Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 (1)\ue000 has\ue000 filed\ue000 all\ue000 reports\ue000 required\ue000 to\ue000 be\ue000 filed\ue000 by\ue000 Section\ue000 13\ue000 or\ue000 15(d)\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act of\ue000 1934\ue000 during\ue000 the\ue000 preceding\ue000 12\ue000 months\ue000 (or\ue000 for\ue000 such\ue000 shorter\ue000 period\ue000 that\ue000 the\ue000 registrant\ue000 was\ue000 required\ue000 to\ue000 file\ue000 such\ue000 reports),\ue000 and\ue000 (2)\ue000 has\ue000 been subject\ue000 to\ue000 such\ue000 filing\ue000 requirements\ue000 for\ue000 the\ue000 past\ue000 90\ue000 days.\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\u02db Yes\ue000\ue000\ue000\ue000\u00ae No.

Indicate\ue000 by\ue000 check\ue000 mark\ue000 if\ue000 disclosure\ue000 of\ue000 delinquent\ue000 filers\ue000 pursuant\ue000 to\ue000 Item\ue000 405\ue000 of\ue000 Regulation\ue000 S-K\ue000 (\u00a7229.405\ue000 of\ue000 this\ue000 chapter)\ue000 is\ue000 not\ue000 contained
herein,\ue000 and\ue000 will\ue000 not\ue000 be\ue000 contained,\ue000 to\ue000 the\ue000 best\ue000 of\ue000 registrant\u2019s\ue000 knowledge,\ue000 in\ue000 definitive\ue000 proxy\ue000 or\ue000 information\ue000 statements\ue000 incorporated\ue000 by\ue000 reference
in\ue000 Part\ue000 III\ue000 of\ue000 this\ue000 Form\ue000 10-K\ue000 or\ue000 any\ue000 amendment\ue000 to\ue000 this\ue000 Form\ue000 10-K.\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\u02db

Indicate\ue000 by\ue000 check\ue000 mark\ue000 whether\ue000 the\ue000 registrant\ue000 is\ue000 a\ue000 large\ue000 accelerated\ue000 filer,\ue000 an\ue000 accelerated\ue000 filer,\ue000 or\ue000 a\ue000 non-accelerated\ue000 filer.\ue000 See\ue000 definition\ue000 of
\u201caccelerated\ue000 filer\ue000 and\ue000 large\ue000 accelerated\ue000 filer\u201d\ue000 in\ue000 Rule\ue000 12b-2\ue000 of\ue000 the\ue000 Exchange\ue000 Act.\ue000 (Check\ue000 one):
Large\ue000 accelerated\ue000 filer\ue000\ue000\ue000\ue000\u02db \ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 Accelerated\ue000 filer\ue000\ue000\ue000\ue000\u00ae \ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000\ue000 Non-accelerated\ue000 filer\ue000\ue000\ue000\ue000\u00ae

Portions\ue000 of\ue000 the\ue000 company\u2019s\ue000 definitive\ue000 Proxy\ue000 Statement\ue000 for\ue000 the\ue000 2009\ue000 Annual\ue000 Meeting\ue000 of\ue000 Stockholders\ue000 (to\ue000 be\ue000 filed\ue000 with\ue000 the\ue000 Securities\ue000 and Exchange\ue000 Commission\ue000 under\ue000 Regulation\ue000 14A\ue000 within\ue000 120\ue000 days\ue000 after\ue000 the\ue000 end\ue000 of\ue000 the\ue000 registrant\u2019s\ue000 fiscal\ue000 year\ue000 and,\ue000 upon\ue000 such\ue000 filing,\ue000 to\ue000 be incorporated\ue000 by\ue000 reference\ue000 in\ue000 Part\ue000 III).

We\ue000 are\ue000 a\ue000 leading\ue000 manufacturer\ue000 of\ue000 water\ue000 heating\ue000 equipment\ue000 and\ue000 electric\ue000 motors,\ue000 serving\ue000 a\ue000 diverse\ue000 mix\ue000 of\ue000 residential,\ue000 commercial\ue000 and\ue000 industrial end\ue000 markets\ue000 principally\ue000 in\ue000 the\ue000 United\ue000 States\ue000 with\ue000 a\ue000 growing\ue000 international\ue000 presence.\ue000 Our\ue000 company\ue000 is\ue000 comprised\ue000 of\ue000 two\ue000 reporting\ue000 segments: Water\ue000 Products\ue000 and\ue000 Electrical\ue000 Products.\ue000 Our\ue000 Water\ue000 Products\ue000 business\ue000 manufactures\ue000 and\ue000 markets\ue000 a\ue000 comprehensive\ue000 line\ue000 of\ue000 residential\ue000 gas\ue000 and electric\ue000 water\ue000 heaters,\ue000 standard\ue000 and\ue000 specialty\ue000 commercial\ue000 water\ue000 heating\ue000 equipment,\ue000 high-efficiency\ue000 copper-tube\ue000 boilers,\ue000 and\ue000 water\ue000 systems tanks.\ue000 Our\ue000 Electrical\ue000 Products\ue000 business\ue000 manufactures\ue000 and\ue000 markets\ue000 a\ue000 comprehensive\ue000 line\ue000 of\ue000 hermetic\ue000 motors,\ue000 fractional\ue000 horsepower\ue000 alternating current\ue000 (AC)\ue000 and\ue000 direct\ue000 current\ue000 (DC)\ue000 motors.\ue000 In\ue000 2008,\ue000 we\ue000 had\ue000 net\ue000 sales\ue000 of\ue000 approximately\ue000 $2.3\ue000 billion,\ue000 with\ue000 63\ue000 percent\ue000 attributable\ue000 to\ue000 our\ue000 Water Products\ue000 business\ue000 and\ue000 37\ue000 percent\ue000 attributable\ue000 to\ue000 our\ue000 Electrical\ue000 Products\ue000 business.

The\ue000 following\ue000 table\ue000 summarizes\ue000 our\ue000 sales\ue000 by\ue000 reporting\ue000 segment.\ue000 This\ue000 segment\ue000 summary\ue000 and\ue000 all\ue000 other\ue000 information\ue000 presented\ue000 in\ue000 this\ue000 section should\ue000 be\ue000 read\ue000 in\ue000 conjunction\ue000 with\ue000 the\ue000 Consolidated\ue000 Financial\ue000 Statements\ue000 and\ue000 Notes\ue000 to\ue000 Consolidated\ue000 Financial\ue000 Statements,\ue000 which\ue000 appear\ue000 in Item\ue000 8\ue000 in\ue000 this\ue000 document.

gallon\ue000 appliances\ue000 with\ue000 varying\ue000 efficiency\ue000 ranges.\ue000 We\ue000 offer\ue000 electric,\ue000 natural\ue000 gas\ue000 and\ue000 liquid\ue000 propane\ue000 models\ue000 as\ue000 well\ue000 as\ue000 solar\ue000 booster\ue000 tanks\ue000 and gas\ue000 tankless\ue000 units\ue000 for\ue000 today\u2019s\ue000 energy\ue000 efficient\ue000 homes.\ue000 North\ue000 American\ue000 residential\ue000 water\ue000 heater\ue000 sales\ue000 in\ue000 2008\ue000 were\ue000 approximately\ue000 $945\ue000 million\ue000 or 65\ue000 percent\ue000 of\ue000 segment\ue000 revenues.

A\ue000 significant\ue000 portion\ue000 of\ue000 our\ue000 Water\ue000 Products\ue000 business\ue000 is\ue000 derived\ue000 from\ue000 the\ue000 replacement\ue000 of\ue000 existing\ue000 product,\ue000 and\ue000 it\ue000 is\ue000 believed\ue000 that\ue000 the\ue000 sale\ue000 of product\ue000 to\ue000 the\ue000 North\ue000 American\ue000 residential\ue000 new\ue000 housing\ue000 construction\ue000 market\ue000 represents\ue000 approximately\ue000 15\ue000 percent\ue000 of\ue000 the\ue000 segment\u2019s\ue000 total residential\ue000 water\ue000 heater\ue000 sales.\ue000 Our\ue000 Water\ue000 Products\ue000 business\ue000 also\ue000 manufactures\ue000 copper-tube\ue000 boilers\ue000 and\ue000 expansion\ue000 tanks\ue000 and\ue000 related\ue000 products and\ue000 parts.

We\ue000 are\ue000 the\ue000 largest\ue000 manufacturer\ue000 and\ue000 marketer\ue000 of\ue000 water\ue000 heaters\ue000 in\ue000 North\ue000 America,\ue000 and\ue000 we\ue000 have\ue000 a\ue000 leading\ue000 share\ue000 in\ue000 both\ue000 the\ue000 residential\ue000 and commercial\ue000 segments\ue000 of\ue000 the\ue000 market.\ue000 In\ue000 the\ue000 commercial\ue000 market\ue000 segment,\ue000 we\ue000 believe\ue000 our\ue000 comprehensive\ue000 product\ue000 line,\ue000 as\ue000 well\ue000 as\ue000 our\ue000 high- efficiency\ue000 products,\ue000 give\ue000 us\ue000 a\ue000 competitive\ue000 advantage\ue000 in\ue000 this\ue000 higher-margin\ue000 segment\ue000 of\ue000 the\ue000 water\ue000 heating\ue000 industry.\ue000 As\ue000 the\ue000 leader\ue000 in\ue000 the residential\ue000 water\ue000 heating\ue000 market\ue000 segment,\ue000 we\ue000 offer\ue000 an\ue000 extensive\ue000 line\ue000 of\ue000 high-efficiency\ue000 gas\ue000 and\ue000 electric\ue000 models.