Basis of Presentation and Summary of Significant Accounting Policies

Our significant accounting policies are described below, as well as in other Notes that follow. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations only (see Note 4 for information on discontinued operations).

Principles of Consolidation — The consolidated financial statements include SPX Corporation’s (“SPX”, “our”, or “we”) accounts prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) after the elimination of intercompany transactions. Investments in unconsolidated companies where we exercise significant influence but do not have control are accounted for using the equity method. In determining whether we are the primary beneficiary of a variable interest entity (“VIE”), we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties to determine which party has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and which party has the obligation to absorb losses or the right to receive benefits of the entity that could potentially be significant to the VIE. We have an interest in a VIE, in which we are not the primary beneficiary, as a result of the sale of Balcke Dürr. See below and in Notes 2, 4 and 15 for further discussion of the Balcke Dürr sale. All other VIEs are considered immaterial, individually and in aggregate, to our consolidated financial statements.

Spin-Off of FLOW Business — On September 26, 2015 (the “Distribution Date”), we completed the spin-off to our stockholders (the “Spin-Off”) of all the outstanding shares of SPX FLOW, Inc. (“SPX FLOW”), a wholly-owned subsidiary of SPX prior to the Spin-Off, which at the time of the Spin-Off held the businesses comprising our Flow Technology reportable segment, our Hydraulic Technologies business, and certain of our corporate subsidiaries (collectively, the “FLOW Business”). On the Distribution Date, each of our stockholders of record as of the close of business on September 16, 2015 (the “Record Date”) received one share of common stock of SPX FLOW for every share of SPX common stock held as of the Record Date. SPX FLOW is now an independent public company trading under the symbol “FLOW” on the New York Stock Exchange. Following the Spin-Off, SPX’s common stock continues to be listed on the New York Stock Exchange and trades under the ticker symbol, “SPXC”. The financial results of SPX FLOW for the year ended December 31, 2015 have been classified as discontinued operations within the accompanying consolidated financial statements.

Shift Away from the Power Generation Markets — Prior to the Spin-Off, our businesses serving the power generation markets had a major impact on the consolidated financial results of SPX. In the recent years leading up to the Spin-Off, these businesses experienced significant declines in revenues and profitability associated with weak demand and increased competition within the global power generation markets. Based on a review of our post-spin portfolio and the belief that a recovery within the power generation markets was unlikely in the foreseeable future, we decided that our strategic focus would be on our (i) scalable growth businesses that serve the heating and ventilation (“HVAC”) and detection and measurement markets and (ii) power transformer and process cooling systems businesses. As a result, we have significantly reduced our exposure to the power generation markets as indicated by the disposals summarized below:


•	Sale of Dry Cooling Business - On March 30, 2016, we completed the sale of our dry cooling business, a business that provides dry cooling systems to the global power generation markets and was previously reported within our Engineered Solutions reportable segment, to Paharpur Cooling Towers Limited. See Note 4 for additional details.

•

Sale of Balcke Dürr Business - On December 30, 2016, we completed the sale of Balcke Dürr, a business that provides heat exchangers and other related components to the European and Asian power generation markets, to a subsidiary of mutares AG (the “Buyer”). Balcke Dürr historically had been the most significant of our power generation businesses and, in recent years, had experienced significant declines in its operating performance as evidenced by its net loss of $39.6 in 2015. With the sale, we eliminated the losses and liquidity needs of Balcke Dürr, which were expected to be significant in the foreseeable future. As we considered the disposition of Balcke Dürr to be the cornerstone of our strategic shift away from the power generation markets, and given the significance of Balcke Dürr’s financial results to our overall operations prior to its disposition, we have classified Balcke Dürr as a discontinued operation in the accompanying consolidated financial statements. See Note 4 for additional details.

New Income Tax Regulations in the United States — On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted which significantly changes United States (“U.S.”) income tax law for businesses and individuals. The Act introduces changes that impact U.S. corporate tax rates (e.g., a reduction in the top tax rate from 35% to 21%), business-related exclusions, and deductions and credits. In addition, the Act will have tax consequences for many entities that operate internationally, including the timing and the amount of tax to be paid on undistributed foreign earnings. Given the significance of the changes that will result from the Act, companies are likely to encounter a situation in which the accounting for certain income tax effects of the Act will be incomplete by the time their financial statements are issued for the reporting period that includes the enactment date of December 22, 2017. In recognition of this potential situation, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”). SAB 118 provides guidance on how companies should apply Accounting Standard Codification (“ASC”) Topic 740, Income Taxes, in accounting for the impact of the Act. Specifically, SAB 118 indicates that to the extent accounting for certain income tax effects of the Act is incomplete, but an entity can determine a reasonable estimate for those effects, such estimates should be included in an entity’s financial statements. The reasonable estimates are to be reported as provisional amounts during a measurement period. The measurement period begins with the reporting period that includes the Act’s enactment date and ends when an entity has finalized its analysis of the information that is needed in order to complete the accounting requirements of ASC 740, but in no circumstances would the measurement period extend beyond one year from the enactment date. In circumstances when a reasonable estimate cannot be determined, an entity would continue to apply ASC 740 (e.g., when recognizing and measuring current and deferred income taxes) based on the provisions of the tax law that were in effect prior to the Act being enacted. In addition, to the extent the accounting for certain income tax effects of the Act are complete, these completed amounts will not be provisional amounts. SAB 118 also indicates that an entity should provide various disclosures about the material financial reporting impacts of the Act for which accounting under ASC 740 is incomplete. See Note 10 for a discussion of the impact of the Act on our 2017 consolidated financial statements, including disclosure of any provisional amounts that have been recorded and circumstances where reasonable estimates could not be made.

Retirement of Treasury Stock — In 2016, we retired 50.0 shares, or $2,948.1, of “Common stock in treasury.” Under the applicable state law, these shares represent authorized and unissued shares upon retirement. In accordance with our accounting policy, we allocate any excess of share repurchase over par value between “Paid-in capital” and “Retained earnings,” resulting in respective reductions of $1,285.4 and $1,662.2.

Foreign Currency Translation and Transactions — The financial statements of our foreign subsidiaries are translated into U.S. dollars in accordance with the Foreign Currency Matters Topic of the Financial Accounting Standards Board Codification (“Codification”). Gains and losses on foreign currency translations are reflected as a separate component of equity and other comprehensive income. Foreign currency transaction gains and losses, as well as gains and losses related to foreign currency forward contracts and currency forward embedded derivatives, are included in “Other expense, net,” with the related net losses totaling $3.3, $2.4 and $8.6 in 2017, 2016 and 2015, respectively.

Cash Equivalents — We consider highly liquid money market investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Revenue Recognition — We recognize revenues from product sales upon shipment to the customer (e.g., FOB shipping point) or upon receipt by the customer (e.g., FOB destination), in accordance with the agreed upon customer terms. Revenues from service contracts and long-term maintenance arrangements are recognized on a straight-line basis over the agreement period. Sales with FOB destination terms are primarily to power transformer customers. Sales to distributors with return rights are recognized upon shipment to the distributor with expected returns estimated and accrued at the time of sale. The accrual considers restocking charges for returns and in some cases the distributor must issue a replacement order before the return is authorized. Actual return experience may vary from our estimates. We recognize revenues separately for arrangements with multiple deliverables that meet the criteria for separate units of accounting as defined by the Revenue Recognition Topic of the Codification. The deliverables under these arrangements typically include hardware and software components, installation, maintenance, extended warranties and software upgrades. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price of the product or service when it is sold separately, competitor prices for similar products or our best estimate. The hardware and software components are usually recognized as revenue contemporaneously, as both are required for essential functionality of the products, with the installation being recognized upon completion. Revenues related to maintenance, extended warranties and software upgrades are recognized on a pro-rata basis over the coverage period.

We offer sales incentive programs primarily to effect volume rebates and promotional and advertising allowances. These programs are only significant to one of our business units. The liability for these programs, and the resulting reduction to reported revenues, is determined primarily through trend analysis, historical experience and expectations regarding customer participation.

Amounts billed for shipping and handling are included in revenues. Costs incurred for shipping and handling are recorded in cost of products sold. Taxes assessed by governmental authorities that are directly imposed on a revenue-producing transaction between a seller and a customer are presented on a net basis (excluded from revenues) in our consolidated statements of operations.

In addition, certain of our businesses, primarily within the Engineered Solutions reportable segment, also recognize revenues from long-term construction/installation contracts under the percentage-of-completion method of accounting. The percentage-of-completion is measured principally by the percentage of costs incurred to date for each contract to the estimated total costs for such contract at completion. We recognize revenues for similar short-term contracts using the completed-contract method of accounting.

Provisions for any estimated losses on uncompleted long-term contracts are made in the period in which such losses are determined. In the case of customer change orders for uncompleted long-term contracts, estimated recoveries are included for work performed in forecasting ultimate profitability on certain contracts. Due to uncertainties inherent in the estimation process, it is possible that completion costs, including those arising from contract penalty provisions and final contract settlements, may be revised in the near-term. Such revisions to costs and income are recognized in the period in which the revisions are determined.

Costs and estimated earnings in excess of billings arise when revenues have been recorded but the amounts have not been billed under the terms of the contracts. These amounts are recoverable from customers upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of the contract. Claims related to long-term contracts are recognized as revenue only after we have determined that collection is probable and the amount can be reliably estimated. Claims made by us involve negotiation and, in certain cases, litigation or other dispute-resolution processes. In the event we incur litigation or other dispute-resolution costs in connection with claims, such costs are expensed as incurred, although we may seek to recover these costs. Claims against us are recognized when a loss is considered probable and amounts are reasonably estimable.

We recognized $255.5, $336.1 and $361.8 in revenues under the percentage-of-completion method for the years ended December 31, 2017, 2016 and 2015, respectively. Costs and estimated earnings on uncompleted contracts, from their inception, and related amounts billed as of December 31, 2017 and 2016 were as follows:



	2017			2016
Costs incurred on uncompleted contracts	$	1,261.3		$	1,191.4
Estimated earnings (loss) to date	(59.9		)	25.0
	1,201.4			1,216.4
Less: Billings to date	(1,202.0		)	(1,235.8		)
Billings in excess of costs and estimated earnings	$	(0.6	)	$	(19.4	)

These amounts are included in the accompanying consolidated balance sheets at December 31, 2017 and 2016 as shown below. Amounts for billed retainages and receivables to be collected in excess of one year are not significant for the periods presented.



	2017			2016
Costs and estimated earnings in excess of billings⁽¹⁾	$	28.8		$	33.9
Billings in excess of costs and estimated earnings on uncompleted contracts⁽²⁾	(29.4		)	(53.3		)
Net billings in excess of costs and estimated earnings	$	(0.6	)	$	(19.4	)

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⁽¹⁾	Reported as a component of “Accounts receivable, net.”


⁽²⁾	Reported as a component of “Accrued expenses.”

Research and Development Costs — We expense research and development costs as incurred. We charge costs incurred in the research and development of new software included in products to expense until technological feasibility is established. After technological feasibility is established, additional eligible costs are capitalized until the product is available for general release. We amortize these costs over the economic lives of the related products and include the amortization in cost of products sold. We perform periodic reviews of the recoverability of these capitalized software costs. At the time we determine that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, we write off any unrecoverable capitalized amounts. Capitalized software, net of amortization, totaled $8.3 and $10.5 as of December 31, 2017 and 2016, respectively. Capitalized software amortization expense totaled $2.4, $1.2 and $0.2 for 2017, 2016 and 2015, respectively. We expensed research activities relating to the development and improvement of our products of $23.3, $29.1 and $28.6 in 2017, 2016 and 2015, respectively.

Property, Plant and Equipment — Property, plant and equipment (“PP&E”) is stated at cost, less accumulated depreciation. We use the straight-line method for computing depreciation expense over the useful lives of PP&E, which do not exceed 40 years for buildings and range from 3 to 15 years for machinery and equipment. Depreciation expense, including amortization of capital leases, was $22.2, $22.5 and $31.8 for the years ended December 31, 2017, 2016 and 2015, respectively. Leasehold improvements are amortized over the life of the related asset or the life of the lease, whichever is shorter. Interest is capitalized on significant construction or installation projects. No interest was capitalized during 2017, 2016 or 2015.

Pension and Postretirement — We recognize changes in the fair value of plan assets and actuarial gains and losses in earnings during the fourth quarter of each year, unless earlier remeasurement is required, as a component of net periodic benefit expense and, accordingly, recognize the effects of plan investment performance, interest rate changes, and changes in actuarial assumptions as a component of earnings in the year in which they occur. The remaining components of pension/postretirement expense, primarily service and interest costs and expected return on plan assets, are recorded on a quarterly basis.

Income Taxes — We account for our income taxes based on the requirements of the Income Taxes Topic of the Codification, which includes an estimate of the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities, including the results of local, state, federal or foreign statutory tax audits or estimates and judgments used.

Derivative Financial Instruments — We use foreign currency forward contracts to manage our exposures to fluctuating currency exchange rates, forward contracts to manage the exposure on forecasted purchases of commodity raw materials (“commodity contracts”) and interest rate protection agreements to manage our exposures to fluctuating interest rate risk on variable rate debt. Derivatives are recorded on the balance sheet and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives is recorded in accumulated other comprehensive income (“AOCI”) and subsequently recognized in earnings when the hedged items impact earnings. Changes in the fair value of derivatives not designated as hedges, and the ineffective portion of cash flow hedges, are recorded in current earnings. We do not enter into financial instruments for speculative or trading purposes.

For those transactions that are designated as cash flow hedges, on the date the derivative contract is entered into, we document our hedge relationship, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transaction. We also assess, both at inception and quarterly thereafter, whether such derivatives are highly effective in offsetting changes in the fair value of the hedged item. See Notes 12 and 14 for further information.

Cash flows from hedging activities are included in the same category as the items being hedged, which are primarily operating activities.

Use of Estimates

12 Months Ended

Dec. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Use of Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues (e.g., our percentage-of-completion estimates described above) and expenses during the reporting period. We evaluate these estimates and judgments on an ongoing basis and base our estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from the estimates and assumptions used in the consolidated financial statements and related notes.

Listed below are certain significant estimates and assumptions used in the preparation of our consolidated financial statements. Certain other estimates and assumptions are further explained in the related notes.

Accounts Receivable Allowances — We provide allowances for estimated losses on uncollectible accounts based on our historical experience and the evaluation of the likelihood of success in collecting specific customer receivables. In addition, we maintain allowances for customer returns, discounts and invoice pricing discrepancies, with such allowances primarily based on historical experience. Summarized below is the activity for these allowance accounts.



	Year ended December 31,
	2017			2016			2015
Balance at beginning of year	$	10.1		$	9.1		$	12.9
Allowances provided	13.2			15.7			14.0
Write-offs, net of recoveries, credits issued and other	(13.1		)	(14.7		)	(17.8		)
Balance at end of year	$	10.2		$	10.1		$	9.1

Inventory — We estimate losses for excess and/or obsolete inventory and the net realizable value of inventory based on the aging and historical utilization of the inventory and the evaluation of the likelihood of recovering the inventory costs based on anticipated demand and selling price.

Long-Lived Assets and Intangible Assets Subject to Amortization — We continually review whether events and circumstances subsequent to the acquisition of any long-lived assets, or intangible assets subject to amortization, have occurred that indicate the remaining estimated useful lives of those assets may warrant revision or that the remaining balance of those assets may not be fully recoverable. If events and circumstances indicate that the long-lived assets should be reviewed for possible impairment, we use projections to assess whether future cash flows on an undiscounted basis related to the assets are likely to exceed the related carrying amount. We will record an impairment charge to the extent that the carrying value of the assets exceed their fair values as determined by valuation techniques appropriate in the circumstances, which could include the use of similar projections on a discounted basis.

In determining the estimated useful lives of definite-lived intangibles, we consider the nature, competitive position, life cycle position, and historical and expected future operating cash flows of each acquired asset, as well as our commitment to support these assets through continued investment and legal infringement protection.

Goodwill and Indefinite-Lived Intangible Assets — We test goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter and continually assess whether a triggering event has occurred to determine whether the carrying value exceeds the implied fair value. The fair value of reporting units is based generally on discounted projected cash flows, but we also consider factors such as comparable industry price multiples. We employ cash flow projections that we believe to be reasonable under current and forecasted circumstances, the results of which form the basis for making judgments about the carrying values of the reported net assets of our reporting units. Many of our businesses closely follow changes in the industries and end markets that they serve. Accordingly, we consider estimates and judgments that affect the future cash flow projections, including principal methods of competition, such as volume, price, service, product performance and technical innovations, as well as estimates associated with cost reduction initiatives, capacity utilization and assumptions for inflation and foreign currency changes. Actual results may differ from these estimates under different assumptions or conditions.

Accrued Expenses — We make estimates and judgments in establishing accruals as required under GAAP. Summarized in the table below are the components of accrued expenses at December 31, 2017 and 2016.



	December 31,
	2017		2016
Employee benefits	$	68.9	$	69.3
Unearned revenue⁽¹⁾	100.1		117.8
Warranty	13.8		15.6
Other⁽²⁾	109.8		101.6
Total	$	292.6	$	304.3

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⁽¹⁾	Unearned revenue includes billings in excess of costs and estimated earnings on uncompleted contracts accounted for under the percentage-of-completion method of revenue recognition, customer deposits and unearned amounts on service contracts.


⁽²⁾	Other consists of various items including, among other items, accrued legal costs, interest and restructuring costs, none of which is individually material.

Legal — It is our policy to accrue for estimated losses from legal actions or claims when events exist that make the realization of the losses probable and they can be reasonably estimated. We do not discount legal obligations or reduce them by anticipated insurance recoveries.

Environmental Remediation Costs — We expense costs incurred to investigate and remediate environmental issues unless they extend the economic useful lives of related assets. We record liabilities when it is probable that an obligation has been incurred and the amounts can be reasonably estimated. Our environmental accruals cover anticipated costs, including investigation, remediation and operation and maintenance of clean-up sites. Our estimates are based primarily on investigations and remediation plans established by independent consultants, regulatory agencies and potentially responsible third parties. We generally do not discount environmental obligations or reduce them by anticipated insurance recoveries.

Risk Management Matters — We are subject to claims associated with risk management matters (e.g., product liability, predominately associated with alleged exposure to asbestos-containing materials, general liability, automobile, and workers’ compensation claims). The liabilities we record for these claims are based on a number of assumptions, including historical claims and payment experience and, with respect to asbestos claims, actuarial estimates of the future period during which additional claims are reasonably foreseeable. We also have recorded insurance recovery assets associated with the asbestos product liability matters. These assets represent amounts that we believe we are or will be entitled to recover under agreements we have with insurance companies. The assets we record for these insurance recoveries are based on a number of assumptions, including the continued solvency of the insurers, and are subject to a variety of uncertainties. In addition, we are self-insured for certain of our workers’ compensation, automobile, product, general liability, disability and health costs, and we maintain adequate accruals to cover our retained liabilities. Our accruals for self-insurance liabilities are based on claims filed and an estimate of claims incurred but not yet reported, and generally are not discounted. We consider a number of factors, including third-party actuarial valuations, when making these determinations. We maintain third-party stop-loss insurance policies to cover certain liability costs in excess of predetermined retained amounts; however, this insurance may be insufficient or unavailable (e.g., because of insurer insolvency) to protect us against potential loss exposures. The key assumptions considered in estimating the ultimate cost to settle reported claims and the estimated costs associated with incurred but not yet reported claims include, among other factors, our historical and industry claims experience, trends in health care and administrative costs, our current and future risk management programs, and historical lag studies with regard to the timing between when a claim is incurred and reported. See Note 13 for additional details.

Warranty — In the normal course of business, we issue product warranties for specific products and provide for the estimated future warranty cost in the period in which the sale is recorded. We provide for the estimate of warranty cost based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, claims costs may differ from amounts provided. In addition, due to the seasonal fluctuations at certain of our businesses, the timing of warranty provisions and the usage of warranty accruals can vary period to period. We make adjustments to initial obligations for warranties as changes in the obligations become reasonably estimable. The following is an analysis of our product warranty accrual for the periods presented:



	Year ended December 31,
	2017			2016			2015
Balance at beginning of year	$	35.8		$	36.3		$	34.5
Provisions	13.0			15.2			18.1
Usage	(15.4		)	(15.5		)	(16.0		)
Currency translation adjustment	0.5			(0.2		)	(0.3		)
Balance at end of year	33.9			35.8			36.3
Less: Current portion of warranty	13.8			15.6			17.0
Non-current portion of warranty	$	20.1		$	20.2		$	19.3

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Income Taxes — We perform reviews of our income tax positions on a continuous basis and accrue for potential uncertain tax positions in accordance with the Income Taxes Topic of the Codification. Accruals for these uncertain tax positions are classified as “Income taxes payable” and “Deferred and other income taxes” in the accompanying consolidated balance sheets based on an expectation as to the timing of when the matter will be resolved. As events change or resolutions occur, these accruals are adjusted, such as in the case of audit settlements with taxing authorities. For tax positions where it is more likely than not that a tax benefit will be sustained, we record the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority, assuming such authority has full knowledge of all relevant information. These reviews also entail analyzing the realization of deferred tax assets. When we believe that it is more likely than not that we will not realize a benefit for a deferred tax asset based on all available evidence, we establish a valuation allowance.

Employee Benefit Plans — Defined benefit plans cover a portion of our salaried and hourly employees, including certain employees in foreign countries. As discussed in Note 1, we recognize changes in the fair value of plan assets and actuarial gains and losses associated with our pension and postretirement benefit plans in earnings during the fourth quarter of each year, unless earlier remeasurement is required, as a component of net periodic benefit expense. The remaining components of pension/postretirement expense, primarily service and interest costs and expected return on plan assets, are recorded on a quarterly basis. See Note 9 for further discussion of our pension and postretirement benefits.

We derive pension expense from an actuarial calculation based on the defined benefit plans’ provisions and our assumptions regarding discount rate and rate of increase in compensation levels. We determine the discount rate for our more significant U.S. plans by matching the expected projected benefit obligation cash flows of the plans to a yield curve that is representative of long-term, high-quality (rated AA or higher) fixed income debt instruments as of the measurement date. For our other plans, we determine the discount rate based on representative bond indices. The rate of increase in compensation levels is established based on our expectations of current and foreseeable future increases in compensation. We also consult with independent actuaries in determining these assumptions.

Parent Guarantees and Bonds Associated with Balcke Dürr — As further discussed in Note 4, in connection with the sale of Balcke Dürr, we remain contingently obligated under existing parent company guarantees and bank and surety bonds which totaled approximately Euro 79.0 and Euro 79.0, respectively, at the time of sale (and Euro 76.1 and Euro 47.9, respectively, at December 31, 2017). We have accounted for our contingent obligation in accordance with the Guarantees Topic of the Codification, which required that we record a liability for the estimated fair value of the parent company guarantees and the bonds in connection with the accounting for the sale of Balcke Dürr. We estimated the fair value of the parent company guarantees and bank and surety bonds considering the probability of default by Balcke Dürr and an estimate of the amount we would be obligated to pay in the event of a default. As also discussed in Note 4, under the related purchase agreement, Balcke Dürr provided cash collateral and mutares AG provided a partial guarantee in the event any of the parent company guarantees or bonds are called. We recorded an asset for the estimated fair value of the cash collateral provided by Balcke Dürr and the partial guarantee provided by mutares AG, with the estimated fair values based on the terms and conditions and relative risk associated with each of these securities. By way of an offset to “Other expense, net,” we are reducing the liability and amortizing the asset, with the reduction of the liability generally to occur upon return of the guarantee or bond which is expected to occur at the earlier of the completion of the related underlying project milestones or the expiration of the guarantees or bonds, and the amortization of the asset to occur based on the expiration terms of each of the securities. We will continue to evaluate the adequacy of the recorded liability and will record an adjustment to the liability if we conclude that it is probable that we will be required to fund an amount greater than what is recorded. See Note 15 for further information regarding the estimated fair values of the parent company guarantees and bonds, as well as the cash collateral provided by Balcke Dürr and the partial guarantee provided by mutares AG.

New Accounting Pronouncements	12 Months Ended
New Accounting Pronouncements	Dec. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements The following is a summary of new accounting pronouncements that apply or may apply to our business. In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard contains a five-step approach that entities will apply to determine the measurement of revenue and timing of when it is recognized, including (i) identifying the contract(s) with a customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to separate performance obligations, and (v) recognizing revenue when (or as) each performance obligation is satisfied. The new standard requires a number of disclosures intended to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue, and the related cash flows. The disclosures include qualitative and quantitative information about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized from the costs to obtain or fulfill a contract. The standard is effective for interim and annual reporting periods beginning after December 15, 2017 and we plan to adopt the standard using the modified retrospective transition method. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. The more significant effects on our existing accounting policies will be associated with our power transformer business. Under the new standard, revenue for our power transformers will be recognized over time, which is a change from our current accounting policy of recognizing revenue for power transformers at a point in time. We have yet to finalize our analysis of the initial impact of adopting the new standard, but currently estimate that the adoption will result in a decrease to our retained deficit, as of January 1, 2018, of less than $6.0. We do not believe the adoption will have a material impact on our future results of operations. In February 2016, the FASB issued an amendment to existing guidance that requires lessees to recognize assets and liabilities for the rights and obligations created by long-term leases. In addition, this amendment requires new qualitative and quantitative disclosures about leasing arrangements. This standard is effective for annual periods beginning on or after December 15, 2018 for public business entities, and interim periods within those fiscal years. Early adoption is permitted, and adoption must be applied on a modified retrospective basis. We are currently evaluating the effect this new standard will have on our consolidated financial statements. In March 2016, the FASB issued an amendment to existing guidance that simplifies several aspects of the accounting for employee shared-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The standard requires that all excess tax benefits and deficiencies previously recorded in “equity” be prospectively recorded to the statement of operations within the income tax (provision) benefit. These excess tax benefits and deficiencies are primarily driven by fluctuations in our stock price between the date a share-based award is granted and the date the award vests. As such, under this standard we could experience volatility in our income tax (provision) benefit and effective income tax rate. The standard also requires excess tax benefits or deficiencies be presented as an operating activity within the statement of cash flows rather than as a financing activity. We adopted this guidance on January 1, 2017. As such, we recognized income tax benefits of $0.6 in our 2017 consolidated statement of operations and classified such amount within operating activities of our 2017 consolidated statement of cash flows. Lastly, we elected to continue estimating stock-based compensation award forfeitures in determining the amount of compensation expense to be recognized each period. In August 2016, the FASB issued an amendment to existing guidance to reduce diversity in practice in how certain cash receipts and cash payments are presented in the statement of cash flows. This amendment provides clarification on eight specific cash flow presentation issues. The issues include, but are not limited to, debt prepayment or extinguishment costs, settlement of zero-coupon debt, proceeds from the settlement of insurance claims, and cash receipts from payments on beneficial interests in securitization transactions. This amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted. We will adopt the standard, effective January 1, 2018. The adoption of this standard is not expected to have a material impact on our consolidated financial statements. In January 2017, the FASB issued an amendment to simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires that an entity recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This amendment is effective for annual reporting periods beginning after December 31, 2019, including interim periods within those annual reporting periods. Early adoption is permitted. The impact of this amendment on our consolidated financial statements will depend on the results of future goodwill impairment tests. In March 2017, the FASB issued an amendment to revise the presentation of net periodic pension and postretirement benefit cost. The amendment requires the service cost component to be presented separately from the other components of net periodic pension and postretirement benefit cost. Service cost will be presented with other employee compensation costs within operating income. The other components of net periodic pension and postretirement benefit cost, such as interest cost, expected return on plan assets, amortization of prior service cost/credits, and gains or losses, are required to be separately presented outside of operating income. This amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The amendment to the presentation in the income statement of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost shall be applied retrospectively. We will adopt the standard, effective January 1, 2018. The adoption is not expected to have a material impact on our consolidated financial statements. See Note 9 for details of our pension and postretirement expense. In August 2017, the FASB issued significant amendments to hedge accounting. The FASB’s new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The amendments can be adopted immediately in any interim or annual period (including the current period). The mandatory effective date for calendar year-end public companies is January 1, 2019. We are currently evaluating the effect this amendment will have on our consolidated financial statements. In February 2018, the FASB amended its guidance for reporting comprehensive income to reflect the potential impacts of the reduction in the corporate tax rate resulting from the Tax Cuts and Jobs Act. The amendment gives the option of reclassifying the stranded tax effects within AOCI to retained earnings during the fiscal year or quarter in which the effect of the lower tax rate is recorded. The amendment is effective for years beginning after December 15, 2018, with early adoption permitted. We expect to adopt this amendment as of January 1, 2018, with the impact not expected to be material to our retained deficit.

Discontinued Operations and Other Dispositions

12 Months Ended

Dec. 31, 2017

Discontinued Operations and Other Dispositions

Sale of Balcke Dürr Business

As indicated in Note 1, on December 30, 2016, we completed the sale of Balcke Dürr for cash proceeds of less than $0.1. In addition, we left $21.1 of cash in Balcke Dürr at the time of the sale and provided the Buyer with a non-interest bearing loan of $9.1, payable in installments due at the end of 2018 and 2019. In connection with the sale, we recorded a net loss of $78.6 to “Gain (loss) on disposition of discontinued operations, net of tax” during the fourth quarter of 2016.

The purchase agreement provides that existing parent company guarantees and bank and surety bonds, which totaled approximately Euro 79.0 and Euro 79.0, respectively, at the time of sale (and Euro 76.1 and Euro 47.9, respectively, at December 31, 2017), will remain in place through each instrument’s expiration date, with such expiration dates occurring through 2022. Balcke Dürr and the Buyer have provided us a full indemnity in the event that any of these guarantees or bonds are called. Also, at the time of sale, Balcke Dürr provided cash collateral of Euro 4.0 and mutares AG provided a guarantee of Euro 5.0 as a security for the above indemnifications (Euro 4.0 and Euro 3.0, respectively, at December 31, 2017). The net loss recorded at the time of the sale of $78.6 includes a charge of $5.1 associated with the estimated fair value of the guarantees and bonds, after consideration of the indemnifications provided in the event any of the guarantees or bonds are called. See Note 15 for further details regarding the estimated fair value of these guarantees and bonds.

The final sales price for Balcke Dürr is subject to adjustment based on cash and working capital existing at the closing date and is subject to agreement with the Buyer. Final agreement of the cash and working capital amounts with the Buyer has yet to occur. Accordingly, it is possible that the sales price and resulting loss for this divestiture may be materially adjusted in subsequent periods.

As indicated in Note 1, the results of Balcke Dürr are presented as a discontinued operation within the accompanying consolidated financial statements. Major classes of line items constituting pre-tax loss and after-tax loss of Balcke Dürr for the years ended December 31, 2016 and 2015 are shown below:



	Year ended December 31,
	2016			2015
Revenues	$	153.4		$	160.3
Costs and expenses:
Costs of products sold	144.2			143.8
Selling, general and administrative	31.4			37.9
Impairment of goodwill	—			13.7
Special charges (credits), net	(1.3		)	12.7
Other expense	(0.2		)	(0.9		)
Loss before taxes	(21.1		)	(48.7		)
Income tax benefit	4.5			9.1
Loss from discontinued operations	$	(16.6	)	$	(39.6	)

The following table presents selected financial information for Balcke Dürr that is included within discontinued operations in the consolidated statements of cash flows for the years ended December 31, 2016 and 2015:



	Year ended December 31,
	2016		2015
Non-cash items included in income (loss) from discontinued operations, net of tax
Depreciation and amortization	$	2.0	$	2.2
Impairment of goodwill	—		13.7
Capital expenditures	0.7		1.9

During 2017, we reduced the net loss associated with the sale of Balcke Dürr by $6.8. The reduction was comprised of an additional income tax benefit recorded for the sale of $9.4, partially offset by the impact of adjustments to liabilities retained in connection with the sale and certain other adjustments.

Spin-Off of SPX FLOW

As indicated in Note 1, we completed the Spin-Off of SPX FLOW on September 26, 2015. The results of SPX FLOW are presented as a discontinued operation within the accompanying consolidated statements of operations and consolidated statements of cash flows. Major classes of line items constituting pre-tax income and after-tax income of SPX FLOW for the year ended December 31, 2015 ⁽¹⁾ are shown below:



Revenues	$	1,775.1
Costs and expenses:
Costs of products sold	1,179.3
Selling, general and administrative ⁽²⁾	368.2
Intangible amortization	17.7
Impairment of intangible assets	15.0
Special charges	41.2
Other income, net	1.3
Interest expense, net	(32.6		)
Income before taxes	122.4
Income tax provision	(43.0		)
Income from discontinued operations	79.4
Less: Net loss attributable to noncontrolling interest	(0.9		)
Income from discontinued operations attributable to common shareholders	$	80.3


⁽¹⁾	Represents financial results for SPX FLOW through the date of Spin-Off (i.e., the nine months ended September 26, 2015), except for a revision to increase the income tax provision by $1.4 that was recorded during the fourth quarter of 2015.


⁽²⁾	Includes $30.8 of professional fees and other costs that were incurred in connection with the Spin-Off.

The following table presents selected financial information for SPX FLOW that is included within discontinued operations in the consolidated statement of cash flows for the year ended December 31, 2015⁽¹⁾:



Non-cash items included in income from discontinued operations, net of tax
Depreciation and amortization	$	44.3
Impairment of intangible assets	15.0
Capital expenditures	43.1


⁽¹⁾	Represents financial results for SPX FLOW through the date of Spin-Off (i.e., the nine months ended September 26, 2015).

In connection with the Spin-Off, we entered into definitive agreements with SPX FLOW that, among other matters, set forth the terms and conditions of the Spin-Off and provide a framework for our relationship with SPX FLOW after the Spin-Off, including the following:


•	Separation and Distribution Agreement;


•	Tax Matters Agreement;


•	Employee Matters Agreement; and


•	Trademark License Agreement.

Pursuant to the Separation and Distribution Agreement, the Employee Matters Agreement and the Tax Matters Agreement, SPX FLOW has agreed to indemnify us for certain liabilities, and we have agreed to indemnify SPX FLOW for certain liabilities, in each case for uncapped amounts. As of December 31, 2017, no indemnification claims have been initiated.

The financial activity governed by these agreements between SPX FLOW and us was not material to our consolidated financial results for the years ended December 31, 2017, 2016 and 2015.

We also entered into a five-year agreement with SPX FLOW to lease office space for our corporate headquarters. Annual lease costs associated with the agreement are $2.1.

Other Discontinued Operations Activity

In addition to the businesses discussed above, we recognized net losses of $1.5, $2.7 and $5.2 during 2017, 2016 and 2015, respectively, resulting from adjustments to gains/losses on dispositions of businesses discontinued prior to 2015.

Changes in estimates associated with liabilities retained in connection with a business divestiture (e.g., income taxes) may occur. As a result, it is possible that the resulting gains/losses on these and other previous divestitures may be materially adjusted in subsequent periods.

For the years ended December 31, 2017, 2016 and 2015, results of operations from our businesses reported as discontinued operations were as follows:



	Year ended December 31,
	2017			2016			2015 ⁽¹⁾
Balcke Dürr
Loss from discontinued operations	$	(2.6	)	$	(107.0	)	$	(48.7	)
Income tax benefit	9.4			11.8			9.1
Income (loss) from discontinued operations, net	6.8			(95.2		)	(39.6		)

SPX FLOW
Income from discontinued operations	—			—			122.4
Income tax provision	—			—			(43.0		)
Income from discontinued operations, net	—			—			79.4

All other
Loss from discontinued operations	(4.0		)	(3.7		)	(8.6		)
Income tax benefit	2.5			1.0			3.4
Loss from discontinued operations, net	(1.5		)	(2.7		)	(5.2		)

Total
Income (loss) from discontinued operations	(6.6		)	(110.7		)	65.1
Income tax (provision) benefit	11.9			12.8			(30.5		)
Income (loss) from discontinued operations, net	$	5.3		$	(97.9	)	$	34.6


⁽¹⁾	For SPX FLOW, represents financial results through the date of Spin-Off (i.e., the nine months ended September 26, 2015), except for a revision to increase the income tax provision by $1.4 that was recorded during the fourth quarter of 2015.

Other Dispositions

As indicated in Note 1, on March 30, 2016, we completed the sale of our dry cooling business for cash proceeds of $47.6 (net of cash transferred with the business of $3.0). In connection with the sale, we recorded a gain of $18.4. The gain includes a reclassification from “Equity” of other comprehensive income of $40.4 related to foreign currency translation.

Information on Reportable Segments

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Information on Reportable Segments

We are a global supplier of highly specialized, engineered solutions with operations in approximately 15 countries and sales in over 100 countries around the world.

We have aggregated our operating segments into the following three reportable segments: HVAC, Detection and Measurement, and Engineered Solutions. The factors considered in determining our aggregated segments are the economic similarity of the businesses, the nature of products sold or services provided, production processes, types of customers, distribution methods, and regulatory environment. In determining our segments, we apply the threshold criteria of the Segment Reporting Topic of the Codification. Operating income or loss for each of our segments is determined before considering impairment and special charges, pension and postretirement expense/income, long-term incentive compensation and other indirect corporate expenses. This is consistent with the way our CODM evaluates the results of each segment.

HVAC Reportable Segment

Our HVAC reportable segment engineers, designs, manufactures, installs and services cooling products for the HVAC and industrial markets, as well as boilers, comfort heating and ventilation products for the residential and commercial markets. The primary distribution channels for the segment’s products are direct to customers, independent manufacturing representatives, third-party distributors, and retailers. The segment serves a customer base in North America, Europe, and Asia Pacific.

Detection and Measurement Reportable Segment

Our Detection and Measurement reportable segment engineers, designs, manufactures and installs underground pipe and cable locators and inspection equipment, bus fare collection systems, communication technologies, and specialty lighting. The primary distribution channels for the segment’s products are direct to customers and third-party distributors. The segment serves a global customer base, with a strong presence in North America, Europe and Asia Pacific.

Engineered Solutions Reportable Segment

Our Engineered Solutions reportable segment engineers, designs, manufactures, installs and services transformers for the power transmission and distribution market and process cooling equipment and heat exchangers for the industrial and power generation markets. The primary distribution channels for the segment’s products are direct to customers and third-party representatives. The segment has a strong presence in North America and South Africa.

Corporate Expense

Corporate expense generally relates to the cost of our Charlotte, NC corporate headquarters, our former Asia Pacific center in Shanghai, China, which was part of the Spin-Off, and costs that were previously allocated to the FLOW Business and that do not meet the requirements to be presented within discontinued operations.

Financial data for our reportable segments for the years ended December 31, 2017, 2016 and 2015 were as follows:



	2017			2016		2015
Revenues:
HVAC segment	$	511.0		$	509.5	$	529.1
Detection and Measurement segment	260.3			226.4		232.3
Engineered Solutions segment ⁽¹⁾	654.5			736.4		797.6
Consolidated revenues	$	1,425.8		$	1,472.3	$	1,559.0
Income (loss):
HVAC segment	$	74.1		$	80.2	$	80.2
Detection and Measurement segment	63.4			45.3		46.0
Engineered Solutions segment ⁽¹⁾⁽³⁾	(12.6		)	17.3		(87.4		)
Total income for segments	124.9			142.8		38.8
Corporate expense	46.2			41.7		103.4
Pension and postretirement expense	5.4			15.4		18.6
Long-term incentive compensation expense	15.8			13.7		33.9
Impairment of intangible assets	—			30.1		—
Special charges, net	2.7			5.3		5.1
Gain on sale of dry cooling business	—			18.4		—
Consolidated operating income (loss)	$	54.8		$	55.0	$	(122.2	)

Capital expenditures:
HVAC segment	$	2.2		$	1.9	$	2.3
Detection and Measurement segment	0.8			0.7		1.2
Engineered Solutions segment	6.1			6.5		8.1
General corporate	1.9			2.6		4.4
Total capital expenditures	$	11.0		$	11.7	$	16.0
Depreciation and amortization:
HVAC segment	$	5.5		$	5.3	$	4.6
Detection and Measurement segment	4.1			3.5		2.8
Engineered Solutions segment	12.5			15.2		20.7
General corporate	3.1			2.5		8.9
Total depreciation and amortization	$	25.2		$	26.5	$	37.0



	2017		2016		2015
Identifiable assets:
HVAC segment	$	747.1	$	710.1	$	623.0
Detection and Measurement segment	277.8		244.2		256.5
Engineered Solutions segment	557.8		567.6		808.6
General corporate	457.7		390.6		371.2
Discontinued operations	—		—		120.0
Total identifiable assets	$	2,040.4	$	1,912.5	$	2,179.3
Geographic Areas:
Revenues: ⁽²⁾
United States	$	1,243.3	$	1,235.2	$	1,255.4
China	28.0		33.5		83.6
South Africa ⁽¹⁾	56.9		105.4		54.2
United Kingdom	60.8		59.1		69.6
Other	36.8		39.1		96.2
	$	1,425.8	$	1,472.3	$	1,559.0

Tangible Long-Lived Assets:
United States	$	919.6	$	897.0	$	835.9
Other	24.8		29.6		40.4
Long-lived assets of continuing operations	944.4		926.6		876.3
Long-lived assets of discontinued operations	—		—		35.8
Total tangible long-lived assets	$	944.4	$	926.6	$	912.1

___________________________________________________________________

⁽¹⁾

As further discussed in Note 13, during the second and fourth quarters of 2017, we made revisions to our estimates of expected revenues and costs on our large power projects in South Africa. As a result of these revisions, we reduced 2017 revenues by $36.9 ($13.5 and $23.4 during the second and fourth quarters of 2017, respectively) and 2017 segment income by $52.8 ($22.9 and $29.9 in the second and fourth quarters of 2017, respectively). During the third quarter of 2015, we also made revisions to our estimates of expected revenues and costs on our large power projects in South Africa. As a result of these revisions, we reduced revenue and segment income by $57.2 and $95.0, respectively, during the third quarter of 2015.


⁽²⁾	Revenues are included in the above geographic areas based on the country that recorded the customer revenue.


⁽³⁾	During the third quarter of 2017, we settled a contract that had been suspended and then ultimately canceled by a customer for cash proceeds of $9.0 and other consideration. In connection with the settlement, we recorded a gain of $10.2 during the quarter within our Engineered Solutions reportable segment.

Special Charges, Net

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Special Charges, Net

As part of our business strategy, we periodically right-size and consolidate operations to improve long-term results. Additionally, from time to time, we alter our business model to better serve customer demand, discontinue lower-margin product lines and rationalize and consolidate manufacturing capacity. Our restructuring and integration decisions are based, in part, on discounted cash flows and are designed to achieve our goals of reducing structural footprint and maximizing profitability. As a result of our strategic review process, we recorded net special charges of $2.7 in 2017, $5.3 in 2016 and $5.1 in 2015. These net special charges were primarily related to restructuring initiatives to consolidate manufacturing and sales facilities, reduce workforce, and rationalize certain product lines.

The components of the charges have been computed based on actual cash payouts, including severance and other employee benefits based on existing severance policies, local laws, and other estimated exit costs, and our estimate of the realizable value of the affected tangible and intangible assets.

Impairments of long-lived assets, including amortizable intangibles, which represent non-cash asset write-downs, typically arise from business restructuring decisions that lead to the disposition of assets no longer required in the restructured business. For these situations, we recognize a loss when the carrying amount of an asset exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Fair values for assets subject to impairment testing are determined primarily by management, taking into consideration various factors including third-party appraisals, quoted market prices and previous experience. If an asset remains in service at the decision date, the asset is written down to its fair value and the resulting net book value is depreciated over its remaining economic useful life. When we commit to a plan to sell an asset, including the initiation of a plan to locate a buyer, and it is probable that the asset will be sold within one year based on its current condition and sales price, depreciation of the asset is discontinued and the asset is classified as an asset held for sale. The asset is written down to its fair value less any selling costs.

Liabilities for exit costs, including, among other things, severance, other employee benefit costs, and operating lease obligations on idle facilities, are measured initially at their fair value and recorded when incurred.

We anticipate that the liabilities related to restructuring actions will be paid within one year from the period in which the action was initiated.

Special charges for the years ended December 31, 2017, 2016 and 2015 are described in more detail below and in the applicable sections that follow:



	Years Ended December 31,
	2017		2016		2015
Employee termination costs	$	2.5	$	1.7	$	4.5
Facility consolidation costs	—		—		0.2
Other cash costs, net	0.2		—		0.1
Non-cash asset write-downs	—		3.6		0.3
Total	$	2.7	$	5.3	$	5.1

2017 Charges:



	Employee Termination Costs		Facility Consolidation Costs		Other Cash Costs, Net		Non-Cash Asset Write-downs		Total Special Charges
HVAC segment	$	0.4	$	—	$	—	$	—	$	0.4
Detection and Measurement segment	0.3		—		—		—		0.3
Engineered Solutions segment	1.7		—		0.2		—		1.9
Corporate	0.1		—		—		—		0.1
Total	$	2.5	$	—	$	0.2	$	—	$	2.7

HVAC Segment — Charges for 2017 related primarily to severance costs associated with a restructuring action at the segment’s Cooling Americas’ business. These actions resulted in the termination of 12 employees.

Detection and Measurement Segment — Charges for 2017 related to severance costs associated with a restructuring action at the segment’s communication technologies business. The action resulted in the termination of 8 employees.

Engineered Solutions Segment — Charges for 2017 related primarily to severance costs associated with restructuring actions at the segment’s process cooling and South African businesses. These actions resulted in the termination of 111 employees.

Corporate — Charges for 2017 related to severance costs incurred in connection with the sale of Balcke Dürr. These actions resulted in the termination of 4 employees.

2016 Charges:



	Employee Termination Costs		Facility Consolidation Costs		Other Cash Costs, Net		Non-Cash Asset Write-downs		Total Special Charges
HVAC segment	$	—	$	—	$	—	$	—	$	—
Detection and Measurement segment	0.5		—		—		0.3		0.8
Engineered Solutions segment	1.2		—		—		3.3		4.5
Corporate	—		—		—		—		—
Total	$	1.7	$	—	$	—	$	3.6	$	5.3

Detection and Measurement Segment — Charges for 2016 related to severance and other costs associated with our bus fare collection business. These actions resulted in the termination of 19 employees.

Engineered Solutions Segment — Charges for 2016 related primarily to costs incurred in connection with restructuring actions at our SPX Heat Transfer (“Heat Transfer”) business in order to reduce the cost base of the business in response to reduced demand. The cost incurred for the Heat Transfer business restructuring actions included asset impairment charges of $3.3 associated with the discontinuance of a product line and outsourcing initiatives, as well as severance costs. These restructuring activities resulted in the termination of 97 employees.

2015 Charges:



	Employee Termination Costs		Facility Consolidation Costs		Other Cash Costs, Net			Non-Cash Asset Write-downs		Total Special Charges
HVAC segment	$	0.9	$	0.1	$	(0.2	)	$	0.3	$	1.1
Detection and Measurement segment	0.9		—		—			—		0.9
Engineered Solutions segment	1.6		0.1		0.3			—		2.0
Corporate	1.1		—		—			—		1.1
Total	$	4.5	$	0.2	$	0.1		$	0.3	$	5.1

HVAC Segment — Charges for 2015 related primarily to severance and other costs associated with facility consolidation efforts in Asia Pacific. These actions resulted in the termination of 44 employees.

Detection and Measurement Segment — Charges for 2015 related to severance costs associated with restructuring initiatives at the segment’s specialty lighting and bus fare collection businesses. These actions resulted in the termination of 21 employees.

Engineered Solutions Segment — Charges for 2015 related primarily to severance and other costs associated with restructuring actions at the segment’s dry cooling business. These actions resulted in the termination of 134 employees.

Corporate — Charges for 2015 related to severance costs incurred in connection with the Spin-Off.

The following is an analysis of our restructuring liabilities for the years ended December 31, 2017, 2016 and 2015:



	December 31,
	2017			2016			2015
Balance at beginning of year	$	0.9		$	1.6		$	1.7
Special charges⁽¹⁾	2.7			1.7			4.8
Utilization — cash	(3.0		)	(2.1		)	(5.1		)
Currency translation adjustment and other	—			(0.3		)	0.2
Balance at the end of year	$	0.6		$	0.9		$	1.6

___________________________________________________________________


⁽¹⁾	The years ended December 31, 2017, 2016 and 2015 excluded $0.0, $3.6 and $0.3, respectively, of non-cash charges that impacted special charges but not the restructuring liabilities.

Inventories, Net

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Inventories, Net

Inventories at December 31, 2017 and 2016 comprised the following:



	December 31,
	2017			2016
Finished goods	$	33.0		$	43.0
Work in process	56.0			50.0
Raw materials and purchased parts	66.4			64.9
Total FIFO cost	155.4			157.9
Excess of FIFO cost over LIFO inventory value	(12.4		)	(12.2		)
Total inventories	$	143.0		$	145.7

Inventories include material, labor and factory overhead costs and are reduced, when necessary, to estimated net realizable values. Certain domestic inventories are valued using the last-in, first-out (“LIFO”) method. These inventories were approximately 56% and 51% of total inventory at December 31, 2017 and 2016, respectively. Other inventories are valued using the first-in, first-out (“FIFO”) method.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill, by reportable segment, for the year ended December 31, 2017, were as follows:



	December 31, 2016			Impairments		Foreign Currency Translation			December 31, 2017
HVAC segment
Gross goodwill	$	258.5		$	—	$	5.2		$	263.7
Accumulated impairments	(144.2		)	—		(0.5		)	(144.7		)
Goodwill	114.3			—		4.7			119.0
Detection and Measurement segment
Gross goodwill	214.4			—		2.2			216.6
Accumulated impairments	(134.2		)	—		(1.8		)	(136.0		)
Goodwill	80.2			—		0.4			80.6
Engineered Solutions segment
Gross goodwill	351.4			—		6.9			358.3
Accumulated impairments	(205.5		)	—		(6.5		)	(212.0		)
Goodwill	145.9			—		0.4			146.3
Total
Gross goodwill	824.3			—		14.3			838.6
Accumulated impairments	(483.9		)	—		(8.8		)	(492.7		)
Goodwill	$	340.4		$	—	$	5.5		$	345.9

The changes in the carrying amount of goodwill, by reportable segment, for the year ended December 31, 2016, were as follows:



	December 31, 2015			Disposition of Business ⁽¹⁾			Foreign Currency Translation			December 31, 2016
HVAC segment
Gross goodwill	$	261.3		$	—		$	(2.8	)	$	258.5
Accumulated impairments	(145.2		)	—			1.0			(144.2		)
Goodwill	116.1			—			(1.8		)	114.3
Detection and Measurement segment
Gross goodwill	219.1			—			(4.7		)	214.4
Accumulated impairments	(138.0		)	—			3.8			(134.2		)
Goodwill	81.1			—			(0.9		)	80.2
Engineered Solutions segment
Gross goodwill	391.6			(36.1		)	(4.1		)	351.4
Accumulated impairments	(235.3		)	25.9			3.9			(205.5		)
Goodwill	156.3			(10.2		)	(0.2		)	145.9
Total
Gross goodwill	872.0			(36.1		)	(11.6		)	824.3
Accumulated impairments	(518.5		)	25.9			8.7			(483.9		)
Goodwill	$	353.5		$	(10.2	)	$	(2.9	)	$	340.4

⁽¹⁾Represents goodwill allocated to our dry cooling business upon its disposition.

Identifiable intangible assets were as follows:



	December 31, 2017							December 31, 2016
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Intangible assets with determinable lives:
Customer relationships	$	1.4	$	(1.4	)	$	—	$	1.4	$	(1.4	)	$	—
Technology	2.1		(0.5		)	1.6		2.1		(0.4		)	1.7
Patents	4.5		(4.5		)	—		4.5		(4.5		)	—
Other	11.7		(7.9		)	3.8		12.7		(7.4		)	5.3
	19.7		(14.3		)	5.4		20.7		(13.7		)	7.0
Trademarks with indefinite lives ⁽¹⁾	112.2		—			112.2		110.9		—			110.9
Total	$	131.9	$	(14.3	)	$	117.6	$	131.6	$	(13.7	)	$	117.9


⁽¹⁾	Changes in the gross carrying value during the year ended December 31, 2017 related to foreign currency translation.

Amortization expense was $0.6, $2.8 and $5.2 for the years ended December 31, 2017, 2016 and 2015, respectively. Estimated amortization expense over each of the next five years is $0.6 related to these intangible assets.

At December 31, 2017, the net carrying value of intangible assets with determinable lives consisted of $3.8 in the HVAC segment and $1.6 in the Engineered Solutions segment. Trademarks with indefinite lives consisted of $89.5 in the HVAC segment, $10.3 in the Detection and Measurement segment, and $12.4 in the Engineered Solutions segment.

Consistent with the requirements of the Intangible — Goodwill and Other Topic of the Codification, the fair values of our reporting units generally are estimated using discounted cash flow projections that we believe to be reasonable under current and forecasted circumstances, the results of which form the basis for making judgments about carrying values of the reported net assets of our reporting units. Other considerations are also incorporated, including comparable industry price multiples. Many of our reporting units closely follow changes in the industries and end markets that they serve. Accordingly, we consider estimates and judgments that affect the future cash flow projections, including principal methods of competition such as volume, price, service, product performance and technical innovations and estimates associated with cost improvement initiatives, capacity utilization and assumptions for inflation and foreign currency changes. Any significant change in market conditions and estimates or judgments used to determine expected future cash flows that indicate a reduction in carrying value may give rise to impairment in the period that the change becomes known.

We perform our annual goodwill impairment testing during the fourth quarter in conjunction with our annual financial planning process, with such testing based primarily on events and circumstances existing as of the end of the third quarter. In addition, we test goodwill for impairment on a more frequent basis if there are indications of potential impairment. Based on our annual goodwill impairment testing in the fourth quarter of 2017, we concluded that the estimated fair value of each of our reporting units exceeds the carrying value of their respective net assets by over 100%.

During 2016, we recorded impairment charges of $30.1 associated with Heat Transfer’s trademarks and definite-lived intangible assets. As of December 31, 2017, the carrying value of Heat Transfer’s intangible assets was $4.9.

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

Commitments and Contingencies Disclosure [Abstract]

Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

Employee Benefit Plans

Overview — Defined benefit pension plans cover a portion of our salaried and hourly paid employees, including certain employees in foreign countries. Beginning in 2001, we discontinued providing these pension benefits generally to newly hired employees. Effective January 31, 2018, we will no longer provide service credits to active participants.

We have domestic postretirement plans that provide health and life insurance benefits to certain retirees and their dependents. Beginning in 2003, we discontinued providing these postretirement benefits generally to newly hired employees.

The plan year-end date for all our plans is December 31.

Actuarial Gains and Losses - As indicated in Note 2, actuarial gains and losses related to our pension and postretirement plans are recorded to earnings during the fourth quarter of each year, unless earlier remeasurement is required. Below is a summary of transactions during the first three quarters of 2015, 2016 and 2017 that required remeasurement of our pension and postretirement plans.

On July 14, 2015, we amended the SPX U.S. Pension Plan (the “U.S. Plan”) and the Supplemental Individual Account Retirement Plan (“SIARP”) to freeze all benefits for active non-union participants. The amendment resulted in a curtailment gain of $5.1. In connection with the amendment, we remeasured the assets and liabilities of the U.S. Plan and the SIARP, which resulted in a charge to net periodic pension benefit expense of $11.4 during 2015.

In connection with the Spin-Off, participants in the U.S. Plan that were transferred to SPX FLOW became eligible to elect a lump-sum payment option in lieu of a future pension benefit under the U.S. Plan. During the second quarter of 2016, approximately 9%, or $25.2, of the projected benefit obligation of the U.S. Plan was settled as a result of lump-sum payments. In connection with these lump-sum payments, we remeasured the assets and liabilities of the U.S. Plan during the second quarter of 2016, which resulted in a charge to net periodic pension benefit expense of $1.0 during 2016.

During the second quarter of 2016, we made lump-sum payments to certain participants of the SIARP, settling approximately 22%, or $2.7, of the SIARP’s projected benefit obligation. In connection with these lump-sum payments, we remeasured the liabilities of the SIARP, which resulted in a charge to net periodic pension benefit expense of $0.8 during 2016.

In July 2014, we discontinued our sponsorship of post-65 age healthcare plans, effective January 1, 2015, which resulted in eligible retirees being transitioned to coverage in the individual healthcare insurance market that we subsidize through health reimbursement accounts. In November 2014, a lawsuit was filed challenging certain aspects of this action. In September 2017, we received a favorable ruling related to the lawsuit. During the third quarter of 2017, in connection with the favorable ruling, we reduced our unfunded liability related to postretirement benefits by $26.8. The offset for the reduction of the unfunded liability was recorded to accumulated other comprehensive income and represents unrecognized prior service credits. These unrecognized prior service credits are being recorded to net periodic postretirement benefit (income) expense over a period of approximately eight years, beginning in the fourth quarter of 2017. In addition, we remeasured our unfunded liability related to postretirement benefits, which resulted in a gain within net periodic postretirement benefit expense and a reduction of the unfunded liability of $2.6 during the third quarter of 2017.

Defined Benefit Pension Plans

Plan assets — Our investment strategy is based on the long-term growth and protection of principle while mitigating overall risk to ensure that funds are available to pay benefit obligations. The domestic plan assets are invested in a broad range of investment classes, including fixed income securities and domestic and international equities. We engage various investment managers who are regularly evaluated on long-term performance, adherence to investment guidelines and the ability to manage risk commensurate with the investment style and objective for which they were hired. We continuously monitor the value of assets by class and routinely rebalance our portfolio with the goal of meeting our target allocations.

The strategy for bonds emphasizes investment-grade corporate and government debt with maturities matching a portion of the longer duration pension liabilities. The bonds strategy also includes a high yield element, which is generally shorter in duration. The strategy for equity assets is to minimize concentrations of risk by investing primarily in companies in a diversified mix of industries worldwide, while targeting neutrality in exposure to global versus regional markets, fund types and fund managers. A small portion of U.S. plan assets (Level 3 assets) is allocated to private equity partnerships and real estate asset fund investments for diversification, providing opportunities for above market returns.

Allowable investments under the plan agreements include fixed income securities, equity securities, mutual funds, venture capital funds, real estate and cash and equivalents. In addition, investments in futures and option contracts, commodities and other derivatives are allowed in commingled fund allocations managed by professional investment managers. Investments prohibited under the plan agreements include private placements and short selling of stock. No shares of our common stock were held by our defined benefit pension plans as of December 31, 2017 or 2016.

Actual asset allocation percentages of each class of our domestic and foreign pension plan assets as of December 31, 2017 and 2016, along with the targeted asset investment allocation percentages, each of which is based on the midpoint of an allocation range, were as follows:

Domestic Pension Plans



	Actual Allocations				Mid-point of Target Allocation Range
	2017		2016		2017
Fixed income common trust funds	70	%	44	%	65	%
Commingled global fund allocation	12	%	19	%	18	%
Corporate bonds	1	%	11	%	—	%
Global equity common trust funds	7	%	12	%	5	%
U.S. Government securities	9	%	12	%	10	%
Short-term investments ⁽¹⁾	1	%	2	%	2	%
Total	100	%	100	%	100	%

___________________________________________________________________


⁽¹⁾	Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts.

Foreign Pension Plans



	Actual Allocations				Mid-point of Target Allocation Range
	2017		2016		2017
Global equity common trust funds	17	%	16	%	14	%
Global equities	—	%	8	%	—	%
Fixed income common trust funds	46	%	30	%	39	%
Commingled global fund allocation	34	%	20	%	36	%
Non-U.S. Government securities	—	%	24	%	7	%
Short-term investments ⁽¹⁾	3	%	2	%	4	%
Total	100	%	100	%	100	%

___________________________________________________________________


⁽¹⁾	Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts.

The fair values of pension plan assets at December 31, 2017, by asset class, were as follows:



	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset class:
Debt securities:
Fixed income common trust funds ^{(1) (2)}	$	270.2	$	—	$	270.2	$	—
Corporate bonds	1.6		—		1.6		—
Non-U.S. Government securities	—		—		—		—
U.S. Government securities	25.2		—		25.2		—
Equity securities:
Global equity common trust funds ⁽¹⁾ ⁽³⁾	50.6		—		50.6		—
Global equities:	—		—		—		—
Alternative investments:
Commingled global fund allocations ⁽¹⁾ ⁽⁴⁾	95.1		—		95.1		—
Other:
Short-term investments ⁽⁵⁾	9.4		9.4		—		—
Other	1.0		—		—		1.0
Total	$	453.1	$	9.4	$	442.7	$	1.0

The fair values of pension plan assets at December 31, 2016, by asset class, were as follows:



	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset class:
Debt securities:
Fixed income common trust funds ^{(1) (2)}	$	163.1	$	—	$	163.1	$	—
Corporate bonds	29.1		—		29.1		—
Non-U.S. Government securities	39.0		—		39.0		—
U.S. Government securities	31.1		—		31.1		—
Equity securities:
Global equity common trust funds ⁽¹⁾ ⁽³⁾	57.6		—		57.6		—
Global equities:	13.2		—		13.2		—
Alternative investments:
Commingled global fund allocations ⁽¹⁾ ⁽⁴⁾	80.6		—		80.6		—
Other:
Short-term investments ⁽⁵⁾	10.5		10.5		—		—
Other	1.0		—		—		1.0
Total	$	425.2	$	10.5	$	413.7	$	1.0

⁽¹⁾

Common/commingled trust funds are similar to mutual funds, with a daily net asset value per share measured by the fund sponsor and used as the basis for current transactions. These investments, however, are not registered with the U.S. Securities and Exchange Commission and participation is not open to the public. The funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.


⁽²⁾	This class represents investments in actively managed common trust funds that invest in a variety of fixed income investments, which may include corporate bonds, both U.S. and non-U.S. municipal securities, interest rate swaps, options and futures.


⁽³⁾	This class represents investments in actively managed common trust funds that invest primarily in equity securities, which may include common stocks, options and futures.


⁽⁴⁾	This class represents investments in actively managed common trust funds with investments in both equity and debt securities. The investments may include common stock, corporate bonds, U.S. and non-U.S. municipal securities, interest rate swaps, options and futures.


⁽⁵⁾	Short-term investments are valued at $1.00/unit, which approximates fair value. Amounts are generally invested in actively managed common trust funds or interest-bearing accounts.

Our domestic pension plans participate in a securities lending program through J.P. Morgan Chase Bank, National Association. Securities loaned are required to be fully collateralized by cash or other securities. The gross collateral and the related liability to return collateral amounted to $0.5 and $2.9 at December 31, 2017 and 2016, respectively, and have been included within Level 2 of the fair value hierarchy in the tables above.

The following table summarizes changes in the fair value of Level 3 assets for the years ended December 31, 2017 and 2016:



	Global Equity Common Trust Funds		Commingled Global Fund Allocations		Fixed Income Common Trust Funds		Other		Total
Balance at December 31, 2015	$	—	$	—	$	—	$	1.0	$	1.0
Transfer from Level 3 to Level 2 assets	—		—		—		—		—
Sales	—		—		—		—		—
Balance at December 31, 2016	—		—		—		1.0		1.0
Transfer from Level 3 to Level 2 assets	—		—		—		—		—
Sales	—		—		—		—		—
Balance at December 31, 2017	$	—	$	—	$	—	$	1.0	$	1.0

Employer Contributions — We currently fund U.S. pension plans in amounts equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, plus additional amounts that may be approved from time to time. During 2017, we made no contributions to our qualified domestic pension plans, and direct benefit payments of $6.3 to our non-qualified domestic pension plans. In 2018, we do not expect to make any minimum required funding contributions to our qualified domestic pension plans and expect to make direct benefit payments of $6.0 to our non-qualified domestic pension plans.

In 2017, we made contributions of $3.4 to our foreign pension plans. In 2018, we expect to make contributions of $2.5 to our foreign pension plans.

Estimated Future Benefit Payments — Following is a summary, as of December 31, 2017, of the estimated future benefit payments for our pension plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. Benefit payments are paid from plan assets or directly by us for our non-funded plans. The expected benefit payments are estimated based on the same assumptions used at December 31, 2017 to measure our obligations and include benefits attributable to estimated future employee service.

Estimated future benefit payments: (Domestic and foreign pension plans)

	Domestic Pension Benefits		Foreign Pension Benefits
2018	$	24.8	$	4.7
2019	22.6		5.5
2020	23.1		5.3
2021	23.3		5.5
2022	23.9		6.4
Subsequent five years	115.1		36.1

Obligations and Funded Status — The funded status of our pension plans is dependent upon many factors, including returns on invested assets and the level of market interest rates. Our non-funded pension plans account for $71.5 of the current underfunded status, as these plans are not required to be funded. The following tables show the domestic and foreign pension plans’ funded status and amounts recognized in our consolidated balance sheets:



	Domestic Pension Plans						Foreign Pension Plans
	2017			2016			2017			2016
Change in projected benefit obligation:
Projected benefit obligation — beginning of year	$	348.1		$	371.1		$	157.6		$	155.7
Divestiture of Balcke Dürr ⁽¹⁾	—			—			—			(6.7		)
Service cost	0.3			0.4			—			—
Interest cost	13.4			13.9			4.9			5.6
Actuarial losses	16.5			9.5			6.7			27.4
Settlements ⁽²⁾	—			(36.4		)	—			—
Curtailment losses	0.9			—			—			—
Benefits paid	(22.1		)	(10.4		)	(8.1		)	(6.4		)
Foreign exchange and other	—			—			14.1			(18.0		)
Projected benefit obligation — end of year	$	357.1		$	348.1		$	175.2		$	157.6

___________________________________________________________________


⁽¹⁾	Represents the transfer of Balcke Dürr’s pension liabilities as a result of the sale.


⁽²⁾	Amount in 2016 includes settlement payments of $27.9 in connection with lump-sum payment actions for the U.S. Plan and the SIARP.



	Domestic Pension Plans						Foreign Pension Plans
	2017			2016			2017			2016
Change in plan assets:
Fair value of plan assets — beginning of year	$	261.9		$	279.2		$	163.3		$	163.5
Actual return on plan assets	23.6			19.5			10.6			25.6
Contributions (employer and employee)	6.3			10.0			3.4			0.5
Settlements	—			(36.4		)	—			—
Benefits paid	(22.1		)	(10.4		)	(8.7		)	(6.1		)
Foreign exchange and other	—			—			14.8			(20.2		)
Fair value of plan assets — end of year	$	269.7		$	261.9		$	183.4		$	163.3
Funded status at year-end	(87.4		)	(86.2		)	8.2			5.7
Amounts recognized in the consolidated balance sheets consist of:
Other assets	$	—		$	—		$	8.4		$	6.3
Accrued expenses	(5.9		)	(5.9		)	—			—
Other long-term liabilities	(81.5		)	(80.3		)	(0.2		)	(0.6		)
Net amount recognized	$	(87.4	)	$	(86.2	)	$	8.2		$	5.7
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service credits	$	(0.6	)	$	(0.7	)	$	—		$	—

The following is information about our pension plans that had accumulated benefit obligations in excess of the fair value of their plan assets at December 31, 2017 and 2016:



	Domestic Pension Plans				Foreign Pension Plans
	2017		2016		2017		2016
Projected benefit obligation	$	357.1	$	348.1	$	0.2	$	43.8
Accumulated benefit obligation	357.1		347.9		0.2		43.8
Fair value of plan assets	269.7		261.9		—		43.2

The accumulated benefit obligation for all domestic and foreign pension plans was $357.1 and $175.2, respectively, at December 31, 2017 and $347.9 and $157.6, respectively, at December 31, 2016.

Components of Net Periodic Pension Benefit Expense (Income) — Net periodic pension benefit expense (income) for our domestic and foreign pension plans included the following components:

Domestic Pension Plans



	Year ended December 31,
	2017			2016			2015
Service cost	$	0.3		$	0.4		$	2.5
Interest cost	13.4			13.9			16.5
Expected return on plan assets	(10.1		)	(12.9		)	(18.0		)
Amortization of unrecognized prior service credits	(0.1		)	(0.2		)	(0.1		)
Recognized net actuarial losses ⁽¹⁾	3.9			3.2			18.9
Total net periodic pension benefit expense	$	7.4		$	4.4		$	19.8

___________________________________________________________________

⁽¹⁾

Consists primarily of our reported actuarial (gains) losses, the difference between actual and expected returns on plan assets, settlement gains (losses), and curtailment gains. The actuarial losses for 2016 included $1.8 related to the lump-sum payment actions that took place during the second quarter of the year. The actuarial losses for 2015 included a charge of $11.4 and a curtailment gain of $5.1 related to the freeze of all benefits for non-union participants of the U.S. Plan and the SIARP during the third quarter of the year.

Foreign Pension Plans



	Year ended December 31,
	2017			2016			2015
Service cost	$	—		$	—		$	1.3
Interest cost	4.9			5.6			7.7
Expected return on plan assets	(6.4		)	(6.6		)	(9.7		)
Recognized net actuarial losses ⁽¹⁾	3.1			8.2			3.8
Total net periodic pension benefit expense	1.6			7.2			3.1
Less: Net periodic pension expense of discontinued operations	—			(0.2		)	(2.2		)
Net periodic pension benefit expense of continuing operations	$	1.6		$	7.0		$	0.9

___________________________________________________________________


⁽¹⁾	Consists of our reported actuarial losses and the difference between actual and expected returns on plan assets.

Assumptions — Actuarial assumptions used in accounting for our domestic and foreign pension plans were as follows:



	Year ended December 31,
	2017		2016		2015
Domestic Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate	3.98	%	4.06	%	4.09	%
Rate of increase in compensation levels	3.75	%	3.75	%	3.75	%
Expected long-term rate of return on assets	4.00	%	5.00	%	5.75	%
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate	3.57	%	3.98	%	4.24	%
Rate of increase in compensation levels	3.75	%	3.75	%	3.75	%
Foreign Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate	2.97	%	3.82	%	3.68	%
Rate of increase in compensation levels	N/A		N/A		4.00	%
Expected long-term rate of return on assets	4.09	%	4.57	%	5.81	%
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate	2.76	%	2.97	%	3.82	%
Rate of increase in compensation levels	N/A		N/A		4.00	%

We review the pension assumptions annually. Pension income or expense for the year is determined using assumptions as of the beginning of the year (except for the effects of recognizing changes in the fair value of plan assets and actuarial gains and losses in the fourth quarter of each year), while the funded status is determined using assumptions as of the end of the year. We determined assumptions and established them at the respective balance sheet date using the following principles: (i) the expected long-term rate of return on plan assets is established based on forward looking long-term expectations of asset returns over the expected period to fund participant benefits based on the target investment mix of our plans; (ii) the discount rate is determined by matching the expected projected benefit obligation cash flows for each of the plans to a yield curve that is representative of long-term, high-quality (rated AA or higher) fixed income debt instruments as of the measurement date; and (iii) the rate of increase in compensation levels is established based on our expectations of current and foreseeable future increases in compensation. In addition, we consider advice from independent actuaries.

Postretirement Benefit Plans

Employer Contributions and Future Benefit Payments — Our postretirement medical plans are unfunded and have no plan assets, but are instead funded by us on a pay-as-you-go basis in the form of direct benefit payments or policy premium payments. In 2017, we made benefit payments of $9.0 to our postretirement benefit plans. Following is a summary, as of December 31, 2017, of the estimated future benefit payments for our postretirement plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. The expected benefit payments are estimated based on the same assumptions used at December 31, 2017 to measure our obligations and include benefits attributable to estimated future employee service.



	Postretirement Payments
2018	$	8.9
2019	8.2
2020	7.5
2021	6.9
2022	6.3
Subsequent five years	23.9

Obligations and Funded Status — The following tables show the postretirement plans’ funded status and amounts recognized in our consolidated balance sheets:



	Postretirement Benefits
	2017			2016
Change in accumulated postretirement benefit obligation:
Accumulated postretirement benefit obligation — beginning of year	$	115.3		$	120.8
Interest cost	3.5			4.2
Actuarial (gains) losses	(5.4		)	0.6
Benefits paid	(9.0		)	(10.3		)
Plan amendment	(26.8		)	—
Accumulated postretirement benefit obligation — end of year	$	77.6		$	115.3
Funded status at year-end	$	(77.6	)	$	(115.3	)
Amounts recognized in the consolidated balance sheets consist of:
Accrued expenses	$	(8.7	)	$	(11.7	)
Other long-term liabilities	(68.9		)	(103.6		)
Net amount recognized	$	(77.6	)	$	(115.3	)
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service credits	$	(31.0	)	$	(5.9	)

The net periodic postretirement benefit expense (income) included the following components:



	Year ended December 31,
	2017			2016			2015
Service cost	$	—		$	—		$	0.1
Interest cost	3.5			4.2			4.4
Amortization of unrecognized prior service credits	(1.7		)	(0.8		)	(0.8		)
Plan amendment	(2.6		)	—			(1.8		)
Recognized net actuarial (gains) losses	(2.8		)	0.6			(4.0		)
Net periodic postretirement benefit expense (income)	$	(3.6	)	$	4.0		$	(2.1	)

Actuarial assumptions used in accounting for our domestic postretirement plans were as follows:



	Year ended December 31,
	2017		2016		2015
Assumed health care cost trend rates:
Health care cost trend rate for next year	7.25	%	7.50	%	6.60	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2027		2027		2024
Discount rate used in determining net periodic postretirement benefit expense	3.60	%	3.88	%	3.53	%
Discount rate used in determining year-end postretirement benefit obligation	3.34	%	3.69	%	3.88	%

The accumulated postretirement benefit obligation was determined using the terms and conditions of our various plans, together with relevant actuarial assumptions and health care cost trend rates. It is our policy to review the postretirement assumptions annually. The assumptions are determined by us and are established based on our prior experience and our expectations that future health care cost trend rates will decline. In addition, we consider advice from independent actuaries.

Assumed health care cost trend rates can have a significant effect on the amounts reported for the postretirement benefit plans. Including the effects of recognizing actuarial gains and losses into earnings, a one percentage point increase in the assumed health care cost trend rate would have increased our estimated 2017 postretirement expense by $1.4, and a one percentage point decrease in the assumed health care cost trend rate would have decreased our estimated 2017 postretirement expense by $1.6.

Defined Contribution Retirement Plans

We maintain a defined contribution retirement plan (the “DC Plan”) pursuant to Section 401(k) of the U.S. Internal Revenue Code. Under the DC Plan, eligible U.S. employees may voluntarily contribute up to 50% of their compensation into the DC Plan and we match a portion of participating employees’ contributions. Our matching contributions are primarily made in newly issued shares of company common stock and are issued at the prevailing market price. The matching contributions vest with the employee immediately upon the date of the match and there are no restrictions on the resale of common stock held by employees.

Under the DC Plan, we contributed 0.334, 0.605 and 0.434 shares of our common stock to employee accounts in 2017, 2016 and 2015, respectively. Compensation expense is recorded based on the market value of shares as the shares are contributed to employee accounts. We recorded $8.7 in 2017, $8.8 in 2016 and $10.2 in 2015 as compensation expense related to the matching contribution.

Certain collectively-bargained employees participate in the DC Plan with company contributions not being made in company common stock, although company common stock is offered as an investment option under these plans.

We also maintain a Supplemental Retirement Savings Plan (“SRSP”), which permits certain members of our senior management and executive groups to defer eligible compensation in excess of the amounts allowed under the DC Plan. We match a portion of participating employees’ deferrals to the extent allowable under the SRSP provisions. The matching contributions vest with the participant immediately. Our funding of the participants’ deferrals and our matching contributions are held in certain mutual funds (as allowed under the SRSP), as directed by the participant. The fair values of these assets, which totaled $21.2 and $19.1 at December 31, 2017 and 2016, respectively, are based on quoted prices in active markets for identical assets (Level 1). In addition, the assets under the SRSP are available to the general creditors in the event of our bankruptcy and, thus, are maintained on our consolidated balance sheets within other non-current assets, with a corresponding amount in other long-term liabilities for our obligation to the participants. Lastly, these assets are accounted for as trading securities. During 2017, 2016 and 2015, we recorded compensation expense of $0.2, $0.7 and $0.7, respectively, relating to our matching contributions to the SRSP.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income (loss) from continuing operations before income taxes and the (provision for) benefit from income taxes consisted of the following:



	Year ended December 31,
	2017			2016			2015
Income (loss) from continuing operations:
United States	$	68.8		$	14.0		$	(14.2	)
Foreign	(32.7		)	25.4			(140.1		)
	$	36.1		$	39.4		$	(154.3	)
(Provision for) benefit from income taxes:
Current:
United States	$	30.4		$	(4.3	)	$	10.9
Foreign	(3.5		)	(4.8		)	(3.3		)
Total current	26.9			(9.1		)	7.6
Deferred and other:
United States	23.5			0.2			(10.7		)
Foreign	(2.5		)	(0.2		)	5.8
Total deferred and other	21.0			—			(4.9		)
Total (provision) benefit	$	47.9		$	(9.1	)	$	2.7

The reconciliation of income tax computed at the U.S. federal statutory tax rate to our effective income tax rate was as follows:



	Year ended December 31,
	2017		2016		2015
Tax at U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of U.S. federal benefit	4.4	%	5.0	%	(0.1	)%
U.S. credits and exemptions	(8.5	)%	(12.9	)%	1.5	%
Foreign earnings/losses taxed at lower rates	(14.9	)%	(5.9	)%	(9.0	)%
Audit settlements with taxing authorities	(0.1	)%	—	%	0.7	%
Adjustments to uncertain tax positions	(9.8	)%	(1.9	)%	(5.4	)%
Changes in valuation allowance	54.4	%	17.4	%	(18.8	)%
Tax on distributions of foreign earnings	—	%	0.7	%	(0.2	)%
Worthless stock deductions and other basis adjustments	(226.3	)%	—	%	(2.4	)%
Disposition of dry cooling business	—	%	(15.6	)%	—	%
U.S. tax reform	32.6	%	—	%	—	%
Other	0.5	%	1.3	%	0.4	%
	(132.7	)%	23.1	%	1.7	%

Significant components of our deferred tax assets and liabilities were as follows:



	As of December 31,
	2017			2016
Deferred tax assets:
NOL and credit carryforwards	$	146.0		$	78.2
Pension, other postretirement and postemployment benefits	41.2			77.2
Payroll and compensation	18.2			22.8
Legal, environmental and self-insurance accruals	25.3			35.1
Working capital accruals	11.5			16.4
Other	17.6			20.7
Total deferred tax assets	259.8			250.4
Valuation allowance	(110.9		)	(75.8		)
Net deferred tax assets	148.9			174.6
Deferred tax liabilities:
Intangible assets recorded in acquisitions	53.9			68.3
Basis difference in affiliates	3.7			10.6
Accelerated depreciation	28.8			40.6
Other	12.9			6.6
Total deferred tax liabilities	99.3			126.1
	$	49.6		$	48.5

The Tax Cuts and Jobs Act

As indicated in Note 1, on December 22, 2017, the Tax Cuts and Jobs Act was enacted which significantly changes U.S. income tax law for businesses and individuals. The Act introduces changes that impact U.S. corporate tax rates (e.g., a reduction in the top tax rate from 35% to 21%), business-related exclusions, and deductions and credits. In addition, the Act will have tax consequences for many entities that operate internationally, including the timing and the amount of tax to be paid on undistributed foreign earnings.

As a result of the reduction in the federal corporate income tax rate and other legislative changes in the Act, we have revalued our net U.S. federal deferred tax assets, resulting in a charge of $11.8. Further, we considered the transition tax required for the mandatory one-time “deemed repatriation” and our preliminary analysis indicates we will not have a liability in this regard.

Given the significance and number of changes required by the Act and the historical complexity of our global tax structure, we have yet to complete our analysis of the impact of the Act on our consolidated financial statements. As a result, the above net charges are based on current estimates (i.e., provisional amounts). In addition, other adjustments may be necessary to our income tax accounts to properly reflect the impact of certain provisions of the Act that have not been contemplated. For example, the potential impact of the Act on our liability for uncertain tax positions and various state tax implications of the Act have not been considered in our provisional amounts. As more guidance is issued and we better understand the full impact of the Act on our tax positions, we will finalize our analysis, with any resulting adjustments, which could be material, reflected in our 2018 consolidated financial statements.

General Matters

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We periodically assess deferred tax assets to determine if they are likely to be realized and the adequacy of deferred tax liabilities, incorporating the results of local, state, federal and foreign tax audits in our estimates and judgments.

At December 31, 2017, we had the following tax loss carryforwards available: federal, state, and foreign tax loss carryforwards of approximately $27.0, $659.0, and $293.0, respectively. We also had federal and state tax credit carryforwards of $32.4. Of these amounts, $6.8 expire in 2018 and $714.0 expire at various times between 2018 and 2036. The remaining carryforwards have no expiration date.

Realization of deferred tax assets, including those associated with net operating loss and credit carryforwards, is dependent upon generating sufficient taxable income in the appropriate tax jurisdiction. We believe that it is more likely than not that we may not realize the benefit of certain of these deferred tax assets and, accordingly, have established a valuation allowance against these deferred tax assets. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that the deferred tax assets will be realized through future taxable earnings or tax planning strategies. However, deferred tax assets could be reduced in the near term if our estimates of taxable income are significantly reduced or tax planning strategies are no longer viable. The valuation allowance increased by $35.1 in 2017 and increased by $4.9 in 2016. The 2017 increase was driven by the losses generated during the year for our large power projects in South Africa and the impact of the Act on the realization of certain deferred tax assets.

The amount of income tax that we pay annually is dependent on various factors, including the timing of certain deductions. These deductions can vary from year to year, and, consequently, the amount of income taxes paid in future years will vary from the amounts paid in prior years.

Unrecognized Tax Benefits

As of December 31, 2017, we had gross and net unrecognized tax benefits of $31.3 and $20.6, respectively. Of these net unrecognized tax benefits, $15.7 would impact our effective tax rate from continuing operations if recognized. Similarly, at December 31, 2016 and 2015, we had gross unrecognized tax benefits of $37.9 (net unrecognized tax benefits of $25.2) and $48.8 (net unrecognized tax benefits of $30.1), respectively.

We classify interest and penalties related to unrecognized tax benefits as a component of our income tax (provision) benefit. As of December 31, 2017, gross accrued interest totaled $3.9 (net accrued interest of $2.5), while the related amounts as of December 31, 2016 and 2015 were $3.7 (net accrued interest of $2.4) and $5.4 (net accrued interest of $4.5), respectively. Our income tax (provision) benefit for the years ended December 31, 2017, 2016 and 2015 included gross interest income (expense) of $(0.2), $1.8 and $0.2, respectively, resulting from adjustments to our liability for uncertain tax positions. As of December 31, 2017, 2016 and 2015, we had no accrual for penalties included in our unrecognized tax benefits.

Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by approximately $3.0 to $15.0. The previously unrecognized tax benefits relate to a variety of tax matters including deemed income inclusions, transfer pricing and various state matters.

The aggregate changes in the balance of unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015 were as follows:



	Year ended December 31,
	2017			2016			2015
Unrecognized tax benefit — opening balance	$	37.9		$	48.8		$	63.3
Gross increases — tax positions in prior period	1.6			3.6			14.1
Gross decreases — tax positions in prior period	(0.3		)	(9.3		)	(7.6		)
Gross increases — tax positions in current period	0.3			0.7			11.3
Settlements	(1.3		)	—			—
Lapse of statute of limitations	(7.1		)	(5.9		)	(4.4		)
Gross decreases — Spin-Off	—			—			(26.7		)
Change due to foreign currency exchange rates	0.2			—			(1.2		)
Unrecognized tax benefit — ending balance	$	31.3		$	37.9		$	48.8

Other Tax Matters

During 2017, our income tax benefit was impacted most significantly by (i) a tax benefit of $77.6 related to a worthless stock deduction in the U.S. associated with our investment in a South African subsidiary and (ii) $4.9 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions, partially offset by (iii) $11.8 of net tax charges associated with the impact of the new U.S. tax regulations described more fully above and (iv) $68.2 of foreign losses generated during the period for which no foreign tax benefit was recognized as future realization of any such foreign tax benefit is considered unlikely.

During 2016, our income tax provision was impacted most significantly by (i) the $0.3 of income taxes provided in connection with the $18.4 gain that was recorded on the sale of the dry cooling business, (ii) $13.7 of foreign losses generated during the period for which no tax benefit was recognized as future realization of any such tax benefit is considered unlikely, and (iii) $2.4 of tax benefits related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions.

During 2015, our income tax benefit was impacted most significantly by (i) the effects of approximately $139.0 of foreign losses generated during the year for which no tax benefit was recognized, as future realization of any such tax benefit is considered unlikely, (ii) $3.7 of foreign taxes incurred during the year related to the Spin-Off and the reorganization actions undertaken to facilitate the Spin-Off, and (iii) $3.4 of taxes related to various audit settlements, statute expirations, and other adjustments to liabilities for uncertain tax positions.

We perform reviews of our income tax positions on a continuous basis and accrue for potential uncertain positions when we determine that an uncertain position meets the criteria of the Income Taxes Topic of the Codification. Accruals for these uncertain tax positions are recorded in “Income taxes payable” and “Deferred and other income taxes” in the accompanying consolidated balance sheets based on the expectation as to the timing of when the matters will be resolved. As events change and resolutions occur, these accruals are adjusted, such as in the case of audit settlements with taxing authorities.

We have filed our federal income tax returns for the 2014, 2015, and 2016 tax years and those returns are subject to examination. With regard to all open tax years, we believe any contingencies are adequately provided for.

State income tax returns generally are subject to examination for a period of three to five years after filing the respective tax returns. The impact on such tax returns of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination. We believe any uncertain tax positions related to these examinations have been adequately provided for.

We have various foreign income tax returns under examination. The most significant of these are in Germany for the 2010 through 2014 tax years. We believe that any uncertain tax positions related to these examinations have been adequately provided for.

An unfavorable resolution of one or more of the above matters could have a material adverse effect on our results of operations or cash flows in the quarter and year in which an adjustment is recorded or the tax is due or paid. As audits and examinations are still in process, the timing of the ultimate resolution and any payments that may be required for the above matters cannot be determined at this time.

Indebtedness

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Indebtedness

The following summarizes our debt activity (both current and non-current) for the year ended December 31, 2017:



	December 31, 2016		Borrowings		Repayments			Other ⁽⁵⁾			December 31, 2017
Revolving loans	$	—	$	54.6	$	(54.6	)	$	—		$	—
Term loans ⁽¹⁾⁽²⁾	339.6		350.0		(341.2		)	(0.7		)	347.7
Trade receivables financing arrangement ⁽³⁾	—		74.0		(74.0		)	—			—
Other indebtedness ⁽⁴⁾	16.6		38.7		(48.8		)	2.6			9.1
Total debt	356.2		$	517.3	$	(518.6	)	$	1.9		356.8
Less: short-term debt	14.8										7.0
Less: current maturities of long-term debt	17.9										0.5
Total long-term debt	$	323.5									$	349.3

_____________________________________________________________


⁽¹⁾	As noted below, we amended our senior credit agreement on December 19, 2017 and proceeds of $350.0 were made available by way of a new term loan facility, with $328.1 utilized to repay, in full, amounts outstanding under the then-existing term loan facility.


⁽²⁾	The new term loan is repayable in quarterly installments of 1.25% of the initial loan amount of $350.0, beginning in the first quarter of 2019, with the remaining balance payable in full on December 19, 2022. Balances are net of unamortized debt issuance costs of $2.3 and $1.6 at December 31, 2017 and December 31, 2016, respectively.


⁽³⁾	Under this arrangement, we can borrow, on a continuous basis, up to $50.0, as available. At December 31, 2017, we had $33.3 of available borrowing capacity under this facility.

⁽⁴⁾

Primarily includes capital lease obligations of $2.1 and $1.7, balances under purchase card programs of $2.8 and $3.9, borrowings under a line of credit in South Africa of $0.0 and $10.2, and borrowings under a line of credit in China of $4.1 and $0.0, at December 31, 2017 and 2016, respectively. The purchase card program allows for payment beyond the normal payment terms for goods and services acquired under the program. As this arrangement extends the payment of these purchases beyond their normal payment terms through third-party lending institutions, we have classified these amounts as short-term debt.


⁽⁵⁾	“Other” primarily includes debt assumed, foreign currency translation on any debt instruments denominated in currencies other than the U.S. dollar, debt issuance costs incurred in connection with the new term loan, and the impact of amortization of debt issuance costs associated with the term loan.

Maturities of long-term debt payable during each of the five years subsequent to December 31, 2017 are $0.5, $18.0, $18.0, $17.9 and $297.7, respectively.

Senior Credit Facilities

On December 19, 2017, we amended our senior credit agreement (the “Credit Agreement”) to, among other things, extend the term of each facility under the Credit Agreement (with the aggregate of each facility comprising the “Senior Credit Facilities”) and provide for committed senior secured financing with an aggregate amount of $900.0, consisting of the following (each with the final maturity of December 19, 2022):


•	A new term loan facility in an aggregate principle amount of $350.0;


•	A domestic revolving credit facility, available for loans and letters of credit, in an aggregate principal amount up to $200.0;


•	A global revolving credit facility, available for loans in Euros, GBP and other currencies, in an aggregate principal amount up to the equivalent of $150.0;


•	A participation foreign credit instrument facility, available for performance letters of credit and guarantees, in an aggregate principal amount up to the equivalent of $145.0 (previously $175.0); and


•	A bilateral foreign credit instrument facility, available for performance letters of credit and guarantees, in an aggregate principal amount up to the equivalent of $55.0 (previously $125.0).

The above amendment of our Credit Agreement also:

•

Adjusts the maximum aggregate amount of additional commitments we may seek, without consent of existing lenders, to add an incremental term loan facility and/or increase the commitments in respect of the domestic revolving credit facility, the global revolving credit facility, the participation foreign credit instrument facility, and/or the bilateral foreign credit instrument facility, to (i) the greater of (A) $200.0 or (B) our Consolidated EBITDA for the preceding four fiscal quarters, plus (ii) an amount equal to all voluntary prepayments of the term loan facility and the voluntary prepayments accompanied by permanent commitment reductions of revolving credit facilities and foreign credit instrument facilities, plus (iii) an unlimited amount so long as, immediately after giving effect thereto, our Consolidated Senior Secured Leverage Ratio for the prior four fiscal quarters does not exceed 2.75 to 1.00 (with the provisions described in clauses (ii) and (iii) being essentially unchanged from the previous agreement);


•	Permits unlimited investments, capital stock repurchases and dividends, and prepayments of subordinated debt if our Consolidated Leverage Ratio, after giving pro forma effect to such payments, is less than 2.75 to 1.00 (2.50 to 1.00 prior to the amendment);


•	Increases the Consolidated Leverage Ratio that we are required to maintain as of the last day of any fiscal quarter to not more than 3.50 to 1.00 (or 4.00 to 1.00 for the four fiscal quarters after certain permitted acquisitions) and included certain add-backs in the definition of consolidated EBITDA used in determining such ratio; and


•	Adjusts per annum fees charged and the interest rate margins applicable to Eurodollar and alternate base rate loans, in each case based on the Consolidated Leverage Ratio, to be as follows:



Consolidated Leverage Ratio	Domestic Revolving Commitment Fee		Global Revolving Commitment Fee		Letter of Credit Fee		Foreign Credit Commitment Fee		Foreign Credit Instrument Fee		LIBOR Rate Loans		ABR Loans
Greater than or equal to 3.00 to 1.0	0.350	%	0.350	%	2.000	%	0.350	%	1.250	%	2.000	%	1.000	%
Between 2.25 to 1.0 and 3.00 to 1.0	0.300	%	0.300	%	1.750	%	0.300	%	1.000	%	1.750	%	0.750	%
Between 1.50 to 1.0 and 2.25 to 1.0	0.275	%	0.275	%	1.500	%	0.275	%	0.875	%	1.500	%	0.500	%
Less than 1.50 to 1.0	0.250	%	0.250	%	1.375	%	0.250	%	0.800	%	1.375	%	0.375	%

We are the borrower under each of the above facilities, and certain of our foreign subsidiaries are (and we may designate other foreign subsidiaries to be) borrowers under the global revolving credit facility and the foreign credit instrument facilities. All borrowings and other extensions of credit under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of defaults and accuracy in material respects of representations and warranties.

The letters of credit under the domestic revolving credit facility are stand-by letters of credit requested by SPX on behalf of any of our subsidiaries or certain joint ventures. The foreign credit instrument facility is used to issue foreign credit instruments, including bank undertakings to support our foreign operations.

The interest rates applicable to loans under the Credit Agreement are, at our option, equal to either (i) an alternate base rate (the highest of (a) the federal funds effective rate plus 0.5%, (b) the prime rate of Bank of America, N.A., and (c) the one-month LIBOR rate plus 1.0%) or (ii) a reserve-adjusted LIBOR rate for dollars (Eurodollars) plus, in each case, an applicable margin percentage as previously discussed, which varies based on our Consolidated Leverage Ratio (as defined in the Credit Agreement generally as the ratio of consolidated total debt (excluding the face amount of undrawn letters of credit, bank undertakings and analogous instruments and net of cash and cash equivalents not to exceed $150.0) at the date of determination to consolidated adjusted EBITDA for the four fiscal quarters ended most recently before such date). We may elect interest periods of one, two, three or six months (and, if consented to by all relevant lenders, twelve months) for Eurodollar borrowings.

The weighted-average interest rate of outstanding borrowings under our Senior Credit Facilities was approximately 3.2% at December 31, 2017.

The fees and bilateral foreign credit commitments are as specified above for foreign credit commitments unless otherwise agreed with the bilateral foreign issuing lender. We also pay fronting fees on the outstanding amounts of letters of credit and foreign credit instruments (in the participation facility) at the rates of 0.125% per annum and 0.25% per annum, respectively.

The Credit Agreement requires mandatory prepayments in amounts equal to the net proceeds from the sale or other disposition of, including from any casualty to, or governmental taking of, property in excess of specified values (other than in the ordinary course of business and subject to other exceptions) by SPX or our subsidiaries. Mandatory prepayments will be applied to repay, first, amounts outstanding under any term loans and, then, amounts (or cash collateralize letters of credit) outstanding under the global revolving credit facility and the domestic revolving credit facility (without reducing the commitments thereunder). No prepayment is required generally to the extent the net proceeds are reinvested (or committed to be reinvested) in permitted acquisitions, permitted investments or assets to be used in our business within 360 days (and if committed to be reinvested, actually reinvested within 180 days after the end of such 360-day period) of the receipt of such proceeds.

We may voluntarily prepay loans under the Credit Agreement, in whole or in part, without premium or penalty. Any voluntary prepayment of loans will be subject to reimbursement of the lenders’ breakage costs in the case of a prepayment of Eurodollar rate borrowings other than on the last day of the relevant interest period. Indebtedness under the Credit Agreement is guaranteed by:


•	Each existing and subsequently acquired or organized domestic material subsidiary with specified exceptions; and


•	SPX with respect to the obligations of our foreign borrower subsidiaries under the global revolving credit facility, the participation foreign credit instrument facility and the bilateral foreign credit instrument facility.

Indebtedness under the Credit Agreement is secured by a first priority pledge and security interest in 100% of the capital stock of our domestic subsidiaries (with certain exceptions) held by SPX or our domestic subsidiary guarantors and 65% of the capital stock of our material first-tier foreign subsidiaries (with certain exceptions). If SPX obtains a corporate credit rating from Moody’s and S&P and such corporate credit rating is less than “Ba2” (or not rated) by Moody’s and less than “BB” (or not rated) by S&P, then SPX and our domestic subsidiary guarantors are required to grant security interests, mortgages and other liens on substantially all of their assets. If SPX’s corporate credit rating is “Baa3” or better by Moody’s or “BBB-” or better by S&P and no defaults then exist, all collateral security is to be released and the indebtedness under the Credit Agreement would be unsecured.

The Credit Agreement requires that SPX maintain:


•	A Consolidated Interest Coverage Ratio (defined in the Credit Agreement generally as the ratio of consolidated adjusted EBITDA for the four fiscal quarters ended on such date to consolidated cash interest expense for such period) as of the last day of any fiscal quarter of at least 3.50 to 1.00; and


•	As previously discussed, a Consolidated Leverage Ratio as of the last day of any fiscal quarter of not more than 3.50 to 1.00 (or 4.00 to 1.00 for the four fiscal quarters after certain permitted acquisitions).

The Credit Agreement also contains covenants that, among other things, restrict our ability to incur additional indebtedness, grant liens, make investments, loans, guarantees, or advances, make restricted junior payments, including dividends, redemptions of capital stock, and voluntary prepayments or repurchase of certain other indebtedness, engage in mergers, acquisitions or sales of assets, enter into sale and leaseback transactions, or engage in certain transactions with affiliates, and otherwise restrict certain corporate activities. The Credit Agreement contains customary representations, warranties, affirmative covenants and events of default.

As previously discussed, we are permitted under the Credit Agreement to repurchase our capital stock and pay cash dividends in an unlimited amount if our Consolidated Leverage Ratio is (after giving pro forma effect to such payments) less than 2.75 to 1.00. If our Consolidated Leverage Ratio is (after giving pro forma effect to such payments) greater than or equal to 2.75 to 1.00, the aggregate amount of such repurchases and dividend declarations cannot exceed (A) $50.0 in any fiscal year plus (B) an additional amount for all such repurchases and dividend declarations made after the Effective Date equal to the sum of (i) $100.0 plus (ii) a positive amount equal to 50% of cumulative Consolidated Net Income (as defined in the Credit Agreement generally as consolidated net income subject to certain adjustments solely for the purposes of determining this basket) during the period from the Effective Date to the end of the most recent fiscal quarter preceding the date of such repurchase or dividend declaration for which financial statements have been (or were required to be) delivered (or, in case such Consolidated Net Income is a deficit, minus 100% of such deficit) plus (iii) certain other amounts.

At December 31, 2017, we had $314.3 of available borrowing capacity under our revolving credit facilities after giving effect to $35.7 reserved for outstanding letters of credit. In addition, at December 31, 2017, we had $16.9 of available issuance capacity under our foreign credit instrument facilities after giving effect to $183.1 reserved for outstanding letters of credit.

At December 31, 2017, we were in compliance with all covenants of our Credit Agreement.

In connection with the December 2017 amendment of our Credit Agreement, we recorded a charge of $0.9 to “Loss on amendment/refinancing of senior credit agreement” related to the write-off of unamortized deferred financing costs. During 2016, we reduced the issuance capacity of our foreign credit instrument facilities resulting in a charge of $1.3 to “Loss on amendment/refinancing of senior credit agreement” associated with the write-off of unamortized deferred financing costs. During 2015, we recorded a charge of $1.4 to “Loss on amendment/refinancing of senior credit agreement” related to the refinancing of our senior credit agreement in connection with the Spin-Off, with the charge resulting from the write-off of unamortized deferred financing costs.

Other Borrowings and Financing Activities

Certain of our businesses purchase goods and services under purchase card programs allowing for payment beyond their normal payment terms. As of December 31, 2017 and 2016, the participating businesses had $2.8 and $3.9, respectively, outstanding under these arrangements.

We are party to a trade receivables financing agreement, whereby we can borrow, on a continuous basis, up to $50.0. Availability of funds may fluctuate over time given changes in eligible receivable balances, but will not exceed the $50.0 program limit. The facility contains representations, warranties, covenants and indemnities customary for facilities of this type. The facility does not contain any covenants that we view as materially constraining to the activities of our business.

In addition, we maintain line of credit facilities in China, India, and South Africa available to fund operations in these regions, when necessary. At December 31, 2017, the aggregate amount of borrowing capacity under these facilities was $20.2, while the aggregate borrowings outstanding were $4.2.

Derivative Financial Instruments	12 Months Ended
Derivative Financial Instruments	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Interest Rate Swaps During the second quarter of 2016, we entered into interest rate swap agreements (“Swaps”) to hedge the interest rate risk on our then existing variable rate term loan. As a result of amending our Credit Agreement on December 19, 2017, these Swaps no longer qualified for hedge accounting, resulting in a gain (recorded to “Other expense, net”) in 2017 of $2.7. As of December 31, 2017, the aggregate notional amount of these Swaps was $162.6. In addition, we have recorded a current asset of $3.3 as of December 31, 2017 to recognize the fair value of these Swaps. As of December 31, 2016, the unrealized gain, net of tax, recorded in accumulated other comprehensive income (“AOCI”) was $0.7 Currency Forward Contracts and Currency Forward Embedded Derivatives We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency exchange rates. Our objective is to preserve the economic value of non-functional currency-denominated cash flows and to minimize the impact of changes as a result of currency fluctuations. Our principal currency exposures relate to the South African Rand, GBP, and Euro. From time to time, we enter into forward contracts to manage the exposure on contracts with forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities denominated in currencies other than the functional currency of certain subsidiaries (“FX forward contracts”). In addition, some of our contracts contain currency forward embedded derivatives (“FX embedded derivatives”), because the currency of exchange is not “clearly and closely” related to the functional currency of either party to the transaction. Certain of our FX forward contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings, but are included in AOCI. These changes in fair value are reclassified into earnings as a component of revenues or cost of products sold, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of “Other expense, net” in the period in which the transaction is no longer considered probable of occurring. To the extent a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period in which it occurs. We had FX forward contracts with an aggregate notional amount of $9.0 and $8.8 outstanding as of December 31, 2017 and 2016, respectively, with all of the $9.0 scheduled to mature in 2018. We also had FX embedded derivatives with an aggregate notional amount of $1.1 and $0.9 at December 31, 2017 and 2016, respectively, with all of the $1.1 scheduled to mature in 2018. There were no unrealized gains or losses recorded in AOCI related to FX forward contracts as of December 31, 2017 and 2016. The net loss recorded in “Other expense, net” related to FX forward contracts and embedded derivatives totaled $0.4 in 2017, $6.3 in 2016 and $1.2 in 2015. Commodity Contracts From time to time, we enter into commodity contracts to manage the exposure on forecasted purchases of commodity raw materials. The outstanding notional amounts of commodity contracts were 3.6 and 4.1 pounds of copper at December 31, 2017 and 2016, respectively. We designate and account for these contracts as cash flow hedges and, to the extent these commodity contracts are effective in offsetting the variability of the forecasted purchases, the change in fair value is included in AOCI. We reclassify AOCI associated with our commodity contracts to cost of products sold when the forecasted transaction impacts earnings. As of December 31, 2017 and 2016, the fair values of these contracts were $1.1 (current asset) and $1.1 (current asset), respectively. The unrealized gains, net of taxes, recorded in AOCI were $0.8 and $0.8 as of December 31, 2017 and 2016, respectively. We anticipate reclassifying the unrealized gain as of December 31, 2017 to income over the next 12 months. Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist of cash and equivalents, trade accounts receivable, and interest rate swap, foreign currency forward, and commodity contracts. These financial instruments, other than trade accounts receivable, are placed with high-quality financial institutions throughout the world. We periodically evaluate the credit standing of these financial institutions. We maintain cash levels in bank accounts that, at times, may exceed federally-insured limits. We have not experienced, and believe we are not exposed to significant risk of, loss in these accounts. We have credit loss exposure in the event of nonperformance by counterparties to the above financial instruments, but have no other off-balance-sheet credit risk of accounting loss. We anticipate, however, that counterparties will be able to fully satisfy their obligations under the contracts. We do not obtain collateral or other security to support financial instruments subject to credit risk, but we do monitor the credit standing of counterparties. Concentrations of credit risk arising from trade accounts receivable are due to selling to customers in a particular industry. We mitigate our credit risks by performing ongoing credit evaluations of our customers’ financial conditions and obtaining collateral, advance payments, or other security when appropriate. No one customer, or group of customers that to our knowledge are under common control, accounted for more than 10% of our revenues for any period presented.

Commitments, Contingent Liabilities and Other Matters

12 Months Ended

Dec. 31, 2017

Commitments, Contingent Liabilities and Other Matters

Leases

We lease certain manufacturing facilities, offices, sales and service locations, machinery and equipment, vehicles and office equipment under various leasing programs accounted for as operating and capital leases, some of which include scheduled rent increases stated in the lease agreement. We do not have any significant leases that require rental payments based on contingent events nor have we received any significant lease incentive payments.

Operating Leases

The future minimum rental payments under operating leases with remaining non-cancelable terms in excess of one year are:



Year Ending December 31,
2018	$	8.3
2019	7.9
2020	6.5
2021	4.6
2022	4.4
Thereafter	6.6
Total minimum payments	$	38.3

Total operating lease expense, inclusive of rent based on scheduled rent increases and rent holidays recognized on a straight-line basis, was $12.9 in 2017, $13.2 in 2016 and $13.4 in 2015.

General

Numerous claims, complaints and proceedings arising in the ordinary course of business have been asserted or are pending against us or certain of our subsidiaries (collectively, “claims”). These claims relate to litigation matters (e.g., class actions, derivative lawsuits and contracts, intellectual property and competitive claims), environmental matters, product liability matters (predominately associated with alleged exposure to asbestos-containing materials), and other risk management matters (e.g., general liability, automobile, and workers’ compensation claims). Additionally, we may become subject to other claims of which we are currently unaware, which may be significant, or the claims of which we are aware may result in our incurring significantly greater loss than we anticipate. While we (and our subsidiaries) maintain property, cargo, auto, product, general liability, environmental, and directors’ and officers’ liability insurance and have acquired rights under similar policies in connection with acquisitions that we believe cover a significant portion of these claims, this insurance may be insufficient or unavailable (e.g., in the case of insurer insolvency) to protect us against potential loss exposures. Also, while we believe we are entitled to indemnification from third parties for some of these claims, these rights may be insufficient or unavailable to protect us against potential loss exposures.

Our recorded liabilities related to these matters totaled $685.7 (including $641.2 for asbestos product liability matters) and $653.5 (including $605.6 for asbestos product liability matters) at December 31, 2017 and 2016, respectively. Of these amounts, $651.6 and $621.0 are included in “Other long-term liabilities” within our consolidated balance sheets at December 31, 2017 and 2016, respectively, with the remainder included in “Accrued expenses.” The liabilities we record for these claims are based on a number of assumptions, including historical claims and payment experience and, with respect to asbestos claims, actuarial estimates of the future period during which additional claims are reasonably foreseeable. While we base our assumptions on facts currently known to us, they entail inherently subjective judgments and uncertainties. As a result, our current assumptions for estimating these liabilities may not prove accurate, and we may be required to adjust these liabilities in the future, which could result in charges to earnings. These variances relative to current expectations could have a material impact on our financial position and results of operations.

Our asbestos-related claims are typical in certain of the industries in which we operate or pertain to legacy businesses we no longer operate. It is not unusual in these cases for fifty or more corporate entities to be named as defendants. We vigorously defend these claims, many of which are dismissed without payment, and the significant majority of costs related to these claims have historically been paid pursuant to our insurance arrangements. During the years ended December 31, 2017, 2016 and 2015, our payments for asbestos-related matters, net of insurance recoveries, were $1.0, $5.8 and $6.9, respectively. A significant increase in claims, costs and/or issues with existing insurance coverage (e.g., dispute with or insolvency of insurer(s)) could have a material adverse impact on our share of future payments related to these matters, and, as a result, have a material impact on our financial position, results of operations and cash flows.

We have recorded insurance recovery assets associated with the asbestos product liability matters, with such amounts totaling $590.9 and $564.4 at December 31, 2017 and 2016, respectively, and included in “Other assets” within our consolidated balance sheets. These assets represent amounts that we believe we are or will be entitled to recover under agreements we have with insurance companies. The assets we record for these insurance recoveries are based on a number of assumptions, including the continued solvency of the insurers, and are subject to a variety of uncertainties. Our current assumptions for estimating these assets may not prove accurate, and we may be required to adjust these assets in the future, which could result in additional charges to earnings. These variances relative to current expectations could have a material impact on our financial position and results of operations.

During the years ended December 31, 2017, 2016, and 2015, we recorded charges of $5.7, $4.9, and $11.2, respectively, as a result of changes in estimates associated with the liabilities and assets related to asbestos product liability matters. Of these charges, $3.5, $4.2 and $8.0 were recorded to “Other expense, net” for the years ended December 31, 2017, 2016, and 2015, respectively, and $2.2, $0.7, and $3.2 respectively, to “Gain (loss) on disposition of discontinued operations, net of tax.”

Large Power Projects in South Africa

The business environment surrounding our large power projects in South Africa remains difficult, as we have experienced delays, cost over-runs, and various other challenges associated with a complex set of contractual relationships among the end customer, prime contractors, various subcontractors (including us and our subcontractors), and various suppliers. We currently are involved in a number of claim disputes relating to these challenges. We are pursuing various commercial alternatives for addressing these challenges, in attempt to mitigate our overall financial exposure.

During the third quarter of 2015, we gained additional insight into the path for completing these projects, including our remaining scope, the estimated costs for completing such scope, and our expected recoverability of costs from prime contractors and our subcontractors. In response to this new information, we revised our estimates of revenues and costs associated with the projects. These revisions resulted in an increase in our “Loss from continuing operations before income taxes” for the year ended December 31, 2015 of $95.0, which is comprised of a reduction in revenue of $57.2 and an increase in cost of products sold of $37.8.

Over the past two years, we have implemented various initiatives that have reduced the risk associated with our large power projects in South Africa, including more recent steps to accelerate the timeline for completing certain portions of the projects. In addition, significant progress has occurred with regard to the projects, as we have now completed the majority of our contractual scope and expect to complete the remainder by the end of 2019.

During 2017, we experienced higher than expected costs associated with (i) our efforts to accelerate completion of certain scopes of work, (ii) financial and other challenges facing certain of our subcontractors, and (iii) delays and other on-site productivity challenges. As a result, during the second and fourth quarters of 2017, we revised our estimates of revenues and costs associated with the projects. These revisions resulted in a charge to “Income (loss) from continuing operations before income taxes” of $52.8 during the year ended December 31, 2017 ($22.9 and $29.9, during the second and fourth quarters of 2017, respectively), which is comprised of a reduction in revenue of $36.9 ($13.5 and $23.4, during the second and fourth quarters of 2017, respectively) and an increase in cost of products sold of $15.9 ($9.4 and $6.5, during the second and fourth quarters of 2017, respectively).

We recognize revenue associated with unapproved change orders and claims to the extent the related costs have been incurred and the amount expected of recovery is probable and reasonably estimable. At December 31, 2017, the projected revenues related to our large power projects in South Africa included approximately $29.0 related to claims and unapproved change orders. We believe these amounts are recoverable under the provisions of the related contracts and reflect our best estimate of recoverable amounts.

Although we believe that our current estimates of revenues and costs relating to these projects are reasonable, it is possible that future revisions of such estimates could have a material effect on our consolidated financial statements.

Noncontrolling Interest in South African Subsidiary

Our South African subsidiary, DBT Technologies (PTY) LTD (“DBT”), has a Black Economic Empowerment shareholder (the “BEE Partner”) that holds a 25.1% noncontrolling interest in DBT. Under the terms of the shareholder agreement between the BEE Partner and SPX Technologies (PTY) LTD (“SPX Technologies”), the BEE Partner had the option to put its ownership interest in DBT to SPX Technologies, the majority shareholder of DBT, at a redemption amount determined in accordance with the terms of the shareholder agreement (the “Put Option”). The BEE Partner notified SPX Technologies of its intention to exercise the Put Option and, on July 6, 2016, an Arbitration Tribunal declared that the BEE Partner was entitled to South African Rand 287.3 in connection with the exercise of the Put Option, having not considered an amount due from the BEE Partner under a promissory note of South African Rand 30.3 held by SPX Technologies. As a result, we have reflected the net redemption amount of South African Rand 257.0 (or $20.9 and $18.5 at December 31, 2017 and 2016, respectively) within “Accrued expenses” on our consolidated balance sheets as of December 31, 2017 and 2016, with the related offset recorded to “Paid-in capital” and “Accumulated other comprehensive income.” In addition, during 2016 we reclassified $38.7 from “Noncontrolling Interests” to “Paid-in capital.” Lastly, under the two-class method of calculating earnings per share, we have reflected an adjustment of $18.1 to “Net income (loss) attributable to SPX Corporation common shareholders” for the excess redemption amount of the Put Option (i.e., the increase in the redemption amount during the year ended December 31, 2016 in excess of fair value) in our calculations of basic and diluted earnings per share for the year ended December 31, 2016.

In August 2016, SPX Technologies applied to the High Court of South Africa (the “Court”) to have the Arbitration Tribunal’s ruling set aside. The Court heard arguments on SPX Technologies application in November 2017. On January 22, 2018, the Court ruled in SPX Technologies favor and set aside the Arbitration Tribunal’s ruling. This ruling by the Court is subject to appeal by the BEE Partner. The BEE Partner has filed for leave to appeal the decision and SPX Technologies will continue to assert all legal defenses available to it.

Beginning in the third quarter of 2016, in connection with our accounting for the redemption of the BEE partner’s ownership interest in DBT, we discontinued allocating earnings/losses of DBT to the BEE Partner within our consolidated financial statements.

Patent Infringement Lawsuit

Our subsidiary, SPX Cooling Technologies, Inc. (“SPXCT”), is a defendant in a legal action brought by Baltimore Aircoil Company (“BAC”) alleging that a SPXCT product infringes United States Patent No. 7,107,782, entitled “Evaporative Heat Exchanger and Method.” BAC filed suit on July 16, 2013 in the United States District Court for the District of Maryland (the “District Court”) seeking monetary damages and injunctive relief.

On November 4, 2016, the jury for the trial in the District Court found in favor of SPXCT. The verdict by the District Court is currently under appeal by BAC. We believe that we will ultimately be successful in any future judicial processes; however, to the extent we are not successful, the outcome could have a material adverse effect on our financial position, results of operations, and cash flows.

Litigation Matters

We are subject to other legal matters that arise in the normal course of business. We believe these matters are either without merit or of a kind that should not have a material effect, individually or in the aggregate, on our financial position, results of operations or cash flows; however, we cannot assure you that these proceedings or claims will not have a material effect on our financial position, results of operations or cash flows.

Environmental Matters

Our operations and properties are subject to federal, state, local and foreign regulatory requirements relating to environmental protection. It is our policy to comply fully with all applicable requirements. As part of our effort to comply, we have a comprehensive environmental compliance program that includes environmental audits conducted by internal and external independent professionals, as well as regular communications with our operating units regarding environmental compliance requirements and anticipated regulations. Based on current information, we believe that our operations are in substantial compliance with applicable environmental laws and regulations, and we are not aware of any violations that could have a material effect, individually or in the aggregate, on our business, financial condition, and results of operations or cash flows. As of December 31, 2017, we had liabilities for site investigation and/or remediation at 28 sites (30 sites at December 31, 2016) that we own or control. In addition, while we believe that we maintain adequate accruals to cover the costs of site investigation and/or remediation, we cannot provide assurance that new matters, developments, laws and regulations, or stricter interpretations of existing laws and regulations will not materially affect our business or operations in the future.

Our environmental accruals cover anticipated costs, including investigation, remediation, and operation and maintenance of clean-up sites. Our estimates are based primarily on investigations and remediation plans established by independent consultants, regulatory agencies and potentially responsible third parties. Accordingly, our estimates may change based on future developments, including new or changes in existing environmental laws or policies, differences in costs required to complete anticipated actions from estimates provided, future findings of investigation or remediation actions, or alteration to the expected remediation plans. It is our policy to revise an estimate once it becomes probable and the amount of change can be reasonably estimated. We generally do not discount our environmental accruals and do not reduce them by anticipated insurance recoveries. We take into account third-party indemnification from financially viable parties in determining our accruals where there is no dispute regarding the right to indemnification.

In the case of contamination at offsite, third-party disposal sites, as of December 31, 2017, we have been notified that we are potentially responsible and have received other notices of potential liability pursuant to various environmental laws at 15 sites (22 sites at December 31, 2016) at which the liability has not been settled, of which 9 sites have been active in the past few years. These laws may impose liability on certain persons that are considered jointly and severally liable for the costs of investigation and remediation of hazardous substances present at these sites, regardless of fault or legality of the original disposal. These persons include the present or former owners or operators of the site and companies that generated, disposed of or arranged for the disposal of hazardous substances at the site. We are considered a “de minimis” potentially responsible party at most of the sites, and we estimate that our aggregate liability, if any, related to these sites is not material to our consolidated financial statements. We conduct extensive environmental due diligence with respect to potential acquisitions, including environmental site assessments and such further testing as we may deem warranted. If an environmental matter is identified, we estimate the cost and either establish a liability, purchase insurance or obtain an indemnity from a financially sound seller; however, in connection with our acquisitions or dispositions, we may assume or retain significant environmental liabilities, some of which we may be unaware. The potential costs related to these environmental matters and the possible impact on future operations are uncertain due in part to the complexity of government laws and regulations and their interpretations, the varying costs and effectiveness of various clean-up technologies, the uncertain level of insurance or other types of recovery, and the questionable level of our responsibility. We record a liability when it is both probable and the amount can be reasonably estimated.

In our opinion, after considering accruals established for such purposes, the cost of remedial actions for compliance with the present laws and regulations governing the protection of the environment is not expected to have a material impact, individually or in the aggregate, on our financial position, results of operations or cash flows.

Self-Insured Risk Management Matters

We are self-insured for certain of our workers’ compensation, automobile, product and general liability, disability and health costs, and we believe that we maintain adequate accruals to cover our retained liability. Our accruals for risk management matters are determined by us, are based on claims filed and estimates of claims incurred but not yet reported, and generally are not discounted. We consider a number of factors, including third-party actuarial valuations, when making these determinations. We maintain third-party stop-loss insurance policies to cover certain liability costs in excess of predetermined retained amounts. This insurance may be insufficient or unavailable (e.g., because of insurer insolvency) to protect us against loss exposure.

Executive Agreements

The Board of Directors has approved an employment agreement for our President and Chief Executive Officer. This agreement had an initial term through December 31, 2017 and, thereafter, rolling terms of one year, and specifies the executive’s current compensation, benefits and perquisites, severance entitlements, and other employment rights and responsibilities. The Compensation Committee of the Board of Directors has approved severance benefit agreements for our other six executive officers. These agreements cover each executive’s entitlements in the event that the executive’s employment is terminated for other than cause, death or disability, or the executive resigns with good reason. The Compensation Committee of the Board of Directors has also approved change of control agreements for each of our executive officers, which cover each executive’s entitlements following a change of control.

Shareholders' Equity and Long-Term Incentive Compensation

12 Months Ended

Dec. 31, 2017

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

Shareholders' Equity and Long-Term Incentive Compensation

Shareholders’ Equity and Long-Term Incentive Compensation

Income (Loss) Per Share

The following table sets forth the computations of the components used for the calculation of basic and diluted income (loss) per share:



	Year ended December 31,
	2017		2016			2015
Numerator:
Income (loss) from continuing operations	$	84.0	$	30.3		$	(151.6	)
Less: Net loss attributable to noncontrolling interests	—		(0.4		)	(33.4		)
Adjustment related to redeemable noncontrolling interest (Note13)	—		(18.1		)	—
Income (loss) from continuing operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share	$	84.0	$	12.6		$	(118.2	)
Income (loss) from discontinued operations, net of tax	$	5.3	$	(97.9	)	$	34.6
Less: Net loss attributable to noncontrolling interest	—		—			(0.9		)
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share	$	5.3	$	(97.9	)	$	35.5
Denominator:
Weighted-average number of common shares used in basic income (loss) per share	42.413		41.610			40.733
Dilutive securities — Employee stock options, restricted stock shares and restricted stock units	1.492		0.551			—
Weighted-average number of common shares and dilutive securities used in diluted income (loss) per share	43.905		42.161			40.733

For the year ended December 31, 2015, 0.351 of unvested restricted stock shares/units were excluded from the computation of diluted earnings per share as we incurred losses from continuing operations during the year. For the years ended December 31, 2017, 2016, and 2015, 0.563, 1.045, and 0.553 of unvested restricted stock shares/units, respectively, were excluded from the computation of diluted earnings per share as the assumed proceeds for these instruments exceeded the average market value of the underlying common stock for the related years. For the years ended December 31, 2017, 2016 and 2015, 0.997, 1.343, and 0.505, respectively, of outstanding stock options were excluded from the computation of diluted earnings per share as the assumed proceeds for these instruments exceeded the average market value of the underlying common stock for the related years.

Common Stock and Treasury Stock

At December 31, 2017, we had 200.0 authorized shares of common stock (par value $0.01). Common shares issued, treasury shares and shares outstanding are summarized in the table below.



	Common Stock Issued		Treasury Stock		Shares Outstanding
December 31, 2014	100.064		(59.206	)	40.858
Restricted stock shares and restricted stock units	0.102		0.096		0.198
Other	0.360		—		0.360
December 31, 2015	100.526		(59.110	)	41.416
Restricted stock shares and restricted stock units	0.042		0.295		0.337
Retirement of treasury stock	(50.000	)	50.000		—
Other	0.187		—		0.187
December 31, 2016	50.755		(8.815	)	41.940
Restricted stock units	—		0.280		0.280
Other	0.431		—		0.431
December 31, 2017	51.186		(8.535	)	42.651

In 2016, we retired 50.0 shares or $2,948.1 of “Common stock in treasury.” Under the applicable state law, these shares represent authorized and unissued shares upon retirement. In accordance with our accounting policy, we allocate any excess of share repurchase over par value between “Paid-in capital” and “Retained deficit,” resulting in respective adjustments of $1,285.4 and $1,662.2.

Long-Term Incentive Compensation

Under the 2002 Stock Compensation Plan, as amended in 2006, 2011, 2012 and 2015, up to 1.682 shares of our common stock were available for grant at December 31, 2017. The 2002 Stock Compensation Plan permits the issuance of new shares or shares from treasury upon the exercise of options, vesting of time-based restricted stock units (“RSU’s”) and performance stock units (“PSU’s”), or the granting of restricted stock shares (“RS’s”). Each RSU and RS granted reduces availability by two shares. Each PSU granted in 2017 reduces availability by its maximum vesting attainment of 150%, or 3.0 shares.

PSU’s, RSU’s and RS’s may be granted to certain eligible employees or non-employee directors in accordance with applicable equity compensation plan documents and agreements. Subject to participants’ continued employment and other plan terms and conditions, the restrictions lapse and awards generally vest over a period of time, generally one or three years. In some instances, such as death, disability, or retirement, stock may vest concurrently with or following an employee’s termination. PSU’s are eligible to vest at the end of the performance period, with performance based on the total return of our stock over the three-year performance period against a peer group within the S&P 600 Capital Goods Index, while the RSU’s and RS’s vest based on the passage of time since grant date. PSU’s, RSU’s, and RS’s that do not vest within the applicable vesting period are forfeited.

Eligible employees received PSU’s in 2014 and 2013 as to which the employee could earn between 25% and 125% of the target performance award in the event the awards met the required vesting criteria. Vesting for the 2014 and 2013 target performance awards was based on SPX shareholder return versus the S&P Composite 1500 Industrials Index over three-year periods ended December 31, 2016 and December 31, 2015, respectively. In connection with the Spin-Off, the 2014 and 2013 PSU’s were modified to allow for a minimum vesting equivalent to 50% of the underlying shares at the end of the applicable remaining service periods. In connection with this modification, we recorded additional stock compensation expense of $2.1 in 2015. The remaining 2014 and 2013 PSU’s (i.e., the remaining 50%) did not meet the required performance target for the three years ended December 31, 2016 and 2015, respectively, and, as a result, these awards were forfeited.

We grant RSU’s or RS’s to non-employee directors under the 2006 Non-Employee Directors’ Stock Incentive Plan (the “Directors’ Plan”) and the 2002 Stock Compensation Plan. Under the Directors’ Plan, up to 0.027 shares of our common stock were available for grant at December 31, 2017. The 2017, 2016 and 2015 grants to non-employee directors generally vest over a one-year vesting period, with the 2017 grants scheduled to vest in their entirety immediately prior to the annual meeting of stockholders in May 2018.

Stock options may be granted to key employees in the form of incentive stock options or nonqualified stock options. The option price per share may be no less than the fair market value of our common stock at the close of business the day prior to the date of grant. Upon exercise, the employee has the option to surrender previously owned shares at current value in payment of the exercise price and/or for withholding tax obligations.

The recognition of compensation expense for share-based awards, including stock options, is based on their grant date fair values. The fair value of each award is amortized over the lesser of the award’s requisite or derived service period, which is generally up to three years. Compensation expense within income from continuing operations related to PSU’s, RSU’s, RS’s and stock options totaled $12.0, $12.7 and $33.9 for the years ended December 31, 2017, 2016 and 2015, respectively, with the related tax benefit being $4.6, $4.8 and $12.9 for the years ended December 31, 2017, 2016 and 2015, respectively.

During 2017 and 2016, long-term cash awards were granted to executive officers and other members of senior management. These awards are eligible to vest at the end of a three-year performance measurement period, with performance based on our achievement of a target segment income amount over the three-year measurement period. Long-term incentive compensation expense for 2017 and 2016 included $3.8 and $1.0, respectively associated with long-term cash awards.

We use the Monte Carlo simulation model valuation technique to determine fair value of our restricted stock awards that contain a market condition (i.e., the PSU’s). The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each PSU. We issued PSU’s to eligible participants on March 1, 2017 and March 2, 2016, while there were no PSU’s issued during 2015. We used the following assumptions in determining the fair value of these awards:



	Annual Expected Stock Price Volatility		Annual Expected Dividend Yield		Risk-Free Interest Rate		Correlation Between Total Shareholder Return for SPX and the Applicable S&P Index
March 1, 2017
SPX Corporation	41.03	%	—	%	1.52	%	0.3685
Peer group within S&P 600 Capital Goods Index	34.49	%	n/a		1.52	%
March 2, 2016
SPX Corporation	36.91	%	—	%	0.97	%	0.3354
Peer group within S&P 600 Capital Goods Index	32.94	%	n/a		0.97	%

Annual expected stock price volatility is based on the three-year historical volatility. There is no annual expected dividend yield as we discontinued dividend payments in 2015 and do not expect to pay dividends for the foreseeable future. The average risk-free interest rate is based on the one-year through three-year daily treasury yield curve rate as of the grant date.

The following table summarizes the PSU, RSU, and RS activity from December 31, 2014 through December 31, 2017:



	Unvested PSU’s, RSU’s, and RS’s		Weighted-Average Grant-Date Fair Value Per Share
December 31, 2014	1.168		$	69.22
Pre-spin:
Granted	0.451		81.60
Vested	(0.262	)	78.71
Canceled	(0.212	)	52.67
Impact of Spin-Off:
Terminations	(0.785	)	*
Conversions	1.010		*
Post-spin
Granted	0.510		12.32
Canceled	(0.011	)	20.34
December 31, 2015	1.869		17.63
Granted	0.423		13.97
Vested	(0.528	)	10.32
Forfeited	(0.062	)	20.46
December 31, 2016	1.702		16.47
Granted	0.252		28.22
Vested	(0.483	)	18.17
Forfeited	(0.241	)	20.83
December 31, 2017	1.230		$	17.41

As of December 31, 2017, there was $8.1 of unrecognized compensation cost related to PSU’s, RSU’s and RS’s. We expect this cost to be recognized over a weighted-average period of 1.4 years.

Stock Options

On March 1, 2017, March 2, 2016 and October 14, 2015, we granted stock options totaling 0.208, 0.505 and 0.883, respectively, of which 0.188 were exercisable as of December 31, 2017. The exercise price per share of these options is $27.40, $12.85 and $12.36, respectively, and the maximum contractual term of these options is ten years.

The fair value of each stock option granted on March 1, 2017, March 2, 2016 and October 14, 2015 was $9.60, $4.11 and $3.76, respectively. The fair value of each option grant was estimated using a Black-Scholes option-pricing model with the following assumptions:



	March 1, 2017		March 2, 2016		October 14 2015
Annual expected stock price volatility	32.00	%	30.06	%	27.86	%
Annual expected dividend yield	—	%	—	%	—	%
Risk-free interest rate	2.14	%	1.50	%	1.64	%
Expected life of stock option (in years)	6.0		6.0		6.0

Annual expected stock price volatility for the March 1, 2017 and March 2, 2016 grant were based on a weighted average of SPX’s stock volatility since the Spin-Off and an average of the most recent six-year historical volatility of a peer company group, while the annual expected stock price volatility for the October 14, 2015 grant was based on the six-year historical volatility of SPX’s common stock. There is no annual expected dividend yield as we discontinued dividend payments in 2015 and do not expect to pay dividends for the foreseeable future. The average risk-free interest rate is based on the five-year and seven-year treasury constant maturity rates. The expected option life is based on a three-year pro-rata vesting schedule and represents the period of time that awards are expected to be outstanding.

The following table shows stock option activity from December 31, 2014 through December 31, 2017.



	Shares		Weighted- Average Exercise Price
Options outstanding and exercisable at December 31, 2014	—		$	—
Granted pre-spin	0.323		85.87
Impact of Spin-Off:
Terminations	(0.282	)	85.87
Conversions	0.123		*
Granted post-spin	0.883		12.36
Options outstanding and exercisable at December 31, 2015	1.047		12.91
Granted	0.505		12.85
Options outstanding and exercisable at December 31, 2016	1.552		12.89
Exercised	(0.125	)	20.67
Forfeited	(0.027	)	14.45
Granted	0.208		27.40
Options outstanding and exercisable at December 31, 2017	1.608		$	14.67

As of December 31, 2017, there was $2.2 of unrecognized compensation cost related to the outstanding stock options. We expect this cost to be recognized over a weighted-average period of 1.2 years.

Accumulated Other Comprehensive Income

The changes in the components of accumulated other comprehensive income, net of tax, for the year ended December 31, 2017 were as follows:



	Foreign Currency Translation Adjustment		Net Unrealized Gains on Qualifying Cash Flow Hedges⁽³⁾			Pension and Postretirement Liability Adjustment and Other⁽¹⁾⁽⁴⁾			Total
December 31, 2016	$	229.7	$	1.5		$	3.9		$	235.1
Other comprehensive income before reclassifications ⁽¹⁾	0.5		2.3			16.3			19.1
Amounts reclassified from accumulated other comprehensive income ⁽²⁾	—		(3.0		)	(1.1		)	(4.1		)
Current-period other comprehensive income (loss)	0.5		(0.7		)	15.2			15.0
December 31, 2017	$	230.2	$	0.8		$	19.1		$	250.1

___________________________________________________________________

⁽¹⁾ As indicated in Note 9, we reduced our unfunded liability related to postretirement benefits and increased “Accumulated other comprehensive income” (before tax) by $26.8.

⁽²⁾ As indicated in Note 12, we discontinued hedge accounting for our Swaps resulting in a reclassification from “Accumulated other comprehensive income” (before tax) of $2.7.


⁽³⁾	Net of tax provision of $0.5 and $0.9 as of December 31, 2017 and 2016, respectively.

⁽⁴⁾Net of tax provision of $12.5 and $2.7 as of December 31, 2017 and 2016, respectively. The balances as of December 31, 2017 and 2016 include unamortized prior service credits.

The changes in the components of accumulated other comprehensive income, net of tax, for the year ended December 31, 2016 were as follows:



	Foreign Currency Translation Adjustment			Net Unrealized Losses on Qualifying Cash Flow Hedges(2)			Pension and Postretirement Liability Adjustment and Other(3)			Total
Balance at December 31, 2015	$	280.6		$	(1.8	)	$	4.5		$	283.3
Other comprehensive income (loss) before reclassifications	(11.9		)	1.1			—			(10.8		)
Amounts reclassified from accumulated other comprehensive income ⁽¹⁾	(39.0		)	2.2			(0.6		)	(37.4		)
Current-period other comprehensive income (loss)	(50.9		)	3.3			(0.6		)	(48.2		)
Balance at December 31, 2016	$	229.7		$	1.5		$	3.9		$	235.1

___________________________________________________________________


⁽¹⁾	In connection with the sale of our dry cooling business, we reclassified $40.4 of other comprehensive income related to foreign currency translation to “Gain on sale of dry cooling business.”


⁽²⁾	Net of tax (provision) benefit of $(0.9) and $0.8 as of December 31, 2016 and 2015, respectively.


⁽³⁾	Net of tax provision of $2.7 and $3.1 as of December 31, 2016 and 2015, respectively. The balances as of December 31, 2016 and 2015 include unamortized prior service credits.

The following summarizes amounts reclassified from each component of accumulated comprehensive income for the years ended December 31, 2017 and 2016:



	Amount Reclassified from AOCI						Affected Line Items in the Consolidated Statements of Operations
	Year ended December 31,
	2017			2016
(Gains) losses on qualifying cash flow hedges:
FX forward contracts	$	—		$	1.0		Revenues
Commodity contracts	(2.5		)	2.0			Cost of products sold
Swaps	0.3			—			Interest Expense
Swaps	(2.7		)	—			Other Expense, net
Pre-tax	(4.9		)	3.0
Income taxes	1.9			(0.8		)
	$	(3.0	)	$	2.2
Pension and postretirement items:
Amortization of unrecognized prior service credits - Pre-tax	$	(1.8	)	$	(1.0	)	Selling, general and administrative
Income taxes	0.7			0.4
	$	(1.1	)	$	(0.6	)

Recognition of foreign currency translation adjustments related to business dispositions:
Recognition of foreign currency translation adjustment associated with the sale of our dry cooling business	$	—		$	(40.4	)	Gain on sale of dry cooling business
Recognition of foreign currency translation adjustment associated with the sale our Balcke Dürr business	—			1.4			Gain (loss) on disposition of discontinued operations, net of tax
	$	—		$	(39.0	)

Common Stock in Treasury

As described above, in 2016, we retired 50.0 shares or $$2,948.1 of “Common stock in treasury.” In addition, during the years ended December 31, 2017, 2016 and 2015, “Common stock in treasury” was decreased by the settlement of restricted stock units issued from treasury stock of $16.9, $17.9 and $7.0, respectively, and increased by $0.0, $0.0 and $1.8, respectively, for common stock that was surrendered by recipients of restricted stock as a means of funding the related minimum income tax withholding requirements.

Dividends

In connection with the Spin-Off, we discontinued dividend payments immediately following the second quarter dividend payment for 2015. Dividends declared totaled $30.9 for the year ended December 31, 2015, while dividends paid were $45.9.

Preferred Stock

None of our 3.0 shares of authorized no par value preferred stock was outstanding at December 31, 2017, 2016 or 2015.

Fair Value

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:


•	Level 1 — Quoted prices for identical instruments in active markets.


•	Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.


•	Level 3 — Significant inputs to the valuation model are unobservable.

There were no changes during the periods presented to the valuation techniques we use to measure asset and liability fair values on a recurring basis. There were no transfers between the three levels of the fair value hierarchy for the periods presented.

Valuation Methodologies Used to Measure Fair Value on a Non-Recurring Basis

Parent Guarantees and Bonds Associated with Balcke Dürr — As indicated in Note 4, in connection with the sale of Balcke Dürr, existing parent company guarantees and bank and surety bonds, which totaled approximately Euro 79.0 and Euro 79.0, respectively, at the time of sale (and Euro 76.1 and Euro 47.9, respectively, at December 31, 2017), will remain in place through each instrument’s expiration date, with such expiration dates occurring through 2022. These guarantees and bonds provide protections for Balcke Dürr customers in regard to advance payments, performance, and warranties on projects in existence at the time of sale. In addition, certain bonds relate to lease obligations and foreign tax matters in existence at the time of sale. Balcke Dürr and the Buyer have provided us a full indemnity in the event that any of these guarantees or bonds are called. Also, at the time of sale, Balcke Dürr provided cash collateral of Euro 4.0 and mutares AG provided a guarantee of Euro 5.0 as a security for the above indemnifications (Euro 4.0 and Euro 3.0, respectively, at December 31, 2017). Summarized below are the liability (related to the parent company guarantees and bank and surety bonds) and asset (related to the cash collateral and guarantee provided by mutares AG) recorded at the time of sale, along with the change in the liability and the asset during 2017.



	Twelve Months Ended December 31, 2017
	Guarantees and Bonds Liability			Indemnification Assets
Balance as of December 31, 2016 ^{(1) (2)}	$	9.9		$	4.8
Reduction/Amortization for the period ⁽³⁾	(2.5		)	(2.6		)
Impact of changes in foreign currency rates	1.3			0.6
Balance as of December 31, 2017 ⁽²⁾	$	8.7		$	2.8

___________________________

⁽¹⁾

In connection with the sale, we estimated the fair value of the existing parent company guarantees and bank and surety bonds considering the probability of default by Balcke Dürr and an estimate of the amount we would be obligated to pay in the event of a default. Additionally, we estimated the fair value of the cash collateral provided by Balcke Dürr and the guarantee provided by mutares AG based on the terms and conditions and relative risk associated with each of these securities (unobservable inputs - Level 3).


⁽²⁾	Balance associated with the guarantees and bonds is reflected within “Other long-term liabilities,” while the balance associated with the indemnification assets is reflected within “Other assets.”


⁽³⁾	We reduce the liability generally at the earlier of the completion of the related underlying project milestones or the expiration of the guarantees or bonds. We amortize the asset based on the expiration terms of each of the securities. We record the reduction of the liability and the amortization of the asset to “Other expense, net.”

The net loss recorded at the time of sale of $78.6 includes a charge of $5.1 associated with the estimated fair value of the guarantees and bonds, after consideration of the cash collateral and guarantee provided by Balcke Dürr and mutares AG, respectively.

Goodwill, Indefinite-Lived Intangible and Other Long-Lived Assets — Certain of our non-financial assets are subject to impairment analysis, including long-lived assets, indefinite-lived intangible assets and goodwill. We review the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually for indefinite-lived intangible assets and goodwill. Any resulting asset impairment would require that the instrument be recorded at its fair value. As of December 31, 2017, we did not have any significant non-financial assets or liabilities that are required to be measured at fair value on a recurring or non-recurring basis.

During the fourth quarter of 2016, we concluded that the carrying value of Heat Transfer’s definite-lived intangible assets (customer relationships and technology) may not be recoverable. As a result, we performed an impairment analysis on such assets. Based on such analysis, we determined that the fair values of these assets were less than their respective carrying values, resulting in an aggregate impairment charge of $23.9. The fair value of the customer relationship intangible asset was based on the estimated future cash flows of the asset, discounted at a rate of return that reflected the relative risk of the cash flows (unobservable inputs - Level 3). The fair values for the technology intangible assets were based on applying estimated royalty rates to projected revenues associated with the assets, discounted at a rate of return that reflected the relative risk of the revenues and current market conditions (unobservable inputs - Level 3).

We perform our annual trademarks impairment testing during the fourth quarter, or on a more frequent basis if there are indications of potential impairment. The fair values of our trademarks are determined by applying estimated royalty rates to projected revenues, with the resulting amount discounted at a rate of return that reflects the relative risk of the revenues and current market conditions (fair value based on unobservable inputs - Level 3, as defined above). Based on our annual impairment testing during the fourth quarter of 2016, we recorded an impairment charge associated with Heat Transfer’s trademarks of $2.2. In addition, we recorded impairment charges of $4.0 during the first quarter of 2016 associated with Heat Transfer’s trademarks.

Valuation Methodologies Used to Measure Fair Value on a Recurring Basis

Derivative Financial Instruments — Our financial derivative assets and liabilities include interest rate swaps, FX forward contracts, FX embedded derivatives and commodity contracts, valued using valuation models based on observable market inputs such as forward rates, interest rates, our own credit risk and the credit risk of our counterparties, which comprise investment-grade financial institutions. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. We have not made any adjustments to the inputs obtained from the independent sources. Based on our continued ability to enter into forward contracts, we consider the markets for our fair value instruments active. We primarily use the income approach, which uses valuation techniques to convert future amounts to a single present amount.

As of December 31, 2017, there had been no significant impact to the fair value of our derivative liabilities due to our own credit risk, as the related instruments are collateralized under our senior credit facilities. Similarly, there had been no significant impact to the fair value of our derivative assets based on our evaluation of our counterparties’ credit risks.

Indebtedness and Other — The estimated fair value of our debt instruments as of December 31, 2017 and December 31, 2016 approximated the related carrying values due primarily to the variable market-based interest rates for such instruments.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Results (Unaudited)



	First ⁽⁵⁾					Second ⁽⁵⁾						Third ⁽⁵⁾					Fourth ⁽⁵⁾
	2017		2016			2017			2016			2017		2016			2017			2016
Operating revenues ⁽¹⁾	$	340.6	$	360.6		$	349.7		$	371.4		$	348.5	$	345.0		$	387.0		$	395.3
Gross profit ⁽¹⁾	88.1		89.9			76.1			91.1			85.1		80.8			80.9			114.0
Income (loss) from continuing operations, net of tax ⁽²⁾	10.3		20.2			(8.3		)	6.5			22.0		6.6			60.0			(3.0		)
Income (loss) from discontinued operations, net of tax ⁽³⁾	7.1		(6.6		)	(0.7		)	(3.5		)	0.3		(4.7		)	(1.4		)	(83.1		)
Net income (loss)	17.4		13.6			(9.0		)	3.0			22.3		1.9			58.6			(86.1		)
Less: Net income (loss) attributable to noncontrolling interests	—		0.6			—			(1.0		)	—		—			—			—
Net income (loss) attributable to SPX Corporation common shareholders	17.4		13.0			(9.0		)	4.0			22.3		1.9			58.6			(86.1		)
Adjustment related to redeemable noncontrolling interest ⁽⁴⁾	—		—			—			(18.1		)	—		—			—			—
Net income (loss) attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest	$	17.4	$	13.0		$	(9.0	)	$	(14.1	)	$	22.3	$	1.9		$	58.6		$	(86.1	)
Basic income (loss) per share of common stock:
Continuing operations, net of tax	$	0.24	$	0.47		$	(0.19	)	$	(0.25	)	$	0.51	$	0.16		$	1.41		$	(0.07	)
Discontinued operations, net of tax	0.17		(0.16		)	(0.02		)	(0.09		)	0.01		(0.12		)	(0.03		)	(1.99		)
Net income (loss)	$	0.41	$	0.31		$	(0.21	)	$	(0.34	)	$	0.52	$	0.04		$	1.38		$	(2.06	)
Diluted income (loss) per share of common stock:
Continuing operations, net of tax	$	0.24	$	0.47		$	(0.19	)	$	(0.25	)	$	0.50	$	0.16		$	1.35		$	(0.07	)
Discontinued operations, net of tax	0.16		(0.16		)	(0.02		)	(0.09		)	0.01		(0.12		)	(0.03		)	(1.99		)
Net income (loss)	$	0.40	$	0.31		$	(0.21	)	$	(0.34	)	$	0.51	$	0.04		$	1.32		$	(2.06	)

___________________________________________________________________

Note: The sum of the quarters’ income per share may not equal the full year per share amounts.

⁽¹⁾

During the second and fourth quarters of 2017, we determined that additional cost would be required in order to complete certain remaining portions of large power projects in South Africa. As such, we revised our estimates of revenues and costs associated with the projects. These revisions resulted in charges to “Income (loss) from continuing operations before income taxes” of $22.9 and $29.9, respectively, which is comprised of a reduction in revenue of $13.5 and $23.4, respectively, and increases in cost of products sold of $9.4 and $6.5, respectively, in the second and fourth quarters of 2017. See Notes 5 and 13 to our consolidated financial statements for additional details.

⁽²⁾

During the first quarter of 2016, we completed the sale of our dry cooling business, resulting in a pre-tax gain of $17.9. During the second quarter of 2016, we reduced the pre-tax gain by $1.2 associated with adjustments to certain retained liabilities. During the third quarter of 2016, we increased the pre-tax gain by $1.7 associated with the working capital settlement related to the transaction. See Notes 1 and 4 for additional details.

During the first and fourth quarters of 2016, we recorded impairment charges of $4.0 and $26.1, respectively, associated with the intangible assets of our Heat Transfer business. See Note 8 for additional details

During the second quarter of 2016, we recognized pre-tax actuarial losses of $1.8 associated with certain of our U.S. pension plans. See Note 9 for additional details.

During the third quarter of 2017, in connection with a favorable legal ruling, we reduced our unfunded liability related to postretirement benefits resulting in a pre-tax gain of $2.6. See Note 9 for additional details.

During the third quarter of 2017, we settled a contract that had been suspended and then ultimately cancelled by a customer resulting in a pre-tax gain of $10.2. See Note 5 for additional details.

During the fourth quarter of 2017 and 2016, we recognized pre-tax actuarial losses of $4.2 and $10.2, respectively, associated with our pension and postretirement benefit plans. See Note 9 for additional details.

During the fourth quarter of 2017, we recognized an income tax benefit of $77.6 for a worthless stock deduction in the U.S. associated with our investment in a South African subsidiary. See Note 10 for additional details.

During the fourth quarter of 2017, we recorded a provisional net charge of $11.8 associated with the impact of the new corporate tax regulations that were enacted in the U.S.. See Note 10 for additional details.

During the fourth quarter of 2017, we recorded a pre-tax charge of $0.9 and a pre-tax gain of $2.7 associated with an amendment of our Credit Agreement, with the charge related to the write-off of deferred financing costs and the gain related to the discontinuance of hedge accounting on our interest rate swap agreements. See Notes 11 and 12 for additional details.


⁽³⁾	During the fourth quarter of 2016, we recorded a net loss on the sale of Balcke Dürr of $78.6. During the first quarter of 2017, we reduced the net loss by $7.2. During the second quarter of 2017, we increased the net loss by $0.4. See Note 4 for additional details.

⁽⁴⁾

During the second quarter of 2016, in connection with the noncontrolling interest in our South Africa subsidiary, we have reflected an adjustment of $18.1 to “Net income (loss) attributable to SPX Corporation common shareholders” for the excess redemption amount of the Put Option (i.e., the increase in the redemption amount during 2016 in excess of fair value) in our calculations of basic and diluted earnings per share (see Note 13 for additional details).

⁽⁵⁾

We establish actual interim closing dates using a fiscal calendar, which requires our businesses to close their books on the Saturday closest to the end of the first calendar quarter, with the second and third quarters being 91 days in length. Our fourth quarter ends on December 31. The interim closing dates for the first, second and third quarters of 2017 are April 1, July 1 and September 30, compared to the respective April 2, July 2 and October 1, 2016 dates. This practice only affects the quarterly reporting periods and not the annual reporting period. We had two fewer days in the first quarter of 2017 and had one more day in the fourth quarter of 2017 than in the respective 2016 periods.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Principles of Consolidation

Consolidation, Variable Interest Entity

In determining whether we are the primary beneficiary of a variable interest entity (“VIE”), we perform a qualitative analysis that considers the design of the VIE, the nature of our involvement and the variable interests held by other parties to determine which party has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance, and which party has the obligation to absorb losses or the right to receive benefits of the entity that could potentially be significant to the VIE. We have an interest in a VIE, in which we are not the primary beneficiary, as a result of the sale of Balcke Dürr. See below and in Notes 2, 4 and 15 for further discussion of the Balcke Dürr sale. All other VIEs are considered immaterial, individually and in aggregate, to our consolidated financial statements.

Spin- Off of Flow Business, Shift Away from the Power Generation Markets, and Change of the Name of Our Power Reportable Segment


•	Sale of Dry Cooling Business - On March 30, 2016, we completed the sale of our dry cooling business, a business that provides dry cooling systems to the global power generation markets and was previously reported within our Engineered Solutions reportable segment, to Paharpur Cooling Towers Limited. See Note 4 for additional details.

•

Retirement of Treasury Stock

In accordance with our accounting policy, we allocate any excess of share repurchase over par value between “Paid-in capital” and “Retained earnings,”

Foreign Currency Translation and Transactions

Cash Equivalents

Cash Equivalents — We consider highly liquid money market investments with original maturities of three months or less at the date of purchase to be cash equivalents.

Revenue Recognition

Research and Development Costs

Property, Plant and Equipment

Pension and Postretirement

Defined benefit pension plans cover a portion of our salaried and hourly paid employees, including certain employees in foreign countries. Beginning in 2001, we discontinued providing these pension benefits generally to newly hired employees. Effective January 31, 2018, we will no longer provide service credits to active participants.

The plan year-end date for all our plans is December 31.

Income Taxes

Derivative Financial Instruments

Cash flows from hedging activities are included in the same category as the items being hedged, which are primarily operating activities.

We manufacture and sell our products in a number of countries and, as a result, are exposed to movements in foreign currency exchange rates. Our objective is to preserve the economic value of non-functional currency-denominated cash flows and to minimize the impact of changes as a result of currency fluctuations. Our principal currency exposures relate to the South African Rand, GBP, and Euro.

From time to time, we enter into forward contracts to manage the exposure on contracts with forecasted transactions denominated in non-functional currencies and to manage the risk of transaction gains and losses associated with assets/liabilities denominated in currencies other than the functional currency of certain subsidiaries (“FX forward contracts”). In addition, some of our contracts contain currency forward embedded derivatives (“FX embedded derivatives”), because the currency of exchange is not “clearly and closely” related to the functional currency of either party to the transaction. Certain of our FX forward contracts are designated as cash flow hedges. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives’ fair value are not included in current earnings, but are included in AOCI. These changes in fair value are reclassified into earnings as a component of revenues or cost of products sold, as applicable, when the forecasted transaction impacts earnings. In addition, if the forecasted transaction is no longer probable, the cumulative change in the derivatives’ fair value is recorded as a component of “Other expense, net” in the period in which the transaction is no longer considered probable of occurring. To the extent a previously designated hedging transaction is no longer an effective hedge, any ineffectiveness measured in the hedging relationship is recorded in earnings in the period in which it occurs.

Use of Estimates

Use of Estimates

Accounts Receivable Allowances

Inventory

Long-Lived Assets and Intangible Assets Subject to Amortization

Goodwill and Indefinite-Lived Intangible Assets

Accrued Expenses

Accrued Expenses — We make estimates and judgments in establishing accruals as required under GAAP.

Legal

Environmental Remediation Costs

Risk Management Matters

Warranty

Income Taxes

Employee Benefit Plans

Parent Guarantees and Bonds Associated with Balcke Durr

New Accounting Pronouncements

The following is a summary of new accounting pronouncements that apply or may apply to our business.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard on revenue recognition that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard contains a five-step approach that entities will apply to determine the measurement of revenue and timing of when it is recognized, including (i) identifying the contract(s) with a customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to separate performance obligations, and (v) recognizing revenue when (or as) each performance obligation is satisfied. The new standard requires a number of disclosures intended to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue, and the related cash flows. The disclosures include qualitative and quantitative information about contracts with customers, significant judgments made in applying the revenue guidance, and assets recognized from the costs to obtain or fulfill a contract. The standard is effective for interim and annual reporting periods beginning after December 15, 2017 and we plan to adopt the standard using the modified retrospective transition method. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application through retained earnings with no restatement of comparative periods. The more significant effects on our existing accounting policies will be associated with our power transformer business. Under the new standard, revenue for our power transformers will be recognized over time, which is a change from our current accounting policy of recognizing revenue for power transformers at a point in time. We have yet to finalize our analysis of the initial impact of adopting the new standard, but currently estimate that the adoption will result in a decrease to our retained deficit, as of January 1, 2018, of less than $6.0. We do not believe the adoption will have a material impact on our future results of operations.

In February 2016, the FASB issued an amendment to existing guidance that requires lessees to recognize assets and liabilities for the rights and obligations created by long-term leases. In addition, this amendment requires new qualitative and quantitative disclosures about leasing arrangements. This standard is effective for annual periods beginning on or after December 15, 2018 for public business entities, and interim periods within those fiscal years. Early adoption is permitted, and adoption must be applied on a modified retrospective basis. We are currently evaluating the effect this new standard will have on our consolidated financial statements.

In March 2016, the FASB issued an amendment to existing guidance that simplifies several aspects of the accounting for employee shared-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. The standard requires that all excess tax benefits and deficiencies previously recorded in “equity” be prospectively recorded to the statement of operations within the income tax (provision) benefit. These excess tax benefits and deficiencies are primarily driven by fluctuations in our stock price between the date a share-based award is granted and the date the award vests. As such, under this standard we could experience volatility in our income tax (provision) benefit and effective income tax rate. The standard also requires excess tax benefits or deficiencies be presented as an operating activity within the statement of cash flows rather than as a financing activity. We adopted this guidance on January 1, 2017. As such, we recognized income tax benefits of $0.6 in our 2017 consolidated statement of operations and classified such amount within operating activities of our 2017 consolidated statement of cash flows. Lastly, we elected to continue estimating stock-based compensation award forfeitures in determining the amount of compensation expense to be recognized each period.

In August 2016, the FASB issued an amendment to existing guidance to reduce diversity in practice in how certain cash receipts and cash payments are presented in the statement of cash flows. This amendment provides clarification on eight specific cash flow presentation issues. The issues include, but are not limited to, debt prepayment or extinguishment costs, settlement of zero-coupon debt, proceeds from the settlement of insurance claims, and cash receipts from payments on beneficial interests in securitization transactions. This amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted. We will adopt the standard, effective January 1, 2018. The adoption of this standard is not expected to have a material impact on our consolidated financial statements.

In January 2017, the FASB issued an amendment to simplify the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires that an entity recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This amendment is effective for annual reporting periods beginning after December 31, 2019, including interim periods within those annual reporting periods. Early adoption is permitted. The impact of this amendment on our consolidated financial statements will depend on the results of future goodwill impairment tests.

In March 2017, the FASB issued an amendment to revise the presentation of net periodic pension and postretirement benefit cost. The amendment requires the service cost component to be presented separately from the other components of net periodic pension and postretirement benefit cost. Service cost will be presented with other employee compensation costs within operating income. The other components of net periodic pension and postretirement benefit cost, such as interest cost, expected return on plan assets, amortization of prior service cost/credits, and gains or losses, are required to be separately presented outside of operating income. This amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The amendment to the presentation in the income statement of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost shall be applied retrospectively. We will adopt the standard, effective January 1, 2018. The adoption is not expected to have a material impact on our consolidated financial statements. See Note 9 for details of our pension and postretirement expense.

In August 2017, the FASB issued significant amendments to hedge accounting. The FASB’s new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The amendments can be adopted immediately in any interim or annual period (including the current period). The mandatory effective date for calendar year-end public companies is January 1, 2019. We are currently evaluating the effect this amendment will have on our consolidated financial statements.

In February 2018, the FASB amended its guidance for reporting comprehensive income to reflect the potential impacts of the reduction in the corporate tax rate resulting from the Tax Cuts and Jobs Act. The amendment gives the option of reclassifying the stranded tax effects within AOCI to retained earnings during the fiscal year or quarter in which the effect of the lower tax rate is recorded. The amendment is effective for years beginning after December 15, 2018, with early adoption permitted. We expect to adopt this amendment as of January 1, 2018, with the impact not expected to be material to our retained deficit.

Special Charges, Net

We anticipate that the liabilities related to restructuring actions will be paid within one year from the period in which the action was initiated.

Goodwill and Other Intangible Assets

Defined Contribution Retirement Plans

Potential Uncertain Positions

Concentrations of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist of cash and equivalents, trade accounts receivable, and interest rate swap, foreign currency forward, and commodity contracts. These financial instruments, other than trade accounts receivable, are placed with high-quality financial institutions throughout the world. We periodically evaluate the credit standing of these financial institutions.

We maintain cash levels in bank accounts that, at times, may exceed federally-insured limits. We have not experienced, and believe we are not exposed to significant risk of, loss in these accounts.

We have credit loss exposure in the event of nonperformance by counterparties to the above financial instruments, but have no other off-balance-sheet credit risk of accounting loss. We anticipate, however, that counterparties will be able to fully satisfy their obligations under the contracts. We do not obtain collateral or other security to support financial instruments subject to credit risk, but we do monitor the credit standing of counterparties.

Concentrations of credit risk arising from trade accounts receivable are due to selling to customers in a particular industry. We mitigate our credit risks by performing ongoing credit evaluations of our customers’ financial conditions and obtaining collateral, advance payments, or other security when appropriate. No one customer, or group of customers that to our knowledge are under common control, accounted for more than 10% of our revenues for any period presented.

Fair Value


•	Level 1 — Quoted prices for identical instruments in active markets.


•	Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.


•	Level 3 — Significant inputs to the valuation model are unobservable.

Valuation Methodologies Used to Measure Fair Value on a Recurring Basis

Fiscal Period

Environmental Matters

Environmental Matters

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of costs and estimated earnings on uncompleted contracts

Costs and estimated earnings on uncompleted contracts, from their inception, and related amounts billed as of December 31, 2017 and 2016 were as follows:



	2017			2016
Costs incurred on uncompleted contracts	$	1,261.3		$	1,191.4
Estimated earnings (loss) to date	(59.9		)	25.0
	1,201.4			1,216.4
Less: Billings to date	(1,202.0		)	(1,235.8		)
Billings in excess of costs and estimated earnings	$	(0.6	)	$	(19.4	)

Schedule of net costs and estimated earnings in excess of billings



	2017			2016
Costs and estimated earnings in excess of billings⁽¹⁾	$	28.8		$	33.9
Billings in excess of costs and estimated earnings on uncompleted contracts⁽²⁾	(29.4		)	(53.3		)
Net billings in excess of costs and estimated earnings	$	(0.6	)	$	(19.4	)

___________________________________________________________________


⁽¹⁾	Reported as a component of “Accounts receivable, net.”


⁽²⁾	Reported as a component of “Accrued expenses.”

Use of Estimates (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of activity for accounts receivable allowance accounts

Summarized below is the activity for these allowance accounts.



	Year ended December 31,
	2017			2016			2015
Balance at beginning of year	$	10.1		$	9.1		$	12.9
Allowances provided	13.2			15.7			14.0
Write-offs, net of recoveries, credits issued and other	(13.1		)	(14.7		)	(17.8		)
Balance at end of year	$	10.2		$	10.1		$	9.1

Schedule of accrued expenses

Summarized in the table below are the components of accrued expenses at December 31, 2017 and 2016.



	December 31,
	2017		2016
Employee benefits	$	68.9	$	69.3
Unearned revenue⁽¹⁾	100.1		117.8
Warranty	13.8		15.6
Other⁽²⁾	109.8		101.6
Total	$	292.6	$	304.3

___________________________________________________________________


⁽¹⁾	Unearned revenue includes billings in excess of costs and estimated earnings on uncompleted contracts accounted for under the percentage-of-completion method of revenue recognition, customer deposits and unearned amounts on service contracts.


⁽²⁾	Other consists of various items including, among other items, accrued legal costs, interest and restructuring costs, none of which is individually material.

Schedule of product warranty accrual

The following is an analysis of our product warranty accrual for the periods presented:



	Year ended December 31,
	2017			2016			2015
Balance at beginning of year	$	35.8		$	36.3		$	34.5
Provisions	13.0			15.2			18.1
Usage	(15.4		)	(15.5		)	(16.0		)
Currency translation adjustment	0.5			(0.2		)	(0.3		)
Balance at end of year	33.9			35.8			36.3
Less: Current portion of warranty	13.8			15.6			17.0
Non-current portion of warranty	$	20.1		$	20.2		$	19.3

__________________________________________________________________

Discontinued Operations and Other Dispositions (Tables)

12 Months Ended

Dec. 31, 2017

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of major classes of assets and liabilities, excluding intercompany balances, of businesses reported as discontinued operations

For the years ended December 31, 2017, 2016 and 2015, results of operations from our businesses reported as discontinued operations were as follows:



	Year ended December 31,
	2017			2016			2015 ⁽¹⁾
Balcke Dürr
Loss from discontinued operations	$	(2.6	)	$	(107.0	)	$	(48.7	)
Income tax benefit	9.4			11.8			9.1
Income (loss) from discontinued operations, net	6.8			(95.2		)	(39.6		)

SPX FLOW
Income from discontinued operations	—			—			122.4
Income tax provision	—			—			(43.0		)
Income from discontinued operations, net	—			—			79.4

All other
Loss from discontinued operations	(4.0		)	(3.7		)	(8.6		)
Income tax benefit	2.5			1.0			3.4
Loss from discontinued operations, net	(1.5		)	(2.7		)	(5.2		)

Total
Income (loss) from discontinued operations	(6.6		)	(110.7		)	65.1
Income tax (provision) benefit	11.9			12.8			(30.5		)
Income (loss) from discontinued operations, net	$	5.3		$	(97.9	)	$	34.6


⁽¹⁾	For SPX FLOW, represents financial results through the date of Spin-Off (i.e., the nine months ended September 26, 2015), except for a revision to increase the income tax provision by $1.4 that was recorded during the fourth quarter of 2015.



Non-cash items included in income from discontinued operations, net of tax
Depreciation and amortization	$	44.3
Impairment of intangible assets	15.0
Capital expenditures	43.1


⁽¹⁾	Represents financial results for SPX FLOW through the date of Spin-Off (i.e., the nine months ended September 26, 2015).

Schedule of income (loss) from discontinued operations and related income taxes

Major classes of line items constituting pre-tax income and after-tax income of SPX FLOW for the year ended December 31, 2015 ⁽¹⁾ are shown below:



Revenues	$	1,775.1
Costs and expenses:
Costs of products sold	1,179.3
Selling, general and administrative ⁽²⁾	368.2
Intangible amortization	17.7
Impairment of intangible assets	15.0
Special charges	41.2
Other income, net	1.3
Interest expense, net	(32.6		)
Income before taxes	122.4
Income tax provision	(43.0		)
Income from discontinued operations	79.4
Less: Net loss attributable to noncontrolling interest	(0.9		)
Income from discontinued operations attributable to common shareholders	$	80.3


⁽¹⁾	Represents financial results for SPX FLOW through the date of Spin-Off (i.e., the nine months ended September 26, 2015), except for a revision to increase the income tax provision by $1.4 that was recorded during the fourth quarter of 2015.


⁽²⁾	Includes $30.8 of professional fees and other costs that were incurred in connection with the Spin-Off.

Balcke Durr

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of major classes of assets and liabilities, excluding intercompany balances, of businesses reported as discontinued operations

Major classes of line items constituting pre-tax loss and after-tax loss of Balcke Dürr for the years ended December 31, 2016 and 2015 are shown below:



	Year ended December 31,
	2016			2015
Revenues	$	153.4		$	160.3
Costs and expenses:
Costs of products sold	144.2			143.8
Selling, general and administrative	31.4			37.9
Impairment of goodwill	—			13.7
Special charges (credits), net	(1.3		)	12.7
Other expense	(0.2		)	(0.9		)
Loss before taxes	(21.1		)	(48.7		)
Income tax benefit	4.5			9.1
Loss from discontinued operations	$	(16.6	)	$	(39.6	)



	Year ended December 31,
	2016		2015
Non-cash items included in income (loss) from discontinued operations, net of tax
Depreciation and amortization	$	2.0	$	2.2
Impairment of goodwill	—		13.7
Capital expenditures	0.7		1.9

Schedule of reportable segments and other operating segments, including the results of acquisitions from the respective dates of acquisition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Information on Reportable Segments (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Financial data for our reportable segments for the years ended December 31, 2017, 2016 and 2015 were as follows:



	2017			2016		2015
Revenues:
HVAC segment	$	511.0		$	509.5	$	529.1
Detection and Measurement segment	260.3			226.4		232.3
Engineered Solutions segment ⁽¹⁾	654.5			736.4		797.6
Consolidated revenues	$	1,425.8		$	1,472.3	$	1,559.0
Income (loss):
HVAC segment	$	74.1		$	80.2	$	80.2
Detection and Measurement segment	63.4			45.3		46.0
Engineered Solutions segment ⁽¹⁾⁽³⁾	(12.6		)	17.3		(87.4		)
Total income for segments	124.9			142.8		38.8
Corporate expense	46.2			41.7		103.4
Pension and postretirement expense	5.4			15.4		18.6
Long-term incentive compensation expense	15.8			13.7		33.9
Impairment of intangible assets	—			30.1		—
Special charges, net	2.7			5.3		5.1
Gain on sale of dry cooling business	—			18.4		—
Consolidated operating income (loss)	$	54.8		$	55.0	$	(122.2	)

Capital expenditures:
HVAC segment	$	2.2		$	1.9	$	2.3
Detection and Measurement segment	0.8			0.7		1.2
Engineered Solutions segment	6.1			6.5		8.1
General corporate	1.9			2.6		4.4
Total capital expenditures	$	11.0		$	11.7	$	16.0
Depreciation and amortization:
HVAC segment	$	5.5		$	5.3	$	4.6
Detection and Measurement segment	4.1			3.5		2.8
Engineered Solutions segment	12.5			15.2		20.7
General corporate	3.1			2.5		8.9
Total depreciation and amortization	$	25.2		$	26.5	$	37.0



	2017		2016		2015
Identifiable assets:
HVAC segment	$	747.1	$	710.1	$	623.0
Detection and Measurement segment	277.8		244.2		256.5
Engineered Solutions segment	557.8		567.6		808.6
General corporate	457.7		390.6		371.2
Discontinued operations	—		—		120.0
Total identifiable assets	$	2,040.4	$	1,912.5	$	2,179.3
Geographic Areas:
Revenues: ⁽²⁾
United States	$	1,243.3	$	1,235.2	$	1,255.4
China	28.0		33.5		83.6
South Africa ⁽¹⁾	56.9		105.4		54.2
United Kingdom	60.8		59.1		69.6
Other	36.8		39.1		96.2
	$	1,425.8	$	1,472.3	$	1,559.0

Tangible Long-Lived Assets:
United States	$	919.6	$	897.0	$	835.9
Other	24.8		29.6		40.4
Long-lived assets of continuing operations	944.4		926.6		876.3
Long-lived assets of discontinued operations	—		—		35.8
Total tangible long-lived assets	$	944.4	$	926.6	$	912.1

___________________________________________________________________

⁽¹⁾


⁽²⁾	Revenues are included in the above geographic areas based on the country that recorded the customer revenue.


⁽³⁾	During the third quarter of 2017, we settled a contract that had been suspended and then ultimately canceled by a customer for cash proceeds of $9.0 and other consideration. In connection with the settlement, we recorded a gain of $10.2 during the quarter within our Engineered Solutions reportable segment.

Special Charges, Net (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Schedule of special charges by expense type

Special charges for the years ended December 31, 2017, 2016 and 2015 are described in more detail below and in the applicable sections that follow:



	Years Ended December 31,
	2017		2016		2015
Employee termination costs	$	2.5	$	1.7	$	4.5
Facility consolidation costs	—		—		0.2
Other cash costs, net	0.2		—		0.1
Non-cash asset write-downs	—		3.6		0.3
Total	$	2.7	$	5.3	$	5.1

Schedule of special charges

2017 Charges:



	Employee Termination Costs		Facility Consolidation Costs		Other Cash Costs, Net		Non-Cash Asset Write-downs		Total Special Charges
HVAC segment	$	0.4	$	—	$	—	$	—	$	0.4
Detection and Measurement segment	0.3		—		—		—		0.3
Engineered Solutions segment	1.7		—		0.2		—		1.9
Corporate	0.1		—		—		—		0.1
Total	$	2.5	$	—	$	0.2	$	—	$	2.7

2016 Charges:



	Employee Termination Costs		Facility Consolidation Costs		Other Cash Costs, Net		Non-Cash Asset Write-downs		Total Special Charges
HVAC segment	$	—	$	—	$	—	$	—	$	—
Detection and Measurement segment	0.5		—		—		0.3		0.8
Engineered Solutions segment	1.2		—		—		3.3		4.5
Corporate	—		—		—		—		—
Total	$	1.7	$	—	$	—	$	3.6	$	5.3

2015 Charges:



	Employee Termination Costs		Facility Consolidation Costs		Other Cash Costs, Net			Non-Cash Asset Write-downs		Total Special Charges
HVAC segment	$	0.9	$	0.1	$	(0.2	)	$	0.3	$	1.1
Detection and Measurement segment	0.9		—		—			—		0.9
Engineered Solutions segment	1.6		0.1		0.3			—		2.0
Corporate	1.1		—		—			—		1.1
Total	$	4.5	$	0.2	$	0.1		$	0.3	$	5.1

Schedule of the analysis of the entity's restructuring liabilities

The following is an analysis of our restructuring liabilities for the years ended December 31, 2017, 2016 and 2015:



	December 31,
	2017			2016			2015
Balance at beginning of year	$	0.9		$	1.6		$	1.7
Special charges⁽¹⁾	2.7			1.7			4.8
Utilization — cash	(3.0		)	(2.1		)	(5.1		)
Currency translation adjustment and other	—			(0.3		)	0.2
Balance at the end of year	$	0.6		$	0.9		$	1.6

___________________________________________________________________


⁽¹⁾	The years ended December 31, 2017, 2016 and 2015 excluded $0.0, $3.6 and $0.3, respectively, of non-cash charges that impacted special charges but not the restructuring liabilities.

Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2017

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories at December 31, 2017 and 2016 comprised the following:



	December 31,
	2017			2016
Finished goods	$	33.0		$	43.0
Work in process	56.0			50.0
Raw materials and purchased parts	66.4			64.9
Total FIFO cost	155.4			157.9
Excess of FIFO cost over LIFO inventory value	(12.4		)	(12.2		)
Total inventories	$	143.0		$	145.7

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in the carrying amount of goodwill, by reportable segment and other operating segments

The changes in the carrying amount of goodwill, by reportable segment, for the year ended December 31, 2017, were as follows:



	December 31, 2016			Impairments		Foreign Currency Translation			December 31, 2017
HVAC segment
Gross goodwill	$	258.5		$	—	$	5.2		$	263.7
Accumulated impairments	(144.2		)	—		(0.5		)	(144.7		)
Goodwill	114.3			—		4.7			119.0
Detection and Measurement segment
Gross goodwill	214.4			—		2.2			216.6
Accumulated impairments	(134.2		)	—		(1.8		)	(136.0		)
Goodwill	80.2			—		0.4			80.6
Engineered Solutions segment
Gross goodwill	351.4			—		6.9			358.3
Accumulated impairments	(205.5		)	—		(6.5		)	(212.0		)
Goodwill	145.9			—		0.4			146.3
Total
Gross goodwill	824.3			—		14.3			838.6
Accumulated impairments	(483.9		)	—		(8.8		)	(492.7		)
Goodwill	$	340.4		$	—	$	5.5		$	345.9

The changes in the carrying amount of goodwill, by reportable segment, for the year ended December 31, 2016, were as follows:



	December 31, 2015			Disposition of Business ⁽¹⁾			Foreign Currency Translation			December 31, 2016
HVAC segment
Gross goodwill	$	261.3		$	—		$	(2.8	)	$	258.5
Accumulated impairments	(145.2		)	—			1.0			(144.2		)
Goodwill	116.1			—			(1.8		)	114.3
Detection and Measurement segment
Gross goodwill	219.1			—			(4.7		)	214.4
Accumulated impairments	(138.0		)	—			3.8			(134.2		)
Goodwill	81.1			—			(0.9		)	80.2
Engineered Solutions segment
Gross goodwill	391.6			(36.1		)	(4.1		)	351.4
Accumulated impairments	(235.3		)	25.9			3.9			(205.5		)
Goodwill	156.3			(10.2		)	(0.2		)	145.9
Total
Gross goodwill	872.0			(36.1		)	(11.6		)	824.3
Accumulated impairments	(518.5		)	25.9			8.7			(483.9		)
Goodwill	$	353.5		$	(10.2	)	$	(2.9	)	$	340.4

Schedule of identifiable intangible assets

Identifiable intangible assets were as follows:



	December 31, 2017							December 31, 2016
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Intangible assets with determinable lives:
Customer relationships	$	1.4	$	(1.4	)	$	—	$	1.4	$	(1.4	)	$	—
Technology	2.1		(0.5		)	1.6		2.1		(0.4		)	1.7
Patents	4.5		(4.5		)	—		4.5		(4.5		)	—
Other	11.7		(7.9		)	3.8		12.7		(7.4		)	5.3
	19.7		(14.3		)	5.4		20.7		(13.7		)	7.0
Trademarks with indefinite lives ⁽¹⁾	112.2		—			112.2		110.9		—			110.9
Total	$	131.9	$	(14.3	)	$	117.6	$	131.6	$	(13.7	)	$	117.9


⁽¹⁾	Changes in the gross carrying value during the year ended December 31, 2017 related to foreign currency translation

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Employee Benefit Plans

Schedule of the fair value of plan assets by asset class

Foreign Pension Plans



	Actual Allocations				Mid-point of Target Allocation Range
	2017		2016		2017
Global equity common trust funds	17	%	16	%	14	%
Global equities	—	%	8	%	—	%
Fixed income common trust funds	46	%	30	%	39	%
Commingled global fund allocation	34	%	20	%	36	%
Non-U.S. Government securities	—	%	24	%	7	%
Short-term investments ⁽¹⁾	3	%	2	%	4	%
Total	100	%	100	%	100	%

___________________________________________________________________


⁽¹⁾	Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts.

Domestic Pension Plans



	Actual Allocations				Mid-point of Target Allocation Range
	2017		2016		2017
Fixed income common trust funds	70	%	44	%	65	%
Commingled global fund allocation	12	%	19	%	18	%
Corporate bonds	1	%	11	%	—	%
Global equity common trust funds	7	%	12	%	5	%
U.S. Government securities	9	%	12	%	10	%
Short-term investments ⁽¹⁾	1	%	2	%	2	%
Total	100	%	100	%	100	%

___________________________________________________________________


⁽¹⁾	Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts.

Schedule of net periodic benefit (income) expense

Net periodic pension benefit expense (income) for our domestic and foreign pension plans included the following components:

Domestic Pension Plans



	Year ended December 31,
	2017			2016			2015
Service cost	$	0.3		$	0.4		$	2.5
Interest cost	13.4			13.9			16.5
Expected return on plan assets	(10.1		)	(12.9		)	(18.0		)
Amortization of unrecognized prior service credits	(0.1		)	(0.2		)	(0.1		)
Recognized net actuarial losses ⁽¹⁾	3.9			3.2			18.9
Total net periodic pension benefit expense	$	7.4		$	4.4		$	19.8

___________________________________________________________________

⁽¹⁾

Foreign Pension Plans



	Year ended December 31,
	2017			2016			2015
Service cost	$	—		$	—		$	1.3
Interest cost	4.9			5.6			7.7
Expected return on plan assets	(6.4		)	(6.6		)	(9.7		)
Recognized net actuarial losses ⁽¹⁾	3.1			8.2			3.8
Total net periodic pension benefit expense	1.6			7.2			3.1
Less: Net periodic pension expense of discontinued operations	—			(0.2		)	(2.2		)
Net periodic pension benefit expense of continuing operations	$	1.6		$	7.0		$	0.9

___________________________________________________________________


⁽¹⁾	Consists of our reported actuarial losses and the difference between actual and expected returns on plan assets.

Pension plans

Employee Benefit Plans

Schedule of the fair value of plan assets by asset class

The fair values of pension plan assets at December 31, 2017, by asset class, were as follows:



	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset class:
Debt securities:
Fixed income common trust funds ^{(1) (2)}	$	270.2	$	—	$	270.2	$	—
Corporate bonds	1.6		—		1.6		—
Non-U.S. Government securities	—		—		—		—
U.S. Government securities	25.2		—		25.2		—
Equity securities:
Global equity common trust funds ⁽¹⁾ ⁽³⁾	50.6		—		50.6		—
Global equities:	—		—		—		—
Alternative investments:
Commingled global fund allocations ⁽¹⁾ ⁽⁴⁾	95.1		—		95.1		—
Other:
Short-term investments ⁽⁵⁾	9.4		9.4		—		—
Other	1.0		—		—		1.0
Total	$	453.1	$	9.4	$	442.7	$	1.0

The fair values of pension plan assets at December 31, 2016, by asset class, were as follows:



	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset class:
Debt securities:
Fixed income common trust funds ^{(1) (2)}	$	163.1	$	—	$	163.1	$	—
Corporate bonds	29.1		—		29.1		—
Non-U.S. Government securities	39.0		—		39.0		—
U.S. Government securities	31.1		—		31.1		—
Equity securities:
Global equity common trust funds ⁽¹⁾ ⁽³⁾	57.6		—		57.6		—
Global equities:	13.2		—		13.2		—
Alternative investments:
Commingled global fund allocations ⁽¹⁾ ⁽⁴⁾	80.6		—		80.6		—
Other:
Short-term investments ⁽⁵⁾	10.5		10.5		—		—
Other	1.0		—		—		1.0
Total	$	425.2	$	10.5	$	413.7	$	1.0

⁽¹⁾


⁽²⁾	This class represents investments in actively managed common trust funds that invest in a variety of fixed income investments, which may include corporate bonds, both U.S. and non-U.S. municipal securities, interest rate swaps, options and futures.


⁽³⁾	This class represents investments in actively managed common trust funds that invest primarily in equity securities, which may include common stocks, options and futures.


⁽⁴⁾	This class represents investments in actively managed common trust funds with investments in both equity and debt securities. The investments may include common stock, corporate bonds, U.S. and non-U.S. municipal securities, interest rate swaps, options and futures.


⁽⁵⁾	Short-term investments are valued at $1.00/unit, which approximates fair value. Amounts are generally invested in actively managed common trust funds or interest-bearing accounts.

Schedule of changes in the fair value of Level 3 assets

The following table summarizes changes in the fair value of Level 3 assets for the years ended December 31, 2017 and 2016:



	Global Equity Common Trust Funds		Commingled Global Fund Allocations		Fixed Income Common Trust Funds		Other		Total
Balance at December 31, 2015	$	—	$	—	$	—	$	1.0	$	1.0
Transfer from Level 3 to Level 2 assets	—		—		—		—		—
Sales	—		—		—		—		—
Balance at December 31, 2016	—		—		—		1.0		1.0
Transfer from Level 3 to Level 2 assets	—		—		—		—		—
Sales	—		—		—		—		—
Balance at December 31, 2017	$	—	$	—	$	—	$	1.0	$	1.0

Schedule of estimated minimum benefit payments

Following is a summary, as of December 31, 2017, of the estimated future benefit payments for our pension plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. Benefit payments are paid from plan assets or directly by us for our non-funded plans. The expected benefit payments are estimated based on the same assumptions used at December 31, 2017 to measure our obligations and include benefits attributable to estimated future employee service.

Estimated future benefit payments: (Domestic and foreign pension plans)

	Domestic Pension Benefits		Foreign Pension Benefits
2018	$	24.8	$	4.7
2019	22.6		5.5
2020	23.1		5.3
2021	23.3		5.5
2022	23.9		6.4
Subsequent five years	115.1		36.1

Schedule of funded status of the pension plans and amounts recognized in consolidated balance sheets

The following tables show the domestic and foreign pension plans’ funded status and amounts recognized in our consolidated balance sheets:



	Domestic Pension Plans						Foreign Pension Plans
	2017			2016			2017			2016
Change in projected benefit obligation:
Projected benefit obligation — beginning of year	$	348.1		$	371.1		$	157.6		$	155.7
Divestiture of Balcke Dürr ⁽¹⁾	—			—			—			(6.7		)
Service cost	0.3			0.4			—			—
Interest cost	13.4			13.9			4.9			5.6
Actuarial losses	16.5			9.5			6.7			27.4
Settlements ⁽²⁾	—			(36.4		)	—			—
Curtailment losses	0.9			—			—			—
Benefits paid	(22.1		)	(10.4		)	(8.1		)	(6.4		)
Foreign exchange and other	—			—			14.1			(18.0		)
Projected benefit obligation — end of year	$	357.1		$	348.1		$	175.2		$	157.6

___________________________________________________________________


⁽¹⁾	Represents the transfer of Balcke Dürr’s pension liabilities as a result of the sale.


⁽²⁾	Amount in 2016 includes settlement payments of $27.9 in connection with lump-sum payment actions for the U.S. Plan and the SIARP.



	Domestic Pension Plans						Foreign Pension Plans
	2017			2016			2017			2016
Change in plan assets:
Fair value of plan assets — beginning of year	$	261.9		$	279.2		$	163.3		$	163.5
Actual return on plan assets	23.6			19.5			10.6			25.6
Contributions (employer and employee)	6.3			10.0			3.4			0.5
Settlements	—			(36.4		)	—			—
Benefits paid	(22.1		)	(10.4		)	(8.7		)	(6.1		)
Foreign exchange and other	—			—			14.8			(20.2		)
Fair value of plan assets — end of year	$	269.7		$	261.9		$	183.4		$	163.3
Funded status at year-end	(87.4		)	(86.2		)	8.2			5.7
Amounts recognized in the consolidated balance sheets consist of:
Other assets	$	—		$	—		$	8.4		$	6.3
Accrued expenses	(5.9		)	(5.9		)	—			—
Other long-term liabilities	(81.5		)	(80.3		)	(0.2		)	(0.6		)
Net amount recognized	$	(87.4	)	$	(86.2	)	$	8.2		$	5.7
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service credits	$	(0.6	)	$	(0.7	)	$	—		$	—

Schedule of accumulated benefit obligations in excess of the fair value of plan assets

The following is information about our pension plans that had accumulated benefit obligations in excess of the fair value of their plan assets at December 31, 2017 and 2016:



	Domestic Pension Plans				Foreign Pension Plans
	2017		2016		2017		2016
Projected benefit obligation	$	357.1	$	348.1	$	0.2	$	43.8
Accumulated benefit obligation	357.1		347.9		0.2		43.8
Fair value of plan assets	269.7		261.9		—		43.2

Schedule of actuarial assumptions used in accounting for pension plans

Actuarial assumptions used in accounting for our domestic and foreign pension plans were as follows:



	Year ended December 31,
	2017		2016		2015
Domestic Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate	3.98	%	4.06	%	4.09	%
Rate of increase in compensation levels	3.75	%	3.75	%	3.75	%
Expected long-term rate of return on assets	4.00	%	5.00	%	5.75	%
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate	3.57	%	3.98	%	4.24	%
Rate of increase in compensation levels	3.75	%	3.75	%	3.75	%
Foreign Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate	2.97	%	3.82	%	3.68	%
Rate of increase in compensation levels	N/A		N/A		4.00	%
Expected long-term rate of return on assets	4.09	%	4.57	%	5.81	%
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate	2.76	%	2.97	%	3.82	%
Rate of increase in compensation levels	N/A		N/A		4.00	%

Postretirement Plans

Employee Benefit Plans

Schedule of funded status of the pension plans and amounts recognized in consolidated balance sheets

The following tables show the postretirement plans’ funded status and amounts recognized in our consolidated balance sheets:



	Postretirement Benefits
	2017			2016
Change in accumulated postretirement benefit obligation:
Accumulated postretirement benefit obligation — beginning of year	$	115.3		$	120.8
Interest cost	3.5			4.2
Actuarial (gains) losses	(5.4		)	0.6
Benefits paid	(9.0		)	(10.3		)
Plan amendment	(26.8		)	—
Accumulated postretirement benefit obligation — end of year	$	77.6		$	115.3
Funded status at year-end	$	(77.6	)	$	(115.3	)
Amounts recognized in the consolidated balance sheets consist of:
Accrued expenses	$	(8.7	)	$	(11.7	)
Other long-term liabilities	(68.9		)	(103.6		)
Net amount recognized	$	(77.6	)	$	(115.3	)
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service credits	$	(31.0	)	$	(5.9	)

Schedule of net periodic benefit (income) expense

The net periodic postretirement benefit expense (income) included the following components:



	Year ended December 31,
	2017			2016			2015
Service cost	$	—		$	—		$	0.1
Interest cost	3.5			4.2			4.4
Amortization of unrecognized prior service credits	(1.7		)	(0.8		)	(0.8		)
Plan amendment	(2.6		)	—			(1.8		)
Recognized net actuarial (gains) losses	(2.8		)	0.6			(4.0		)
Net periodic postretirement benefit expense (income)	$	(3.6	)	$	4.0		$	(2.1	)

Schedule of estimated future benefit payments and expected federal subsidies

Following is a summary, as of December 31, 2017, of the estimated future benefit payments for our postretirement plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. The expected benefit payments are estimated based on the same assumptions used at December 31, 2017 to measure our obligations and include benefits attributable to estimated future employee service.



	Postretirement Payments
2018	$	8.9
2019	8.2
2020	7.5
2021	6.9
2022	6.3
Subsequent five years	23.9

Schedule of actuarial assumptions used in accounting for plans

Actuarial assumptions used in accounting for our domestic postretirement plans were as follows:



	Year ended December 31,
	2017		2016		2015
Assumed health care cost trend rates:
Health care cost trend rate for next year	7.25	%	7.50	%	6.60	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2027		2027		2024
Discount rate used in determining net periodic postretirement benefit expense	3.60	%	3.88	%	3.53	%
Discount rate used in determining year-end postretirement benefit obligation	3.34	%	3.69	%	3.88	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of income (loss) from continuing operations before income taxes and (provision for) benefit from income taxes

Income (loss) from continuing operations before income taxes and the (provision for) benefit from income taxes consisted of the following:



	Year ended December 31,
	2017			2016			2015
Income (loss) from continuing operations:
United States	$	68.8		$	14.0		$	(14.2	)
Foreign	(32.7		)	25.4			(140.1		)
	$	36.1		$	39.4		$	(154.3	)
(Provision for) benefit from income taxes:
Current:
United States	$	30.4		$	(4.3	)	$	10.9
Foreign	(3.5		)	(4.8		)	(3.3		)
Total current	26.9			(9.1		)	7.6
Deferred and other:
United States	23.5			0.2			(10.7		)
Foreign	(2.5		)	(0.2		)	5.8
Total deferred and other	21.0			—			(4.9		)
Total (provision) benefit	$	47.9		$	(9.1	)	$	2.7

Schedule of reconciliation of income tax computed at the U.S. federal statutory tax rate to the effective income tax rate

The reconciliation of income tax computed at the U.S. federal statutory tax rate to our effective income tax rate was as follows:



	Year ended December 31,
	2017		2016		2015
Tax at U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State and local taxes, net of U.S. federal benefit	4.4	%	5.0	%	(0.1	)%
U.S. credits and exemptions	(8.5	)%	(12.9	)%	1.5	%
Foreign earnings/losses taxed at lower rates	(14.9	)%	(5.9	)%	(9.0	)%
Audit settlements with taxing authorities	(0.1	)%	—	%	0.7	%
Adjustments to uncertain tax positions	(9.8	)%	(1.9	)%	(5.4	)%
Changes in valuation allowance	54.4	%	17.4	%	(18.8	)%
Tax on distributions of foreign earnings	—	%	0.7	%	(0.2	)%
Worthless stock deductions and other basis adjustments	(226.3	)%	—	%	(2.4	)%
Disposition of dry cooling business	—	%	(15.6	)%	—	%
U.S. tax reform	32.6	%	—	%	—	%
Other	0.5	%	1.3	%	0.4	%
	(132.7	)%	23.1	%	1.7	%

Schedule of significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities were as follows:



	As of December 31,
	2017			2016
Deferred tax assets:
NOL and credit carryforwards	$	146.0		$	78.2
Pension, other postretirement and postemployment benefits	41.2			77.2
Payroll and compensation	18.2			22.8
Legal, environmental and self-insurance accruals	25.3			35.1
Working capital accruals	11.5			16.4
Other	17.6			20.7
Total deferred tax assets	259.8			250.4
Valuation allowance	(110.9		)	(75.8		)
Net deferred tax assets	148.9			174.6
Deferred tax liabilities:
Intangible assets recorded in acquisitions	53.9			68.3
Basis difference in affiliates	3.7			10.6
Accelerated depreciation	28.8			40.6
Other	12.9			6.6
Total deferred tax liabilities	99.3			126.1
	$	49.6		$	48.5

Schedule of changes in the balance of unrecognized tax benefits

The aggregate changes in the balance of unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015 were as follows:



	Year ended December 31,
	2017			2016			2015
Unrecognized tax benefit — opening balance	$	37.9		$	48.8		$	63.3
Gross increases — tax positions in prior period	1.6			3.6			14.1
Gross decreases — tax positions in prior period	(0.3		)	(9.3		)	(7.6		)
Gross increases — tax positions in current period	0.3			0.7			11.3
Settlements	(1.3		)	—			—
Lapse of statute of limitations	(7.1		)	(5.9		)	(4.4		)
Gross decreases — Spin-Off	—			—			(26.7		)
Change due to foreign currency exchange rates	0.2			—			(1.2		)
Unrecognized tax benefit — ending balance	$	31.3		$	37.9		$	48.8

Indebtedness (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Schedule of debt activity (both current and non-current)

The following summarizes our debt activity (both current and non-current) for the year ended December 31, 2017:



	December 31, 2016		Borrowings		Repayments			Other ⁽⁵⁾			December 31, 2017
Revolving loans	$	—	$	54.6	$	(54.6	)	$	—		$	—
Term loans ⁽¹⁾⁽²⁾	339.6		350.0		(341.2		)	(0.7		)	347.7
Trade receivables financing arrangement ⁽³⁾	—		74.0		(74.0		)	—			—
Other indebtedness ⁽⁴⁾	16.6		38.7		(48.8		)	2.6			9.1
Total debt	356.2		$	517.3	$	(518.6	)	$	1.9		356.8
Less: short-term debt	14.8										7.0
Less: current maturities of long-term debt	17.9										0.5
Total long-term debt	$	323.5									$	349.3

_____________________________________________________________


⁽¹⁾	As noted below, we amended our senior credit agreement on December 19, 2017 and proceeds of $350.0 were made available by way of a new term loan facility, with $328.1 utilized to repay, in full, amounts outstanding under the then-existing term loan facility.


⁽²⁾	The new term loan is repayable in quarterly installments of 1.25% of the initial loan amount of $350.0, beginning in the first quarter of 2019, with the remaining balance payable in full on December 19, 2022. Balances are net of unamortized debt issuance costs of $2.3 and $1.6 at December 31, 2017 and December 31, 2016, respectively.


⁽³⁾	Under this arrangement, we can borrow, on a continuous basis, up to $50.0, as available. At December 31, 2017, we had $33.3 of available borrowing capacity under this facility.

⁽⁴⁾


⁽⁵⁾	“Other” primarily includes debt assumed, foreign currency translation on any debt instruments denominated in currencies other than the U.S. dollar, debt issuance costs incurred in connection with the new term loan, and the impact of amortization of debt issuance costs associated with the term loan.

Schedule of per annum fees charged and the interest rate margins applicable to Eurodollar and alternate base rate loans



Consolidated Leverage Ratio	Domestic Revolving Commitment Fee		Global Revolving Commitment Fee		Letter of Credit Fee		Foreign Credit Commitment Fee		Foreign Credit Instrument Fee		LIBOR Rate Loans		ABR Loans
Greater than or equal to 3.00 to 1.0	0.350	%	0.350	%	2.000	%	0.350	%	1.250	%	2.000	%	1.000	%
Between 2.25 to 1.0 and 3.00 to 1.0	0.300	%	0.300	%	1.750	%	0.300	%	1.000	%	1.750	%	0.750	%
Between 1.50 to 1.0 and 2.25 to 1.0	0.275	%	0.275	%	1.500	%	0.275	%	0.875	%	1.500	%	0.500	%
Less than 1.50 to 1.0	0.250	%	0.250	%	1.375	%	0.250	%	0.800	%	1.375	%	0.375	%

Shareholders' Equity and Long-Term Incentive Compensation (Tables)

12 Months Ended

Dec. 31, 2017

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

Computations of the components used for the calculation of basic and diluted income per share

The following table sets forth the computations of the components used for the calculation of basic and diluted income (loss) per share:



	Year ended December 31,
	2017		2016			2015
Numerator:
Income (loss) from continuing operations	$	84.0	$	30.3		$	(151.6	)
Less: Net loss attributable to noncontrolling interests	—		(0.4		)	(33.4		)
Adjustment related to redeemable noncontrolling interest (Note13)	—		(18.1		)	—
Income (loss) from continuing operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share	$	84.0	$	12.6		$	(118.2	)
Income (loss) from discontinued operations, net of tax	$	5.3	$	(97.9	)	$	34.6
Less: Net loss attributable to noncontrolling interest	—		—			(0.9		)
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share	$	5.3	$	(97.9	)	$	35.5
Denominator:
Weighted-average number of common shares used in basic income (loss) per share	42.413		41.610			40.733
Dilutive securities — Employee stock options, restricted stock shares and restricted stock units	1.492		0.551			—
Weighted-average number of common shares and dilutive securities used in diluted income (loss) per share	43.905		42.161			40.733

Summary of common shares issued, treasury shares and shares outstanding

Common shares issued, treasury shares and shares outstanding are summarized in the table below.



	Common Stock Issued		Treasury Stock		Shares Outstanding
December 31, 2014	100.064		(59.206	)	40.858
Restricted stock shares and restricted stock units	0.102		0.096		0.198
Other	0.360		—		0.360
December 31, 2015	100.526		(59.110	)	41.416
Restricted stock shares and restricted stock units	0.042		0.295		0.337
Retirement of treasury stock	(50.000	)	50.000		—
Other	0.187		—		0.187
December 31, 2016	50.755		(8.815	)	41.940
Restricted stock units	—		0.280		0.280
Other	0.431		—		0.431
December 31, 2017	51.186		(8.535	)	42.651

Schedule of assumptions to determine the fair value of restricted stock awards granted

We used the following assumptions in determining the fair value of these awards:



	Annual Expected Stock Price Volatility		Annual Expected Dividend Yield		Risk-Free Interest Rate		Correlation Between Total Shareholder Return for SPX and the Applicable S&P Index
March 1, 2017
SPX Corporation	41.03	%	—	%	1.52	%	0.3685
Peer group within S&P 600 Capital Goods Index	34.49	%	n/a		1.52	%
March 2, 2016
SPX Corporation	36.91	%	—	%	0.97	%	0.3354
Peer group within S&P 600 Capital Goods Index	32.94	%	n/a		0.97	%

Schedule of restricted stock share and restricted stock unit activity

The following table summarizes the PSU, RSU, and RS activity from December 31, 2014 through December 31, 2017:



	Unvested PSU’s, RSU’s, and RS’s		Weighted-Average Grant-Date Fair Value Per Share
December 31, 2014	1.168		$	69.22
Pre-spin:
Granted	0.451		81.60
Vested	(0.262	)	78.71
Canceled	(0.212	)	52.67
Impact of Spin-Off:
Terminations	(0.785	)	*
Conversions	1.010		*
Post-spin
Granted	0.510		12.32
Canceled	(0.011	)	20.34
December 31, 2015	1.869		17.63
Granted	0.423		13.97
Vested	(0.528	)	10.32
Forfeited	(0.062	)	20.46
December 31, 2016	1.702		16.47
Granted	0.252		28.22
Vested	(0.483	)	18.17
Forfeited	(0.241	)	20.83
December 31, 2017	1.230		$	17.41

Schedule of assumptions used to estimate fair value of stock option grants

The fair value of each option grant was estimated using a Black-Scholes option-pricing model with the following assumptions:



	March 1, 2017		March 2, 2016		October 14 2015
Annual expected stock price volatility	32.00	%	30.06	%	27.86	%
Annual expected dividend yield	—	%	—	%	—	%
Risk-free interest rate	2.14	%	1.50	%	1.64	%
Expected life of stock option (in years)	6.0		6.0		6.0

Schedule of stock option activity

The following table shows stock option activity from December 31, 2014 through December 31, 2017.



	Shares		Weighted- Average Exercise Price
Options outstanding and exercisable at December 31, 2014	—		$	—
Granted pre-spin	0.323		85.87
Impact of Spin-Off:
Terminations	(0.282	)	85.87
Conversions	0.123		*
Granted post-spin	0.883		12.36
Options outstanding and exercisable at December 31, 2015	1.047		12.91
Granted	0.505		12.85
Options outstanding and exercisable at December 31, 2016	1.552		12.89
Exercised	(0.125	)	20.67
Forfeited	(0.027	)	14.45
Granted	0.208		27.40
Options outstanding and exercisable at December 31, 2017	1.608		$	14.67

Schedule of changes in the components of accumulated other comprehensive income

The changes in the components of accumulated other comprehensive income, net of tax, for the year ended December 31, 2017 were as follows:



	Foreign Currency Translation Adjustment		Net Unrealized Gains on Qualifying Cash Flow Hedges⁽³⁾			Pension and Postretirement Liability Adjustment and Other⁽¹⁾⁽⁴⁾			Total
December 31, 2016	$	229.7	$	1.5		$	3.9		$	235.1
Other comprehensive income before reclassifications ⁽¹⁾	0.5		2.3			16.3			19.1
Amounts reclassified from accumulated other comprehensive income ⁽²⁾	—		(3.0		)	(1.1		)	(4.1		)
Current-period other comprehensive income (loss)	0.5		(0.7		)	15.2			15.0
December 31, 2017	$	230.2	$	0.8		$	19.1		$	250.1

___________________________________________________________________

⁽¹⁾ As indicated in Note 9, we reduced our unfunded liability related to postretirement benefits and increased “Accumulated other comprehensive income” (before tax) by $26.8.

⁽²⁾ As indicated in Note 12, we discontinued hedge accounting for our Swaps resulting in a reclassification from “Accumulated other comprehensive income” (before tax) of $2.7.


⁽³⁾	Net of tax provision of $0.5 and $0.9 as of December 31, 2017 and 2016, respectively.

⁽⁴⁾Net of tax provision of $12.5 and $2.7 as of December 31, 2017 and 2016, respectively. The balances as of December 31, 2017 and 2016 include unamortized prior service credits.

The changes in the components of accumulated other comprehensive income, net of tax, for the year ended December 31, 2016 were as follows:



	Foreign Currency Translation Adjustment			Net Unrealized Losses on Qualifying Cash Flow Hedges(2)			Pension and Postretirement Liability Adjustment and Other(3)			Total
Balance at December 31, 2015	$	280.6		$	(1.8	)	$	4.5		$	283.3
Other comprehensive income (loss) before reclassifications	(11.9		)	1.1			—			(10.8		)
Amounts reclassified from accumulated other comprehensive income ⁽¹⁾	(39.0		)	2.2			(0.6		)	(37.4		)
Current-period other comprehensive income (loss)	(50.9		)	3.3			(0.6		)	(48.2		)
Balance at December 31, 2016	$	229.7		$	1.5		$	3.9		$	235.1

___________________________________________________________________


⁽¹⁾	In connection with the sale of our dry cooling business, we reclassified $40.4 of other comprehensive income related to foreign currency translation to “Gain on sale of dry cooling business.”


⁽²⁾	Net of tax (provision) benefit of $(0.9) and $0.8 as of December 31, 2016 and 2015, respectively.


⁽³⁾	Net of tax provision of $2.7 and $3.1 as of December 31, 2016 and 2015, respectively. The balances as of December 31, 2016 and 2015 include unamortized prior service credits.

Schedule of amounts reclassified from each component of accumulated comprehensive income (loss)

The following summarizes amounts reclassified from each component of accumulated comprehensive income for the years ended December 31, 2017 and 2016:



	Amount Reclassified from AOCI						Affected Line Items in the Consolidated Statements of Operations
	Year ended December 31,
	2017			2016
(Gains) losses on qualifying cash flow hedges:
FX forward contracts	$	—		$	1.0		Revenues
Commodity contracts	(2.5		)	2.0			Cost of products sold
Swaps	0.3			—			Interest Expense
Swaps	(2.7		)	—			Other Expense, net
Pre-tax	(4.9		)	3.0
Income taxes	1.9			(0.8		)
	$	(3.0	)	$	2.2
Pension and postretirement items:
Amortization of unrecognized prior service credits - Pre-tax	$	(1.8	)	$	(1.0	)	Selling, general and administrative
Income taxes	0.7			0.4
	$	(1.1	)	$	(0.6	)

Recognition of foreign currency translation adjustments related to business dispositions:
Recognition of foreign currency translation adjustment associated with the sale of our dry cooling business	$	—		$	(40.4	)	Gain on sale of dry cooling business
Recognition of foreign currency translation adjustment associated with the sale our Balcke Dürr business	—			1.4			Gain (loss) on disposition of discontinued operations, net of tax
	$	—		$	(39.0	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

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+ Details

Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Summarized below are the liability (related to the parent company guarantees and bank and surety bonds) and asset (related to the cash collateral and guarantee provided by mutares AG) recorded at the time of sale, along with the change in the liability and the asset during 2017.



	Twelve Months Ended December 31, 2017
	Guarantees and Bonds Liability			Indemnification Assets
Balance as of December 31, 2016 ^{(1) (2)}	$	9.9		$	4.8
Reduction/Amortization for the period ⁽³⁾	(2.5		)	(2.6		)
Impact of changes in foreign currency rates	1.3			0.6
Balance as of December 31, 2017 ⁽²⁾	$	8.7		$	2.8

___________________________

⁽¹⁾


⁽²⁾	Balance associated with the guarantees and bonds is reflected within “Other long-term liabilities,” while the balance associated with the indemnification assets is reflected within “Other assets.”


⁽³⁾	We reduce the liability generally at the earlier of the completion of the related underlying project milestones or the expiration of the guarantees or bonds. We amortize the asset based on the expiration terms of each of the securities. We record the reduction of the liability and the amortization of the asset to “Other expense, net.”

Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly results



	First ⁽⁵⁾					Second ⁽⁵⁾						Third ⁽⁵⁾					Fourth ⁽⁵⁾
	2017		2016			2017			2016			2017		2016			2017			2016
Operating revenues ⁽¹⁾	$	340.6	$	360.6		$	349.7		$	371.4		$	348.5	$	345.0		$	387.0		$	395.3
Gross profit ⁽¹⁾	88.1		89.9			76.1			91.1			85.1		80.8			80.9			114.0
Income (loss) from continuing operations, net of tax ⁽²⁾	10.3		20.2			(8.3		)	6.5			22.0		6.6			60.0			(3.0		)
Income (loss) from discontinued operations, net of tax ⁽³⁾	7.1		(6.6		)	(0.7		)	(3.5		)	0.3		(4.7		)	(1.4		)	(83.1		)
Net income (loss)	17.4		13.6			(9.0		)	3.0			22.3		1.9			58.6			(86.1		)
Less: Net income (loss) attributable to noncontrolling interests	—		0.6			—			(1.0		)	—		—			—			—
Net income (loss) attributable to SPX Corporation common shareholders	17.4		13.0			(9.0		)	4.0			22.3		1.9			58.6			(86.1		)
Adjustment related to redeemable noncontrolling interest ⁽⁴⁾	—		—			—			(18.1		)	—		—			—			—
Net income (loss) attributable to SPX Corporation common shareholders after adjustment related to redeemable noncontrolling interest	$	17.4	$	13.0		$	(9.0	)	$	(14.1	)	$	22.3	$	1.9		$	58.6		$	(86.1	)
Basic income (loss) per share of common stock:
Continuing operations, net of tax	$	0.24	$	0.47		$	(0.19	)	$	(0.25	)	$	0.51	$	0.16		$	1.41		$	(0.07	)
Discontinued operations, net of tax	0.17		(0.16		)	(0.02		)	(0.09		)	0.01		(0.12		)	(0.03		)	(1.99		)
Net income (loss)	$	0.41	$	0.31		$	(0.21	)	$	(0.34	)	$	0.52	$	0.04		$	1.38		$	(2.06	)
Diluted income (loss) per share of common stock:
Continuing operations, net of tax	$	0.24	$	0.47		$	(0.19	)	$	(0.25	)	$	0.50	$	0.16		$	1.35		$	(0.07	)
Discontinued operations, net of tax	0.16		(0.16		)	(0.02		)	(0.09		)	0.01		(0.12		)	(0.03		)	(1.99		)
Net income (loss)	$	0.40	$	0.31		$	(0.21	)	$	(0.34	)	$	0.51	$	0.04		$	1.32		$	(2.06	)

___________________________________________________________________

Note: The sum of the quarters’ income per share may not equal the full year per share amounts.

⁽¹⁾

⁽²⁾

During the second quarter of 2016, we recognized pre-tax actuarial losses of $1.8 associated with certain of our U.S. pension plans. See Note 9 for additional details.

During the third quarter of 2017, we settled a contract that had been suspended and then ultimately cancelled by a customer resulting in a pre-tax gain of $10.2. See Note 5 for additional details.


⁽³⁾	During the fourth quarter of 2016, we recorded a net loss on the sale of Balcke Dürr of $78.6. During the first quarter of 2017, we reduced the net loss by $7.2. During the second quarter of 2017, we increased the net loss by $0.4. See Note 4 for additional details.

⁽⁴⁾

⁽⁵⁾

Basis of Presentation and Summary of Significant Accounting Policies (Detail) shares in Thousands, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)	Oct. 01, 2016 USD ($)	Jul. 02, 2016 USD ($)	Apr. 02, 2016 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($)	Sep. 16, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss incurred	$ (58.6)	$ (22.3)	$ 9.0	$ (17.4)	$ 86.1	$ (1.9)	$ (4.0)	$ (13.0)	$ (89.3)	$ 67.2	$ 82.7
Retirement of treasury stock (in shares) \| shares										0
Amount of retirement of treasury stock										$ 0.0
Foreign Currency Translation and Transactions
Foreign currency transaction net losses									$ 3.3	$ 2.4	8.6
Common Stock In Treasury
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Retirement of treasury stock (in shares) \| shares										50,000
Amount of retirement of treasury stock										$ (2,948.1)
Paid-In Capital
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount of retirement of treasury stock										1,285.4
Retained Earnings (Deficit)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount of retirement of treasury stock										$ 1,662.2
Balcke Durr \| Engineered Solutions segment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss incurred											$ 39.6
SPX Flow, Inc \| Discontinued Operations, Disposed of by Means Other than Sale, Spinoff
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pro rata distribution ratio of common stock received by shareholders as of record date												1

Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) business_unit	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Revenue Recognition [Abstract]
Number of business units in which sales incentive programs are significant \| business_unit	1
Revenues recognized under percentage of completion method	$ 255.5	$ 336.1	$ 361.8
Costs and estimated earnings on uncompleted contracts
Costs incurred on uncompleted contracts	1,261.3	1,191.4
Estimated earnings (loss) to date	(59.9)	25.0
Aggregate costs incurred on uncompleted contracts and estimated earnings to date	1,201.4	1,216.4
Less: Billings to date	(1,202.0)	(1,235.8)
Billings in excess of costs and estimated earnings	(0.6)	(19.4)
Billings in excess of costs and estimated earnings
Costs and estimated earnings in excess of billings	28.8	33.9
Billings in excess of costs and estimated earnings on uncompleted contracts	(29.4)	(53.3)
Net costs and estimated earnings in excess of billings (billings in excess of costs and estimated earnings)	$ (0.6)	$ (19.4)
Minimum
Revenue Recognition [Abstract]
Period for receivables to be collected	1 year

Basis of Presentation and Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Capitalized software, net of amortization	$ 8.3	$ 10.5
Capitalized software amortization expense	2.4	1.2	$ 0.2
Research and development expense	$ 23.3	$ 29.1	$ 28.6

Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation expense, including amortization of capital leases	$ 22.2	$ 22.5	$ 31.8
Interest capitalized	$ 0.0	$ 0.0	$ 0.0
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Useful lives of property, plant and equipment (in years)	40 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Useful lives of property, plant and equipment (in years)	15 years
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Useful lives of property, plant and equipment (in years)	3 years

Use of Estimates (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of year	$ 10.1	$ 9.1	$ 12.9
Allowances provided	13.2	15.7	14.0
Write-offs, net of recoveries, credits issued and other	(13.1)	(14.7)	(17.8)
Balance at end of year	$ 10.2	$ 10.1	$ 9.1

Use of Estimates - Accrued Expenses (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Employee benefits	$ 68.9	$ 69.3
Unearned revenue	100.1	117.8
Warranty	13.8	15.6	$ 17.0
Other	109.8	101.6
Total	$ 292.6	$ 304.3

Use of Estimates - Warranty (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Analysis of product warranty accrual
Balance at beginning of year	$ 35.8	$ 36.3	$ 34.5
Provisions	13.0	15.2	18.1
Usage	(15.4)	(15.5)	(16.0)
Currency translation adjustment	0.5	(0.2)	(0.3)
Balance at end of year	33.9	35.8	36.3
Less: Current portion of warranty	13.8	15.6	17.0
Non-current portion of warranty	$ 20.1	$ 20.2	$ 19.3

Use of Estimates - Narrative (Details) - Discontinued Operations, Disposed of by Sale - Balcke Durr - Subsidiary of matures AG (the Buyer) € in Millions, $ in Millions	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)	Dec. 30, 2016 EUR (€)
Guarantor Obligations [Line Items]
Amount of guarantees	$ 76.1	€ 76.1	€ 79.0
Bank and Surety Bonds
Guarantor Obligations [Line Items]
Amount of guarantees	$ 47.9	€ 47.9	€ 79.0

New Accounting Pronouncements - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in retained deficit	$ (742,300,000)	$ (831,600,000)
Classification of excess income tax benefits on share-based compensation awards within operating activities	47,600,000	$ 6,500,000	$ (38,500,000)
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Classification of excess income tax benefits on share-based compensation awards within operating activities	600,000
Benefit for excess tax benefits related to stock compensation awards	$ (0.6)
Scenario, Forecast [Member] \| Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in retained deficit				$ 6,000,000

Discontinued Operations and Other Dispositions - Sale of Blacke Durr Business (Details) € in Millions, $ in Millions		3 Months Ended	12 Months Ended
	Dec. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2017 EUR (€)	Dec. 30, 2016 EUR (€)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration, exclusive of cash transferred				$ 30.2
Cash transferred with sale of business			$ 0.0	0.0	$ 208.6
Gain (loss) on sale of business, net of tax			(5.3)	$ 81.3	$ 5.2
Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of business, net of tax		$ 78.6
Subsidiary of matures AG (the Buyer) \| Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration, exclusive of cash transferred	$ 0.1
Cash transferred with sale of business	21.1
Gain (loss) on sale of business, net of tax	78.6
Amount of guarantees			76.1			€ 76.1	€ 79.0
Loans Receivable \| Subsidiary of matures AG (the Buyer) \| Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Non-interest bearing loan provided to mutares AG	9.1
Bank and Surety Bonds \| Subsidiary of matures AG (the Buyer) \| Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Amount of guarantees			$ 47.9			47.9	79.0
Guarantees and Bonds \| Subsidiary of matures AG (the Buyer) \| Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of business, net of tax	$ 5.1
Balcke-Durr GmbH \| Subsidiary of matures AG (the Buyer) \| Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash collateral \| €						€ 4.0	€ 4.0

Discontinued Operations and Other Dispositions - Consolidated Statements (Details) - USD ($) $ in Millions	3 Months Ended									12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations										$ 0.0	$ (16.6)	$ 39.8
Income before taxes										(6.6)	(110.7)	65.1
Income tax provision										11.9	12.8	(30.5)
Income (loss) from discontinued operations, net of tax	$ (1.4)	$ 0.3	$ (0.7)	$ 7.1	$ (83.1)	$ (4.7)	$ (3.5)	$ (6.6)		5.3	(97.9)	34.6
Less: Net loss attributable to noncontrolling interest										0.0	0.0	(0.9)
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share										5.3	(97.9)	35.5
SPX Flow, Inc \| Discontinued Operations, Disposed of by Means Other than Sale, Spinoff
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues												1,775.1
Costs of products sold												1,179.3
Selling, general and administrative												368.2
Intangible amortization												17.7
Special charges (credits), net												41.2
Other income (expense), net												1.3
Interest expense, net												(32.6)
Income before taxes										0.0	0.0	122.4
Income tax provision									$ (1.4)	0.0	0.0	(43.0)
Income (loss) from discontinued operations, net of tax										0.0	0.0	79.4
Less: Net loss attributable to noncontrolling interest												(0.9)
Income (loss) from discontinued operations attributable to SPX Corporation common shareholders for calculating basic and diluted income per share												80.3
Depreciation and amortization												44.3
Impairment of intangible assets												15.0
Capital expenditures												43.1
Professional fees and other costs incurred in connection with Spin Off												30.8
Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues											153.4	160.3
Costs of products sold											144.2	143.8
Selling, general and administrative											31.4	37.9
Impairment of intangible assets											0.0	13.7
Special charges (credits), net											(1.3)	12.7
Other expense											(0.2)	(0.9)
Loss before taxes											(21.1)	(48.7)
Income tax benefit										9.4	4.5	9.1
Loss from discontinued operations			$ 0.4	$ 7.2						6.8	(16.6)	(39.6)
Income before taxes										(2.6)	(107.0)	(48.7)
Income tax provision										9.4	11.8	9.1
Income (loss) from discontinued operations, net of tax										$ 6.8	(95.2)	(39.6)
Depreciation and amortization											2.0	2.2
Capital expenditures											$ 0.7	$ 1.9

Discontinued Operations and Other Dispositions - Narrative (Details) - USD ($) $ in Millions			3 Months Ended			12 Months Ended
	Mar. 30, 2016	Sep. 26, 2015	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
2018						$ 8.3
2019						7.9
2020						6.5
2021						4.6
2022						4.4
Cash consideration, exclusive of cash transferred							$ 30.2
Cash transferred with sale of business						0.0	0.0	$ 208.6
Gain (loss) on sale						0.0	18.4	0.0
Other businesses included in discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Adjustment to loss on sale of discontinued operations, net of tax						1.5	2.7	$ 5.2
Dry Cooling Business \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration, exclusive of cash transferred	$ 47.6
Cash transferred with sale of business	3.0
Gain (loss) on sale	18.4		$ 1.7	$ 1.2	$ 17.9		18.4
Amount Reclassified from AOCI \| Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest \| Dry Cooling Business \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale	$ 40.4					0.0	$ 40.4
Office lease associated with corporate headquarters \| SPX Flow, Inc \| Discontinued Operations, Disposed of by Means Other than Sale, Spinoff
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Duration of office lease agreement		5 years
2018						2.1
2019						2.1
2020						2.1
2021						2.1
2022						$ 2.1

Discontinued Operations and Other Dispositions - Results of Operations (Details) - USD ($) $ in Millions	3 Months Ended									12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before taxes										$ (6.6)	$ (110.7)	$ 65.1
Income tax provision										11.9	12.8	(30.5)
Income (loss) from discontinued operations, net of tax	$ (1.4)	$ 0.3	$ (0.7)	$ 7.1	$ (83.1)	$ (4.7)	$ (3.5)	$ (6.6)		5.3	(97.9)	34.6
Balcke Durr \| Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before taxes										(2.6)	(107.0)	(48.7)
Income tax provision										9.4	11.8	9.1
Income (loss) from discontinued operations, net of tax										6.8	(95.2)	(39.6)
SPX Flow, Inc \| Discontinued Operations, Disposed of by Means Other than Sale, Spinoff
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before taxes										0.0	0.0	122.4
Income tax provision									$ (1.4)	0.0	0.0	(43.0)
Income (loss) from discontinued operations, net of tax										0.0	0.0	79.4
ALL Other Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before taxes										(4.0)	(3.7)	(8.6)
Income tax provision										2.5	1.0	3.4
Income (loss) from discontinued operations, net of tax										$ (1.5)	$ (2.7)	$ (5.2)

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Period for selling an asset

Information on Reportable Segments (Details) $ in Millions	3 Months Ended									12 Months Ended
Information on Reportable Segments (Details) $ in Millions	Dec. 31, 2017 USD ($) country	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)	Oct. 01, 2016 USD ($)	Jul. 02, 2016 USD ($)	Apr. 02, 2016 USD ($)	Sep. 26, 2015 USD ($)	Dec. 31, 2017 USD ($) country segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Business segment
Number of countries in which entity operates \| country	15									15
Number of reportable segments \| segment										3
Revenues:
Revenues	$ 387.0	$ 348.5	$ 349.7	$ 340.6	$ 395.3	$ 345.0	$ 371.4	$ 360.6		$ 1,425.8	$ 1,472.3	$ 1,559.0
Income (loss):
Pension and other employee benefits										14.9	24.8	35.2
Special charges, net										2.7	5.3	5.1
Gain (loss) on sale										0.0	18.4	0.0
Operating income (loss)										54.8	55.0	(122.2)
Capital expenditures:
Total capital expenditures										11.0	11.7	16.0
Depreciation and amortization:
Total depreciation and amortization										25.2	26.5	37.0
Identifiable assets:
Total identifiable assets	2,040.4				1,912.5					2,040.4	1,912.5	2,179.3
Tangible Long-Lived Assets:
Total tangible long-lived assets	944.4				926.6					944.4	926.6	912.1
Gain on contract settlement										10.2	0.0	0.0
United States
Revenues:
Revenues										1,243.3	1,235.2	1,255.4
China
Revenues:
Revenues										28.0	33.5	83.6
South Africa
Revenues:
Revenues										56.9	105.4	54.2
United Kingdom
Revenues:
Revenues										60.8	59.1	69.6
Other
Revenues:
Revenues										36.8	39.1	96.2
Continuing operations
Tangible Long-Lived Assets:
Total tangible long-lived assets	944.4				926.6					944.4	926.6	876.3
Continuing operations \| United States
Tangible Long-Lived Assets:
Total tangible long-lived assets	919.6				897.0					919.6	897.0	835.9
Continuing operations \| Other
Tangible Long-Lived Assets:
Total tangible long-lived assets	24.8				29.6					24.8	29.6	40.4
Discontinued operations
Identifiable assets:
Total identifiable assets	0.0				0.0					0.0	0.0	120.0
Tangible Long-Lived Assets:
Total tangible long-lived assets	0.0				0.0					0.0	0.0	35.8
Reportable and other operating segments
Income (loss):
Operating income (loss)										124.9	142.8	38.8
General corporate
Income (loss):
Corporate expense										46.2	41.7	103.4
Special charges, net										0.1		1.1
Capital expenditures:
Total capital expenditures										1.9	2.6	4.4
Depreciation and amortization:
Total depreciation and amortization										3.1	2.5	8.9
Identifiable assets:
Total identifiable assets	457.7				390.6					457.7	390.6	371.2
Segment reconciling items
Income (loss):
Pension and other employee benefits										5.4	15.4	18.6
Long-term incentive compensation expense										15.8	13.7	33.9
Impairment of intangible and other long-term assets										0.0	30.1	0.0
Special charges, net										2.7	5.3	5.1
Gain (loss) on sale										0.0	18.4	0.0
HVAC segment
Revenues:
Revenues										511.0	509.5	529.1
HVAC segment \| Reportable and other operating segments
Income (loss):
Special charges, net										0.4		1.1
Operating income (loss)										74.1	80.2	80.2
Capital expenditures:
Total capital expenditures										2.2	1.9	2.3
Depreciation and amortization:
Total depreciation and amortization										5.5	5.3	4.6
Identifiable assets:
Total identifiable assets	747.1				710.1					747.1	710.1	623.0
Detection and Measurement segment
Revenues:
Revenues										260.3	226.4	232.3
Detection and Measurement segment \| Reportable and other operating segments
Income (loss):
Special charges, net										0.3	0.8	0.9
Operating income (loss)										63.4	45.3	46.0
Capital expenditures:
Total capital expenditures										0.8	0.7	1.2
Depreciation and amortization:
Total depreciation and amortization										4.1	3.5	2.8
Identifiable assets:
Total identifiable assets	277.8				244.2					277.8	244.2	256.5
Engineered Solutions segment
Revenues:
Revenues										654.5	736.4	797.6
Tangible Long-Lived Assets:
Proceeds from Contract Termination		9.0
Gain on contract settlement		$ 10.2
Engineered Solutions segment \| Reportable and other operating segments
Income (loss):
Special charges, net										1.9	4.5	2.0
Operating income (loss)										(12.6)	17.3	(87.4)
Capital expenditures:
Total capital expenditures										6.1	6.5	8.1
Depreciation and amortization:
Total depreciation and amortization										12.5	15.2	20.7
Identifiable assets:
Total identifiable assets	$ 557.8				$ 567.6					$ 557.8	$ 567.6	808.6
Minimum
Business segment
Number of countries in which entity sells its products and services \| country	100									100
Large Power Projects \| Revisions in estimates for large power projects \| South Africa
Revenues:
Revenues									$ (57.2)			$ (57.2)
Income (loss):
Operating income (loss)									$ (95.0)
Large Power Projects \| Revisions in estimates for large power projects \| Engineered Solutions segment \| Reportable and other operating segments \| South Africa
Revenues:
Revenues	$ (23.4)		(13.5)							$ (36.9)
Income (loss):
Operating income (loss)	$ (29.9)		$ (22.9)							$ (52.8)

Special Charges, Net (Details)
$ in Millions

12 Months Ended

Dec. 31, 2017

USD ($)

employee

Dec. 31, 2016

USD ($)

employee

Dec. 31, 2015

USD ($)

employee

Special charges, net

1 year

Period for settling liabilities

1 year

Facility Consolidation Costs

$ 2.5

$ 1.7

$ 4.5

0.0

0.2

Other Cash Costs, Net

0.2

0.0

0.1

0.0

3.6

0.3

Balance at beginning of year

2.7

5.3

5.1

Asset impairment charges

0.0

30.1

0.0

Restructuring liabilities

0.9

1.6

1.7

Special charges

^[1]

2.7

1.7

4.8

Utilization — cash

(3.0)

(2.1)

(5.1)

Currency translation adjustment and other

0.0

(0.3)

0.2

Balance at the end of year

0.6

0.9

1.6

Asset impairment charges

0.0

$ 3.6

0.3

Corporate

0.1

1.1

Number of employees expected to be terminated | employee

$ 0.1

$ 1.1

HVAC segment

Number of employees terminated | employee

HVAC segment | Reportable and other operating segments

Facility Consolidation Costs

$ 0.4

$ 0.9

0.1

Other Cash Costs, Net

(0.2)

0.3

Detection and Measurement segment

$ 0.4

$ 1.1

Number of employees terminated | employee

Detection and Measurement segment | Reportable and other operating segments

$ 0.3

$ 0.5

$ 0.9

0.3

Engineered Solutions segment

$ 0.3

$ 0.8

$ 0.9

Number of employees terminated | employee

134

Number of employees expected to be terminated | employee

111

Engineered Solutions segment | Reportable and other operating segments

Facility Consolidation Costs

$ 1.7

$ 1.2

$ 1.6

0.1

Other Cash Costs, Net

0.2

0.3

3.3

Engineered Solutions segment | SPX Heat Transfer Business

$ 1.9

4.5

$ 2.0