Disposed and Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Disposed and Discontinued Operations

3. Disposed and Discontinued Operations

2012 - Management evaluates Dover's businesses periodically for their strategic fit within Dover's operations. Accordingly, in the fourth quarter of 2012, the Company announced its intention to divest certain non-core businesses within the Printing & Identification segment serving the electronic assembly and test markets, consistent with its long-term focus on strengthening its portfolio and reducing its exposure to cyclical markets. Management expects to sell these businesses in 2013. As a result, the Company has reclassified the operations, cash flows, and related assets and liabilities of these businesses, DEK International and Everett Charles Technologies (including the Multitest business, collectively "ECT"), to discontinued operations for all periods presented.

The net earnings from discontinued operations of $28,769 reflects net earnings from operations generated by these two businesses, as well as various expense and accrual adjustments relating to other discontinued operations. This activity was more than offset by a goodwill impairment charge determined in connection with the anticipated sale of ECT, at which time the Company recognized an after-tax impairment charge of $51,854, representing a write-down of the reporting unit's carrying value of goodwill to its fair value.

2011 - In 2011, the Company sold three businesses, Paladin Brands, Crenlo LLC, and Heil Trailer International, that had operated within the Engineered Systems segment for total cash proceeds of $512,122. These businesses were reclassified to discontinued operations in the third and fourth quarters of 2011. The 2011 net earnings from discontinued operations reflects net operating earnings generated by the two businesses discontinued in 2012 and the three business sold in 2011, coupled with tax benefits of $17,960 relating primarily to discrete tax items settled or resolved during the year.

Net earnings from discontinued operations also includes a $4,743 loss on the 2011 sale of the three businesses, inclusive of a after-tax goodwill impairment charge of $76,072, representing a write-down of the carrying value of the associated reporting unit's goodwill to its fair value.

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 $94,810 reflects net operating earnings from the two businesses discontinued in 2012 and the three businesses sold in 2011, as well as 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.

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

	Years Ended December 31,
	2012			2011			2010
Revenue	$	434,460		$	1,136,997		$	1,042,279
Loss on sale, including impairments, net of tax	$	(50,818	)	$	(4,743	)	$	(14,203	)
Earnings from operations before taxes	34,517			132,675			108,044
Provision for income taxes	(5,748		)	(5,875		)	(13,234		)
Earnings from operations, net of tax	28,769			$	126,800		$	94,810
Earnings (loss) from discontinued operations, net of tax	$	(22,049	)	$	122,057		$	80,607

Assets and liabilities of discontinued operations are summarized below:

	December 31, 2012		December 31, 2011
Assets of Discontinued Operations
Accounts receivable	$	63,229	$	71,627
Inventories, net	51,252		69,539
Prepaid and other current assets	10,263		9,721
Total current assets	124,744		150,887
Property, plant and equipment, net	31,935		31,776
Goodwill and intangible assets, net	238,657		302,720
Other assets and deferred charges	2,209		1,477
Total assets	$	397,545	$	486,860
Liabilities of Discontinued Operations
Accounts payable	$	22,613	$	28,076
Other current liabilities	34,592		80,495
Total current liabilities	57,205		108,571
Deferred income taxes	64,853		75,794
Other liabilities	86,900		91,539
Total liabilities	$	208,958	$	275,904

At December 31, 2012 and December 31, 2011, the assets and liabilities of discontinued operations relate primarily to the two businesses reclassified to held for sale in the fourth quarter of 2012, coupled with tax-related accruals and unrecognized benefits, as well as other accruals for compensation, legal, environmental, and warranty contingencies, none of which are individually significant, relating to businesses that were sold in prior years.