0000029905
us-gaap:CommonStockAtParValueMember
2009-01-01 2009-06-30
0000029905
us-gaap:TreasuryStockMember
2009-06-30
0000029905 us-gaap:RetainedEarningsMember
2009-06-30
0000029905 us-gaap:CommonStockAtParValueMember
2009-06-30
0000029905 us-gaap:AdditionalPaidInCapitalMember
2009-06-30
0000029905
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-06-30
0000029905 us-gaap:TreasuryStockMember
2008-12-31
0000029905 us-gaap:RetainedEarningsMember
2008-12-31
0000029905 us-gaap:CommonStockAtParValueMember
2008-12-31
0000029905 us-gaap:AdditionalPaidInCapitalMember
2008-12-31
0000029905
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2008-12-31
0000029905 us-gaap:RetainedEarningsMember
2009-01-01 2009-06-30
0000029905
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2009-01-01 2009-06-30
0000029905
2007-12-31 0000029905 us-gaap:AdditionalPaidInCapitalMember
2009-01-01 2009-06-30
0000029905
2009-06-30 0000029905
2008-12-31 0000029905
2009-04-01 2009-06-30
0000029905
2008-04-01 2008-06-30
0000029905
2008-01-01 2008-06-30
0000029905
2008-06-30 0000029905
2009-07-17 0000029905
2009-01-01 2009-06-30
iso4217:USD xbrli:shares
xbrli:shares
iso4217:USD
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 1 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-->
<!-- XBRL,ns --> <div style="font-family: Helvetica,Arial,sans-serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div> <div align="left"> </div> <div align="center"
style="font-size: 10pt"><b></b></div> <div align="center"
style="font-size: 10pt"><b></b></div> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><u><b>1. Basis of
Presentation</b></u> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">The accompanying unaudited condensed consolidated
financial statements, in accordance with Securities and Exchange Commission
(“SEC”) rules for interim periods, do not include all
of the information and notes required by accounting principles generally accepted
in the United States of America for complete financial statements and should
be read in conjunction with the Dover Corporation (“Dover”
or the “Company”) Annual Report on Form 10-K for the year
ended December 31, 2008, which provides a more complete understanding
of Dover’s accounting policies, financial position, operating results,
business properties and other matters. The year-end condensed consolidated
balance sheet was derived from audited financial statements. It is the opinion
of management that these financial statements reflect all adjustments necessary
for a fair statement of the interim results. The results of operations of
any interim period are not necessarily indicative of the results of operations
for the full year. </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">Certain prior year amounts have been reclassified to conform
with the current period presentation. </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 2 - us-gaap:BusinessCombinationDisclosureTextBlock--> <div
style="font-family: Helvetica,Arial,sans-serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><u><b>2. Acquisitions</b></u>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
2009 acquisition is wholly-owned and had an aggregate cost of $34.3 million,
net of cash acquired, at the date of acquisition. The following table details
the acquisition made during 2009. </div> <div align="center">
<table style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="9%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="19%"> </td> <td width="3%"> </td>
<td width="6%"> </td> <td width="3%"> </td>
<td width="17%"> </td> <td width="3%"> </td>
<td width="18%"> </td> <td width="3%"> </td>
<td width="10%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td nowrap="nowrap" align="left" colspan="13"
style="border-bottom: 0px solid #000000"><b><i>2009 Acquisition</i></b></td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left"> <div style="border-bottom: 1px solid #000000; width: 0%"><b>Date</b>
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> <div style="border-bottom: 1px solid #000000; width: 0%"><b>Type</b>
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> <div style="border-bottom: 1px solid #000000; width: 0%"><b>Acquired
Companies</b> </div></td> <td> </td>
<td nowrap="nowrap" align="left"> <div style="border-bottom: 1px
solid #000000; width: 0%"><b>Location (Near)</b> </div></td>
<td> </td> <td nowrap="nowrap" align="left"> <div
style="border-bottom: 1px solid #000000; width: 0%"><b>Segment</b>
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> <div style="border-bottom: 1px solid #000000; width: 0%"><b>Platform</b>
</div></td> <td> </td> <td nowrap="nowrap"
align="left"> <div style="border-bottom: 1px solid #000000; width: 0%"><b>Company</b>
</div></td> </tr> <!-- End Table Head --> <!--
Begin Table Body --> <tr valign="bottom"><!-- Blank Space -->
<td valign="top"> <div style="margin-left:0px; text-indent:-0px"> 
</div></td> <td> </td> <td align="left"
valign="top"> </td> <td> </td> <td
align="left" valign="top"> </td> <td> </td>
<td align="left" valign="top"> </td> <td> </td>
<td align="left" valign="top"> </td> <td> </td>
<td align="left" valign="top"> </td> <td> </td>
<td align="left" valign="top"> </td> </tr> <tr
valign="bottom"> <td valign="top"> <div style="margin-left:0px;
text-indent:-0px">8-May </div></td> <td> </td>
<td align="left" valign="top">Asset </td> <td> </td>
<td align="left" valign="top">Tyler Refrigeration </td> <td> </td>
<td align="left" valign="top">Niles, MI </td> <td> </td>
<td align="left" valign="top">Engineered Systems </td> <td> </td>
<td align="left" valign="top">Engineered Products </td> <td> </td>
<td align="left" valign="top">Hill PHOENIX</td> </tr> <!--
End Table Body --> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">For the Tyler acquisition, the Company is in the
process of finalizing an appraisal of tangible and intangible assets and continuing
to evaluate the initial purchase price allocations as of the acquisition date,
which will be adjusted as additional information relative to the fair values
of the assets and liabilities of the business becomes known. Accordingly,
management has used its best estimate in the initial purchase price allocation
as of the date of these financial statements. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The following unaudited pro forma
information illustrates the effect on Dover’s revenue and net earnings
for the three and six months ended June 30, 2009 and 2008, assuming
that the 2009 and 2008 acquisitions had all taken place on January 1,
2008. </div> <div align="center"> <table style="font-size:
10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!--
Begin Table Head --> <tr valign="bottom"> <td width="46%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="7%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="7%"> </td> <td width="1%"> </td>
<td width="6%"> </td> <td width="1%"> </td>
<td width="7%"> </td> <td width="1%"> </td>
<td width="4%"> </td> <td width="1%"> </td>
<td width="7%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 0px solid #000000"><b>Three Months Ended June
30,</b></td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7" style="border-bottom: 0px solid #000000"><b>Six
Months Ended June 30,</b></td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"><i>(in thousands, except per share figures)</i></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid
#000000"><b>2009</b></td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000"><b>2008</b></td> <td style="border-bottom:
1px solid #000000"> </td> <td nowrap="nowrap" align="center"
colspan="3" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>2008</b></td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Revenue from continuing operations:
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">As
reported </div></td> <td> </td> <td align="right">$</td>
<td align="right">1,390,331</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">2,010,978</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">2,769,417</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">3,876,464</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Pro forma </div></td>
<td> </td> <td> </td> <td align="right">1,411,800</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,067,430</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,845,155</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4,000,384</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Net earnings from continuing operations: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">As
reported </div></td> <td> </td> <td align="right">$</td>
<td align="right">100,874</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">186,910</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">161,969</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">334,841</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Pro forma </div></td> <td> </td>
<td> </td> <td align="right">101,200</td>
<td> </td> <td> </td> <td> </td>
<td align="right">189,123</td> <td> </td>
<td> </td> <td> </td> <td align="right">163,118</td>
<td> </td> <td> </td> <td> </td>
<td align="right">340,223</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Basic earnings per
share from continuing operations: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">As reported </div></td> <td> </td>
<td align="right">$</td> <td align="right">0.54</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">0.99</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">0.87</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">1.76</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Pro forma </div></td>
<td> </td> <td> </td> <td align="right">0.54</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.00</td> <td> </td> <td> </td>
<td> </td> <td align="right">0.88</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.78</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Diluted earnings per
share from continuing operations: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">As reported </div></td>
<td> </td> <td align="right">$</td> <td
align="right">0.54</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">0.98</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">0.87</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.74</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Pro forma </div></td>
<td> </td> <td> </td> <td align="right">0.54</td>
<td> </td> <td> </td> <td> </td>
<td align="right">0.99</td> <td> </td> <td> </td>
<td> </td> <td align="right">0.88</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.77</td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">These pro forma results of operations have been prepared for comparative
purposes only and include certain adjustments to actual financial results
for the relevant periods, such as imputed financing costs, and estimated additional
amortization and depreciation expenses as a result of intangibles and fixed
assets acquired. They do not purport to be indicative of the results of operations
that actually would have resulted had the acquisitions occurred on the date
indicated or that may result in the future. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">In connection with certain acquisitions
that occurred prior to January 1, 2009, the Company had reserves
related to severance and facility closings of $26.4 million and $27.9 million
at June 30, 2009 and December 31, 2008, respectively. The
reserves were recorded as of the date of acquisition and in accordance with
the provisions of Emerging Issues Task Force Issue No. 95-3, “Recognition
of Liabilities in Connection with a Purchase Business Combination.”
During the six months ended June 30, 2009, the reserves were reduced by payments
of $1.7 million. </div> <!-- Folio --> <!-- /Folio
--> </div> <!-- PAGEBREAK --> <div style="font-family: Helvetica,Arial,sans-serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"> <b>
</b> </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 3 - us-gaap:InventoryDisclosureTextBlock--> <div style="font-family:
Helvetica,Arial,sans-serif"> <div align="left" style="font-size: 10pt;
margin-top: 12pt"><u><b>3. Inventory</b></u> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following
table displays the components of inventory: </div> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="68%"> </td> <td width="5%"> </td>
<td width="1%">       </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>At
June 30,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>At December
31,</b></td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"><i>(in thousands)</i></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid
#000000"><b>2009</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Raw
materials </div></td> <td> </td> <td align="left">$</td>
<td align="right">305,493</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">319,407</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Work
in progress </div></td> <td> </td> <td> </td>
<td align="right">139,707</td> <td> </td>
<td> </td> <td> </td> <td align="right">144,017</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Finished
goods </div></td> <td> </td> <td> </td>
<td align="right">201,775</td> <td> </td>
<td> </td> <td> </td> <td align="right">231,507</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Subtotal</b>
</div></td> <td> </td> <td> </td>
<td align="right">646,975</td> <td> </td>
<td> </td> <td> </td> <td align="right">694,931</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Less
LIFO reserve </div></td> <td> </td> <td> </td>
<td align="right">54,815</td> <td> </td>
<td> </td> <td> </td> <td align="right">58,810</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">592,160</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">636,121</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td colspan="9"> </td> </tr>
</table> </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 4 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif"> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <tr valign="bottom"> <td colspan="9"> <div
align="left" style="font-size: 10pt; margin-top: 12pt"><u><b>4.
Property, Plant and Equipment</b></u> </div> </td></tr>
<tr valign="bottom"> <td colspan="9"> <div align="left" style="font-size:
10pt; margin-top: 6pt">The following table displays the components of property,
plant and equipment: </div> </td> </tr> <tr style="font-size:
10pt"> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>At June 30,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>At December 31,</b></td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"><i>(in thousands)</i></td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Land
</div></td> <td> </td> <td align="left">$</td>
<td align="right">49,267</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">49,015</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Buildings
and improvements </div></td> <td> </td> <td> </td>
<td align="right">546,856</td> <td> </td>
<td> </td> <td> </td> <td align="right">547,223</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Machinery,
equipment and other </div></td> <td> </td>
<td> </td> <td align="right">1,811,051</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,792,615</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td align="right">2,407,174</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,388,853</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated
depreciation </div></td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(1,557,708</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(1,516,719</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">849,466</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">872,134</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 5 - us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><u><b>5. Goodwill
and Other Intangible Assets </b></u> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The following table provides the
changes in carrying value of goodwill by segment through the six months ended
June 30, 2009: </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="1%">       </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>adjustments,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>Goodwill from</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>including</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>At December
31,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>currency</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>At
June 30,</b></td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><i>(in
thousands)</i></td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>2008</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>acquisition</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>translations</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr style="font-size: 1px"> <td colspan="17"
align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Electronic Technologies
</div></td> <td> </td> <td align="left"><b>$</b></td>
<td align="right"><b>976,706</b></td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">265</td>
<td> </td> <td> </td> <td align="left"><b>$</b></td>
<td align="right"><b>976,971</b></td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Industrial Products </div></td> <td> </td>
<td> </td> <td align="right"><b>919,215</b></td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(1,669</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right"><b>917,546</b></td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fluid
Management </div></td> <td> </td> <td> </td>
<td align="right"><b>571,221</b></td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">874</td> <td> </td> <td> </td>
<td> </td> <td align="right"><b>572,095</b></td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Engineered Systems
</div></td> <td> </td> <td> </td>
<td align="right"><b>788,424</b></td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,467</td> <td> </td> <td> </td>
<td> </td> <td align="right"><b>789,891</b></td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> </td> <td> </td> <td colspan="15"
align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td> <td> </td> <td align="left"><b>$</b></td>
<td align="right"><b>3,255,566</b></td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">937</td>
<td> </td> <td> </td> <td align="left"><b>$</b></td>
<td align="right"><b>3,256,503</b></td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> </td>
<td> </td> <td colspan="15" align="left" style="border-top:
3px double #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <!-- Folio --> <!-- /Folio
--> </div> <!-- PAGEBREAK --> <div style="font-family: Helvetica,Arial,sans-serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"> <b>
</b> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">The following table provides the gross carrying value and accumulated
amortization for each major class of intangible asset: </div> <div
align="center"> <table style="font-size: 10pt" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="40%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> <td width="5%"> </td>
<td width="1%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000"><b>At June 30, 2009</b></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>At
December 31, 2008</b></td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Average</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross Carrying</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>Accumulated</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Life</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>Gross Carrying</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2"><b>Accumulated</b></td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 1px solid #000000"><i>(dollar
amounts in thousands)</i></td> <td style="border-bottom: 1px
solid #000000"> </td> <td nowrap="nowrap" align="center"
colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Years)</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amount</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Amortization</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Amortized
Intangible Assets:</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Trademarks </div></td>
<td> </td> <td align="left">$</td> <td
align="right">66,949</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">14,330</td>
<td> </td> <td> </td> <td> </td>
<td align="right">15</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">32,223</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">12,453</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Patents </div></td>
<td> </td> <td> </td> <td align="right">128,686</td>
<td> </td> <td> </td> <td> </td>
<td align="right">82,746</td> <td> </td>
<td> </td> <td> </td> <td align="right">13</td>
<td> </td> <td> </td> <td> </td>
<td align="right">129,233</td> <td> </td>
<td> </td> <td> </td> <td align="right">79,241</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Customer Intangibles
</div></td> <td> </td> <td> </td>
<td align="right">689,296</td> <td> </td>
<td> </td> <td> </td> <td align="right">233,041</td>
<td> </td> <td> </td> <td> </td>
<td align="right">9</td> <td> </td> <td> </td>
<td> </td> <td align="right">681,636</td>
<td> </td> <td> </td> <td> </td>
<td align="right">200,169</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Unpatented Technologies
</div></td> <td> </td> <td> </td>
<td align="right">133,564</td> <td> </td>
<td> </td> <td> </td> <td align="right">67,963</td>
<td> </td> <td> </td> <td> </td>
<td align="right">9</td> <td> </td> <td> </td>
<td> </td> <td align="right">129,303</td>
<td> </td> <td> </td> <td> </td>
<td align="right">61,871</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Non-Compete Agreements </div></td> <td> </td>
<td> </td> <td align="right">3,479</td> <td> </td>
<td> </td> <td> </td> <td align="right">3,414</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5</td> <td> </td> <td> </td>
<td> </td> <td align="right">3,475</td> <td> </td>
<td> </td> <td> </td> <td align="right">3,400</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Drawings
& Manuals </div></td> <td> </td>
<td> </td> <td align="right">13,718</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5,995</td> <td> </td> <td> </td>
<td> </td> <td align="right">5</td> <td> </td>
<td> </td> <td> </td> <td align="right">13,653</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5,441</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Distributor
Relationships </div></td> <td> </td> <td> </td>
<td align="right">73,211</td> <td> </td>
<td> </td> <td> </td> <td align="right">19,048</td>
<td> </td> <td> </td> <td> </td>
<td align="right">20</td> <td> </td> <td> </td>
<td> </td> <td align="right">72,413</td>
<td> </td> <td> </td> <td> </td>
<td align="right">17,193</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Other </div></td>
<td> </td> <td> </td> <td align="right">18,382</td>
<td> </td> <td> </td> <td> </td>
<td align="right">11,614</td> <td> </td>
<td> </td> <td> </td> <td align="right">14</td>
<td> </td> <td> </td> <td> </td>
<td align="right">22,725</td> <td> </td>
<td> </td> <td> </td> <td align="right">10,270</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Total</b>
</div></td> <td> </td> <td> </td>
<td align="right">1,127,285</td> <td> </td>
<td> </td> <td> </td> <td align="right">438,151</td>
<td> </td> <td> </td> <td> </td>
<td align="right">11</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,084,661</td>
<td> </td> <td> </td> <td> </td>
<td align="right">390,038</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" colspan="2" align="right"
style="border-top: 1px solid #000000"> </td> <td> </td>
<td> </td> <td nowrap="nowrap" colspan="2" align="right"
style="border-top: 1px solid #000000"> </td> <td> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b>Unamortized Intangible
Assets:</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Trademarks </div></td> <td> </td>
<td> </td> <td align="right">227,929</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right">257,786</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b>Total Intangible Assets</b>
</div></td> <td> </td> <td align="left">$</td>
<td align="right">1,355,214</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">438,151</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">1,342,447</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">390,038</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 6 - us-gaap:IncomeTaxDisclosureTextBlock--> <div style="font-family:
Helvetica,Arial,sans-serif"> <div align="left" style="font-size: 10pt;
margin-top: 12pt"><u><b>6. Income Taxes</b></u>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
Company’s provision for income taxes for continuing operations in
interim periods is computed by applying its estimated annual effective tax
rate against earnings before income tax expense for the period. In addition,
non-recurring or discrete items are recorded during the period in which they
occur. The effective tax rates for the three and six months ended June 30,
2009 were 1.1% and 17.4% compared to the prior year rates of 29.3% and 29.4%,
respectively. The effective tax rates for the three and six months ended June 30,
2009 were favorably impacted by $28.4 million of net benefits recognized
for tax positions that were effectively settled in the quarter. </div>
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 7 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><u><b>7. Discontinued
Operations</b></u> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><i>2009</i> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">During the first quarter of 2009,
the Company recorded adjustments to the carrying value of a business held
for sale and other adjustments resulting in a net after-tax loss of approximately
$7.4 million. Adjustments made during the second quarter of 2009
were nominal. </div> <div align="left" style="font-size: 10pt; margin-top:
12pt"><i>2008</i> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">During the second quarter of 2008, the Company discontinued
Triton in the Engineered Systems segment and recorded a $51.1 million
write-down to the carrying value of Triton to its estimated fair market value
and other adjustments. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">During the first quarter of 2008, the Company recorded
adjustments to the carrying value of a business held for sale and other adjustments
resulting in a net after-tax loss of approximately $2.0 million.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Summarized
results of the Company’s discontinued operations are as follows:
</div> <div align="center"> <table style="font-size: 10pt"
cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Three Months Ended June
30,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px
solid #000000"><b>Six Months Ended June 30,</b></td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"><i>(in thousands)</i></td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Revenue
</div></td> <td> </td> <td align="left">$</td>
<td align="right">13,457</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">26,354</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">26,333</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">53,119</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Loss on sale, net of taxes (1) </div></td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(9</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(50,993</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(7,454</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left">$</td>
<td align="right">(52,972</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Loss
from operations before taxes </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(2,912</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(823</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(2,884</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(18</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Benefit
(provision) for income taxes </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(873</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">182</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(1,125</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">603</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Loss from discontinued operations,
net of tax </div></td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(3,794</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(51,634</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(11,463</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(52,387</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="left"> <div style="font-size:
3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div> </div> <table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt"> <tr> <td width="3%"></td>
<td width="1%"></td> <td width="96"></td> </tr>
<tr valign="top"> <td nowrap="nowrap" align="left">(1)</td>
<td> </td> <td>Includes impairments and other adjustments
to previously sold discontinued operations.</td> </tr> </table>
<!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK
--> <div style="font-family: Helvetica,Arial,sans-serif"> <div
align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">At
June 30, 2009, the assets and liabilities of discontinued operations
primarily represent amounts related to one remaining unsold business. Additional
detail related to the assets and liabilities of the Company’s discontinued
operations is as follows: </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="69%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="11%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="6%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>At
June 30,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>At December
31,</b></td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"
style="border-bottom: 1px solid #000000"><i>(in thousands)</i></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid
#000000"><b>2009</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Assets
of Discontinued Operations</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Current assets </div></td>
<td> </td> <td align="left">$</td> <td
align="right">32,644</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">32,498</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Non-current
assets </div></td> <td> </td> <td> </td>
<td align="right">22,381</td> <td> </td>
<td> </td> <td> </td> <td align="right">36,608</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td align="left">$</td> <td
align="right">55,025</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">69,106</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities
of Discontinued Operations</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Current liabilities
</div></td> <td> </td> <td align="left">$</td>
<td align="right">8,182</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">13,371</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Non-current
liabilities </div></td> <td> </td> <td> </td>
<td align="right">50,778</td> <td> </td>
<td> </td> <td> </td> <td align="right">65,752</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td align="left">$</td> <td
align="right">58,960</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">79,123</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">In addition to the assets and liabilities of the entities currently
held for sale in discontinued operations, the assets and liabilities of discontinued
operations include residual amounts related to businesses previously sold.
These residual amounts include property, plant and equipment, deferred tax
assets, short and long-term reserves, and contingencies. </div> </div>
</body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 8 - dov:HedgingActivitiesAndDebtTextBlock--> <div style="font-family:
Helvetica,Arial,sans-serif"> <div align="left" style="font-size: 10pt;
margin-top: 12pt"><u><b>8. Hedging Activities and Debt</b></u>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Hedging
Activities</i> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">The Company periodically enters into financial transactions
specifically to hedge its exposures to various items, including, but not limited
to, interest rate and foreign exchange rate risk. Through various programs,
the Company hedges its cash flow exposures to foreign exchange rate risk by
entering into foreign exchange forward contracts and collars. The Company
does not enter into derivative financial instruments for speculative purposes
and does not have a material portfolio of derivative financial instruments.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In
accordance with Statement of Financial Accounting Standards (“SFAS”)
No. 133, “Accounting for Derivative Instruments and Hedging
Activities” and related amendments and interpretations, the Company
recognizes all derivatives as either assets or liabilities on the balance
sheet and measures those instruments at fair value. If the derivative is designated
as a fair value hedge and is effective, the changes in the fair value of the
derivative and of the hedged item attributable to the hedged risk are recognized
in earnings in the same period. If the derivative is designated as a cash
flow hedge, the effective portions of changes in the fair value of the derivative
are recorded in other comprehensive earnings and are recognized in the statement
of operations when the hedged item affects income. Ineffective portions of
changes in the fair value of cash flow hedges are recognized in earnings.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">There
is presently one outstanding swap agreement for a total notional amount of
$50.0 million, or CHF65.1 million, which swaps the U.S.
dollar 6-month LIBOR rate and the Swiss Franc 6-month LIBOR rate. This agreement
hedges a portion of the Company’s net investment in non-U.S. operations
and the fair value outstanding at June 30, 2009 was a loss of $10.4 million
which was based on quoted market prices for similar instruments (using Level
2 inputs under the SFAS No. 157 hierarchy). The change in fair value
of this hedge, which was not significant during the first six months of 2009,
is recorded in Other Expense (Income), net and the $10.4 million
is recorded in Other Deferrals in the Unaudited Condensed Consolidated Balance
Sheet. This hedge is effective. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">The Company’s other hedging activity is
not significant; therefore tabular disclosures are not presented. There are
no amounts excluded from the assessment of hedge effectiveness and there are
no credit risk related contingent features in the Company’s derivative
instruments. In addition, the amount of gains or losses from hedging activity
recorded in earnings is not significant and the amount of unrealized gains
or losses from cash flow hedges which are expected to be reclassified to earnings
in the next twelve months is not significant to Dover. </div> <!--
Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div
style="font-family: Helvetica,Arial,sans-serif"> <div align="center"
style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Debt</i>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
Company’s long-term debt with a book value of $1,878.4 million,
of which $33.6 million matures in less than one year, had a fair
value of approximately $1,879.2 million at June 30, 2009.
The estimated fair value of the long-term debt is based on quoted market prices,
and present value techniques used to value similar instruments. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">During the
second quarter ended June 30, 2008, the Company repaid its $150 million
6.25% Notes due June 1, 2008. In addition, on March 14,
2008, Dover issued $350 million of 5.45% Notes due 2018 and $250 million
of 6.60% Notes due 2038. The net proceeds of $594.1 million from
the notes were used to repay borrowings under Dover’s commercial
paper program, and were reflected in long-term debt in the Consolidated Balance
Sheet at December 31, 2008. The notes and debentures are redeemable
at the option of Dover in whole or in part at any time at a redemption price
that includes a make-whole premium, with accrued interest to the redemption
date. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">During the first quarter of 2008, Dover entered into several interest
rate swaps in anticipation of the debt financing completed on March 14,
2008 which, upon settlement, resulted in a net gain of $1.2 million
which was deferred and will be amortized over the life of the related notes.
</div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 9 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><u><b>9. Commitments
and Contingent Liabilities</b></u> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">A few of the Company’s
subsidiaries are involved in legal proceedings relating to the cleanup of
waste disposal sites identified under federal and state statutes which provide
for the allocation of such costs among “potentially responsible
parties.” In each instance, the extent of the Company’s
liability appears to be very small in relation to the total projected expenditures
and the number of other “potentially responsible parties”
involved and is anticipated to be immaterial to the Company. In addition,
a few of the Company’s subsidiaries are involved in ongoing remedial
activities at certain current and former plant sites, in cooperation with
regulatory agencies, and appropriate reserves have been established. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company
and certain of its subsidiaries are also parties to a number of other legal
proceedings incidental to their businesses. These proceedings primarily involve
claims by private parties alleging injury arising out of use of the Company’s
products, exposure to hazardous substances, patent infringement, employment
matters and commercial disputes. Management and legal counsel, at least quarterly,
review the probable outcome of such proceedings, the costs and expenses reasonably
expected to be incurred, the availability and extent of insurance coverage,
and established reserves. While it is not possible at this time to predict
the outcome of these legal actions or any need for additional reserves, in
the opinion of management, based on these reviews, it is unlikely that the
disposition of the lawsuits and the other matters mentioned above will have
a material adverse effect on the financial position, results of operations,
cash flows or competitive position of the Company. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">Estimated warranty program claims
are provided for at the time of sale. Amounts provided for are based on historical
costs and adjusted new claims. The changes in the carrying amount of product
warranties through June 30, 2009 and 2008 are as follows: </div>
<div align="center"> <table style="font-size: 10pt" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="76%"> </td> <td
width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 1px solid #000000"><i>(in thousands)</i></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid
#000000"><b>2009</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Beginning
Balance January 1</b> </div></td> <td> </td>
<td align="left">$</td> <td align="right">56,137</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">55,437</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Provision for warranties </div></td> <td> </td>
<td> </td> <td align="right">15,219</td>
<td> </td> <td> </td> <td> </td>
<td align="right">21,608</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Increase from acquisitions/dispositions
</div></td> <td> </td> <td> </td>
<td align="right">2,737</td> <td> </td> <td> </td>
<td> </td> <td align="right">100</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Settlements made </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(16,924</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(18,712</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Other adjustments </div></td> <td> </td>
<td> </td> <td align="right">66</td> <td> </td>
<td> </td> <td> </td> <td align="right">649</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Ending Balance
June 30</b> </div></td> <td> </td>
<td align="left">$</td> <td align="right">57,235</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">59,082</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">From time to time, the Company
will initiate various restructuring programs at its operating companies or
record severance and other restructuring costs in connection with purchase
accounting for acquisitions prior to January 1, 2009 (see Note 2
for additional detail). In the second half of 2008, the Company announced
plans to increase substantially the amount of restructuring efforts in response
to the significant decline in global economic activity. For the second quarter
of 2009, $5.1 million and $13.4 million of restructuring
charges were recorded in cost of goods and services and selling and administrative
expenses, respectively, in the Unaudited Condensed Consolidated Statement
of Operations. For the six months ended June 30, 2009, $17.9 million
and $35.8 million of restructuring charges were recorded in cost
of goods and services and selling and administrative expenses, respectively,
in the Unaudited Condensed Consolidated Statement of Operations. </div>
<!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK
--> <div style="font-family: Helvetica,Arial,sans-serif"> <div
align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
following table details the Company’s severance and other restructuring
reserve activity: </div> <div align="center"> <table style="font-size:
10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!--
Begin Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 1px solid #000000"><i>(in thousands)</i></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid
#000000"><b>Severance</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>Exit</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>At
December 31, 2008 (A)</b> </div></td> <td> </td>
<td align="left">$</td> <td align="right">7,203</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">23,754</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">30,957</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Provision
</div></td> <td> </td> <td> </td>
<td align="right">41,320</td> <td> </td>
<td> </td> <td> </td> <td align="right">12,306</td>
<td> </td> <td> </td> <td> </td>
<td align="right">53,626</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Payments </div></td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(28,610</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(4,784</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(33,394</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Other, including impairments </div></td>
<td> </td> <td> </td> <td align="right">1,875</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(4,150</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(2,275</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>At
June 30, 2009 (B)</b> </div></td> <td> </td>
<td align="left"><b>$</b></td> <td align="right"><b>21,788</b></td>
<td> </td> <td> </td> <td align="left"><b>$</b></td>
<td align="right"><b>27,126</b></td> <td> </td>
<td> </td> <td align="left"><b>$</b></td>
<td align="right"><b>48,914</b></td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <tr>
<td width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left"><b>(A)</b></td>
<td> </td> <td>Includes $27.9 million
related to purchase accounting accruals.</td> </tr> <tr style="font-size:
3pt"> <td> </td> </tr> <tr valign="top">
<td nowrap="nowrap" align="left"><b>(B)</b></td> <td> </td>
<td>Includes $26.4 million related to purchase accounting accruals.</td>
</tr> </table> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 10 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><u><b>10. Employee
Benefit Plans </b></u> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">The following table sets forth the components of
net periodic expense: </div> <div align="center"> <table style="font-size:
10pt" cellspacing="0" border="0" cellpadding="0" width="100%"> <!--
Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Retirement
Plan Benefits</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Post Retirement
Benefits</b></td> <td> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 0px solid #000000"><b>Three Months Ended June
30,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"><b>Three Months Ended June 30,</b></td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"><i>(in thousands)</i></td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected
return on plan assets </div></td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(8,547</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(8,662</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Benefits earned during period </div></td>
<td> </td> <td> </td> <td align="right">5,003</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5,501</td> <td> </td> <td> </td>
<td> </td> <td align="right">79</td> <td> </td>
<td> </td> <td> </td> <td align="right">64</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Interest
accrued on benefit obligation </div></td> <td> </td>
<td> </td> <td align="right">9,268</td> <td> </td>
<td> </td> <td> </td> <td align="right">9,759</td>
<td> </td> <td> </td> <td> </td>
<td align="right">240</td> <td> </td> <td> </td>
<td> </td> <td align="right">240</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Amortization <b>(A)</b>: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Prior
service cost </div></td> <td> </td> <td> </td>
<td align="right">2,249</td> <td> </td> <td> </td>
<td> </td> <td align="right">2,159</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(43</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(43</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Recognized actuarial (gain) loss </div></td>
<td> </td> <td> </td> <td align="right">1,298</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,188</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(107</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(116</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:30px;
text-indent:-15px">Transition obligation </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(10</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(18</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Net periodic expense
</div></td> <td> </td> <td align="left">$</td>
<td align="right">9,261</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">9,927</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">169</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">145</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr style="font-size: 10pt">
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"><b>Six Months Ended June 30,</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Six
Months Ended June 30,</b></td> <td> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap"
align="left" style="border-bottom: 1px solid #000000"><i>(in thousands)</i></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid
#000000"><b>2009</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected
return on plan assets </div></td> <td> </td>
<td nowrap="nowrap" align="left">$</td> <td align="right">(17,094</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left">$</td> <td align="right">(17,324</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="left">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Benefits earned during period </div></td>
<td> </td> <td> </td> <td align="right">10,006</td>
<td> </td> <td> </td> <td> </td>
<td align="right">11,002</td> <td> </td>
<td> </td> <td> </td> <td align="right">158</td>
<td> </td> <td> </td> <td> </td>
<td align="right">145</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Interest accrued on benefit
obligation </div></td> <td> </td> <td> </td>
<td align="right">18,536</td> <td> </td>
<td> </td> <td> </td> <td align="right">19,518</td>
<td> </td> <td> </td> <td> </td>
<td align="right">480</td> <td> </td> <td> </td>
<td> </td> <td align="right">474</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Curtailment gain </div></td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(337</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Amortization <b>(A)</b>:
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Prior
service cost </div></td> <td> </td> <td> </td>
<td align="right">4,498</td> <td> </td> <td> </td>
<td> </td> <td align="right">4,318</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(86</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(86</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Recognized actuarial
(gain) loss </div></td> <td> </td>
<td> </td> <td align="right">2,596</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,376</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(214</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(248</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:30px; text-indent:-15px">Transition
obligation </div></td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(20</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(36</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net
periodic expense </div></td> <td> </td> <td
align="left">$</td> <td align="right">18,185</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">19,854</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">338</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">285</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px
solid #000000">  </div> </div> <table width="100%"
border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"> <tr>
<td width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left"><b>(A)</b></td>
<td> </td> <td>A portion of the current year amortization
amounts are recorded as increases (decreases) to Accumulated Other
Comprehensive Income totaling approximately $2.3 million, net of tax, and
$2.0 million, net of tax, for the three month periods ended June 30,
2009 and 2008, respectively, and $4.6 million, net of tax, and $4.0 million,
net of tax, for the six month periods ended June 30, 2009 and 2008,
respectively.</td> </tr> </table> <!-- Folio --> <!--
/Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
Helvetica,Arial,sans-serif"> <div align="center" style="font-size: 10pt;
margin-top: 0pt"> <b> </b> </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 11 - dov:ComprehensiveEarningsTextBlock--> <div style="font-family:
Helvetica,Arial,sans-serif"> <div align="left" style="font-size: 10pt;
margin-top: 12pt"><u><b>11. Comprehensive Earnings</b></u>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Comprehensive
earnings were as follows: </div> <div align="center"> <table
style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="54%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="1%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="7%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
<td width="7%"> </td> <td width="1%"> </td>
<td width="5%"> </td> <td width="1%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 0px solid #000000"><b>Three Months Ended June
30,</b></td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px
solid #000000"><b>Six Months Ended June 30,</b></td>
<td> </td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"><i>(in thousands)</i></td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td style="border-bottom: 1px solid #000000"> </td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net
Earnings </div></td> <td> </td> <td align="left">$</td>
<td align="right">97,080</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">135,276</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">150,506</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">282,454</td> <td> </td>
</tr> <tr style="font-size: 10pt"> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Foreign currency translation adjustment </div></td>
<td> </td> <td> </td> <td align="right">69,193</td>
<td> </td> <td> </td> <td> </td>
<td align="right">12,796</td> <td> </td>
<td> </td> <td> </td> <td align="right">33,517</td>
<td> </td> <td> </td> <td> </td>
<td align="right">76,330</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Unrealized holding
gains (losses), net of tax </div></td> <td> </td>
<td> </td> <td align="right">8</td> <td> </td>
<td> </td> <td> </td> <td align="right">9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">99</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="left"> </td> <td align="right">(206</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Derivative
cash flow hedges, net of tax </div></td> <td> </td>
<td> </td> <td align="right">392</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="left"> </td>
<td align="right">(6</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">1,025</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,118</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">SFAS 158 amortization, net
of tax </div></td> <td> </td> <td> </td>
<td align="right">2,308</td> <td> </td> <td> </td>
<td> </td> <td align="right">2,013</td> <td> </td>
<td> </td> <td> </td> <td align="right">4,616</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3,982</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid
#000000"> </td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Comprehensive Earnings </div></td> <td> </td>
<td align="left">$</td> <td align="right">168,981</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">150,088</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">189,763</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">363,678</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> </table> </div> </div>
</body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 12 - us-gaap:SegmentReportingDisclosureTextBlock--> <div
style="font-family: Helvetica,Arial,sans-serif"> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <tr valign="bottom"> <td colspan="17"> <div
align="left" style="font-size: 10pt; margin-top: 12pt"><u><b>12.
Segment Information</b></u> </div> </td> </tr>
<tr valign="bottom"> <td colspan="17"> <div align="left" style="font-size:
10pt; margin-top: 6pt">Dover has four reportable segments which are based
on management’s reporting structure used to evaluate performance.
Segment financial information and a reconciliation of segment results to consolidated
results follows: </div> </td> </tr> <tr style="font-size:
10pt"> <td> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom:
1px solid #000000"><i>(in thousands)</i></td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Three
Months Ended June 30</b></td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="6"
style="border-bottom: 1px solid #000000"><b>Six Months Ended June
30,</b></td> <td> </td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="2"
style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td> </tr> <!-- End Table Head -->
<!-- Begin Table Body --> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>REVENUE</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Industrial
Products </div></td> <td> </td> <td align="left">$</td>
<td align="right">382,948</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">649,006</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">817,739</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">1,265,780</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Engineered Systems
</div></td> <td> </td> <td> </td>
<td align="right">467,417</td> <td> </td>
<td> </td> <td> </td> <td align="right">538,729</td>
<td> </td> <td> </td> <td> </td>
<td align="right">868,201</td> <td> </td>
<td> </td> <td> </td> <td align="right">1,037,951</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Fluid Management </div></td>
<td> </td> <td> </td> <td align="right">295,270</td>
<td> </td> <td> </td> <td> </td>
<td align="right">446,630</td> <td> </td>
<td> </td> <td> </td> <td align="right">626,042</td>
<td> </td> <td> </td> <td> </td>
<td align="right">847,929</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Electronic Technologies
</div></td> <td> </td> <td> </td>
<td align="right">245,953</td> <td> </td>
<td> </td> <td> </td> <td align="right">379,958</td>
<td> </td> <td> </td> <td> </td>
<td align="right">459,988</td> <td> </td>
<td> </td> <td> </td> <td align="right">731,715</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Intra — segment
eliminations </div></td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(1,257</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(3,345</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(2,553</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(6,911</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:30px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total
consolidated revenue </div></td> <td> </td>
<td align="left">$</td> <td align="right">1,390,331</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">2,010,978</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">2,769,417</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">3,876,464</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:30px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>EARNINGS FROM
CONTINUING OPERATIONS</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Segment Earnings: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Industrial Products
</div></td> <td> </td> <td align="left">$</td>
<td align="right">25,421</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">87,925</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">59,966</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">166,763</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Engineered Systems
</div></td> <td> </td> <td> </td>
<td align="right">57,462</td> <td> </td>
<td> </td> <td> </td> <td align="right">80,045</td>
<td> </td> <td> </td> <td> </td>
<td align="right">100,767</td> <td> </td>
<td> </td> <td> </td> <td align="right">143,041</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Fluid Management </div></td>
<td> </td> <td> </td> <td align="right">55,573</td>
<td> </td> <td> </td> <td> </td>
<td align="right">97,878</td> <td> </td>
<td> </td> <td> </td> <td align="right">131,014</td>
<td> </td> <td> </td> <td> </td>
<td align="right">183,017</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Electronic Technologies
</div></td> <td> </td> <td> </td>
<td align="right">17,993</td> <td> </td>
<td> </td> <td> </td> <td align="right">51,029</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5,883</td> <td> </td> <td> </td>
<td> </td> <td align="right">87,263</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:30px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Total segments </div></td>
<td> </td> <td> </td> <td align="right">156,449</td>
<td> </td> <td> </td> <td> </td>
<td align="right">316,877</td> <td> </td>
<td> </td> <td> </td> <td align="right">297,630</td>
<td> </td> <td> </td> <td> </td>
<td align="right">580,084</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Corporate expense /
other </div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(29,614</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(24,975</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(54,305</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(54,944</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Net interest
expense </div></td> <td> </td> <td nowrap="nowrap"
align="left"> </td> <td align="right">(24,840</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(27,388</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(47,238</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="left"> </td> <td align="right">(50,819</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td> <div style="margin-left:30px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings
from continuing operations before provision </div></td> <td> </td>
<td colspan="3" align="center"></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">for income taxes and discontinued
operations </div></td> <td> </td> <td> </td>
<td align="right">101,995</td> <td> </td>
<td> </td> <td> </td> <td align="right">264,514</td>
<td> </td> <td> </td> <td> </td>
<td align="right">196,087</td> <td> </td>
<td> </td> <td> </td> <td align="right">474,321</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Provision for taxes
</div></td> <td> </td> <td> </td>
<td align="right">1,121</td> <td> </td> <td> </td>
<td> </td> <td align="right">77,604</td>
<td> </td> <td> </td> <td> </td>
<td align="right">34,118</td> <td> </td>
<td> </td> <td> </td> <td align="right">139,480</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td> <div style="margin-left:30px; text-indent:-15px"> 
</div></td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings
from continuing operations — total consolidated </div></td>
<td> </td> <td align="left">$</td> <td
colspan="1" align="right"> 100,874</td> <td> </td>
<td> </td> <td align="left">$</td> <td
align="right">186,910</td> <td> </td> <td> </td>
<td align="left">$</td> <td align="right">161,969</td>
<td> </td> <td> </td> <td align="left">$</td>
<td align="right">334,841</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px;
text-indent:-15px">  </div></td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> <td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double
#000000"> </td> <td> </td> </tr>
<!-- End Table Body --> </table> </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 13 - us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><u><b>13. Recent
Accounting Standards</b></u> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">In September 2006, the
FASB issued SFAS No. 157, “Fair Value Measurements”
(“SFAS No. 157”), which defines fair value, establishes
a framework for measuring fair value in generally accepted accounting principles
(GAAP), and expands disclosures about fair value measurements. For financial
assets and liabilities, this statement was effective for fiscal periods beginning
after November 15, 2007 and did not require any new fair value measurements.
The adoption of SFAS No. 157 on January 1, 2008 did not
have a material effect on the Company’s consolidated financial statements.
In February 2008, the FASB Staff Position No. 157-2 was
issued which delayed the effective date of FASB Statement No. 157
to fiscal years beginning after November 15, 2008 for nonfinancial
assets and liabilities, except for items that are recognized or disclosed
at fair value in the financial statements on a recurring basis (at least annually).
The adoption of the provisions of SFAS No. 157 related to “non-financial
assets” did not have a material effect on the Company’s
consolidated financial statements. </div> <!-- Folio --> <!--
/Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
Helvetica,Arial,sans-serif"> <div align="center" style="font-size: 10pt;
margin-top: 0pt"> <b> </b> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">In December 2007, the
FASB issued SFAS No. 141 (revised 2007), “Business Combinations”
(“SFAS No. 141(R)”). SFAS No. 141(R) retains
the fundamental requirements in Statement 141 that the acquisition method
of accounting (which Statement 141 called the purchase method) be used for
all business combinations and for an acquirer to be identified for each business
combination. In general, the statement 1) broadens the guidance of SFAS No. 141,
extending its applicability to all events where one entity obtains control
over one or more other businesses, 2) broadens the use of fair value measurements
used to recognize the assets acquired and liabilities assumed, 3) changes
the accounting for acquisition related fees and restructuring costs incurred
in connection with an acquisition, and 4) increases required disclosures.
The Company has applied the provisions of this statement prospectively to
business combinations for which the acquisition date is on or after January 1,
2009. The impact of SFAS No. 141(R) did not have a material effect
on the Company’s consolidated financial statements since its adoption.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In
December 2007, the FASB issued SFAS No. 160, “Noncontrolling
Interests in Consolidated Financial Statements—an amendment of ARB
No. 51” (“SFAS No. 160”).
SFAS No. 160 requires that a noncontrolling interest in a subsidiary
be reported as equity and the amount of consolidated net income specifically
attributable to the noncontrolling interest be identified in the consolidated
financial statements. It also requires consistency in the manner of reporting
changes in the parent’s ownership interest and requires fair value
measurement of any noncontrolling equity investment retained in a deconsolidation.
The Company has applied the provisions of this statement prospectively, as
required, beginning on January 1, 2009. The adoption of SFAS No. 160
did not have a material effect on the Company’s consolidated financial
statements. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">In March 2008, the FASB issued SFAS No. 161, “Disclosures
about Derivative Instruments and Hedging Activities, an amendment of FASB
Statement No. 133” (“SFAS No. 161”).  SFAS
No. 161 amends and expands the disclosure requirements of SFAS No. 133
with the intent to provide users of financial statements with an enhanced
understanding of an entity’s derivative activity. The Company adopted
this standard as of January 1, 2009 and has included related disclosures
in Note 8. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">In April 2008, the FASB issued FASB Staff Position No. 142-3
“Determination of the Useful Life of Intangible Assets”
(“FSP No. 142-3”) to improve the consistency
between the useful life of a recognized intangible asset (under SFAS No. 142)
and the period of expected cash flows used to measure the fair value of the
intangible asset (under SFAS No. 141(R)). FSP No. 142-3
amends the factors to be considered when developing renewal or extension assumptions
that are used to estimate an intangible asset’s useful life under
SFAS No. 142. The guidance in the new staff position is to be applied
prospectively to intangible assets acquired after December 31, 2008.
In addition, FSP No. 142-3 increases the disclosure requirements
related to renewal or extension assumptions. The Company has applied the provisions
of this statement to business combinations for which the acquisition date
is on or after January 1, 2009. The impact of FSP No. 142-3
did not have a material effect on the Company’s consolidated financial
statements since its adoption. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">In May 2008, the FASB issued SFAS No. 162,
“The Hierarchy of Generally Accepted Accounting Principles”
(“SFAS No. 162”). This statement identifies the
sources of accounting principles and the framework for selecting the principles
to be used in the preparation of financial statements of nongovernmental entities
that are presented in conformity with generally accepted accounting principles
(GAAP) in the United States (the GAAP hierarchy).  This
Statement was effective 60 days following the SEC’s approval
of the Public Company Accounting Oversight Board amendments to AU Section 411,
“The Meaning of Present Fairly in Conformity With Generally Accepted
Accounting Principles.”  The adoption of this statement
did not have a material effect on the Company’s consolidated financial
statements. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">In April 2009, the FASB issued FASB Staff Position SFAS No. 107-1
and APB No. 28-1, “Interim Disclosures about Fair Value
of Financial Instruments” (“FSP No. 107-1 and
APB No. 28-1”).  This FSP amends SFAS
No. 107, “Disclosures about Fair Value of Financial Instruments”
and APB Opinion No. 28, “Interim Financial Reporting”,
to require disclosures about fair value of financial instruments not measured
on the balance sheet at fair value in interim financial statements as well
as in annual financial statements. FSP No. 107-1 and APB
No. 28-1 applies to all financial instruments within the scope of
SFAS No. 107 and requires all entities to disclose the methods and
significant assumptions used to estimate the fair value of financial instruments.  FSP
No. 107-1 and APB No. 28-1 is effective for interim periods
ending after June 15, 2009 and does not require comparative disclosure
for earlier periods presented upon initial adoption. The adoption of this
FSP did not have a material effect on the Company’s consolidated
financial statements. </div> <!-- Folio --> <!-- /Folio -->
</div> <!-- PAGEBREAK --> <div style="font-family: Helvetica,Arial,sans-serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"> <b>
</b> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">In April 2009, the FASB issued FSP No. 141R-1 “Accounting
for Assets Acquired and Liabilities Assumed in a Business Combination That
Arise from Contingencies” (“FSP No. 141R-1”).
FSP No. 141R-1 amends the provisions in SFAS 141(R) for the initial
recognition and measurement, subsequent measurement and accounting, and disclosures
for assets and liabilities arising from contingencies in business combinations.
FSP No. 141R-1 eliminates the distinction between contractual and
non-contractual contingencies, including the initial recognition and measurement
criteria in SFAS 141(R) and instead carries forward most of the provisions
in SFAS 141 for acquired contingencies. The Company has applied the provisions
of this statement prospectively to business combinations for which the acquisition
date is on or after January 1, 2009. The impact of FSP No. 141R-1
did not have a material effect on the Company’s consolidated financial
statements since its adoption. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">In May 2009, the FASB issued SFAS No. 165,
“Subsequent Events” (“SFAS No. 165”).
SFAS No. 165 establishes general standards of accounting for and
disclosures of events that occur after the balance sheet date but before financial
statements are issued or are available to be issued. SFAS No. 165
is effective for interim or annual financial periods ending after June 15,
2009 and was adopted by the Company in the second quarter of 2009. The adoption
of SFAS No. 165 did not have a material effect on the Company’s
consolidated financial statements. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">In June 2009, the FASB issued SFAS No. 167,
“Amendments to FASB Interpretation No. 46(R)”
(“SFAS No. 167”). SFAS No. 167 amends
FIN 46(R), “Consolidation of Variable Interest Entities (revised
December 2003)—an interpretation of ARB No. 51”
(“FIN 46(R)”) to require an enterprise to perform an analysis
to determine whether the enterprise’s variable interest or interests
give it a controlling financial interest in a variable interest entity. This
analysis identifies the primary beneficiary of a variable interest entity
as one with the power to direct the activities of a variable interest entity
that most significantly impact the entity’s economic performance
and the obligation to absorb losses of the entity that could potentially be
significant to the variable interest. SFAS No. 167 will be effective
as of the beginning of the annual reporting period commencing after November 15,
2009 and will be adopted by the Company in the first quarter of 2010. The
Company is assessing the potential impact, if any, of the adoption of SFAS
No. 167 on its consolidated financial statements. </div> </div>
</body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 14 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: Helvetica,Arial,sans-serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><u><b>14. Equity
and Cash Incentive Program</b></u> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">In the first quarter of 2009,
the Company issued stock appreciation rights (“SARs”)
covering 3,099,326 shares, of which a portion could potentially be converted
to performance shares subject to shareholder approval of certain plan changes
detailed in Dover’s Proxy Statement. During the second quarter of
2009, the shareholders approved the plan changes and 303,571 SARs were converted
into 75,892 performance shares. The modification of the SARs for this conversion
did not have material impact on the consolidated results of operations. Additionally,
in the second quarter of 2009, 29,577 SARs were granted. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">In the first quarter
of 2008, 2,234,942 SARs were issued. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">For the six months ended June 30, 2009
and 2008, after-tax stock-based compensation expense totaled $7.2 million
and $9.1 million, respectively. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The fair value of each SAR grant
was estimated on the dates of the grant using the Black-Scholes option pricing
model and the performance share grant was estimated on the date of grant using
a Monte Carlo simulation pricing model with the following assumptions: </div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>First
Quarter 2009 and 2008 SAR Grant:</b> </div> <div align="center">
<table style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="76%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000"><b>2009 Grant</b></td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000"><b>2008 Grant</b></td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>SARs</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>SARs</b></td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Risk-free interest rate </div></td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">2.06</td> <td nowrap="nowrap">%</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">3.21</td> <td nowrap="nowrap">%</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Dividend yield </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">3.23</td>
<td nowrap="nowrap">%</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">1.86</td>
<td nowrap="nowrap">%</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Expected life (years) </div></td> <td> </td>
<td> </td> <td align="right">6.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">6.5</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Volatility </div></td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">30.47</td> <td nowrap="nowrap">%</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">26.09</td> <td nowrap="nowrap">%</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Option grant price
</div></td> <td> </td> <td align="right">$</td>
<td align="right">29.45</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">42.30</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Fair value of SARs
granted </div></td> <td> </td> <td align="right">$</td>
<td align="right">6.58</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">10.97</td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: Helvetica,Arial,sans-serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"> <b>
</b> </div> <div align="left" style="font-size: 10pt; margin-top:
12pt"><b>Second Quarter 2009 SAR and 2009 Performance Share Grants</b>
</div> <div align="center"> <table style="font-size: 10pt"
cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="76%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3"><b>Performance</b></td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>SARs</b></td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000"><b>Shares</b></td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Risk-free interest rate </div></td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">3.44</td> <td nowrap="nowrap">%</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">1.23</td> <td nowrap="nowrap">%</td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Dividend yield </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">2.82</td>
<td nowrap="nowrap">%</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">3.23</td>
<td nowrap="nowrap">%</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Expected life (years) </div></td> <td> </td>
<td> </td> <td align="right">6.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">2.9</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Volatility </div></td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">32.20</td> <td nowrap="nowrap">%</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">30.24</td> <td nowrap="nowrap">%</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Option grant price
</div></td> <td> </td> <td align="right">$</td>
<td align="right">35.50</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">29.45</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Fair value of SARs/Shares
granted </div></td> <td> </td> <td align="right">$</td>
<td align="right">9.82</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">32.80</td>
<td> </td> </tr> <!-- End Table Body -->
</table> </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 15 - us-gaap:ScheduleOfSubsequentEventsTextBlock--> <div
style="font-family: Helvetica,Arial,sans-serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><u><b>15. Subsequent Events</b></u>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
Company assessed events occurring subsequent to June 30, 2009 through
July 24, 2009 for potential recognition and disclosure in the consolidated
financial statements. No events have occurred that would require adjustment
to or disclosure in the consolidated financial statements which were issued
on July 24, 2009. </div> </div> </body> </html>
N/A
false
--12-31
2009-06-30
10-Q
0000029905
186135290
Yes
Large Accelerated
Filer 9086204325
Dover
Corporation No Yes
50819000 27388000
47238000 24840000
103904000 112079000
582601000 533918000
80268000 105846000
61549000
3966000
-245000
-245000
54538000
28574000
47015000
26353000
373436000 348971000
1013174000
872193000
104938000 107777000
32647000
39169000
3778000
3778000
13538000
13365000
7883238000 7670454000
2630119000 2480318000
69106000
55025000
606105000
742613000
547409000
693560000
136508000
146151000
-1603000
-244000
8465000
-18664000
0.4
0.2
0.5
0.25
2457299000
1271359000
1793963000
897021000
4616000
4616000
224944000 134044000
73687000
74015000
314405000
328437000
130714000
127560000
1.48 0.72
0.81 0.52
1.47 0.71
0.81
0.52 31374000
5675000
305572000
179739000
3255566000 3256503000
1419165000 739619000
975454000 493310000
334841000
186910000
161969000
100874000
474321000
264514000
196087000
101995000
1.76
0.99
0.87
0.54
1.74
0.98
0.87
0.54
-52387000
-51634000
-11463000
-3794000
-0.27
-0.27
-0.06
-0.02
-0.27
-0.27
-0.06
-0.02
139480000 77604000
34118000
1121000 47779000
-26839000
-91411000
152340000
-1648000
-14512000
-51063000
-119433000
-9600000
58915000
5020000
-19072000
7313000
-24665000
952409000
917063000
636121000 592160000
7883238000
7670454000
1253514000 1000490000
79123000
58960000
1860729000 1844741000
6862000
-18908000
-115460000
-195882000
-172246000
47964000
385978000
307302000
282454000 135276000
150506000 150506000 97080000
528859000 293088000
243102000 128348000
33517000
33517000
1124000
1124000
209619000 215824000
-3719000
-1186000
223000
-1513000
352393000
0
76300000
93033000
99751000
34288000
85115000
58451000
0
96193000
8000000
1375000
594120000
0
4620000
8727000
0
226794000
872134000
849466000
166606000 14545000
175830000 92270000
3876464000 2010978000
2769417000 1390331000
890306000
446531000
732352000
364962000
14033000 11039000
279460000 142544000
3792866000 10816000 455228000 246615000 5286458000 -2206251000 3903908000
50073000 469401000 246754000 5343931000 -2206251000 10345000
10345000
-93033000
-93033000
4212000
4073000
139000
35005000 14135000
1206000
1495000
157000
222000
191966000
190589000
186198000
186292000
190760000
189094000
186041000
186070000