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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2011	Oct. 31, 2011
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2011
Entity Registrant Name	SMITH A O CORP
Entity Central Index Key	0000091142
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Entity Filer Category	Large Accelerated Filer
Class A Common Stock
Entity Common Stock, Shares Outstanding		7,221,422
Common Stock
Entity Common Stock, Shares Outstanding		39,059,617

Condensed Consolidated Statements Of Earnings - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Continuing Operations
Net sales	$ 412.0	$ 377.4	$ 1,234.7	$ 1,119.1
Cost of products sold	293.3	270.2	877.1	789.4
Gross profit	118.7	107.2	357.6	329.7
Selling, general and administrative expenses	92.2	81.9	266.6	242.7
Flood related expense				34.2
Restructuring, impairment and settlement income, net			(11.2)
Interest expense	2.5	1.7	6.4	5.0
Other (income) expense - net	(15.8)	0.3	(18.7)	2.0
Earnings before income taxes	39.8	23.3	114.5	45.8
Provision for income taxes	12.9	7.1	34.8	9.1
Earnings before equity loss in joint venture	26.9	16.2	79.7	36.7
Equity loss in joint venture				(0.1)
Earnings from continuing operations	26.9	16.2	79.7	36.6
Discontinued Operations
Earnings from discontinued EPC operations, less provision for income taxes of $0.4 and $14.9 in 2011 and $5.2 and $16.4 in 2010	5.1	15.8	43.6	42.8
Gain on sale of discontinued EPC operations, less provision for income taxes of $143.5	150.3		150.3
Net earnings	182.3	32.0	273.6	79.4
Net loss attributable to noncontrolling interest				0.1
Net earnings attributable to A. O. Smith Corporation	$ 182.3	$ 32.0	$ 273.6	$ 79.5
Net Earnings Per Share of Common Stock
Continuing Operations	$ 0.58	$ 0.35	$ 1.73	$ 0.80
Discontinued Operations	3.36	0.35	4.20	0.94
Net Earnings attributable to A. O. Smith Corporation	3.94	0.70	5.93	1.74
Diluted Net Earnings Per Share of Common Stock
Continuing Operations	0.58	0.35	1.71	0.79
Discontinued Operations	3.33	0.34	4.16	0.93
Net Earnings attributable to A. O. Smith Corporation	3.91	0.69	5.87	1.72
Dividends per Share of Common Stock	$ 0.16	$ 0.14	$ 0.44	$ 0.40

Condensed Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Condensed Consolidated Statements Of Earnings
Earnings from discontinued EPC operations, provision for income taxes	$ 0.4	$ 5.2	$ 14.9	$ 16.4
Gain on sale of discontinued EPC operations, provision for income taxes	$ 143.5		$ 143.5

- 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.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
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+ Details

- Definition

Tax benefit from provision recognizing a loss for initial, or subsequent, write-down to fair value (less cost to sell) of a of a disposal group that is classified as a component of the entity, which remains unsold as of the reporting date. May include a tax on the (gain) for the recognition of a subsequent increase in fair value (less cost to sell), but not in excess of the cumulative loss previously recognized through write-downs.

+ References + Details

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 440.6	$ 118.9
Receivables	369.5	313.3
Inventories	176.7	146.8
Deferred income taxes	62.2	27.3
Investments	154.7
Other current assets	23.7	17.4
Current assets - discontinued EPC operations		272.3
Total Current Assets	1,227.4	896.0
Property, plant and equipment	601.7	524.9
Less accumulated depreciation	293.0	266.5
Net property, plant and equipment	308.7	258.4
Goodwill	427.8	323.8
Other intangibles	355.7	106.6
Deferred income taxes		89.7
Other assets	39.1	36.8
Long-term assets - discontinued EPC operations		399.3
Total Assets	2,358.7	2,110.6
Liabilities
Trade payables	276.3	263.0
Accrued payroll and benefits	38.5	37.2
Accrued liabilities	85.8	59.0
Product warranties	42.8	36.4
Long-term debt due within one year	18.6	18.6
Current tax and other liabilities-discontinued EPC operations	157.7	122.6
Total Current Liabilities	619.7	536.8
Long-term debt	376.3	242.4
Deferred income taxes	33.9
Pension liabilities	51.4	222.9
Other liabilities	149.5	148.6
Long-term liabilities - discontinued EPC operations	4.4	78.5
Total Liabilities	1,235.2	1,229.2
Stockholders' Equity
Class A Common Stock, $5 par value: authorized 14,000,000 shares; issued 7,254,242 and 7,481,748	36.3	37.4
Common Stock, $1 par value: authorized 60,000,000 shares; issued 40,422,668 and 40,195,162	40.4	40.2
Capital in excess of par value	651.5	655.7
Retained earnings	705.2	452.1
Accumulated other comprehensive loss	(252.9)	(229.4)
Treasury stock at cost	(57.0)	(74.6)
Total Stockholders' Equity	1,123.5	881.4
Total Liabilities and Stockholders' Equity	$ 2,358.7	$ 2,110.6

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets
Class A Common Stock, par value	$ 5	$ 5
Class A Common Stock, shares authorized	14,000,000	14,000,000
Class A Common Stock, shares issued	7,254,242	7,481,748
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	60,000,000	60,000,000
Common Stock, shares issued	40,422,668	40,195,162

Condensed Consolidated Statement Of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Operating Activities
Net earnings	$ 273.6	$ 79.4
Less earnings from discontinued operations	(193.9)	(42.8)
Adjustments to reconcile earnings from continuing operations to cash provided by (used in) operating activities:
Depreciation and amortization	33.2	29.3
Loss on sale of assets	0.7	14.3
Unrealized gain on investment	(20.1)
Net changes in operating assets and liabilities, net of acquisitions:
Current assets and liabilities	(65.8)	(29.4)
Noncurrent assets and liabilities	(95.6)	(14.2)
Cash (Used in) Provided by Operating Activities - continuing operations	(67.9)	36.6
Cash (Used in) Provided by Operating Activities - discontinued operations	(1.5)	32.3
Cash (Used in) Provided by Operating Activities	(69.4)	68.9
Investing Activities
Capital expenditures	(36.7)	(37.2)
Acquisition of businesses	(418.1)	(5.6)
Proceeds from sale of marketable securities		4.6
Cash Used in Investing Activities - continuing operations	(454.8)	(38.2)
Cash Provided by (Used in) Investing Activities - discontinued operations	727.8	(6.3)
Cash Provided by (Used in) Investing Activities	273.0	(44.5)
Financing Activities
Long-term debt incurred	152.9	40.8
Long-term debt repaid	(18.6)	(18.6)
Common stock repurchase	(5.7)
Net proceeds from stock option activity	9.8	4.5
Dividends paid	(20.3)	(18.3)
Cash Provided by Financing Activities - continuing operations	118.1	8.4
Cash Provided by Financing Activities - discontinued operations
Cash Provided by Financing Activities	118.1	8.4
Net increase in cash and cash equivalents	321.7	32.8
Cash and cash equivalents - beginning of period	118.9	76.3
Cash and Cash Equivalents - End of Period	$ 440.6	$ 109.1

Basis Of Presentation

9 Months Ended

Sep. 30, 2011

Basis Of Presentation

Basis Of Presentation

1.	Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of A. O. Smith Corporation (the company) have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2011 are not necessarily indicative of the results expected for the full year. It is suggested that the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the company's latest Annual Report on Form 10-K filed with the SEC on February 24, 2011.

Except where otherwise indicated, amounts reflected in the financial statements or the notes thereto relate to the company's continuing operations.

Certain other prior year amounts have been reclassified to conform to the 2011 presentation.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
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-Name Statement of Position (SOP)
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-Number 94-6
-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.

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+ Details

Acquisition

9 Months Ended

Sep. 30, 2011

Acquisition

Acquisition

2.	Acquisition

On August 26, 2011, the company acquired 100% of the shares of Lochinvar Corporation (Lochinvar), a privately held manufacturer of high-efficiency boilers used in commercial and residential hydronic heating and hot water applications located in Lebanon, Tennessee. The addition of Lochinvar expands the company's product offerings and gives the company access to proven high-efficiency boiler technology.

The company paid an aggregate cash purchase price, net of $1.5 million of cash acquired, of $418.1 million, subject to a finalization of working capital adjustments. In addition, the company incurred acquisition costs of approximately $5.3 million. Under the purchase agreement for the Lochinvar acquisition, the company agreed to make a contingent payment of up to an additional $35.0 million in cash based on the amount by which Lochinvar sales between December 1, 2011 and November 30, 2012 exceed $216.0 million. As of September 30, 2011, the contingent payment has been estimated at $16.7 million.

The following table summarizes the preliminary estimate of fair value of the assets acquired and liabilities assumed at the date of acquisition. The company is in the process of finalizing the third-party appraisal of property, plant and equipment and the valuation of certain intangible assets and, therefore, the allocation of the purchase price is subject to refinement. Of the preliminary $258.3 million of acquired intangible assets, $103.5 million has been assigned to tradenames that are not subject to amortization and $152.5 million has been assigned to customer lists which will be amortized over 20 years, and the remaining $2.3 million has been assigned to non-compete agreements and patents which will be amortized over 10 years.


August 26, 2011 (dollars in millions)
Current assets, net of cash acquired	$	56.5
Property, plant and equipment		41.6
Intangible assets		258.3
Other assets		1.2
Goodwill		128.1

Total assets acquired		485.7
Current liabilities		42.4
Long-term liabilities		3.6

Total liabilities assumed		46.0

Net assets acquired	$	439.7

For tax purposes, the transaction has been accounted for as an asset purchase, resulting in the full amount of goodwill and intangible assets, totaling $386.4 million being deductible for tax purposes.

Lochinvar's results of operations have been included in the company's financial statements from August 26, 2011, the date of acquisition. Revenues and pretax net loss associated with Lochinvar included in operations totaled $20.8 million and $2.0 million, respectively which included $3.0 million of operating earnings less $4.4 million of acquisition costs and $0.6 million of interest expense.

The following table represents the pro forma unaudited results of operations for the company for the nine month periods ended September 30, 2011 and 2010, respectively, assuming consummation of the purchase of Lochinvar as of January 1, of each year. The results associated with Lochinvar are for the nine month periods ended November 29, 2010 through August 26, 2011 and November 28, 2009 through August 27, 2010, respectively, representing Lochinvar's fiscal nine month periods (dollars in millions except per share data):


	Nine months ended September 30,
	2011			2010

Net sales		$	1,350.3		$	1,238.7
Earnings from continuing operations			91.4			46.5
Earnings per common share:
Basic		$	1.98		$	1.02

Diluted		$	1.96		$	1.01

The pro forma results have been prepared for informational purposes only and include adjustments to depreciation expense of acquired plant and equipment, amortization of intangible assets other than goodwill and tradenames, increased interest expense on acquisition related debt, and certain other adjustments, together with related income tax effects of such adjustments. These pro forma results do not purport to be indicative of the results of operations that would have occurred had the purchases been made as of the beginning of the periods presented or of the results of operations that may occur in the future.

- 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
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-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.

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+ Details

Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations

Discontinued Operations

3.	Discontinued Operations

On August 22, 2011, the company completed the sale of its Electrical Products segment (EPC) to Regal Beloit Corporation (RBC) for $752.5 million in cash which included an estimated working capital adjustment and 2.83 million of RBC shares. The value of the RBC shares on the date of the closing of the sale was $140.6 million. See Note 18 for further discussion regarding the company's investment in RBC stock. The company has paid $20.2 million in commissions, taxes and other sale related payments as of September 30, 2011.

Included in the gain on sale of discontinued EPC operations was an additional income tax accrual of $60.0 million due to the company's assertion that certain foreign earnings derived from the sale of EPC are not permanently reinvested by the company. The accrual is included in long term deferred income taxes in continuing operations.

The results of EPC have been reported separately as discontinued operations. Prior year quarterly condensed consolidated financial statements of the company have been restated to present EPC as discontinued.

Liabilities of the EPC discontinued operations at September 30, 2011 consist primarily of certain retained product liabilities, employee obligations such as workers' compensation and disability and income tax liabilities associated with EPC.

The components of the net assets of EPC discontinued operations that were included in the consolidated balance sheets are:


	(dollars in millions)
	December 31, 2010
Assets
Current Assets
Trade receivables	$	110.8
Inventory		135.9
Deferred taxes		2.2
Derivative contracts asset		17.4
Other current assets		6.0

Total Current Assets		272.3

Net property, plant and equipment		148.1
Goodwill		248.4
Other intangibles		2.8

Total Assets	$	671.6

Liabilities

Current Liabilities
Trade payables	$	89.5
Accrued payroll and benefits		15.2
Accrued liabilities		11.1
Product warranties		4.3
Income taxes		2.5

Total Current Liabilities		122.6

Deferred taxes		77.2
Other liabilities		1.3

Total Liabilities		201.1

Total Net Assets	$	470.5

The condensed statement of earnings of the EPC discontinued operations is:


	(dollars in millions)
	Three Months Ended September 30					Nine Months Ended September 30
	2011			2010		2011			2010
Net sales	$	109.5		$	181.9	$	531.8		$	536.1
Cost of products sold		87.4			140.2		415.6			413.9

Gross profit		22.1			41.7		116.2			122.2
Selling, general and administrative expenses		16.8			19.8		61.5			60.5
Interest expense		0.4			0.8		2.2			2.8
Other (income) expense - net		(0.6	)		0.1		(6.0	)		(0.3	)

		5.5			21.0		58.5			59.2
Provision for income taxes		0.4			5.2		14.9			16.4

Net earnings	$	5.1		$	15.8	$	43.6		$	42.8

Consolidated interest expense not directly attributable to other operations was allocated to discontinued operations based on the ratio of EPC net assets to be sold to the sum of consolidated net assets plus consolidated debt not directly attributable to other operations.

The cash provided by EPC discontinued operations is as follows:

Nine months ended September 30 (dollars in millions)
	2011			2010
Operating Activities
Earnings	$	43.6		$	42.8
Adjustments to reconcile earnings to net cash provided by discontinued operating activities:
Depreciation and amortization		16.5			19.7
Gain on sale of assets		(4.8	)		(0.3	)
Net changes in operating assets and liabilities
Current assets and liabilities		(55.9	)		(34.0	)
Noncurrent assets and liabilities		0.9			4.2
Other		(1.8	)		(0.1	)

Cash (Used in) Provided by Discontinued Operating Activities		(1.5	)		32.3
Investing Activities
Capital expenditures		(10.6	)		(10.5	)
Proceeds from sale of assets		6.1			4.2
Proceeds from sale of operations		752.5			-
Payments associated with sale		(20.2	)		-

Cash Provided by (Used in) Discontinued Investing Activities		727.8			(6.3	)

Cash Provided by Discontinued Operations	$	726.3		$	26.0

In the second quarter of 2011, the company sold a facility in China and recognized a gain of $4.8 million.

- 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
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+ Details

Inventories

9 Months Ended

Sep. 30, 2011

Inventories

Inventories

4.	Inventories


	(dollars in millions)
	September 30, 2011			December 31, 2010
Finished products	$	90.9		$	72.7
Work in process		10.2			14.4
Raw materials		98.6			82.7

		199.7			169.8
LIFO reserve		(23.0	)		(23.0	)

	$	176.7		$	146.8

Restricted Marketable Securities

9 Months Ended

Sep. 30, 2011

Restricted Marketable Securities

Restricted Marketable Securities

5.	Restricted Marketable Securities

The company acquired GSW Inc. (GSW) on April 3, 2006. GSW operated a captive insurance company (Captive) to provide product liability and general liability insurance to its subsidiary American Water Heater Company (American). The company decided to cover American's prospective liability exposures with its existing insurance programs and all product liability claims for events which occurred prior to July 1, 2006 will be financed by the Captive. The reinsurance company restricts the amount of capital which must be maintained by the Captive

and this restricted amount was $12.0 million at September 30, 2011. The $12.0 million is invested in short-term securities and is included in other non-current assets on the company's balance sheet on September 30, 2011. The cost of the money market instruments approximate fair value.

Long-Term Debt

9 Months Ended

Sep. 30, 2011

Long-Term Debt

Long-Term Debt

6.	Long-Term Debt

The company has a $425 million multi-currency revolving credit agreement with eight banks. The facility expires on November 13, 2013 and has an accordion provision which allows it to be increased up to $525 million if certain conditions (including lender approval) are satisfied. Interest rates on borrowings under the facility are determined in part based upon the company's leverage ratio.

Borrowings under bank credit lines and commercial paper borrowings are supported by the $425 million revolving credit agreement. As a result of the long-term nature of this facility, the commercial paper and credit line borrowings are classified as long-term debt at September 30, 2011.

Product Warranties

9 Months Ended

Sep. 30, 2011

Product Warranties

Product Warranties

7.	Product Warranties

The company offers warranties on the sales of certain of its products and records an accrual for the estimated future claims. The following table presents the company's warranty liability activity for the nine months ended September 30, 2011 and 2010, respectively.


	(dollars in millions)
	2011			2010
Balance at January 1	$	112.1		$	108.6
Lochinvar acquisition		5.8			-
Expense		49.6			49.1
Net increase in warranty reserve due to settlement		7.5			-
Claims settled		(42.8	)		(45.3	)

Balance at September 30	$	132.2		$	112.4

See Note 17 for discussion on the increase in warranty reserve due to settlement and the increase in warranty expense and reserve associated with component issues in Canada.

Comprehensive Earnings

9 Months Ended

Sep. 30, 2011

Comprehensive Earnings

Comprehensive Earnings

8.	Comprehensive Earnings

The company's comprehensive earnings are comprised of the items in the following table.


	(dollars in millions)
	Three Months Ended September 30					Nine Months Ended September 30
	2011			2010		2011			2010
Net Earnings	$	182.3		$	32.0	$	273.6		$	79.4
Other comprehensive (loss) earnings:
Foreign currency translation adjustments		(16.0	)		5.8		(9.6	)		2.8
Adjustment to additional minimum pension liability and post retirement obligation less related income tax benefit of: 2010 - $0.1		-			-		-			(0.1	)
Unrealized net (loss) gain on cash flow derivative instruments less related income tax benefit (provision) of: 2011 - $2.9 and $6.5, 2010 – $(2.4) and $0.4		(4.4	)		4.0		(10.2	)		(0.5	)
Unrealized net loss on investments less related tax benefit of : 2011 $2.3 and $2.3		(3.7	)		-		(3.7	)		-
Less comprehensive loss attributable to noncontrolling interest		-			-		-			0.1

Comprehensive Earnings	$	158.2		$	41.8	$	250.1		$	81.7

- Definition

The entire disclosure for comprehensive income. Includes, but is not limited to, the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains (losses) on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains (losses) on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains (losses) on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain (loss) and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14-26
-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
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+ Details

Earnings Per Share Of Common Stock

9 Months Ended

Sep. 30, 2011

Earnings Per Share Of Common Stock

Earnings Per Share Of Common Stock

9.	Earnings per Share of Common Stock

The numerator for the calculation of basic and diluted earnings per share is net earnings. The following table sets forth the computation of basic and diluted weighted-average shares used in the earnings per share calculations:


	Three Months Ended September 30				Nine Months Ended September 30
	2011		2010		2011		2010
Denominator for basic earnings per share - weighted average shares		46,221,603		45,796,715		46,137,918		45,719,270
Effect of dilutive stock options, restricted stock and share units		420,920		457,440		472,871		375,345

Denominator for diluted earnings per share		46,642,523		46,254,155		46,610,789		46,094,615

On October 11, 2010, the company's board of directors declared a three-for-two stock split of the company's Class A Common Stock and Common Stock in the form of a fifty percent stock dividend to stock holders of record on October 29, 2010 and payable on November 15, 2010. Shares held in treasury by the company were not impacted by the split. All references in the financial statements to number of shares outstanding, price per share, per share amounts and stock based compensation data have been retroactively recast to reflect the split for all periods presented.

Stock Based Compensation

9 Months Ended

Sep. 30, 2011

Stock Based Compensation

Stock Based Compensation

10.

Stock Based Compensation

The company adopted the A. O. Smith Combined Incentive Compensation Plan (the "plan") effective January 1, 2007. The plan is a continuation of the A. O. Smith Combined Executive Incentive Compensation Plan which was originally approved by shareholders in 2002. At the company's annual meeting of stockholders on April 14, 2009, an amendment to the plan was approved to increase the authorized shares of Common Stock under the plan by 1,875,000. The number of shares available for granting of options, restricted stock or share units at September 30, 2011 was 1,902,543. Upon stock option exercise, restricted stock grant, or share unit vesting, shares are issued from treasury stock.

Total stock based compensation cost recognized in the three month periods ended September 30, 2011 and 2010 was $1.1 million and $1.2 million, respectively. Total stock based compensation cost recognized in the nine month periods ended September 30, 2011 and 2010 was $4.6 million and $4.2 million, respectively.

Stock Options

The stock options granted in the nine month periods ended September 30, 2011 and 2010, have three year pro-rata vesting from the date of grant. Stock options are issued at exercise prices equal to the fair value of Common Stock on the date of grant. For active employees, all options granted in 2011 and 2010 expire ten years after date of grant. Options are expensed ratably over the three year vesting period. Stock based compensation cost attributable to stock options in the three month periods ended September 30, 2011 and 2010 was $0.5 million and $0.5 million, respectively. Stock based compensation cost attributable to stock options in the nine month periods ended September 30, 2011 and 2010 was $2.3 million and $1.7 million, respectively. Included in the stock option expense for the three and nine month periods ended September 30, 2011 and 2010 is expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period. Changes in option shares, all of which are Common Stock, were as follows for the nine months ended September 30, 2011:


	Weighted-Avg. Per Share Exercise Price		Nine Months Ended September, 2011			Average Remaining Contractual Life	Aggregate Intrinsic Value (dollars in millions)

Outstanding at January 1, 2011	$	22.17		1,623,101

Granted		43.18		178,200

Exercised		20.49		(313,461	)


Outstanding at September 30, 2011		25.04		1,487,840		8 years	$	12.4


Exercisable at September 30, 2011	$	22.65		1,031,557		7 years	$	9.6

The weighted-average fair value per option at the date of grant during the nine months ended September 30, 2011 and 2010 using the Black-Scholes option-pricing model was $16.51 and $10.19, respectively. Assumptions were as follows:


	Nine Months Ended September 30,
	2011			2010
Expected life (years)		6.4			6.4
Risk-free interest rate		3.6	%		3.6	%
Dividend yield		1.3	%		1.9	%
Expected volatility		38.4	%		38.7	%

The expected life is based on historical exercise behavior and the projected exercise of unexercised stock options. The risk free interest rate is based on the U.S. Treasury yield curve in effect on the date of grant for the expected life of the option. The expected dividend yield is based on the expected annual dividends divided by the grant date market value of the company's common stock. The expected volatility is based on the historical volatility of the company's common stock.

Restricted Stock and Share Units

Participants may also be awarded shares of restricted stock or share units under the plan. The company granted 75,625 and 101,873 share units under the plan in the nine month periods ended September 30, 2011 and 2010, respectively. The share units were valued at $2.7 million and $2.9 million at the date of issuance in 2011 and 2010, respectively, based on the company's stock price at the date of grant and will be recognized as compensation expense ratably over the three-year vesting period. Share based compensation expense attributable to share units of $0.6 million and $0.7 million was recognized in the three month periods ended September 30, 2011 and 2010, respectively. Share based compensation expense attributable to share units of $2.3 million and $2.5 million was recognized in the nine month periods ended September 30, 2011 and 2010, respectively. Share based compensation expense recognized in the three and nine month periods ended September 30, 2011 and 2010 included expense associated with accelerated vesting of share unit awards for certain employees who either are retirement eligible or will become retirement eligible during the vesting period.

A summary of share unit activity under the plan is as follows:


	Number of Units			Weighted-Average Grant Date Value
Issued and unvested at January 1, 2011		473,438		$	22.43

Granted		75,625			43.12

Vested		(205,720	)		22.61

Terminated/cancelled		(27,529	)		24.91


Issued and unvested at September 30, 2011		315,814			27.04

- 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
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+ Details

Pensions

9 Months Ended

Sep. 30, 2011

Pensions

Pensions

11.

Pensions

The following table presents the components of the company's net pension expense.


	(dollars in millions)
	Three Months Ended September 30						Nine Months Ended September 30
	2011			2010			2011			2010
Service cost	$	2.2		$	2.1		$	7.1		$	6.4
Interest cost		10.6			11.6			33.1			35.0
Expected return on plan assets		(17.8	)		(15.4	)		(52.8	)		(46.2	)
Amortization of net unrecognized loss		6.6			4.5			17.8			13.4
Amortization of prior service cost		(0.2	)		(0.2	)		(0.6	)		(0.7	)

Ongoing expense		1.4			2.6			4.6			7.9
Curtailment/settlement credit		(0.6	)		-			(0.6	)		-

Defined benefit plan expense	$	0.8		$	2.6		$	4.0		$	7.9

The company made contributions totaling $30.6 million in 2010. The company made contributions totaling $175.0 million in the nine months ended September 30, 2011. The company does not anticipate making any additional contributions this year, nor in the next few years. Included in the table above is $0.6 million and $0 of defined benefit plan expense associated with the company's discontinued operations for the three months ended September 30, 2011 and 2010, respectively and $1.6 million and $0 of defined benefit plan expense associated with the company's discontinued operations for the nine months ended September 30, 2011 and 2010, respectively.

- 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)
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-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
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-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 132R
-Paragraph 5
-Subparagraph q
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Number 03-2
-Paragraph 8
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-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
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-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
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-Number 158
-Paragraph 7, 21, 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.

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-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
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-Publisher FASB
-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

Operations

9 Months Ended

Sep. 30, 2011

Operations

Operations

12.

Operations

Historically, the company had been comprised of two reporting segments: Water Products and EPC. On August 22, 2011, the company sold EPC. The following table presents additional information about the company's continuing operations.


	(dollars in millions)
	Three Months Ended September 30						Nine Months Ended September 30
	2011			2010			2011			2010
Net sales
Water Products	$	412.0		$	377.4		$	1,234.7		$	1,119.1
Operating earnings
Water Products^{(1),(2),(3),(4)}	$	39.9		$	37.6		$	138.1		$	89.3
Corporate income (expenses)⁽⁵⁾		2.4			(12.6	)		(17.2	)		(38.6	)
Interest expense		(2.5	)		(1.7	)		(6.4	)		(5.0	)

Earnings before income taxes		39.8			23.3			114.5			45.7
Provision for income taxes		12.9			7.1			34.8			9.1

Earnings from continuing operations	$	26.9		$	16.2		$	79.7		$	36.6

⁽¹⁾ Includes equity loss in joint venture of	$	-		$	-		$	-		$	0.1
⁽²⁾ Includes flood expense of		-			-			-			34.2
⁽³⁾ Includes settlement income of		-			-			11.2			-
⁽⁴⁾ Includes Canadian warranty expense of		-			-			8.2			-
⁽⁵⁾ Includes unrealized net gain on investments of:		16.4			-			20.1			-

- 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)
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-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
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+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

Fair Value Measurements

13.

Fair Value Measurements

The company adopted ASC 820 Fair Value Measurements and Disclosures (formerly Statement of Financial Accounting Standards (SFAS) 157) on January 1, 2008. ASC 820, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Continuing assets and liabilities measured at fair value are based on the market approach which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

Assets measured at fair value on a recurring basis are as follows:


	(dollars in millions)
Fair Value Measurement Using	September 30, 2011			December 31, 2010
Quoted prices in active markets for identical assets (Level 1)		$	129.8	$	0.6
Significant other observable inputs (Level 2)			25.9		0.8

Total net derivative contracts		$	155.7	$	1.4

There were no changes in our valuation techniques used to measure fair values on a recurring basis as a result of adopting ASC 820.

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 14
-Subparagraph a
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-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 FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 159
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a, b, c(1), d(1)
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+ Details

Derivative Instruments

9 Months Ended

Sep. 30, 2011

Derivative Instruments

Derivative Instruments

14.

Derivative Instruments

ASC 815 Derivatives and Hedging (formerly SFAS 133), as amended, requires that all derivative instruments be recorded on the balance sheet at fair value and establishes criteria for designation and effectiveness of the hedging relationships. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the company must designate the hedging instrument, based upon the exposure hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

The company designates that all of its hedging instruments, except for its equity collar contract relating to RBC shares, are cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (OCI), net of tax, and is reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The amount by which the cumulative change in the value of the hedge more than offsets the cumulative change in the value of the hedged item (i.e., the ineffective portion) is recorded in earnings, net of tax, in the period the ineffectiveness occurs.

The company utilizes certain derivative instruments to enhance its ability to manage currency and interest rate exposures as well as raw materials price risk and equity investment volatility. Derivative instruments are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. The company does not enter into contracts for speculative purposes. The contracts are executed with major financial institutions with no credit loss anticipated for failure of the counterparties to perform.

Commodity Futures Contracts

In addition to entering into supply arrangements in the normal course of business, the company, primarily for its discontinued operation, also enters into futures contracts to fix the cost of certain raw material purchases, principally copper and aluminum, with the objective of minimizing changes in cost due to market price fluctuations. The hedging strategy for achieving this objective is to purchase commodities futures contracts on the open market of the London Metals Exchange (LME) or over the counter contracts based on the LME. With one of its brokers, the company is required to make cash deposits on unrealized losses on commodity derivative contracts that exceed $10.0 million.

The after-tax gain of the effective portion of the contracts of $0.2 million as of September 30, 2011 was recorded in accumulated other comprehensive loss, and will be reclassified into cost of products sold in the period in which the underlying transaction is recorded in earnings. The effective portion of the contracts will be reclassified within one year. Contracts related to the company's discontinued operations that expire after the closing date no longer qualified for hedge accounting; therefore, the change in valuation from January 1, 2011 through August 22, 2011 was minimal and was recorded in earnings from discontinued operations. Commodity hedges outstanding at September 30, 2011 are comprised of a total of approximately 0.6 million pounds of copper.

Foreign Currency Forward Contracts

The company is exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries. The company utilizes foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases, sales and certain intercompany transactions in the normal course of

business. Principal currencies include the Mexican peso, Canadian dollar and Euro.

Gains and losses on these instruments are recorded in accumulated other comprehensive loss, net of tax, until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to the statement of earnings. The assessment of effectiveness for forward contracts is based on changes in the forward rates. These hedges have been determined to be effective.

The majority of the amounts in accumulated other comprehensive loss for cash flow hedges is expected to be reclassified into earnings within one year and all of the hedges will be reclassified into earnings no later than September 9, 2013. Contracts related to the company's discontinued operations that expire after the closing date no longer qualified for hedge accounting; therefore, the change in valuation from January 1, 2011 through August 22, 2011 of $3.2 million was recorded as income in earnings from discontinued operations.

The following table summarizes, by currency, the contractual amounts of the company's foreign currency forward contracts for continuing operations.


September 30 (dollars in millions)		2011					2010
	Buy			Sell			Buy		Sell
Euro		$	7.8		$	1.8	$	1.6		$	2.6
Canadian dollar			-			40.4		-			35.8
Mexican peso			14.4			-		13.4			-

Total		$	22.2		$	42.2	$	15.0		$	38.4

Interest Rate Swap Agreement

The company is exposed to interest rate risk as a result of its floating rate borrowings under its revolving credit facility. The company has used interest rate swaps to manage this risk. The company's one interest rate swap in the amount of $25 million expired in November 2010.

The interest rate swap was designated and accounted for as a cash flow hedge of floating rate debt. Gains and losses on this instrument were recorded in accumulated other comprehensive

loss, net of tax, until the underlying transaction was recorded in earnings. When the hedged item was realized, gains or losses were reclassified from accumulated other comprehensive loss to the statement of earnings. The assessment of effectiveness for the interest rate swap was based on changes in floating rate interest rates. This swap was determined to be perfectly effective.

Equity Collar Contract

As discussed in Note 3, on August 22, 2011, the company sold EPC to RBC and received 2.83 million RBC shares. The RBC share price appreciated in the first quarter of 2011 during which the company purchased an equity collar contract for fifty percent of the RBC shares to protect a portion of that appreciation. The put strike price of the equity collar is $63.29 and the call strike price of the collar is $77.32. The RBC share price on September 30, 2011 was $45.38. The collar does not qualify for hedge accounting and therefore is adjusted to fair value on a quarterly basis through earnings from continuing operations. The company is required to make cash or stock deposits on unrealized losses on the equity collar that exceed $25.0 million. The collar expires in March 2012. The mark to market accounting for the RBC shares and hedge will continue until the equity collar contract expires in March 2012.

Fair value of derivatives designated as hedging instruments under ASC 815 in continuing operations:


		Fair Value
(dollars in millions)	Balance Sheet Location	September 30, 2011				December 31, 2010

Commodities contracts	Accrued liabilities		$	(0.3	)		$	-
	Other current assets			-				0.8
Foreign currency contracts	Accrued liabilities			(1.2	)			(0.5	)
	Other current assets			2.4				1.1

Total derivatives designated as hedging instruments			$	0.9			$	1.4

Fair value of derivative not designated as a hedging instrument under ASC 815 in continuing operations:


		Fair Value
(dollars in millions)	Balance Sheet Location	September 30, 2011			December 31, 2010

Equity collar contract	Investments		$	26.1		$	-

Total derivatives not designated as hedging instruments			$	26.1		$	-

The effect of derivatives designated as hedging instruments under ASC 815 on the Statement of Earnings for continuing and discontinued operations:

Quarter ended September 30 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of (loss)/gain recognized in OCI on derivative (effective portion)							Location of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)							Location of gain/(loss) recognized in earnings on derivative (ineffective portion)	Amount of gain recognized in earnings on a derivative (ineffective portion)
	2011				2010				2011			2010					2011			2010
Commodities contracts		$	(2.8	)		$	6.8	Cost of products sold		$	0.1		$	0.1		Cost of products sold		$	-		$	-
								Earnings from discontinued EPC operations			1.0			1.8		Earnings from discontinued EPC operations			-			0.2
								Gain on sale of EPC			1.8			-
Foreign currency contracts			(0.1	)			3.5	Cost of products sold			-			0.1		N/A			-			-
								Earnings from discontinued EPC operations			2.0			2.2		Earnings from discontinued EPC operations			-			-
								Gain on sale of EPC			5.2			-
Interest rate swap contract			-				-	Interest expense			-			(0.3	)	N/A			-			-

		$	(2.9	)		$	10.3			$	10.1		$	3.9				$	-		$	0.2


Derivatives not designated as a hedging instrument under ASC 815	Location of gain recognized in earnings from continuing operations on derivative		Amount of gain recognized in earnings from continuing operations on derivative
				2011		2010
Equity collar contract		Other income -net	$	22.4	$	-

Year to date September 30 (dollars in millions):


Derivatives in ASC 815 cash flow hedging relationships	Amount of (loss)/gain recognized in OCI on derivative (effective portion)						Location of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)						Location of gain/(loss) recognized in earnings on derivative (ineffective portion)	Amount of gain recognized in earnings on a derivative (ineffective portion)
			2011			2010				2011		2010					2011		2010
Commodities contracts		$	(3.0	)	$	4.5	Cost of products sold		$	-	$	0.7		Cost of products sold		$	-	$	-
							Earnings from discontinued EPC operations			7.0		8.4		Earnings from discontinued EPC operations			0.1		0.2
							Gain on sale of EPC			1.8		-
Foreign currency contracts			4.9			9.3	Cost of products sold			0.1		0.6		N/A			-		-
							Earnings from discontinued EPC operations			6.9		5.9		Earnings from discontinued EPC operations			-		-
							Gain on sale of EPC			5.2		-
Interest rate swap contract			-			-	Interest expense			-		(0.9	)	N/A			-		-

		$	1.9		$	13.8			$	21.0	$	14.7				$	0.1	$	0.2


Derivatives not designated as a hedging instrument under ASC 815	Location of gain recognized in earnings from continuing operations on derivative		Amount of gain recognized in earnings from continuing operations on derivative
				2011		2010
Equity collar contract		Other income - net	$	26.1	$	-

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
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+ Details

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2011
Income Taxes
Income Taxes	15. Income Taxes The effective tax rates for the three and nine months ended September 30, 2011 were 32.4 percent and 30.4 percent, respectively. The company estimates that the tax rate for full year of 2011 will be slightly higher than the first nine months of 2011. The effective tax rates for the three and nine months ended September 30, 2010 were 30.5 percent and 28.0 percent, respectively excluding a discrete $13.3 million tax benefit related to the $34.2 million charge for flood related expenses in the three months ended June 30, 2010. The increase in the effective rates for 2011 was due to proportionately higher domestic earnings which are taxed at higher rates. The full year effective tax rate in 2010 of 23.3 percent resulted from lower domestic earnings as a result of flood related expense. As of September 30, 2011 the company had $2.9 million of unrecognized tax benefits of which $2.3 million would affect its effective tax rate if recognized. As of December 31, 2010, the company had $2.7 million of unrecognized tax benefits of which $2.2 million would affect its effective tax rate if recognized. The company recognizes potential interest and penalties related to unrecognized tax benefits as a component of tax expense. During the three months ended September 30, 2011 the company provided additional taxes related to its assertion that certain foreign earnings are not permanently reinvested. For those earnings deemed not permanently reinvested, the company has accrued additional tax of $60.0 million to cover the estimated tax cost of repatriating those earnings in the future. Such earnings resulted from the sale of EPC and as a result, the $60.0 million of taxes has been recorded as part of the gain on sale of EPC discontinued operations. The company's U.S. federal tax returns for 2008-2010 are subject to audit. The company is subject to state and local audits for tax years 2004-2010. The company is also subject to non-U.S. income tax examinations for years 2004-2010.

- 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)
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-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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+ Details

Ashland City, TN Facility Flood

9 Months Ended

Sep. 30, 2011

Ashland City, TN Facility Flood

Ashland City, TN Facility Flood

16.

Ashland City, TN Facility Flood

Starting May 3, 2010, production at the company's largest water heater manufacturing plant located in Ashland City, TN was temporarily shut down due to record flooding of the Cumberland River. Water heater production was shifted to other company plants located in the United States, Canada and Mexico. The company resumed production at the Ashland City, TN plant in June 2010. Recovery from the flood was essentially complete by year end 2010.

As of September 30, 2010, the company recorded flood related expense of $34.2 million, net of insurance proceeds, consisting of the following:


	(dollars in millions)
Repair or write off of buildings and equipment	$	36.2
Net inventory loss		15.7
Site cleanup and restoration		14.3

		66.2
Less: insurance proceeds		32.0

Total flood related expense	$	34.2

Note: Actual full year 2010 flood related amounts differ from this disclosure due to adjustments recorded in the fourth quarter of 2010.

The buildings and equipment of the Ashland City, TN plant sustained damages due to the severe flooding. As of September 30, 2010, restoration of certain manufacturing equipment and office space was still in process. The carrying value of fixed assets destroyed in the flood that was written off totaled $13.7 million. An additional $22.5 million was expensed to repair and refurbish damaged equipment to pre-flood condition.

The net inventory written off as of September 30, 2010 totaled $15.7 million, which included the cost of raw materials, work-in-process and finished good inventories that were not able to be used or sold due to flood damage.

Site cleanup and restoration began as soon as the flood waters subsided. The company engaged outside contractors to pump out water and clean and sanitize the facilities and the grounds of the manufacturing facility prior to access by company personnel. Employees normally engaged in the production of water heaters were utilized in the cleanup and repair of the facility and equipment, assessment and recovery of inventories and other aspects of the site restoration. Internal and external costs associated with site restoration and cleanup totaled $14.3 million as of September 30, 2010.

Insurance proceeds

In 2010, the company maintained property damage and business interruption insurance coverage applicable to its Ashland City, TN plant totaling $30 million. The company also has federal flood insurance policies and $2.0 million was recovered. As of September 30, 2010 the company had received insurance proceeds of $32.0 million.

Government Assistance

In addition, the company sought assistance from the State of Tennessee as well as local governmental agencies as incentive to reinvest in the Ashland City facility. Those incentives were in the form of grants, tax credits and the purchase of certain property. When completed, the benefits, collectively, totaled approximately $7 million in 2010, of which $1.4 million was recorded in cost of goods sold in the third quarter of 2010.

Settlement

9 Months Ended

Sep. 30, 2011

Settlement

Settlement

17.

Settlement

On May 5, 2011, the company entered into an agreement with a supplier settling a legal action that the company commenced on June 30, 2009, in Tennessee State Court, seeking recovery for costs and damages due to an issue with a component part supplied by the vendor. Under the terms of the settlement agreement, the vendor and the vendor's supplier made a $35.5 million cash payment to the company. The settlement reimbursed the company for past costs previously incurred, satisfied in full a receivable recorded by the company, and established a $7.5 million reserve for future costs associated with the affected components on company products. In the second quarter of 2011, the company recorded a pretax gain of $11.2 million for the reimbursement of related costs incurred in prior years.

Also in the second quarter of 2011, the company recorded an $8.2 million warranty provision to reflect an estimate of expenses that it will likely incur in the future related to a similar component concern in Canada. On June 14, 2011, the company commenced legal action in the United States District Court for the Eastern District of Missouri against certain suppliers seeking recovery of increased costs and damages that the company incurred or will incur due to the issue in Canada. The company has not recorded any adjustments to its provision due to the early status of the legal action.

Investment In RBC Shares

9 Months Ended

Sep. 30, 2011

Investment In RBC Shares

Investment In RBC Shares

18.

Investment in RBC Shares

As discussed in Note 3, the company received 2.83 million of RBC shares as a part of the proceeds of its sale of EPC to RBC. The value of those shares at September 30, 2011 was $128.6 million. One half of the RBC shares are classified as available for sale securities and are recorded at fair value with the unrealized after-tax loss of $3.7 million included in other comprehensive loss. The company purchased an equity collar contract for the remaining half of the RBC shares that are classified as trading securities. The shares are recorded at fair value with the unrealized pretax loss of $6.0 million included in earnings and classified as other (income) expense–net, in the condensed consolidated statements of earnings. See Note 14 for further discussion regarding the collar. The RBC shares that the company received are not currently freely saleable under U.S. securities laws. On August 22, 2011, the company and RBC entered into a Shareholder Agreement that, among other things, provides that RBC will register such shares with the SEC so that such shares will be freely saleable. The company anticipates the shares will be registered by November 15, 2011.

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901
-Topic 320

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6511694
-Topic 320

+ Details

Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2011

Recent Accounting Pronouncements

Recent Accounting Pronouncements

19.

Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income." ASU No. 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of shareholders' equity. ASU 2011-05 will be effective for the quarter ending March 31, 2012. The adoption of this guidance will have no impact on the company's financial condition or results of operations but will impact the presentation of the financial statements. The company is currently evaluating the presentation options.

In September 2011, the FASB issued ASU No. 2011-08, "Testing of Goodwill for Impairment (Topic 350)". ASU No. 2011-08 allows companies to assess qualitative factors to determine whether the two-step quantitative goodwill impairment test needs to be performed. Under the option, an entity no longer would be required to calculate the fair value of a reporting unit unless it determines, based on that qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The ASU may change how a company tests goodwill for impairment but should not change the timing or measurement of goodwill impairments. The ASU is effective for fiscal years beginning after December 15, 2011. The company is currently reviewing the standard for applicability.

Acquisition (Tables)

9 Months Ended

Sep. 30, 2011

Acquisition

Schedule Of Preliminary Estimate Of Fair Value Of Assets Acquired And Liabilities Assumed


August 26, 2011 (dollars in millions)
Current assets, net of cash acquired	$	56.5
Property, plant and equipment		41.6
Intangible assets		258.3
Other assets		1.2
Goodwill		128.1

Total assets acquired		485.7
Current liabilities		42.4
Long-term liabilities		3.6

Total liabilities assumed		46.0

Net assets acquired	$	439.7

Schedule Of Pro Forma Unaudited Results Of Operations


	Nine months ended September 30,
	2011			2010

Net sales		$	1,350.3		$	1,238.7
Earnings from continuing operations			91.4			46.5
Earnings per common share:
Basic		$	1.98		$	1.02

Diluted		$	1.96		$	1.01

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details

Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2011

Discontinued Operations

Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet


	(dollars in millions)
	December 31, 2010
Assets
Current Assets
Trade receivables	$	110.8
Inventory		135.9
Deferred taxes		2.2
Derivative contracts asset		17.4
Other current assets		6.0

Total Current Assets		272.3

Net property, plant and equipment		148.1
Goodwill		248.4
Other intangibles		2.8

Total Assets	$	671.6

Liabilities

Current Liabilities
Trade payables	$	89.5
Accrued payroll and benefits		15.2
Accrued liabilities		11.1
Product warranties		4.3
Income taxes		2.5

Total Current Liabilities		122.6

Deferred taxes		77.2
Other liabilities		1.3

Total Liabilities		201.1

Total Net Assets	$	470.5

Schedule Of Disposal Groups Including Discontinued Operations Income Statement


	(dollars in millions)
	Three Months Ended September 30					Nine Months Ended September 30
	2011			2010		2011			2010
Net sales	$	109.5		$	181.9	$	531.8		$	536.1
Cost of products sold		87.4			140.2		415.6			413.9

Gross profit		22.1			41.7		116.2			122.2
Selling, general and administrative expenses		16.8			19.8		61.5			60.5
Interest expense		0.4			0.8		2.2			2.8
Other (income) expense - net		(0.6	)		0.1		(6.0	)		(0.3	)

		5.5			21.0		58.5			59.2
Provision for income taxes		0.4			5.2		14.9			16.4

Net earnings	$	5.1		$	15.8	$	43.6		$	42.8

Schedule Of Disposal Groups Including Discontinued Operations Cash Flow Statement

Nine months ended September 30 (dollars in millions)
	2011			2010
Operating Activities
Earnings	$	43.6		$	42.8
Adjustments to reconcile earnings to net cash provided by discontinued operating activities:
Depreciation and amortization		16.5			19.7
Gain on sale of assets		(4.8	)		(0.3	)
Net changes in operating assets and liabilities
Current assets and liabilities		(55.9	)		(34.0	)
Noncurrent assets and liabilities		0.9			4.2
Other		(1.8	)		(0.1	)

Cash (Used in) Provided by Discontinued Operating Activities		(1.5	)		32.3
Investing Activities
Capital expenditures		(10.6	)		(10.5	)
Proceeds from sale of assets		6.1			4.2
Proceeds from sale of operations		752.5			-
Payments associated with sale		(20.2	)		-

Cash Provided by (Used in) Discontinued Investing Activities		727.8			(6.3	)

Cash Provided by Discontinued Operations	$	726.3		$	26.0

Inventories (Tables)

9 Months Ended

Sep. 30, 2011

Inventories

Schedule Of Inventories


	(dollars in millions)
	September 30, 2011			December 31, 2010
Finished products	$	90.9		$	72.7
Work in process		10.2			14.4
Raw materials		98.6			82.7

		199.7			169.8
LIFO reserve		(23.0	)		(23.0	)

	$	176.7		$	146.8

Product Warranties (Tables)

9 Months Ended

Sep. 30, 2011

Product Warranties

Schedule Of Product Warranty Liability Activity


	(dollars in millions)
	2011			2010
Balance at January 1	$	112.1		$	108.6
Lochinvar acquisition		5.8			-
Expense		49.6			49.1
Net increase in warranty reserve due to settlement		7.5			-
Claims settled		(42.8	)		(45.3	)

Balance at September 30	$	132.2		$	112.4

Comprehensive Earnings (Tables)

9 Months Ended

Sep. 30, 2011

Comprehensive Earnings

Schedule Of Components Of Comprehensive Income


	(dollars in millions)
	Three Months Ended September 30					Nine Months Ended September 30
	2011			2010		2011			2010
Net Earnings	$	182.3		$	32.0	$	273.6		$	79.4
Other comprehensive (loss) earnings:
Foreign currency translation adjustments		(16.0	)		5.8		(9.6	)		2.8
Adjustment to additional minimum pension liability and post retirement obligation less related income tax benefit of: 2010 - $0.1		-			-		-			(0.1	)
Unrealized net (loss) gain on cash flow derivative instruments less related income tax benefit (provision) of: 2011 - $2.9 and $6.5, 2010 – $(2.4) and $0.4		(4.4	)		4.0		(10.2	)		(0.5	)
Unrealized net loss on investments less related tax benefit of : 2011 $2.3 and $2.3		(3.7	)		-		(3.7	)		-
Less comprehensive loss attributable to noncontrolling interest		-			-		-			0.1

Comprehensive Earnings	$	158.2		$	41.8	$	250.1		$	81.7

Earnings Per Share Of Common Stock (Tables)

9 Months Ended

Sep. 30, 2011

Earnings Per Share Of Common Stock

Schedule Of Computation Of Basic And Diluted Weighted-Average Shares Used In Earnings Per Share Calculations


	Three Months Ended September 30				Nine Months Ended September 30
	2011		2010		2011		2010
Denominator for basic earnings per share - weighted average shares		46,221,603		45,796,715		46,137,918		45,719,270
Effect of dilutive stock options, restricted stock and share units		420,920		457,440		472,871		375,345

Denominator for diluted earnings per share		46,642,523		46,254,155		46,610,789		46,094,615

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2011

Stock Based Compensation

Schedule Of Changes In Option Shares


	Weighted-Avg. Per Share Exercise Price		Nine Months Ended September, 2011			Average Remaining Contractual Life	Aggregate Intrinsic Value (dollars in millions)

Outstanding at January 1, 2011	$	22.17		1,623,101

Granted		43.18		178,200

Exercised		20.49		(313,461	)


Outstanding at September 30, 2011		25.04		1,487,840		8 years	$	12.4


Exercisable at September 30, 2011	$	22.65		1,031,557		7 years	$	9.6

Schedule Of Assumptions Used In Calculating Weighted Average Fair Value Per Option Using Black-Scholes Option Pricing Model


	Nine Months Ended September 30,
	2011			2010
Expected life (years)		6.4			6.4
Risk-free interest rate		3.6	%		3.6	%
Dividend yield		1.3	%		1.9	%
Expected volatility		38.4	%		38.7	%

Schedule Of Share Unit Activity Under Restricted Stock And Share Units Plan


	Number of Units			Weighted-Average Grant Date Value
Issued and unvested at January 1, 2011		473,438		$	22.43

Granted		75,625			43.12

Vested		(205,720	)		22.61

Terminated/cancelled		(27,529	)		24.91


Issued and unvested at September 30, 2011		315,814			27.04

Pensions (Tables)

9 Months Ended

Sep. 30, 2011

Pensions

Schedule Of Components Of Net Pension Expense


	(dollars in millions)
	Three Months Ended September 30						Nine Months Ended September 30
	2011			2010			2011			2010
Service cost	$	2.2		$	2.1		$	7.1		$	6.4
Interest cost		10.6			11.6			33.1			35.0
Expected return on plan assets		(17.8	)		(15.4	)		(52.8	)		(46.2	)
Amortization of net unrecognized loss		6.6			4.5			17.8			13.4
Amortization of prior service cost		(0.2	)		(0.2	)		(0.6	)		(0.7	)

Ongoing expense		1.4			2.6			4.6			7.9
Curtailment/settlement credit		(0.6	)		-			(0.6	)		-

Defined benefit plan expense	$	0.8		$	2.6		$	4.0		$	7.9

Operations (Tables)

9 Months Ended

Sep. 30, 2011

Operations

Continuing Operations


	(dollars in millions)
	Three Months Ended September 30						Nine Months Ended September 30
	2011			2010			2011			2010
Net sales
Water Products	$	412.0		$	377.4		$	1,234.7		$	1,119.1
Operating earnings
Water Products^{(1),(2),(3),(4)}	$	39.9		$	37.6		$	138.1		$	89.3
Corporate income (expenses)⁽⁵⁾		2.4			(12.6	)		(17.2	)		(38.6	)
Interest expense		(2.5	)		(1.7	)		(6.4	)		(5.0	)

Earnings before income taxes		39.8			23.3			114.5			45.7
Provision for income taxes		12.9			7.1			34.8			9.1

Earnings from continuing operations	$	26.9		$	16.2		$	79.7		$	36.6

⁽¹⁾ Includes equity loss in joint venture of	$	-		$	-		$	-		$	0.1
⁽²⁾ Includes flood expense of		-			-			-			34.2
⁽³⁾ Includes settlement income of		-			-			11.2			-
⁽⁴⁾ Includes Canadian warranty expense of		-			-			8.2			-
⁽⁵⁾ Includes unrealized net gain on investments of:		16.4			-			20.1			-

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

Schedule Of Assets Measured At Fair Value On A Recurring Basis


	(dollars in millions)
Fair Value Measurement Using	September 30, 2011			December 31, 2010
Quoted prices in active markets for identical assets (Level 1)		$	129.8	$	0.6
Significant other observable inputs (Level 2)			25.9		0.8

Total net derivative contracts		$	155.7	$	1.4

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Derivative Instruments (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2011

Schedule Of Effect Of Derivative Instruments On The Statement Of Earnings


Derivatives in ASC 815 cash flow hedging relationships	Amount of (loss)/gain recognized in OCI on derivative (effective portion)							Location of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)							Location of gain/(loss) recognized in earnings on derivative (ineffective portion)	Amount of gain recognized in earnings on a derivative (ineffective portion)
	2011				2010				2011			2010					2011			2010
Commodities contracts		$	(2.8	)		$	6.8	Cost of products sold		$	0.1		$	0.1		Cost of products sold		$	-		$	-
								Earnings from discontinued EPC operations			1.0			1.8		Earnings from discontinued EPC operations			-			0.2
								Gain on sale of EPC			1.8			-
Foreign currency contracts			(0.1	)			3.5	Cost of products sold			-			0.1		N/A			-			-
								Earnings from discontinued EPC operations			2.0			2.2		Earnings from discontinued EPC operations			-			-
								Gain on sale of EPC			5.2			-
Interest rate swap contract			-				-	Interest expense			-			(0.3	)	N/A			-			-

		$	(2.9	)		$	10.3			$	10.1		$	3.9				$	-		$	0.2


Derivatives not designated as a hedging instrument under ASC 815	Location of gain recognized in earnings from continuing operations on derivative		Amount of gain recognized in earnings from continuing operations on derivative
				2011		2010
Equity collar contract		Other income -net	$	22.4	$	-

Derivatives in ASC 815 cash flow hedging relationships	Amount of (loss)/gain recognized in OCI on derivative (effective portion)						Location of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)						Location of gain/(loss) recognized in earnings on derivative (ineffective portion)	Amount of gain recognized in earnings on a derivative (ineffective portion)
			2011			2010				2011		2010					2011		2010
Commodities contracts		$	(3.0	)	$	4.5	Cost of products sold		$	-	$	0.7		Cost of products sold		$	-	$	-
							Earnings from discontinued EPC operations			7.0		8.4		Earnings from discontinued EPC operations			0.1		0.2
							Gain on sale of EPC			1.8		-
Foreign currency contracts			4.9			9.3	Cost of products sold			0.1		0.6		N/A			-		-
							Earnings from discontinued EPC operations			6.9		5.9		Earnings from discontinued EPC operations			-		-
							Gain on sale of EPC			5.2		-
Interest rate swap contract			-			-	Interest expense			-		(0.9	)	N/A			-		-

		$	1.9		$	13.8			$	21.0	$	14.7				$	0.1	$	0.2


Derivatives not designated as a hedging instrument under ASC 815	Location of gain recognized in earnings from continuing operations on derivative		Amount of gain recognized in earnings from continuing operations on derivative
				2011		2010
Equity collar contract		Other income - net	$	26.1	$	-

Designated As Hedging Instrument [Member]

Schedule Of Summary By Currency Of Foreign Currency Forward Contracts


September 30 (dollars in millions)		2011					2010
	Buy			Sell			Buy		Sell
Euro		$	7.8		$	1.8	$	1.6		$	2.6
Canadian dollar			-			40.4		-			35.8
Mexican peso			14.4			-		13.4			-

Total		$	22.2		$	42.2	$	15.0		$	38.4

Schedule Of Impact Of Cash Flow Hedges On The Company's Financial Statements


		Fair Value
(dollars in millions)	Balance Sheet Location	September 30, 2011				December 31, 2010

Commodities contracts	Accrued liabilities		$	(0.3	)		$	-
	Other current assets			-				0.8
Foreign currency contracts	Accrued liabilities			(1.2	)			(0.5	)
	Other current assets			2.4				1.1

Total derivatives designated as hedging instruments			$	0.9			$	1.4

Not Designated As Hedging Instrument [Member]

Schedule Of Impact Of Cash Flow Hedges On The Company's Financial Statements


		Fair Value
(dollars in millions)	Balance Sheet Location	September 30, 2011			December 31, 2010

Equity collar contract	Investments		$	26.1		$	-

Total derivatives not designated as hedging instruments			$	26.1		$	-

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

Ashland City, TN Facility Flood (Tables)

9 Months Ended

Sep. 30, 2010

Ashland City, TN Facility Flood

Schedule Of Flood Related Expenses


	(dollars in millions)
Repair or write off of buildings and equipment	$	36.2
Net inventory loss		15.7
Site cleanup and restoration		14.3

		66.2
Less: insurance proceeds		32.0

Total flood related expense	$	34.2

Acquisition (Narrative) (Details) $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended
Acquisition (Narrative) (Details) $ in Millions	Sep. 30, 2011 USD ($)	Aug. 26, 2011 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2010 USD ($)
Cash acquired from acquisition		$ 1.5
Aggregate purchase price, net of cash acquired		418.1			$ 418.1	$ 5.6
Acquisition costs principally incurred		5.3
Agreed additional contingent payment in cash		35.0
Expected sales to make additional contingent payment		216.0
Estimated contingent payment	$ 16.7		$ 16.7		16.7
Acquired intangible assets	258.3	$ 258.3	258.3		258.3
Business acquisition purchase price allocation goodwill and intangible assets	386.4		386.4		386.4
Revenues from acquisitions included in operations			412.0	$ 377.4	1,234.7	1,119.1
Pretax net loss from acquisitions included in operations			39.8	23.3	114.5	45.8
Interest expense included in operations			2.5	$ 1.7	6.4	$ 5.0
Tradenames [Member]
Acquired intangible assets that are not subject to amortization	103.5		103.5		103.5
Customer Lists [Member]
Acquired intangible assets subject to amortization	152.5		152.5		$ 152.5
Acquired intangible assets, amortization periods in years					20
Non-compete Agreements [Member]
Acquired intangible assets subject to amortization	2.3		2.3		$ 2.3
Acquired intangible assets, amortization periods in years					10
Lochinvar Corporation [Member]
Percentage of shares acquired		100.00%
Acquisition costs principally incurred	4.4		$ 4.4		$ 4.4
Revenues from acquisitions included in operations	20.8
Pretax net loss from acquisitions included in operations	2.0
Operating earnings from acquisitions included in operations	3.0
Interest expense included in operations	$ 0.6

Acquisition (Schedule Of Preliminary Estimate Of Fair Value Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Millions	Sep. 30, 2011	Aug. 26, 2011
Acquisition
Current assets, net of cash acquired		$ 56.5
Property, plant and equipment		41.6
Intangible assets	$ 258.3	258.3
Other assets		1.2
Goodwill		128.1
Total assets acquired		485.7
Current liabilities		42.4
Long-term liabilities		3.6
Total liabilities assumed		46.0
Net assets acquired		$ 439.7

Acquisition (Schedule Of Pro Forma Unaudited Results Of Operations) (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Acquisition
Net sales	$ 1,350.3	$ 1,238.7
Earnings from continuing operations	$ 91.4	$ 46.5
Earnings per common share, Basic	$ 1.98	$ 1.02
Earnings per common share, Diluted	$ 1.96	$ 1.01

- Definition

The pro forma basic net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References + Details

- Definition

The pro forma diluted net income per share for a period as if the business combination or combinations had been completed at the beginning of a period.

+ References + Details

Discontinued Operations (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 22, 2011	Jun. 30, 2011	Sep. 30, 2011	Sep. 30, 2010
Discontinued Operations
Proceeds from sale of Electrical Products segment	$ 752.5		$ 752.5
Proceeds from sale of Electrical Products segment, shares	2,830
Value of shares from sale of Electrical Products segment	$ 140.6		128.6
Commissions, taxes and other sale related payments			20.2
Additional income tax accrual			60.0
Gain on sale of assets		$ 4.8	$ (4.8)	$ (0.3)

Discontinued Operations (Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet) (Details) - USD ($) $ in Millions	Sep. 30, 2011	Dec. 31, 2010
Discontinued Operations
Trade receivables		$ 110.8
Inventory		135.9
Deferred taxes		2.2
Derivative contracts asset		17.4
Other current assets		6.0
Total Current Assets		272.3
Net property, plant and equipment		148.1
Goodwill		248.4
Other intangibles		2.8
Total Assets		671.6
Trade payables		89.5
Accrued payroll and benefits		15.2
Accrued liabilities		11.1
Product warranties		4.3
Income taxes		2.5
Total Current Liabilities	$ 157.7	122.6
Deferred taxes		77.2
Other liabilities		1.3
Total Liabilities		201.1
Total Net Assets		$ 470.5

Discontinued Operations (Schedule Of Disposal Groups Including Discontinued Operations Income Statement) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Discontinued Operations
Net sales	$ 109.5	$ 181.9	$ 531.8	$ 536.1
Cost of products sold	87.4	140.2	415.6	413.9
Gross profit	22.1	41.7	116.2	122.2
Selling, general and administrative expenses	16.8	19.8	61.5	60.5
Interest expense	0.4	0.8	2.2	2.8
Other (income) expense - net	(0.6)	0.1	(6.0)	(0.3)
Earnings before income taxes	5.5	21.0	58.5	59.2
Provision for income taxes	0.4	5.2	14.9	16.4
Net earnings	$ 5.1	$ 15.8	$ 43.6	$ 42.8

Discontinued Operations (Schedule Of Disposal Groups Including Discontinued Operations Cash Flow Statement) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended			9 Months Ended
	Aug. 22, 2011	Sep. 30, 2011	Jun. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Discontinued Operations
Earnings		$ 5.1		$ 15.8	$ 43.6	$ 42.8
Depreciation and amortization					16.5	19.7
Gain on sale of assets			$ 4.8		(4.8)	(0.3)
Current assets and liabilities					(55.9)	(34.0)
Noncurrent assets and liabilities					0.9	4.2
Other					(1.8)	(0.1)
Cash (Used in) Provided by Discontinued Operating Activities					(1.5)	32.3
Capital expenditures					(10.6)	(10.5)
Proceeds from sale of assets					6.1	4.2
Proceeds from sale of operations	$ 752.5				752.5
Payments associated with sale					(20.2)
Cash Provided by (Used in) Discontinued Investing Activities					727.8	(6.3)
Cash Provided by Discontinued Operations					$ 726.3	$ 26.0

Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Millions	Sep. 30, 2011	Dec. 31, 2010
Inventories
Finished products	$ 90.9	$ 72.7
Work in process	10.2	14.4
Raw materials	98.6	82.7
Inventory net before LIFO reserve	199.7	169.8
LIFO reserve	(23.0)	(23.0)
Inventories	$ 176.7	$ 146.8

Restricted Marketable Securities (Details) $ in Millions	Sep. 30, 2011 USD ($)
Captive [Member]
Restricted amount	$ 12.0

Long-Term Debt (Details) $ in Millions	9 Months Ended
Long-Term Debt (Details) $ in Millions	Sep. 30, 2011 USD ($)
Long-Term Debt
Multi-currency revolving credit agreement	$ 425
Number of banks that enter in to revolving credit agreement with company	8
Revolving credit facility, expiration date	November 13, 2013
Multi-currency revolving credit maximum amount	$ 525

Product Warranties (Schedule Of Product Warranty Liability Activity) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Product Warranties
Balance at January 1	$ 112.1	$ 108.6
Lochinvar acquisition	5.8
Expense	49.6	49.1
Net increase in warranty reserve due to settlement	7.5
Claims settled	(42.8)	(45.3)
Balance at September 30	$ 132.2	$ 112.4

Comprehensive Earnings (Schedule Of Components Of Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Comprehensive Earnings
Net Earnings	$ 182.3	$ 32.0	$ 273.6	$ 79.4
Foreign currency translation adjustments	(16.0)	5.8	(9.6)	2.8
Adjustment to additional minimum pension liability and post retirement obligation less related income tax benefit of: 2010 - $0.1				(0.1)
Adjustment to additional minimum pension liability and post retirement obligation, income tax benefit				0.1
Unrealized net (loss) gain on cash flow derivative instruments less related income tax benefit (provision) of: 2011 - $2.9 and $6.5, 2010 - $(2.4) and $0.4	(4.4)	4.0	(10.2)	(0.5)
Unrealized net loss on cash flow derivative instruments, related income tax benefit (provision)	2.9	(2.4)	6.5	0.4
Unrealized net loss on investments less related tax benefit of : 2011 $2.3 and $2.3	(3.7)		(3.7)
Unrealized net loss on investments, related tax benefit	2.3		2.3
Less comprehensive loss attributable to noncontrolling interest				0.1
Comprehensive Earnings	$ 158.2	$ 41.8	$ 250.1	$ 81.7

Earnings Per Share Of Common Stock (Schedule Of Computation Of Basic And Diluted Weighted-Average Shares Used In Earnings Per Share Calculations) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Earnings Per Share Of Common Stock
Denominator for basic earnings per share - weighted average shares	46,221,603	45,796,715	46,137,918	45,719,270
Effect of dilutive stock options, restricted stock and share units	420,920	457,440	472,871	375,345
Denominator for diluted earnings per share	46,642,523	46,254,155	46,610,789	46,094,615

- 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

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
-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 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-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
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6920599&loc=d3e1448-109256

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

Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Apr. 14, 2009
Total stock based compensation cost recognized	$ 1.1	$ 1.2	$ 4.6	$ 4.2
Stock granted, vesting period from date of grant in year			three	three
Options granted expiration period after date of grant			ten
Stock based compensation cost attributable to stock options	0.5	0.5	$ 2.3	$ 1.7
Weighted-average fair value per option at the date of grant			$ 16.51	$ 10.19
Share based compensation expense attributable to share units	$ 0.6	$ 0.7
A.O. Smith Combined Compensation Plan [Member]
Share based compensation additional stock options approved for issuance					1,875,000
Number of shares available for granting of options, restricted stock or share units	1,902,543		1,902,543
Restricted Stock And Share Units [Member]
Stock granted, vesting period from date of grant in year			three
Share units granted under the plan			75,625	101,873
Value of share units at the date of issuance			$ 2.7	$ 2.9
Share based compensation expense attributable to share units			$ 2.3	$ 2.5

Stock Based Compensation (Schedule Of Changes In Option Shares) (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2011 USD ($) $ / shares shares
Stock Based Compensation
Weighted-Avg. Per Share Exercise Price, Beginning of Period \| $ / shares	$ 22.17
Weighted-Avg. Per Share Exercise Price - Granted \| $ / shares	43.18
Weighted-Avg. Per Share Exercise Price - Exercised \| $ / shares	20.49
Weighted-Avg. Per Share Exercise Price, End of Period \| $ / shares	25.04
Weighted-Avg. Per Share Exercise Price, Exercisable \| $ / shares	$ 22.65
Outstanding, Beginning Balance \| shares	1,623,101
Granted \| shares	178,200
Exercised \| shares	(313,461)
Outstanding, Ending Balance \| shares	1,487,840
Exercisable at End of Period \| shares	1,031,557
Average Remaining Contractual Life, Outstanding at End of Period, Years	8
Average Remaining Contractual Life, Exercisable at End of Period, Years	7
Aggregate Intrinsic Value, Outstanding at End of Period \| $	$ 12.4
Aggregate Intrinsic Value, Exercisable at End of Period \| $	$ 9.6

Stock Based Compensation (Schedule Of Assumptions Used In Calculating Weighted-Average Fair Value Per Option Using Black-Scholes Option-Pricing Model) (Details)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Stock Based Compensation
Expected life (years)	6.4	6.4
Risk-free interest rate	3.60%	3.60%
Dividend yield	1.30%	1.90%
Expected volatility	38.40%	38.70%

Stock Based Compensation (Schedule Of Share Unit Activity Under Restricted Stock And Share Units Plan) (Details) - Restricted Stock And Share Units [Member] - $ / shares	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Number of Units Issued and unvested, Beginning of Period	473,438
Number of Units - Granted	75,625	101,873
Number of Units - Vested	(205,720)
Number of Units - Terminated/cancelled	(27,529)
Number of Units Issued and unvested, End of Period	315,814
Weighted-Average Grant Date Value Issued and unvested, Beginning of Period	$ 22.43
Weighted-Average Grant Date Value - Granted	43.12
Weighted-Average Grant Date Value - Vested	22.61
Weighted-Average Grant Date Value - Terminated/cancelled	24.91
Weighted-Average Grant Date Value Issued and unvested, End of Period	$ 27.04

- Definition

The weighted average fair value of nonvested awards on equity-based plans excluding option plans (for example, phantom stock or unit plan, stock or unit appreciation rights plan, revenue or profit achievement stock award plan) for which the employer is contingently obligated to issue equity instruments or transfer assets to an employee who has not yet satisfied service or performance criteria necessary to gain title to proceeds from the sale of the award or underlying shares or units.

+ References + Details

Pensions (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
Pensions (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010
Pensions
Contributions made by company			$ 175.0		$ 30.6
Defined benefit plan expense associated with discontinued operations	$ 0.6	$ 0.0	$ 1.6	$ 0.0

Pensions (Schedule Of Components Of Net Pension Expense) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Pensions
Service cost	$ 2.2	$ 2.1	$ 7.1	$ 6.4
Interest cost	10.6	11.6	33.1	35.0
Expected return on plan assets	(17.8)	(15.4)	(52.8)	(46.2)
Amortization of net unrecognized loss	6.6	4.5	17.8	13.4
Amortization of prior service cost	(0.2)	(0.2)	(0.6)	(0.7)
Ongoing expense	1.4	2.6	4.6	7.9
Curtailment/settlement credit	(0.6)		(0.6)
Defined benefit plan expense	$ 0.8	$ 2.6	$ 4.0	$ 7.9

- Definition

An amount calculated as a basis for determining the extent of delayed recognition of the effects of changes in the fair value of assets. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets.

+ References

+ 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 amount of net gain (loss) recognized in net periodic benefit cost as a result of an event that significantly reduces the expected years of future service of present employees or eliminates for a significant number of employees the accrual of defined benefits for some or all of their future services.

+ 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

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 Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a, 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 Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)(1)
-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

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

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Service Cost (Component of Net Periodic Pension Cost)
-URI http://asc.fasb.org/extlink&oid=6525008

+ Details

Operations (Details)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2011

USD ($)

Jun. 30, 2011

USD ($)

Sep. 30, 2010

USD ($)

Sep. 30, 2011

USD ($)

Sep. 30, 2010

USD ($)

Water Products

$ 412.0

$ 377.4

$ 1,234.7

$ 1,119.1

Corporate income (expenses)

^[1]

2.4

(12.6)

(17.2)

(38.6)

Interest expense

(2.5)

(1.7)

(6.4)

(5.0)

Earnings before income taxes

39.8

23.3

114.5

45.7

Provision for income taxes

12.9

7.1

34.8

9.1

Earnings from continuing operations

26.9

16.2

79.7

36.6

Equity loss in joint venture

(0.1)

Flood related expense

34.2

Settlement income

$ 11.2

11.2

Canadian warranty expense

$ 8.2

8.2

Unrealized net gain on investments

16.4

$ 20.1

Number of reporting segments.

Water Products [Member]

Operating earnings

^{[2],[3],[4],[5]}

$ 39.9

$ 37.6

$ 138.1

$ 89.3

[1]	Includes unrealized net gain on investments of
[2]	Includes Canadian warranty expense of
[3]	Includes equity loss in joint venture of
[4]	Includes flood expense of
[5]	Includes settlement income of

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2011	Dec. 31, 2010
Quoted prices in active markets for identical assets (Level 1)	$ 155.7	$ 1.4
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Quoted prices in active markets for identical assets (Level 1)	129.8	0.6
Significant Other Observable Inputs (Level 2) [Member]
Quoted prices in active markets for identical assets (Level 1)	$ 25.9	$ 0.8

- Definition

Fair values as of the balance sheet date of all assets resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements.

+ References + Details

Derivative Instruments (Narrative) (Details) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011 USD ($) $ / shares	Sep. 30, 2010 USD ($)	Sep. 30, 2011 USD ($) $ / shares	Sep. 30, 2010 USD ($)	Aug. 22, 2011 shares
Amount in excess of cash deposits on unrealized losses on commodity derivatives			$ 10.0
After-tax gain of the effective portion of the contracts	$ (2.9)	$ 10.3	$ 1.9	$ 13.8
Commodity hedges outstanding, total weight of copper, in pounds			600,000
Change in foreign currency valuation			$ 3.2
Price of the equity collar, per share \| $ / shares	45.38		45.38
Proceeds from sale of Electrical Products segment, shares \| shares					2,830
Equity collar contract, percentage of shares hedged					50.00%
Equity collar			$ 25.0
Call Strike Price [Member]
Price of the equity collar, per share \| $ / shares	77.32		77.32
Put Strike Price [Member]
Price of the equity collar, per share \| $ / shares	63.29		63.29
Commodities Contracts [Member]
After-tax gain of the effective portion of the contracts	$ (2.8)	$ 6.8	$ (3.0)	$ 4.5
Commodities Contracts [Member] \| Accumulated Other Comprehensive Loss
After-tax gain of the effective portion of the contracts			0.2
Interest Rate Swap Contract [Member]
Number of interest rate derivatives held		1		1
Interest rate swap outstanding	$ 25.0		$ 25.0
Maturity date of derivative			Nov. 01, 2010

Derivative Instruments (Schedule Of Summary By Currency Of Foreign Currency Forward Contracts) (Details) - USD ($) $ in Millions	Sep. 30, 2011	Sep. 30, 2010
Buy	$ 22.2	$ 15.0
Sell	42.2	38.4
Euro [Member]
Buy	7.8	1.6
Sell	1.8	2.6
Canadian Dollar [Member]
Buy
Sell	40.4	35.8
Mexican Peso [Member]
Buy	14.4	13.4
Sell

Derivative Instruments (Schedule Of Impact Of Cash Flow Hedges On The Company's Financial Statements) (Details) - USD ($) $ in Millions	Sep. 30, 2011	Dec. 31, 2010
Commodities Contracts [Member] \| Other Current Assets [Member]
Fair value of derivative instruments, assets		$ 0.8
Commodities Contracts [Member] \| Accrued Liabilities [Member]
Fair value of derivative instruments, liabilities	$ (0.3)
Foreign Currency Contracts [Member] \| Other Current Assets [Member]
Fair value of derivative instruments, assets	2.4	1.1
Foreign Currency Contracts [Member] \| Accrued Liabilities [Member]
Fair value of derivative instruments, liabilities	(1.2)	(0.5)
Equity Collar Contract [Member] \| Investments [Member]
Fair value of derivative instruments, assets	26.1
Designated As Hedging Instrument [Member]
Fair value of derivative instruments, total	0.9	$ 1.4
Not Designated As Hedging Instrument [Member]
Fair value of derivative instruments, total	$ 26.1

Derivative Instruments (Schedule Of Effect Of Derivative Instruments On The Statement Of Earnings) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Amount of (loss)/gain recognized in OCI on derivative (effective portion)	$ (2.9)	$ 10.3	$ 1.9	$ 13.8
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	10.1	3.9	21.0	14.7
Amount of gain/(loss) recognized in earnings on a derivative (ineffective portion)		0.2	0.1	0.2
Commodities Contracts [Member]
Amount of (loss)/gain recognized in OCI on derivative (effective portion)	(2.8)	6.8	(3.0)	4.5
Commodities Contracts [Member] \| Cost Of Products Sold [Member]
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	0.1	0.1		0.7
Commodities Contracts [Member] \| Earnings From Discontinued EPC Operations [Member]
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	1.0	1.8	7.0	8.4
Amount of gain/(loss) recognized in earnings on a derivative (ineffective portion)		0.2	0.1	0.2
Commodities Contracts [Member] \| Gain On Sale Of EPC [Member]
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	1.8		1.8
Foreign Currency Contracts [Member]
Amount of (loss)/gain recognized in OCI on derivative (effective portion)			4.9	9.3
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion), Foreign currency contracts	(0.1)	3.5
Foreign Currency Contracts [Member] \| Cost Of Products Sold [Member]
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)		0.1	0.1	0.6
Foreign Currency Contracts [Member] \| Earnings From Discontinued EPC Operations [Member]
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	2.0	2.2	6.9	5.9
Foreign Currency Contracts [Member] \| Gain On Sale Of EPC [Member]
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)	5.2		5.2
Interest Rate Swap Contract [Member]
Amount of gain/(loss) reclassified from Accumulated OCI into earnings (effective portion)		$ (0.3)		(0.9)
Equity Collar Contract [Member]
Amount of gain recognized in earnings from continuing operations on derivative	$ 22.4		$ 26.1

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2011	Sep. 30, 2010	Jun. 30, 2010	Sep. 30, 2011	Sep. 30, 2010	Dec. 31, 2010
Effective tax rate	32.40%	30.50%		30.40%	28.00%	23.30%
Flood related expense					$ 34.2
Unrecognized tax benefits	$ 2.9			$ 2.9		$ 2.7
Unrecognized tax benefits that would affect the effective tax rate if recognized	2.3			2.3		$ 2.2
Taxes payable on foreign earnings not permanently reinvested	$ 60.0			$ 60.0
Flood Related Losses [Member]
Flood related expense			$ 34.2
Discrete tax credit					$ 13.3

Ashland City, TN Facility Flood (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2010	Dec. 31, 2010
Flood related expense		$ 34.2
Site cleanup and restoration		14.3
Value of fixed assets destroyed		13.7
Expense to repair and refurbish damaged equipment to pre-flood condition		22.5
Net inventory written off		15.7
Insurance proceeds		32.0
Government assistance			$ 7.0
Government incentives recorded in cost of goods sold	$ 1.4
Insurance policies recovered			2.0
Ashland City TN Plant Business Interruption Insurance [Member]
Insurance proceeds			$ 30.0
Federal Flood Insurance Policies [Member]
Insurance proceeds		$ 32.0

Ashland City, TN Facility Flood (Schedule Of Flood Related Expenses) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2010 USD ($)
Ashland City, TN Facility Flood
Repair or write off of buildings and equipment	$ 36.2
Net inventory loss	15.7
Site cleanup and restoration	14.3
Flood related expenses	66.2
Less: insurance proceeds	32.0
Total flood related expense	$ 34.2

Settlement (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Settlement (Details) - USD ($) $ in Millions	Jun. 30, 2011	Sep. 30, 2011
Settlement
Cash Payment		$ 35.5
Cash reserve for future cost		7.5
Pretax gain on related costs	$ 11.2	11.2
Warranty Provision	$ 8.2	$ 8.2

Investment In RBC Shares (Details) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 22, 2011	Sep. 30, 2011	Sep. 30, 2011
Investment In RBC Shares
Proceeds from sale of Electrical Products segment, shares	2,830
Value of shares from sale of Electrical Products segment	$ 140.6		$ 128.6
Unrealized after-tax loss on available for sale securities		$ 3.7	3.7
Unrealized pretax loss on trading securities			$ 6.0

- Definition

Appreciation or loss in value (before reclassification adjustment) of the total of unsold securities during the period being reported on, net of tax. Reclassification adjustments include: (1) the unrealized holding gain (loss), net of tax, at the date of the transfer for a debt security from the held-to-maturity category transferred into the available-for-sale category. Also includes the unrealized gain (loss) at the date of transfer for a debt security from the available-for-sale category transferred into the held-to-maturity category; (2) the unrealized gains (losses) realized upon the sale of securities, after tax; and (3) the unrealized gains (losses) realized upon the write-down of securities, after tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-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 24
-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 130
-Paragraph 17, 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 Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e637-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e653-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 55
-Paragraph 2
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6920433&loc=d3e998-108581

Reference 7: 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

The increase (decrease) resulting in a loss from the difference between the fair value and the carrying value, or in the comparative fair values, of trading securities held at each balance sheet date, that was included in earnings for the period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-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 115
-Paragraph 12
-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 115
-Paragraph 21
-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 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.7(c))
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Trading Securities
-URI http://asc.fasb.org/extlink&oid=6526789

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 35
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6956420&loc=d3e24584-111560

+ Details