Disposed and Discontinued Operations

12 Months Ended

Dec. 31, 2011

Disposed and Discontinued Operations [Abstract]

Discontinued Operations

3.   Disposed and Discontinued Operations

2011 – Management evaluates Dover's businesses periodically for their strategic fit within Dover's operations.  Accordingly, in the third quarter of 2011, the Company obtained approval from its Board of Directors to sell Paladin Brands and Crenlo LLC, two businesses within its Engineered Systems segment that served construction-related end markets.  The sale was completed in September and the Company received cash proceeds of $300,211 and recognized an after-tax loss of $65,927.  The loss includes an after-tax impairment charge of $76,072 representing a write-down of the carrying value of goodwill to fair value, as indicated by 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 U.S. federal portion of the capital loss carryforward that, at that point in time, was not more likely than not to be realized.

In the fourth quarter, the Company obtained approval from its Board of Directors to sell Heil Trailer International, a manufacturer of specialty transportation trailers and equipment within its Engineered Systems segment.  The sale was completed at the end of December and the Company received cash proceeds of $211,911, subject to final working capital adjustments, and recognized an after-tax gain of $63,343, which included realization of the $10,675 U.S. federal capital loss carryforward generated by the third quarter sale of Paladin and Crenlo.

The net earnings from discontinued operations of $53,621 reflects net earnings from operations generated by the three businesses sold in 2011, coupled with expense and accrual adjustments relating to other discontinued operations and tax benefits of $17,960 relating primarily to discrete tax items settled or resolved during the year.

2010 – During the first quarter of 2010, the Company sold Triton, an operating company that had been reclassified from the Engineered Systems segment to discontinued operations in 2008, for net consideration of $7,498, resulting in a net after-tax current year loss on sale of approximately $13,100.  During the second and third quarters of 2010, the loss was increased by approximately $900, net of tax, upon settlement of a $1,500 working capital adjustment related to the sale. The net earnings from discontinued operations of $23,556 reflects net earnings from operations of the three businesses sold in 2011 and tax benefits of $11,597 driven primarily by discrete tax items settled or resolved during the year, offset by expense adjustments related to other discontinued operations.

2009 – During the first and fourth quarters of 2009, the Company recorded in aggregate, a $10,338 (after-tax) additional write-down to the carrying value of Triton. The write-down and other adjustments related to previously discontinued entities resulted in a net after-tax loss on sale of $11,170 for the year.  The net loss from discontinued operations of $16,985 also includes the net loss from operations generated by businesses sold in 2010 and 2011.

Summarized results of the Company's discontinued operations are detailed in the following table:

	Years Ended December 31,
	2011			2010			2009
Revenue	$	551,761		$	508,767		$	490,813
Loss on sale (including impairments), net of taxes	$	(4,743	)	$	(14,203	)	$	(11,170	)
Earnings (loss) from operations before taxes		47,773			21,962			(4,853	)
Benefit (provision) for income taxes		5,848			1,594			(962	)
Earnings (loss) from discontinued operations, net of tax	$	48,878		$	9,353		$	(16,985	)

Additional detail related to the assets and liabilities of the Company's discontinued operations is as follows:

	December 31, 2011		December 31, 2010
Assets of Discontinued Operations
Current assets	$	2,832	$	191,408
Non-current assets		1,609		435,685
	$	4,441	$	627,093
Liabilities of Discontinued Operations
Current liabilities	$	31,592	$	91,933
Non-current liabilities		88,325		137,594
	$	119,917	$	229,527

The Company currently has no businesses held for sale in discontinued operations.  At December, 31, 2011, the assets and liabilities of discontinued operations primarily represent residual amounts for deferred tax assets, short and long-term reserves, and contingencies related to businesses previously sold.