets (Textuals) [Abstract]
ITT sales to Unconsolidated Affiliates	51	44	$ 20
ITT purchases from unconsolidated affiliates	$ 22	$ 15

Plant, Property and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Plant, Property and Equipment, Net
Land and improvements	$ 59	$ 57
Buildings and improvements	642	609
Machinery and equipment	1,809	1,688
Equipment held for lease or rental	132	72
Furniture, fixtures and office equipment	231	220
Construction work in progress	160	157
Other	29	22
Plant, property and equipment, gross	3,062	2,825
Less - accumulated depreciation and amortization	(1,857)	(1,775)
Plant, property and equipment, net	1,205	1,050
Plant Property And Equipment, Net (Textuals) [Abstract]
Recognized depreciation expense	$ 190	$ 173	$ 179

Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Changes in Carrying Amount of Goodwill
Beginning Balance	$ 3,788	$ 3,755
Goodwill acquired	519	17
Foreign currency	(31)	28
Other	1	(12)
Ending Balance	4,277	3,788
Defense [Member]
Changes in Carrying Amount of Goodwill
Beginning Balance	2,132	2,134
Goodwill acquired	24	0
Foreign currency	0	0
Other	0	(2)
Ending Balance	2,156	2,132
Fluid [Member]
Changes in Carrying Amount of Goodwill
Beginning Balance	1,165	1,122
Goodwill acquired	495	17
Foreign currency	(25)	26
Other	1	0
Ending Balance	1,636	1,165
Motion and Flow [Member]
Changes in Carrying Amount of Goodwill
Beginning Balance	491	499
Goodwill acquired	0	0
Foreign currency	(6)	2
Other	0	(10)
Ending Balance	$ 485	$ 491

Goodwill and Other Intangible Assets, Net (Details 1) $ in Millions	12 Months Ended
	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Carrying Amount of Other Intangible Assets
Indefinite-lived intangible assets, gross carrying amount	$ 110	$ 18
Accumulated Amortization	0	0
Indefinite-lived intangible assets,net intangibles	110	18
Intangibles, Gross carrying amount	1,141	789
Intangibles, Accumulated amortization	(375)	(288)
Other intangible assets, net	766	501
Estimated amortization expense related to intangible assets
2011	87
2012	77
2013	60
2014	55
2015	52
Additional expenses related to goodwill and intangible assets
Goodwill disposed during the period	76
Amortization expense related to finite-lived intangible assets	90	101	$ 96
Distributor and customer relationships [Member]
Carrying Amount of Other Intangible Assets
Finite-lived intangible assets, gross carrying amount	855	625
Accumulated Amortization	(312)	(236)
Finite-lived intangible assets,net intangibles	$ 543	389
Goodwill and Other Intangible Assets, Net (Textuals) [Abstract]
Weighted average period (in years)	9
Proprietary technology [Member]
Carrying Amount of Other Intangible Assets
Finite-lived intangible assets, gross carrying amount	$ 109	84
Accumulated Amortization	(35)	(29)
Finite-lived intangible assets,net intangibles	$ 74	55
Goodwill and Other Intangible Assets, Net (Textuals) [Abstract]
Weighted average period (in years)	17
Patents and other [Member]
Carrying Amount of Other Intangible Assets
Finite-lived intangible assets, gross carrying amount	$ 32	27
Accumulated Amortization	(18)	(15)
Finite-lived intangible assets,net intangibles	$ 14	12
Goodwill and Other Intangible Assets, Net (Textuals) [Abstract]
Weighted average period (in years)	11
Trademarks [Member]
Carrying Amount of Other Intangible Assets
Finite-lived intangible assets, gross carrying amount	$ 35	35
Accumulated Amortization	(10)	(8)
Finite-lived intangible assets,net intangibles	$ 25	$ 27
Goodwill and Other Intangible Assets, Net (Textuals) [Abstract]
Weighted average period (in years)	15

Accrued Liabilities and Other Non-Current Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Accrued Liabilities and Other Non-Current Liabilities, Net
Compensation and other employee-benefits	$ 604	$ 578
Asbestos-related liability	117	66
Customer-related liabilities	91	55
Accrued warranty costs	72	67
Accrued income taxes	63	103
Environmental and other litigation matters	33	44
Accrued restructuring costs	32	53
Deferred income tax liability	12	36
Liabilities of discontinued operations	0	44
Other accrued liabilities	238	230
Accrued liabilities	1,262	1,276
Deferred income taxes and other tax-related accruals	179	174
Environmental	128	128
Compensation and other employee-related benefits	117	123
Product liability, guarantees and other legal matters	52	63
Other	66	53
Other non-current liabilities	$ 542	$ 541

Leases and Rentals (Details) - USD ($) $ in Millions	12 Months Ended
Leases and Rentals (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Future minimum operating lease payments under long-term operating leases
2011	$ 143
2012	115
2013	90
2014	70
2015	53
2016 and thereafter	183
Total minimum lease payments	654
Leases And Rentals (Textuals) [Abstract]
Rental expenses under operating leases	$ 132	$ 139	$ 131

Debt (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Debt
Commercial paper	$ 0	$ 55
Short-term loans	1	10
Current maturities of long-term debt and other	10	10
Short-term borrowings and current maturities of long-term debt	11	75
Non-current maturities of long-term debt	1,314	1,392
Non-current capital leases	3	4
Deferred gain on interest rate swaps	45	50
Unamortized discounts and debt issuance costs	(8)	(15)
Long-term debt	1,354	1,431
Total debt	$ 1,365	$ 1,506

Debt (Details 1) - USD ($) $ in Millions	12 Months Ended
Debt (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Carrying and fair value of long-term outstanding notes and debentures by maturity
Carrying Value of Notes and debentures:	$ 1,328	$ 1,406
Fair Value of Notes and debentures:	$ 1,483	1,482
6.5% Notes and Debentures due May 2011 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	May 2011
Interest Rate of Notes and debentures:	6.50%
Carrying Value of Notes and debentures:	$ 0	32
Fair Value of Notes and debentures:	$ 0	32
7.5% Notes and Debentures due July 2011 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	July 2011
Interest Rate of Notes and debentures:	7.50%
Carrying Value of Notes and debentures:	$ 0	37
Fair Value of Notes and debentures:	$ 0	40
4.9% Senior Notes due May 2014 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	41760
Interest Rate of Notes and debentures:	4.90%
Carrying Value of Notes and debentures:	$ 500	500
Fair Value of Notes and debentures:	$ 538	515
6.125% Senior Notes due May 2019 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	43586
Interest Rate of Notes and debentures:	6.125%
Carrying Value of Notes and debentures:	$ 500	500
Fair Value of Notes and debentures:	$ 553	521
7.4% Notes and Debentures due November 2025 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	November 2025
Interest Rate of Notes and debentures:	7.40%
Carrying Value of Notes and debentures:	$ 250	250
Fair Value of Notes and debentures:	$ 311	285
Notes and Debentures due August 2048 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	August 2048
Carrying Value of Notes and debentures:	$ 1	1
Fair Value of Notes and debentures:	$ 1	1
4.7% Notes and Debentures December 2010 to 2014 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	December 2010-2014
Interest Rate of Notes and debentures:	4.70%
Carrying Value of Notes and debentures:	$ 66	74
Fair Value of Notes and debentures:	$ 69	76
Notes and Debentures Various 2010 to 2022 [Member]
Carrying and fair value of long-term outstanding notes and debentures by maturity
Maturity Date of Notes and debentures:	Various 2010 – 2022
Carrying Value of Notes and debentures:	$ 11	12
Fair Value of Notes and debentures:	$ 11	$ 12

Debt (Details Textuals) $ in Millions	1 Months Ended	12 Months Ended
Debt (Details Textuals) $ in Millions	Aug. 31, 2010 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	May 31, 2009 USD ($)	Nov. 30, 1995 USD ($)
Additional Debt (Textuals) [Abstract]
Principal payment required in year one		$ 11
Principal payment required in year two		11
Principal payment required in year three		13
Principal payment required in year four		538
Principal payment required in year five		1
Principal payment required after five years		754
Book value of assets pledged as collateral		63
Obligations associated with agreement involving sale and the subsequent lease back of property		66
Proceeds from issuance of senior notes		$ 998
Number of years agreement involving sale and subsequent lease back of certain properties		10
End of agreement involving sale and subsequent lease back of certain properties		2,014
Amortization period of deferred gain on termination of interest rate swap		through 2025
Debt (Textuals) [Abstract]
Commitment Fee on revolving credit agreements	0.225% of total commitment
Line of credit facility interest coverage ratio		3.5
Senior note issued		$ 1,328	$ 1,406
Debt issuance costs		$ 6
Redemption price of Senior notes		Greater of either 100% of principal amount of note or the sum of the present value of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis at the Treasury Rate plus 50 basis points, plus in each case accrued and unpaid interest to the date of redemption
4.9% Senior Notes due May 2014 [Member]
Debt (Textuals) [Abstract]
Senior note issued		$ 500	500
Senior note issued				$ 500
6.125% Senior Notes due May 2019 [Member]
Debt (Textuals) [Abstract]
Senior note issued		$ 500	500
Senior note issued				$ 500
7.4% Senior Notes due November 2025 [Member]
Debt (Textuals) [Abstract]
Senior note issued					$ 250
Redemption price of Senior notes		Greater of (i) 100% of the principal amount of such 1995 Senior Notes and (ii) the sum of the present value of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis at the Treasury Rate plus 20 basis points, plus in each case accrued and unpaid interest to the date of redemption
Notes and Debentures due August 2048 [Member]
Debt (Textuals) [Abstract]
Senior note issued		$ 1	$ 1
Interest rate of variable rate debt		0.19%	0.16%
Notes and Debentures Various 2010 to 2022 [Member]
Debt (Textuals) [Abstract]
Senior note issued		$ 11	$ 12
Weighted average interest rate of other debt instruments due 2010 to 2022		4.86%	5.24%
Commercial Paper [Member]
Debt (Textuals) [Abstract]
Weighted average interest rate for outstanding commercial paper			0.21%
Line of credit facility One [Member]
Debt (Textuals) [Abstract]
Aggregate principal amount of three-year revolving credit agreement	$ 1,500
Line of credit facility Two [Member]
Debt (Textuals) [Abstract]
Aggregate principal amount of three-year revolving credit agreement	$ 1,750

Postretirement Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Summary of the funded status of postretirement benefit plans and the presentation of such balances within Consolidated Balance Sheet
Fair value of plan assets	$ 4,897	$ 4,555
Projected benefit obligation	(6,682)	(6,401)
Funded status	(1,785)	(1,846)
Other non-current assets	20	16
Accrued liabilities	(72)	(74)
Non-current liabilities	(1,733)	(1,788)
Amounts recognized in the Consolidated in accumulated other comprehensive loss
Net actuarial loss	2,148	2,196
Prior service cost (benefit)	23	21
Total	2,171	2,217
Net loss and prior service cost that will be amortized from accumulated other comprehensive
Net actuarial loss	130
Prior service cost (credit)	2
Total net loss and prior service cost	132
Pension plans with an accumulated benefit obligation in excess of plan assets
Projected benefit obligation	5,683	5,465
Accumulated benefit obligation	5,381	5,171
Fair value of plan assets	4,325	4,058
International Pension Plan [Member]
Summary of the funded status of postretirement benefit plans and the presentation of such balances within Consolidated Balance Sheet
Fair value of plan assets	350	297	$ 219
Projected benefit obligation	(596)	(527)	(437)
Funded status	(246)	(230)
Pension [Member]
Summary of the funded status of postretirement benefit plans and the presentation of such balances within Consolidated Balance Sheet
Fair value of plan assets	4,622	4,308	3,611
Projected benefit obligation	(5,960)	(5,700)	(5,323)
Funded status	(1,338)	(1,392)
Other non-current assets	20	16
Accrued liabilities	(24)	(25)
Non-current liabilities	(1,334)	(1,383)
Amounts recognized in the Consolidated in accumulated other comprehensive loss
Net actuarial loss	1,986	2,034
Prior service cost (benefit)	29	29
Total	2,015	2,063
Net loss and prior service cost that will be amortized from accumulated other comprehensive
Net actuarial loss	118
Prior service cost (credit)	4
Total net loss and prior service cost	122
Other Benefits [Member]
Summary of the funded status of postretirement benefit plans and the presentation of such balances within Consolidated Balance Sheet
Fair value of plan assets	275	247	205
Projected benefit obligation	(722)	(701)	$ (703)
Funded status	(447)	(454)
Other non-current assets	0	0
Accrued liabilities	(48)	(49)
Non-current liabilities	(399)	(405)
Amounts recognized in the Consolidated in accumulated other comprehensive loss
Net actuarial loss	162	162
Prior service cost (benefit)	(6)	(8)
Total	156	$ 154
Net loss and prior service cost that will be amortized from accumulated other comprehensive
Net actuarial loss	12
Prior service cost (credit)	(2)
Total net loss and prior service cost	$ 10
Fifteen year [Member]
Capital Asset Pricing Model (Texuals) [Abstract]
Geometric average annual return on plan assets	8.80%
Twenty year [Member]
Capital Asset Pricing Model (Texuals) [Abstract]
Geometric average annual return on plan assets	10.10%
Twenty Five year [Member]
Capital Asset Pricing Model (Texuals) [Abstract]
Geometric average annual return on plan assets	10.30%

Postretirement Benefit Plans (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Change in benefit obligation
Benefit obligation - 1/1	$ (6,682)	$ (6,401)
Liabilities assumed through acquisition	29	0
Benefit obligation - 12/31	6,682	6,401
U.S. Pension Plans [Member]
Change in benefit obligation
Benefit obligation - 1/1	(5,364)	(5,173)	$ (4,886)
Service cost	108	88	85
Interest cost	299	302	294
Amendments / other	4	2
Actuarial loss	133	247
Benefits paid	(353)	(352)
Liabilities assumed through acquisition	0	0
Foreign currency translation	0	0
Benefit obligation - 12/31	5,364	5,173	4,886
International Pension Plan [Member]
Change in benefit obligation
Benefit obligation - 1/1	(596)	(527)	(437)
Service cost	15	11	14
Interest cost	29	27	31
Amendments / other	0	1
Actuarial loss	31	40
Benefits paid	(27)	(31)
Liabilities assumed through acquisition	29	0
Foreign currency translation	(8)	42
Benefit obligation - 12/31	596	527	437
Pension [Member]
Change in benefit obligation
Benefit obligation - 1/1	(5,960)	(5,700)	(5,323)
Service cost	123	99	99
Interest cost	328	329	325
Amendments / other	4	3
Actuarial loss	164	287
Benefits paid	(380)	(383)
Foreign currency translation	(8)	42
Benefit obligation - 12/31	5,960	5,700	5,323
Other Benefits [Member]
Change in benefit obligation
Benefit obligation - 1/1	(722)	(701)	(703)
Service cost	6	7	8
Interest cost	40	42	42
Amendments / other	0	(12)
Actuarial loss	22	7
Benefits paid	(47)	(46)
Benefit obligation - 12/31	$ 722	$ 701	$ 703

Postretirement Benefit Plans (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Change in plan assets
Beginning of year	$ 4,555
Employer contributions	64	$ 44	$ 47
Assets acquired through acquisition	21	0
End of year	4,897	4,555
Funded status at end of year	(1,785)	(1,846)
International Pension Plan [Member]
Change in plan assets
Beginning of year	297	219
Actual return on plan assets	25	52
Employer contributions	18	11
Employee contributions	1	2
Benefits paid	(5)	(16)
Assets acquired through acquisition	21	0
Foreign currency translation	(7)	29
End of year	350	297	219
Funded status at end of year	(246)	(230)
Pension [Member]
Change in plan assets
Beginning of year	4,308	3,611
Actual return on plan assets	550	824
Employer contributions	76	161
Employee contributions	1	2
Benefits paid	(327)	(319)
Foreign currency translation	(7)	29
End of year	4,622	4,308	3,611
Funded status at end of year	(1,338)	(1,392)
Other Benefits [Member]
Change in plan assets
Beginning of year	247	205
Actual return on plan assets	33	47
Benefits paid	(5)	(5)
End of year	275	247	205
Funded status at end of year	(447)	(454)
U.S. Pension Plans [Member]
Change in plan assets
Beginning of year	4,011	3,392
Actual return on plan assets	525	772
Employer contributions	58	150
Employee contributions	0	0
Benefits paid	(322)	(303)
Assets acquired through acquisition	0	0
Foreign currency translation	0	0
End of year	4,272	4,011	$ 3,392
Funded status at end of year	$ (1,092)	$ (1,162)

Postretirement Benefit Plans (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Asset allocation range
Actual allocation	100.00%	100.00%
Fair value measurement pension plan and postretirement welfare
Beginning of year	$ 4,555
End of year	$ 4,897	$ 4,555
Domestic equities [Member]
Asset allocation range
Actual allocation	25.00%	25.00%
Minimum Range	25.00%
Maximum Range	75.00%
Alternative Investments [Member]
Asset allocation range
Actual allocation	47.00%	47.00%
Minimum Range	20.00%
Maximum Range	45.00%
International equities [Member]
Asset allocation range
Actual allocation	18.00%	17.00%
Minimum Range	10.00%
Maximum Range	45.00%
Fixed income [Member]
Asset allocation range
Actual allocation, Fixed income	2.00%	4.00%
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Minimum	0.00%
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Maximum	60.00%
Cash and other [Member]
Asset allocation range
Actual allocation, Cash and other	8.00%	7.00%
Defined Benefit Plan, Target Allocation Percentage of Assets, Other, Range Minimum	0.00%
Defined Benefit Plan, Target Allocation Percentage of Assets, Other, Range Maximum	30.00%
Domestic Pension Plan [Member]
Weighted-average assumptions used to determine benefit obligations
Expected return on plan assets	9.00%	9.00%	9.00%
Weighted-average assumptions used to determine net periodic benefit cost
Expected return on plan assets	9.00%	9.00%	9.00%
Actual versus the expected long-term returns for our domestic pension plans
Expected rate of return on plan assets	9.00%	9.00%	9.00%
Actual rate of return on plan assets	14.10%	24.10%	(31.20%)
U.S. Pension Plans [Member]
Net periodic benefit cost
Service cost	$ 108	$ 88	$ 85
Interest cost	299	302	294
Expected return on plan assets	(414)	(412)	(421)
Amortization of net actuarial loss	72	46	14
Amortization of prior service (credit) cost	4	4	4
Net periodic benefit cost	69	28	(24)
Effect of curtailment	1	3	0
Total net periodic benefit cost	70	31	(24)
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	8	(151)	2,018
Prior service credit	4	6	0
Amortization of net actuarial loss	(72)	(46)	(14)
Amortization of prior service credit (cost)	(4)	(4)	(4)
Total changes recognized in other comprehensive income	(64)	(195)	2,000
Total impact from net periodic benefit cost and changes in other comprehensive income	$ 6	$ (164)	1,976
Weighted-average assumptions used to determine benefit obligations
Discount rate	5.73%	6.00%
Rate of future compensation increase	4.00%	4.00%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	5.50%	6.00%
Rate of future compensation increase	4.00%	4.00%
Fair value measurement pension plan and postretirement welfare
Beginning of year	$ 4,011	$ 3,392
Foreign currency translation	0	0
End of year	$ 4,272	$ 4,011	3,392
U.S. Postretirement Benefit Plans [Member]
Weighted-average assumptions used to determine benefit obligations
Discount rate	6.00%	6.25%
Expected return on plan assets	9.00%	9.00%
Rate of future compensation increase	4.00%	4.00%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	6.00%	6.25%
Expected return on plan assets	9.00%	9.00%
Rate of future compensation increase	4.00%	4.00%
Actual versus the expected long-term returns for our domestic pension plans
Expected rate of return on plan assets	9.00%	9.00%
International Pension Plan [Member]
Net periodic benefit cost
Service cost	$ 15	$ 11	14
Interest cost	29	27	31
Expected return on plan assets	(24)	(21)	(24)
Amortization of net actuarial loss	3	2	3
Amortization of prior service (credit) cost	0	0	0
Net periodic benefit cost	23	19	24
Effect of curtailment	0	0	0
Total net periodic benefit cost	23	19	24
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	19	13	41
Prior service credit	0	1	0
Amortization of net actuarial loss	(3)	(2)	(3)
Amortization of prior service credit (cost)	0	0	0
Total changes recognized in other comprehensive income	16	12	38
Total impact from net periodic benefit cost and changes in other comprehensive income	$ 39	$ 31	62
Weighted-average assumptions used to determine benefit obligations
Discount rate	5.47%	5.79%
Rate of future compensation increase	3.26%	3.87%
Fair value measurement pension plan and postretirement welfare
Beginning of year	$ 297	$ 219
Foreign currency translation	(7)	29
End of year	350	297	219
Pension [Member]
Net periodic benefit cost
Service cost	123	99	99
Interest cost	328	329	325
Expected return on plan assets	(438)	(433)	(445)
Amortization of net actuarial loss	75	48	17
Amortization of prior service (credit) cost	4	4	4
Net periodic benefit cost	92	47	0
Effect of curtailment	1	3	0
Total net periodic benefit cost	93	50	0
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	27	(138)	2,060
Prior service credit	4	7	0
Amortization of net actuarial loss	(75)	(48)	(17)
Amortization of prior service credit (cost)	(4)	(4)	(4)
Total changes recognized in other comprehensive income	(48)	(183)	2,038
Total impact from net periodic benefit cost and changes in other comprehensive income	45	(133)	2,038
Fair value measurement pension plan and postretirement welfare
Beginning of year	4,308	3,611
Foreign currency translation	(7)	29
End of year	4,622	4,308	3,611
Estimated Future Benefit Payments
2011	368
2012	375
2013	383
2014	391
2015	402
2016-2020	2,162
Pension [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1,405
End of year	1,397	1,405
Pension [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1,063
End of year	1,306	1,063
Pension [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1,840	2,211
Realized gains (losses), net	93	29
Unrealized gains (losses), net	119	176
Purchases/(sales), net	(7)	(84)
Transfers in/(out), net	(124)	(495)
Foreign currency translation	(2)	3
End of year	1,919	1,840	2,211
Pension [Member] \| Domestic equities [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	957
End of year	1,026	957
Pension [Member] \| Domestic equities [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	737
End of year	775	737
Pension [Member] \| Domestic equities [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	142
End of year	154	142
Pension [Member] \| Domestic equities [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	78
End of year	97	78
Pension [Member] \| Hedge Funds [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	796
End of year	784	796
Pension [Member] \| Hedge Funds [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	0
End of year	0	0
Pension [Member] \| Hedge Funds [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	321
End of year	312	321
Pension [Member] \| Hedge Funds [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	475	783
Realized gains (losses), net	8	3
Unrealized gains (losses), net	30	84
Purchases/(sales), net	(41)	(186)
Transfers in/(out), net	0	(209)
Foreign currency translation	0	0
End of year	472	475	783
Pension [Member] \| Fixed income [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	231
End of year	184	231
Pension [Member] \| Fixed income [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	13
End of year	8	13
Pension [Member] \| Fixed income [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	218
End of year	176	218
Pension [Member] \| Fixed income [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	0	40
Realized gains (losses), net	0	0
Unrealized gains (losses), net	0	0
Purchases/(sales), net	0	0
Transfers in/(out), net	0	(40)
Foreign currency translation	0	0
End of year	0	0	40
Pension [Member] \| Cash and other [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	118
End of year	104	118
Pension [Member] \| Cash and other [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	109
End of year	4	109
Pension [Member] \| Cash and other [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	(6)
End of year	74	(6)
Pension [Member] \| Cash and other [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	15
End of year	26	15
Pension [Member] \| Others [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	297
End of year	337	297
Pension [Member] \| Others [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	109
End of year	4	109
Pension [Member] \| Others [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	147
End of year	274	147
Pension [Member] \| Others [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	40	125
Realized gains (losses), net	0	1
Unrealized gains (losses), net	2	2
Purchases/(sales), net	17	8
Transfers in/(out), net	0	(96)
Foreign currency translation	0	0
End of year	59	40	125
Pension [Member] \| Equity Securities [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1,858
End of year	2,020	1,858
Pension [Member] \| Equity Securities [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1,283
End of year	1,385	1,283
Pension [Member] \| Equity Securities [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	376
End of year	390	376
Pension [Member] \| Equity Securities [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	199	274
Realized gains (losses), net	0	(1)
Unrealized gains (losses), net	41	70
Purchases/(sales), net	4	5
Transfers in/(out), net	0	(149)
Foreign currency translation	0	0
End of year	245	199	274
Pension [Member] \| Private Equity Funds [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1,126
End of year	1,297	1,126
Pension [Member] \| Private Equity Funds [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	0
End of year	0	0
Pension [Member] \| Private Equity Funds [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1
End of year	154	1
Pension [Member] \| Private Equity Funds [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1,125	988
Realized gains (losses), net	85	26
Unrealized gains (losses), net	46	20
Purchases/(sales), net	13	89
Transfers in/(out), net	(124)	(1)
Foreign currency translation	(2)	3
End of year	$ 1,143	$ 1,125	988
International Other Benefits [Member]
Weighted-average assumptions used to determine benefit obligations
Discount rate	5.79%	6.14%
Expected return on plan assets	7.33%	7.29%
Rate of future compensation increase	3.84%	3.64%
Weighted-average assumptions used to determine net periodic benefit cost
Expected return on plan assets	7.33%	7.29%
Actual versus the expected long-term returns for our domestic pension plans
Expected rate of return on plan assets	7.33%	7.29%
Other Benefits [Member]
Net periodic benefit cost
Service cost	$ 6	$ 7	8
Interest cost	40	42	42
Expected return on plan assets	(22)	(18)	(28)
Amortization of net actuarial loss	11	15	4
Amortization of prior service (credit) cost	(2)	4	3
Net periodic benefit cost	33	50	29
Effect of curtailment	0	(1)	0
Total net periodic benefit cost	33	49	29
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)	11	(23)	90
Prior service credit	0	(10)	(3)
Amortization of net actuarial loss	(11)	(15)	(4)
Amortization of prior service credit (cost)	2	(4)	(3)
Total changes recognized in other comprehensive income	2	(52)	80
Total impact from net periodic benefit cost and changes in other comprehensive income	35	(3)	109
Fair value measurement pension plan and postretirement welfare
Beginning of year	247	205
End of year	275	247	205
Estimated Future Benefit Payments
2011	53
2012	54
2013	55
2014	56
2015	56
2016-2020	289
Other Benefits [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	91
End of year	95	91
Other Benefits [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	55
End of year	69	55
Other Benefits [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	101	120
Realized gains (losses), net	5	2
Unrealized gains (losses), net	13	9
Purchases/(sales), net	(1)	(5)
Transfers in/(out), net	(7)	(25)
End of year	111	101	120
Other Benefits [Member] \| Domestic equities [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	75
End of year	81	75
Other Benefits [Member] \| Domestic equities [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	63
End of year	68	63
Other Benefits [Member] \| Domestic equities [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	8
End of year	8	8
Other Benefits [Member] \| Domestic equities [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	4
End of year	5	4
Other Benefits [Member] \| Hedge Funds [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	39
End of year	42	39
Other Benefits [Member] \| Hedge Funds [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	0
End of year	0	0
Other Benefits [Member] \| Hedge Funds [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	15
End of year	16	15
Other Benefits [Member] \| Hedge Funds [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	24	40
Realized gains (losses), net	0	0
Unrealized gains (losses), net	4	4
Purchases/(sales), net	(2)	(9)
Transfers in/(out), net	0	(11)
End of year	26	24	40
Other Benefits [Member] \| Fixed income [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	23
End of year	18	23
Other Benefits [Member] \| Fixed income [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	1
End of year	0	1
Other Benefits [Member] \| Fixed income [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	14
End of year	10	14
Other Benefits [Member] \| Fixed income [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	8	10
Realized gains (losses), net	0	1
Unrealized gains (losses), net	0	0
Purchases/(sales), net	0	(1)
Transfers in/(out), net	0	(2)
End of year	8	8	10
Other Benefits [Member] \| Cash and other [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	8
End of year	6	8
Other Benefits [Member] \| Cash and other [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	7
End of year	1	7
Other Benefits [Member] \| Cash and other [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	(1)
End of year	4	(1)
Other Benefits [Member] \| Cash and other [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	2
End of year	1	2
Other Benefits [Member] \| Others [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	17
End of year	19	17
Other Benefits [Member] \| Others [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	7
End of year	1	7
Other Benefits [Member] \| Others [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	7
End of year	15	7
Other Benefits [Member] \| Others [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	3	6
Realized gains (losses), net	0	0
Unrealized gains (losses), net	0	0
Purchases/(sales), net	0	1
Transfers in/(out), net	0	(4)
End of year	3	3	6
Other Benefits [Member] \| Equity Securities [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	112
End of year	127	112
Other Benefits [Member] \| Equity Securities [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	83
End of year	94	83
Other Benefits [Member] \| Equity Securities [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	19
End of year	20	19
Other Benefits [Member] \| Equity Securities [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	10	14
Realized gains (losses), net	0	0
Unrealized gains (losses), net	3	4
Purchases/(sales), net	0	0
Transfers in/(out), net	0	(8)
End of year	13	10	14
Other Benefits [Member] \| Private Equity Funds [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	56
End of year	69	56
Other Benefits [Member] \| Private Equity Funds [Member] \| Level 1 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	0
End of year	0	0
Other Benefits [Member] \| Private Equity Funds [Member] \| Level 2 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	0
End of year	8	0
Other Benefits [Member] \| Private Equity Funds [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Beginning of year	56	50
Realized gains (losses), net	5	1
Unrealized gains (losses), net	6	1
Purchases/(sales), net	1	4
Transfers in/(out), net	(7)	0
End of year	$ 61	$ 56	$ 50

Postretirement Benefit Plans (Details Textual) - USD ($) shares in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Postretirement Benefit Plan (Textuals) [Abstract]
Stock fund held approximately	8.3		8.3
Benefit pension plans	$ 5,644.0	$ 5,378.0	$ 5,644.0	$ 5,378.0
Long-term annual rate of return for domestic pension plans	9.00%		9.00%
Assumed rate of future increase in per capita cost of health care for 2011			7.80%
Assumed rate of future increase in per capita cost of health care for 2019			5.00%
Effect of one percent increase on benefit obligation			$ 36.0
Increase in aggregate annual service and interest cost components			3.0
Amount of reduction in benefit obligation due to one percent decrease in health care trend rate			30.0
Decrease in aggregate annual service and interest cost components			2.0
Ownership of the partnership interest			499.0
Funds invested through private equity funds			442.0
Contribution to U.S. Salaried Retirement Plan	$ 50.0	$ 100.0
Part of total contribution expected to be made in first quarter			20.0
Employee Benefit Plans (Additional) (Textuals) [Abstract]
Contributions made to pension plans			64.0	44.0	$ 47.0
International Pension Plan [Member]
Employee Benefit Plans (Additional) (Textuals) [Abstract]
Contributions made to pension plans			$ 18.0	11.0
Projected Benefit Obligation	10.00%		10.00%
Pension [Member]
Employee Benefit Plans (Additional) (Textuals) [Abstract]
Contributions made to pension plans			$ 76.0	$ 161.0
Minimum [Member]
Employee Benefit Plans (Additional) (Textuals) [Abstract]
Contribution to range related to pension	$ 90.0		90.0
Maximum [Member]
Employee Benefit Plans (Additional) (Textuals) [Abstract]
Contribution to range related to pension	$ 110.0		$ 110.0
US Salaried Retirement Plan [Member]
Employee Benefit Plans (Additional) (Textuals) [Abstract]
Projected Benefit Obligation	76.00%		76.00%
Other Non Qualified US Plan [Member]
Employee Benefit Plans (Additional) (Textuals) [Abstract]
Projected Benefit Obligation	14.00%		14.00%

Long-Term Incentive Employee Compensation (Details) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Long-Term Incentive Employee Compensation Expense
Compensation costs on equity-based awards	$ 28,000,000	$ 29,000,000	$ 31,000,000
Compensation costs on liability-based awards	(5,000,000)	5,000,000	24,000,000
Total compensation costs, pre-tax	23,000,000	34,000,000	55,000,000
Future tax benefit	$ 7,000,000	$ 10,000,000	$ 18,000,000
Stock options outstanding rollforward
Outstanding, shares	8.1	8.1	8.7
Outstanding, Weighted Average Exercise Price	$ 40.29	$ 39.83	$ 38.13
Stock options granted, shares	0.7	0.9	0.6
Stock options granted, Weighted Average Exercise Price	$ 53.30	$ 33.59	$ 53.57
Stock options exercised, shares	(1.1)	(0.8)	(1.0)
Stock options exercised, Weighted Average Exercise Price	$ 31.45	$ 26.32	$ 32.82
Stock options canceled or expired, shares	(0.3)	(0.1)	(0.2)
Stock options canceled or expired, Weighted Average Exercise Price	$ 48.78	$ 45.94	$ 44.31
Outstanding, Weighted Average Exercise Price	42.54	40.29	39.83
Stock options excercisable at end of year, Weighted Average Exercise Price	$ 41.86	$ 39.49	$ 37.02
Outstanding, shares	7.4	8.1	8.1
Stock options excercisable at end of year, shares	5.9	6.4	6.8

Long-Term Incentive Employee Compensation (Details 1) shares in Millions	12 Months Ended
	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Share Based Compensation, Summary of stock options
Stock Options Outstanding, Number \| shares	7.4
Stock Options Outstanding, Weighted-Average remaining contractual life (in years)	3.1
Stock Options Outstanding, Weighted-Average Exercise Price	$ 42.54
Stock Options Outstanding, Aggregate Intrinsic Value	$ 76,000,000
Stock Options Exercisable, Number \| shares	5.9
Stock Options Exercisable, Weighted-Average remaining contractual life (in years)	2.2
Stock Options Exercisable, Weighted-Average Exercise Price	$ 41.86
Stock Options Exercisable, Aggregate Intrinsic Value	64,000,000
$10-$20 [Member]
Share Based Compensation, Summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	10
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 20
Stock Options Outstanding, Number \| shares	0.1
Stock Options Outstanding, Weighted-Average remaining contractual life (in years)	0.0
Stock Options Outstanding, Weighted-Average Exercise Price	$ 18.44
Stock Options Outstanding, Aggregate Intrinsic Value	$ 3,000,000
Stock Options Exercisable, Number \| shares	0.1
Stock Options Exercisable, Weighted-Average remaining contractual life (in years)	0.0
Stock Options Exercisable, Weighted-Average Exercise Price	$ 18.44
Stock Options Exercisable, Aggregate Intrinsic Value	3,000,000
$20-$30 [Member]
Share Based Compensation, Summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	20
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 30
Stock Options Outstanding, Number \| shares	0.4
Stock Options Outstanding, Weighted-Average remaining contractual life (in years)	1.0
Stock Options Outstanding, Weighted-Average Exercise Price	$ 25.37
Stock Options Outstanding, Aggregate Intrinsic Value	$ 12,000,000
Stock Options Exercisable, Number \| shares	0.4
Stock Options Exercisable, Weighted-Average remaining contractual life (in years)	1.0
Stock Options Exercisable, Weighted-Average Exercise Price	$ 25.37
Stock Options Exercisable, Aggregate Intrinsic Value	11,000,000
$30-$40 [Member]
Share Based Compensation, Summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	30
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 40
Stock Options Outstanding, Number \| shares	2.6
Stock Options Outstanding, Weighted-Average remaining contractual life (in years)	3.4
Stock Options Outstanding, Weighted-Average Exercise Price	$ 34.43
Stock Options Outstanding, Aggregate Intrinsic Value	$ 45,000,000
Stock Options Exercisable, Number \| shares	2.0
Stock Options Exercisable, Weighted-Average remaining contractual life (in years)	2.9
Stock Options Exercisable, Weighted-Average Exercise Price	$ 34.79
Stock Options Exercisable, Aggregate Intrinsic Value	34,000,000
$40-$50 [Member]
Share Based Compensation, Summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	40
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 50
Stock Options Outstanding, Number \| shares	2.2
Stock Options Outstanding, Weighted-Average remaining contractual life (in years)	1.6
Stock Options Outstanding, Weighted-Average Exercise Price	$ 45.05
Stock Options Outstanding, Aggregate Intrinsic Value	$ 16,000,000
Stock Options Exercisable, Number \| shares	2.2
Stock Options Exercisable, Weighted-Average remaining contractual life (in years)	1.5
Stock Options Exercisable, Weighted-Average Exercise Price	$ 45.03
Stock Options Exercisable, Aggregate Intrinsic Value	16,000,000
$50-$60 [Member]
Share Based Compensation, Summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	50
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 60
Stock Options Outstanding, Number \| shares	2.0
Stock Options Outstanding, Weighted-Average remaining contractual life (in years)	5.0
Stock Options Outstanding, Weighted-Average Exercise Price	$ 54.18
Stock Options Outstanding, Aggregate Intrinsic Value	$ 0
Stock Options Exercisable, Number \| shares	1.2
Stock Options Exercisable, Weighted-Average remaining contractual life (in years)	2.9
Stock Options Exercisable, Weighted-Average Exercise Price	$ 54.77
Stock Options Exercisable, Aggregate Intrinsic Value	0
$60-$70 [Member]
Share Based Compensation, Summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	60
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 70
Stock Options Outstanding, Number \| shares	0.1
Stock Options Outstanding, Weighted-Average remaining contractual life (in years)	4.0
Stock Options Outstanding, Weighted-Average Exercise Price	$ 66.83
Stock Options Outstanding, Aggregate Intrinsic Value	$ 0
Stock Options Exercisable, Number \| shares	0.0
Stock Options Exercisable, Weighted-Average remaining contractual life (in years)	3.9
Stock Options Exercisable, Weighted-Average Exercise Price	$ 67.16
Stock Options Exercisable, Aggregate Intrinsic Value	$ 0
2003 Equity Incentive Plan [Member]
Share Based Compensation, Summary of stock options
Number of shares initially available for awards under stock option plan \| shares	12.2
Shares available for future grants under stock options \| shares	2.8
TSR Plan Awards [Member]
Share Based Compensation, Summary of stock options
Number of companies included in applicable benchmark group range	312 to 365
Fair value of the outstanding awards	$ 2	$ 27
Cash payments to settle awards	18,000,000	$ 21,000,000	$ 19,000,000
Total unrecognized compensation cost	$ 4,000,000
Unrecognized compensation cost weighted average amortization period (years)	2.0

Long-Term Incentive Employee Compensation (Details 2) shares in Millions	12 Months Ended
	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Long-Term Incentive Employee Compensation (Textuals) [Abstract]
Total unrecognized compensation cost related to unvested options and restricted stock	$ 43,000,000
Unrecognized compensation cost weighted average amortization period (years)	1.8
Non-qualified stock options exercisable period	Seven or ten-year periods, except in certain instances of death, retirement or disability. Options granted between 2004 and 2009 were awarded with an exercisable term of seven years. Options granted during 2010 were awarded with an exercisable term of ten years.
Intrinsic value of options exercised	$ 22,000,000	$ 18,000,000	$ 30,000,000
Cash received from the exercise of stock options	35,000,000	20,000,000
Tax benefit realized with stock option exercises	14,000,000
Tax benefit realized with lapses of restricted stock		11,000,000
Excess tax benefit from stock activity	6,000,000	$ 3,000,000	$ 7,000,000
ITT's closing stock price	$ 52.11
Exercisable options out of the money \| shares	2.1
Total number of stock options expected to vest \| shares	7.3
Weighted-average exercise price of Stock options expected to vest	$ 42.46
Aggregate intrinsic value of Stock options expected to vest	$ 75,000,000
Weighted-average remaining contractual life stock options expected to vest	3.0
General vesting period of restricted stock awards	3
Restricted stock outstanding vested shares till termination of service \| shares	0.2
Total number of restricted stock expected to vest \| shares	1.4
Outstanding restricted shares issued to non-employee directors \| shares	0.1
Restricted shares issued to non-employee directors, weighted average period	0.6

Long-Term Incentive Employee Compensation (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Weighted-average assumptions
Dividend yield	1.88%	2.54%	1.31%
Expected volatility	27.06%	38.77%	28.69%
Expected life (in years)	7.0	4.7	4.7
Risk-free rates	3.06%	2.20%	2.31%
Weighted-average grant date fair value	$ 14.50	$ 9.60	$ 13.46

Long-Term Incentive Employee Compensation (Details 4) shares in Millions	12 Months Ended
	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($) shares	Dec. 31, 2008 USD ($) shares
Restricted stock outstanding rollforward
Outstanding at beginning of year, Awards \| shares	1.7	1.5	1.3
Outstanding at beginning of year, Weighted Average Grant Date Fair Value \| $	44.36	51.96	50.93
Outstanding Granted, Awards \| shares	0.5	0.7	0.4
Outstanding Granted, Weighted Average Grant Date Fair Value \| $	53.25	33.88	53.57
Outstanding Lapsed, Awards \| shares	0.4	0.4	0.1
Outstanding Lapsed , Weighted Average Grant Date Fair Value \| $	54.44	52.83	45.76
Outstanding Canceled, Awards \| shares	0.1	0.1	0.1
Outstanding Canceled, Weighted Average Grant Date Fair Value \| $	44.75	54.94	55.89

Capital Stock (Details) $ / shares in Units, shares in Millions	12 Months Ended
	Dec. 31, 2010 USD ($) $ / shares shares	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 $ / shares USD ($) shares	Dec. 31, 2009 USD ($) shares	Dec. 31, 2008 $ / shares	Dec. 31, 2008 USD ($)	Dec. 16, 2008	Oct. 27, 2006 USD ($)
Capital Stock (Textuals) [Abstract]
Aggregate common stock and preferred stock authorized	550.0	550.0
Common stock	500.0	500.0	500.0	500.0
Common stock, par value \| $	$ 1	$ 1	$ 1	$ 1
Preferred stock	50.0	50.0
Preferred stock, par value \| $	$ 0	$ 0
Cash dividends declared per common share \| (per share)	$ 1	$ 1.00	$ 0.85	$ 0.85	$ 0.7	$ 0.70
Issuance of stock from treasury account related to equity compensation arrangements	1.4	1.4
Preferred stock outstanding	0.0	0.0	0.0	0.0
Share repurchase program \| $								$ 1,000,000,000
Term of repurchase program							3
Share purchased under share repurchase program	7.1	7.1
Share purchased under share repurchase program, Value \| $	$ 431,000,000	$ 431,000,000
Common stock held in treasury	22.9	22.9	24.0	24.0

Commitments and Contingencies (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Sep. 30, 2010

USD ($)

Dec. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Dec. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Activity related to asbestos claims

Pending claims, Beginning balance

^[1]

104,679

103,006

New claims

^[2]

5,865

4,274

Settlements

(991)

(1,081)

Dismissals

(6,469)

(4,728)

Adjustment

^[3]

491

3,208

Pending claims, Ending balance

103,575

104,679

^[1]

Net asbestos charges

Continuing operations, pre-tax

$ 385,000

$ 238,000

Continuing operations, after-tax

247,000

148,000

Discontinued operations, pre-tax

(10,000)

9,000

Discontinued operations, after-tax

(6,000)

6,000

Total, pre-tax

375,000

247,000

Total, after-tax

241,000

154,000

Beginning balance

267,000

27,000

Changes in estimate during the period:

Changes in estimates during the period continuing operation, Liability

591,000

700,000

Changes in estimates during the period continuing operations, Assets

206,000

462,000

Changes in estimates during period continuing operations, net

385,000

238,000

Changes in estimates during period discontinued operations, Liability

217,000

67,000

Changes in estimates during period discontinued operations, Assets

227,000

58,000

Changes in estimates during period Discontinued operations, net

(10,000)

9,000

Net cash activity

7,000

Other adjustments

Ending balance

$ 642,000

$ 267,000

Disposal Group (Textual) [Abstract]

Assets of disposal group including discontinued operation

$ 0

$ 141,000

Commitments and Contingencies (Textuals) [Abstract]

Number of claims related to maritime actions excluded from total claims

34,869

Number of open claims against ITT alleging injury as a result of exposure to asbestos

104,679

^[1]

103,006

^[1]

103,575

104,679

^[1]

Number of claims in Mississippi placed on inactive dockets

39,985

Average payment per resolved claim

$ 16

$ 12

Asbestos liability period for unasserted claims

Next 10 years

Increase in total undiscounted asbestos liability (third quarter assessment)

$ 691,000

Increase in asbestos-related assets

$ 372,000

Total asbestos liability, current

$ 117,000

$ 66,000

Total asbestos asset, current

105,000

62,000

Estimated percentage of insurance which covers Asbestos costs

62.00%

Insurance coverage projected in year 10

0.25

Estimated future cash flows on next five years

average $25

Asbestos cash flows during past three years

average of less than $5

Estimated asbestos cash flows 2016-2020

approximately $50 to $60

Estimated asbestos exposure, net of expected recoveries from insurers and other responsible parties

642,000

267,000

Total transition away period for liabiltiy sharing of claims related to discontinued operations

9 to 10 years

Extended period for future cash flows net of recoveries related to pending claims an unasserted claims to be filed

Through approximately 2022

Asset [Member]

Beginning Balance, Asset

$ 666,000

201,000

Beginning balance

666,000

Changes in estimate during the period:

Net cash activity, Asset

54,000

55,000

Other adjustments

(11,000)

Ending Balance, Asset

666,000

Ending balance

1,034,000

666,000

Liability [Member]

Beginning Balance, Liability

933,000

228,000

Changes in estimate during the period:

Average payment per resolved claim

(54,000)

(62,000)

Other adjustments

(11,000)

Ending Balance, Liability

$ 1,676,000

$ 933,000

Absestos [Member]

Disposal Group (Textual) [Abstract]

Assets of disposal group including discontinued operation

285,000

64,000

Liability of disposal group including discontinued operation

$ 292,000

$ 75,000

[1]	We had previously indicated that 34,869 claims related to maritime actions, almost all of which were filed in the United States District Court for the Northern District of Ohio, were not included in the count of asserted claims because the Company believed they would not be litigated. In August 2010, these cases were dismissed.
[2]	In September 2010, ITT executed an amended sharing agreement related to a business we disposed of a number of years ago. The amended agreement provides for a sharing of costs for claims resolved between 2010 and 2019 naming ITT or the entity which acquired the disposed business. Excluded from the table above is claim activity associated with the amended sharing agreement that were not filed against ITT.
[3]	Reflects an adjustment to increase the number of open claims as a result of transitioning claims data from our primary insurance companies to an internal database.

Commitments and Contingencies (Details 1) $ in Millions	12 Months Ended
Commitments and Contingencies (Details 1) $ in Millions	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Activity related to accrued environmental liabilities
Environmental liabilities	$ 140	$ 135
Accruals added during the period	0	1
Change in estimates for pre-existing accruals	14	18
Payments	(15)	(14)
Environmental liabilities	139	140
Range of liability and number of active sites for environmental matters
Low-end range	117	113
High-end range	$ 251	$ 249
Number of active environmental investigation and remediation sites	99	98

Commitments and Contingencies (Details 2) $ in Millions	12 Months Ended
Commitments and Contingencies (Details 2) $ in Millions	Dec. 31, 2010 USD ($)	Mar. 27, 2007
Commitments and Contingencies (Textuals) [Abstract]
Number of Cases pending against PGS	approximately 3,000 cases
Night Vision ITAR Violation Settlement; Fines, Forfeitures and Penalties	$ 50
Night Vision ITAR Violation Settlement; Deferred Prosecution Monetary Penalty	$ 50
Number of Itar Violations the Company Pled Guilty To		2
Period for Deferred Prosecution Monetary Penalty	5
Number of consolidated cases	3

Guarantees, Indemnities and Warranties (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Changes in product warranty accrual
Warranty accrual -	$ 67	$ 57
Accruals for product warranties issued in the period	43	38
Payments	(39)	(29)
Foreign currency translation	1	1
Warranty accrual -	72	$ 67
Guarantees, Indemnities and Warranties (Textuals) [Abstract]
Maximum payment to the lessor for Residual Value Guarantee on future value of the aircraftMaximum payment to the lessor for Residual Value Guarantee on future value of the aircraft	42
Less than Guaranteed Amount of Exposure to Current Projected Under Residual Value Guarantee	(22)
Realized and Deferred Gain on Sale Leaseback of Corporate Aircraft	5
Guaranteed Fair value of asset at the expiration of lease	50
Maximum payment under residual value guarantee of lease	42
Accrual recorded in Consolidated Condensed Financial Statements for residual value guarantee of aircraft	$ 17
Payment Under Residual Value Guarrantee of Lease	Difference between the fair value of the aircraft and $50 million

Business Segment Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Business Segment Information
PRODUCT REVENUE	$ 8,494	$ 8,244	$ 9,181
SERVICE REVENUE	2,501	2,430	2,295
TOTAL REVENUE	10,995	10,674	11,476
OPERATING INCOME	$ 900	$ 894	$ 1,198
OPERATING MARGIN	8.20%	8.40%	10.40%
TOTAL ASSETS	$ 12,438	$ 11,129
PLANT, PROPERTY & EQUIPMENT, NET	1,205	1,050
CAPITAL EXPENDITURES	328	271	$ 248
DEPRECIATION AND AMORTIZATION	297	289	274
Defense [Member]
Business Segment Information
PRODUCT REVENUE	3,602	3,788	3,925
SERVICE REVENUE	2,295	2,279	2,139
TOTAL REVENUE	5,897	6,067	6,064
OPERATING INCOME	$ 752	$ 761	$ 715
OPERATING MARGIN	12.80%	12.50%	11.80%
TOTAL ASSETS	$ 4,149	$ 4,153
PLANT, PROPERTY & EQUIPMENT, NET	434	402
CAPITAL EXPENDITURES	107	115	$ 87
DEPRECIATION AND AMORTIZATION	134	$ 154	147
Business Segment Information (Textuals) [Abstract]
Percentage of revenue generated from U.S. Government		86.00%
Fluid [Member]
Business Segment Information
PRODUCT REVENUE	3,475	$ 3,220	3,693
SERVICE REVENUE	195	143	148
TOTAL REVENUE	3,670	3,363	3,841
OPERATING INCOME	$ 479	$ 393	$ 469
OPERATING MARGIN	13.10%	11.70%	12.20%
TOTAL ASSETS	$ 4,077	$ 2,930
PLANT, PROPERTY & EQUIPMENT, NET	518	393
CAPITAL EXPENDITURES	109	74	$ 81
DEPRECIATION AND AMORTIZATION	100	73	69
Motion and Flow [Member]
Business Segment Information
PRODUCT REVENUE	1,430	1,245	1,575
SERVICE REVENUE	11	8	8
TOTAL REVENUE	1,441	1,253	1,583
OPERATING INCOME	$ 179	$ 118	$ 192
OPERATING MARGIN	12.40%	9.40%	12.10%
TOTAL ASSETS	$ 1,350	$ 1,323
PLANT, PROPERTY & EQUIPMENT, NET	230	235
CAPITAL EXPENDITURES	52	56	$ 64
DEPRECIATION AND AMORTIZATION	53	57	56
Eliminations [Member]
Business Segment Information
PRODUCT REVENUE	(13)	(9)	(12)
TOTAL REVENUE	(13)	(9)	(12)
Corporate and Other [Member]
Business Segment Information
OPERATING INCOME	(510)	(378)	(178)
TOTAL ASSETS	2,862	2,723
PLANT, PROPERTY & EQUIPMENT, NET	23	20
CAPITAL EXPENDITURES	60	26	16
DEPRECIATION AND AMORTIZATION	$ 10	$ 5	$ 2

Business Segment Information (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Business segment information by geographical information
Revenue	$ 10,995	$ 10,674	$ 11,476
PLANT, PROPERTY & EQUIPMENT, NET	1,205	1,050
United States [Member]
Business segment information by geographical information
Geographic, Revenue	7,305	7,362	7,779
Geographic, Plant, Property & Equipment, net	739	603
Western Europe [Member]
Business segment information by geographical information
Geographic, Revenue	1,970	1,814	2,098
Geographic, Plant, Property & Equipment, net	305	317
Asia Pacific [Member]
Business segment information by geographical information
Geographic, Revenue	663	577	604
Geographic, Plant, Property & Equipment, net	70	65
Other [Member]
Business segment information by geographical information
Geographic, Revenue	1,057	921	$ 995
Geographic, Plant, Property & Equipment, net	$ 91	$ 65

Business Segment Information (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Revenue by product category, net of intercompany balances
Revenue	$ 10,995	$ 10,674	$ 11,476
Defense products [Member]
Revenue by product category, net of intercompany balances
Revenue	3,600	3,785	3,924
Defense services [Member]
Revenue by product category, net of intercompany balances
Revenue	2,295	2,279	2,139
Pumps and complementary products and services [Member]
Revenue by product category, net of intercompany balances
Revenue	3,667	3,363	3,840
Automotive and rail equipment [Member]
Revenue by product category, net of intercompany balances
Revenue	552	495	567
Connectors equipment [Member]
Revenue by product category, net of intercompany balances
Revenue	405	335	445
Aerospace products [Member]
Revenue by product category, net of intercompany balances
Revenue	127	117	134
Other products [Member]
Revenue by product category, net of intercompany balances
Revenue	$ 349	$ 300	$ 427

Label	Element	Value
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Number	itt_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingNumber	1,700,000
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Grant Date Fair Value	itt_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageGrantDateFairValue	44.81