Our effective tax rate is affected by a number of items, both recur- ring and discrete, including the amount of income we earn in different jurisdictions and their respective statutory tax rates, acquisitions and dispositions, changes in the valuation of our deferred tax assets and liabilities, changes in tax laws, regulations and accounting principles, the continued availability of statutory tax credits and deductions, the continued reinvestment of our overseas earnings, and examinations initiated by tax authorities around the world. See Application of Critical Accounting Policies included later in this Item 7 for additional information about our provision for income taxes. The following table presents our income (loss) from continuing operations before taxes, provision (benefit) for income taxes from continuing operations, and effective tax rate from continuing operations for the last three years: softer commercial building construction end market in the United Kingdom. Crane Pumps & Systems sales increased $10 million, or 14%, to $83 million in 2011 from $73 million in 2010, reflecting increased demand from our industrial and municipal markets. Crane Supply revenue increased $18 million to $194 million in 2011, or 10%, from $176 million in 2010 due to favorable foreign exchange as the Canadian dollar strengthened against the U.S. dol- lar and higher sales volumes. The increase in volumes was due to increases in non-residential building construction in Canada and demand from certain industrial customers such as mining. Fluid Handling operating profit increased $28 million, or 23%, compared to 2010. The increase in operating profit was primarily driven by leverage on the higher core sales and, to a lesser extent, the impact of favorable foreign exchange, partially offset by higher raw material costs. 2012comparedwith2011. Controls segment sales of $94 million increased $6 million, or 6%, in 2012 compared with 2011. The sales increase reflects improvement in transportation and oil and gas related demand. Segment operating profit of $13 million increased $2 million, or 14%, reflecting leverage on the higher sales and productivity gains. 2011comparedwith2010. Controls segment sales of $88 million increased $4 million, or 5%, in 2011 compared with 2010. The sales increase reflects improvement in industrial, transportation, and upstream oil and gas end markets. Segment operating profit of $11 million increased $6 million, or 121%, reflecting the leverage on the higher sales and the absence of losses from businesses divested in 2010. The tax benefit associated with our 2011 charges for asbestos and environmental was the most significant reason our effective tax rate from continuing operations was negative in 2011. Further, these 2011 charges reduced our income before tax from continuing oper- ations to such a level that all our 2011 tax adjustments had a larger impact on our 2011 effective tax rate from continuing operations than they otherwise would have. Our effective rate from continuing operations of 31.1% for 2012 reflected a tax provision on pre-tax income from continuing oper- ations, while our effective tax rate from continuing operations of (55.3%) for 2011 reflected a tax benefit on pre-tax income from continuing operations. When compared to our 2011 effective tax rate from continuing operations, our 2012 effective tax rate from continuing operations reflects a lower benefit from both non-U.S. taxes and the U.S. federal research and development tax credit (due to its statutory expiration as of December 31, 2011), and higher state taxes. These items were partially offset by a higher tax benefit from domestic manufacturing activities and a lower amount of non-deductible expenses. 2012comparedwith2011. Total Corporate decreased $265 million in 2012 due to the absence of a provision of $242 million to update and extend the estimate of our asbestos liability and an environ- mental provision of $30 million related to our expected liability at our Goodyear, Arizona Superfund Site, partially offset by higher corporate expenses, which included $3.9 million of acquisition related transaction costs recorded in 2012. 2011comparedwith2010. Total Corporate increased $281 million in 2011 due to 1) a provision of $242 million to update and extend the estimate of our asbestos liability, 2) an environmental provision of $30 million related to our expected liability at our Goodyear, Arizona Superfund Site and 3) an increase of $9 million primarily related to higher compensation and benefit costs and professional fees. A reconciliation of the statutory U.S. federal tax rate to our effective tax rate is set forth in Note 3 of the Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. CORPORATE (in millions, except %) 2012 2011 2010 Corporate expense $(65) $ (58) $(49) Corporate expense — Asbestos — (242) — Corporate expense — Environmental — (30) — Total Corporate (65) (330) (49) Interest income 2 2 1 Interest expense (27) (26) (27) Miscellaneous (1) 3 1 (in millions, except %) 2012 2011 2010 Income (loss) before tax — U.S. $ 175 $ (121) $ 103 Income before tax — non-U.S. 110 136 106 Income before tax — worldwide 285 15 209 Provision (benefit) for income taxes 88 (8) 56 Effective tax rate 31.1% (55.3)% 26.8% (in millions, except %) 2012 2011 2010 Net Sales $9 4 $8 8 Operating Profit 13 11 5 Assets 39 64 67 Operating Margin 13.6% 12.7% 6.0% CONTROLS part iI / item 7 23