5. Discontinued and Disposed Operations

Discontinued Operations

The Apergy businesses, as discussed in Note 2, met the criteria to be reported as discontinued operations because the spin-off is a strategic shift in business that has a major effect on the Company's operations and financial results. Therefore, the results of discontinued operations for the three and six months ended June 30, 2018 and 2017 include the historical results of Apergy prior to its distribution on May 9, 2018. The three and six months ended June 30, 2018 included costs incurred by Dover to complete the spin-off of Apergy amounting to $34,638 and $46,384, respectively, reflected in selling, general and administrative expenses. There were no such costs for the three and six months ended June 30, 2017. See Note 2 Spin-off of Apergy Corporation for further information.

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenue	$	119,647		$	256,156		$	403,688		$	486,430
Cost of goods and services	76,277			160,817			254,205			305,771
Gross profit	43,370			95,339			149,483			180,659
Selling, general and administrative expenses	64,990			62,773			144,114			122,347
Operating (loss) earnings	(21,620		)	32,566			5,369			58,312
Other (income) expense, net	(134		)	(165		)	349			484
(Loss) earnings from discontinued operations before taxes	(21,486		)	32,731			5,020			57,828
Provision for income taxes	5,011			11,148			9,492			19,086
(Loss) earnings from discontinued operations, net of tax	$	(26,497	)	$	21,583		$	(4,472	)	$	38,742

Assets and liabilities of discontinued operations are summarized below:



	December 31, 2017
Assets of Discontinued Operations
Accounts receivable	$	202,052
Inventories, net	201,591
Prepaid and other current assets	14,035
Total current assets	417,678
Property, plant and equipment, net	211,832
Goodwill and intangible assets, net	1,232,843
Other assets and deferred charges	3,200
Total assets	$	1,865,553

Liabilities of Discontinued Operations
Accounts payable	$	97,439
Other current liabilities	59,482
Total current liabilities	156,921
Deferred income taxes	90,641
Other liabilities	16,691
Total liabilities	$	264,253

On May 9, 2018, all assets and liabilities of Apergy were spun-off. Therefore, as of June 30, 2018, there were no assets and liabilities classified as discontinued operations.

Disposed Operations

2018

There were no other dispositions aside from the spin-off of Apergy during the six months ended June 30, 2018.

2017

On February 14, 2017, the Company completed the sale of Performance Motorsports International ("PMI"), which was a wholly owned subsidiary of the Company that manufactures pistons and other engine related components serving the motorsports and powersports markets. Total consideration for the transaction was $147,313, including cash proceeds of $118,706. We recognized a pre-tax gain on sale of $88,402 for the six months ended June 30, 2017 within gain on sale of businesses in the Condensed Consolidated Statements of Earnings and recorded a 25% equity method investment at fair value of $18,607 as well as a subordinated note receivable of $10,000.

During the six months ended June 30, 2017, the Company recorded a working capital adjustment for the sale of Tipper Tie in the fourth quarter of 2016 for $1,691. This adjustment is included within gain on sale of businesses in the Condensed Consolidated Statements of Earnings.

These disposals did not represent strategic shifts in operations and, therefore, did not qualify for presentation as discontinued operations.