Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

4. Discontinued Operations

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 ("ECT"), to discontinued operations for all periods presented.

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenue	$	115,560		$	118,338		$	202,926		$	227,163
(Loss) gain on sale and impairments, net of tax	$	(18,668	)	$	1,860		$	(18,668	)	$	1,860
Earnings from operations before taxes	12,968			12,428			$	18,577		$	18,162
Benefit from (provision for) income taxes	41,397			(5,343		)	48,802			(1,423		)
Earnings from operations, net of tax	54,365			7,085			67,379			16,739
Earnings from discontinued operations, net of tax	$	35,697		$	8,945		$	48,711		$	18,599

Earnings from discontinued operations of $35,697 and $48,711 for the three and six months ended June 30, 2013, respectively, reflect net earnings from operations generated by those businesses discontinued in 2012, as well as various expense and accrual adjustments relating to other discontinued operations. The tax benefit for the three and six months ended June 30, 2013 includes $42,688 and $52,454, respectively, of discrete tax benefits principally related to the conclusion of certain federal, state and international tax audits.

During the second quarter of 2013, in connection with a change in goodwill reporting units within discontinued operations resulting from the Company's expected manner of disposing of its electronic test and assembly businesses, the Company was required to allocate goodwill to these individual reporting units based upon relative current fair values. This process resulted in a benefit of $25,520 in the discontinued operations deferred income tax provision for the three and six months ended June 30, 2013 as a result of the elimination of certain deferred tax liabilities. The Company recorded a goodwill impairment charge of $54,532 ($44,188 after tax) in the second quarter of 2013 in connection with the anticipated sale of these businesses. This charge was a write-down of the carrying value to fair value, based on the current estimated sales price. The Company expects to complete the sale of these businesses in the second half of 2013.

Earnings from discontinued operations of $8,945 and $18,599 for the three and six months ended June 30, 2012, respectively, primarily reflect net earnings from operations of DEK and ECT, as well as $1,860 of other favorable discrete items.

Assets and liabilities of discontinued operations are summarized below:

	June 30, 2013		December 31, 2012
Assets of Discontinued Operations
Accounts receivable	$	80,069	$	63,229
Inventories, net	53,380		51,252
Prepaid and other current assets	17,289		10,263
Total current assets	150,738		124,744
Property, plant and equipment, net	34,536		31,935
Goodwill and intangible assets, net	182,725		238,657
Other assets and deferred charges	3,825		2,209
Total assets	$	371,824	$	397,545
Liabilities of Discontinued Operations
Accounts payable	$	29,084	$	22,613
Other current liabilities	30,553		34,592
Total current liabilities	59,637		57,205
Deferred income taxes	30,404		64,853
Other liabilities	42,144		86,900
Total liabilities	$	132,185	$	208,958

At June 30, 2013 and December 31, 2012, 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.