Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

9. Discontinued Operations

Management evaluates Dover's businesses periodically for their strategic fit within Dover's operations.  Accordingly, in the third quarter of 2011, the Company decided to sell Paladin Brands and Crenlo LLC, two businesses within its Industrial Products segment that serve construction related end-markets.  The sale was completed in September and the Company received cash proceeds of $299,360, subject to final working capital adjustments, and recognized a year-to-date after-tax loss of $66,040. The loss includes an after-tax impairment charge of $76,072 representing a write-down of the carrying value of goodwill to fair value, or the anticipated amount of sales proceeds. This transaction generated a capital loss for tax purposes, and the Company established a valuation allowance of $10,675 for the portion of the capital loss carryforward that, at this point in time, is not more likely than not to be realized.

In connection with this disposal, for all periods presented, the Company has reclassified the results of these businesses into discontinued operations in the Unaudited Condensed Consolidated Statement of Operations, and the assets and liabilities associated with these businesses have been segregated within the Unaudited Condensed Consolidated Balance Sheet.

For the nine months ended September 30, 2010, the loss from discontinued operations, net of tax, reflects the sale of Triton, an operating company that had been reclassified from the Engineered Systems segment to discontinued operations in 2008. The earnings from discontinued operations during the third quarter of 2010 includes the results of the businesses discontinued in 2011 and other expense and accrual adjustments relating to operations that were disposed of in previous periods. The 2010 quarter also reflects $4,502 of tax benefits driven primarily by discrete tax items settled or resolved during the period.

Summarized results of the Company's discontinued operations are as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Revenue	$	103,913		$	85,294	$	301,461		$	243,282
Loss on sale, net of taxes	$	(65,375	)	$	-	$	(66,040	)	$	(14,203	)
Earnings from operations before taxes		9,241			1,243		25,077			2,604
(Provision) benefit for income taxes		(163	)		3,207		7,921			942
(Loss) earnings from discontinued operations, net of tax	$	(56,297	)	$	4,450	$	(33,042	)	$	(10,657	)

Assets and liabilities of discontinued operations are summarized below:

	September 30, 2011		December 31, 2010
Assets of Discontinued Operations
Current assets	$	7,884	$	141,953
Non-current assets		15,248		365,336
	$	23,132	$	507,289
Liabilities of Discontinued Operations
Current liabilities	$	27,371	$	72,652
Non-current liabilities		72,871		132,386
	$	100,242	$	205,038

At September 30, 2011, the assets and liabilities of discontinued operations primarily include residual amounts for deferred tax assets, short and long-term reserves, and contingencies related to businesses previously sold.