Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

9. Discontinued Operations

Management evaluates Dover’s businesses periodically for their strategic fit within Dover’s operations. Accordingly, the Company decided to sell certain businesses within its Engineered Systems segment. Paladin Brands and Crenlo LLC, two businesses that serve construction related end markets, were sold during the third quarter of 2011 and Heil Trailer International, a manufacturer of specialty transportation trailers and equipment, was sold during the fourth quarter of 2011.

In connection with these disposals, for all periods presented, the Company has reclassified the results of these businesses into discontinued operations in the Unaudited Condensed Consolidated Statements of Comprehensive Earnings.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Revenue	$	—		$	170,967		$	—		$	484,350
Gain (loss) on sale, net of taxes	$	(634	)	$	(65,375	)	$	1,226		$	(66,040	)
Earnings (loss) from operations before taxes	$	(385	)	$	17,109		$	(1,497	)	$	44,078
Provision for income taxes	(148		)	(2,892		)	(461		)	1,489
Loss from discontinued operations, net of tax	$	(1,167	)	$	(51,158	)	$	(732	)	$	(20,473	)

The gain (loss) on sale, net of taxes for both the three and nine months ended September 30, 2012 reflects adjustments to sale proceeds of businesses sold in prior years. The earnings (loss) from operations before taxes for both the three and nine months ended September 30, 2012 reflects the net earnings generated by the three businesses sold in 2011, coupled with other expense and accrual adjustments.

The loss from discontinued operations, net for both the three and nine months ended September 30, 2011 reflects the net loss generated from the sale of two businesses in the third quarter of 2011, including an after-tax goodwill impairment charge of $76,072, offset in part by the earnings from operations generated by these businesses.

Assets and liabilities of discontinued operations are summarized below:

	September 30, 2012		December 31, 2011
Assets of Discontinued Operations
Current assets	$	3,188	$	2,832
Non-current assets	297		1,609
	$	3,485	$	4,441
Liabilities of Discontinued Operations
Current liabilities	$	9,066	$	31,592
Non-current liabilities	87,850		88,325
	$	96,916	$	119,917

At September 30, 2012 and December 31, 2011, the assets and liabilities of discontinued operations consist primarily of tax-related accruals and unrecognized benefits, as well as other accruals for compensation, legal, environmental and warranty contingencies, none of which are individually significant.