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Document and Entity Information - USD ($) shares in Millions, $ in Billions	12 Months Ended
	Dec. 31, 2011	Feb. 10, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	ITT Corporations
Entity Central Index Key	0000216228
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
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	$ 1.8
Entity Common Stock, Shares Outstanding		94.9

Consolidated Income Statements - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Income Statements [Abstract]
Revenue	$ 2,119	$ 1,908	$ 1,770
Costs of revenue	1,464	1,301	1,207
Gross profit	655	607	563
Sales and marketing expenses	167	166	149
General and administrative expenses	168	176	201
Research and development expenses	66	61	53
Restructuring and asset impairment charges, net	5	3	43
Asbestos-related costs, net	100	385	238
Transformation costs	396	0	0
Operating loss	(247)	(184)	(121)
Interest expense	76	97	98
Interest income	4	11	17
Miscellaneous (income) expense, net	(1)	6	6
Loss from continuing operations before income tax expense (benefit)	(318)	(276)	(208)
Income tax expense (benefit)	260	(144)	(97)
Loss from continuing operations	(578)	(132)	(111)
Income from discontinued operations, including tax expense of $237, $330 and $275, respectively	448	807	740
Gain on sale of discontinued operation, including tax benefit of $4	0	129	0
Net (loss) income	$ (130)	$ 804	$ 629
Basic and Diluted Earnings Per Share:
Continuing operations	$ (6.23)	$ (1.44)	$ (1.21)
Basic and diluted earnings per share related to discontinued operations	4.83	10.19	8.10
Net income	$ 1.40	$ 8.75	$ 6.89
Weighted average common shares-basic and diluted	92.8	92.0	91.3
Cash dividends declared per common share	$ 1.591	$ 2.00	$ 1.70

Consolidated Income Statements (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Income Statements [Abstract]
Tax expense on income from discontinued operations	$ 237	$ 330	$ 275
Tax benefit on income from sale of discontinued operation	$ 4

- Definition

Tax effect allocated to a disposal group that is classified as a component of the entity reported as a separate component of income before extraordinary items. Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b),(c)
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6909487&loc=d3e38679-109324

+ Details

- Definition

Tax expense or benefit on the gain (loss), not previously recognized and resulting from the sale of a business component, which is recognized at the date of sale. A gain (loss) reflects the amount by which the consideration received exceeds (is exceeded by) the net carrying amount (reflecting previous provisions for loss on disposal, if any) of the disposal group.

+ References + Details

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Comprehensive Income [Abstract]
Net (loss) income	$ (130)	$ 804	$ 629
Other comprehensive (loss) income:
Net foreign currency translation adjustment	(40)	(74)	126
Net change in postretirement benefit plans, net of tax (expense) of $399, $(19) and $ (88), respectively	(508)	29	141
Net change in unrealized gains on investment securities, net of tax (expense) benefit of $8, $0 and $(7), respectively	(12)	(1)	12
Other comprehensive (loss) income	(560)	(46)	279
Other comprehensive (loss) income	821	(46)	279
Comprehensive (loss) income	(690)	758	908
Net change in postretirement benefit plans, net of tax:
Prior service benefit (cost) from plan amendment, net of tax (expense) benefit of $(1), $1 and $(1), respectively	2	(2)	2
Net actuarial (loss) gain arising during the period, net of tax benefit(expense) of $443, $14 and $(61), respectively	(580)	(23)	95
Unrealized changes in postretirement benefit plans, net of tax	(578)	(25)	97
Amortization of prior service costs, net of tax benefit of $(1), $(1) and $(2), respectively	2	1	5
Amortization of net actuarial loss, net of tax benefit of $(42), $(33) and $(24), respectively	68	53	39
Total amortization from accumulated other comprehensive loss into net period benefit cost, net of tax	70	54	44
Net change in postretirement benefit plans, net of tax	(508)	29	141
Net change in unrealized gains on investment securities, net of tax:
Unrealized holding (losses) gains arising during period, net of tax expense of $2, $(3) and $(7), respectively	(2)	4	12
Realized gains arising during the period, net of tax expense of $6, $3 and $0, respectively	(10)	(5)	0
Net change in unrealized gains on investment securities, net of tax	$ (12)	$ (1)	$ 12

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Statements of Comprehensive Income [Abstract]
Tax benefit of change in postretirement benefit plans	$ 399	$ (19)	$ (88)
Tax expense of net change in unrealized gains on investment securities	8	0	(7)
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	356	14	(61)
Tax benefit of amortization of prior service costs (approx.)	(1)	(1)	(2)
Tax benefit of amortization of net actuarial loss	(42)	(33)	(24)
Tax benefit (expense) of unrealized holding (losses) gains arising during period	2	(3)	(7)
Tax expense of gains realized during the period	$ 6	$ 3	$ 0

- Definition

Tax effect on adjustment out of other comprehensive income for prior service costs recognized as a component of net period benefit cost during the period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 25
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 25
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e640-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

For each annual statement of income presented, the tax effect of the net gain (loss) recognized in other comprehensive income that is a reclassification adjustment of other comprehensive income as a result of being recognized as a component of net periodic benefit cost for the period.

+ References + Details

Consolidated Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2011

Dec. 31, 2010

Current assets:

Cash and cash equivalents

$ 690

$ 206

Receivables, net

396

315

Inventories, net

254

218

Other current assets

422

228

Current assets of discontinued operations

3,457

Total current assets

1,762

4,424

Plant, property and equipment, net

324

299

Deferred income taxes

320

Goodwill

510

504

Other intangible assets, net

Asbestos-related assets

821

930

Other non-current assets

121

181

Non-current assets of discontinued operations

5,865

Total non-current assets

1,909

8,191

Total assets

3,671

12,615

Current liabilities:

Accounts payable

364

397

Accrued liabilities

468

442

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

Current liabilities of discontinued operations

1,892

Total current liabilities

834

2,741

Postretirement benefits

315

262

Long-term debt

1,350

Asbestos-related liabilities

1,529

1,559

Other non-current liabilities

295

325

Non-current liabilities of discontinued operations

1,917

Total non-current liabilities

2,143

5,413

Total liabilities

2,977

8,154

Shareholders' Equity:

Common stock: Authorized - 250 shares, $1 par value per share (104.1shares issued) Outstanding - 93.5 shares and 92.6, respectively

^[1]

Retained earnings

852

5,441

Accumulated other comprehensive loss:

Postretirement benefit plans

(153)

(1,359)

Cumulative translation adjustments

(97)

276

Unrealized (loss) gain on investment securities

(1)

Total shareholders' equity

694

4,461

Total liabilities and shareholders' equity

$ 3,671

$ 12,615

[1]	Shares issued and outstanding include unvested restricted common stock of 0.5 and 0.6 at December 31, 2011 and 2010, respectively.

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Common stock, shares authorized	250.0	250.0
Common stock, par value	$ 1	$ 1
Common stock , shares issued	104.1	104.1
Common stock share outstanding	93.5	92.6
Unvested restricted common stock included in shares issued and outstanding	0.5	0.6

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating Activities
Net (loss) income	$ (130)	$ 804	$ 629
Less: Income from discontinued operations	448	936	740
Income from continuing operations	(578)	(132)	(111)
Adjustments to loss from continuing operations
Depreciation and amortization	74	66	65
Stock-based compensation	12	10	18
Restructuring and asset impairment charges, net	5	3	43
Asbestos-related cost, net	100	385	238
Transformation costs	396	0	0
Deferred income taxes	303	(111)	(122)
Restructuring payments	(7)	(27)	(30)
Asbestos related payments	(21)	0	(7)
Transformation-related payments	(355)	0	0
Contributions to pension plans	(30)	(14)	(7)
Changes in assets and liabilities (net of acquisitions):
Change in receivables	(74)	1	5
Change in inventories	(38)	(41)	(7)
Change in accounts payable	4	83	(18)
Change in accrued expenses	38	(29)	30
Change in accrued income taxes	(99)	(259)	95
Other, net	(53)	(12)	69
Net Cash - Operating activities	(323)	(77)	261
Investing Activities
Capital expenditures	(103)	(127)	(92)
Acquisitions, net of cash acquired	(16)	(10)	0
Proceeds from sale of discontinued operations and other assets	11	1	6
Other, net	1	0	0
Net Cash - Investing activities	(107)	(136)	(86)
Financing Activities
Short-term debt, net	3	(56)	(1,607)
Long-term debt repaid	(1,319)	(79)	(29)
Long-term debt issued	0	0	992
Proceeds from issuance of common stock	53	28	15
Tax benefit from share-based compensation	7	6	3
Dividends paid	(193)	(176)	(148)
Contribution from Exelis and Xylem, net	1,586	0	0
Distributions to discontinued operations	1,065	727	277
Net Cash - Financing activities	1,202	450	(497)
Exchange rate effects on cash and cash equivalents	(9)	(22)	34
Discontinued operations:
Operating activities	500	1,053	1,011
Investing activities	(467)	(984)	(202)
Financing activities	(319)	(269)	(543)
Exchange rate effects on cash and cash equivalents	7	4	6
Net cash - Discontinued operations	(279)	(196)	272
Net change in cash and cash equivalents	484	19	(16)
Cash and cash equivalents - beginning of year	206	187	203
Cash and Cash Equivalents - End of year	690	206	187
Cash paid during the year for:
Interest	80	92	90
Income taxes (net of refunds received)	$ 140	$ 343	$ 172

Consolidated Statements of Changes in Shareholders Equity - USD ($) shares in Millions, $ in Millions	Total	Exelis and Xylem [Member]	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Common stock, beginning balance at Dec. 31, 2008	$ 3,028		$ 90	$ 4,242
Common stock, beginning balance, shares at Dec. 31, 2008			90.3
Postretirement benefit plans, beginning balance at Dec. 31, 2008					$ (1,529)
Cumulative translation adjustments, beginning balance at Dec. 31, 2008					224
Unrealized gain on investment securities, beginning balance at Dec. 31, 2008					1
Activity from stock incentive plans			$ 1	45
Activity from stock incentive plans, shares			0.5
Net (loss) income	629			629
Cash dividends declared on common stock				(154)
Net change in postretirement benefit plans, net of tax	141				141
Net foreign currency translation adjustment					126
Retained Distribution		$ 0
Retained Distribution under postretirement benefit plans		0
Retained Distribution under foreign currency translation adjustment		0
Net change in unrealized gains on investment securities, net of tax	12				11
Net change in common stock	0
Net change in retained earnings	520
Net change in accumulated other comprehensive income	279
Postretirement benefit plans, ending balance at Dec. 31, 2009					(1,388)
Cumulative translation adjustments, ending balance at Dec. 31, 2009					350
Unrealized gain on investment securities, ending balance at Dec. 31, 2009					12
Common stock, ending balance at Dec. 31, 2009	3,827		$ 91	4,762
Common stock, ending balance, shares at Dec. 31, 2009			90.8
Total accumulated other comprehensive loss	(1,026)
Activity from stock incentive plans			$ 1	59
Activity from stock incentive plans, shares			0.7
Net (loss) income	804			804
Cash dividends declared on common stock				(184)
Net change in postretirement benefit plans, net of tax	29				29
Net foreign currency translation adjustment					(74)
Retained Distribution		0
Retained Distribution under postretirement benefit plans		0
Retained Distribution under foreign currency translation adjustment		0
Net change in unrealized gains on investment securities, net of tax	(1)				(1)
Net change in common stock	1
Net change in retained earnings	679
Net change in accumulated other comprehensive income	(46)
Postretirement benefit plans, ending balance at Dec. 31, 2010	1,359				(1,359)
Cumulative translation adjustments, ending balance at Dec. 31, 2010	276				276
Unrealized gain on investment securities, ending balance at Dec. 31, 2010	11				11
Common stock, ending balance at Dec. 31, 2010	4,461		$ 92	5,441
Common stock, ending balance, shares at Dec. 31, 2010			91.5
Total accumulated other comprehensive loss	(1,072)
Activity from stock incentive plans			$ 1	97
Activity from stock incentive plans, shares			1.6
Net (loss) income	(130)			(130)
Cash dividends declared on common stock				(147)
Net change in postretirement benefit plans, net of tax	(508)				(508)
Net foreign currency translation adjustment					(40)
Retained Distribution		(4,409)
Retained Distribution under postretirement benefit plans		1,714
Retained Distribution under foreign currency translation adjustment		$ (333)
Net change in unrealized gains on investment securities, net of tax	(12)				(12)
Net change in common stock	1
Net change in retained earnings	(4,589)
Net change in accumulated other comprehensive income	821
Postretirement benefit plans, ending balance at Dec. 31, 2011	153				(153)
Cumulative translation adjustments, ending balance at Dec. 31, 2011	(97)				(97)
Unrealized gain on investment securities, ending balance at Dec. 31, 2011	(1)				$ (1)
Common stock, ending balance at Dec. 31, 2011	694		$ 93	$ 852
Common stock, ending balance, shares at Dec. 31, 2011			93.1
Total accumulated other comprehensive loss	$ (251)

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies

NOTE 1

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies

Description of Business

ITT Corporation is a global industrial company specializing in the engineering and manufacture of critical components in the aerospace, transportation, energy and industrial markets. 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. ITT operates through four segments: Industrial Process consisting of industrial pumping and complementary equipment; Motion Technologies consisting of friction and shock & vibration equipment; Interconnect Solutions (ICS) consisting of electronic connectors; and Control Technologies consisting of fluid handling, motion control and vibration and shock isolation products. Financial information for our segments is presented in Note 22, “Segment Information.”

Basis of Presentation

On October 31, 2011, ITT Corporation made a pro rata distribution to its shareholders consisting of all the shares of common stock of Xylem Inc. (Xylem, previously referred to as the water-related businesses), which held ITT’s interests in the water businesses, and all the shares of common stock of Exelis Inc. (Exelis, previously referred to as ITT’s Defense & Information Solutions segment), which held ITT’s interests in the defense businesses (the Distribution). These financial statements have been reclassified to present the financial position, results of operations and cash flows of Exelis and Xylem as discontinued operations in all periods presented. For further information on the discontinued operations of Exelis and Xylem, see Note 4, “Discontinued Operations.” In addition, in conjunction with the Distribution, we implemented changes to our management structure and changed our segment reporting structure.

On October 31, 2011, we completed a one-for-two reverse stock split (1:2 Reverse Stock Split) of ITT’s issued and outstanding common stock, as approved by our Board of Directors. The par value of our common stock remained $1 per share following the 1:2 Reverse Stock Split. All common stock shares authorized, issued and outstanding, as well as share prices and earnings per share give effect to the 1:2 Reverse Stock Split in all periods presented.

In addition to the reclassification effects from the Distribution, certain other prior year amounts have been reclassified to conform to the current year presentation as described within these Notes to the Consolidated Financial Statements.

Significant Accounting Policies

Use of Estimates

The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). 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, revenue recognition, income tax contingency accruals and valuation allowances, postretirement obligations and assets, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates.

Principles of Consolidation

Our consolidated financial statements include the accounts of all majority-owned subsidiaries. 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 or distribution. All intercompany transactions have been eliminated.

Revenue Recognition

Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions.

Revenue is recognized when persuasive evidence of an arrangement exists, the sales 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 and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria.

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. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period.

Effective January 1, 2011, we adopted amended guidance on the accounting for revenue arrangements that contain multiple elements. The amended guidance was applied to new arrangements or arrangements materially modified on or after January 1, 2011 on a prospective basis.

For multiple deliverable arrangements entered into or materially modified on or after January 1, 2011, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer 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 selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available.

The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied.

For arrangements entered into prior to January 1, 2011 and not subsequently materially modified, if objective and reliable evidence of fair value existed for all of the units of accounting identified, the transaction consideration was allocated based on the relative fair values of the units of accounting. Alternatively, when the evidence of fair value existed for the delivered items, but not the undelivered items, the arrangement consideration was allocated using the residual method.

We recognize revenue on certain design and build projects using the completed contract method. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied, and are recorded as a component of accrued liabilities.

During the performance of design and build arrangements, estimated final contract prices and costs are reviewed quarterly. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses 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.

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.

Product Warranties

Our standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim.

Asbestos-Related Liabilities and Assets

ITT has been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. In light of the uncertainties and variables inherent in the long-term projection of the Company’s 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.

The Company has also recorded an asbestos-related asset, comprised predominantly of insurance receivables and expected recoveries from other responsible parties. The asbestos-related 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. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers and other contractual agreements with responsible parties, as well as a review of expected levels of future cost recovery, 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.

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. Provided the quarterly review does not indicate a more detailed evaluation of our asbestos exposure is required, each quarter, we record a net asbestos expense to maintain a rolling 10-year time horizon. 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, including a reassessment of the time horizon over which a reasonable estimate of unasserted claims can be projected.

Postretirement Benefit Plans

ITT sponsors pension and other employee-related defined benefit plans (collectively, postretirement benefit plans) for certain employees around the world. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, age at retirement or termination, and medical cost trends. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental and developed in consultation with our actuaries and other advisors. The major assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, 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. Actual results that differ from our assumptions are accumulated and amortized over the estimated future working life of the plan participants. 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.

The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. See Note 17, “Postretirement Benefit Plans,” for further information on the measurement of plan assets.

The funded status 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 (loss) income are recorded in accumulated other comprehensive income (loss) within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost.

Stock-Based Compensation

Stock-based awards issued to employees and non-employee directors include non-qualified stock options, restricted stock awards, restricted stock units, and certain liability-based awards. Compensation costs resulting from share-based payment transactions are recognized primarily within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis. The amount of compensation recognized includes an adjustment 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.

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 tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. We record a valuation allowance against our deferred tax assets when uncertainty regarding their realizability exists.

In assessing the need for a valuation allowance, we consider all available evidence, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, and estimated future taxable income. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. The Company’s management assesses available positive and negative evidence regarding the realizability of its deferred tax assets, and records a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. To form a conclusion, management considers positive evidence in the form of reversing temporary differences, projections of future taxable income and tax planning strategies, and negative evidence such as recent history of losses. Beginning in 2011, the Company is in a cumulative three-year loss position, which we weighted as a significant source of negative evidence indicating the need for a valuation allowance on our net deferred tax assets. Since the Company was in a three-year cumulative loss position at the end of 2011, management determined that the size and frequency of the losses from continuing operations in recent years and the uncertainty associated with projecting future taxable income supported the conclusion that a valuation allowance was required to reduce its deferred tax assets. If ITT achieves profitability in future periods, then management will evaluate whether its recent history of profitability constitutes sufficient positive evidence to support a reversal of a portion, or all, of the remaining valuation allowance.

We have not provided deferred tax liabilities for the impact of U.S income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the United States. We have recorded deferred tax liabilities for the impact of U.S income taxes on undistributed foreign earnings which are not indefinitely reinvested outside the United States. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations.

Furthermore, we recognize the tax benefit from an uncertain tax position 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 in consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of the proceedings (or negotiations) with the taxing authorities. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate settlement.

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. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock and unvested restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect.

Cash and Cash Equivalents

ITT considers all highly liquid investments purchased with an original maturity or remaining maturity at time of purchase of three months or less to be cash equivalents.

Concentrations of Credit Risk

Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents and, accounts receivable from trade customers. We maintain cash and cash equivalents with various financial institutions located in 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.

Credit risk with respect to 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, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value. Inventory write-downs are measured as the difference between the cost of the inventory and market based assumptions about future demand and is charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 17.6% and 12.8% of total 2011 and 2010 inventories, respectively. We have a LIFO reserve of $8 and $7 recorded as of December 31, 2011 and 2010, respectively.

Cost of sales is reported using standard cost techniques with full overhead absorption, which generally approximates actual cost.

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 estimated useful lives of the assets 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. Repairs and maintenance costs are expensed as incurred.

The Company enters into operating and capital leases for the use of premises and equipment. Rent expense related to operating lease agreements are recorded on a straight line basis, considering lease incentives and escalating rental payments.

Capitalized Internal Use Software

Costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, 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.

Investments in Corporate-Owned Life Insurance

Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of each balance sheet date. The total amounts related to the Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $79 and $76 at December 31, 2011 and 2010, respectively. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses and were not material in the years ended December 31, 2011, 2010 and 2009. These investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2011 and 2010 were approximately $20 and $16, respectively, however, the COLI policies do not represent a committed funding source for these obligations and as such they are subject to claims from creditors, and we can designate them for another purpose at any time.

Long-Lived Asset Impairment

Long-lived assets, including intangible assets with finite lives and capitalized internal use software, 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 generally 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 rather 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 fiscal 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 any. 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.

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.

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 current information.

Environmental Liabilities

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 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. 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.

Foreign Currency Translation

The national currencies of our foreign subsidiaries are generally the functional currencies. Balance sheet accounts are translated at the exchange rate in effect at the end of each period, except for equity which is translated at historical rates; income statement accounts are translated at the average rates of exchange prevailing during the period. Gains and losses resulting from foreign currency translation are reflected in the cumulative translation adjustments component of shareholders’ equity.

For foreign subsidiaries that do not use the local currency as their functional currency, foreign currency assets and liabilities are remeasured to the foreign subsidiary’s functional currency using end of period exchange rates, except for nonmonetary balance sheet accounts, which are remeasured at historical exchange rates.

For transactions denominated in other than the functional currency, revenue and expenses are remeasured at average exchange rates in effect during the reporting period in which the transactions occurred, except for expenses related to nonmonetary assets and liabilities. Transaction gains or losses from foreign currency remeasurement are reported in general and administrative expenses.

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 prioritize the inputs to valuation techniques used to measure fair value into three broad levels based on the observability of the input. 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 an asset or 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 December 31, 2011, 2010 and 2009. Such contracts involve the risk of non-performance by the counterparty. 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.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2011

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

NOTE 2

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2010, the Financial Accounting Standards Board (FASB) issued additional guidance applicable to the testing of goodwill for potential 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 (a comparison between the carrying amount of a reporting unit’s goodwill to its implied fair value) if it is more likely than not that a goodwill impairment exists, considering any adverse qualitative factors. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. As of the date of our annual and interim goodwill impairment tests, none of our reporting units were affected by the application of this guidance as each reporting unit had a carrying amount that exceeded zero.

In April 2010, the FASB issued 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. On January 1, 2011, we adopted the new guidance on a prospective basis. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows.

In October 2009, the FASB issued amended guidance on the accounting for revenue arrangements that contain multiple elements by eliminating the criteria that objective and reliable evidence of fair value for undelivered products or services needs to exist in order to be able to account separately for deliverables and eliminating the use of the residual method of allocating arrangement consideration. 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.

We adopted the new multiple element guidance effective January 1, 2011 for new arrangements entered into or arrangements materially modified on or after that date on a prospective basis. The adoption of the new multiple element guidance did not result in a material change in either the units of accounting or the pattern or timing of revenue recognition. Additionally, the adoption of the revised multiple element arrangement guidance did not have a material impact on our financial position, results of operations or cash flows.

In October 2009, the FASB 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 for multiple element arrangements above. We adopted the provisions of this guidance for new or materially modified arrangements entered into on or after January 1, 2011 on a prospective basis. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows.

Accounting Pronouncements Not Yet Adopted

In September 2011, the FASB provided companies with the option to make an initial qualitative evaluation, based on the entity’s events and circumstances, to determine the likelihood of goodwill impairment. The result of this qualitative assessment determines whether it is necessary to perform the currently required two-step impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a company would be required to perform the two-step impairment test. This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The Company could elect to apply the option in future goodwill impairment tests; however, the amendments are not expected to have a material effect on the Company’s Consolidated Financial Statements.

In May 2011, the FASB issued guidance intended to achieve common fair value measurements and related disclosures between U.S. GAAP and international accounting standards. The amendments primarily clarify existing fair value guidance and are not intended to change the application of existing fair value measurement guidance. However, the amendments include certain instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This guidance is effective for the periods beginning after December 15, 2011 and early application is prohibited. We will adopt these amendments on January 1, 2012; however, the requirements are not expected to have a material effect on the Company’s Consolidated Financial Statements.

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References + Details

Company Transformation

12 Months Ended

Dec. 31, 2011

Company Transformation [Abstract]

Company Transformation

NOTE 3

Company Transformation

As mentioned in Note 1, on October 31, 2011, the Company completed the legal and structural separation of Exelis and Xylem from the Company into two independent, publicly traded companies via a tax-free Distribution to shareholders. The Distribution was made pursuant to a Distribution Agreement, dated October 25, 2011, among ITT, Exelis and Xylem (the Distribution Agreement). With the completion of these separations, the Company disposed of its water-related businesses and Defense segment in their entirety and ceased to consolidate their financial position and results of operations in its consolidated financial statements. Accordingly, the Company has presented the financial position and results of operations of its former water-related businesses and Defense segment as discontinued operations in the consolidated financial statements for all periods presented. See Note 4, “Discontinued Operations,” for additional information. The water-related businesses include the Water & Wastewater division, including its analytical instrumentation component, and the Residential & Commercial Water division previously reported within the Fluid Technology segment, as well as the Flow Control division that was previously reported within the Motion & Flow segment. The Industrial Process division, which was previously reported within the Fluid Technology segment, was not included in the Distribution and is now reported as a segment of ITT.

During 2011, we recognized pre-tax expenses of $636 in connection with activities taken to complete the Distribution and to create the revised organizational structure (referred to herein as Transformation costs). We have presented $396 of the pre-tax transformation costs within income from continuing operations and $240 within income from discontinued operations. Amounts presented within discontinued operations are costs directly related to the Distribution and provide no future benefit to the Company. The components of transformation costs incurred during 2011 are presented below.


	Continuing Operations				Discontinued Operations				Total
Loss on extinguishment of debt (see Note 16)		$	297			$	–			$	297
Advisory fees			–				139				139
Non-cash asset impairment^(a)			57				8				65
IT costs			–				46				46
Employee retention and other compensation costs^(b)			37				20				57
Lease termination and other real estate costs			4				10				14
Other costs			1				17				18

Transformation costs before income tax expense			396				240				636
Tax-related separation costs			4				7				11
Tax benefit			(143	)			(74	)			(217	)

Total transformation costs, net of tax benefit		$	257			$	173			$	430

(a)	Includes a $55 million non-cash impairment charge related to a decision to discontinue development of an information technology consolidation initiative.

(b)	Includes $17 of compensation costs recognized within continuing operations in connection with the retirement of Steven R. Loranger, our former Chairman, President and Chief Executive Officer in October 2011.

The table included below provides a rollforward of the accrual for Transformation costs for the year ended 2011.


Transformation accrual – January 1	$	2
Charges for actions during the period:
Continuing operations		396
Discontinued operations		240
Cash payments		(559	)
Asset impairment and other non-cash charges, net		(45	)

Transformation accrual – December 31	$	34

Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

NOTE 4

Discontinued Operations

On October 31, 2011, the Company completed the Distribution of Exelis and Xylem (see Note 1). ITT was designated as the accounting and legal spinnor with respect to the Distribution. In connection with the Distribution, ITT received a net cash transfer (the Contribution) of $683 and $988 from Exelis and Xylem, respectively. No gain or loss was recognized in connection with the Distribution. While we are a party to a Distribution Agreement and several other agreements, including a Tax Matters Agreement, Benefits and Compensation Matters Agreement and Master Transition Services Agreement, we have determined we do not have significant continuing involvement in the operations of Xylem or Exelis, nor do we expect significant continuing cash flows from Exelis or Xylem. As a result, the operating results of Exelis and Xylem through the date of the Distribution have been classified in the consolidated financial statements as discontinued operations for all periods presented.

During 2010 we sold CAS, Inc. (CAS), a component of our prior Defense & Information Solutions 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 proceeds from the sale of $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 2010 and 2009 periods.

Interest expense was not allocated to the divested businesses for any of the periods presented.

Amounts presented for 2010 and 2009 have been adjusted to reflect certain immaterial corrections, primarily relating to income taxes, to the amounts previously reported in the consolidated financial statements. See Note 23, “Immaterial Corrections,” for further information.

The tables below provides the operating results of discontinued operations through the date of disposal or distribution and certain Transformation costs that were incurred by ITT but qualified for classification within discontinued operations.


Year Ended 2011	Exelis			Xylem			Other^(b)				Total
Revenue		$	4,916		$	3,107		$	–			$	8,023
Transformation costs			31			75			134				240
Earnings (loss) before income taxes			473			321			(108	)			686
Income tax expense (benefit)			194			70			(26	)			238
Income (loss) from discontinued operations		$	279		$	251		$	(82	)		$	448


Year Ended 2010	Exelis^(a)			Xylem			CAS			Other^(b)				Total
Revenue		$	5,893		$	3,192		$	160		$	–			$	9,245
Earnings before income taxes			718			395			13			12				1,138
Gain on sale of disposal before tax			–			–			125			–				125
Income tax expense			251			51			–			25				327
Income (loss) from discontinued operations		$	467		$	344		$	138		$	(13	)		$	936


Year Ended 2009	Exelis^(a)			Xylem			CAS			Other^(b)				Total
Revenue		$	6,059		$	2,839		$	231		$	–			$	9,129
Earnings (loss) before income taxes			727			285			15			(12	)			1,015
Income tax expense			253			14			6			2				275
Income (loss) from discontinued operations		$	474		$	271		$	9		$	(14	)		$	740

(a)	CAS was a component of our Defense and Information Solutions business, which was distributed as Exelis. The table above presents Exelis without CAS, which was disposed during 2010.

(b)

Amounts presented in the “Other” column within the tables above relate to various divested ITT businesses accounted for as discontinued operations in the year of divestiture for which legacy liabilities remain, as well as certain Transformation costs which were directly related to the Distribution and provide no future benefit to the Company. See Note 3, “Company Transformation” for further information.

The table below provides the major components of assets and liabilities at December 31, 2010 that were included in the Distribution and includes those assets and liabilities that were distributed to Exelis and Xylem which were not part of their historical operations.


	Exelis			Xylem			Total
Cash and cash equivalents		$	18		$	808		$	826
Receivables, net			958			690			1,648
Inventories, net			239			389			628
Other current assets			188			167			355

Total current assets			1,403			2,054			3,457

Plant, Property and Equipment, net			462			465			927
Goodwill			2,156			1,617			3,773
Other intangible assets			258			416			674
Other non-current assets			243			248			491

Total assets			4,522			4,800			9,322

Accounts payable			326			321			647
Accrued liabilities and other current liabilities			884			361			1,245

Total current liabilities			1,210			682			1,892

Postretirement benefits			1,223			257			1,480
Other non-current liabilities			113			324			437

Total liabilities		$	2,546		$	1,263		$	3,809

In order to effect the Distribution and govern ITT’s relationship with Exelis and Xylem after the Distribution, ITT entered into a distribution agreement and several other agreements, including a tax matters agreement, employee benefits and compensation agreement and master transition services agreement. Information on the agreements utilized to effectuate the Distribution are provided below.

Distribution Agreement

The Distribution Agreement between ITT and Exelis and Xylem contains the key provisions relating to the separation of the businesses of Exelis and Xylem from ITT and the distribution of the shares of Exelis and Xylem common stock to our shareholders. The Distribution Agreement provides the framework for the allocation, transfer and assumption of assets and liabilities among ITT, Exelis and Xylem as well as the settlement or extinguishment of certain liabilities and other obligations between and among ITT, Exelis and Xylem. Under the Distribution Agreement, we agreed to indemnify Exelis and Xylem and their respective subsidiaries and affiliates, subject to limited exceptions with respect to certain employee claims, against claims and liabilities related to the past operation of ITT’s business (other than the liabilities of the divested businesses) and Exelis and Xylem agreed to indemnify us against claims and liabilities related to their respective businesses. The Distribution Agreement establishes that certain liabilities, e.g., the bond litigation, referenced in Note 20, “Commitments and Contingencies,” will be shared 21% to ITT, 40% to Exelis, and 39% to Xylem.

In connection with the Distribution, ITT retained certain material contingent legacy liabilities involving asbestos and environmental matters. See Note 20, “Commitments and Contingencies,” for information regarding asbestos and environmental related contingencies.

Tax Matters Agreement

On October 25, 2011, we entered into a Tax Matters Agreement with Exelis and Xylem that governs the respective rights, responsibilities and obligations of the companies after the Distribution with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. Federal, state, local and foreign income taxes, other tax matters and related tax returns. Exelis and Xylem have liability with ITT to the U.S. Internal Revenue Service (IRS) for the consolidated U.S. Federal income taxes of the ITT consolidated group relating to the taxable periods in which Exelis and Xylem were part of that group. However, the Tax Matters Agreement specifies the portion, if any, of this tax liability for which ITT, Exelis and Xylem will bear responsibility, and ITT, Exelis and Xylem agreed to indemnify each other against any amounts for which they are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the Distribution is determined to not be tax-free. The Tax Matters Agreement provides for certain covenants that may restrict our ability to pursue strategic or other transactions that otherwise could maximize the value of our business and may discourage or delay a change of control that may be considered favorable. Though valid as between the parties, the Tax Matters Agreement will not be binding on the IRS.

Pursuant to the Tax Matters Agreement, as the shared income tax liabilities are settled, ITT will make payments up to certain specified thresholds, with payments in excess of those specified thresholds shared among ITT, Exelis, and Xylem. If payments to the taxing authorities are less than certain specified thresholds, ITT will make payments up to the remaining specified thresholds to Exelis and Xylem. Settlement is expected to occur as the audit process by applicable taxing authorities is completed for the impacted years and cash payments are made. Given the nature of the shared tax liabilities, the maximum amount of potential future payments is not determinable. Any such cash payments, when they occur, will reduce the liability for uncertain tax positions as such payments represent an equivalent reduction of risk. At December 31, 2011, ITT’s accrual for uncertain tax positions includes amounts related to certain shared tax liabilities; however, no receivables from Exelis or Xylem have been recorded as our estimate of their portion of the shared tax liabilities is not more than the amounts currently accrued for the uncertain tax position. If our estimate of exposures to the shared tax liabilities increases above the specified threshold, a receivable would be recorded. At December 31, 2011, there is a tax indemnification liability recorded of $4 due to Xylem.

Adjustments in the future for the impact of filing final income tax returns in certain jurisdictions where those returns include a combination of ITT, Exelis and Xylem legal entities and for certain amended income tax returns for the periods prior to the Distribution may be recorded to either shareholders’ equity or the statement of income depending on the specific item giving rise to the adjustment.

Benefits and Compensation Matters Agreement

On October 25, 2011, we entered into a Benefits and Compensation Matters Agreement with Exelis and Xylem that governs the respective rights, responsibilities and obligations of Exelis, Xylem and ITT after the Distribution with respect to transferred employees, defined benefit pension plans, defined contribution pension plans, nonqualified pension plans, employee health and welfare benefit plans, incentive plans, corporate-owned life insurance, stock equity awards, foreign benefit plans, director plans and collective bargaining agreements. The Benefits and Compensation Matters Agreement provides for the allocation and treatment of assets and liabilities arising out of incentive plans, pension plans and employee welfare benefit programs in which Exelis and Xylem employees participated prior to the Distribution. Generally, Exelis and Xylem assumed or retained sponsorship of, and liabilities relating to, employee compensation and benefit programs relating to Exelis and Xylem current employees.

The Benefits and Compensation Matters Agreement also provided that outstanding ITT equity awards would be equitably adjusted in connection with the Distribution. All outstanding ITT equity awards held by employees of Exelis as of the Distribution Date were substituted for Exelis equity awards and all outstanding ITT equity awards held by employees of Xylem as of the Distribution Date were substituted for Xylem equity awards. As described in Note 18, “Long-Term Incentive Employee Compensation,” the substitution preserved the economic value of the cancelled ITT equity awards for employees of Exelis and Xylem as of the Distribution Date. Subject to the applicable transition period with respect to certain benefit plans or programs, after the Distribution, employees of Exelis and Xylem no longer participate in ITT’s plans or programs, and Exelis and Xylem have established or maintained plans or programs for their employees.

Master Transition Services Agreement

On October 25, 2011, we entered into a Master Transition Services Agreement with Exelis and Xylem, under which each of Exelis and Xylem or their respective affiliates provide us with certain services (including information technology, financial, procurement and human resource services, benefits support services and other specified services), and we or certain of our affiliates provide each of Exelis and Xylem certain services (including information technology, human resources services and other specified services). These services will initially be provided at cost with scheduled, escalating increases to up to cost plus 10% and generally extend for a period of 3 to 24 months and are intended to help ensure an orderly transition for each of Exelis, Xylem and ITT following the Distribution.

During November and December of 2011, we billed Exelis and Xylem approximately $22, primarily relating to active employee health benefits which continued to be administered by ITT. On January 1, 2012, the administration of the employee health benefit plans was transferred to Exelis and Xylem. Total billings by Exelis and Xylem to ITT, following the Distribution, amount to less than $1. As of December 31, 2011, we have an aggregate receivable and payable, associated with transactions related to the Master Transition Services Agreement, of less than $1 each.

Subcontract Pending Novation

On October 31, 2011, we entered into a Subcontract Agreement Pending Novation with Exelis through which ITT engaged Exelis as a subcontractor for approximately 425 U.S. government contracts. Exelis will be obligated to directly perform to the contract specifications to the satisfaction of the U.S. Government as if the contracts had been novated. The Subcontract Agreement Pending Novation will remain in effect until the earlier of the U.S. Government’s agreement to novate is completed or performance under the contract is completed. ITT and Exelis are working with the U.S. Government to finalize the novation of the underlying contracts and do not expect any disruptions as a result of this process.

All rights and benefits conferred or accruing under the contracts pending novation inure to Exelis. Pursuant to the terms of the Subcontract Agreement Pending Novation, ITT is obligated to immediately deposit all proceeds it receives under such government contracts into a bank account controlled by Exelis. Exelis has indemnified ITT against claims and liabilities related to the U.S. Government contracts pending novation arising in connection with performance under the contracts.

While the novation is pending, ITT does not have the ability to significantly influence Exelis’ performance under the contracts as Exelis acts as the contracted party and has assumed control of all legal matters, including with respect to audits performed by the U.S. Government. Further, ITT has granted Exelis the right to, among other things, (i) prepare, execute and submit invoices in the name of ITT, (ii) send correspondence relating to matters under such contract in the name of ITT and (iii) otherwise exercise all rights in respect of such contract in the name of ITT. The U.S. government was billed approximately $250 from the Distribution Date through December 31, 2011 for contracts awaiting novation. Revenues and costs resulting from activities performed by Exelis on these contracts after the Distribution Date have been recorded on a net basis in ITT’s financial statements, resulting in no effect on any amounts reported in ITT’s financial statements.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 5
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

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-SubTopic 20
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-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 3
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

+ Details

Acquisitions

12 Months Ended

Dec. 31, 2011

Acquisitions [Abstract]

Acquisitions

NOTE 5

Acquisitions

During 2011, we spent $16, 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 Blakers Pump Engineers Unit Trust (Blakers) on October 27, 2011 for $15, net of cash acquired. Blakers, reported within the Industrial Process segment, is a supplier of process and industrial pumping equipment serving customers in the oil & gas, mining, power, and general markets.

During 2010, we spent $10, net of cash acquired, on the acquisition of Canberra Pumps do Brasil (Canberra). Canberra, a manufacturer of pump equipment serving customers in the chemical, pulp and paper, and general industry pump markets. Canberra is reported within the Industrial Process segment.

Our financial statements include the results of operations and cash flows from each of our acquisitions prospectively from their respective acquisition date; however, these results were not material during the years ended December 31, 2011, 2010 or 2009 and accordingly, pro forma results of operations have not been presented.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 67-73
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Restructuring and Asset Impairment Charges, net

12 Months Ended

Dec. 31, 2011

Restructuring and Asset Impairment Charges [Abstract]

Restructuring and Asset Impairment Charges

NOTE 6

Restructuring and Asset Impairment Charges, net

The components of restructuring and asset impairment charges incurred during each of the previous three years ended December 31, 2011, excluding impairment charges of $55 incurred during 2011 in connection with the Distribution, are presented below.


	2011			2010				2009
By component:
Severance charges		$	4		$	2			$	40
Other restructuring charges			1			2				5
Reversal of restructuring accruals			–			(1	)			(2	)

Restructuring and asset impairment charge, net		$	5		$	3			$	43

By segment:
Industrial Process		$	–		$	1			$	11
Motion Technologies			–			–				21
Interconnect Solutions			3			–				7
Control Technologies			2			2				3
Corporate and Other			–			–				1

The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for the years ended December 31, 2011 and 2010.


	2011				2010
Restructuring accruals – January 1		$	6			$	33
Charges for plans initiated during the year			3				2
Charges for plans initiated in prior years			2				2
Cash payments			(7	)			(27	)
Asset write-offs			–				(1	)
Reversal of accruals			–				(1	)
Foreign exchange translation and other			–				(2	)

Restructuring accruals – December 31		$	4			$	6

By accrual type:
Severance accrual		$	4			$	5
Facility carrying and other costs accrual			–				1

By segment:
Industrial Process		$	–			$	–
Motion Technologies			1				4
Interconnect Solutions			3				–
Control Technologies			–				1
Corporate and Other			–				1

The following is a rollforward of employee position eliminations associated with restructuring activities for the years ended December 31, 2011 and 2010:


	2011			2010
Planned reductions – January 1		113			257
Additional planned reductions		52			75
Actual reductions		(136	)		(219	)

Planned reductions – December 31		29			113

Strategic Relocation of Manufacturing Operations

During the fourth quarter of 2009, we initiated an action within Motion Technologies to relocate certain of our production operations to lower cost regions. This action resulted in $21 of total restructuring charges, primarily related to employee severance costs associated with the total headcount reduction of 175, including 153 factory workers, 18 office workers and 4 management employees. This action was completed during 2010.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

NOTE 7

Income Taxes

For each of the three years ended December 31, 2011, the tax data related to the loss from continuing operations is as follows:


	2011				2010				2009
Income components:
United States		$	(466	)		$	(395	)		$	(306	)
International			148				119				98

Total pre-tax loss from continuing operations		$	(318	)		$	(276	)		$	(208	)

Income tax expense (benefit) components:
Current income tax expense (benefit):
United States – federal		$	(80	)		$	(61	)		$	9
United States – state and local			(12	)			–				(2	)
International			49				28				18

Total current income tax (benefit) expense			(43	)			(33	)			25

Deferred income tax expense (benefit):
United States – federal			319				(100	)			(115	)
United States – state and local			(15	)			(15	)			(9	)
International			(1	)			4				2

Total deferred income tax expense (benefit)			303				(111	)			(122	)

Total income tax expense (benefit)		$	260			$	(144	)		$	(97	)
Effective income tax rate			(81.8	)%			52.2	%			46.6	%

A reconciliation of the tax expense (benefit) for continuing operations from the U.S. statutory income tax rate to the effective income tax rate as reported is as follows for each of the three years ended December 31, 2011:


	2011			2010			2009
Tax provision at U.S. statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		4.2			2.2			1.9
State and local income tax		0.5			5.6			5.8
Tax on undistributed foreign earnings		(21.8	)		–			–
Change in state tax rate		9.7			–			–
Valuation allowance on realizability of deferred tax assets		(106.7	)		14.6			6.6
U.S. permanent items		–			–			(6.5	)
Audit settlements		–			–			(1.0	)
Medicare		0.4			(4.2	)		–
U.S. tax on foreign earnings		(6.8	)		(16.0	)		–
Tax credits		7.2			12.6			5.3
Other adjustments		(3.5	)		2.4			(0.5	)

Effective income tax rate		(81.8	)%		52.2	%		46.6	%

We recorded the valuation allowance in 2011 primarily because 2011 operating results produced a cumulative three-year loss, which is considered a significant factor that is difficult to overcome when determining whether a valuation allowance is required. Since the Company was in a three-year cumulative loss position at the end of 2011, management determined that the size and frequency of the losses from continuing operations in recent years and the uncertainty associated with projecting future taxable income supported the conclusion that a valuation allowance was required to reduce its deferred tax assets.

As a result of the Distribution and its impacts on the Company’s expected liquidity, investment opportunities and other factors, the Company determined that certain earnings generated in Luxemburg, Japan, and South Korea were no longer considered to be indefinitely reinvested. As a result of the change in intent, the Company recorded $69 of income tax expense on these undistributed foreign earnings. However, as of December 31, 2011, we have not provided for deferred taxes on the remaining excess of financial reporting over tax basis of investments in foreign subsidiaries in the amount of $370 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.

As a consequence of the Distribution, certain state deferred tax assets were revalued based on enacted tax rates using different state apportionment factors, effectively increasing the future state tax rates at which these deferred tax assets will be benefitted resulting in a $31 income tax benefit.

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:


	2011				2010
Deferred Tax Assets:
Accruals		$	355			$	303
Employee benefits			135				69
Credit carryforwards			35				7
Loss carryforwards			65				57
Other			40				60

Subtotal			630				496
Valuation allowance			(438	)			(28	)

Net deferred tax assets		$	192			$	468

Deferred Tax Liabilities:
Undistributed earnings		$	(69	)		$	–
Intangibles			(51	)			(50	)
Accelerated depreciation			(21	)			(23	)
Investment			(1	)			(1	)

Total deferred tax liabilities		$	(142	)		$	(74	)

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


	2011				2010
Current assets		$	25			$	85
Non-current assets			45				320
Current liabilities			(2	)			–
Other non-current liabilities			(18	)			(11	)

Net deferred taxes		$	50			$	394

We have the following attributes available for utilization:


ATTRIBUTE	AMOUNT			FIRST YEAR OF EXPIRATION
U.S. federal net operating losses		$	85		2031
U.S. state net operating losses			2,519		2012
Federal and state capital losses			13		2013
U.S. federal tax credits			33		2012
U.S. state tax credits			12		2012
Foreign net operating losses			87		2012

As of December 31, 2011, a valuation allowance of $438 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 2011, the valuation allowance increased by $410 resulting from the following: an increase of $340 attributable to U.S. federal and state net noncurrent temporary differences, an increase of $57 attributable to U.S. state net operating loss and credit carryforwards, an increase of $12 attributable to foreign net operating loss carryforwards and foreign investments, and an increase of $1 attributable to U.S. federal capital loss carryforwards.

Shareholders’ equity at December 31, 2011 and 2010 reflects excess income tax benefits related to stock-based compensation in 2011 and 2010 of approximately $7 and $6, respectively.

Uncertain Tax Positions

We recognize income 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 for each of the three years ended December 31, 2011 is as follows:


	2011				2010				2009
Unrecognized tax benefits – January 1		$	169			$	149			$	126
Additions for:
Prior year tax positions			1				17				28
Current year tax positions			15				48				2
Purchase accounting			–				5				–
Reductions for:
Prior year tax positions			(21	)			(38	)			(6	)
Settlements			–				(12	)			(1	)

Unrecognized tax benefits – December 31		$	164			$	169			$	149

As of December 31, 2011, $92 of the unrecognized tax benefits would affect the effective tax rate if realized. Included in the balance at December 31, 2011 are tax positions of $72, which, because of deferred tax accounting would not impact the annual effective rate, but could accelerate the payment of cash to the taxing authority. See Note 4, “Discontinued Operations” for discussion of the Tax Matters Agreement.

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
Germany		2006
Italy		2005
Netherlands		2008
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 2011 and 2010, we recognized less than $1 in net interest expense related to tax matters. We had $18 and $14 of interest accrued as of December 31, 2011 and 2010, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 8

Earnings Per Share

The following table provides a reconciliation of the data used in the calculation of basic and diluted loss per share computations for loss from continuing operations for the years ended December 31, 2011, 2010 and 2009. The presentation gives effect to the 1:2 Reverse Stock Split, which occurred after market close on October 31, 2011.


	2011				2010				2009
Loss from continuing operations		$	(578	)		$	(132	)		$	(111	)
Weighted average common shares outstanding			92.2				91.2				90.5
Add: Weighted average restricted stock awards outstanding^(a)			0.6				0.8				0.8

Basic weighted average common shares outstanding			92.8				92.0				91.3
Add: Dilutive impact of stock options			N/A				N/A				N/A

Diluted weighted average common shares outstanding			92.8				92.0				91.3
Basic and diluted loss per share		$	(6.23	)		$	(1.44	)		$	(1.21	)

(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 loss per share because they were anti-dilutive were as follows:


	2011			2010			2009
Anti-dilutive stock options			2.1			1.7			1.5
Average exercise price^(b)		$	16.70		$	85.08		$	80.58

Years of expiration			2012- 2021			2012- 2020			2012- 2016

(b)	The decrease in average exercise price of anti-dilutive stock options from 2010 to 2011 resulted from the change in stock price of ITT common stock following the Distribution.

Receivables, Net

12 Months Ended

Dec. 31, 2011

Receivables, Net [Abstract]

Receivables, Net

NOTE 9

Receivables, Net


	2011				2010
Trade accounts receivable		$	361			$	305
Notes receivable			7				5
Other receivables			41				18

Receivables, gross			409				328
Allowance for doubtful accounts			(13	)			(13	)

Receivables, net		$	396			$	315

The following table displays an aggregate rollforward of the allowance for doubtful accounts, for the years ended December 31, 2011 and 2010.


	2011				2010				2009
Allowance for doubtful accounts – January 1		$	13			$	21			$	12
Charges (benefits) to income			2				(3	)			13
Write-offs			(1	)			(3	)			(3	)
Foreign currency and other			(1	)			(2	)			(1	)

Allowance for doubtful accounts – December 31		$	13			$	13			$	21

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524

+ Details

Inventories, Net

12 Months Ended

Dec. 31, 2011

Inventories, Net [Abstract]

Inventories, Net

NOTE 10

Inventories, Net


	2011				2010
Finished goods		$	62			$	62
Work in process			49				38
Raw materials			125				107

Total product inventory			236				207
Inventoried costs related to long-term contracts			65				44
Less – progress payments			(47	)			(33	)

Inventoried costs related to long-term contracts, net			18				11

Inventories, net		$	254			$	218

Other Current and Non-Current Assets

12 Months Ended

Dec. 31, 2011

Other Current and Non-Current Assets [Abstract]

Other Current and Non-Current Assets

NOTE 11

Other Current and Non-Current Assets


	2011			2010
Current deferred income taxes		$	25		$	85
Asbestos-related current assets			133			105
Income tax receivable			164			–
Other			100			38

Other current assets		$	422		$	228


Other employee benefit-related assets		$	79		$	76
Capitalized software costs			13			67
Other			29			38

Other non-current assets		$	121		$	181

As described in Note 3, “Company Transformation,” during the first quarter of 2011 we discontinued the development of an information technology consolidation initiative and recorded a capitalized software impairment charge of $55.

Plant, Property and Equipment, Net

12 Months Ended

Dec. 31, 2011

Plant, Property and Equipment, Net [Abstract]

Plant, Property and Equipment, Net

NOTE 12

Plant, Property and Equipment, Net


	2011				2010
Land and improvements		$	17			$	17
Buildings and improvements			163				164
Machinery and equipment			738				710
Furniture, fixtures and office equipment			62				59
Construction work in progress			46				38
Other			8				11

Plant, property and equipment, gross			1,034				999
Less – accumulated depreciation			(710	)			(700	)

Plant, property and equipment, net		$	324			$	299

Depreciation expense of $57, $52 and $54 was recognized in 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Goodwill and Other Intangible Assets, Net

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets, Net [Abstract]

Goodwill and Other Intangible Assets, Net

NOTE 13

Goodwill and Other Intangible Assets, Net

Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2011 and 2010 by segment are as follows:


	Industrial Process				Motion Technologies				Interconnect Solutions				Control Technologies			Total
Goodwill – January 1, 2010		$	184			$	52			$	72			$	198		$	506
Goodwill acquired			3				–				–				–			3
Foreign currency			1				(4	)			(2	)			–			(5	)

Goodwill – December 31, 2010			188				48				70				198			504
Goodwill acquired			8				–				3				–			11
Adjustments to purchase price allocations			(3	)			–				–				–			(3	)
Foreign currency			–				(1	)			(1	)			–			(2	)

Goodwill – December 31, 2011		$	193			$	47			$	72			$	198		$	510

Goodwill of $2,156 and $1,617 was disposed of during 2011 related to the Distribution of Exelis and Xylem, respectively. Goodwill of $76 was disposed of during 2010 related to the sale of CAS. See Note 4, “Discontinued Operations” for further information.

Based on the results of our annual impairment tests, performed as of October 1, 2011, and subsequent tests performed as of the Distribution Date for Exelis and Xylem, we determined that no impairment of goodwill existed as of either measurement date in 2011. 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 AMOUNT			ACCUMULATED AMORTIZATION				NET INTANGIBLES
Customer relationships		$	77		$	(24	)		$	53
Proprietary technology			20			(7	)			13
Trademarks			3			(1	)			2
Patents and other			5			(2	)			3
Indefinite-lived intangibles			17			–				17

Intangibles – December 31, 2011		$	122		$	(34	)		$	88

Customer and distributor relationships		$	74		$	(18	)		$	56
Proprietary technology			20			(5	)			15
Trademarks			3			(1	)			2
Patents and other			4			(2	)			2
Indefinite-lived intangibles			17			–				17

Intangibles – December 31, 2010		$	118		$	(26	)		$	92

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 2011 or 2010. 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 relationships, proprietary technology, trademarks, and patents and other are amortized over weighted average lives of approximately 14.3 years, 14.1 years, 7.4 years and 11.7 years, respectively.

Amortization expense related to intangible assets for 2011, 2010 and 2009 was $10, $8 and $8, respectively. Estimated amortization expense for each of the five succeeding years is as follows:


Year	Estimated Amortization Expense
2012		$	10
2013			9
2014			8
2015			7
2016			7

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accrued Liabilities and Other Non-Current Liabilities

12 Months Ended

Dec. 31, 2011

Accrued Liabilities and Other Non-Current Liabilities [Abstract]

Accrued Liabilities and Other Non-Current Liabilities

NOTE 14

Accrued Liabilities and Other Non-Current Liabilities


	2011			2010
Compensation and other employee-benefits		$	172		$	167
Asbestos-related liability			139			117
Customer-related liabilities			32			21
Accrued warranty costs			26			27
Accrued income taxes			23			24
Environmental and other legal matters			19			21
Other accrued liabilities			57			65

Accrued liabilities		$	468		$	442

Deferred income taxes and other tax-related accruals		$	136		$	129
Environmental			91			93
Compensation and other employee-related benefits			46			44
Product liability, guarantees and other legal matters			2			39
Other			20			20

Other non-current liabilities		$	295		$	325

Leases and Rentals

12 Months Ended

Dec. 31, 2011

Leases and Rentals [Abstract]

Leases and Rentals

NOTE 15

Leases and Rentals

ITT leases certain offices, manufacturing buildings, land, machinery, automobiles, computers and other equipment. The majority of leases expire at various dates through 2027 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 $16, $19 and $25 for 2011, 2010 and 2009, respectively. Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2011 are shown below.


2012	$	17
2013		12
2014		10
2015		9
2016		8
2017 and thereafter		78

Total minimum lease payments	$	134

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References + Details

Debt

12 Months Ended

Dec. 31, 2011

Debt [Abstract]

Debt

NOTE 16

Debt


	2011			2010
Short-term loans		$	2		$	–
Current maturities of long-term debt and other			–			10
Short-term debt and current maturities of long-term debt			2			10
Non-current maturities of long-term debt			4			1,256
Non-current capital leases			–			57
Deferred gain on interest rate swaps			–			45
Unamortized discounts and debt issuance costs			–			(8	)
Long-term debt			4			1,350
Total debt		$	6		$	1,360

During 2011, we reclassified the presentation of amounts reported within the long-term debt balance sheet account as of December 31, 2010, related to non-current capital leases by reclassifying $57 from non-current maturities of long-term debt to non-current capital leases. This reclassification had no impact on amounts reported within the 2010 Consolidated Income Statements or net cash from financing activities within the Consolidated Statements of Cash Flows.

Revolving Credit Facility

On October 25, 2011, we entered into a competitive advance and revolving credit facility agreement (2011 Revolving Credit Agreement) with a consortium of third party lenders including JP Morgan Chase Bank, N.A., as administrative agent, and Citibank, N.A. as syndication agent. Upon its effectiveness at the Distribution, this agreement replaced our existing $1,500 three-year revolving credit facility due August 2013. The 2011 Revolving Credit Agreement provides for a four-year maturity with a one-year extension option upon satisfaction of certain conditions, and comprises an aggregate principal amount of up to $500 of (i) revolving extensions of credit (the revolving loans) outstanding at any time, (ii) competitive advance borrowing option which will be provided on an uncommitted competitive advance basis through an auction mechanism (the competitive advances), and (iii) letters of credit in a face amount up to $100 at any time outstanding. Subject to certain conditions, we are permitted to terminate permanently the total commitments and reduce commitments in minimum amounts of $10. We are also permitted, subject to certain conditions, to request that lenders increase the commitments under the facility by up to $200 for a maximum aggregate principal amount of $700. Voluntary prepayments are permitted in minimum amounts of $50.

At our election, the interest rate per annum applicable to the competitive advances will be based on either (i) a Eurodollar rate determined by reference to LIBOR, plus an applicable margin offered by the lender making such loans and accepted by us or (ii) a fixed percentage rate per annum specified by the lender making such loans. At our election, interest rate per annum applicable to the revolving loans will be based on either (i) a Eurodollar rate determined by reference to LIBOR, adjusted for statutory reserve requirements, plus an applicable margin or (ii) a fluctuating rate of interest determined by reference to the greatest of (a) the prime rate of JPMorgan Chase Bank, N.A., (b) the federal funds effective rate plus one-half of 1% or (c) the 1-month LIBO rate, adjusted for statutory reserve requirements, plus 1%, in each case, plus an applicable margin.

Our obligations under the credit facility are unconditionally guaranteed by each of our direct or indirect domestic subsidiaries.

The credit facility contains customary affirmative and negative covenants that, among other things, will limit or restrict our ability to: incur additional debt or issue guarantees; create liens; enter into certain sale and lease-back transactions; merge or consolidate with another person; sell, transfer, lease or otherwise dispose of assets; liquidate or dissolve; and enter into restrictive covenants. Additionally, the 2011 Revolving Credit Agreement requires us not to permit the ratio of consolidated total indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (leverage ratio) to exceed 3.00 to 1.00 at any time, or the ratio of consolidated EBITDA to consolidated interest expense (interest coverage ratio) to be less than 3.00 to 1.00. At December 31, 2011, our interest coverage ratio and leverage ratio were well in excess of the minimum requirements.

Long-Term Debt

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


				2010
	Interest Rate			Carrying Value			Fair Value
MATURITY DATE:
May 2014		4.90	%		$	500		$	538
May 2019		6.125	%			500			553
November 2025		7.40	%			250			311
August 2048		(a	)			1			1
December 2011 – 2014		4.70	%			66			69
Various 2011 – 2022		(b	)			6			6
					$	1,323		$	1,478

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

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

Redemption of 4.90% Senior Notes due 2014 and 6.125% Senior Notes due 2019

On September 20, 2011, ITT called all of its 4.90% Senior Notes due May 2014 (the 2014 Notes) and all of its 6.125% Senior Notes due May 2019 (the 2019 Notes). The 2014 and 2019 Notes were redeemed on October 20, 2011. The redemption price for the 2014 Notes was $1,098 per $1,000 par value, plus accrued interest, and the redemption price for the 2019 Notes was $1,235 per $1,000 par value, plus accrued interest. The redemption resulted in a loss on extinguishment of $167, plus incidental fees, which was recorded as a Transformation cost.

Tender Offer for 7.40% Debentures due 2025

On September 20, 2011, we commenced a cash tender offer to purchase up to $100 in principal of our 7.40% Debentures due November 2025 (the 2025 Notes). On October 19, 2011, the tender period expired and, $88 of principal was tendered. The tender offer resulted in a loss on extinguishment of $51 which was recorded as a Transformation cost.

Following the completion of the tender offer, on October 21, 2011, we extinguished the remaining $162 of principal on the 2025 Notes pursuant to the satisfaction and discharge provisions in the indenture relating to the 2025 Notes. In order to discharge the 2025 Notes, on October 20, 2011, we deposited $6 of cash and U.S. treasury securities with an aggregate purchase price of $263 in a trust account. As a result of the satisfaction and discharge, the 2025 Notes have been extinguished for accounting purposes and are no longer presented in ITT’s consolidated financial statements. The satisfaction and discharge resulted in a loss on extinguishment of approximately $107 which was recorded as a Transformation Cost.

Termination of Capital Lease

During the second quarter of 2011, we notified the lessor of our intent to terminate a sale leaseback agreement entered into in 2004 by repurchasing the leased property. The leased property includes five manufacturing and office facilities. The repurchase occurred on September 28, 2011 when ITT paid the lessor $66 million related to the capital lease obligation. The termination of the capital lease resulted in a charge of $5 which was recorded as a Transformation Cost. Four of the five properties were distributed to either Exelis or Xylem on the Distribution Date.

Other Actions Associated with Extinguishment of Debt

In connection with the debt extinguishment of $1,251, we recognized a previously deferred gain of $43 on a terminated interest rate swap and expensed previously deferred debt issuance costs and an unamortized debt discounts of $6. In addition, in September 2011 we entered into three forward-starting interest rate swaps and treasury lock to hedge certain exposure associated with the plan to extinguish the 2019 Notes and 2025 Notes. In October 2011, all four of the contracts matured and were settled in cash, resulting in a loss of $3.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2011

Postretirement Benefit Plans [Abstract]

Postretirement Benefit Plans

NOTE 17

Postretirement Benefit Plans

In connection with the Distribution, certain pension and other employee-related benefit plans (collectively, postretirement benefit plans) were contributed by ITT to Exelis and Xylem. Exelis and Xylem assumed all assets and liabilities of the contributed plans and became the plans’ sponsor on the date of the Distribution. Most significantly, Exelis became the plan sponsor of the former U.S. ITT Salaried Retirement Plan (SRP). ITT’s U.S salaried employees no longer accrue retirement benefits under SRP and all benefits accrued as of the Distribution date were frozen. Benefit payments to participants in the SRP that remained ITT employees following the Distribution will be made by Exelis. During 2011, 2010, and 2009, ITT recorded expenses of approximately $15, $9 and $4, respectively, related to the participation of ITT employees in the SRP. Included in the 2011 cost of ITT participation in the SRP is a curtailment charge of approximately $1 related to the reduction in benefits, including the effect of immediate recognition of prior service costs and the impact of special termination benefits. All assets and liabilities related to postretirement benefit plans that were contributed to Exelis and Xylem, including the SRP, are reflected in discontinued operations in the consolidated financial statements.

Effective at the date of Distribution, the ITT Corporation Retirement Savings Plan for Salaried Employees was created, which increased company contributions from a maximum of 3.5% of base pay to 6% or 7%, depending on age and years of service, of total eligible pay which includes base pay, overtime and bonuses. Additionally, for five years subsequent to the distribution, the Company will provide transition credits to certain employees up to 5% of eligible pay.

Defined Contribution Plans

Substantially all of ITT’s U.S. and certain international employees are eligible to participate in a defined contribution plan. 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. Company contributions charged to income amounted to $8, $7 and $5 for 2011, 2010 and 2009, respectively.

The ITT Stock Fund, an investment option under the ITT Corporation Retirement Savings Plan for Salaried Employees and the ITT Hourly 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 0.5 shares of ITT common stock at December 31, 2011. At the date of distribution, for each share of ITT common stock in the ITT Stock Fund, a share of common stock of each Exelis and Xylem was received. As of December 31, 2011, there were 0.4 and 1.1 shares of Exelis and Xylem, respectively, held in the ITT Corporation Retirement Savings Plan for Salaried Employees and ITT Hourly Savings Plan.

Defined Benefit Plans

ITT sponsors numerous defined benefit pension plans which have approximately 2,200 active participants, however, most of these plans have been closed to new participants for several years. As of December 31, 2011, of our total projected benefit obligation, the ITT Pension Plan for Bargaining Unit Employees Seneca Falls represented 28%, the ITT Consolidated Hourly Pension Plan represented 26%, other U.S. plans represented 30% and international pension plans represented 16%. The domestic plans are generally for hourly employees with a flat dollar benefit formula based on years of service. Foreign plan benefits are primarily determined based on participant years of service, future compensation, and age at retirement or termination.

ITT also provides health care and life insurance benefits for certain eligible U.S. employees upon retirement. In some cases, the plan is still open to new employees, but for the majority of our businesses these plans are closed to new participants. The majority of the liability pertains to retirees with postretirement medical insurance.

Balance Sheet Information

Amounts recognized as liabilities in the Consolidated Balance Sheets for postretirement benefit plans reflect the funded status. The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2011 and 2010.


	2011												2010
	Pension				Other Benefits				Total				Pension				Other Benefits				Total
Fair value of plan assets		$	184			$	8			$	192			$	187			$	8			$	195
Projected benefit obligation			330				192				522				299				175				474

Funded status		$	(146	)		$	(184	)		$	(330	)		$	(112	)		$	(167	)		$	(279	)

Amounts reported within:
Accrued liabilities		$	(4	)		$	(10	)		$	(14	)		$	(3	)		$	(10	)		$	(13	)
Non-current liabilities			(142	)			(174	)			(316	)			(109	)			(158	)			(267	)

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, 2011 and 2010.


	2011										2010
	Pension			Other Benefits				Total			Pension			Other Benefits				Total
Net actuarial loss		$	147		$	58			$	205		$	100		$	45			$	145
Prior service cost (benefit)			6			(1	)			5			9			(1	)			8

Total		$	153		$	57			$	210		$	109		$	44			$	153

The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans for the years ended December 31, 2011 and 2010.


	2011												2010
	U.S.				Int’l				Total				U.S.				Int’l				Total
Change in benefit obligation
Benefit obligation – January 1		$	246			$	53			$	299			$	229			$	51			$	280
Service cost			6				1				7				6				1				7
Interest cost			13				2				15				14				2				16
Amendments /other			(2	)			–				(2	)			(1	)			2				1
Actuarial loss (gain)			27				(1	)			26				10				(1	)			9
Benefits paid			(13	)			(3	)			(16	)			(12	)			(2	)			(14	)
Curtailment / Special termination benefit			1				–				1				–				1				1
Liabilities assumed through acquisition			–				1				1				–				–				–
Foreign currency translation			–				(1	)			(1	)			–				(1	)			(1	)

Benefit obligation – December 31		$	278			$	52			$	330			$	246			$	53			$	299

The following table provides a rollforward of the projected benefit obligations for our other employee-related defined benefit plans for the years ended December 31, 2011 and 2010.


	2011				2010
Change in benefit obligation
Benefit obligation – January 1		$	175			$	171
Service cost			2				2
Interest cost			9				9
Actuarial loss			15				2
Benefits paid			(9	)			(9	)

Benefit obligation – December 31		$	192			$	175

The following table provides a rollforward of the pension plan assets and the funded status for our U.S. and international pension plans for the years ended December 31, 2011 and 2010.


	2011												2010
	U.S.				Int’l				Total				U.S.				Int’l				Total
Change in plan assets
Plan assets – January 1		$	185			$	2			$	187			$	174			$	2			$	176
Actual return on plan assets			(6	)							(6	)			23				–				23
Employer contributions			18				3				21				2				3				5
Benefits paid			(13	)			(3	)			(16	)			(12	)			(3	)			(15	)
Expenses			(2	)			–				(2	)			(2	)			–				(2	)

Plan assets – December 31		$	182			$	2			$	184			$	185			$	2			$	187

Funded status at end of year		$	(96	)		$	(50	)		$	(146	)		$	(61	)		$	(51	)		$	(112	)

The following table provides a rollforward of the other employee-related defined benefit plan assets and the funded status for the years ended December 31, 2011 and 2010.


	2011				2010
Change in plan assets
Plan assets – January 1		$	8			$	8
Employer contributions			9				9
Benefits paid			(9	)			(9	)

Plan assets – December 31		$	8			$	8

Funded status at end of year		$	(184	)		$	(167	)

The accumulated benefit obligation for all defined benefit pension plans was $328 and $297 at December 31, 2011 and 2010, respectively. The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets.


	2011			2010
Projected benefit obligation		$	328		$	299
Accumulated benefit obligation			327			297
Fair value of plan assets			182			187

Income Statement Information

The following table provides the components of net periodic benefit cost and other amounts recognized in other comprehensive income for each of the three years ended December 31, 2011, as they pertain to our defined benefit pension plans.


	2011												2010											2009
	U.S.				Int’l				Total				U.S.				Int’l			Total				U.S.				Int’l			Total
Net periodic benefit cost
Service cost		$	6			$	1			$	7			$	6			$	1		$	7			$	4			$	1		$	5
Interest cost			13				2				15				14				2			16				13				3			16
Expected return on plan assets			(19	)			–				(19	)			(18	)			–			(18	)			(18	)			–			(18	)
Amortization of net actuarial loss			4				–				4				2				–			2				2				–			2
Amortization of prior service cost			1				–				1				1				–			1				1				–			1

Net periodic benefit cost (income)			5				3				8				5				3			8				2				4			6

Effect of curtailment / Special termination benefit			3				–				3				–				2			2				–				–			–

Total net periodic benefit cost (income)			8				3				11				5				5			10				2				4			6

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)			52				(1	)			51				5				–			5				(10	)			–			(10	)
Prior service cost			–				–				–				1				–			1				–				–			–
Amortization of net actuarial loss			(4	)			–				(4	)			(2	)			–			(2	)			(2	)			–			(2	)
Amortization of prior service cost			(3	)			–				(3	)			(1	)			–			(1	)			(1	)			–			(1	)

Total change recognized in other comprehensive (loss) income			45				(1	)			44				3				–			3				(13	)			–			(13	)

Total impact from net periodic benefit cost and changes in other comprehensive (loss) income		$	53			$	2			$	55			$	8			$	5		$	13			$	(11	)		$	4		$	(7	)

The following table provides the components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income for each of the three years ended December 31, 2011, as they pertain to other employee-related defined benefit plans.


	2011				2010				2009
Net periodic benefit cost
Service cost		$	2			$	2			$	2
Interest cost			9				9				10
Expected return on plan assets			(1	)			(1	)			(1	)
Amortization of net actuarial loss			3				1				2

Total net periodic benefit cost			13				11				13

Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income
Net loss			15				2				7
Amortization of net actuarial loss			(3	)			(1	)			(2	)

Total changes recognized in other comprehensive (loss) income			12				1				5

Total impact from net periodic benefit cost and changes in other comprehensive (loss) income		$	25			$	12			$	18

The following table provides the estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2012.


	Pension			Other Benefits			Total
Net actuarial loss		$	6		$	4		$	10
Prior service cost			1			–			1

Total		$	7		$	4		$	11

Postretirement Plan Assumptions

The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental and developed in consultation with external advisors. 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 actuarial assumptions are based on the provisions of the applicable accounting pronouncements, review of various market data and discussion with our external advisors. Changes in these assumptions could materially affect our financial position and results of operations.

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


	2011						2010
	U.S.			Int’l			U.S.			Int’l
Obligation Assumptions:
Discount rate		4.79	%		4.85	%		5.69	%		5.03	%
Rate of future compensation increase		N/A			2.46	%		N/A			2.42	%
Cost Assumptions:
Discount rate		5.69	%		5.03	%		6.00	%		5.09	%
Expected return on plan assets		9.00	%		4.75	%		9.00	%		4.75	%

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


	2011			2010
Obligation Assumptions:
Discount rate		4.80	%		5.50	%
Cost Assumptions:
Discount rate		5.50	%		6.00	%
Expected return on plan assets		9.00	%		9.00	%

The assumed discount rates reflect our expectation of the present value of expected future cash payments for benefits at the measurement date. We base the discount rate assumption on current investment yields of high-quality fixed income securities during the retirement benefits maturity period. The discount rates were determined by considering an interest rate yield curve comprising high quality corporate bonds, with maturities between zero and thirty years. Annual benefit payments are then discounted to present value using this yield curve to develop a single-point discount rate matching the plan’s characteristics.

The rate of future compensation increase assumption for foreign plans reflects our long-term actual experience and future and near-term outlook.

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 based on our targeted asset allocation. Specifically, we estimate future returns based on independent estimates of asset class returns weighted by the targeted investment allocation.

Prior to the Distribution of Exelis and Xylem, the Company’s U.S. postretirement plans participated in a master trust that invested in asset classes that historically generated asset returns in excess of the expected long-term rate of return on plan assets. With the distribution of certain postretirement benefit plans and their respective plan assets to Exelis and Xylem, we developed a new targeted asset allocation that is expected to generate a lower level of returns on plan assets than were realized in the past. Based on this approach, our weighted average estimate of the long-term annual rate of return on assets for pension plans beginning in 2012 will be reduced to 8%. For postretirement plans that participated in the master trust distributed to Exelis, the chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year.


	2011			2010			2009
Expected rate of return on plan assets		9.00	%		9.00	%		9.00	%
Actual rate of return on plan assets		(3.2	)%		14.1	%		24.1	%

For the recognition of net periodic postretirement cost, the calculation of the expected return on plan assets is generally derived using a market-related value of plan assets based on average asset values at the measurement date over the last five years. The use of fair value, rather than a market-related value, of plan assets could materially affect net periodic postretirement cost.

The assumed rate of future increases in the per capita cost of health care (the health care trend rate) is 7.3% for 2012, 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 $23 and the aggregate annual service and interest cost components by $2. A decrease of one percent in the health care trend rate would reduce the benefit obligation by $19 and the aggregate annual service and interest cost components by $1. 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.

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 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 targeted 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.

Prior to the Distribution, the domestic postretirement benefit plan assets were included in the master investment trust that also included assets of plans contributed to Exelis and Xylem. At the distribution date, the master trust and all of its investments were transferred to Exelis and ITT received a cash contribution from Exelis proportionate to its share of investments in the master trust which was subsequently invested through a newly established master trust. At December 31, 2011, the plan assets have been invested on a temporary basis. As a result of these developments, the actual asset allocation, targeted asset allocation and mix of investments in the master trust has changed from the prior year.

The following table provides the allocation of plan assets held in the master investment trust by asset category, as of December 31, 2011 and 2010, and the related targeted asset allocation ranges by asset category.


	2011			Targeted Allocation Range			2010			Targeted Allocation Range
Domestic equities		33	%		30-40	%		25	%		25-75	%
Alternative investments		0	%		0	%		47	%		20-45	%
International equities		27	%		20-40	%		18	%		10-45	%
Fixed income		35	%		25-45	%		2	%		0-60	%
Cash and other		5	%		0-5	%		8	%		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, 2011, non-U.S. plan assets of approximately $2 million 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:

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

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.

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.

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.

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.

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.

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.

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. Other employee benefit plan assets include an investment in a structured security valued using broker quotes. Due to the significance of unobservable inputs involved in the broker quote, the investment is classified within Level 3 of the fair value hierarchy.

The following table provides the fair value of plan assets held by our postretirement benefit plans, at December 31, 2011 and 2010, by asset class.


	Pension						Other Benefits
2011	Total			Level 2			Total			Level 3
Asset Category
Equities:
Domestic		$	60		$	60		$	–		$	–
International			33			33			–			–
Emerging Markets			16			16			–			–
Fixed income			63			63			–			–
Cash and other			12			12			8			8

Total		$	184		$	184		$	8		$	8


	Pension												Other Benefits
2010	Total			Level 1			Level 2			Level 3			Total			Level 3
Asset Category
Equities:
Domestic		$	47		$	36		$	7		$	4		$	–		$	–
International			15			10			–			5			–			–
Emerging Markets			19			8			9			2			–			–
Private equity^(a)			55			–			7			48			–			–
Absolute return (hedge funds)^(b)			32			–			12			20			–			–
Commodities, fixed income and other			19			–			16			3			8			8

Total		$	187		$	54		$	51		$	82		$	8		$	8

(a)	Private equity includes a diversified range of strategies, including buyout funds, distressed funds, venture and growth equity funds and mezzanine funds.

(b)

Absolute return hedge funds primarily include fund of funds that invest in a diversified portfolio of other hedge funds that employ a range of investment strategies and fixed income/multi-strategy absolute return funds, which invest in multiple investment strategies with the intent of diversifying risk and reducing volatility.

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 Securities				Private Equity				Absolute Returns				Commodities, Fixed Income and Other				Total
Level 3 balance – December 31, 2009		$	9			$	47			$	21			$	2			$	79
Realized gains (losses), net			–				4				–				–				4
Unrealized gains (losses), net			2				2				1				–				5
Purchases/(sales), net			–				–				(2	)			1				(1	)
Transfers in (out), net			–				(5	)			–				–				(5	)

Level 3 balance – December 31, 2010			11				48				20				3				82
Realized gains (losses), net			(1	)			3				–				–				2
Unrealized gains (losses), net			–				–				–				–				–
Purchases/(sales) and settlements, net			(10	)			(51	)			(20	)			(3	)			(84	)
Transfers in (out), net			–				–				–				–				–

Level 3 balance – December 31, 2011		$	–			$	–			$	–			$	–			$	–

There have been no significant realized or unrealized gains and losses, purchases, sales or transfers of assets within our other employee-related benefit plans measured using significant unobservable inputs (Level 3).

Contributions

Funding requirements under IRS 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. In addition, we fund certain of our international pension plans in countries where funding is allowable and tax-efficient. We made contributions of $21 and $5 to pension plans during 2011 and 2010, respectively. We anticipate making contributions to our global pension plans of $20 to $25 during 2012, of which $2 has been 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.


	U.S. Pension			Int’l Pension			Other Benefits
2012		$	15		$	3		$	11
2013			15			3			11
2014			16			4			11
2015			16			4			12
2016			17			4			12
2017 – 2021		$	93		$	17		$	61

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
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-Name FASB Staff Position (FSP)
-Number FAS106-2
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-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
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-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
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-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
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-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Long-Term Incentive Employee Compensation

12 Months Ended

Dec. 31, 2011

Long-Term Incentive Employee Compensation [Abstract]

Long-Term Incentive Employee Compensation

NOTE 18

Long-Term Incentive Employee Compensation

Our long-term incentive awards program historically has comprised three components: non-qualified stock options (NQOs), restricted shares and units (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 2011 Omnibus Incentive Plan (2011 Incentive Plan) was approved by shareholders and established in May of 2011 to provide for the awarding of options on common shares and full value restricted common shares or units to employees and non-employee directors. The number of shares initially available for issuance to participants under the 2011 Incentive Plan was 4.6. The 2011 Incentive Plan replaced the 2003 Incentive Plan on a prospective basis and no future grants will be made under the ITT Amended and Restated 2003 Equity Incentive Plan (2003 Incentive Plan). However, any shares remaining available for issuance under the 2003 Incentive Plan as of the date of 2011 Incentive Plan shareholder approval became available for grant under the 2011 Incentive Plan. In connection with the Distribution, and per the terms of the 2011 Incentive Plan, an equitable adjustment which preserved the intrinsic value of the awards after giving effect to the distribution of Exelis and Xylem was made (referred to as the Equitable Adjustment). As of December 31, 2011, 41.1 shares were available for future grants under the 2011 Incentive Plan. ITT makes shares available for the exercise of stock options or vesting of restricted shares or units by purchasing shares in the open market or by issuing shares from treasury stock.

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


	2011^(a)			2010				2009
Share-based compensation expense, equity-based awards		$	23		$	14			$	16
Share-based compensation expense, liability-based awards			2			(4	)			2

Total share-based compensation expense in operating income (loss)			25			10				18
Tax benefit			8			3				6

Share-based compensation expense, net of tax		$	17		$	7			$	12

(a)	Share-based compensation expense incurred during 2011 includes $13 classified as a Transformation cost in the Consolidated Income Statement related to the modification of equity awards.

At December 31, 2011, there was $22 of total unrecognized compensation cost related to non-vested awards. This cost is expected to be recognized ratably over a weighted-average period of 2.44 years.

Conversion and Cancellation of Outstanding Equity at Spin Date

In connection with the Distribution, ITT modified its outstanding equity awards on October 31, 2011 (the modification date). For equity awards issued through employee compensation arrangements, the awards were generally modified such that, following the Distribution, the employee only held equity in their future employer and the intrinsic value of the awards was preserved through the Equitable Adjustment. Awards held by members of the Board of Directors were modified so that the awardee continued to hold an award in each of the three companies following the Distribution.

As a result of the Equitable Adjustment, an option modification expense of $9 was recorded for awards that were fully vested on the modification date, and an addition $1 of incremental fair value will be recorded in future periods as unvested awards vest. A portion of the option modification charge was allocated to discontinued operations for employees who transferred to Exelis or Xylem. Further, subsequent to the Distribution, ITT will only recognize compensation cost for awards that were unvested on the modification date for employees who remained with ITT.

Pursuant to the completion of the Distribution on October 31, 2011, 1.2 stock options and 0.5 restricted equity awards held by the employees of Exelis and Xylem were converted to equity awards in the underlying common stock of their respective employer and were cancelled as ITT equity awards.

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 and 2011 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, 2011, 2010 and 2009 and changes during the years then ended is presented below.


	2011						2010						2009
STOCK OPTIONS	SHARES			WEIGHTED- AVERAGE EXERCISE PRICE			SHARES			WEIGHTED- AVERAGE EXERCISE PRICE			SHARES			WEIGHTED- AVERAGE EXERCISE PRICE
Outstanding – January 1		3.7			$	85.08		4.0			$	80.58		4.1			$	79.66
Granted		0.3				115.36		0.4				106.60		0.4				67.18
Exercised		(0.7	)			76.27		(0.6	)			62.90		(0.4	)			52.64
Cancelled or expired^(a)		(1.3	)			92.76		(0.1	)			97.56		(0.1	)			91.88

Outstanding on Distribution Date before Equitable Adjustment		2.0				88.52		–				–		–				–

Outstanding on Distribution Date after Equitable Adjustment		8.0				16.18		–				–		–				–

November/December 2011 Activity:
Granted		0.7				20.28		–				–		–				–
Exercised		(0.7	)			13.87		–				–		–				–

Outstanding – December 31		8.0			$	16.70		3.7			$	85.08		4.0			$	80.58

Options exercisable – December 31		6.3			$	16.03		3.0			$	83.72		3.2			$	78.98

(a)	Includes 1.2 shares cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average exercise price of $92.20.

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 2011, 2010 and 2009 was $30, $22 and $18, respectively.

The amount of cash received from the exercise of stock options was $62, $35 and $20 for 2011, 2010 and 2009, respectively. The income tax benefit realized during 2011, 2010 and 2009 associated with stock option exercises and lapses of restricted stock was $17, $14 and $11, respectively. We classify the cash flows attributable to excess tax benefits arising from stock option exercises and restricted stock lapses as a financing activity. Excess tax benefits arising from stock option exercises and restricted stock lapses were $7, $6 and $3 for 2011, 2010 and 2009, respectively. The following table summarizes information about ITT’s stock options at December 31, 2011:


	OPTIONS OUTSTANDING				OPTIONS EXERCISABLE
RANGE OF EXERCISE PRICES	NUMBER	WEIGHTED- AVERAGE REMAINING CONTRACTUAL LIFE (IN YEARS)	WEIGHTED- AVERAGE EXERCISE PRICE	AGGREGATE INTRINSIC VALUE	NUMBER	WEIGHTED- AVERAGE REMAINING CONTRACTUAL LIFE (IN YEARS)	WEIGHTED- AVERAGE EXERCISE PRICE	AGGREGATE INTRINSIC VALUE
$5-$10	0.2	^(b)	$ 9.46	$ 2	0.2	^(b)	$ 9.46	$ 2
$10-$15	2.9	2.2	12.98	18	2.6	1.9	13.04	16
$15-$20	3.3	1.9	18.21	5	3.0	1.2	18.02	5
$20-$26	1.6	7.2	21.19	–	0.5	2.2	22.04	–

	8.0	3.0	$16.70	$25	6.3	1.6	$16.03	$23

(b)	The contractual life of the 0.2 options ended on January 2, 2012.

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on ITT’s closing stock price of $19.33 as of December 31, 2011, 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, 2011, included as exercisable in the preceding table was 1.7.

As of December 31, 2011, the total number of stock options expected to vest (including those that have already vested) was 7.9. These stock options have a weighted-average exercise price of $16.65, an aggregate intrinsic value of $25 and a weighted-average remaining contractual life of 2.9 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 2011, 2010 and 2009:


	November 7, 2011 Grants				2011 Grants Before Distribution				2010				2009
Dividend yield			1.79	%			1.73	%			1.88	%			2.54	%
Expected volatility			39.30	%			24.74	%			27.06	%			38.77	%
Expected life (in years)			7.0				7.0				7.0				4.7
Risk-free rates			1.51	%			3.05	%			3.06	%			2.20	%
Weighted-average grant date fair value		$	6.97			$	29.70			$	29.00			$	19.20

Expected volatilities for option grants prior to the Distribution were based on ITT’s stock price history, including implied volatilities from traded options on our stock. Expected volatilities for option grants subsequent to the Distribution were based on a peer average of historical and implied volatility. 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

RS typically vests three years from the date of grant. Holders of restricted shares have the right to receive dividends and vote on the shares. Holders of restricted units have the right to receive cumulative dividends, which are subject to forfeiture, at the vesting date. If an employee leaves the Company prior to vesting, whether through resignation or termination for cause, the RS is forfeited. If an employee retires or is terminated other than for cause, a pro rata portion of the RS may vest. Included within restricted stock outstanding are 0.1 vested shares that have been deferred until termination of service per individual award agreements. As of December 31, 2011, the total number of RS expected to vest was 1.3.

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

2011

2010

2009

RESTRICTED STOCK

SHARES

WEIGHTED-
AVERAGE
GRANT DATE
FAIR VALUE

Outstanding – January 1

0.9

89.70

0.8

88.72

0.7

103.92

Granted

0.3

115.18

0.3

106.50

0.3

67.76

Lapsed

(0.3

)

99.53

(0.2

)

108.88

(0.2

)

105.66

Cancelled^(c)

(0.6

)

95.30

–

89.50

–

109.88

Outstanding on Distribution Date before equitable adjustment

0.3

93.42

–

Outstanding on Distribution Date after equitable adjustment

1.0

17.94

–

November/December 2011 Activity:

Granted

0.4

20.27

–

Outstanding – December 31

1.4

18.55

0.9

89.62

0.8

88.72

(c)	Includes 0.5 RS cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average grant date fair value of $95.14.

Restricted units represented approximately 63%, 21% and 19% of total RS outstanding at December 31, 2011, 2010 and 2009, respectively.

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. 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. Payment, if any, typically occurs during the first quarter of each year and is based on the TSR performance comparison measured against targets established at the time of the award. However, no payments were made during 2011 as the TSR performance metric for the 2008 to 2010 performance period was less than the minimum stipulated in the TSR Award Agreement. During 2010 and 2009, payments totaling $18 and $21 were made to settle the vested 2007 and 2006 TSR awards, respectively.

In connection with the Distribution, a proportionate number of outstanding TSR awards vested corresponding to the percentage of time passed between original grant date and October 31, 2011 (the vested portion). The fair value of the vested portion on October 31, 2011 was nil, as the performance factor for each TSR grant was below the floor threshold. The unvested portion of TSR awards (the percent of time remaining between October 31, 2011 and the awards originally stated vest end date) were modified depending on the year of grant. The 2009 TSR awards were modified to settle via a cash payment in December 2011 of less than $1, equal to the unvested portion at target payout of 100%. The unvested portion of the 2010 and 2011 TSR awards were modified through the granting of RSU awards with a grant date fair value equal to the unvested portion at target. The replacement RSU awards maintain the vesting date established in the original TSR award agreement. No compensation expense was recognized in connection with these modifications as the incremental fair value resulting from the modification pertains to the unvested portion of the original TSR award. The deferred compensation cost of $2 will be recognized straight-line over the remaining vesting periods.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Capital Stock

12 Months Ended

Dec. 31, 2011

Capital Stock [Abstract]

Capital Stock

NOTE 19

Capital Stock

ITT has authority to issue an aggregate of 300 shares of capital stock, of which 250 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, 2011 and 2010.

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 $1.591, $2.00 and $1.70 per common share in 2011, 2010, and 2009, 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 3.6 million shares for $431, including commission fees, under the $1 billion share repurchase program. No shares have been repurchased since December 2008.

We make shares 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 2011, we issued 0.8 shares from our treasury account related to equity compensation arrangements. As of December 31, 2011 and 2010, 10.6 and 11.5 shares of Common Stock were held in our treasury account, respectively.

On October 31, 2011, the distribution of Exelis and Xylem from ITT was completed. On October 31, 2011, the stockholders of record as of the Record Date received one share of Xylem common stock and one share of Exelis common stock for each share of ITT common stock held as of the Record Date. The Distribution was completed pursuant to a Distribution Agreement, effective as of October 25, 2011, among ITT, Exelis and Xylem.

On October 31, 2011, we completed the 1:2 Reverse Stock Split. The par value of our common stock remained $1 per share following the 1:2 Reverse Stock Split. All preferred and common stock shares available, issued and outstanding, as well as share prices and earnings per share give effect to the 1:2 Reverse Stock Split in all periods presented. Cash payments made to settle fractional shares resulting from the 1:2 Reverse Stock Split were immaterial.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

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-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Subparagraph (SX 210.3-04)
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

NOTE 20

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 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 position on a consolidated basis, unless otherwise noted below.

Asbestos Matters

Background

ITT, including its subsidiary Goulds Pumps, Inc., 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, 2011, there were 105,486 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:


	2011			2010^(b)			2009
Pending claims^(a) – January 1		103,575			104,679			103,006
New claims		5,691			5,865			4,274
Settlements		(1,426	)		(991	)		(1081	)
Dismissals		(2,354	)		(6,469	)		(4,728	)
Adjustment^(c)		–			491			3,208
Pending claims^(a) – December 31		105,486			103,575			104,679

(a)	Excludes 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, 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 cost sharing agreement provides that responsibility for costs associated with claims resolved gradually transitions away from ITT, such that ITT will have no responsibility for claims resolved beginning no later than July 1, 2022. The table above excludes 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 carriers to a third party claims administrator.

At December 31, 2011, the jurisdictions with highest pending claims counts against ITT include Mississippi (approximately 40,000 claims), New York (approximately 30,000 claims), and Florida (approximately 7,000 claims).

Frequently, plaintiffs are unable to identify any ITT or Goulds Pumps product as a source of asbestos exposure. In addition, in a large majority of claims pending against the Company, plaintiffs are unable to demonstrate any injury. Many of those claims have been placed on inactive dockets (including 39,604 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 pending claims have little or no value. The average cost per claim, including indemnity and defense costs, resolved in 2011 and 2010 was $19 thousand and $7 thousand, respectively. Because claims are sometimes dismissed in large groups, the average cost per resolved claim can fluctuate significantly from period to period.

The Company records an 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. The asbestos liability has not been discounted to present value due to the inability to reliably forecast the timing of future cash flows. The methodology used to estimate our liability for pending and asbestos claims estimated to be filed over the next 10 years relies on and includes the following:

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

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

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;

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 recent claims experience;

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

analysis of the Company’s recent experience to determine the average settlement value of claims, by disease type;

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

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

analysis of the Company’s recent experience with regard to the length of time to resolve asbestos claims.

The forecast period used to estimate our potential exposure to pending and projected asbestos claims is a judgment based on a number of factors, including the number and type of claims filed, recent experience with pending claims activity and whether that experience will continue into the future, the jurisdictions where claims are filed, the effect of any legislative or judicial developments, and the likelihood of any comprehensive asbestos legislation at the federal level. These factors have both positive and negative effects on the dynamics of asbestos litigation in the tort system and, accordingly, our estimate of the asbestos exposure. Developments related to asbestos tend to be long-cycle, changing over multi-year periods. Accordingly, we monitor these and other factors and periodically assess whether an alternative forecast period is appropriate.

The Company retains a consulting firm to assist management in estimating the potential liability for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the methodology described above. 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 assumptions discussed above, additional uncertainty related to asbestos claims and estimated costs arises from the long latency period prior to the manifestation of an asbestos-related disease, changes in available medical treatments and changes in medical costs, changes in plaintiff behavior resulting from bankruptcies of other companies that are potential or 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.

We record a corresponding asbestos-related 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 reviewed include current levels of future cost recovery, 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, the extent to which settlement and defense costs will be reimbursed by the insurance 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 the lag between when ITT pays an amount to defend or settle a claim and when a reimbursement is received, differing policy terms, and certain gaps in our insurance coverage as a result of uninsured periods, insurer insolvencies, and prior insurance settlements. 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 external legal counsel assuming the continued viability of those insurance carriers and other responsible parties that are currently solvent, and incorporating risk mitigation judgments where policy terms or other factors are not certain, and allocating asbestos settlement and defense costs between our insurers and other responsible parties.

The Company has negotiated with certain of its insurers and other responsible parties to reimburse the Company for a portion of its settlement and/or defense costs as incurred through “coverage-in-place” agreements, policy buyout and settlement agreements and a cost sharing agreement which provides that responsibility for costs associated with claims resolved gradually transitions away from ITT, such that ITT will have no responsibility for claims resolved beginning no later than July 1, 2022. These agreements, in the aggregate, represent approximately 60% of the recorded asbestos-related asset.

Estimating our exposure to pending asbestos claims and those that may be filed in the future is subject to significant uncertainty and risk as there are multiple variables that can affect the timing, severity, quality, quantity and resolution of claims. Any predictions with respect to the variables impacting the estimate of the asbestos liability and related asset 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 asbestos exposures, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years which could be material, we do not believe there is a reasonable basis for estimating those costs at this time.

Income Statement Charges

In the third quarter, we conduct an annual study with the assistance of outside consultants to review and update the underlying assumptions used in our asbestos liability and related asset estimates. During this study, the underlying assumptions are updated based on our actual experience since our last annual study, 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 adjusted our estimated undiscounted asbestos liability, including legal fees, by ($44), $691 and $708, in 2011, 2010 and 2009, respectively. These charges reflect 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 in the third quarter of 2011 was a result of several developments, including a reduction in the assumed rate of increase in future average settlement costs and an expectation of lower defense costs relative to indemnities paid. These favorable factors were offset in part by increased activity in several higher-cost jurisdictions, increasing the number of cases expected to be adjudicated. The increase in our estimated liability in the third quarter of 2010 was 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. The increase in our estimated liability in the third quarter of 2009 was a result of recording an estimated liability to claims estimated to be filed. Prior to 2009, the Company only recorded a liability for pending asbestos claims due to the inability to estimate the potential exposure.

Further, in the third quarter of 2011 the Company recorded a $76 reduction in its asbestos-related assets based on the results of the annual studies, whereas in the third quarter 2010 and 2009 the Company increased its asbestos-related asset by $371 and $485, respectively. 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.

In addition to charges associated with the annual reassessment, beginning in the fourth quarter of 2009, the Company also records a net asbestos charge each quarter to maintain a rolling 10 year forecast period.

For the years ended December 31, 2011, 2010 and 2009, the income statement effects of asbestos charges consisted of the following:


For the Year Ended	Continuing Operations											Discontinued Operations
December 31, 2011	Liability			Asset				Net				Liability				Asset				Net				Total
Provision		$	85		$	26			$	59			$	24			$	21			$	3			$	62
Remeasurement			38			(3	)			41				(82	)			(73	)			(9	)			32
Asbestos-related costs before tax		$	123		$	23				100			$	(58	)		$	(52	)			(6	)			94
Tax benefit										(37	)											2				(35	)
Asbestos-related costs, net of tax									$	63											$	(4	)		$	59


For the Year Ended	Continuing Operations										Discontinued Operations
December 31, 2010	Liability			Asset			Net				Liability			Asset			Net				Total
Provision		$	67		$	12		$	55			$	50		$	50		$	–			$	55
Remeasurement			524			194			330				167			177			(10	)			320
Asbestos-related costs before tax		$	591		$	206			385			$	217		$	227			(10	)			375
Tax benefit									(144	)									4				(140	)
Asbestos-related costs, net of tax								$	241									$	(6	)		$	235


For the Year Ended	Continuing Operations										Discontinued Operations
December 31, 2009	Liability			Asset			Net				Liability			Asset			Net				Total
Provision		$	56		$	28		$	28			$	2		$	6		$	(4	)		$	24
Remeasurement			644			434			210				64			51			13				223
Asbestos-related costs before tax		$	700		$	462			238			$	66		$	57			9				247
Tax benefit									(95	)									(3	)			(98	)
Asbestos-related costs, net of tax								$	143									$	6			$	149

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 claims and claims estimated to be filed in the next 10 years was $714 and $641 as of December 31, 2011 and 2010, respectively. The following table provides a rollforward of the estimated total asbestos liability and related assets for the years ended December 31, 2011 and 2010, respectively.


	2011												2010
	Liability				Asset				Net				Liability				Asset				Net
Balance as of January 1		$	1,676			$	1,035			$	641			$	933			$	667			$	266
Changes in estimate during the period:
Continuing operations			123				23				100				591				206				385
Discontinued operations			(58	)			(52	)			(6	)			217				227				(10	)
Cash activity			(73	)			(52	)			(21	)			(54	)			(54	)			–
Other adjustments			–				–				–				(11	)			(11	)			–
Balance as of December 31		$	1,668			$	954			$	714			$	1,676			$	1,035			$	641

Current portion			139				133				6				117				105				12
Noncurrent portion			1,529				821				708				1,559				930				629

The asbestos liability and related receivables are based management’s best estimate of future events. However, future events affecting the key factors and other variables for either the asbestos liability or the related receivables could cause 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 all pending and estimated 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 and cash flows.

Discontinued Operations:

At December 31, 2011 and 2010, $234 and $292 of the asbestos liability and $233 and $285 of the related asset, respectively, related to a business which we disposed of a number of years ago that is reported as a discontinued operation. The liability and asset is subject to an amended cost-sharing agreement that was executed in September 2010 with the entity that acquired the disposed business. The amended agreement provides 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 beginning no later than July 1, 2022. 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 in 2010 was calculated in a manner consistent with the approach used to estimate ITT’s stand-alone asbestos liabilities and assets.

Future Cash Flows:

Using the estimated liability as of December 31, 2011 (for claims filed or estimated to be filed through 2021), we have estimated that we will be able to recover 57% of the asbestos indemnity 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, there is uncertainty in estimating when cash payments related to the recorded asbestos liability will be fully expended and such cash payments will continue for a number of years past 2021 due to the significant proportion of future claims included in the estimated asbestos liability and the lag time between the date a claim is filed and when it is resolved. In addition, because there are gaps in our insurance coverage, reflecting uninsured periods, the insolvency of certain insurers and prior insurance settlements, and our expectation that certain policies from some of our primary insurers will exhaust within the next 10 years, actual insurance reimbursements vary from period to period and the anticipated recovery rate is expected to decline over time. Future recoverability rates may be impacted by other factors, such as future insurance settlements, insolvencies and judicial determinations relevant to our coverage program, which are difficult to predict and subject to a high degree of uncertainty.

Subject to these inherent uncertainties, 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 2026 due to the length of time between the filing of a claim and its resolution. Certain of our primary coverage in place agreements are expected to exhaust in the next twelve months, which will result in higher net cash outflows for the short-term. These annual net cash outflows are projected to average $10 to $20, net of tax benefits over the next five years, as compared to an average of approximately $6, net of tax benefits in the past three years, and increase to an average of approximately $35 to $45, net of tax over the remainder of the projection period. Recovery rates for the tenth year of our model are currently projected to be approximately 27% of cash spent on settlements and defense costs.

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 environmental matters represent management’s estimate of undiscounted costs to be incurred related to environmental assessment or remediation efforts, as well as related legal fees. These estimates, and related accruals, are reviewed quarterly and adjusted for progress of investigation and remediation efforts as additional technical or legal information become available.

Environmental remediation reserves are subject to numerous inherent uncertainties that affect our ability to estimate our share of the costs. Such uncertainties involve incomplete information regarding particular sites and other potentially responsible parties, uncertainty regarding the nature and extent of contamination at each site, the extent of remediation required under existing regulations, our share, if any, of any remediation liability, widely varying cost estimates associated with potential alternative remedial approaches, the length of time required to remediate a particular site, the potential effects of continuing improvements in remediation technology, and changes in environmental standards and regulatory requirements.

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


	2011				2010
Environmental liability – January 1		$	100			$	101
Accruals added during the period			–				–
Change in estimates for pre-existing accruals			13				10
Payments			(11	)			(11	)
Environmental liability – December 31		$	102			$	100

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


	2011			2010
Low-end range		$	81		$	82
High end range		$	175		$	180
Number of active environmental investigation and remediation sites			64			65

While actual costs to be incurred at identified sites in future periods may vary from our current estimates given the inherent uncertainties in evaluating environmental exposures, we do not anticipate changes in our estimated liabilities for identified sites will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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. In 2011, ITT filed a Motion for Summary Judgment on PEIC’s obligation to pay defense costs. That motion is currently pending before the court. Mandatory settlement conferences are anticipated to be held later this year.

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. In December 2011, Goulds Pumps reached an agreement in principle to resolve its claims against Fireman’s Fund and, in January 2012, we reached an agreement in principle with another insurer. In early January 2012, ITT and Goulds Pumps filed a putative class action against Travelers Casualty and Surety Company alleging that Travelers is unilaterally reinterpreting language contained in older Aetna policies so as to avoid paying on asbestos claims. ITT Corporation and Goulds Pumps, Inc., v. Travelers Casualty and Surety Company (f/k/a Aetna Casualty and Surety Company,) U.S.D.C. CT. CA No. 3:12-CU 00038. We continue to negotiate settlement agreements with other insurers, where appropriate.

On December 20, 2011, the Ad Hoc Committee of ITT Bondholders filed a Complaint in New York State court alleging that ITT breached the early redemption provisions of certain bonds issued in 2009. In 2009, ITT issued $500 in bonds maturing in 2019 at an interest rate of 6.125%. The documents governing the bonds contained certain provisions governing early redemptions. On September 20, 2011, ITT notified the holders of the debt that it intended to redeem the bonds on October 20, 2011 in accordance with the terms of the governing documents. On October 18, 2011, the redemption price was disclosed. The Plaintiffs contend that ITT used an improper discount rate in calculating the redemption price and otherwise failed to comply with required redemption procedures. If the Plaintiffs’ claims are sustained, ITT could be required to pay up to $15 in additional redemption fees and interest to all holders of the bonds; however, the costs associated with this matter, if any, will be shared with Exelis and Xylem in accordance with the Distribution Agreement. See Note 4, “Discontinued Operations,” for further information about the Distribution Agreement and shared liabilities. As of December 31, 2011, no amounts were accrued for this matter as the company is in the early stages of evaluating the claim. Management believes that these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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-Name FASB Interpretation (FIN)
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+ Details

Guarantees, Indemnities and Warranties

12 Months Ended

Dec. 31, 2011

Guarantees, Indemnities and Warranties [Abstract]

Guarantees, Indemnities and Warranties

NOTE 21

Guarantees, Indemnities and Warranties

Indemnities

As part of the Distribution, ITT provided certain indemnifications and cross-indemnifications among ITT, Exelis and Xylem, subject to limited exceptions with respect to certain employee claims. The indemnifications address a variety of subjects, including asserted and unasserted product liability matters (e.g., asbestos claims, product warranties) which relate to products manufactured, repaired and/or sold prior to the Distribution Date. The indemnifications are indefinite. The indemnification associated with pending and future asbestos claims does not expire. In addition, ITT, Exelis and Xylem agreed to certain cross-indemnifications with respect to other liabilities and obligations. ITT expects Exelis and Xylem to fully perform under the terms of the Distribution Agreement and therefore has not recorded a liability for matters for which we have been indemnified. In addition, we are not aware of any claims or other circumstances that would give rise to material payments to Xylem or Exelis under the indemnity provided by ITT.

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 $192 of guarantees, letters of credit and similar arrangements outstanding at December 31, 2011 primarily pertaining to commercial or performance guarantees and insurance matters. We have not recorded any loss contingencies under these guarantees, letters of credit and similar arrangements as of December 31, 2011 as the likelihood of nonperformance by ITT is considered remote. From time to time, we may provide 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 our 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 and ITT provided a residual value guarantee to the lessor for the future value of the aircraft. During the second quarter of 2011, we purchased the aircraft from the lessor for $50, the price stated in the sale leaseback agreement, and as such the sale leaseback agreement and the associated residual value guarantee were terminated. In connection with this transaction, we settled a previously recorded $22 residual value guarantee and recognized an additional charge of $3, presented within G&A expenses, as the purchase price exceeded the fair value of the aircraft at the date of termination of the sale leaseback agreement. One of the corporate aircraft was sold for a gain of $3 and the other aircraft was distributed to Exelis, and accordingly, at December 31, 2011, ITT no longer owned any corporate aircraft.

In December 2011, the Flagler County Board of Commissioners approved the termination of certain construction obligations associated with a 1984 Development Order for Development of Regional Impact (“DRI”) known as Hammock Dunes, Florida. On February 1, 2012, the Flagler County Board of Commissioners released ITT from further material obligations related to the DRI and cancelled the $10 bond issued in its favor by ITT to secure the construction obligations under the DRI. As a result of the approval to terminate the construction obligation in December 2011, the Company released its $10 previously recorded contingent liability for these construction obligations.

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 certain markets, such as automotive, aerospace and rail, 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, 2011 and 2010.


	2011				2010
Warranty accrual – January 1		$	27			$	24
Warranty expense			8				13
Payments			(9	)			(10	)

Warranty accrual – December 31		$	26			$	27

Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

NOTE 22

Segment Information

In connection with the Distribution, we reorganized our businesses into four reportable segments: Industrial Process, Motion Technologies, ICS, and Control Technologies. The reportable segments are presented on the same basis in which management internally evaluates performance and allocates resources. All segment information has been reclassified based on our current segment structure.

Industrial Process manufactures engineered fluid process equipment serving a diversified mix of customers in global infrastructure industries such as oil & gas, mining, power generation, chemical and other process markets and is an aftermarket service provider.

Motion Technologies manufactures brake pad, shock absorber and damping technologies for the global automotive, truck, trailer and public bus and rail transportation markets.

Interconnect Solutions manufactures a wide range of highly specialized connector products that make it possible to transfer signal and power in various electronic devices that are utilized in aerospace, industrial, defense and oil & gas markets.

Control Technologies manufactures specialized equipment, including actuation, valves, switches, vibration isolation, custom-energy absorption, and regulators for the aerospace, military and industrial markets.

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 segments in evaluating performance or allocating resources. Assets of the segments exclude general corporate assets, which principally consist of cash, company owned life insurance, deferred tax assets, insurance receivables and certain property, plant and equipment.


	REVENUE												OPERATING INCOME (LOSS)												OPERATING MARGIN
	2011				2010				2009				2011				2010				2009				2011			2010			2009
Industrial Process		$	767			$	694			$	719			$	91			$	79			$	72			11.9	%		11.4	%		10.0	%
Motion Technologies			634				548				491				85				85				48			13.4	%		15.5	%		9.8	%
Interconnect Solutions			418				413				341				38				37				19			9.1	%		9.0	%		5.6	%
Control Technologies			318				275				243				55				29				32			17.3	%		10.5	%		13.2	%
Asbestos-related costs, net			–				–				–				(100	)			(385	)			(238	)		–			–			–
Transformation costs			–				–				–				(396	)			–				–			–			–			–
Eliminations / Corporate costs and Other			(18	)			(22	)			(24	)			(20	)			(29	)			(54	)		–			–			–

Total		$	2,119			$	1,908			$	1,770			$	(247	)		$	(184	)		$	(121	)		(11.7	)%		(9.6	)%		(6.8	)%


	TOTAL ASSETS						CAPITAL EXPENDITURES									DEPRECIATION AND AMORTIZATION
	2011			2010			2011			2010			2009			2011			2010			2009
Industrial Process		$	624		$	529		$	25		$	19		$	13		$	13		$	11		$	10
Motion Technologies			431			383			33			28			37			27			25			25
Interconnect Solutions			343			309			17			16			11			10			9			10
Control Technologies			411			401			6			4			5			13			13			15
Corporate and Other			1,862			1,671			22			60			26			11			8			5
Discontinued operations			–			9,322			–			–			–			–			–			–

Total		$	3,671		$	12,615		$	103		$	127		$	92		$	74		$	66		$	65


	REVENUE^(a)									TOTAL ASSETS						PLANT, PROPERTY & EQUIPMENT, NET
Geographic Information	2011			2010			2009			2011			2010			2011			2010
United States		$	792		$	742		$	710		$	2,321		$	2,247		$	123		$	111
Other developed markets^(a)(b)			728			663			594			941			721			121			115
Emerging markets			599			503			466			409			325			80			74
Discontinued operations			–			–			–			–			9,322			–			–

Total		$	2,119		$	1,908		$	1,770		$	3,671		$	12,615		$	324		$	299

(a)	Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery. Germany represented 11.0%, 10.7% and 10.6% of total revenues for the years ended December 31, 2011, 2010 and 2009, respectively.

(b)	Luxembourg represented 12.6% and 1.9% of total assets, excluding assets of discontinued operations, at December 31, 2011 and 2010, respectively.

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


	2011			2010			2009
Pumps and complementary products		$	692		$	633		$	650
Pump support and maintenance services			67			52			57
Friction products			524			446			386
Shock absorber equipment			110			101			104
Connectors equipment			413			405			335
CT Aerospace products			193			165			148
CT Industrial products			120			106			90

Total		$	2,119		$	1,908		$	1,770

No individual customer accounted for greater than 10% of consolidated ITT revenue during any of the three years presented.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Immaterial Corrections

12 Months Ended

Dec. 31, 2011

Immaterial Corrections [Abstract]

Immaterial Corrections

NOTE 23

Immaterial Corrections

During the fourth quarter of 2011, management concluded the previously issued consolidated financial statements required adjustments to reflect certain immaterial corrections. Prior to the distribution of Exelis and Xylem, the Company had evaluated and concluded that the identified amounts were not material to any of its previously issued financial statements. Although management believes the amounts, individually and in the aggregate, were, and continue to be, immaterial to prior periods, management concluded that the prior period corrections to the post-Distribution financial statements are appropriate.

The Company has revised amounts previously reported in the consolidated financial statements to reflect certain adjustments, primarily related to income taxes, cumulative translation adjustments, and other adjustments, related to previously unrecorded immaterial adjustments identified during the preparation of prior years’ financial statements.

As a result of these adjustments, basic and diluted earnings per share were adjusted by $0.07 and ($0.16) for 2010 and 2009, respectively, which includes $0.03 and ($0.09) in 2010 and 2009, respectively, related to discontinued operations. The impact of these adjustments are detailed in the tables below.

Income Statement as of December 31, 2010


YEAR ENDED DECEMBER 31, 2010	As Previously Reported with Reclassification For Discontinued Operations (Note 4)				Adjustments				As Adjusted and with Reclassification For Discontinued Operations
General and administrative expenses		$	179			$	(3	)		$	176
Operating loss			(187	)			3				(184	)
Loss from continuing operations before income tax expense			(279	)			3				(276	)
Loss from continuing operations			(135	)			3				(132	)
Income from discontinued operations			933				3				936
Net income		$	798			$	6			$	804

Income Statement as of December 31, 2009


YEAR ENDED DECEMBER 31, 2009	As Previously Reported with Reclassification For Discontinued Operations (Note 4)				Adjustments				As Adjusted and with Reclassification For Discontinued Operations
General and administrative expenses		$	195			$	6			$	201
Operating loss			(115	)			(6	)			(121	)
Loss from continuing operations before income tax expense			(202	)			(6	)			(208	)
Income tax expense			(98	)			1				(97	)
Loss from continuing operations			(104	)			(7	)			(111	)
Income from discontinued operations			748				(8	)			740
Net income		$	644			$	(15	)		$	629

Balance Sheet at December 31, 2010


DECEMBER 31, 2010	As Previously Reported with Reclassification For Discontinued Operations (Note 4)				Adjustments				As Adjusted and with Reclassification For Discontinued Operations
Assets
Current assets of discontinued operations		$	3,459			$	(2	)		$	3,457
Total current assets			4,426				(2	)			4,424
Deferred income taxes (noncurrent)			339				(19	)			320
Noncurrent assets of discontinued operations			5,871				(6	)			5,865
Total non-current assets			8,216				(25	)			8,191
Total assets			12,642				(27	)			12,615
Liabilities and Shareholders’ Equity
Accrued liabilities			408				(11	)			397
Current liabilities of discontinued operations			1,883				9				1,892
Total current liabilities			2,743				(2	)			2,741
Other non-current liabilities			322				3				325
Noncurrent liabilities of discontinued operations			1,902				15				1,917
Total noncurrent liabilities			5,395				18				5,413
Total liabilities			8,138				16				8,154
Shareholders’ Equity:
Retained earnings			5,499				(58	)			5,441
Postretirement benefit plans			(1,360	)			1				(1,359	)
Cumulative translation adjustments			262				14				276
Total shareholders’ equity			4,504				(43	)			4,461
Total liabilities and shareholders’ equity		$	12,642			$	(27	)		$	12,615

Certain of the adjustments described above, or portions thereof, relate to periods prior to 2010. The cumulative effect of those adjustments to retained earnings as of January 1, 2009 and December 31, 2009 is reflected as a change of $51 and $66, respectively.

Cash Flows

The adjustments had no effect on each of the subtotals within the Consolidated Statement of Cash Flows.

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2011
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Description of Business	*Description of Business* ITT Corporation is a global industrial company specializing in the engineering and manufacture of critical components in the aerospace, transportation, energy and industrial markets. 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. ITT operates through four segments: Industrial Process consisting of industrial pumping and complementary equipment; Motion Technologies consisting of friction and shock & vibration equipment; Interconnect Solutions (ICS) consisting of electronic connectors; and Control Technologies consisting of fluid handling, motion control and vibration and shock isolation products. Financial information for our segments is presented in Note 22, “Segment Information.”
Basis of Presentation	*Basis of Presentation* On October 31, 2011, ITT Corporation made a pro rata distribution to its shareholders consisting of all the shares of common stock of Xylem Inc. (Xylem, previously referred to as the water-related businesses), which held ITT’s interests in the water businesses, and all the shares of common stock of Exelis Inc. (Exelis, previously referred to as ITT’s Defense & Information Solutions segment), which held ITT’s interests in the defense businesses (the Distribution). These financial statements have been reclassified to present the financial position, results of operations and cash flows of Exelis and Xylem as discontinued operations in all periods presented. For further information on the discontinued operations of Exelis and Xylem, see Note 4, “Discontinued Operations.” In addition, in conjunction with the Distribution, we implemented changes to our management structure and changed our segment reporting structure. On October 31, 2011, we completed a one-for-two reverse stock split (1:2 Reverse Stock Split) of ITT’s issued and outstanding common stock, as approved by our Board of Directors. The par value of our common stock remained $1 per share following the 1:2 Reverse Stock Split. All common stock shares authorized, issued and outstanding, as well as share prices and earnings per share give effect to the 1:2 Reverse Stock Split in all periods presented. In addition to the reclassification effects from the Distribution, certain other prior year amounts have been reclassified to conform to the current year presentation as described within these Notes to the Consolidated Financial Statements.
Use of Estimates	Use of Estimates The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). 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, revenue recognition, income tax contingency accruals and valuation allowances, postretirement obligations and assets, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates.
Principles of Consolidation	Principles of Consolidation Our consolidated financial statements include the accounts of all majority-owned subsidiaries. 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 or distribution. All intercompany transactions have been eliminated.
Revenue Recognition	Revenue Recognition Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions. Revenue is recognized when persuasive evidence of an arrangement exists, the sales 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 and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. 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. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period. Effective January 1, 2011, we adopted amended guidance on the accounting for revenue arrangements that contain multiple elements. The amended guidance was applied to new arrangements or arrangements materially modified on or after January 1, 2011 on a prospective basis. For multiple deliverable arrangements entered into or materially modified on or after January 1, 2011, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer 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 selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied. For arrangements entered into prior to January 1, 2011 and not subsequently materially modified, if objective and reliable evidence of fair value existed for all of the units of accounting identified, the transaction consideration was allocated based on the relative fair values of the units of accounting. Alternatively, when the evidence of fair value existed for the delivered items, but not the undelivered items, the arrangement consideration was allocated using the residual method. We recognize revenue on certain design and build projects using the completed contract method. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied, and are recorded as a component of accrued liabilities. During the performance of design and build arrangements, estimated final contract prices and costs are reviewed quarterly. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses 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. 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.
Product Warranties	Product Warranties Our standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim.
Asbestos-Related Liabilities and Assets	Asbestos-Related Liabilities and Assets ITT has been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. In light of the uncertainties and variables inherent in the long-term projection of the Company’s 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. The Company has also recorded an asbestos-related asset, comprised predominantly of insurance receivables and expected recoveries from other responsible parties. The asbestos-related 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. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers and other contractual agreements with responsible parties, as well as a review of expected levels of future cost recovery, 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. 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. Provided the quarterly review does not indicate a more detailed evaluation of our asbestos exposure is required, each quarter, we record a net asbestos expense to maintain a rolling 10-year time horizon. 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, including a reassessment of the time horizon over which a reasonable estimate of unasserted claims can be projected.
Postretirement Benefit Plans	Postretirement Benefit Plans ITT sponsors pension and other employee-related defined benefit plans (collectively, postretirement benefit plans) for certain employees around the world. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, age at retirement or termination, and medical cost trends. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental and developed in consultation with our actuaries and other advisors. The major assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, 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. Actual results that differ from our assumptions are accumulated and amortized over the estimated future working life of the plan participants. 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. The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. See Note 17, “Postretirement Benefit Plans,” for further information on the measurement of plan assets. The funded status 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 (loss) income are recorded in accumulated other comprehensive income (loss) within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost.
Stock-Based Compensation	Stock-Based Compensation Stock-based awards issued to employees and non-employee directors include non-qualified stock options, restricted stock awards, restricted stock units, and certain liability-based awards. Compensation costs resulting from share-based payment transactions are recognized primarily within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis. The amount of compensation recognized includes an adjustment 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.
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 tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. We record a valuation allowance against our deferred tax assets when uncertainty regarding their realizability exists. In assessing the need for a valuation allowance, we consider all available evidence, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, and estimated future taxable income. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. The Company’s management assesses available positive and negative evidence regarding the realizability of its deferred tax assets, and records a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. To form a conclusion, management considers positive evidence in the form of reversing temporary differences, projections of future taxable income and tax planning strategies, and negative evidence such as recent history of losses. Beginning in 2011, the Company is in a cumulative three-year loss position, which we weighted as a significant source of negative evidence indicating the need for a valuation allowance on our net deferred tax assets. Since the Company was in a three-year cumulative loss position at the end of 2011, management determined that the size and frequency of the losses from continuing operations in recent years and the uncertainty associated with projecting future taxable income supported the conclusion that a valuation allowance was required to reduce its deferred tax assets. If ITT achieves profitability in future periods, then management will evaluate whether its recent history of profitability constitutes sufficient positive evidence to support a reversal of a portion, or all, of the remaining valuation allowance. We have not provided deferred tax liabilities for the impact of U.S income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the United States. We have recorded deferred tax liabilities for the impact of U.S income taxes on undistributed foreign earnings which are not indefinitely reinvested outside the United States. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations. Furthermore, we recognize the tax benefit from an uncertain tax position 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 in consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of the proceedings (or negotiations) with the taxing authorities. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate settlement.
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. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock and unvested restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect.
Cash and Cash Equivalents	Cash and Cash Equivalents ITT considers all highly liquid investments purchased with an original maturity or remaining maturity at time of purchase of three months or less to be cash equivalents.
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 and, accounts receivable from trade customers. We maintain cash and cash equivalents with various financial institutions located in 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. Credit risk with respect to 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, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value. Inventory write-downs are measured as the difference between the cost of the inventory and market based assumptions about future demand and is charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 17.6% and 12.8% of total 2011 and 2010 inventories, respectively. We have a LIFO reserve of $8 and $7 recorded as of December 31, 2011 and 2010, respectively. Cost of sales is reported using standard cost techniques with full overhead absorption, which generally approximates actual cost.
Plant, Property 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 estimated useful lives of the assets 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. Repairs and maintenance costs are expensed as incurred. The Company enters into operating and capital leases for the use of premises and equipment. Rent expense related to operating lease agreements are recorded on a straight line basis, considering lease incentives and escalating rental payments.
Capitalized Internal Use Software	Capitalized Internal Use Software Costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, 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.
Investments in Corporate-Owned Life Insurance	Investments in Corporate-Owned Life Insurance Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of each balance sheet date. The total amounts related to the Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $79 and $76 at December 31, 2011 and 2010, respectively. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses and were not material in the years ended December 31, 2011, 2010 and 2009. These investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2011 and 2010 were approximately $20 and $16, respectively, however, the COLI policies do not represent a committed funding source for these obligations and as such they are subject to claims from creditors, and we can designate them for another purpose at any time.
Long-Lived Asset Impairment	Long-Lived Asset Impairment Long-lived assets, including intangible assets with finite lives and capitalized internal use software, 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 generally 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 rather 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 fiscal 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 any. 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.
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.
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 current information.
Environmental Liabilities	Environmental Liabilities 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 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. 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.
Foreign Currency Translation	Foreign Currency Translation The national currencies of our foreign subsidiaries are generally the functional currencies. Balance sheet accounts are translated at the exchange rate in effect at the end of each period, except for equity which is translated at historical rates; income statement accounts are translated at the average rates of exchange prevailing during the period. Gains and losses resulting from foreign currency translation are reflected in the cumulative translation adjustments component of shareholders’ equity. For foreign subsidiaries that do not use the local currency as their functional currency, foreign currency assets and liabilities are remeasured to the foreign subsidiary’s functional currency using end of period exchange rates, except for nonmonetary balance sheet accounts, which are remeasured at historical exchange rates. For transactions denominated in other than the functional currency, revenue and expenses are remeasured at average exchange rates in effect during the reporting period in which the transactions occurred, except for expenses related to nonmonetary assets and liabilities. Transaction gains or losses from foreign currency remeasurement are reported in general and administrative expenses.
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 prioritize the inputs to valuation techniques used to measure fair value into three broad levels based on the observability of the input. 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 an asset or 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 December 31, 2011, 2010 and 2009. Such contracts involve the risk of non-performance by the counterparty. 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.
Recently Adopted Accounting Pronouncements	*Recently Adopted Accounting Pronouncements* In December 2010, the Financial Accounting Standards Board (FASB) issued additional guidance applicable to the testing of goodwill for potential 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 (a comparison between the carrying amount of a reporting unit’s goodwill to its implied fair value) if it is more likely than not that a goodwill impairment exists, considering any adverse qualitative factors. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. As of the date of our annual and interim goodwill impairment tests, none of our reporting units were affected by the application of this guidance as each reporting unit had a carrying amount that exceeded zero. In April 2010, the FASB issued 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. On January 1, 2011, we adopted the new guidance on a prospective basis. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. In October 2009, the FASB issued amended guidance on the accounting for revenue arrangements that contain multiple elements by eliminating the criteria that objective and reliable evidence of fair value for undelivered products or services needs to exist in order to be able to account separately for deliverables and eliminating the use of the residual method of allocating arrangement consideration. 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. We adopted the new multiple element guidance effective January 1, 2011 for new arrangements entered into or arrangements materially modified on or after that date on a prospective basis. The adoption of the new multiple element guidance did not result in a material change in either the units of accounting or the pattern or timing of revenue recognition. Additionally, the adoption of the revised multiple element arrangement guidance did not have a material impact on our financial position, results of operations or cash flows. In October 2009, the FASB 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 for multiple element arrangements above. We adopted the provisions of this guidance for new or materially modified arrangements entered into on or after January 1, 2011 on a prospective basis. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows.
Accounting Pronouncements Not Yet Adopted	*Accounting Pronouncements Not Yet Adopted* In September 2011, the FASB provided companies with the option to make an initial qualitative evaluation, based on the entity’s events and circumstances, to determine the likelihood of goodwill impairment. The result of this qualitative assessment determines whether it is necessary to perform the currently required two-step impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a company would be required to perform the two-step impairment test. This guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The Company could elect to apply the option in future goodwill impairment tests; however, the amendments are not expected to have a material effect on the Company’s Consolidated Financial Statements. In May 2011, the FASB issued guidance intended to achieve common fair value measurements and related disclosures between U.S. GAAP and international accounting standards. The amendments primarily clarify existing fair value guidance and are not intended to change the application of existing fair value measurement guidance. However, the amendments include certain instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This guidance is effective for the periods beginning after December 15, 2011 and early application is prohibited. We will adopt these amendments on January 1, 2012; however, the requirements are not expected to have a material effect on the Company’s Consolidated Financial Statements.

Company Transformation (Tables)

12 Months Ended

Dec. 31, 2011

Company Transformation [Abstract]

Components of Transformation Costs


	Continuing Operations				Discontinued Operations				Total
Loss on extinguishment of debt (see Note 16)		$	297			$	–			$	297
Advisory fees			–				139				139
Non-cash asset impairment^(a)			57				8				65
IT costs			–				46				46
Employee retention and other compensation costs^(b)			37				20				57
Lease termination and other real estate costs			4				10				14
Other costs			1				17				18

Transformation costs before income tax expense			396				240				636
Tax-related separation costs			4				7				11
Tax benefit			(143	)			(74	)			(217	)

Total transformation costs, net of tax benefit		$	257			$	173			$	430

(a)	Includes a $55 million non-cash impairment charge related to a decision to discontinue development of an information technology consolidation initiative.

(b)	Includes $17 of compensation costs recognized within continuing operations in connection with the retirement of Steven R. Loranger, our former Chairman, President and Chief Executive Officer in October 2011.

Roll Forward of Transformational Accrual

The table included below provides a rollforward of the accrual for Transformation costs for the year ended 2011.


Transformation accrual – January 1	$	2
Charges for actions during the period:
Continuing operations		396
Discontinued operations		240
Cash payments		(559	)
Asset impairment and other non-cash charges, net		(45	)

Transformation accrual – December 31	$	34

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Operating results of discontinued operations


Year Ended 2011	Exelis			Xylem			Other^(b)				Total
Revenue		$	4,916		$	3,107		$	–			$	8,023
Transformation costs			31			75			134				240
Earnings (loss) before income taxes			473			321			(108	)			686
Income tax expense (benefit)			194			70			(26	)			238
Income (loss) from discontinued operations		$	279		$	251		$	(82	)		$	448


Year Ended 2010	Exelis^(a)			Xylem			CAS			Other^(b)				Total
Revenue		$	5,893		$	3,192		$	160		$	–			$	9,245
Earnings before income taxes			718			395			13			12				1,138
Gain on sale of disposal before tax			–			–			125			–				125
Income tax expense			251			51			–			25				327
Income (loss) from discontinued operations		$	467		$	344		$	138		$	(13	)		$	936


Year Ended 2009	Exelis^(a)			Xylem			CAS			Other^(b)				Total
Revenue		$	6,059		$	2,839		$	231		$	–			$	9,129
Earnings (loss) before income taxes			727			285			15			(12	)			1,015
Income tax expense			253			14			6			2				275
Income (loss) from discontinued operations		$	474		$	271		$	9		$	(14	)		$	740

(a)	CAS was a component of our Defense and Information Solutions business, which was distributed as Exelis. The table above presents Exelis without CAS, which was disposed during 2010.

(b)

Assets and liabilities from discontinued operations


	Exelis			Xylem			Total
Cash and cash equivalents		$	18		$	808		$	826
Receivables, net			958			690			1,648
Inventories, net			239			389			628
Other current assets			188			167			355

Total current assets			1,403			2,054			3,457

Plant, Property and Equipment, net			462			465			927
Goodwill			2,156			1,617			3,773
Other intangible assets			258			416			674
Other non-current assets			243			248			491

Total assets			4,522			4,800			9,322

Accounts payable			326			321			647
Accrued liabilities and other current assets			884			361			1,245

Total current liabilities			1,210			682			1,892

Postretirement benefits			1,223			257			1,480
Other non-current liabilities			113			324			437

Total liabilities		$	2,546		$	1,263		$	3,809

Restructuring and Asset Impairment Charges, net (Tables)

12 Months Ended

Dec. 31, 2011

Restructuring and Asset Impairment Charges [Abstract]

Restructuring cost


	2011			2010				2009
By component:
Severance charges		$	4		$	2			$	40
Other restructuring charges			1			2				5
Reversal of restructuring accruals			–			(1	)			(2	)

Restructuring and asset impairment charge, net		$	5		$	3			$	43

By segment:
Industrial Process		$	–		$	1			$	11
Motion Technologies			–			–				21
Interconnect Solutions			3			–				7
Control Technologies			2			2				3
Corporate and Other			–			–				1

Rollforward of the restructuring accruals


	2011				2010
Restructuring accruals – January 1		$	6			$	33
Charges for plans initiated during the year			3				2
Charges for plans initiated in prior years			2				2
Cash payments			(7	)			(27	)
Asset write-offs			–				(1	)
Reversal of accruals			–				(1	)
Foreign exchange translation and other			–				(2	)

Restructuring accruals – December 31		$	4			$	6

By accrual type:
Severance accrual		$	4			$	5
Facility carrying and other costs accrual			–				1

By segment:
Industrial Process		$	–			$	–
Motion Technologies			1				4
Interconnect Solutions			3				–
Control Technologies			–				1
Corporate and Other			–				1

Planned headcount reductions


	2011			2010
Planned reductions – January 1		113			257
Additional planned reductions		52			75
Actual reductions		(136	)		(219	)

Planned reductions – December 31		29			113

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income tax data from continuing operations


	2011				2010				2009
Income components:
United States		$	(466	)		$	(395	)		$	(306	)
International			148				119				98

Total pre-tax loss from continuing operations		$	(318	)		$	(276	)		$	(208	)

Income tax expense (benefit) components:
Current income tax expense (benefit):
United States – federal		$	(80	)		$	(61	)		$	9
United States – state and local			(12	)			–				(2	)
International			49				28				18

Total current income tax (benefit) expense			(43	)			(33	)			25

Deferred income tax expense (benefit):
United States – federal			319				(100	)			(115	)
United States – state and local			(15	)			(15	)			(9	)
International			(1	)			4				2

Total deferred income tax expense (benefit)			303				(111	)			(122	)

Total income tax expense (benefit)		$	260			$	(144	)		$	(97	)
Effective income tax rate			(81.8	)%			52.2	%			46.6	%

Reconciliation of the tax provision for continuing operations


	2011			2010			2009
Tax provision at U.S. statutory rate		35.0	%		35.0	%		35.0	%
Foreign tax rate differential		4.2			2.2			1.9
State and local income tax		0.5			5.6			5.8
Tax on undistributed foreign earnings		(21.8	)		–			–
Change in state tax rate		9.7			–			–
Valuation allowance on realizability of deferred tax assets		(106.7	)		14.6			6.6
U.S. permanent items		–			–			(6.5	)
Audit settlements		–			–			(1.0	)
Medicare		0.4			(4.2	)		–
U.S. tax on foreign earnings		(6.8	)		(16.0	)		–
Tax credits		7.2			12.6			5.3
Other adjustments		(3.5	)		2.4			(0.5	)

Effective income tax rate		(81.8	)%		52.2	%		46.6	%

Deferred tax assets and liabilities


	2011				2010
Deferred Tax Assets:
Accruals		$	355			$	303
Employee benefits			135				69
Credit carryforwards			35				7
Loss carryforwards			65				57
Other			40				60

Subtotal			630				496
Valuation allowance			(438	)			(28	)

Net deferred tax assets		$	192			$	468

Deferred Tax Liabilities:
Undistributed earnings		$	(69	)		$	–
Intangibles			(51	)			(50	)
Accelerated depreciation			(21	)			(23	)
Investment			(1	)			(1	)

Total deferred tax liabilities		$	(142	)		$	(74	)

Deferred taxes in the Consolidated Balance Sheets


	2011				2010
Current assets		$	25			$	85
Non-current assets			45				320
Current liabilities			(2	)			–
Other non-current liabilities			(18	)			(11	)

Net deferred taxes		$	50			$	394

Attributes available for utilization


ATTRIBUTE	AMOUNT			FIRST YEAR OF EXPIRATION
U.S. federal net operating losses		$	85		2031
U.S. state net operating losses			2,519		2012
Federal and state capital losses			13		2013
U.S. federal tax credits			33		2012
U.S. state tax credits			12		2012
Foreign net operating losses			87		2012

A reconciliation of the beginning and ending amount of unrecognized tax benefits


	2011				2010				2009
Unrecognized tax benefits – January 1		$	169			$	149			$	126
Additions for:
Prior year tax positions			1				17				28
Current year tax positions			15				48				2
Purchase accounting			–				5				–
Reductions for:
Prior year tax positions			(21	)			(38	)			(6	)
Settlements			–				(12	)			(1	)

Unrecognized tax benefits – December 31		$	164			$	169			$	149

Open tax years by major jurisdiction


JURISDICTION	EARLIEST OPEN YEAR
Germany		2006
Italy		2005
Netherlands		2008
United Kingdom		2008
United States		2007

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Basic and diluted loss per share


	2011				2010				2009
Loss from continuing operations		$	(578	)		$	(132	)		$	(111	)
Weighted average common shares outstanding			92.2				91.2				90.5
Add: Weighted average restricted stock awards outstanding^(a)			0.6				0.8				0.8

Basic weighted average common shares outstanding			92.8				92.0				91.3
Add: Dilutive impact of stock options			N/A				N/A				N/A

Diluted weighted average common shares outstanding			92.8				92.0				91.3
Basic and diluted loss per share		$	(6.23	)		$	(1.44	)		$	(1.21	)

(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.

Number of shares underlying stock options excluded from the computation of diluted loss


	2011			2010			2009
Anti-dilutive stock options			2.1			1.7			1.5
Average exercise price^(b)		$	16.70		$	85.08		$	80.58

Years of expiration			2012- 2021			2012- 2020			2012- 2016

(b)	The decrease in average exercise price of anti-dilutive stock options from 2010 to 2011 resulted from the change in stock price of ITT common stock following the Distribution.

Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2011

Receivables, Net [Abstract]

Receivables, Net


	2011				2010
Trade accounts receivable		$	361			$	305
Notes receivable			7				5
Other receivables			41				18

Receivables, gross			409				328
Allowance for doubtful accounts			(13	)			(13	)

Receivables, net		$	396			$	315

Rollforward of the allowance for doubtful accounts


	2011				2010				2009
Allowance for doubtful accounts – January 1		$	13			$	21			$	12
Charges (benefits) to income			2				(3	)			13
Write-offs			(1	)			(3	)			(3	)
Foreign currency and other			(1	)			(2	)			(1	)

Allowance for doubtful accounts – December 31		$	13			$	13			$	21

Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2011

Inventories, Net [Abstract]

Inventories, Net


	2011				2010
Finished goods		$	62			$	62
Work in process			49				38
Raw materials			125				107

Total product inventory			236				207
Inventoried costs related to long-term contracts			65				44
Less – progress payments			(47	)			(33	)

Inventoried costs related to long-term contracts, net			18				11

Inventories, net		$	254			$	218

Other Current and Non-Current Assets (Tables)

12 Months Ended

Dec. 31, 2011

Other Current and Non-Current Assets [Abstract]

Other Current and Non Current Assets


	2011			2010
Current deferred income taxes		$	25		$	85
Asbestos-related current assets			133			105
Income tax receivable			164			–
Other			100			38

Other current assets		$	422		$	228


Other employee benefit-related assets		$	79		$	76
Capitalized software costs			13			67
Other			29			38

Other non-current assets		$	121		$	181

Plant, Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2011

Plant, Property and Equipment, Net [Abstract]

Plant, Property and Equipment, Net


	2011				2010
Land and improvements		$	17			$	17
Buildings and improvements			163				164
Machinery and equipment			738				710
Furniture, fixtures and office equipment			62				59
Construction work in progress			46				38
Other			8				11

Plant, property and equipment, gross			1,034				999
Less – accumulated depreciation			(710	)			(700	)

Plant, property and equipment, net		$	324			$	299

Goodwill and Other Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets, Net [Abstract]

Changes in the carrying amount of goodwill


	Industrial Process				Motion Technologies				Interconnect Solutions				Control Technologies			Total
Goodwill – January 1, 2010		$	184			$	52			$	72			$	198		$	506
Goodwill acquired			3				–				–				–			3
Foreign currency			1				(4	)			(2	)			–			(5	)

Goodwill – December 31, 2010			188				48				70				198			504
Goodwill acquired			8				–				3				–			11
Adjustments to purchase price allocations			(3	)			–				–				–			(3	)
Foreign currency			–				(1	)			(1	)			–			(2	)

Goodwill – December 31, 2011		$	193			$	47			$	72			$	198		$	510

Other intangible assets


	GROSS CARRYING AMOUNT			ACCUMULATED AMORTIZATION				NET INTANGIBLES
Customer relationships		$	77		$	(24	)		$	53
Proprietary technology			20			(7	)			13
Trademarks			3			(1	)			2
Patents and other			5			(2	)			3
Indefinite-lived intangibles			17			–				17

Intangibles – December 31, 2011		$	122		$	(34	)		$	88

Customer and distributor relationships		$	74		$	(18	)		$	56
Proprietary technology			20			(5	)			15
Trademarks			3			(1	)			2
Patents and other			4			(2	)			2
Indefinite-lived intangibles			17			–				17

Intangibles – December 31, 2010		$	118		$	(26	)		$	92

Estimated amortization expense related to intangible assets


Year	Estimated Amortization Expense
2012		$	10
2013			9
2014			8
2015			7
2016			7

- Definition

Tabular disclosure of goodwill by reportable segment and in total. Disclosure details may include, but are not limited to, the carrying amount of goodwill, goodwill acquired during the year, goodwill impairment losses recognized, goodwill written-off due to the sale of a business unit, goodwill not yet allocated, and any other changes to goodwill.

+ References + Details

Accrued Liabilities and Other Non Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Accrued Liabilities and Other Non-Current Liabilities [Abstract]

Accrued liabilities and other non-current liabilities


	2011			2010
Compensation and other employee-benefits		$	172		$	167
Asbestos-related liability			139			117
Customer-related liabilities			32			21
Accrued warranty costs			26			27
Accrued income taxes			23			24
Environmental and other legal matters			19			21
Other accrued liabilities			57			65

Accrued liabilities		$	468		$	442

Deferred income taxes and other tax-related accruals		$	136		$	129
Environmental			91			93
Compensation and other employee-related benefits			46			44
Product liability, guarantees and other legal matters			2			39
Other			20			20

Other non-current liabilities		$	295		$	325

Leases and Rentals (Tables)

12 Months Ended

Dec. 31, 2011

Leases and Rentals [Abstract]

Future minimum operating lease payments under long-term operating leases


2012	$	17
2013		12
2014		10
2015		9
2016		8
2017 and thereafter		78

Total minimum lease payments	$	134

Debt (Tables)

12 Months Ended

Dec. 31, 2011

Debt [Abstract]

Debt


	2011			2010
Short-term loans		$	2		$	–
Current maturities of long-term debt and other			–			10
Short-term debt and current maturities of long-term debt			2			10
Non-current maturities of long-term debt			4			1,256
Non-current capital leases			–			57
Deferred gain on interest rate swaps			–			45
Unamortized discounts and debt issuance costs			–			(8	)

Summary of outstanding debt


				2010
	Interest Rate			Carrying Value			Fair Value
MATURITY DATE:
May 2014		4.90	%		$	500		$	538
May 2019		6.125	%			500			553
November 2025		7.40	%			250			311
August 2048		(a	)			1			1
December 2011 – 2014		4.70	%			66			69
Various 2011 – 2022		(b	)			6			6
					$	1,323		$	1,478

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

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

Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Defined Benefit Plan Disclosure [Line Items]

Changes in projected benefit obligations of pension plans


	2011												2010
	U.S.				Int’l				Total				U.S.				Int’l				Total
Change in benefit obligation
Benefit obligation – January 1		$	246			$	53			$	299			$	229			$	51			$	280
Service cost			6				1				7				6				1				7
Interest cost			13				2				15				14				2				16
Amendments /other			(2	)			–				(2	)			(1	)			2				1
Actuarial loss (gain)			27				(1	)			26				10				(1	)			9
Benefits paid			(13	)			(3	)			(16	)			(12	)			(2	)			(14	)
Curtailment / Special termination benefit			1				–				1				–				1				1
Liabilities assumed through acquisition			–				1				1				–				–				–
Foreign currency translation			–				(1	)			(1	)			–				(1	)			(1	)

Benefit obligation – December 31		$	278			$	52			$	330			$	246			$	53			$	299

Changes in the fair value of plan assets of pension plans


	2011												2010
	U.S.				Int’l				Total				U.S.				Int’l				Total
Change in plan assets
Plan assets – January 1		$	185			$	2			$	187			$	174			$	2			$	176
Actual return on plan assets			(6	)							(6	)			23				–				23
Employer contributions			18				3				21				2				3				5
Benefits paid			(13	)			(3	)			(16	)			(12	)			(3	)			(15	)
Expenses			(2	)			–				(2	)			(2	)			–				(2	)

Plan assets – December 31		$	182			$	2			$	184			$	185			$	2			$	187

Funded status at end of year		$	(96	)		$	(50	)		$	(146	)		$	(61	)		$	(51	)		$	(112	)

Summary of the funded status of postretirement benefit plans and the presentation of such balances within Consolidated Balance Sheet


	2011												2010
	Pension				Other Benefits				Total				Pension				Other Benefits				Total
Fair value of plan assets		$	184			$	8			$	192			$	187			$	8			$	195
Projected benefit obligation			330				192				522				299				175				474

Funded status		$	(146	)		$	(184	)		$	(330	)		$	(112	)		$	(167	)		$	(279	)

Amounts reported within:
Accrued liabilities		$	(4	)		$	(10	)		$	(14	)		$	(3	)		$	(10	)		$	(13	)
Non-current liabilities			(142	)			(174	)			(316	)			(109	)			(158	)			(267	)

Amount recognized in accumulated other comprehensive loss


	2011										2010
	Pension			Other Benefits				Total			Pension			Other Benefits				Total
Net actuarial loss		$	147		$	58			$	205		$	100		$	45			$	145
Prior service cost (benefit)			6			(1	)			5			9			(1	)			8

Total		$	153		$	57			$	210		$	109		$	44			$	153

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


	2011			2010
Projected benefit obligation		$	328		$	299
Accumulated benefit obligation			327			297
Fair value of plan assets			182			187

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


	2011				2010
Change in plan assets
Plan assets – January 1		$	8			$	8
Employer contributions			9				9
Benefits paid			(9	)			(9	)

Plan assets – December 31		$	8			$	8

Funded status at end of year		$	(184	)		$	(167	)

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


	2011				2010				2009
Net periodic benefit cost
Service cost		$	2			$	2			$	2
Interest cost			9				9				10
Expected return on plan assets			(1	)			(1	)			(1	)
Amortization of net actuarial loss			3				1				2

Total net periodic benefit cost			13				11				13

Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income
Net loss			15				2				7
Amortization of net actuarial loss			(3	)			(1	)			(2	)

Total changes recognized in other comprehensive (loss) income			12				1				5

Total impact from net periodic benefit cost and changes in other comprehensive (loss) income		$	25			$	12			$	18

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


	Pension			Other Benefits			Total
Net actuarial loss		$	6		$	4		$	10
Prior service cost			1			–			1

Total		$	7		$	4		$	11

Weighted average assumptions used to determine benefit obligations


	2011						2010
	U.S.			Int’l			U.S.			Int’l
Obligation Assumptions:
Discount rate		4.79	%		4.85	%		5.69	%		5.03	%
Rate of future compensation increase		N/A			2.46	%		N/A			2.42	%
Cost Assumptions:
Discount rate		5.69	%		5.03	%		6.00	%		5.09	%
Expected return on plan assets		9.00	%		4.75	%		9.00	%		4.75	%

Weighted average assumptions used to determine net periodic benefit cost


	2011			2010
Obligation Assumptions:
Discount rate		4.80	%		5.50	%
Cost Assumptions:
Discount rate		5.50	%		6.00	%
Expected return on plan assets		9.00	%		9.00	%

Actual versus expected long term returns for our domestic pension plans


	2011			2010			2009
Expected rate of return on plan assets		9.00	%		9.00	%		9.00	%
Actual rate of return on plan assets		(3.2	)%		14.1	%		24.1	%

Asset allocation range


	2011			Targeted Allocation Range			2010			Targeted Allocation Range
Domestic equities		33	%		30-40	%		25	%		25-75	%
Alternative investments		0	%		0	%		47	%		20-45	%
International equities		27	%		20-40	%		18	%		10-45	%
Fixed income		35	%		25-45	%		2	%		0-60	%
Cash and other		5	%		0-5	%		8	%		0-30	%

Fair value of plan assets held by our postretirement benefits plans


	Pension						Other Benefits
2011	Total			Level 2			Total			Level 3
Asset Category
Equities:
Domestic		$	60		$	60		$	–		$	–
International			33			33			–			–
Emerging Markets			16			16			–			–
Fixed income			63			63			–			–
Cash and other			12			12			8			8

Total		$	184		$	184		$	8		$	8


	Pension												Other Benefits
2010	Total			Level 1			Level 2			Level 3			Total			Level 3
Asset Category
Equities:
Domestic		$	47		$	36		$	7		$	4		$	–		$	–
International			15			10			–			5			–			–
Emerging Markets			19			8			9			2			–			–
Private equity^(a)			55			–			7			48			–			–
Absolute return (hedge funds)^(b)			32			–			12			20			–			–
Commodities, fixed income and other			19			–			16			3			8			8

Total		$	187		$	54		$	51		$	82		$	8		$	8

(a)	Private equity includes a diversified range of strategies, including buyout funds, distressed funds, venture and growth equity funds and mezzanine funds.

(b)

Fair value measurement pension plan and post retirement welfare


	Equity Securities				Private Equity				Absolute Returns				Commodities, Fixed Income and Other				Total
Level 3 balance – December 31, 2009		$	9			$	47			$	21			$	2			$	79
Realized gains (losses), net			–				4				–				–				4
Unrealized gains (losses), net			2				2				1				–				5
Purchases/(sales), net			–				–				(2	)			1				(1	)
Transfers in (out), net			–				(5	)			–				–				(5	)

Level 3 balance – December 31, 2010			11				48				20				3				82
Realized gains (losses), net			(1	)			3				–				–				2
Unrealized gains (losses), net			–				–				–				–				–
Purchases/(sales) and settlements, net			(10	)			(51	)			(20	)			(3	)			(84	)
Transfers in (out), net			–				–				–				–				–

Level 3 balance – December 31, 2011		$	–			$	–			$	–			$	–			$	–

Estimated future benefit payments


	U.S. Pension			Int’l Pension			Other Benefits
2012		$	15		$	3		$	11
2013			15			3			11
2014			16			4			11
2015			16			4			12
2016			17			4			12
2017 – 2021		$	93		$	17		$	61

Other Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Changes in projected benefit obligations of pension plans


	2011				2010
Change in benefit obligation
Benefit obligation – January 1		$	175			$	171
Service cost			2				2
Interest cost			9				9
Actuarial loss			15				2
Benefits paid			(9	)			(9	)

Benefit obligation – December 31		$	192			$	175

Changes in the fair value of plan assets of pension plans


	2011												2010											2009
	U.S.				Int’l				Total				U.S.				Int’l			Total				U.S.				Int’l			Total
Net periodic benefit cost
Service cost		$	6			$	1			$	7			$	6			$	1		$	7			$	4			$	1		$	5
Interest cost			13				2				15				14				2			16				13				3			16
Expected return on plan assets			(19	)			–				(19	)			(18	)			–			(18	)			(18	)			–			(18	)
Amortization of net actuarial loss			4				–				4				2				–			2				2				–			2
Amortization of prior service cost			1				–				1				1				–			1				1				–			1

Net periodic benefit cost (income)			5				3				8				5				3			8				2				4			6

Effect of curtailment / Special termination benefit			3				–				3				–				2			2				–				–			–

Total net periodic benefit cost (income)			8				3				11				5				5			10				2				4			6

Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss (gain)			52				(1	)			51				5				–			5				(10	)			–			(10	)
Prior service cost			–				–				–				1				–			1				–				–			–
Amortization of net actuarial loss			(4	)			–				(4	)			(2	)			–			(2	)			(2	)			–			(2	)
Amortization of prior service cost			(3	)			–				(3	)			(1	)			–			(1	)			(1	)			–			(1	)

Total change recognized in other comprehensive (loss) income			45				(1	)			44				3				–			3				(13	)			–			(13	)

Total impact from net periodic benefit cost and changes in other comprehensive (loss) income		$	53			$	2			$	55			$	8			$	5		$	13			$	(11	)		$	4		$	(7	)

Long-Term Incentive Employee Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Long-Term Incentive Employee Compensation [Abstract]

Long-term incentive employee compensation costs


	2011^(a)			2010				2009
Share-based compensation expense, equity-based awards		$	23		$	14			$	16
Share-based compensation expense, liability-based awards			2			(4	)			2

Total share-based compensation expense in operating income (loss)			25			10				18
Tax benefit			8			3				6

Share-based compensation expense, net of tax		$	17		$	7			$	12

(a)	Share-based compensation expense incurred during 2011 includes $13 classified as a Transformation cost in the Consolidated Income Statement related to the modification of equity awards.

Status of stock option and restricted stock shares

	2011						2010						2009
STOCK OPTIONS	SHARES			WEIGHTED- AVERAGE EXERCISE PRICE			SHARES			WEIGHTED- AVERAGE EXERCISE PRICE			SHARES			WEIGHTED- AVERAGE EXERCISE PRICE
Outstanding – January 1		3.7			$	85.08		4.0			$	80.58		4.1			$	79.66
Granted		0.3				115.36		0.4				106.60		0.4				67.18
Exercised		(0.7	)			76.27		(0.6	)			62.90		(0.4	)			52.64
Cancelled or expired^(a)		(1.3	)			92.76		(0.1	)			97.56		(0.1	)			91.88

Outstanding on Distribution Date before Equitable Adjustment		2.0				88.52		–				–		–				–

Outstanding on Distribution Date after Equitable Adjustment		8.0				16.18		–				–		–				–

November/December 2011 Activity:
Granted		0.7				20.28		–				–		–				–
Exercised		(0.7	)			13.87		–				–		–				–

Outstanding – December 31		8.0			$	16.70		3.7			$	85.08		4.0			$	80.58

Options exercisable – December 31		6.3			$	16.03		3.0			$	83.72		3.2			$	78.98

(a)	Includes 1.2 shares cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average exercise price of $92.20.

Share-based compensation, summary of stock options


	OPTIONS OUTSTANDING				OPTIONS EXERCISABLE
RANGE OF EXERCISE PRICES	NUMBER	WEIGHTED- AVERAGE REMAINING CONTRACTUAL LIFE (IN YEARS)	WEIGHTED- AVERAGE EXERCISE PRICE	AGGREGATE INTRINSIC VALUE	NUMBER	WEIGHTED- AVERAGE REMAINING CONTRACTUAL LIFE (IN YEARS)	WEIGHTED- AVERAGE EXERCISE PRICE	AGGREGATE INTRINSIC VALUE
$5-$10	0.2	^(b)	$ 9.46	$ 2	0.2	^(b)	$ 9.46	$ 2
$10-$15	2.9	2.2	12.98	18	2.6	1.9	13.04	16
$15-$20	3.3	1.9	18.21	5	3.0	1.2	18.02	5
$20-$26	1.6	7.2	21.19	–	0.5	2.2	22.04	–

	8.0	3.0	$16.70	$25	6.3	1.6	$16.03	$23

(b)	The contractual life of the 0.2 options ended on January 2, 2012.

Weighted average assumptions


	November 7, 2011 Grants				2011 Grants Before Distribution				2010				2009
Dividend yield			1.79	%			1.73	%			1.88	%			2.54	%
Expected volatility			39.30	%			24.74	%			27.06	%			38.77	%
Expected life (in years)			7.0				7.0				7.0				4.7
Risk-free rates			1.51	%			3.05	%			3.06	%			2.20	%
Weighted-average grant date fair value		$	6.97			$	29.70			$	29.00			$	19.20

Rollforward of outstanding restricted stock

2011

2010

2009

RESTRICTED STOCK

SHARES

WEIGHTED-
AVERAGE
GRANT DATE
FAIR VALUE

Outstanding – January 1

0.9

89.70

0.8

88.72

0.7

103.92

Granted

0.3

115.18

0.3

106.50

0.3

67.76

Lapsed

(0.3

)

99.53

(0.2

)

108.88

(0.2

)

105.66

Cancelled^(c)

(0.6

)

95.30

–

89.50

–

109.88

Outstanding on Distribution Date before equitable adjustment

0.3

93.42

–

Outstanding on Distribution Date after equitable adjustment

1.0

17.94

–

November/December 2011 Activity:

Granted

0.4

20.27

–

Outstanding – December 31

1.4

18.55

0.9

89.62

0.8

88.72

(c)	Includes 0.5 RS cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average grant date fair value of $95.14.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Actively related to asbestos claims


	2011			2010^(b)			2009
Pending claims^(a) – January 1		103,575			104,679			103,006
New claims		5,691			5,865			4,274
Settlements		(1,426	)		(991	)		(1081	)
Dismissals		(2,354	)		(6,469	)		(4,728	)
Adjustment^(c)		–			491			3,208
Pending claims^(a) – December 31		105,486			103,575			104,679

(a)	Excludes 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, 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 carriers to a third party claims administrator.

Net asbestos charges


For the Year Ended	Continuing Operations											Discontinued Operations
December 31, 2011	Liability			Asset				Net				Liability				Asset				Net				Total
Provision		$	85		$	26			$	59			$	24			$	21			$	3			$	62
Remeasurement			38			(3	)			41				(82	)			(73	)			(9	)			32
Asbestos-related costs before tax		$	123		$	23				100			$	(58	)		$	(52	)			(6	)			94
Tax benefit										(37	)											2				(35	)
Asbestos-related costs, net of tax									$	63											$	(4	)		$	59


For the Year Ended	Continuing Operations										Discontinued Operations
December 31, 2010	Liability			Asset			Net				Liability			Asset			Net				Total
Provision		$	67		$	12		$	55			$	50		$	50		$	–			$	55
Remeasurement			524			194			330				167			177			(10	)			320
Asbestos-related costs before tax		$	591		$	206			385			$	217		$	227			(10	)			375
Tax benefit									(144	)									4				(140	)
Asbestos-related costs, net of tax								$	241									$	(6	)		$	235


For the Year Ended	Continuing Operations										Discontinued Operations
December 31, 2009	Liability			Asset			Net				Liability			Asset			Net				Total
Provision		$	56		$	28		$	28			$	2		$	6		$	(4	)		$	24
Remeasurement			644			434			210				64			51			13				223
Asbestos-related costs before tax		$	700		$	462			238			$	66		$	57			9				247
Tax benefit									(95	)									(3	)			(98	)
Asbestos-related costs, net of tax								$	143									$	6			$	149

Roll forward of asbestos liability and related assets


	2011												2010
	Liability				Asset				Net				Liability				Asset				Net
Balance as of January 1		$	1,676			$	1,035			$	641			$	933			$	667			$	266
Changes in estimate during the period:
Continuing operations			123				23				100				591				206				385
Discontinued operations			(58	)			(52	)			(6	)			217				227				(10	)
Cash activity			(73	)			(52	)			(21	)			(54	)			(54	)			–
Other adjustments			–				–				–				(11	)			(11	)			–
Balance as of December 31		$	1,668			$	954			$	714			$	1,676			$	1,035			$	641

Current portion			139				133				6				117				105				12
Noncurrent portion			1,529				821				708				1,559				930				629

Roll forward of accrued environmental liabilities


	2011				2010
Environmental liability – January 1		$	100			$	101
Accruals added during the period			–				–
Change in estimates for pre-existing accruals			13				10
Payments			(11	)			(11	)
Environmental liability – December 31		$	102			$	100

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


	2011			2010
Low-end range		$	81		$	82
High end range		$	175		$	180
Number of active environmental investigation and remediation sites			64			65

- Definition

Tabular disclosure of exposure to material amount of loss arising from allegations of damages pertaining to and arising from one or more of the entity's products.

+ References + Details

- Definition

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9-12, 22-40
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14326-108349

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14472-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14394-108349

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14453-108349

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12021-110248

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12053-110248

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14557-108349

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14615-108349

+ Details

Guarantees, Indemnities and Warranties (Tables)

12 Months Ended

Dec. 31, 2011

Guarantees, Indemnities and Warranties [Abstract]

Changes in the product warranty accrual


	2011				2010
Warranty accrual – January 1		$	27			$	24
Warranty expense			8				13
Payments			(9	)			(10	)

Warranty accrual – December 31		$	26			$	27

Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Schedule of segment reporting information by segment revenue


	REVENUE												OPERATING INCOME (LOSS)												OPERATING MARGIN
	2011				2010				2009				2011				2010				2009				2011			2010			2009
Industrial Process		$	767			$	694			$	719			$	91			$	79			$	72			11.9	%		11.4	%		10.0	%
Motion Technologies			634				548				491				85				85				48			13.4	%		15.5	%		9.8	%
Interconnect Solutions			418				413				341				38				37				19			9.1	%		9.0	%		5.6	%
Control Technologies			318				275				243				55				29				32			17.3	%		10.5	%		13.2	%
Asbestos-related costs, net			–				–				–				(100	)			(385	)			(238	)		–			–			–
Transformation costs			–				–				–				(396	)			–				–			–			–			–
Eliminations / Corporate costs and Other			(18	)			(22	)			(24	)			(20	)			(29	)			(54	)		–			–			–

Total		$	2,119			$	1,908			$	1,770			$	(247	)		$	(184	)		$	(121	)		(11.7	)%		(9.6	)%		(6.8	)%

Schedule of segment reporting information by segment assets


	TOTAL ASSETS						CAPITAL EXPENDITURES									DEPRECIATION AND AMORTIZATION
	2011			2010			2011			2010			2009			2011			2010			2009
Industrial Process		$	624		$	529		$	25		$	19		$	13		$	13		$	11		$	10
Motion Technologies			431			383			33			28			37			27			25			25
Interconnect Solutions			343			309			17			16			11			10			9			10
Control Technologies			411			401			6			4			5			13			13			15
Corporate and Other			1,862			1,671			22			60			26			11			8			5
Discontinued operations			–			9,322			–			–			–			–			–			–

Total		$	3,671		$	12,615		$	103		$	127		$	92		$	74		$	66		$	65

Business Segment Information by Geographical Information


	REVENUE^(a)									TOTAL ASSETS						PLANT, PROPERTY & EQUIPMENT, NET
Geographic Information	2011			2010			2009			2011			2010			2011			2010
United States		$	792		$	742		$	710		$	2,321		$	2,247		$	123		$	111
Other developed markets^(a)(b)			728			663			594			941			721			121			115
Emerging markets			599			503			466			409			325			80			74
Discontinued operations			–			–			–			–			9,322			–			–

Total		$	2,119		$	1,908		$	1,770		$	3,671		$	12,615		$	324		$	299

(a)	Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery. Germany represented 11.0%, 10.7% and 10.6% of total revenues for the years ended December 31, 2011, 2010 and 2009, respectively.

(b)	Luxembourg represented 12.6% and 1.9% of total assets, excluding assets of discontinued operations, at December 31, 2011 and 2010, respectively.

Revenue by product category, net of intercompany balances


	2011			2010			2009
Pumps and complementary products		$	692		$	633		$	650
Pump support and maintenance services			67			52			57
Friction products			524			446			386
Shock absorber equipment			110			101			104
Connectors equipment			413			405			335
CT Aerospace products			193			165			148
CT Industrial products			120			106			90

Total		$	2,119		$	1,908		$	1,770

Immaterial Corrections (Tables)

12 Months Ended

Dec. 31, 2011

Immaterial Corrections [Abstract]

Immaterial Corrections Income Statement


YEAR ENDED DECEMBER 31, 2010	As Previously Reported with Reclassification For Discontinued Operations (Note 4)				Adjustments				As Adjusted and with Reclassification For Discontinued Operations
General and administrative expenses		$	179			$	(3	)		$	176
Operating loss			(187	)			3				(184	)
Loss from continuing operations before income tax expense			(279	)			3				(276	)
Loss from continuing operations			(135	)			3				(132	)
Income from discontinued operations			933				3				936
Net income		$	798			$	6			$	804

Income Statement as of December 31, 2009


YEAR ENDED DECEMBER 31, 2009	As Previously Reported with Reclassification For Discontinued Operations (Note 4)				Adjustments				As Adjusted and with Reclassification For Discontinued Operations
General and administrative expenses		$	195			$	6			$	201
Operating loss			(115	)			(6	)			(121	)
Loss from continuing operations before income tax expense			(202	)			(6	)			(208	)
Income tax expense			(98	)			1				(97	)
Loss from continuing operations			(104	)			(7	)			(111	)
Income from discontinued operations			748				(8	)			740
Net income		$	644			$	(15	)		$	629

Immaterial Corrections Balance Sheet


DECEMBER 31, 2010	As Previously Reported with Reclassification For Discontinued Operations (Note 4)				Adjustments				As Adjusted and with Reclassification For Discontinued Operations
Assets
Current assets of discontinued operations		$	3,459			$	(2	)		$	3,457
Total current assets			4,426				(2	)			4,424
Deferred income taxes (noncurrent)			339				(19	)			320
Noncurrent assets of discontinued operations			5,871				(6	)			5,865
Total non-current assets			8,216				(25	)			8,191
Total assets			12,642				(27	)			12,615
Liabilities and Shareholders’ Equity
Accrued liabilities			408				(11	)			397
Current liabilities of discontinued operations			1,883				9				1,892
Total current liabilities			2,743				(2	)			2,741
Other non-current liabilities			322				3				325
Noncurrent liabilities of discontinued operations			1,902				15				1,917
Total noncurrent liabilities			5,395				18				5,413
Total liabilities			8,138				16				8,154
Shareholders’ Equity:
Retained earnings			5,499				(58	)			5,441
Postretirement benefit plans			(1,360	)			1				(1,359	)
Cumulative translation adjustments			262				14				276
Total shareholders’ equity			4,504				(43	)			4,461
Total liabilities and shareholders’ equity		$	12,642			$	(27	)		$	12,615

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2011 USD ($) yr $ / shares	Oct. 31, 2011 $ / shares	Dec. 31, 2010 USD ($) $ / shares
Additional description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Textual) [Abstract]
Stockholders equity note reverse stock split conversion ratio		0.50
Common stock, par value \| $ / shares	$ 1	$ 1	$ 1
Measurement date to calculate long term expected return plan asset	over the last five year
Share-based compensation costs period	3
Time over which accrued for current pending claims and unasserted claims to be filed	next 10 years
Period beyond which additional costs for claims to be incurred	beyond next 10 years
Expenses to be recorded over rolling period	10 years
Minimum percentage of realized ultimate settlement	50.00%
Maximum maturities period to consider investment as cash equivalent	3 months
Percentage of LIFO inventory as compare to total inventory	17.60%		12.80%
LIFO inventory reserve amount recorded \| $	$ 8		$ 7
Total amount of company's investments in COLI policies \| $	79		76
Investments for utilizing as long term funding source for deferred compensation obligations \| $	$ 20		$ 16
Acquisition measurement period	Not to Exceed 12 months
Building and improvements [Member]
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Textual) [Abstract]
Plant, property and equipment estimated useful life, minimum	5
Plant, property and equipment estimated useful life, maximum	40
Machinery and equipment [Member]
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Textual) [Abstract]
Plant, property and equipment estimated useful life, minimum	2
Plant, property and equipment estimated useful life, maximum	10
Furniture and office equipment [Member]
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Textual) [Abstract]
Plant, property and equipment estimated useful life, minimum	3
Plant, property and equipment estimated useful life, maximum	7
Other plant, property and equipment [Member]
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Textual) [Abstract]
Plant, property and equipment estimated useful life, minimum	5
Plant, property and equipment estimated useful life, maximum	40
Software [Member]
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Textual) [Abstract]
Intangible assets with a finite life amortized on a straight-line basis estimated useful life minimum	3
Intangible assets with a finite life amortized on a straight-line basis estimated useful life maximum	7
Intangible assets with a finite life amortized on a straight-line basis [Member]
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Textual) [Abstract]
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

Company Transformation (Details) $ in Millions	12 Months Ended
Company Transformation (Details) $ in Millions	Dec. 31, 2011 USD ($)
Components of transformation costs
Loss from extinguishment of long-term debt	$ 297
Advisory fees	139
Non-cash asset impairment	(45)
Non-cash asset impairment	65
IT Costs	46
Employment retention and other compensation costs	57
Lease termination and other real estate costs	14
Other costs	18
Transformation costs before income tax expense	636
Tax-related separation costs	11
Income tax benefit	(217)
Total transformation costs, net of tax benefit	430
Continuing Operations [Member]
Components of transformation costs
Loss from extinguishment of long-term debt	297
Advisory fees	0
Non-cash asset impairment	57
IT Costs	0
Employment retention and other compensation costs	37
Lease termination and other real estate costs	4
Other costs	1
Transformation costs before income tax expense	396
Tax-related separation costs	4
Income tax benefit	(143)
Total transformation costs, net of tax benefit	257
Discontinued Operations [Member]
Components of transformation costs
Loss from extinguishment of long-term debt	0
Advisory fees	139
Non-cash asset impairment	8
IT Costs	46
Employment retention and other compensation costs	20
Lease termination and other real estate costs	10
Other costs	17
Transformation costs before income tax expense	240
Tax-related separation costs	7
Income tax benefit	(74)
Total transformation costs, net of tax benefit	$ 173

Company Transformation (Details 1) $ in Millions	12 Months Ended
Company Transformation (Details 1) $ in Millions	Dec. 31, 2011 USD ($)
Roll Forward of Transformational Accrual
Transformation accrual - January 1	$ 2
Charges for actions during the period	636
Cash payments	(559)
Asset impairment and other non-cash charges, net	(45)
Transformation accrual - December 31	34
Continuing Operations [Member]
Roll Forward of Transformational Accrual
Charges for actions during the period	396
Discontinued Operations [Member]
Roll Forward of Transformational Accrual
Charges for actions during the period	$ 240

Company Transformation (Details Textual) $ in Millions	12 Months Ended
Company Transformation (Details Textual) $ in Millions	Dec. 31, 2011 USD ($)
Company Transformation (Textual) [Abstract]
Transformation costs	$ 636
Pre-tax transformation cost included in continuing operation	396
Pre-tax transformation cost included in discontinuing operation	240
Impairment charge relates to a decision to discontinue development	55
Defined benefit plan expense recognized	$ 17

Discontinued Operations (Details) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
Discontinued Operations (Details) - USD ($) $ in Millions	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating results of discontinued operations
Revenue		$ 8,023	$ 9,245	$ 9,129
Transformation costs		240
Earnings (loss) before income taxes		686	1,138	1,015
Gain on sale of disposal before tax			125
Income tax expense		238	327	275
Income (loss) from discontinued operations		448	936	740
Xylem [Member]
Operating results of discontinued operations
Revenue		3,107	3,192	2,839
Transformation costs		75
Earnings (loss) before income taxes		321	395	285
Gain on sale of disposal before tax			0
Income tax expense		70	51	14
Income (loss) from discontinued operations		251	344	271
Exelis [Member]
Operating results of discontinued operations
Revenue		4,916	5,893	6,059
Transformation costs		31
Earnings (loss) before income taxes		473	718	727
Gain on sale of disposal before tax			0
Income tax expense		194	251	253
Income (loss) from discontinued operations		279	467	474
CAS [Member]
Operating results of discontinued operations
Revenue			160	231
Earnings (loss) before income taxes			13	15
Gain on sale of disposal before tax			125
Income tax expense			0	6
Income (loss) from discontinued operations			138	9
Other [Member]
Operating results of discontinued operations
Revenue	$ 0	0	0
Transformation costs		134
Earnings (loss) before income taxes		(108)	12	(12)
Gain on sale of disposal before tax			0
Income tax expense		(26)	25	2
Income (loss) from discontinued operations		$ (82)	$ (13)	$ (14)

Discontinued Operations (Details1) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Assets and liabilities from discontinued segments
Cash and cash equivalents		$ 826
Receivables, net		1,648
Inventories, net		628
Other current assets		335
Total current assets	$ 0	3,457
Plant, Property and Equipment, net		927
Goodwill		3,773
Other intangible assets		674
Other non-current assets		491
Total assets		9,322
Accounts payable		647
Accrued liabilities and other current liabilities		1,245
Total current liabilities	$ 0	1,892
Postretirement benefits		1,480
Other non-current liabilities		437
Total liabilities		3,809
Exelis [Member]
Assets and liabilities from discontinued segments
Cash and cash equivalents		18
Receivables, net		958
Inventories, net		239
Other current assets		188
Total current assets		1,403
Plant, Property and Equipment, net		462
Goodwill		2,156
Other intangible assets		258
Other non-current assets		243
Total assets		4,522
Accounts payable		326
Accrued liabilities and other current liabilities		884
Total current liabilities		1,210
Postretirement benefits		1,223
Other non-current liabilities		113
Total liabilities		2,546
Xylem [Member]
Assets and liabilities from discontinued segments
Cash and cash equivalents		808
Receivables, net		690
Inventories, net		389
Other current assets		167
Total current assets		2,054
Plant, Property and Equipment, net		465
Goodwill		1,617
Other intangible assets		416
Other non-current assets		248
Total assets		4,800
Accounts payable		321
Accrued liabilities and other current liabilities		361
Total current liabilities		682
Postretirement benefits		257
Other non-current liabilities		324
Total liabilities		$ 1,263

Discontinued Operations (Details Textual) $ in Millions	2 Months Ended		12 Months Ended
Discontinued Operations (Details Textual) $ in Millions	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Oct. 31, 2011 Contracts
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount receivable associated with transactions related to transition services agreements	$ 315		$ 396	$ 315
Amount payable associated with transactions related to the transition services agreements	397		$ 364	397
Percentage share of contingent liabilities			21.00%
Discontinued Operations
General corporate overhead costs	0	$ 0
Minimum Period for Providing Transition Period			3 months
Maximum period for providing transition period			24 months
Percentage of Escalation Over Cost			10.00%
Proceeds from the sale of segment				237
Xylem and Exelis [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Employee health benefits cost			$ 22
Maximum billing amount of employee health benefit plans	$ 1			$ 1
Amount receivable associated with transactions related to transition services agreements			1
Amount payable associated with transactions related to the transition services agreements			1
Xylem [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Receivable from Exelis and Xylem included in other assets			$ 4
Minimum percentage of contingent liabilities			39.00%
Proceeds from contribution from subsidiaries			$ 988
Exelis [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Maximum percentage of contingent liabilities			40.00%
Amount billed under subcontract pending novation			$ 250
Number of subcontracts pending under subcontract pending novation agreement \| Contracts					425
Proceeds from contribution from subsidiaries			$ 683

Acquisitions (Details Textual) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
Acquisitions (Details Textual) - USD ($) $ in Millions	Oct. 31, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Acquisitions (Textual) [Abstract]
Acquisitions, net of cash acquired		$ (16)	$ (10)	$ 0
Blakers [Member]
Acquisitions (Textual) [Abstract]
Acquisitions, net of cash acquired	$ (15)
Canberra Pumps do Brasil [Member]
Acquisitions (Textual) [Abstract]
Acquisitions, net of cash acquired			$ (10)

Restructuring and Asset Impairment Charges, net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
By segment:
Restructuring and asset impairment charge, net	$ 5	$ 3	$ 43
By component:
Severance charges	4	2	40
Other restructuring charges	1	2	5
Reversal of accruals	0	(1)	(2)
Restructuring and asset impairment charge, net	5	3	43
Industrial Process [Member]
By segment:
Restructuring and asset impairment charge, net	0	1	11
By component:
Restructuring and asset impairment charge, net	0	1	11
Motion Technologies [Member]
By segment:
Restructuring and asset impairment charge, net	0	0	21
By component:
Restructuring and asset impairment charge, net	0	0	21
Interconnect Solutions [Member]
By segment:
Restructuring and asset impairment charge, net	3	0	7
By component:
Restructuring and asset impairment charge, net	3	0	7
Control Technologies [Member]
By segment:
Restructuring and asset impairment charge, net	2	2	3
By component:
Restructuring and asset impairment charge, net	2	2	3
Corporate and Other [Member]
By segment:
Restructuring and asset impairment charge, net	0	0	1
By component:
Restructuring and asset impairment charge, net	$ 0	$ 0	$ 1

Restructuring and Asset Impairment Charges, net (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	$ 6	$ 33
Charges for plans initiated during the year	3	2
Charges for plans initiated in prior years	2	2
Cash payments	(7)	(27)
Asset write-offs	0	(1)
Reversal of accruals	0	(1)	$ (2)
Foreign exchange translation and other	0	(2)
Restructuring accruals - December 31	4	6	$ 33
Industrial Process [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	0
Restructuring accruals - December 31	0	0
Motion Technologies [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	4
Restructuring accruals - December 31	1	4
Interconnect Solutions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	0
Restructuring accruals - December 31	3	0
Control Technologies [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	1
Restructuring accruals - December 31	0	1
Corporate and Other [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	1
Restructuring accruals - December 31	0	1
Severance accrual [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	5
Restructuring accruals - December 31	4	5
Facility Carrying and Other Costs accrual [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring accruals - January 1	1
Restructuring accruals - December 31	$ 0	$ 1

Restructuring and Asset Impairment Charges, net (Details 2) - Employee	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Planned Headcount Reductions
Planned reductions - January 1	113	257
Additional planned reductions	52	75
Actual reductions	(136)	(219)
Planned reductions - December 31	29	113

Restructuring and Asset Impairment Charges, net (Details Textual) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2009 USD ($) Employee	Dec. 31, 2011 USD ($)
Restructuring and Asset Impairment Charges (Textual) [Abstract]
Impairment charge \| $		$ 55
Strategic Relocation of Manufacturing Operations [Member]
Restructuring and Asset Impairment Charges (Textual) [Abstract]
Restructuring Charge \| $	$ 21
Total Headcount Reduction	175
Reduction of Factory Workers	153
Reduction of Office Workers	18
Reduction of Management Employees	4

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income components:
United States	$ (466)	$ (395)	$ (306)
International	148	119	98
Loss from continuing operations before income tax expense (benefit)	(318)	(276)	(208)
Current income tax expense (benefit):
United States - federal	(80)	(61)	9
United States - state and local	(12)	0	(2)
International	49	28	18
Total current income tax provision	(43)	(33)	(25)
Deferred income tax expense (benefit):
United States - federal	319	(100)	(115)
United States - state and local	(15)	(15)	(9)
International	(1)	4	2
Total deferred income tax provision	303	(111)	(122)
Total income tax expense (benefit)	$ 260	$ (144)	$ (97)
Effective income tax rate	(81.80%)	52.20%	46.60%

Income Taxes (Details 1)	12 Months Ended
Income Taxes (Details 1)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
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%
Foreign tax rate differential	4.20%	2.20%	1.90%
State and local income tax	0.50%	5.60%	5.80%
Tax on undistributed foreign earnings	(21.80%)	0.00%	0.00%
Change in state tax rate	9.70%	0.00%	0.00%
Valuation allowance on realizability of deferred tax assets	(106.70%)	14.60%	6.60%
U.S. permanent items	0.00%	0.00%	(6.50%)
Audit settlements	0.00%	0.00%	(1.00%)
Medicare	0.40%	(4.20%)	0.00%
U.S. tax on foreign earnings	(6.80%)	(16.00%)	0.00%
Tax credits	7.20%	12.60%	5.30%
Other adjustments	(3.50%)	2.40%	(0.50%)
Effective income tax rate	(81.80%)	52.20%	46.60%

Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Deferred Tax Assets:
Accruals	$ 355	$ 303
Employee benefits	135	69
Credit carryforwards	35	7
Loss carryforwards	65	57
Other	40	60
Subtotal	630	496
Valuation allowance	(438)	(28)
Net Deferred tax assets	192	468
Deferred Tax Liabilities:
Unremitted earnings	(69)	0
Intangibles	(51)	(50)
Accelerated depreciation	(21)	(23)
Investment	(1)	(1)
Total Deferred tax liabilities	$ (142)	$ (74)

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Deferred taxes in the Consolidated Balance Sheets
Current assets	$ 25	$ 85
Non-current assets	45	320
Current liabilities	(2)	0
Other non-current liabilities	(18)	(11)
Net deferred taxes	$ 50	$ 394

- Definition

The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, are classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward is presented as a reduction of the related deferred tax asset.

+ References + Details

- Definition

The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, is classified according to the expected reversal date of the temporary difference.

+ References + Details

- Definition

Represents the current portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A current taxable temporary difference is a difference between the tax basis and the carrying amount of a current asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise separates deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, is classified according to the expected reversal date of the temporary difference.

+ References + Details

- Definition

Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise separates deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, are classified according to the expected reversal date of the temporary difference.

+ References + Details

Income Taxes (Details 4) $ in Millions	2 Months Ended	12 Months Ended
Income Taxes (Details 4) $ in Millions	Dec. 31, 2011 USD ($)	Dec. 31, 2011 USD ($)
U.S. federal net operating losses [Member]
Deferred tax asset attributes
Attribute amount	$ 85	$ 85
First year of expiration		2031
U.S. state net operating losses [Member]
Deferred tax asset attributes
Attribute amount	2,519	$ 2,519
First year of expiration		2012
Federal and state capital losses [Member]
Deferred tax asset attributes
Attribute amount	13	$ 13
First year of expiration		2013
U.S. federal tax credits [Member]
Deferred tax asset attributes
Attribute amount	33	$ 33
First year of expiration		2012
U.S. state tax credits [Member]
Deferred tax asset attributes
Attribute amount	$ 12	$ 12
First year of expiration	2012
Foreign net operating losses [Member]
Deferred tax asset attributes
Attribute amount	$ 87	$ 87
First year of expiration		2012

Income Taxes (Details 5) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
A reconciliation of the beginning and ending amount of unrecognized tax benefits
Unrecognized tax benefits - January 1	$ 164	$ 169	$ 149	$ 126
Additions for:
Prior year tax positions		1	17	28
Current year tax positions		15	48	2
Purchase accounting	0		5	0
Reductions for:
Prior year tax positions		(21)	(38)	(6)
Settlements	$ 0		(12)	(1)
Unrecognized tax benefits - December 31		$ 164	$ 169	$ 149

Income Taxes (Details 6)	12 Months Ended
Income Taxes (Details 6)	Dec. 31, 2011
Germany [Member]
Open tax years by major jurisdiction
Open tax years by major jurisdiction	2006
Italy [Member]
Open tax years by major jurisdiction
Open tax years by major jurisdiction	2005
Netherlands [Member]
Open tax years by major jurisdiction
Open tax years by major jurisdiction	2008
United Kingdom [Member]
Open tax years by major jurisdiction
Open tax years by major jurisdiction	2008
United States [Member]
Open tax years by major jurisdiction
Open tax years by major jurisdiction	2007

Income Taxes (Details Textual) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2011	Dec. 31, 2010
Income Taxes (Textual) [Abstract]
Income tax expense on undistributed foreign earnings		$ 69
Tax benefit as a consequence of distribution due to revaluation of deferred tax assets		31
Valuation allowance to reduce the Deferred income tax assets	$ 438	438
Increase in valuation allowance		410
Increase in valuation allowance attributable to U.S. federal capital loss carryforwards	1
Increase in valuation allowance attributable to state net operating loss and credit carryforwards		57
Increase in valuation allowance attributable to foreign net operating loss carryforwards and foreign investments.		12
Likelihood of largest benefit being realized upon ultimate settlement		$ 7	$ 6
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		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.
Unrecognized tax benefits would affect the effective tax rate	92	$ 92
Unrecognized tax benefits of Deferred tax accounting would not impact the annual effective rate, but could accelerate the payment of cash to the taxing authority	72	$ 72
Interest expense related to tax matters		Less than 1	Less than 1
Deferred taxes not provided for excess of financial reporting over tax basis of investments in foreign subsidiaries	370	$ 370
Interest accrued from income tax examinations	$ 18	18	$ 14
Federal and State [Member]
Income Taxes (Additional Textual) [Abstract]
Increase in valuation allowance amount due to noncurrent timing differences		$ 340

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

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Basic and diluted earnings per share [Abstract]

Loss from continuing operations

$ (578)

$ (132)

$ (111)

Weighted average common shares outstanding

92.1

91.2

90.5

Add: Weighted average restricted stock awards outstanding

^[1]

0.6

0.8

Basic weighted average common shares outstanding

92.8

92.0

91.3

Add: Dilutive impact of stock options

0.0

Diluted weighted average common shares outstanding

92.8

92.0

91.3

Basic and diluted loss per share

$ (6.23)

$ (1.44)

$ (1.21)

[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.

- Definition

This element represents nonvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). Basic and dilutive earnings per share are generally disclosed for such shares using the two-class method.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-6
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 60
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 61
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number EITF03-6-1
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60A
-URI http://asc.fasb.org/extlink&oid=6920599&loc=SL5780132-109256

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Participating Security
-URI http://asc.fasb.org/extlink&oid=6519812

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6920599&loc=SL5780133-109256

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 260
-SubTopic 10
-Section 45
-Paragraph 61A
-URI http://asc.fasb.org/extlink&oid=6920599&loc=SL5780137-109256

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

This element represents the weighted average total number of shares issued throughout the period including the first (beginning balance outstanding) and last (ending balance outstanding) day of the period before considering any reductions (for instance, shares held in treasury) to arrive at the weighted average number of shares outstanding. Weighted average relates to the portion of time within a reporting period that common shares have been issued and outstanding to the total time in that period. Such concept is used in determining the weighted average number of shares outstanding for purposes of calculating earnings per share (basic).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Topic 260
-SubTopic 10
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-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1448-109256

+ Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings Per Share (Details 1) - $ / shares
shares in Millions

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Number of shares underlying stock options excluded from the computation of diluted earnings

Anti-dilutive stock options

2.1

1.7

1.5

Average exercise price

^[1]

$ 16.70

$ 85.08

$ 80.58

Minimum [Member]

Number of shares underlying stock options excluded from the computation of diluted earnings

Years of expiration

2012

Maximum [Member]

Number of shares underlying stock options excluded from the computation of diluted earnings

Years of expiration

2021

2020

2016

[1]	The decrease in average exercise price of anti-dilutive stock options from 2010 to 2011 resulted from the change in stock price of ITT common stock following the Distribution.

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Receivables, Net (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Receivables, Net
Trade accounts receivable	$ 361	$ 305
Notes receivable	7	5
Other receivables	41	18
Receivables, gross	409	328
Allowance for doubtful accounts	(13)	(13)	$ (21)	$ (12)
Receivables, net	$ 396	$ 315

- Definition

An amount representing an agreement for an unconditional promise by the maker to pay the Entity (holder) a definite sum of money at a future date(s) within one year of the balance sheet date or the normal operating cycle, whichever is longer. Such amount may include accrued interest receivable in accordance with the terms of the debt. The debt also may contain provisions including a discount or premium, payable on demand, secured, or unsecured, interest bearing or noninterest bearing, among a myriad of other features and characteristics. This amount does not include amounts related to receivables held-for-sale.

+ References + Details

Receivables, Net (Details1) - USD ($) $ in Millions	12 Months Ended
Receivables, Net (Details1) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Aggregate rollforward of the allowance for doubtful accounts
Allowance for doubtful accounts - January 1	$ 13	$ 21	$ 12
Charges (benefits) to income	2	(3)	13
Write-offs	(1)	(3)	(3)
Allowance for doubtful accounts - December 31	13	13	21
Foreign currency and other	$ (1)	$ (2)	$ (1)

Inventories, Net (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Inventories, Net
Finished goods	$ 62	$ 62
Work in process	49	38
Raw materials	125	107
Total product inventory	236	207
Inventoried costs related to long-term contracts	65	44
Less - progress payments	(47)	(33)
Inventoried costs related to long-term contracts, net	18	11
Inventories, net	$ 254	$ 218

Other Current and Non-Current Assets (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Other Current and Non-Current Assets
Current deferred income taxes	$ 25	$ 85
Asbestos-related current assets	133	105
Income tax receivable	164	0
Other	100	38
Other current assets	422	228
Other employee benefit-related assets	79	76
Capitalized software costs	13	67
Other	29	38
Other non-current assets	$ 121	$ 181

Other Current and Non-Current Assets (Details Textual) $ in Millions	3 Months Ended
	Mar. 31, 2011 USD ($)
Other Current and Non-Current Assets (Textual) [Abstract]
Capitalized software impairment charge	$ 55

Plant, Property and Equipment, Net (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Plant, Property and Equipment, Net
Land and improvements	$ 17	$ 17
Buildings and improvements	163	164
Machinery and equipment	738	710
Furniture, fixtures and office equipment	62	59
Construction work in progress	46	38
Other	8	11
Plant, property and equipment, gross	1,034	999
Less - accumulated depreciation	(710)	(700)
Plant, property and equipment, net	$ 324	$ 299

Plant, Property and Equipment, Net (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Plant, Property and Equipment, Net (Textual) [Abstract]
Recognized depreciation expense	$ 57	$ 52	$ 54

Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Changes in the carrying amount of goodwill
Goodwill Beginning	$ 504	$ 506
Goodwill acquired	11	3
Adjustments to purchase price allocations	(3)
Foreign currency	(2)	(5)
Goodwill Ending	510	504
Industrial Process [Member]
Changes in the carrying amount of goodwill
Goodwill Beginning	188	184
Goodwill acquired	8	3
Adjustments to purchase price allocations	(3)
Foreign currency	0	(1)
Goodwill Ending	193	188
Motion Technologies [Member]
Changes in the carrying amount of goodwill
Goodwill Beginning	48	52
Goodwill acquired	0	0
Adjustments to purchase price allocations	0
Foreign currency	(1)	(4)
Goodwill Ending	47	48
Interconnect Solutions [Member]
Changes in the carrying amount of goodwill
Goodwill Beginning	70	72
Goodwill acquired	3	0
Adjustments to purchase price allocations	0
Foreign currency	(1)	(2)
Goodwill Ending	72	70
Control Technologies [Member]
Changes in the carrying amount of goodwill
Goodwill Beginning	198	198
Goodwill acquired	0	0
Adjustments to purchase price allocations	0
Foreign currency	0	0
Goodwill Ending	$ 198	$ 198

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Goodwill and Other Intangible Assets, Net (Details 1) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Other intangible assets, net
Finite-lived intangible assets, gross carrying amount	$ 122	$ 118
Accumulated Amortization	(34)	(26)
Indefinite-lived intangible assets, gross carrying amount	17	17
Indefinite-lived intangible assets, net intangibles	17	17
Other intangible assets, net	88	92
Customer Relationships [Member]
Other intangible assets, net
Finite-lived intangible assets, gross carrying amount	77
Accumulated Amortization	(24)
Finite-lived intangible assets, net intangibles	53
Customer and distributor relationships [Member]
Other intangible assets, net
Finite-lived intangible assets, gross carrying amount		74
Accumulated Amortization		(18)
Finite-lived intangible assets, net intangibles		56
Proprietary technology [Member]
Other intangible assets, net
Finite-lived intangible assets, gross carrying amount	20	20
Accumulated Amortization	(7)	(5)
Finite-lived intangible assets, net intangibles	13	15
Trademarks [Member]
Other intangible assets, net
Finite-lived intangible assets, gross carrying amount	3	3
Accumulated Amortization	(1)	(1)
Finite-lived intangible assets, net intangibles	2	2
Patents and other [Member]
Other intangible assets, net
Finite-lived intangible assets, gross carrying amount	5	4
Accumulated Amortization	(2)	(2)
Finite-lived intangible assets, net intangibles	$ 3	$ 2

Goodwill and Other Intangible Assets, Net (Details 2) $ in Millions	12 Months Ended
	Dec. 31, 2011 USD ($)
Estimated amortization expense related to intangible assets
2012	$ 10
2013	9
2014	8
2015	7
2016	$ 7

Goodwill and Other Intangible Assets, Net (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2011 USD ($) yr	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Amortization expense related to finite-lived intangible assets \| $	$ 10	$ 8	$ 8
Xylem [Member]
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Goodwill disposed off \| $	1,617
Exelis [Member]
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Goodwill disposed off \| $	$ 2,156
CAS [Member]
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Goodwill disposed off \| $		$ 76
Customer Relationships [Member]
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Weighted average period (in years) \| yr	14.3
Trademarks [Member]
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Weighted average period (in years) \| yr	7.4
Proprietary technology [Member]
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Weighted average period (in years) \| yr	14.1
Patents and other [Member]
Goodwill and Other Intangible Assets, Net (Textual) [Abstract]
Weighted average period (in years) \| yr	11.7

Accrued Liabilities and Other Non-Current Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Accrued liabilities and other non-current liabilities
Compensation and other employee-benefits	$ 172	$ 167
Asbestos-related liability	139	117
Customer-related liabilities	32	21
Accrued warranty costs	26	27
Accrued income taxes	23	24
Environmental and other legal matters	19	21
Other accrued liabilities	57	65
Accrued liabilities	468	442
Deferred income taxes and other tax-related accruals	136	129
Environmental	91	93
Compensation and other employee-related benefits	46	44
Product liability, guarantees and other legal matters	2	39
Other	20	20
Other non-current liabilities	$ 295	$ 325

Leases and Rentals (Details) $ in Millions	Dec. 31, 2011 USD ($)
Future minimum operating lease payments under long-term operating leases
2012	$ 17
2013	12
2014	10
2015	9
2016	8
2017 and thereafter	78
Total minimum lease payments	$ 134

Leases and Rentals (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Leases and Rentals [Abstract]
Rental expenses under operating leases	$ 16	$ 19	$ 25

Debt (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Debt
Short-term loans	$ 2	$ 0
Current maturities of long-term debt and other	0	10
Short-term debt and current maturities of long-term debt	2	10
Non-current maturities of long-term debt	4	1,256
Non-current capital leases	0	57
Deferred gain on interest rate swaps	0	45
Unamortized discounts and debt issuance costs	0	(8)
Long-term debt	4	1,350
Total debt	$ 6	$ 1,360

Debt (Details 1) - USD ($) $ in Millions	12 Months Ended
Debt (Details 1) - USD ($) $ in Millions	Dec. 31, 2010	Sep. 20, 2011	Dec. 31, 2009
Carrying and Fair Value of Long Term Outstanding Notes and Debentures by Maturity
Interest Rate of Notes and debentures:			6.125%
Carrying Value of Notes and debentures:	$ 1,323
Fair Value of Notes and debentures:	$ 1,478
4.90% Notes and Debentures due May 2014 [Member]
Carrying and Fair Value of Long Term Outstanding Notes and Debentures by Maturity
Maturity Date of Notes and debentures:	May 2014
Interest Rate of Notes and debentures:	4.90%	4.90%
Carrying Value of Notes and debentures:	$ 500
Fair Value of Notes and debentures:	$ 538
6.125% Notes and Debentures due May 2019 [Member]
Carrying and Fair Value of Long Term Outstanding Notes and Debentures by Maturity
Maturity Date of Notes and debentures:	May 2019
Interest Rate of Notes and debentures:	6.125%	6.125%
Carrying Value of Notes and debentures:	$ 500
Fair Value of Notes and debentures:	$ 553
7.40% 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
Fair Value of Notes and debentures:	$ 311
Notes and Debentured 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
Fair Value of Notes and debentures:	$ 1
4.70% Notes and Debentures December 2011 - 2014 [Member]
Carrying and Fair Value of Long Term Outstanding Notes and Debentures by Maturity
Maturity Date of Notes and debentures:	December 2011 – 2014
Interest Rate of Notes and debentures:	4.70%
Carrying Value of Notes and debentures:	$ 66
Fair Value of Notes and debentures:	$ 69
Notes and Debentures Various 2011 - 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:	$ 6
Fair Value of Notes and debentures:	$ 6

Debt (Details Textual) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended	12 Months Ended
Debt (Details Textual) $ / shares in Units, $ in Millions	Oct. 31, 2011 USD ($)	Sep. 30, 2011 USD ($) $ / shares	Jun. 30, 2011 USD ($)	Dec. 31, 2011 USD ($) Office	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Oct. 25, 2011 USD ($)	Oct. 21, 2011 USD ($)	Sep. 20, 2011
Additional Debt (Textual) [Abstract]
Interest rate on senior notes						6.125%
Loss from extinguishment of long-term debt				$ 297
Senior note issued					$ 1,323
Proceeds from issuance of debt				$ 0	0	$ 992
Debt (Textual) [Abstract]
Number of manufacturing and office facilities included in leased property \| Office				5
Long-term debt				$ 4	1,350
Long-term debt repaid				1,319	$ 79	$ 29
Payment related to capital lease obligation			$ 66
Termination of capital lease			$ 5
Reclassification of noncurrent maturity of long term debt to noncurrent capital lease				57
Debt extinguishment				1,251
Gain recognition of previously deferred gain on terminated interest rate swap				43
Expense Recognition of previously deferred debt issuance costs and unamortized debt discounts				$ 6
Number of forward starting interest rate swaps and treasury lock		3
Number of contracts matured	4
Loss on maturity of contracts	$ 3
Revolving credit facility due august two thousand Thirteen [Member]
Additional Debt (Textual) [Abstract]
Previously outstanding credit facility							$ 1,500
ITT 2011 Revolving Credit Agreement [Member]
Additional Debt (Textual) [Abstract]
Maturity period of revolving credit facility	4 years
Extension period of revolving credit facility	1 year
Revolving credit facility							500
Maximum face amount outstanding on letters of credit							100
Minimum amount of reduce commitments							10
Maximum potential increase in credit facility							200
Maximum potential credit facility outstanding							700
Minimum voluntary prepayment Permissible under facility							$ 50
Interest rate over federal funds effective rate							0.05%
Period of LIBOR Rate	1 month
Interest rate over statutory reserve requirement							1.00%
Minimum leverage ratio under credit facility	1.00
Maximum leverage ratio under credit facility	3.00
Minimum interest coverage ratio under credit facility	1.00
Maximum interest coverage ratio under credit facility	3.00
4.90% Notes and Debentures due May 2014 [Member]
Additional Debt (Textual) [Abstract]
Interest rate on senior notes					4.90%				4.90%
Redemption price of senior notes		$ 1,098
Par value of note \| $ / shares		$ 1,000
Senior note issued					$ 500
Notes and Debentured due August 2048 [Member]
Additional Debt (Textual) [Abstract]
Interest rate on variable rate debt					0.19%
Senior note issued					$ 1
Notes and Debentures Various 2011 - 2022 [Member]
Additional Debt (Textual) [Abstract]
Long-term debt weighted average interest rate					4.86%
Senior note issued					$ 6
6.125% Notes and Debentures due May 2019 [Member]
Additional Debt (Textual) [Abstract]
Interest rate on senior notes					6.125%				6.125%
Redemption price of senior notes		$ 1,235
Par value of note \| $ / shares		$ 1,000
Senior note issued					$ 500
4.90% Notes and Debentures due May 2014 and 6.125% Notes and Debentures due May 2019 [Member]
Additional Debt (Textual) [Abstract]
Loss from extinguishment of long-term debt		$ 167
7.40% Notes and Debentures due November 2025 [Member]
Additional Debt (Textual) [Abstract]
Interest rate on senior notes					7.40%
Senior note issued					$ 250
7.40% Notes and Debentures due November 2025 One [Member]
Additional Debt (Textual) [Abstract]
Interest rate on senior notes									7.40%
Loss from extinguishment of long-term debt		51
Maximum amount of extinguishment of debt amount in cash tender offer		100
Defeasance of principal amount		$ 88
7.40% Notes and Debentures due November 2025 Two [Member]
Additional Debt (Textual) [Abstract]
Loss from extinguishment of long-term debt	$ 107
Defeasance of principal amount	$ 162
Cash deposited in trust to redeem debts								$ 6
Aggregated purchase price in trust to redeem debts								$ 263

Postretirement Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary of the funded status of our postretirement benefit plans and the presentation of such balances within our Consolidated Balance Sheet
Fair value of plan assets	$ 192	$ 195
Projected benefit obligation	522	474
Funded status	(330)	(279)
Amounts reported within:
Accrued liabilities	(14)	(13)
Non-current liabilities	(316)	(267)
Pension [Member]
Summary of the funded status of our postretirement benefit plans and the presentation of such balances within our Consolidated Balance Sheet
Fair value of plan assets	184	187	$ 176
Projected benefit obligation	330	299	280
Funded status	(146)	(112)
Amounts reported within:
Accrued liabilities	(4)	(3)
Non-current liabilities	(142)	(109)
Other Benefits [Member]
Summary of the funded status of our postretirement benefit plans and the presentation of such balances within our Consolidated Balance Sheet
Fair value of plan assets	8	8	8
Projected benefit obligation	192	175	$ 171
Funded status	(184)	(167)
Amounts reported within:
Accrued liabilities	(10)	(10)
Non-current liabilities	$ (174)	$ (158)

- Definition

1) For defined benefit pension plans, the benefit obligation is the projected benefit obligation, which is the actuarial present value as of a date of all benefits attributed by the pension benefit formula to employee service rendered prior to that date. 2) For other postretirement defined benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, which is the actuarial present value of benefits attributed to employee service rendered to a particular date.

+ References

+ Details

- Definition

Assets, usually stocks, bonds, and other investments, that have been segregated and restricted (usually in a trust) to provide benefits, at their fair value as of the measurement date. Plan assets include amounts contributed by the employer (and by employees for a contributory plan) and amounts earned from investing the contributions, less benefits paid. If a plan has liabilities other than for benefits, those non-benefit obligations may be considered as reductions of plan assets.

+ References + Details

- Definition

This represents the noncurrent liability for underfunded plans recognized in the balance sheet that is associated with the defined benefit pension plans and other postretirement defined benefit plans.

+ References

+ Details

Postretirement Benefit Plans (Details 1) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Amount recognized in consolidated in accumulated other comprehensive income
Net actuarial loss	$ 205	$ 145
Prior service cost (benefit)	5	8
Total	210	153
Pension [Member]
Amount recognized in consolidated in accumulated other comprehensive income
Net actuarial loss	147	100
Prior service cost (benefit)	6	9
Total	153	109
Other Benefits [Member]
Amount recognized in consolidated in accumulated other comprehensive income
Net actuarial loss	58	45
Prior service cost (benefit)	(1)	(1)
Total	$ 57	$ 44

- Definition

Amount related to the pretax cost of benefit changes attributable to plan participants' prior service pursuant to a plan amendment or a plan initiation, which has not yet been recognized as components of net periodic benefit cost.

+ References

+ Details

Postretirement Benefit Plans (Details 2) - USD ($) $ in Millions	2 Months Ended		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Change in benefit obligation
Benefit obligation - January 1			$ 474
Service cost			7	$ 7	$ 5
Interest cost			15	16	16
Benefit obligation - December 31	$ 522	$ 474	522	474
U.S. Pension Plans [Member]
Change in benefit obligation
Benefit obligation - January 1			246	229
Service cost			6	6	4
Interest cost			13	14	13
Amendments /other			(2)	(1)
Actuarial loss			27	10
Benefits paid		(12)	(13)	(12)
Curtailment / Special termination benefit			1	0
Liabilities assumed through acquisition			0	0
Foreign currency translation	0			0
Benefit obligation - December 31	278	246	278	246	229
International Pension Plan [Member]
Change in benefit obligation
Benefit obligation - January 1			53	51
Service cost			1	1	1
Interest cost			2	2	3
Amendments /other			0	2
Actuarial loss			(1)	(1)
Benefits paid		(2)	(3)	(2)
Curtailment / Special termination benefit			0	1
Liabilities assumed through acquisition			1	0
Foreign currency translation	(1)			(1)
Benefit obligation - December 31	52	53	52	53	51
Pension [Member]
Change in benefit obligation
Benefit obligation - January 1			299	280
Service cost			7	7
Interest cost			15	16
Amendments /other			(2)	1
Actuarial loss			26	9
Benefits paid		(14)	(16)	(14)
Curtailment / Special termination benefit			1	1
Liabilities assumed through acquisition			1	0
Foreign currency translation	(1)			(1)
Benefit obligation - December 31	$ 330	$ 299	$ 330	$ 299	$ 280

Postretirement Benefit Plans (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Change in benefit obligation
Benefit obligation - January 1	$ 474
Service cost	7	$ 7	$ 5
Interest cost	15	16	16
Benefit obligation - December 31	522	474
Other Benefits [Member]
Change in benefit obligation
Benefit obligation - January 1	175	171
Service cost	2	2	2
Interest cost	9	9	10
Actuarial loss	15	2
Benefits paid	(9)	(9)
Benefit obligation - December 31	$ 192	$ 175	$ 171

- Definition

The net increase or decrease of changes in the value of either the benefit obligation or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption, or the consequence of a decision to temporarily deviate from the substantive plan.

The amount of payments made for which participants are entitled under a pension plan, including pension benefits, death benefits, and benefits due on termination of employment. Also includes payments made under a postretirement benefit plan, including prescription drug benefits, health care benefits, life insurance benefits, and legal, educational and advisory services. This item represents a periodic decrease to the plan obligations and a decrease to plan assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Postretirement Benefits
-URI http://asc.fasb.org/extlink&oid=6521376

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39716-114964

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)(5)
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Benefits
-URI http://asc.fasb.org/extlink&oid=6506267
-Topic 715
-SubTopic 30

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(6)
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Benefits
-URI http://asc.fasb.org/extlink&oid=6506309
-Topic 715
-SubTopic 60

+ Details

- Definition

The increase in a defined benefit pension plan's projected benefit obligation or a defined benefit postretirement plan's accumulated postretirement benefit obligation due to the passage of time.

+ References + Details

- Definition

The actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during the period. The portion of the expected postretirement benefit obligation attributed to employee service during the period. The service cost component is a portion of the benefit obligation and is unaffected by the funded status of the plan.

+ References

+ Details

Postretirement Benefit Plans (Details 4) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Change in plan assets
Plan assets - January 1		$ 195
Expenses	$ (2)	(2)
Plan assets - December 31	195	192	$ 195
Funded status at end of year	(279)	(330)	(279)
U.S. Pension Plans [Member]
Change in plan assets
Plan assets - January 1		185	174
Actual return on plan assets	23	(6)
Employer contributions	2	18
Benefits paid	(12)	(13)	(12)
Expenses	(2)	(2)
Plan assets - December 31	185	182	185
Funded status at end of year	(61)	(96)	(61)
Pension [Member]
Change in plan assets
Plan assets - January 1		187	176
Actual return on plan assets	23	(6)
Employer contributions	5	21
Benefits paid	(14)	(16)	(14)
Plan assets - December 31	187	184	187
Funded status at end of year	(112)	(146)	(112)
International Pension Plan [Member]
Change in plan assets
Plan assets - January 1		2	2
Actual return on plan assets	0	0
Employer contributions	3	3
Benefits paid	(2)	(3)	(2)
Expenses	0
Plan assets - December 31	2	2	2
Funded status at end of year	$ (51)	$ (50)	$ (51)

Postretirement Benefit Plans (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Change in plan assets
Plan assets - January 1	$ 195
Plan assets - December 31	192	$ 195
Funded status at end of year	(330)	(279)
Other Benefits [Member]
Change in plan assets
Plan assets - January 1	8	8
Actual return on plan assets	9	9
Benefits paid	(9)	(9)
Plan assets - December 31	8	8
Funded status at end of year	$ (184)	$ (167)

- Definition

The difference between fair value of plan assets at the end of the period and the fair value at the beginning of the period, adjusted for contributions and payments of benefits during the period, and after adjusting for taxes and other expenses, as applicable.

+ References + Details

Postretirement Benefit Plans (Details 6) - USD ($)
$ in Millions

Dec. 31, 2011

Dec. 31, 2010

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

Projected benefit obligation

$ 328

$ 299

Accumulated benefit obligation

328

297

Fair value of plan assets

$ 182

^[1]

$ 187

[1]	Shares issued and outstanding include unvested restricted common stock of 0.5 and 0.6 at December 31, 2011 and 2010, respectively.

Postretirement Benefit Plans (Details 7) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Net periodic benefit cost:
Service cost	$ 7	$ 7	$ 5
Interest cost	15	16	16
Expected return on plan assets	(19)	(18)	(18)
Amortization of net actuarial loss	4	2	2
Amortization of prior service cost	1	1	1
Net periodic benefit cost (income)	8	8	6
Effect of curtailment/ Special termination benefit	3	2	0
Total net periodic benefit cost (income)	11	10	6
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss	(51)	(5)	10
Prior service cost	0	1	0
Amortization of net actuarial loss	(4)	(2)	(2)
Amortization of prior service cost	(3)	(1)	(1)
Total change recognized in other comprehensive income	44	3	(13)
Total impact from net periodic benefit cost and changes in other comprehensive income	55	13	(7)
U.S. Pension Plans [Member]
Net periodic benefit cost:
Service cost	6	6	4
Interest cost	13	14	13
Expected return on plan assets	(19)	(18)	(18)
Amortization of net actuarial loss	4	2	2
Amortization of prior service cost	1	1	1
Net periodic benefit cost (income)	5	5	2
Effect of curtailment/ Special termination benefit	3	0
Total net periodic benefit cost (income)	8	5	2
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss	(52)	(5)	10
Prior service cost	0	1	0
Amortization of net actuarial loss	(4)	(2)	(2)
Amortization of prior service cost	(3)	(1)	(1)
Total change recognized in other comprehensive income	45	3	(13)
Total impact from net periodic benefit cost and changes in other comprehensive income	53	8	(11)
International Pension Plan [Member]
Net periodic benefit cost:
Service cost	1	1	1
Interest cost	2	2	3
Expected return on plan assets	0	0	0
Amortization of net actuarial loss	0	0	0
Amortization of prior service cost	0	0	0
Net periodic benefit cost (income)	3	3	4
Effect of curtailment/ Special termination benefit	0	2	0
Total net periodic benefit cost (income)	3	5	4
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss	1	0	0
Prior service cost	0	0	0
Amortization of net actuarial loss	0	0	0
Amortization of prior service cost	0	0	0
Total change recognized in other comprehensive income	(1)	0	0
Total impact from net periodic benefit cost and changes in other comprehensive income	2	5	4
Other Benefits [Member]
Net periodic benefit cost:
Service cost	2	2	2
Interest cost	9	9	10
Expected return on plan assets	(1)	(1)	(1)
Amortization of net actuarial loss	3	1	2
Total net periodic benefit cost (income)	13	11	13
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss	15	2	7
Amortization of net actuarial loss	(3)	(1)	(2)
Total change recognized in other comprehensive income	12	1	5
Total impact from net periodic benefit cost and changes in other comprehensive income	$ 25	$ 12	$ 18

Postretirement Benefit Plans (Details 8) $ in Millions	12 Months Ended
Postretirement Benefit Plans (Details 8) $ in Millions	Dec. 31, 2011 USD ($)
Net loss and prior service cost that will be amortized from accumulated other comprehensive loss
Net actuarial loss	$ 10
Prior service cost	1
Total net loss and prior service cost	11
Pension [Member]
Net loss and prior service cost that will be amortized from accumulated other comprehensive loss
Net actuarial loss	6
Prior service cost	1
Total net loss and prior service cost	7
Other Benefits [Member]
Net loss and prior service cost that will be amortized from accumulated other comprehensive loss
Net actuarial loss	4
Prior service cost	0
Total net loss and prior service cost	$ 4

Postretirement Benefit Plans (Details 9)	12 Months Ended
Postretirement Benefit Plans (Details 9)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Weighted-average assumptions used to determine net periodic benefit cost
Expected rate of return on plan assets	9.00%	9.00%	9.00%
U.S. Pension Plans [Member]
Weighted-average assumptions used to determine projected benefit obligations
Discount rate	4.79%	5.69%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	5.69%	6.00%
Expected rate of return on plan assets	9.00%	9.00%
International Pension Plan [Member]
Weighted-average assumptions used to determine projected benefit obligations
Discount rate	4.85%	5.03%
Rate of future compensation increase	2.46%	2.42%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	5.03%	5.09%
Expected rate of return on plan assets	4.75%	4.75%
Other Benefits [Member]
Weighted-average assumptions used to determine projected benefit obligations
Discount rate	4.80%	5.50%
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate	5.50%	6.00%
Expected rate of return on plan assets	9.00%	9.00%

Postretirement Benefit Plans (Details 10)	12 Months Ended
Postretirement Benefit Plans (Details 10)	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Actual versus the expected long-term returns for postretirement plans
Expected rate of return on plan assets	9.00%	9.00%	9.00%
Actual rate of return on plan assets	(3.20%)	14.10%	24.10%

Postretirement Benefit Plans (Details 11)	12 Months Ended
Postretirement Benefit Plans (Details 11)	Dec. 31, 2011	Dec. 31, 2010
Domestic equities [Member]
Asset allocation ranges
Actual allocation	33.00%	25.00%
Minimum range	30.00%	25.00%
Maximum range	40.00%	75.00%
Alternative investments [Member]
Asset allocation ranges
Actual allocation	0.00%	47.00%
Minimum range	0.00%	20.00%
Maximum range	0.00%	45.00%
International equities [Member]
Asset allocation ranges
Actual allocation	27.00%	18.00%
Minimum range	20.00%	10.00%
Maximum range	40.00%	45.00%
Fixed income [Member]
Asset allocation ranges
Actual allocation, Fixed income	35.00%	2.00%
Asset allocation, Fixed income, Minimum	25.00%	0.00%
Asset allocation, Fixed income, Maximum	45.00%	60.00%
Cash and other [Member]
Asset allocation ranges
Actual allocation, Cash and other	5.00%	8.00%
Asset allocation, Cash and other, Minimum	0.00%	0.00%
Asset allocation, Cash and other, Maximum	5.00%	30.00%

Postretirement Benefit Plans (Details 13) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	$ 195
Plan assets - December 31	192	$ 195
Pension [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	187	176
Plan assets - December 31	184	187
Pension [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	82	79
Realized gains (losses), net	2	4
Unrealized gains (losses), net	0	5
Purchases/(sales) and settlements, net	(84)	(1)
Transfers in (out), net	0	(5)
Plan assets - December 31	0	82
Equities securities [Member] \| Pension [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	11	9
Realized gains (losses), net	(1)	0
Unrealized gains (losses), net	0	2
Purchases/(sales) and settlements, net	(10)	0
Transfers in (out), net	0	0
Plan assets - December 31	0	11
Private equity [Member] \| Pension [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	55
Plan assets - December 31		55
Private equity [Member] \| Pension [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	48	47
Realized gains (losses), net	3	4
Unrealized gains (losses), net	0	2
Purchases/(sales) and settlements, net	(51)	0
Transfers in (out), net	0	(5)
Plan assets - December 31	0	48
Absolute Return [Member] \| Pension [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	32
Plan assets - December 31		32
Absolute Return [Member] \| Pension [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	20	21
Realized gains (losses), net	0	0
Unrealized gains (losses), net	0	1
Purchases/(sales) and settlements, net	(20)	(2)
Transfers in (out), net	0	0
Plan assets - December 31	0	20
Commodities, fixed income and other [Member] \| Pension [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	19
Plan assets - December 31		19
Commodities, fixed income and other [Member] \| Pension [Member] \| Level 3 [Member]
Fair value measurement pension plan and postretirement welfare
Plan assets - January 1	3	2
Realized gains (losses), net	0	0
Unrealized gains (losses), net	0	0
Purchases/(sales) and settlements, net	(3)	1
Transfers in (out), net	0	0
Plan assets - December 31	$ 0	$ 3

Postretirement Benefit Plans (Details 14) $ in Millions	Dec. 31, 2011 USD ($)
U.S. Pension Plans [Member]
Defined Benefit Plan Estimated Future Benefit Payments [Abstract]
2012	$ 15
2013	15
2014	16
2015	16
2016	17
2017-2021	93
International Pension Plan [Member]
Defined Benefit Plan Estimated Future Benefit Payments [Abstract]
2012	3
2013	3
2014	4
2015	4
2016	4
2017-2021	17
Other Benefits [Member]
Defined Benefit Plan Estimated Future Benefit Payments [Abstract]
2012	11
2013	11
2014	11
2015	12
2016	12
2017-2021	$ 61

Postretirement Benefit Plans (Details Textual) shares in Millions, $ in Millions	2 Months Ended			12 Months Ended
	Dec. 31, 2011 USD ($) shares	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2011 USD ($) Participants shares	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Employee Benefit Plans (Additional) (Textual) [Abstract]
Stock fund held approximately \| shares	0.5			0.5
Percentage of projected benefit obligation provides health care and life insurance benefits to new participants	70.00%			70.00%
Active participants in numerous defined benefit pension plans \| Participants				0
Funded status of postretirement benefit plans	$ (330)	$ (279)		$ (330)	$ (279)
Postretirement Benefit Plan (Textual) [Abstract]
Accumulated benefit obligation	328	297		$ 328	297
Assumed rate of future increase in per capita cost of health care for 2012				7.30%
Assumed rate of future decrease in per capita cost of health care for 2019				5.00%
Effect of one percent increase on benefit obligation				$ 23
Effect of one percent increase on annual service and interest cost components				2
Effect of one percent decrease on benefit obligation				19
Effect of one percent decrease on annual service and interest cost components				1
Foreign government plan assets	2			2
Part of net contribution expected to be made in first quarter				2
Employees Related expenses in SRP	15	9	$ 4
Maximum [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Contribution to range related to pension	25			$ 25
Maturities period corporate bonds				30 years
Minimum [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Contribution to range related to pension	20			$ 20
Maturities period corporate bonds				0 years
Pension [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Contributions made to pension plans		5		$ 21
Funded status of postretirement benefit plans	$ (146)	(112)		$ (146)	(112)
ITT Pension Plan for Bargaining Unit Employees Seneca Falls [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Projected Benefit Obligation	28.00%			28.00%
ITT Consolidated Hourly Pension Plan [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Projected Benefit Obligation	26.00%			26.00%
Other Non Qualified US Plan [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Projected Benefit Obligation	30.00%			30.00%
U.S. Pension Plans [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Contributions made to pension plans		2		$ 18
Long-term annual rate of return for domestic pension plans				8.00%
Funded status of postretirement benefit plans	$ (96)	(61)		$ (96)	(61)
International Pension Plan [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Contributions made to pension plans		3		$ 3
Projected Benefit Obligation	16.00%			16.00%
Funded status of postretirement benefit plans	$ (50)	(51)		$ (50)	(51)
Postretirement Benefit Plans [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Company recorded curtailment expense				$ 1
Company contribution percentage of base pay prior to enhancement				3.50%
Period of distribution				5 years
Contributions made to pension plans				$ 21	$ 5
Postretirement Benefit Plans [Member] \| Maximum [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Company contribution percentage of base pay post enhancement				7.00%
Percentage of transition credit				5.00%
Postretirement Benefit Plans [Member] \| Minimum [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Company contribution percentage of base pay post enhancement				6.00%
Defined Contribution Plans [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Contributions made to pension plans		$ 7		$ 8		$ 5
Exelis [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Shares held in Retirement Savings Plan for salaried employees and Hourly Savings Plan \| shares	0.4			0.4
Xylem [Member]
Employee Benefit Plans (Additional) (Textual) [Abstract]
Shares held in Retirement Savings Plan for salaried employees and Hourly Savings Plan \| shares	1.1			1.1

Long-Term Incentive Employee Compensation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Long-Term Incentive Employee Compensation Expense
Share-based compensation expense, equity-based awards	$ 23	$ 14	$ 16
Share-based compensation expense, liability-based awards	2	(4)	2
Total share-based compensation expense in operating income (loss)	25	10	18
Tax benefit	8	3	6
Share-based compensation expense, net of tax	$ 17	$ 7	$ 12

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Long-Term Incentive Employee Compensation (Details 1) - $ / shares shares in Millions	2 Months Ended			10 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Oct. 31, 2011	Oct. 31, 2010	Oct. 31, 2009
Stock options outstanding rollforward
Outstanding, shares	8.0	0.0	0.0	3.7	4.0	4.1
Outstanding, Weighted Average Exercise Price	$ 16.18	$ 0	$ 0	$ 85.08	$ 80.58	$ 79.66
Stock options granted, shares	0.7	0.0	0.0	0.3	0.4	0.4
Stock options granted, Weighted Average Exercise Price	$ 20.28	$ 0.00	$ 0.00	$ 115.36	$ 106.60	$ 67.18
Stock options exercised, shares	(0.7)	0.0	0.0	(0.7)	(0.6)	(0.4)
Stock options exercised, Weighted Average Exercise Price	$ 13.87	$ 0.00	$ 0.00	$ 76.27	$ 62.90	$ 52.64
Stock options cancelled or expired, shares				(1.3)	(0.1)	(0.1)
Stock options cancelled or expired, Weighted Average Exercise Price				$ 92.76	$ 97.56	$ 91.88
Outstanding on Distribution Date before equitable adjustment, Shares				2.0	0.0	0.0
Outstanding on Distribution Date before equitable adjustment, Weighted Average Exercise Price				$ 88.52	$ 0.00	$ 0.00
Outstanding on Distribution Date after equitable adjustment	8.0	3.7	4.0	8.0	0.0	0.0
Outstanding, Weighted Average Exercise Price	$ 16.70	$ 85.08	$ 80.58	$ 16.18	$ 0	$ 0
Stock options exercisable at the end of year, shares	6.3	3.0	3.2
Stock options exercisable at the end of year, Weighted Average Exercise Price	$ 16.03	$ 83.72	$ 78.98

Long-Term Incentive Employee Compensation (Details 2) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2011 USD ($) yr $ / shares shares
Share based compensation, summary of stock options
Stock Options Outstanding, Number \| shares	8.0
Stock Options Outstanding, Weighted-Average Contractual Remaining Life (In Years) \| yr	3.0
Stock Options Outstanding, Weighted-Average Exercise Price	$ 16.70
Stock Options Outstanding, Aggregate Intrinsic Value \| $	$ 25
Stock options exercisable, Number \| shares	6.3
Stock Options Exercisable, Weighted-Average Contractual Remaining Life (In Years) \| yr	1.6
Stock options exercisable, Weighted Average Exercise Price	$ 16.03
Stock Options Exercisable, Aggregate Intrinsic Value \| $	$ 23
$5 - $10 [Member]
Share based compensation, summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	$ 5
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 10
Stock Options Outstanding, Number \| shares	0.2
Stock Options Outstanding, Weighted-Average Exercise Price	$ 9.46
Stock Options Outstanding, Aggregate Intrinsic Value \| $	$ 2
Stock options exercisable, Number \| shares	0.2
Stock options exercisable, Weighted Average Exercise Price	$ 9.46
Stock Options Exercisable, Aggregate Intrinsic Value \| $	$ 2
$10 - $15 [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	$ 15
Stock Options Outstanding, Number \| shares	2.9
Stock Options Outstanding, Weighted-Average Contractual Remaining Life (In Years) \| yr	2.2
Stock Options Outstanding, Weighted-Average Exercise Price	$ 12.98
Stock Options Outstanding, Aggregate Intrinsic Value \| $	$ 18
Stock options exercisable, Number \| shares	2.6
Stock Options Exercisable, Weighted-Average Contractual Remaining Life (In Years) \| yr	1.9
Stock options exercisable, Weighted Average Exercise Price	$ 13.04
Stock Options Exercisable, Aggregate Intrinsic Value \| $	$ 16
$15 - $20 [Member]
Share based compensation, summary of stock options
Share-based Compensation, Exercise Price Range, Lower Range Limit	$ 15
Share-based Compensation, Exercise Price Range, Upper Range Limit	$ 20
Stock Options Outstanding, Number \| shares	3.3
Stock Options Outstanding, Weighted-Average Contractual Remaining Life (In Years) \| yr	1.9
Stock Options Outstanding, Weighted-Average Exercise Price	$ 18.21
Stock Options Outstanding, Aggregate Intrinsic Value \| $	$ 5
Stock options exercisable, Number \| shares	3.0
Stock Options Exercisable, Weighted-Average Contractual Remaining Life (In Years) \| yr	1.2
Stock options exercisable, Weighted Average Exercise Price	$ 18.02
Stock Options Exercisable, Aggregate Intrinsic Value \| $	$ 5
$20 - $26 [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	$ 26
Stock Options Outstanding, Number \| shares	1.6
Stock Options Outstanding, Weighted-Average Contractual Remaining Life (In Years) \| yr	7.2
Stock Options Outstanding, Weighted-Average Exercise Price	$ 21.19
Stock Options Outstanding, Aggregate Intrinsic Value \| $	$ 0
Stock options exercisable, Number \| shares	0.5
Stock Options Exercisable, Weighted-Average Contractual Remaining Life (In Years) \| yr	2.2
Stock options exercisable, Weighted Average Exercise Price	$ 22.04
Stock Options Exercisable, Aggregate Intrinsic Value \| $	$ 0

Long-Term Incentive Employee Compensation (Details 3)	12 Months Ended
Long-Term Incentive Employee Compensation (Details 3)	Dec. 31, 2011 yr $ / shares	Dec. 31, 2010 yr $ / shares	Dec. 31, 2009 yr $ / shares
Assumptions utilized to measure fair value
Dividend yield		1.88%	2.54%
Expected volatility		27.06%	38.77%
Expected life (in years) \| yr		7.0	4.7
Risk-free rates		3.06%	2.20%
Weighted-average grant date fair value \| $ / shares	$ 95.14	$ 29.00	$ 19.20
November 7, 2011 Grants plan [Member]
Assumptions utilized to measure fair value
Dividend yield	1.79%
Expected volatility	39.30%
Expected life (in years) \| yr	7.0
Risk-free rates	1.51%
Weighted-average grant date fair value \| $ / shares	$ 6.97
2011 Grants Before Distribution plan [Member]
Assumptions utilized to measure fair value
Dividend yield	1.73%
Expected volatility	24.74%
Expected life (in years) \| yr	7.0
Risk-free rates	3.05%
Weighted-average grant date fair value \| $ / shares	$ 29.70

Long -Term Incentive Employee Compensation (Details 4) - $ / shares	2 Months Ended			10 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Oct. 31, 2011	Oct. 31, 2010	Oct. 31, 2009
Restricted shares and restricted stock unit awards granted with fair market values
Granted , shares			0
Granted, Weighted Average Grant Date Fair Value		$ 0	$ 0
Restricted Stock [Member]
Restricted shares and restricted stock unit awards granted with fair market values
Outstanding, shares				900,000	800,000	700,000
Outstanding, Weighted Average Grant Date Fair Value				$ 89.70
Outstanding, Weighted Average Exercise Price				$ 89.62	$ 88.72	$ 103.92
Granted , shares	400,000	0		300,000	300,000	300,000
Granted, Weighted Average Grant Date Fair Value	$ 20.27			$ 115.18
Granted, Weighted Average Exercise Price					$ 106.50	$ 67.76
Lapsed, shares				(300,000)	(200,000)	(200,000)
Lapsed, Weighted Average Grant Date Fair Value				$ 99.53
Lapsed, Weighted Average Exercise Price					$ 108.88	$ 105.66
Canceled, shares				(600,000)	0	0
Canceled, Weighted Average Grant Date Fair Value				$ 95.30
Cancelled, Weighted Average Exercise Price					$ 89.50	$ 109.88
Outstanding, shares	1,400,000	900,000	800,000
Outstanding, Weighted Average Grant Date Fair Value	$ 18.55	$ 89.70
Before Equitable Adjustment[Member]
Restricted shares and restricted stock unit awards granted with fair market values
Outstanding, Weighted Average Exercise Price		$ 0	$ 0
Before Equitable Adjustment[Member] \| Restricted Stock [Member]
Restricted shares and restricted stock unit awards granted with fair market values
Outstanding, shares	300,000	0	0
Outstanding, Weighted Average Grant Date Fair Value	$ 93.42
Outstanding, shares				300,000	0	0
Outstanding, Weighted Average Grant Date Fair Value				$ 93.42
After Equitable Adjustment [Member]
Restricted shares and restricted stock unit awards granted with fair market values
Outstanding, Weighted Average Exercise Price		$ 0	$ 0
After Equitable Adjustment [Member] \| Restricted Stock [Member]
Restricted shares and restricted stock unit awards granted with fair market values
Outstanding, shares	1,000,000	0	0
Outstanding, Weighted Average Grant Date Fair Value	$ 17.94
Outstanding, shares				1,000,000	0	0
Outstanding, Weighted Average Grant Date Fair Value				$ 17.94

Long-Term Incentive Employee Compensation (Details Textual) $ / shares in Units, shares in Millions, $ in Millions	2 Months Ended			10 Months Ended			12 Months Ended
	Dec. 31, 2011 USD ($) yr $ / shares shares	Dec. 31, 2010 shares	Dec. 31, 2009 shares	Oct. 31, 2011 USD ($) shares	Oct. 31, 2010 shares	Oct. 31, 2009 shares	Dec. 31, 2011 USD ($) yr $ / shares shares	Dec. 31, 2010 USD ($) $ / shares	Dec. 31, 2009 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares initially available for awards under this Stock Option plan							4.6
Share available for future grant under stock option	41.1						41.1
Granted , shares			0.0
Long-Term Incentive Employee Compensation (Textual) [Abstract]
Unrecognized compensation cost related to unvested options and restricted stock \| $	$ 22						$ 22
Unrecognized compensation cost weighted average amortization period (years) \| yr							3
Transformation costs \| $							$ 13
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 a contractual term of seven years. Options granted prior to 2004 and during 2010 and 2011 were awarded with a contractual term of ten years.
Intrinsic value of options exercised \| $							$ 30	$ 22	$ 18
Cash received from the exercise of stock options \| $							62	35	20
Tax benefit realized from stock options exercised \| $							17		11
Tax benefit realized with lapses of restricted stock \| $								14
Excess Tax benefit from stock activity \| $							$ 7	$ 6	$ 3
ITT's closing stock price \| $ / shares	$ 19.33						$ 19.33
Exercisable options out of the money							1.7
Total number of stock option expected to vest	7.9						7.9
Weighted average price of stock options expected to vest \| $ / shares	$ 16.65						$ 16.65
Aggregate intrinsic value of stock options expected to vest \| $	$ 25						$ 25
Weighted average remaining contractual life stock option expected to vest \| yr	2.9						2.9
Maturity date of contractual life of 0.2 options							Jan. 02, 2012
Restricted Stock Outstanding Vested Shares Till Termination Of Service	0.1						0.1
Performance period for measuring fair value of outstanding awards	3 years
Total number of restricted Stock expected to vest	1.3						1.3
Weighted-average grant date fair value \| $ / shares							$ 95.14	$ 29.00	$ 19.20
Share-based compensation, vesting period							Over 3 Years
Issuance of shares from treasury account related to equity compensation arrangements							0.8
Target Payout percentage of unvested portion to settle via cash payment for modification of Awards	100.00%
Cash payment to settle TSR modified awards							Less than $1
Outstanding weighted average post exercise price \| $ / shares	$ 92.20						$ 92.20
Incremental fair value (modification charge) \| $				$ 1
Charge after vested awards \| $				$ 9
Deferred compensation cost \| $							$ 2
Percentage of restricted stock units outstanding	63.00%	21.00%	19.00%				63.00%	21.00%	19.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period, maximum							10 years
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, vesting period, minimum							7 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted and Cancelled to the employees of Exelis/Xylem, shares				1.2
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted , shares	0.4	0.0		0.3	0.3	0.3
Converted and Cancelled to the employees of Exelis/Xylem, shares				0.5
Share cancelled in connection with distribution							0.5
TSR Plan Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash payments to settle awards	0	18	21				0	18	21
Options granted between 2004 and 2009 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted awards with a contractual term \| yr	7						7
Options granted prior to 2004, during 2010 and 2011 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted awards with a contractual term \| yr	10						10
Qualified Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share cancelled in connection with distribution							1.2

Capital Stock (Details) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2011 $ / shares shares	Dec. 31, 2010 $ / shares shares	Dec. 31, 2009 $ / shares	Oct. 31, 2011 $ / shares	Dec. 31, 2008 USD ($) shares	Dec. 16, 2008	Oct. 27, 2006 USD ($)
Capital Stock (Textual) [Abstract]
Common stock of ITT, Shares issued	104.1	104.1
Capital Stock (Additional Textual) [Abstract]
Aggregate common stock and preferred stock authorized	300.0
Common stock	250.0	250.0
Common stock, par value \| $ / shares	$ 1	$ 1		$ 1
Preferred Stock	50.0
Preferred Stock, par value \| $ / shares	$ 0
Preferred Stock, outstanding	0.0	0.0
Cash dividends declared per common share \| $ / shares	$ 1.591	$ 2.00	$ 1.70
Share repurchase program \| $							$ 1,000
Term of repurchase program						3 years
Share purchased under share repurchase program					3.6
Share purchased under share repurchase program, value \| $					$ 431
Issuance of shares from treasury account related to equity compensation arrangements	0.8
Common Stock held in treasury account	10.6	11.5
Stockholders equity note reverse stock split conversion ratio				0.50
Xylem [Member]
Capital Stock (Textual) [Abstract]
Common stock of ITT, Shares issued	1.0
Exelis [Member]
Capital Stock (Textual) [Abstract]
Common stock of ITT, Shares issued	1.0

Commitments and Contingencies (Details) - Claim	2 Months Ended	12 Months Ended
Commitments and Contingencies (Details) - Claim	Dec. 31, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Activity related to asbestos claims
Pending claims (a) - December 31	105,486	105,486
Asbestos Issue [Member]
Activity related to asbestos claims
Pending claims (a) - January 1		103,575	104,679	103,006
New claims		5,691	5,865	4,274
Settlements		(1,426)	(991)	(1,081)
Dismissals		(2,354)	(6,469)	(4,728)
Adjustment (c)	0		491	3,208
Pending claims (a) - December 31	105,486	105,486	103,575	104,679

Commitments and Contingencies (Details 1) - USD ($) $ in Millions	2 Months Ended	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Effect of asbestos charges on income statement
Provision Continuing Operations		$ 59	$ 55	$ 28
Provision Discontinued Operations		3	0	(4)
Remeasurement Continuing Operations		41	330	210
Remeasurement Discontinued Operations		(9)	(10)	13
Asbestos-related costs before tax Continuing Operations		100	385	238
Asbestos-related costs before tax Discontinued Operations		(6)	(10)	9
Tax benefit Continuing Operations		37	144	95
Tax benefit Discontinued Operations		(2)	(4)	3
Asbestos-related costs net of tax Continuing Operation		63	241	143
Asbestos-related costs net of tax Discontinued Operations		(4)	(6)	6
Provision		62	55	24
Remeasurement		32	320	223
Asbestos-related costs before tax		94	375	247
Tax benefit		35	140	90
Asbestos-related costs, net of tax		59	235	157
Asset [Member]
Effect of asbestos charges on income statement
Provision Continuing Operations		26	12	28
Provision Discontinued Operations		21	50	6
Remeasurement Continuing Operations		(3)	194	434
Remeasurement Discontinued Operations		(73)	177	51
Asbestos-related costs before tax Continuing Operations		23	206	462
Asbestos-related costs before tax Discontinued Operations		(52)	227	57
Tax benefit Continuing Operations	$ 0	0	0
Tax benefit Discontinued Operations	0	0	0
Asbestos-related costs net of tax Continuing Operation	0	0	0
Asbestos-related costs net of tax Discontinued Operations	0	0	0
Liability [Member]
Effect of asbestos charges on income statement
Provision Continuing Operations		85	67	56
Provision Discontinued Operations		24	50	2
Remeasurement Continuing Operations		38	524	644
Remeasurement Discontinued Operations		(82)	167	64
Asbestos-related costs before tax Continuing Operations		123	591	700
Asbestos-related costs before tax Discontinued Operations		(58)	217	$ 66
Tax benefit Continuing Operations	0	0	0
Tax benefit Discontinued Operations	0	0	0
Asbestos-related costs net of tax Continuing Operation	0	0	0
Asbestos-related costs net of tax Discontinued Operations	$ 0	$ 0	$ 0

Commitments and Contingencies (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Asbestos Liability and Related Assets [Abstract]
Balance as of January 1	$ 641	$ 266
Changes in estimate during the period:
Changes in estimates during the period continuing operations, Liabilities	123	591
Changes in estimates during the period continuing operations, Assets	23	206
Changes in estimates during period continuing operations, net	100	385
Changes in estimates during period discontinued operations, Liability	(58)	217
Changes in estimates during period discontinued operations, Assets	(52)	227
Changes in estimates during period discontinued operations, net	(6)	(10)
Net cash activity	(21)	0
Other adjustments	0	0
Balance as of December 31	714	641
Current portion net	6	12
Noncurrent portion net	708	629
Asset [Member]
Asbestos Liability and Related Assets [Abstract]
Balance as of January 1, Asset	1,035	667
Changes in estimate during the period:
Net cash activity, Asset	(52)	(54)
Other adjustments	0	(11)
Balance as of December 31, Asset	954	1,035
Current portion	133	105
Noncurrent portion	821	930
Liability [Member]
Asbestos Liability and Related Assets [Abstract]
Balance as of January 1 ,Liability	1,676	933
Changes in estimate during the period:
Net cash activity, Liability	(73)	(54)
Other adjustments	0	(11)
Balance as of December 31, Liability	1,668	1,676
Current portion	139	117
Noncurrent portion	$ 1,529	$ 1,559

Commitments and Contingencies (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Activity Related to Accrued Liabilities [Abstract]
Environmental liability- January 1	$ 100	$ 101
Accruals added during the period	0	0
Change in estimates for pre-existing accruals	13	10
Payments	(11)	(11)
Environmental liability- December 31	$ 102	$ 100

Commitments and Contingencies (Details 4) $ in Millions	Dec. 31, 2011 USD ($) site	Dec. 31, 2010 USD ($) site
Range of Liability and Number of Active Sites for Environmental Matters
Low-end range	$ 81	$ 82
High end range	$ 175	$ 180
Number of active environmental investigation and remediation sites \| site	64	65

Commitments and Contingencies (Details Textual) $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2011	Sep. 30, 2010 USD ($)	Sep. 30, 2009 USD ($)	Dec. 31, 2011 USD ($) Claim	Dec. 31, 2010 USD ($) Claim	Dec. 31, 2009 USD ($) Claim	Oct. 18, 2011 USD ($)	Dec. 31, 2008 Claim
Schedule of Activities Related to Claims Filed [Line Items]
Number of open claims against ITT alleging injury as a result of exposure to asbestos \| Claim				105,486
Average cost per resolved claim				$ 19	$ 7
Estimated undiscounted asbestos liability, including legal fees				$ 0
Extended period for future cash flows net of recoveries related to pending claims an unasserted claims to be filed.				Through approximately 2026
Reduction in asbestos related assets based	76
Tenure to be used to file undiscounted Asbestos liability including legal fees and claims				Next 10 years
Aggregate settlement coverage agreement for asbestos related assets				60.00%
Increase in Asbestos charge from discontinued operation				$ (44,000)	691,000	$ 708,000
Increase in asbestos-related assets		$ 372,000	$ 485,000
Estimated asbestos exposure, net of expected recoveries from insurers and other responsible parties				714,000	641,000
Liability related to disposal group including Discontinued operation				234,000	292,000
Asset related to disposal group including Discontinued operation				$ 233,000	$ 285,000
Percentage of asbestos costs that can be recovered				57.00%
Percentage of projected insurance recoveries of asbestos claims liability current				27.00%
Average annual net cash outflow projected in past three years				$ 6,000
Face value of bond issued						$ 500,000
Interest rate on senior notes						6.125%
Maximum additional redemption fees							$ 15,000
Maximum [Member]
Schedule of Activities Related to Claims Filed [Line Items]
Average annual net cash outflow projected over the remainder of the projection period				$ 45,000
Reduction in asbestos related assets based				10
Minimum [Member]
Schedule of Activities Related to Claims Filed [Line Items]
Average annual net cash outflow projected over the next five years				$ 20,000
Average annual net cash outflow projected over the remainder of the projection period				$ 35,000
Asbestos Issue [Member]
Schedule of Activities Related to Claims Filed [Line Items]
Number of open claims against ITT alleging injury as a result of exposure to asbestos \| Claim				105,486	103,575	104,679		103,006
Maritime Actions [Member]
Schedule of Activities Related to Claims Filed [Line Items]
Number of open claims against ITT alleging injury as a result of exposure to asbestos \| Claim				34,869
Mississippi Dockets [Member]
Schedule of Activities Related to Claims Filed [Line Items]
Number of open claims against ITT alleging injury as a result of exposure to asbestos \| Claim				36,604
MISSISSIPPI
Schedule of Activities Related to Claims Filed [Line Items]
Number of open claims against ITT alleging injury as a result of exposure to asbestos \| Claim				40,000
NEW YORK
Schedule of Activities Related to Claims Filed [Line Items]
Number of open claims against ITT alleging injury as a result of exposure to asbestos \| Claim				30,000
FLORIDA
Schedule of Activities Related to Claims Filed [Line Items]
Number of open claims against ITT alleging injury as a result of exposure to asbestos \| Claim				7,000

Guarantees, Indemnities and Warranties (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Guarantees Indemnities and Warranties
Warranty accrual - January 1	$ 27	$ 24
Warranty expense	8	13
Payments	(9)	(10)
Warranty accrual - December 31	$ 26	$ 27

Guarantees, Indemnities and Warranties (Details Textual) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2011	Dec. 31, 2011
Guarantees Indemnities and Warranties (Textual) [Abstract]
Guarantees, letters of credit and similar arrangements outstanding		$ 192
Operating lease provided period to lease		5 years
Aircraft purchase from the lessor	$ 50
Gain on sale of aircraft		$ 3
Leaseback agreement and the associated residual value guarantee charge	3
Realization of previously recognized loss on leaseback agreement and the associated residual value guarantee charge	$ 22
Bond cancelled and Liability reversed		10
Contingent liability for construction obligation		$ 10

Segment Information (Details) - USD ($) $ in Millions	12 Months Ended
Segment Information (Details) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Business Segment Information
REVENUE	$ 2,119	$ 1,908	$ 1,770
OPERATING INCOME (LOSS)	$ (247)	$ (184)	$ (121)
OPERATING MARGIN	(11.70%)	(9.60%)	(6.80%)
Industrial Process [Member]
Business Segment Information
REVENUE	$ 767	$ 694	$ 719
OPERATING INCOME (LOSS)	$ 91	$ 79	$ 72
OPERATING MARGIN	11.90%	11.40%	10.00%
Motion Technologies [Member]
Business Segment Information
REVENUE	$ 634	$ 548	$ 491
OPERATING INCOME (LOSS)	$ 85	$ 85	$ 48
OPERATING MARGIN	13.40%	15.50%	9.80%
Interconnect Solutions [Member]
Business Segment Information
REVENUE	$ 418	$ 413	$ 341
OPERATING INCOME (LOSS)	$ 38	$ 37	$ 19
OPERATING MARGIN	9.10%	9.00%	5.60%
Control Technologies [Member]
Business Segment Information
REVENUE	$ 318	$ 275	$ 243
OPERATING INCOME (LOSS)	$ 55	$ 29	$ 32
OPERATING MARGIN	17.30%	10.50%	13.20%
Asbestos Related Costs Net [Member]
Business Segment Information
REVENUE	$ 0	$ 0	$ 0
OPERATING INCOME (LOSS)	$ (100)	$ (385)	$ (238)
OPERATING MARGIN	0.00%	0.00%	0.00%
Transformation costs [Member]
Business Segment Information
REVENUE	$ 0	$ 0	$ 0
OPERATING INCOME (LOSS)	$ (396)	$ 0	$ 0
OPERATING MARGIN	0.00%	0.00%	0.00%
Eliminations and Corporate and Other [Member]
Business Segment Information
REVENUE	$ (18)	$ (22)	$ (24)
OPERATING INCOME (LOSS)	$ (20)	$ (29)	$ (54)
OPERATING MARGIN	0.00%	0.00%	0.00%

Segment Information (Details 1) - USD ($) $ in Millions	12 Months Ended
Segment Information (Details 1) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Business Segment Information
TOTAL ASSETS	$ 3,671	$ 12,615
CAPITAL EXPENDITURES	103	127	$ 92
DEPRECIATION AND AMORTIZATION	74	66	65
Industrial Process [Member]
Business Segment Information
TOTAL ASSETS	624	529
CAPITAL EXPENDITURES	25	19	13
DEPRECIATION AND AMORTIZATION	13	11	10
Motion Technologies [Member]
Business Segment Information
TOTAL ASSETS	431	383
CAPITAL EXPENDITURES	33	28	37
DEPRECIATION AND AMORTIZATION	27	25	25
Interconnect Solutions [Member]
Business Segment Information
TOTAL ASSETS	343	309
CAPITAL EXPENDITURES	17	16	11
DEPRECIATION AND AMORTIZATION	10	9	10
Control Technologies [Member]
Business Segment Information
TOTAL ASSETS	411	401
CAPITAL EXPENDITURES	6	4	5
DEPRECIATION AND AMORTIZATION	12	13	15
Corporate and Other [Member]
Business Segment Information
TOTAL ASSETS	1,862	1,671
CAPITAL EXPENDITURES	22	60	26
DEPRECIATION AND AMORTIZATION	11	8	5
Discontinued Operations [Member]
Business Segment Information
TOTAL ASSETS	0	9,126
CAPITAL EXPENDITURES	0	0	0
DEPRECIATION AND AMORTIZATION	$ 0	$ 0	$ 0

Segment Information (Details 2) - USD ($) $ in Millions	12 Months Ended
Segment Information (Details 2) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Business Segment Information by Geographical Information
REVENUE	$ 2,119	$ 1,908	$ 1,770
TOTAL ASSETS	3,671	12,615
PLANT, PROPERTY & EQUIPMENT, NET	324	299
United States [Member]
Business Segment Information by Geographical Information
REVENUE	792	742	710
TOTAL ASSETS	2,321	2,247
PLANT, PROPERTY & EQUIPMENT, NET	123	111
Discontinued Operations [Member]
Business Segment Information by Geographical Information
REVENUE	0	0	0
PLANT, PROPERTY & EQUIPMENT, NET	0	0
Emerging Market [Member]
Business Segment Information by Geographical Information
REVENUE	599	503	466
TOTAL ASSETS	409	325
PLANT, PROPERTY & EQUIPMENT, NET	80	74
Developed Markets [Member]
Business Segment Information by Geographical Information
REVENUE	728	663	$ 594
TOTAL ASSETS	941	721
PLANT, PROPERTY & EQUIPMENT, NET	$ 121	$ 115

Segment Information (Details 3) $ in Millions	2 Months Ended	12 Months Ended
Segment Information (Details 3) $ in Millions	Dec. 31, 2011 Employee	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)
Revenue by product category, net of intercompany balances
Revenue		$ 2,119	$ 1,908	$ 1,770
Segment Information (Textual) [Abstract]
Maximum percentage of revenue for which an Individual customer accounts for		10.00%
Number of individual customer accounting for greater than ten percent of consolidated revenue \| Employee	0
Pumps and complementary products [Member]
Revenue by product category, net of intercompany balances
Revenue		$ 692	633	650
Pump support and maintenance services [Member]
Revenue by product category, net of intercompany balances
Revenue		67	52	57
Friction Products [Member]
Revenue by product category, net of intercompany balances
Revenue		524	446	386
Shock Absorber Equipment [Member]
Revenue by product category, net of intercompany balances
Revenue		110	101	104
CT Aerospace Products [Member]
Revenue by product category, net of intercompany balances
Revenue		193	165	148
CT Industrial Products [Member]
Revenue by product category, net of intercompany balances
Revenue		120	106	90
Connectors equipment [Member]
Revenue by product category, net of intercompany balances
Revenue		$ 413	$ 405	$ 335
LUXEMBOURG [Member]
Segment Information (Textual) [Abstract]
Percentage of total assets in developed market		12.60%	1.90%
Germany [Member]
Segment Information (Textual) [Abstract]
Percentage share of revenues from external customers	11.00%	11.00%	10.70%	10.60%

Immaterial Corrections (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidated Income Statements [Abstract]
General and administrative expenses	$ (168)	$ (176)	$ (201)
Operating loss	(247)	(184)	(121)
Loss from continuing operations before income tax expense (benefit)	(318)	(276)	(208)
Loss from continuing operations	(578)	(132)	(111)
Income tax expense	(260)	144	97
Income from discontinued operations, including tax expense of $237, $330 and $275, respectively	448	807	740
Net (loss) income	$ (130)	$ 804	$ 629
Earnings Per Share:
Continuing operations	$ (6.23)	$ (1.44)	$ (1.21)
Income from discontinued operations	4.83	10.19	8.10
Net income	$ 1.40	$ 8.75	$ 6.89
As Previously Reported with Reclassification for Discontinued Operations [Member]
Consolidated Income Statements [Abstract]
General and administrative expenses		$ (179)	$ (195)
Operating loss		(187)	(115)
Loss from continuing operations before income tax expense (benefit)		(279)	(202)
Loss from continuing operations		(135)	(104)
Income tax expense			98
Income from discontinued operations, including tax expense of $237, $330 and $275, respectively		933	748
Net (loss) income		$ 798	$ 644
Earnings Per Share:
Continuing operations		$ (11.48)	$ (1.14)
Income from discontinued operations		10.16	8.19
Net income		$ 8.68	$ 7.05
Adjustments [Member]
Consolidated Income Statements [Abstract]
General and administrative expenses		$ 3	$ (6)
Operating loss		3	(6)
Loss from continuing operations before income tax expense (benefit)		3	(6)
Loss from continuing operations		3	(7)
Income tax expense			(1)
Income from discontinued operations, including tax expense of $237, $330 and $275, respectively		3	(8)
Net (loss) income		$ 6	$ (15)
Earnings Per Share:
Continuing operations		$ 0.04	$ (0.07)
Income from discontinued operations		0.03	(0.09)
Net income		$ 0.07	$ (0.16)
As Adjusted and with Reclassification for Discontinued Operations [Member]
Consolidated Income Statements [Abstract]
General and administrative expenses		$ (176)	$ (201)
Operating loss		(184)	(121)
Loss from continuing operations before income tax expense (benefit)		(276)	(208)
Loss from continuing operations		(132)	(111)
Income tax expense			97
Income from discontinued operations, including tax expense of $237, $330 and $275, respectively		936	740
Net (loss) income		$ 804	$ 629
Earnings Per Share:
Continuing operations		$ (1.44)	$ (1.21)
Income from discontinued operations		10.19	8.1
Net income		$ 8.75	$ 6.89

Immaterial Corrections (Details 1) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010
Assets
Current assets of discontinued operations	$ 0	$ 3,457
Total current assets	1,762	4,424
Deferred income taxes	45	320
Non-current assets of discontinued operations	0	5,865
Total non-current assets	1,909	8,191
Total assets	3,671	12,615
Liabilities and Shareholders' Equity
Accrued liabilities	468	442
Current liabilities of discontinued operations	0	1,892
Total current liabilities	834	2,741
Other non-current liabilities	295	325
Non-current liabilities of discontinued operations	0	1,917
Total non-current liabilities	2,143	5,413
Total liabilities	2,977	8,154
Shareholders' Equity:
Retained earnings	852	5,441
Postretirement benefit plans	(153)	(1,359)
Cumulative translation adjustments	(97)	276
Total shareholders' equity	694	4,461
Total liabilities and shareholders' equity	$ 3,671	12,615
As Previously Reported with Reclassification for Discontinued Operations [Member]
Assets
Current assets of discontinued operations		3,459
Total current assets		4,426
Deferred income taxes		339
Non-current assets of discontinued operations		5,871
Total non-current assets		8,216
Total assets		12,642
Liabilities and Shareholders' Equity
Accrued liabilities		408
Current liabilities of discontinued operations		1,883
Total current liabilities		2,743
Other non-current liabilities		322
Non-current liabilities of discontinued operations		1,902
Total non-current liabilities		5,395
Total liabilities		8,138
Shareholders' Equity:
Retained earnings		5,499
Postretirement benefit plans		(1,360)
Cumulative translation adjustments		262
Total shareholders' equity		4,504
Total liabilities and shareholders' equity		12,642
Adjustments [Member]
Assets
Current assets of discontinued operations		(2)
Total current assets		(2)
Deferred income taxes		(19)
Non-current assets of discontinued operations		(6)
Total non-current assets		(25)
Total assets		(27)
Liabilities and Shareholders' Equity
Accrued liabilities		(11)
Current liabilities of discontinued operations		9
Total current liabilities		(2)
Other non-current liabilities		3
Non-current liabilities of discontinued operations		15
Total non-current liabilities		18
Total liabilities		16
Shareholders' Equity:
Retained earnings		(58)
Postretirement benefit plans		1
Cumulative translation adjustments		14
Total shareholders' equity		(43)
Total liabilities and shareholders' equity		(27)
As Adjusted and with Reclassification for Discontinued Operations [Member]
Assets
Current assets of discontinued operations		3,457
Total current assets		4,424
Deferred income taxes		320
Non-current assets of discontinued operations		5,865
Total non-current assets		8,191
Total assets		12,615
Liabilities and Shareholders' Equity
Accrued liabilities		397
Current liabilities of discontinued operations		1,892
Total current liabilities		2,741
Other non-current liabilities		325
Non-current liabilities of discontinued operations		1,917
Total non-current liabilities		5,413
Total liabilities		8,154
Shareholders' Equity:
Retained earnings		5,441
Postretirement benefit plans		(1,359)
Cumulative translation adjustments		276
Total shareholders' equity		4,461
Total liabilities and shareholders' equity		$ 12,615

Immaterial Corrections (Details Textual) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Immaterial Corrections (Textual) [ Abstract]
Basic and diluted earnings per share related to discontinued operations	$ 4.83	$ 10.19	$ 8.10
Adjustments [Member]
Immaterial Corrections (Textual) [ Abstract]
Basic and diluted earnings per share		0.07	(0.16)
Basic and diluted earnings per share related to discontinued operations		$ 0.03	$ (0.09)
Cumulative effect of retained earnings		$ 51	$ 66

Postretirement Benefit Plans (Details 12) - USD ($) $ in Millions	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	$ 192	$ 195
Pension [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	184	187	$ 176
Pension [Member] \| Domestic [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	60	47
Pension [Member] \| International [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	33	15
Pension [Member] \| Emerging Markets [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	16	19
Pension [Member] \| Fixed income [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	63
Pension [Member] \| Cash and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	12
Pension [Member] \| Private equity [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		55
Pension [Member] \| Absolute return (hedge funds) [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		32
Pension [Member] \| Commodities, fixed income and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		19
Pension [Member] \| Level 1 [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		54
Pension [Member] \| Level 1 [Member] \| Domestic [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		36
Pension [Member] \| Level 1 [Member] \| International [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		10
Pension [Member] \| Level 1 [Member] \| Emerging Markets [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		8
Pension [Member] \| Level 1 [Member] \| Private equity [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		0
Pension [Member] \| Level 1 [Member] \| Absolute return (hedge funds) [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		0
Pension [Member] \| Level 1 [Member] \| Commodities, fixed income and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		0
Pension [Member] \| Level 2 [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	184	51
Pension [Member] \| Level 2 [Member] \| Domestic [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	60	7
Pension [Member] \| Level 2 [Member] \| International [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	33	0
Pension [Member] \| Level 2 [Member] \| Emerging Markets [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	16	9
Pension [Member] \| Level 2 [Member] \| Fixed income [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	63
Pension [Member] \| Level 2 [Member] \| Cash and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	12
Pension [Member] \| Level 2 [Member] \| Private equity [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		7
Pension [Member] \| Level 2 [Member] \| Absolute return (hedge funds) [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		12
Pension [Member] \| Level 2 [Member] \| Commodities, fixed income and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		16
Pension [Member] \| Level 3 [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	82	79
Pension [Member] \| Level 3 [Member] \| Equities [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	11	9
Pension [Member] \| Level 3 [Member] \| Domestic [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		4
Pension [Member] \| Level 3 [Member] \| International [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		5
Pension [Member] \| Level 3 [Member] \| Emerging Markets [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		2
Pension [Member] \| Level 3 [Member] \| Private equity [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	48	47
Pension [Member] \| Level 3 [Member] \| Absolute return (hedge funds) [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	20	21
Pension [Member] \| Level 3 [Member] \| Commodities, fixed income and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	3	2
Other Benefits [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	8	8	$ 8
Other Benefits [Member] \| Domestic [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	0
Other Benefits [Member] \| International [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	0
Other Benefits [Member] \| Emerging Markets [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	0
Other Benefits [Member] \| Fixed income [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0
Other Benefits [Member] \| Cash and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	8
Other Benefits [Member] \| Private equity [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		0
Other Benefits [Member] \| Absolute return (hedge funds) [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		0
Other Benefits [Member] \| Commodities, fixed income and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		8
Other Benefits [Member] \| Level 3 [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	8	8
Other Benefits [Member] \| Level 3 [Member] \| Domestic [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	0
Other Benefits [Member] \| Level 3 [Member] \| International [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	0
Other Benefits [Member] \| Level 3 [Member] \| Emerging Markets [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0	0
Other Benefits [Member] \| Level 3 [Member] \| Fixed income [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	0
Other Benefits [Member] \| Level 3 [Member] \| Cash and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets	$ 8
Other Benefits [Member] \| Level 3 [Member] \| Private equity [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		0
Other Benefits [Member] \| Level 3 [Member] \| Absolute return (hedge funds) [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		0
Other Benefits [Member] \| Level 3 [Member] \| Commodities, fixed income and other [Member]
Fair value of plan assets held by our postretirement benefit plans
Fair value of plan assets		$ 8