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Document and Company Information - USD ($)	12 Months Ended
Document and Company Information - USD ($)	Dec. 31, 2009	Feb. 11, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	DOVER CORP
Entity Central Index Key	0000029905
Document Type	10-K
Document Period End Date	Dec. 31, 2009
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 6,159,218,863
Entity Common Stock, Shares Outstanding (actual number)		187,232,126

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Consolidated Statements of Operations [Abstract]
Revenue	$ 5,775,689	$ 7,568,888	$ 7,317,270
Cost of goods and services	3,676,535	4,838,881	4,697,768
Gross profit	2,099,154	2,730,007	2,619,502
Selling and administrative expenses	1,511,111	1,700,677	1,614,005
Operating earnings	588,043	1,029,330	1,005,497
Interest expense, net	100,375	96,037	89,589
Other expense (income), net	(3,950)	(12,726)	3,541
Total interest/other expense, net	96,425	83,311	93,130
Earnings before provision for income taxes and discontinued operations	491,618	946,019	912,367
Provision for income taxes	119,724	251,261	242,617
Earnings from continuing operations	371,894	694,758	669,750
Loss from discontinued operations, net	(15,456)	(103,927)	(8,670)
Net earnings	$ 356,438	$ 590,831	$ 661,080
Basic earnings (loss) per common share:
Earnings from continuing operations	$ 2	$ 3.69	$ 3.33
Loss from discontinued operations, net	(0.08)	(0.55)	(0.04)
Net earnings	$ 1.91	$ 3.13	$ 3.28
Weighted average shares outstanding	186,136	188,481	201,330
Diluted earnings (loss) per common share:
Earnings from continuing operations	$ 1.99	$ 3.67	$ 3.3
Loss from discontinued operations, net	(0.08)	(0.55)	(0.04)
Net earnings	$ 1.91	$ 3.12	$ 3.26
Weighted average shares outstanding - Diluted	186,736	189,269	202,918
Dividends paid per common share	$ 1.02	$ 0.9	$ 0.77
The following table is a reconciliation of the share amounts used in computing earnings per share:
Weighted average shares outstanding - Basic	186,136	188,481	201,330
Dilutive effect of stock options, SARS and performance shares	600	788	1,588
Weighted average shares outstanding - Diluted	186,736	189,269	202,918
Anti-dilutive options/SAR's excluded from diluted EPS computation	9,176	5,103	3,241

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and equivalents	$ 714,365	$ 547,409
Short-term investments	223,809	279,460
Receivables, net of allowances of $41,832 and $32,647	878,754	1,013,174
Inventories, net	570,858	636,121
Prepaid and other current assets	64,922	80,268
Deferred tax asset	69,999	73,687
Total current assets	2,522,707	2,630,119
Property, plant and equipment, net	828,922	872,134
Goodwill	3,350,217	3,255,566
Intangible assets, net	950,748	952,409
Other assets and deferred charges	113,108	103,904
Assets of discontinued operations	116,701	69,106
Total assets	7,882,403	7,883,238
Current liabilities:
Notes payable and current maturities of long-term debt	35,624	224,944
Accounts payable	357,004	373,436
Accrued compensation and employee benefits	210,804	305,572
Accrued insurance	107,455	104,938
Other accrued expenses	219,295	209,619
Federal and other taxes on income	38,994	35,005
Total current liabilities	969,176	1,253,514
Long-term debt	1,825,260	1,860,729
Deferred income taxes	292,344	314,405
Other deferrals	573,137	582,601
Liabilities of discontinued operations	$ 138,878	$ 79,123
Commitments and contingent liabilities
Stockholders' Equity:
Preferred stock	$ 0	$ 0
Common stock	247,342	246,615
Additional paid-in capital	497,291	455,228
Accumulated other comprehensive earnings	84,842	10,816
Retained earnings	5,453,022	5,286,458
Common stock in treasury	(2,198,889)	(2,206,251)
Total stockholders' equity	4,083,608	3,792,866
Total liabilities and stockholders' equity	$ 7,882,403	$ 7,883,238

Consolidated Statements of Shareholders Equity and Comprehensive Earnings - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Statement [Line Items]
Beginning Balance	$ 3,792,866	$ 3,946,173	$ 3,811,022
Effect of adoption of ASC 740			(58,157)
Effect of adoption of ASC 715, change in measurement date		(3,802)
Net earnings	356,438	590,831	661,080
Dividends paid	(189,874)	(169,071)	(154,390)
Common stock issued for options exercised	25,519	70,587	76,138
Tax benefit from the exercise of stock options	425	8,449	10,319
Stock-based compensation expense	17,176	24,367	26,714
Common stock issued, net of cancellations	632	861	660
Issuance of Treasury stock	6,400
Common stock acquired		(466,737)	(596,009)
Translation of foreign financial statements	76,442	(146,433)	116,933
Unrealized holding gains (losses), net of tax of ($302), $582 and ($582) for the Twelve months ended 12/31/2007, 12/31/2008 and 12/31/2009, respectively	1,091	(1,081)	561
Pension amortization and adjustment, net of tax of ($27,276), $31,923 and $1,740 for the Twelve months ended 12/31/2007, 12/31/2008 and 12/31/2009, respectively	(3,507)	(61,278)	51,302
Ending Balance	4,083,608	3,792,866	3,946,173
Common Stock $1 Par Value
Statement [Line Items]
Beginning Balance	246,615	244,548	242,293
Common stock issued for options exercised	712	2,038	2,241
Common stock issued, net of cancellations	15	29	14
Ending Balance	247,342	246,615	244,548
Additional Paid-In Capital
Statement [Line Items]
Beginning Balance	455,228	353,031	241,455
Common stock issued for options exercised	24,807	68,549	73,897
Tax benefit from the exercise of stock options	425	8,449	10,319
Stock-based compensation expense	17,176	24,367	26,714
Common stock issued, net of cancellations	617	832	646
Issuance of Treasury stock	(962)
Ending Balance	497,291	455,228	353,031
Accumulated Other Comprehensive Earnings (Loss)
Statement [Line Items]
Beginning Balance	10,816	217,648	48,852
Effect of adoption of ASC 715, change in measurement date		1,960
Translation of foreign financial statements	76,442	(146,433)	116,933
Unrealized holding gains (losses), net of tax of ($302), $582 and ($582) for the Twelve months ended 12/31/2007, 12/31/2008 and 12/31/2009, respectively	1,091	(1,081)	561
Pension amortization and adjustment, net of tax of ($27,276), $31,923 and $1,740 for the Twelve months ended 12/31/2007, 12/31/2008 and 12/31/2009, respectively	(3,507)	(61,278)	51,302
Ending Balance	84,842	10,816	217,648
Retained Earnings
Statement [Line Items]
Beginning Balance	5,286,458	4,870,460	4,421,927
Effect of adoption of ASC 740			(58,157)
Effect of adoption of ASC 715, change in measurement date		(5,762)
Net earnings	356,438	590,831	661,080
Dividends paid	(189,874)	(169,071)	(154,390)
Ending Balance	5,453,022	5,286,458	4,870,460
Treasury Stock
Statement [Line Items]
Beginning Balance	(2,206,251)	(1,739,514)	(1,143,505)
Issuance of Treasury stock	7,362
Common stock acquired		(466,737)	(596,009)
Ending Balance	(2,198,889)	(2,206,251)	(1,739,514)
Comprehensive Earnings (Loss)
Statement [Line Items]
Beginning Balance	382,039	829,876	676,360
Net earnings	356,438	590,831	661,080
Translation of foreign financial statements	76,442	(146,433)	116,933
Unrealized holding gains (losses), net of tax of ($302), $582 and ($582) for the Twelve months ended 12/31/2007, 12/31/2008 and 12/31/2009, respectively	1,091	(1,081)	561
Pension amortization and adjustment, net of tax of ($27,276), $31,923 and $1,740 for the Twelve months ended 12/31/2007, 12/31/2008 and 12/31/2009, respectively	(3,507)	(61,278)	51,302
Ending Balance	$ 430,464	$ 382,039	$ 829,876

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Operating Activities of Continuing Operations
Net earnings	$ 356,438	$ 590,831	$ 661,080
Adjustments to reconcile net earnings to net cash from operating activities:
Loss from discontinued operations	15,456	103,927	8,670
Depreciation and amortization	258,223	261,154	243,776
Stock-based compensation	17,912	25,246	26,292
Provision for losses on accounts receivable	17,260	12,040	6,372
Deferred income taxes	(23,062)	33,459	(30,010)
Employee retirement benefits	37,221	36,275	49,900
Gain on sale of line of business	0	(7,518)	0
Other non-current, net	26,609	(33,081)	(70,012)
Cash effect of changes in current assets and liabilities (excluding effects of acquisitions, dispositions and foreign exchange):
Accounts receivable	163,054	36,427	(13,927)
Inventories	97,241	27,128	60,662
Prepaid expenses and other assets	18,296	882	(16,203)
Accounts payable	(31,306)	(19,273)	(9,099)
Accrued expenses	(95,647)	26,161	2,905
Accrued taxes	23,319	(27,881)	29,824
Contributions to employee benefit plans	(78,954)	(55,361)	(22,537)
Net cash provided by operating activities of continuing operations	802,060	1,010,416	927,693
Investing Activities of Continuing Operations
Sale of short-term investments	406,033	0	0
Purchase of short-term investments	(348,439)	(279,460)	0
Proceeds from the sale of property and equipment	22,973	13,248	24,195
Additions to property, plant and equipment	(120,009)	(175,795)	(173,653)
Proceeds from sales of businesses	3,571	92,774	90,966
Acquisitions (net of cash and cash equivalents acquired)	(221,994)	(103,761)	(273,610)
Net cash used in investing activities of continuing operations	(257,865)	(452,994)	(332,102)
Financing Activities of Continuing Operations
Increase (decrease) in notes payable, net	(192,749)	(412,723)	347,192
Reduction of long-term debt	(33,908)	(186,390)	(33,478)
Proceeds from long-term debt	0	594,120	3,895
Purchase of treasury stock	0	(466,737)	(596,009)
Proceeds from exercise of stock options, including tax benefits	26,578	79,897	87,117
Dividends to stockholders	(189,874)	(169,071)	(154,390)
Net cash used in financing activities of continuing operations	(389,953)	(560,904)	(345,673)
Cash Flows From Discontinued Operations
Net cash used in operating activities of discontinued operations	(5,967)	(7,592)	(46,458)
Net cash used in investing activities of discontinued operations	(888)	(1,805)	(4,251)
Net cash used in discontinued operations	(6,855)	(9,397)	(50,709)
Effect of exchange rate changes on cash and cash equivalents	19,569	(45,817)	34,175
Net increase (decrease) in cash and cash equivalents	166,956	(58,696)	233,384
Cash and cash equivalents at beginning of period	547,409	606,105	372,721
Cash and cash equivalents at end of period	714,365	547,409	606,105
Supplemental information - cash paid during the year for:
Income taxes	115,047	212,348	275,505
Interest	$ 116,847	$ 120,834	$ 112,243

Acquisitions

12 Months Ended

Dec. 31, 2009

Acquisitions [Abstract]

Acquisitions


2.	Acquisitions

All of the Company’s acquisitions have been accounted for under Accounting Standard Codification (“ASC”) 805, Business Combinations (“ASC 805”). Accordingly, the accounts of the acquired companies, after adjustments to reflect fair market values assigned to assets and liabilities, have been included in the consolidated financial statements from their respective dates of acquisition. The 2009 acquisitions (see list below) are wholly-owned and had an aggregate cost of $222.0 million, net of cash acquired, plus the issuance of $6.4 million of common stock for aggregate consideration of $228.4 million at the date of acquisition. There is no material contingent consideration related to the acquisitions at December 31, 2009. In connection with certain acquisitions that occurred prior to January 1, 2009, the Company had reserves related to severance and facility closings of $0.9 million and $27.9 million at December 31, 2009 and 2008, respectively. During the twelve months ended December 31, 2009 the reserves were reduced by payments of $11.6 million and non-cash adjustments of $15.4 million. During the twelve months ended December 31, 2008, the Company recorded payments and non-cash adjustments of $28.1 million and $2.3 million, respectively.

2009 Acquisitions

Date

Type

Acquired Companies

Location (Near)

Segment

Platform

Company

8-May

Asset

Tyler Refrigeration

Niles, MI

Engineered Systems

Engineered Products

Hill PHOENIX

Manufacturer of refrigerated specialty display merchandisers and refrigeration systems for the food retail industry.

24-Aug

Asset

Mechanical Field Services

Gardendale, TX

Fluid Management

Energy

Cook Compression

Manufacturer of air and gas compressors

12-Nov

Asset

Ala Cart, Inc.

Charlotte, NC

Engineered Systems

Engineered Products

Unified Brands

Manufacturer of foodservice equipment, ventilation and conveyor systems.

17-Nov

Asset/Stock

Barker Company

Keosaugua, IA

Engineered Systems

Engineered Products

Hill PHOENIX

Manufacturer of refrigerated, non-refrigerated and hot display cases.

15-Dec

Asset

Extech Instruments

Waltham, MA

Engineered Systems

Product Identification

Datamax O’Neil

Developer of portable printers for enterprise-wide applications.

30-Dec

Asset

Inpro/Seal Company

Rock Island, IL

Fluid Management

Energy

Waukesha Bearings

Manufacturer of metallic gaskets and machined seals, parts and components for ball and roller bearings.

On May 8, 2009, Hill PHOENIX acquired certain assets and intellectual property of Tyler Refrigeration, a manufacturer of refrigerated display merchandiser and refrigeration systems for the food industry which was a unit of Carrier Corporation. Hill PHOENIX also purchased Tyler’s five service and installation branch businesses. Tyler enhances the Company’s portfolio of industry-leading proprietary technology and adds key talent that augments product innovation, engineering, field support and other customer related functions at Hill PHOENIX. The transaction also improves the Company’s position in commercial refrigeration.

On November 17, 2009, Hill PHOENIX acquired substantially all of the assets of Barker Company, Limited and all of the issued and outstanding stock of its sister company, Barker Sales and Service, Inc. (collectively the “Barker Company”). The Barker Company specializes in manufacturing display cases for supermarkets, convenience stores and food service. The Barker Company will complement and substantially increase Hill PHOENIX’s specialty product offerings and enable Hill PHOENIX to meet increasing demand for more specialized and highly customized products in the fast-growing specialty merchandiser segment. Hill PHOENIX will also benefit from capabilities sharing, an improved cost position and revenue synergies.

On December 30, 2009, Waukesha Bearings acquired substantially all of the assets of Inpro/Seal Company, a manufacturer of bearing isolator technologies. The purchase included the issuance of approximately 151,000 common shares. These shares have a six month restriction on sale. The acquisition of Inpro/Seal Company adds a broad range of rotating equipment applications and is an adjacent product line to Waukesha’s bearing solutions for oil and gas and power generation markets. The Inpro/Seal Company brand has been very successful in North America and, when leveraged across Waukesha’s global footprint, is expected to provide opportunities for growth internationally. Waukesha expects to realize additional synergies through the Company’s global sourcing initiatives and from joint technology development as manufacturers and end-users of rotating equipment seek more advanced, integrated solutions.

For certain acquisitions that occurred in the fourth quarter of 2009, the Company is in the process of obtaining or finalizing appraisals of tangible and intangible assets and it is continuing to evaluate the initial purchase price allocations, as of the acquisition date, which will be adjusted as additional information relative to the fair values of the assets and liabilities of the businesses become known. Accordingly, management has used their best estimate in the initial purchase price allocation as of the date of these financial statements.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the dates of all 2009 acquisitions and the amounts assigned to goodwill and intangible asset classifications:


	2009
	(In thousands)

Current assets, net of cash acquired	$	43,757
PP&E		11,631
Goodwill		93,689
Intangibles		93,936
Other assets		1,274

Total assets acquired		244,287
Total liabilities assumed		(15,893	)

Net assets acquired	$	228,394

The amounts assigned to goodwill and major intangible asset classifications by segment for the 2009 acquisitions are as follows:


							Average
	Fluid		Engineered				Amortization
	Management		Systems		Total		Period (Years)
	(dollar amounts in thousands)

Goodwill — Tax deductible	$	43,882	$	49,807	$	93,689		N/A
Trademarks		3,900		5,000		8,900		15
Patents		1,700		—		1,700		10-15
Customer intangibles		38,706		39,180		77,886		5-15
Unpatented technologies		—		4,400		4,400		5-15
Other intangibles		—		1,050		1,050		3-7

	$	88,188	$	99,437	$	187,625

2008 Acquisitions

Date

Type

Acquired Companies

Location (Near)

Segment

Platform

Company

1-Mar

Stock

LANTEC Winch and Gear, Inc.

Langley, B.C.

Industrial Products

Material Handling

Tulsa Winch

Manufacturer of hydraulic winches, hoists and gear reducers, serving the oil and gas, infrastructure and marine markets.

1-Apr

Asset

Brady’s Mining & Construction Supply Co.

St. Louis, Missouri

Fluid Management

Energy

EPG

Manufacturer of diamond roof drill bits and support products specifically designed for underground mining operations.

10-Apr

Asset

Neptune Chemical Pump Company

Lansdale, PA

Fluid Management

Fluid Solutions

Pump Solutions Group

Manufacturer of chemical metering pumps, chemical feed systems and peripheral products.

31-Dec

Stock

Hiltap Fittings Ltd

Calgary, Alberta

Fluid Management

Fluid Solutions

OPW FTG

Manufacturer of high and low temperature & pressure sealing and product recovery technologies.

Pro Forma Information

The following unaudited pro forma information illustrates the effect on the Company’s revenue and net earnings for the twelve-month periods ended December 31, 2009 and 2008, assuming that the 2009 and 2008 acquisitions had all taken place on January 1, 2008.


	Years Ended December 31,
	2009		2008
	(In thousands, except per share figures)

Revenue from continuing operations:
As reported	$	5,775,689	$	7,568,888
Pro forma	$	5,952,091	$	7,954,788
Net earnings from continuing operations:
As reported	$	371,894	$	694,758
Pro forma	$	379,120	$	708,468
Basic earnings per share from continuing operations:
As reported	$	2.00	$	3.69
Pro forma	$	2.04	$	3.76
Diluted earnings per share from continuing operations:
As reported	$	1.99	$	3.67
Pro forma	$	2.03	$	3.74
Average shares — Basic		186,136		188,481
Average shares — Diluted		186,736		189,269

These pro forma results of operations have been prepared for comparative purposes only and include certain adjustments to actual financial results for the relevant periods, such as imputed financing costs, and estimated additional amortization and depreciation expense as a result of intangibles and fixed assets acquired, measured at fair value. They do not purport to be indicative of the results of operations that actually would have resulted had the acquisitions occurred on the date indicated or that may result in the future.

Dispositions

12 Months Ended

Dec. 31, 2009

Dispositions [Abstract]

Dispositions


3.	Dispositions

2009

During the first and fourth quarters of 2009, the Company recorded in aggregate, a $10.3 million (after-tax) write-down to the carrying value of a business held for sale. The write-down and other adjustments resulted in a net after-tax loss on sale of approximately $11.2 million for the year. The after-tax loss from discontinued operations for the twelve months ended December 31, 2009 is approximately $15.5 million. At December 31, 2009, only one business remains held for sale.

2008

During the fourth quarter of 2008 the Company closed on a sale of a line of business in the Electronic Technologies segment resulting in a $7.5 million (after-tax) gain, which was recorded in Selling and administrative expenses in the Consolidated Statements of Operations.

The major classes of discontinued assets and liabilities included in the Consolidated Balance Sheets are as follows:


	At December 31,		At December 31,
	2009		2008
	(In thousands)

Assets of Discontinued Operations
Current assets	$	73,284	$	32,498
Non-current assets		43,417		36,608

	$	116,701	$	69,106

Liabilities of Discontinued Operations
Current liabilities	$	25,919	$	13,371
Non-current liabilities		112,959		65,752

	$	138,878	$	79,123

In addition to the entity currently held for sale in discontinued operations, the assets and liabilities of discontinued operations include residual amounts related to businesses previously sold. These residual amounts include property, plant and equipment, deferred tax assets, short and long-term reserves, and contingencies.

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


	Years Ended Ended December 31,
	2009			2008			2007
	(In thousands)

Revenue	$	55,275		$	84,065		$	169,924

Loss on sale, net of taxes(1)	$	(11,170	)	$	(101,692	)	$	(4,086	)
Earnings (loss) from operations before taxes		(2,062	)		(3,886	)		(14,619	)
Benefit (provision) for income taxes related to operations		(2,224	)		1,651			10,035

Loss from discontinued operations, net of tax	$	(15,456	)	$	(103,927	)	$	(8,670	)


(1)		Includes impairments and other adjustments to previously sold discontinued operations.

Additional information related to the after-tax loss on sale of $101.7 million recorded in discontinued operations during 2008 is as follows:


	•	During the fourth quarter of 2008, the Company recorded an additional $21.3 million (after tax) write-down to the carrying value of Triton, an operating company previously included in the Engineered Systems segment, to its estimated fair market value and recorded other gains of $0.6 million after tax related to previously sold companies.

	•	In addition, during the fourth quarter of 2008, the Company reached final settlement on certain Federal tax matters related to businesses previously discontinued and sold, resulting in a charge of approximately $15.0 million in discontinued operations. Also, consistent with ASC 740, Income Taxes (“ASC 740”), the Company recognized certain state tax assessments related to previously sold discontinued operations, resulting in a charge of approximately $13.0 million and other adjustments totaling a benefit of approximately $0.8 million, after tax.

	•	During the third quarter of 2008, the Company completed the sale of a previously discontinued business and recorded other adjustments, resulting in a net loss of approximately $0.7 million, after tax.

	•	During the second quarter of 2008, the Company discontinued Triton and reclassified Crenlo, which had been included in discontinued operations since the third quarter of 2007, into the Industrial Products segment. In the second quarter of 2008, the Company recorded a $51.1 million (after tax) write-down to the carrying value of Triton to its estimated fair market value.

	•	During the first quarter of 2008, the Company recorded adjustments to the carrying value of a business held for sale and other adjustments resulting in a net after tax loss of approximately $2.0 million.

During 2007, the Company discontinued two businesses, of which one was sold during the same year. In addition, the Company sold five businesses that were previously discontinued. Additional information related to the after-tax loss on sale of $17.1 million recorded in discontinued operations during 2007 is as follows:


	•	During the fourth quarter of 2007, the Company completed the sale of Graphics Microsystems and recorded other adjustments for an after-tax gain of $13.3 million.

	•	During the third quarter of 2007, the Company recorded as discontinued businesses, Crenlo and Graphics Microsystems. In addition, during the third quarter of 2007, the Company finalized the sale of two previously discontinued businesses and recorded other adjustments resulting in a net after-tax loss of $1.6 million.

	•	During the second quarter of 2007, the Company completed the sale of a previously discontinued business and recorded other adjustments for businesses still held for sale, resulting in a net loss of approximately $5.0 million ($8.3 million after-tax).

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2009

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies


4.	Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates may be adjusted due to changes in future economic, industry or customer financial conditions, as well as changes in technology or demand. Significant estimates include allowances for doubtful accounts receivable, net realizable value of inventories, restructuring reserves, valuation of goodwill and intangible assets, pension and post retirement assumptions, useful lives associated with amortization and depreciation of intangibles and fixed assets, warranty reserves, income taxes and tax valuation reserves, environmental reserves, legal reserves, insurance reserves and the valuations of discontinued assets and liabilities.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits and short-term investments which are highly liquid in nature and have original maturities at the time of purchase of three months or less.

Short-Term Investments

Short-term investments consist of bank term deposits that have original maturity dates that range from six to nine months. At December 31, 2009 and 2008, the Company had $223.8 million and $279.5 million of bank term deposits that earn a weighted average interest rate of 1.01% and 4.68%, respectively.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable is composed principally of trade accounts receivable that arise primarily from the sale of goods or services on account and are stated at historical cost. Management at each operating company evaluates accounts receivable to estimate the amount of accounts receivable that will not be collected in the future and records the appropriate provision. The provision for doubtful accounts is recorded as a charge to operating expense and reduces accounts receivable. The estimated allowance for doubtful accounts is based primarily on management’s evaluation of the aging of the accounts receivable balance, the financial condition of its customers, historical trends and the time outstanding of specific balances. Actual collections of accounts receivable could differ from management’s estimates due to changes in future economic, industry or customers’ financial conditions.

Fair Value of Financial Instruments

The carrying amount of cash and cash equivalents, trade receivables, accounts payable, notes payable and accrued expenses approximated fair value as of December 31, 2009 and 2008 due to the short maturity of less than one year for these instruments.

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instruments categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. ASC 820 establishes three levels of inputs that may be used to measure fair value:

Level 1: inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: inputs other than level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities.

Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2009 by the level within the fair value hierarchy:


	Fair Value Measurements at December 31, 2009						Fair Value Measurements at December 31, 2008
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	(In millions)						(In millions)

Short Term Investments	$	223.8	$	—	$	—	$	279.5	$	—	$	—

Short term investments are included in current assets in the Consolidated Balance Sheets, and generally consist of bank term deposits with original maturities greater than 90 days.

Inventories

Inventories for the majority of the Company’s subsidiaries, including all international subsidiaries, are stated at the lower of cost, determined on the first-in, first-out (FIFO) basis, or market. Other domestic inventory is stated at cost, determined on the last-in, first-out (LIFO) basis, which is less than market value. Future inventory valuations could differ from management’s estimates due to changes in economic, industry or customer financial conditions, as well as unanticipated changes in technology or demand.

Property, Plant and Equipment

Property, plant and equipment includes the historic cost of land, buildings, equipment and significant improvements to existing plant and equipment or, in the case of acquisitions, a fair market value appraisal of such assets completed at the time of acquisition. Expenditures for maintenance, repairs and minor renewals are expensed as incurred. When property or equipment is sold or otherwise disposed of, the related cost and accumulated depreciation is removed from the respective accounts and the gain or loss realized on disposition is reflected in earnings. Depreciation expense was $159.6 million in 2009, $159.3 million in 2008 and $151.7 million in 2007 and was calculated on a straight-line basis for assets acquired during all periods presented. The Company depreciates its assets over their estimated useful lives as follows: buildings and improvements 5 to 31.5 years; machinery and equipment 3 to 7 years; furniture and fixtures 3 to 7 years; and vehicles 3 years.

Derivative Instruments

The Company periodically enters into financial transactions specifically to hedge its exposures to various items, including, but not limited to, interest rate and foreign exchange rate risk. Through various programs, the Company hedges its cash flow exposures to foreign exchange rate risk by entering into foreign exchange forward contracts and collars. The Company does not enter into derivative financial instruments for speculative purposes and does not have a material portfolio of derivative financial instruments.

The Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. If the derivative is designated as a fair value hedge and is effective, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings as offsets to the changes in fair value of the exposures being hedged in the same period. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive earnings and are recognized in earnings as the hedged transaction occurs. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings immediately.

Tests for hedge ineffectiveness are conducted periodically and any ineffectiveness found is recognized in the Consolidated Statements of Operations. The fair market value of all outstanding transactions is recorded in Other assets and deferred charges, or in the Other deferrals section of the balance sheet, as applicable. The corresponding change in value of the hedged assets/liabilities is recorded directly in that section of the Consolidated Balance Sheets.

Goodwill

Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. In accordance with ASC 350, Intangibles — Goodwill and Other (“ASC 350”), the Company does not amortize goodwill. Instead, goodwill is tested for impairment annually unless indicators of impairment exist, such as a significant sustained change in the business climate, during the interim periods.

For 2009 and 2008, the Company identified 10 reporting units each year for its annual goodwill test which was performed as of September 30. Step one of the test compared the fair value of the reporting unit using a discounted cash flow method to its book value. This method uses the Company’s own market assumptions including projecting future cash flows, determining appropriate discount rates, and other assumptions which are reasonable and inherent in the discounted cash flow analysis. The projections are based on historical performance and future estimated results. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. Step two, which compares the book value of the goodwill to its implied fair value, was not necessary since there were no indicators of potential impairment from step one. For information related to the amount of the Company’s goodwill by segment, see Note 7.

Indefinite-Lived Intangible Assets

Similar to goodwill, the Company tests indefinite-lived, intangible assets (primarily trademarks) at least annually unless indicators of impairment exist, such as a significant sustained change in the business climate, during the interim periods. In performing these tests, the Company uses a discounted cash flow method to calculate and compare the fair value of the intangible to its book value. This method uses the Company’s own market assumptions which are reasonable and inherent in the discounted cash flow analysis. If the fair value is less than the book value of the intangibles, an impairment charge would be recognized. For information related to the amount of the Company’s intangible asset classes, see Note 7.

Long-Lived Assets

In accordance with ASC 360, Property Plant and Equipment (“ASC 360”) long-lived assets (including intangible assets that are amortized) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, such as a significant sustained change in the business climate, during the interim periods. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows is produced and compared to its carrying value. If an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value as determined by an estimate of discounted future cash flows. There were no indicators of impairment noted during 2009.

Foreign Currency

Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates and profit and loss accounts have been translated using weighted average yearly exchange rates. Adjustments resulting from translation have been recorded in the equity section of the balance sheet as cumulative translation adjustments. Assets and liabilities of an entity that are denominated in currencies other than an entity’s functional currency are remeasured into the functional currency using end of period exchange rates or historical rates where applicable to certain balances. Gains and losses related to these remeasurements are recorded within the Statements of Operations as a component of Other Expense (Income), net.

Revenue Recognition

Revenue is recognized when all of the following circumstances are satisfied: a) persuasive evidence of an arrangement exists, b) price is fixed or determinable, c) collectability is reasonably assured, and d) delivery has occurred. In revenue transactions where installation is required, revenue can be recognized when the installation obligation is not essential to the functionality of the delivered products. Revenue transactions involving non-essential installation obligations are those which can generally be completed in a short period of time at insignificant cost and the skills required to complete these installations are not unique to the Company and in many cases can be provided by third parties or the customers. If the installation obligation is essential to the functionality of the delivered product, revenue recognition is deferred until installation is complete. In addition, when it is determined that there are multiple deliverables to a sales arrangement, the Company will allocate consideration received to the separate deliverables based on their relative fair values and recognize revenue based on the appropriate criteria for each deliverable identified. In a limited number of revenue transactions, other post-shipment obligations such as training and customer acceptance are required and, accordingly, revenue recognition is deferred until the customer is obligated to pay, or acceptance has been confirmed. Service revenue is recognized and earned when services are performed and is not significant to any period presented. The Company recognizes contract revenue under percentage of completion accounting using the cost to cost method as the measure of progress. The application of percentage of completion accounting requires estimates of future revenues and contract costs over the full term of the contract. The Company updates project cost estimates on a quarterly basis or more frequently, when changes in circumstances warrant.

Stock-Based Compensation

The Company records stock-based compensation expense on a straight-line basis, generally over the explicit service period of three years (except for retirement eligible employees and retirees). Awards granted to retirement eligible employees are expensed immediately and the Company shortens the vesting period, for expensing purposes, for any employee who will become eligible to retire within the three-year explicit service period. Expense for these employees is recorded over the period from the date of grant through the date the employee first becomes eligible to retire and is no longer required to provide service. For additional information related to stock-based compensation, including activity for 2009, 2008 and 2007, see Note 10.

Income Taxes

The provision for income taxes on continuing operations includes federal, state, local and non-U.S. taxes. Tax credits, primarily for research and experimentation and non-U.S. earnings, export programs, and U.S. manufacturer’s tax deduction are recognized as a reduction of the provision for income taxes on continuing operations in the year in which they are available for tax purposes. Deferred taxes are provided on temporary differences between assets and liabilities for financial and tax reporting purposes as measured by enacted tax rates expected to apply when temporary differences are settled or realized. Future tax benefits are recognized to the extent that realization of those benefits is considered to be more likely than not. A valuation allowance is established for deferred tax assets for which realization is not assured. The Company has not provided for any residual U.S. income taxes on unremitted earnings of non-U.S. subsidiaries as such earnings are currently intended to be indefinitely reinvested.

ASC 740 specifies the way companies are to account for uncertainty in income tax reporting, and prescribes a methodology for recognizing, reversing and measuring the tax benefits of a tax position taken, or expected to be taken, in a tax return. The provisions of this guidance became effective January 1, 2007 and, as a result of adopting these provisions, the Company recorded a $58.2 million increase to reserves as a “cumulative effect” decrease to opening retained earnings as of January 1, 2007, of which $53.4 million was included in continuing operations. Including this “cumulative effect” adjustment, the Company had unrecognized tax benefits, net of indirect benefits and deposits, of $190.5 million at January 1, 2007, of which $35.4 million related to accrued interest and penalties. The portion of the unrecognized tax benefits at January 1, 2007 included in continuing operations totaled $147.6 million, of which $28.0 million related to accrued interest and penalties. For additional information on the Company’s income taxes and unrecognized tax benefits, see Note 11.

Research and Development Costs

Research and development costs, including qualifying engineering costs, are expensed when incurred and amounted to $178.3 million in 2009, $189.2 million in 2008 and $193.2 million in 2007.

Risk, Retention, Insurance

The Company currently self-insures its product and commercial general liability claims up to $5.0 million per occurrence, its workers’ compensation claims up to $0.5 million per occurrence, and automobile liability claims up to $1.0 million per occurrence. Third-party insurance provides primary level coverage in excess of these amounts up to certain specified limits. In addition, the Company has excess liability insurance from third-party insurers on both an aggregate and an individual occurrence basis well in excess of the limits of the primary coverage. A worldwide program of property insurance covers the Company’s owned and leased property and any business interruptions that may occur due to an insured hazard affecting those properties, subject to reasonable deductibles and aggregate limits. The Company’s property and casualty insurance programs contain various deductibles that, based on the Company’s experience, are typical and customary for a company of its size and risk profile. The Company does not consider any of the deductibles to represent a material risk to the Company. The Company generally maintains deductibles for claims and liabilities related primarily to workers’ compensation, health and welfare claims, general commercial, product and automobile liability and property damage, and business interruption resulting from certain events. The Company accrues for claim exposures that are probable of occurrence and can be reasonably estimated. As part of the Company’s risk management program, insurance is maintained to transfer risk beyond the level of self-retention and provides protection on both an individual claim and annual aggregate basis.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2009

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets


7.	Goodwill and Other Intangible Assets

The changes in the carrying value of goodwill by segment through the year ended December 31, 2009 are as follows:


					Other							Other
					Adjustments							Adjustments
					Primarily							Primarily
			2008		Currency					2009		Currency
	12/31/07		Acquisitions		Translations			12/31/08		Acquisitions		Translations			12/31/09
	(In thousands)

Electronic Technologies	$	1,024,857	$	—	$	(48,151	)(A)	$	976,706	$	—	$	2,800		$	979,506
Industrial Products		905,497		12,521		1,197			919,215		—		1,236			920,451
Fluid Management		536,163		43,872		(8,814	)		571,221		43,882		2,829			617,932
Engineered Systems		793,212		—		(4,788	)		788,424		49,807		(5,903	)(B)		832,328

Total	$	3,259,729	$	56,393	$	(60,556	)	$	3,255,566	$	93,689	$	962		$	3,350,217


(A)		Includes $38.0 million related to the sale of a line of business in the Electronic Technologies segment.

(B)		Includes $10.8 million related to purchase accounting adjustments in the Engineered Systems segment.

The changes in the carrying value of goodwill are as follows:


	2009			2008
	(In thousands)

Goodwill balance at January 1,	$	3,415,288		$	3,419,451
Accumulated impairment		159,722			159,722

Beginning balance, net Goodwill		3,255,566			3,259,729
Goodwill aquired during year		93,689			56,393
Cumulative translation effect		11,752			(17,206	)
Impairment losses during the year		—			—
Goodwill related to sale of business		—			(43,350	)
Purchase accounting and other adjustments		(10,790	)		—

Goodwill ending balance		3,509,939			3,415,288

Accumulated impairment		159,722			159,722
Goodwill balance, net at December 31,	$	3,350,217		$	3,255,566

The accumulated impairment balance of $159.7 million as of December 31, 2009 and 2008 consists of $99.8 million relating to the Industrial Products segment and $59.9 million relating to the Fluid Management segment.

The following table provides the gross carrying value and accumulated amortization for each major class of intangible assets:


	At December 31, 2009						At December 31, 2008
	Gross Carrying		Accumulated		Average		Gross Carrying		Accumulated
	Amount		Amortization		Life (Years)		Amount		Amortization
	(dollar amounts in thousands)

Amortized Intangible Assets:
Trademarks	$	72,790	$	16,492		15	$	32,223	$	12,453
Patents		128,041		84,092		16		129,233		79,241
Customer Intangibles		764,865		267,558		10		681,636		200,169
Unpatented Technologies		134,822		75,244		5		129,303		61,871
Non-Compete Agreements		3,396		3,310		5		3,475		3,400
Drawings & Manuals		11,922		6,523		11		13,653		5,441
Distributor Relationships		73,230		20,974		11		72,413		17,193
Other		20,344		12,722		5		22,725		10,270

Total		1,209,410		486,915		10		1,084,661		390,038

Unamortized Intangible Assets:
Trademarks		228,253						257,786

Total Intangible Assets	$	1,437,663	$	486,915			$	1,342,447	$	390,038

Total intangible amortization expense for the twelve months ended December 31, 2009, 2008 and 2007 was $98.6 million, $101.9 million and $92.1 million, respectively. Amortization expense, based on current intangible balances is estimated to be $81.5 million, $84.2 million, $83.9 million, $82.9 million and $76.1 million in 2010 through 2014, respectively.

Lines of Credit, Debt and Hedging Activities

12 Months Ended

Dec. 31, 2009

Lines of Credit, Debt and Hedging Activities [Abstract]

Lines of Credit, Debt and Hedging Activities


9.	Lines of Credit, Debt and Hedging Activities

During 2009, the Company repaid its $192.8 million outstanding balances of commercial paper and other short-term debt.

During the second quarter ended June 30, 2008, the Company repaid its $150 million 6.25% Notes due June 1, 2008. In addition, on March 14, 2008, the Company issued $350 million of 5.45% notes due 2018 and $250 million of 6.60% notes due 2038. The net proceeds of $594.1 million from the notes were used to repay borrowings under the Company’s commercial paper program, and were reflected in long-term debt in the Consolidated Balance Sheets at December 31, 2008. The notes and debentures are redeemable at the option of the Company in whole or in part at any time at a redemption price that includes a make-whole premium, with accrued interest to the redemption date.

During the first quarter of 2008, the Company entered into several interest rate swaps in anticipation of the debt financing completed on March 14, 2008 which, upon settlement, resulted in a net gain of $1.2 million which was deferred and will be amortized over the life of the related notes.

The Company may, from time to time, enter into interest rate swap agreements to manage its exposure to interest rate changes. Interest rate swaps are agreements to exchange fixed and variable rate payments based on notional principal amounts. There is an outstanding swap agreement for a total notional amount of $50.0 million, or CHF65.1 million, which swaps the U.S. dollar 6-month LIBOR rate and the Swiss Franc 6-month LIBOR rate. This agreement hedges a portion of the Company’s net investment in non-U.S. operations and matures on February 15, 2011. The fair value outstanding at December 31, 2009 and 2008, included a loss of $13.3 million and $12.0 respectively, which was based on quoted market prices for similar instruments ( Level 2 inputs under the ASC 820 hierarchy). The change in fair value of this hedge, which was not significant during 2009, is recorded in Cumulative Translation Adjustments and in Other Deferrals in the Consolidated Balance Sheets. This hedge is effective.

There are no amounts excluded from the assessment of hedge effectiveness and there are no credit risk related contingent features in the Company’s derivative instruments. In addition, the amount of gains or losses from hedging activity recorded in earnings is not significant and the amount of unrealized gains or losses from cash flow hedges which are expected to be reclassified to earnings in the next twelve months is not significant. The majority of the Company’s hedged exposure for forecasted transactions ranges in the length of time of up to one year. The Company believes it is probable that all forecasted cash flow transactions will occur.

The Company is exposed to credit loss in the event of nonperformance by counterparties to the financial instrument contracts held by the Company; however, nonperformance by the these counterparties is considered unlikely as the Company’s policy is to contract with highly rated diversified counterparties. See Note 4 for additional information on the Company’s derivative and hedging activity.

At December 31, 2008, the Company had open foreign exchange forward purchase contracts expiring through December 2010 related to cash flow and fair value hedges of foreign currency exposures. The fair values of these contracts were based on quoted market prices for identical instruments as of December 31, 2009 (Level 1 under the ASC 820 hierarchy). See Note 4 for additional information on the Company’s derivative and hedging activity.

The details of the open contracts related to as of December 31, 2009 are as follows:


	US Dollars Sold
	Expiration From 12/31/09
	Less Than 1								Average
Forward Currencies Purchased	Month		2-3 Months		4-6 Months		7-12 Months		Contract Rate
	(In thousands)

Japanese Yen	$	1,796	$	299	$	—	$	—		91.495
Japanese Yen	$	—	$	3,012	$	—	$	—		91.030
Euros	$	—	$	680	$	—	$	—		0.670


Collar	Put		Call		US Dollar Value

US Dollar to Euro		1.420		1.470	$	4,000	Maturities from 3/29/10 - 12/31/10

					Chinese Yuan Value

Chinese Yuan to US Dollar		6.500		6.808		247,000	Maturities from 1/25/10 - 12/29/10

During the third quarter of 2008, the Company entered into a foreign currency hedge which was subsequently settled within the quarter. As a result of terminating the hedge, the Company recorded a gain of $2.4 million in the third quarter ended September 30, 2008.

On November 9, 2007, the Company entered into a $1 billion five-year unsecured revolving credit facility with a syndicate of banks (the “Credit Agreement”) which replaced a facility with substantially similar terms. At the Company’s election, loans under the Credit Agreement will bear interest at a Eurodollar or Sterling rate based on LIBOR, plus an applicable margin ranging from 0.130% to 0.35% (subject to adjustment based on the rating accorded the Company’s senior unsecured debt by S&P and Moody’s), or at a base rate pursuant to a formula defined in the Credit Agreement. In addition, the Credit Agreement requires the Company to pay a facility fee and a utilization fee in certain circumstances and imposes various restrictions on the Company such as, among other things, the requirement for the Company to maintain an interest coverage ratio of EBITDA to consolidated net interest expense of not less than 3.5 to 1. The Company was in compliance with all of its debt covenants at December 31, 2009 and had a coverage ratio of 9.1 to 1. The Company primarily uses this facility as liquidity back-up for its commercial paper program and has not drawn down any loans under the $1 billion facility and does not anticipate doing so. As of December 31, 2009, no commercial paper was outstanding.

During the third quarter of 2006, the Company closed a structured five-year, non-interest bearing, $165.1 million amortizing loan with a non-US lender, which also included a participation fee received by the Company of $9.9 million. The loan was recorded at face value. The Company also expects to incur a total of $5.7 million in debt related issuance costs over the course of the loan. Beginning in April 2007, the repayment schedule requires payments every April and September with the final payment to be made in July 2011. The participation fee will be amortized ratably into Other Expense (income), net over the term of the loan and is recorded in Other Deferrals in the Consolidated Balance Sheets. The loan agreement includes a put and call provision that could have been exercised starting in June 2008 through the end of the loan term.

In November 2008, the Canadian Dollar Credit Facility with the Bank of Nova Scotia expired. The Company did not renew the facility in 2008.

Notes payable and current maturities of long-term debt shown on the Consolidated Balance Sheets for 2008 principally represented commercial paper issued in the U.S. The weighted average interest rate for short-term borrowings for the years 2009 and 2008 was 0.3% and 2.4%, respectively. The commercial paper balance was paid in full as of December 31, 2009.

The Company’s long-term debt with a book value of $1,860.9 million, of which $35.6 million matures in less than one year, had a fair value of approximately $1,954.6 million at December 31, 2009. On December 31, 2008, the Company’s long-term debt instruments had a book value of $1,892.9 million and a fair value of approximately $2,018.5 million. The estimated fair value of the long-term debt is based on quoted market prices for similar issues.

A summary of the Company’s long-term debt recorded at face amount, net of unamortized discount and the fair value of interest rate swaps is as follows for the years ended December 31:


			Weighted	Weighted
			Average	Average Effective
	Maturities		Interest Rate	Interest Rate	2009		Fair Value		2008		Fair Value
	(In thousands)

Notes*		2010 to 2038	5.57%	5.68%	$	1,361,242	$	1,441,389	$	1,393,505	$	1,509,355
Debentures **		2028 to 2035	5.89%	5.95%		495,234		513,180		495,039		509,150
Other long-term debt, including capital leases						4,408		N/A		4,379		N/A

Total long-term debt						1,860,884		1,954,569		1,892,923		2,018,505
Less current installments						35,624		N/A		32,194		N/A

Long-term debt, excluding current installments					$	1,825,260	$	1,954,569	$	1,860,729	$	2,018,505


*		Includes unamortized discount of $6.2 million and $7.1 million in 2009 and 2008, respectively.

**		Includes unamortized discount of $4.8 million and $5.0 million in 2009 and 2008, respectively.

Annual repayments of long-term debt are $35.6 million in 2010, 436.2 million in 2011, $0.0 million in 2012 through 2013, $190 million and $1,388.9 million thereafter. The Company’s Five-Year $1 Billion Revolving Credit Facility expires in 2012.

Interest expense for the years ended December 31, 2009, 2008 and 2007 was $116.2 million, $130.2 million and $112.3 million, respectively. Interest income for the years ended December 31, 2009, 2008 and 2007 was $15.8 million, $34.2 million and $22.7 million, respectively.

Equity and Cash Incentive Program

12 Months Ended

Dec. 31, 2009

Equity and Cash Incentive Program [Abstract]

Equity and Cash Incentive Program


10.	Equity and Cash Incentive Program

2005 Equity and Cash Incentive Plan

On April 20, 2004, the shareholders approved the Dover Corporation 2005 Equity and Cash Incentive Plan (the “2005 Plan”) to replace the 1995 Incentive Stock Option Plan and 1995 Cash Performance Program (the “1995 Plan”), which expired on January 30, 2005. Under the 2005 Plan, a maximum aggregate of 20 million shares were reserved for grants (non-qualified and incentive stock options, stock settled stock appreciation rights (“SARs”), restricted stock, and performance share awards) to key personnel between February 1, 2005 and January 31, 2015, provided that no incentive stock options shall be granted under the plan after February 11, 2014 and a maximum of two million shares may be granted as restricted stock or performance share awards. The exercise price of options and SARs may not be less than the fair market value of the stock at the time the awards are granted. The period during which these options and SARs are exercisable is fixed by the Company’s Compensation Committee at the time of grant, but generally may not commence sooner than three years after the date of grant, and may not exceed ten years from the date of grant. All stock options or SARs issued under the 1995 Plan or the 2005 Plan vest after three years of service and expire at the end of ten years. All stock options and SARs are granted at regularly scheduled quarterly Compensation Committee meetings (usually only at the meeting during the first quarter) and have an exercise price equal to the closing price of the Company’s stock on the New York Stock Exchange on the date of grant. New common shares are issued when options or SARs are exercised.

Performance Share Awards

In May 2009, the shareholders of the Company approved an amendment to the 2005 Plan allowing the granting of performance share awards that will become payable in common shares upon achievement of pre-established performance targets. The changes to the 2005 Plan are detailed in the Company’s Proxy Statement dated March 24, 2009 under the heading “Proposal 2 — Proposal to Approve Amendments to the 2005 Equity and Cash Incentive Plans.” Performance share awards granted under the 2005 Plan are being expensed over the three year period that is the requisite performance and service period. Awards shall become vested if (1) the Company achieves certain specified stock performance targets compared to a peer group of 38 companies and (2) the employee remains continuously employed by the company during the performance period. Partial vesting may occur for certain terminations not for cause and for retirements. The estimated compensation expense recognized for performance share awards is net of estimated forfeitures. The Company assesses performance levels quarterly. Compensation expense for the year ended December 31, 2009 was $0.6 million. Unrecognized compensation expense cost as of December 31, 2009 is $0.7 million which will be recognized over a weighted average period of 1.9 years.


				Weighted-Average
	Number of			Grant-Date
Performance Share Awards	Shares			Fair Value

Unvested at December 31, 2008		—			—
Granted		75,892		$	35.79
Vested		—			—
Forfeited		(886	)		35.79

Unvested at December 31, 2009		75,006		$	35.79

The performance share awards are market condition awards and have been fair valued on the date of grant using the Monte Carlo simulation model with the following assumptions:


	Q2 2009
Performance Shares	Grant

Risk-free interest rate		1.30	%
Dividend yield		2.93	%
Expected life (years)		2.7
Volatility		39.57	%
Grant price	$	32.47
Fair value granted	$	35.79

SARs and Stock Options

In the first and second quarters of 2009, the Company issued SARs covering 2,796,124 and 29,577 shares, respectively under the 2005 Plan. In 2008, the Company issued 2,234,942 SARs under the 2005 Plan. No stock options were issued in 2009, 2008 or 2007 and the Company does not anticipate issuing stock options in the future. The fair value of each SAR grant was estimated on the date of grant using a Black-Scholes option-pricing model with the following assumptions:


	Q2 2009			Q1 2009			2008			2007
	Grant			Grant			Grant			Grant

Risk-free interest rate		3.44	%		2.06	%		3.21	%		4.84	%
Dividend yield		2.82	%		3.23	%		1.86	%		1.43	%
Expected life (years)		6.5			6.5			6.5			6.5
Volatility		32.20	%		30.47	%		26.09	%		28.25	%
Grant price	$	35.50		$	29.45		$	42.30		$	50.60
Fair value granted	$	9.82		$	6.58		$	10.97		$	16.65

A summary of activity for SARs and stock options for the years ended December 31, 2009, 2008 and 2007 is as follows:


	SARs									Stock Options
								Weighted										Weighted
								Average										Average
				Weighted				Remaining					Weighted					Remaining
				Average		Aggregate		Contractual					Average					Contractual
				Exercise		Intrinsic		Term					Exercise		Aggregate			Term
	Shares			Price		Value		(Years)		Shares			Price		Intrinsic Value			(Years)

Outstanding at 1/1/2007		1,715,510		$	46.00						10,777,295		$	35.38
Granted		1,731,882			50.60						—			—
Forfeited		(206,166	)		48.11						(276,125	)		37.02
Exercised		—			—	$	—				(2,240,440	)		33.74	$	34,095,507

Outstanding at 12/31/2007		3,241,226			48.32		2,072,808		8.61		8,260,730			35.77		108,935,136

Exercisable at December 31, 2007 through February 14, 2014		—									6,253,310		$	35.06

Outstanding at 1/1/2008		3,241,226		$	48.32						8,260,730		$	35.77
Granted		2,234,942			42.30						—			—
Forfeited		(373,193	)		45.90						(139,826	)		36.82
Exercised		—			—	$	—				(2,040,458	)		34.29	$	15,806,826

Outstanding at 12/31/2008		5,102,975			45.82		—		8.23		6,080,446			36.22		35,359,392			4.29

Exercisable at December 31, 2008 through February 14, 2015		—									6,080,466		$	36.22

Outstanding at 1/1/2009		5,102,975		$	45.82						6,080,446		$	36.22
Granted		2,825,701			29.51						—			—
Forfeited		(320,490	)		38.85						(174,386	)		31.06
Exercised		—			—	$	—				(713,678	)		34.63			(A)

Outstanding at 12/31/2009		7,608,186			40.05		—		7.89		5,192,382			36.62		8,903,120			3.48

Exercisable at December 31, 2009 through:
2010		—			—		—				227,834		$	39.09	$	—
2011		—			—		—				550,740			41.00		—
2012		—			—		—				695,451			37.92		—
2013		—			—		—				952,801			24.57		8,903,120
2014		—			—		—				1,162,736			41.25		—
2015		—			—		—				1,602,820			38.00		—
2016		1,477,658			46.00		—				—					—

Total exercisable at December 31, 2009		1,477,658		$	46.00		—		6.09		5,192,382		$	36.62		8,903,120			3.41


(A)		Cash received by the Company for stock options exercised during the year ended December 31, 2009 totaled $24.7 million.

Unrecognized compensation expense related to not yet exercisable SARs was $16.7 million at December 31, 2009. This cost is expected to be recognized over a weighted average period of 1.7 years. The fair value of options and SARs which became exercisable during the years ended December 31, 2009, 2008 and 2007 was $25.1 million, $26.2 million and $28.5 million, respectively.

Additional Detail


	SARs Outstanding						SARs Exercisable
					Weighted Average						Weighted Average
			Weighted Average		Remaining Life				Weighted Average		Remaining Life
Range of Exercise Prices	Number		Exercise Price		in Years		Number		Exercise Price		in Years

$42.30-$50.60		4,907,517	$	45.84		7.22		1,477,658	$	46.00		6.09
$29.45-$35.50		2,700,669	$	29.13		9.12		—	$	—		—


	Options Outstanding						Options Exercisable
					Weighted Average						Weighted Average
			Weighted Average		Remaining Life				Weighted Average		Remaining Life
Range of Exercise Prices	Number		Exercise Price		in Years		Number		Exercise Price		in Years

$24.50-$31.00		953,701	$	24.52		3.12		953,701	$	24.52		3.12
$33.00-$39.00		2,518,305	$	38.09		3.85		2,518,305	$	38.09		3.85
$39.40-$43.00		1,720,376	$	41.17		3.15		1,720,376	$	41.17		2.92

The Company also has restricted stock authorized for grant (as part of the 2005 Plan), under which common stock of the Company may be granted at no cost to certain officers and key employees. In general, restrictions limit the sale or transfer of these shares during a two or three year period, and restrictions lapse proportionately over the two or three year period. The Company did not grant any restricted shares in 2009, 2008 or 2007, and there are no grants outstanding as of December 31, 2009.

The Company has a stock compensation plan under which non-employee directors are granted shares of the Company’s common stock each year as more than half of their compensation for serving as directors. During 2009, the Company issued an aggregate of 14,726 shares, of its common stock to eleven outside directors (after withholding 6,823 additional shares to satisfy tax obligations) as partial compensation for serving as directors of the Company during 2009. During 2008, the Company issued an aggregate of 29,213 shares, net, of its common stock to twelve outside directors (after withholding 11,582 additional shares to satisfy tax obligations) as partial compensation for serving as directors of the Company during 2008. During 2007, the Company issued an aggregate of 14,129 shares of its common stock, net, to twelve outside directors (after withholding an aggregate of 6,056 additional shares to satisfy tax obligations) as partial compensation for serving as directors of the Company during 2007.

Income Taxes

12 Months Ended

Dec. 31, 2009

Income Taxes [Abstract]

Income Taxes


11.	Income Taxes

Income taxes have been based on the following components of “Earnings Before Provision for Income Taxes and Discontinued Operations” in the Consolidated Statements of Operations:


	For the Years Ended December 31,
	2009		2008		2007
	(In thousands)

Domestic	$	258,313	$	527,509	$	543,024
Foreign		233,305		418,510		369,343

	$	491,618	$	946,019	$	912,367

Total income taxes were as follows:


	For the Years Ended December 31,
	2009			2008			2007
	(In thousands)

Taxes on income from continuing operations	$	119,724		$	251,261		$	242,617
Credit to Stockholders’ equity for tax benefit related to stock option exercises		(425	)		(8,449	)		(10,319	)

	$	119,299		$	242,812		$	232,298

Income tax expense (benefit) for the years ended December 31, 2009, 2008 and 2007 is comprised of the following:


	For the Year Ended December 31,
	2009			2008		2007
	(In thousands)

Current:
U.S. Federal	$	71,269		$	124,193	$	180,595
State and local		5,191			24,060		14,006
Foreign		68,065			69,549		78,026

Total current — continuing		144,525			217,802		272,627
Deferred:

U.S. Federal		(12,985	)		21,207		(30,066	)
State and local		116			301		10,410
Foreign		(11,932	)		11,951		(10,354	)

Total deferred — continuing		(24,801	)		33,459		(30,010	)

Total expense — continuing	$	119,724		$	251,261	$	242,617

Differences between the effective income tax rate and the U.S. Federal income statutory rate are as follows:


	For the Years Ended December 31,
	2009			2008			2007

U.S. Federal income tax rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of Federal income tax benefit		1.5			1.7			1.8
Foreign operations tax effect		(5.2	)		(6.9	)		(6.8	)

Subtotal		(3.7	)		(5.2	)		(5.0	)

R&E tax credits		(0.4	)		(0.5	)		(0.4	)
Domestic manufacturing deduction		(0.9	)		(0.7	)		(1.0	)
Foreign tax credits		1.2			(0.1	)		(0.1	)
Branch losses		(1.1	)		(0.5	)		(0.3	)
Settlement of tax contingencies		(6.9	)		(1.9	)		(1.8	)
Other, principally non-tax deductible items		1.2			0.5			0.2

Effective rate from continuing operations		24.4	%		26.6	%		26.6	%

The tax effects of temporary differences that give rise to future deferred tax assets and liabilities are as follows:


	At December 31,
	2009			2008
	(In thousands)

Deferred Tax Assets:
Accrued insurance	$	9,794		$	10,174
Accrued compensation, principally postretirement benefits and other employee benefits		103,800			116,781
Accrued expenses, principally for state income taxes, interest and warranty		73,147			75,115
Long-term liabilities, principally warranty, environmental, and exit costs		2,548			4,006
Inventories, principally due to reserves for financial reporting purposes and capitalization for tax purposes		25,593			24,259
Net operating loss and other carryforwards		106,009			79,880
Accounts receivable, principally due to allowance for doubtful accounts		9,786			7,448
Prepaid pension assets		7,947			11,345
Other assets		13,904			20,784

Total gross deferred tax assets		352,528			349,792

Valuation allowance		(43,171	)		(55,486	)

Total deferred tax assets	$	309,357		$	294,306

Deferred Tax Liabilities:
Accounts receivable	$	(9,098	)	$	(9,372	)
Plant and equipment, principally due to differences in depreciation		(46,831	)		(47,687	)
Intangible assets, principally due to different tax and financial reporting bases and amortization lives		(475,773	)		(477,966	)

Total gross deferred tax liabilities	$	(531,702	)	$	(535,025	)

Net deferred tax liability	$	(222,345	)	$	(240,719	)

The components of the net deferred tax liability are classified as follows in the consolidated balance sheets:


Current deferred tax asset	$	69,999		$	73,686
Non-current deferred tax liability		(292,344	)		(314,405	)

The Company has loss carryforwards for U.S. federal and non-U.S. purposes as of December 31, 2009 of $8.4 million and $73.8 million, respectively, and as of December 31, 2008, $21.3 million and $65.4 million, respectively. The federal loss carryforwards are available for use against the Company’s consolidated federal taxable income and expire in 2024. The entire balance of the non-U.S. losses is available to be carried forward, with $20.4 million of these losses beginning to expire during the years 2010 through 2029. The remaining $53.4 million of such losses can be carried forward indefinitely.

The Company has loss carryforwards for state purposes as of December 31, 2009 and 2008 of $220.9 and $205.3 million, respectively. The state loss carryforwards are available for use by the Company between 2010 and 2028.

The Company has non-U.S. tax credit carryforwards of $56.0 million and $27.9 million at December 31, 2009 and 2008, respectively, that are available for use by the Company between 2010 and 2019.

The Company has research and development credits of $3.9 million at December 31, 2009 and at December 31, 2008 that are available for use by the Company between 2010 and 2026.

At December 31, 2009 and 2008, the Company had available alternative minimum tax credits of $3.1 million, which are available for use by the Company indefinitely, and alternative minimum tax non-U.S. tax credits of $11.7 million that are available for use by the Company between 2010 and 2026.

The Company maintains valuation allowances by jurisdiction against the deferred tax assets related to certain of these carryforwards as utilization of these tax benefits is not assured for certain jurisdictions.

The Company has not provided for U.S. federal income taxes or tax benefits on the undistributed earnings of its international subsidiaries because such earnings are reinvested and it is currently intended that they will continue to be reinvested indefinitely. At December 31, 2009, the Company has not provided for federal income taxes on earnings of approximately $668.9 million from its international subsidiaries.

In 2009 and 2008, the Company recognized $33.7 and $18.3 million, respectively, in tax benefits related to the resolution of various state and U.S. income tax issues.

Unrecognized Tax Benefits

Effective January 1, 2007, the Company adopted certain provisions of ASC 740. See Note 4 for additional information on the impact of adoption on the Company’s Consolidated Financial Statements.

The Company files Federal income tax returns, as well as multiple state, local and non-U.S. jurisdiction tax returns. The Company is no longer subject to examinations of its federal income tax returns by the Internal Revenue Service (“IRS”) for years through 2006. All significant state and local, and international matters have been concluded for years through 1993 and 2000, respectively. With the exception of matters in litigation, for which an estimate cannot be made due to uncertainties, the Company does not believe it is reasonably possible that its unrecognized tax benefits will significantly change within the next twelve months.

The following table is a reconciliation of the beginning and ending balances of the Company’s unrecognized tax benefits:


	Continuing			Discontinued			Total
	(In thousands)

Unrecognized tax benefits at January 1, 2008	$	188,758		$	34,987		$	223,745
Additions based on tax positions related to the current year		24,015			—			24,015
Additions for tax positions of prior years		25,866			22,578			48,444
Reductions for tax positions of prior years		(19,267	)		(10,906	)		(30,173	)
Settlements		(2,859	)		—			(2,859	)
Lapse of statutes		(11,466	)		—			(11,466	)

Unrecognized tax benefits at December 31, 2008		205,047			46,659			251,706

Additions based on tax positions related to the current year		46,133			39,480			85,613
Additions for tax positions of prior years		5,622			2,741			8,363
Reductions for tax positions of prior years		(9,497	)		(2,014	)		(11,511	)
Settlements		(41,869	)		(5,914	)		(47,783	)
Lapse of statutes		(7,074	)		(2,748	)		(9,822	)

Unrecognized tax benefits at December 31, 2009	$	198,362	(A)	$	78,204		$	276,566


(A)		If recognized, the net amount of potential tax benefits that would impact the Company’s effective tax rate is $159.9 million. During the years ended December 31, 2009, 2008 and 2007, the Company recorded potential interest and penalty expense of $5.0 million, $(0.6) million and $12.9 million, respectively, related to its unrecognized tax benefits as a component of provision for income taxes. The Company had accrued interest and penalties of $46.5 million at December 31, 2009 and $45.9 million at December 31, 2008.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2009

Employee Benefit Plans [Abstract]

Employee Benefit Plans


13.	Employee Benefit Plans

The Company offers a defined contribution plan to most of its employees. The Company also has defined benefit pension plans (the “plans”) covering certain employees of the Company and its subsidiaries. The plans’ benefits are generally based on years of service and employee compensation. The Company’s funding policy is consistent with the funding requirements of the Employment Retirement Income Security Act (“ERISA”) and applicable international laws. The Company adopted certain provisions of ASC 715 on December 31, 2006 and, in accordance with the standard, the Company used a measurement date of December 31st for its pension and other postretirement benefit plans for the years ended December 31, 2008 and thereafter. Prior to 2008, the Company used a September 30th measurement date for the majority of its defined benefit plans.

The Company is responsible for overseeing the management of the investments of the plans’ assets and otherwise ensuring that the plans’ investment programs are in compliance with ERISA, other relevant legislation, and related plan documents. Where relevant, the Company has retained professional investment managers to manage the plans’ assets and implement the investment process. The investment managers, in implementing their investment processes, have the authority and responsibility to select appropriate investments in the asset classes specified by the terms of their applicable prospectus or investment manager agreements with the plans.

The primary financial objective of the plans is to secure participant retirement benefits. Accordingly, the key objective in the plans’ financial management is to promote stability and, to the extent appropriate, growth in the funded status. Related and supporting financial objectives are established in conjunction with a review of current and projected plan financial requirements.

The assets of the plans are invested to achieve an appropriate return for the plans consistent with a prudent level of risk. The asset return objective is to achieve, as a minimum over time, the passively managed return earned by market index funds, weighted in the proportions outlined by the asset class exposures identified in the plans’ strategic allocation. The fair value of the majority of the plans’ assets were determined by the plans’ trustees using quoted market prices for identical instruments ( Level 1 inputs under the ASC 820 hierarchy) as of December 31, 2009. The fair value of various other investments were determined by the plans’ trustees using directly observable market corroborated inputs, including quoted prices for similar assets ( Level 2 inputs under the ASC 820 hierarchy). There are no investments within the Level 3 fair value hierarchy. The following is a description of the valuation methodologies used for assets at fair value:

Common stock: valued at prices obtained from exchanges where the stock is traded.

Fixed income investments: these investments consist of corporate bonds which are valued in active markets in which the bonds are traded. Other corporate bonds are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Other fixed income securities include U.S. Government and municipal securities. These investments are valued based on quoted prices in active markets in which the security is traded or are valued based on yield curves and credit information evaluated in pricing models.

Debt, equity and other funds: investments are valued using Net Asset Value (“NAV”) which is based on the underlying value of the assets owned by the funds, minus liabilities, then divided by the number of shares outstanding. The NAV is a quoted price in an active market.

The expected return on assets assumption used for pension expense was developed through analysis of historical market returns, current market conditions and the past experience of plan asset investments. In developing the expected return on asset assumption, estimates of future market returns by asset category are less than actual long-term historical returns in order to best anticipate future experience. Overall, it is projected that the investment of plan assets will achieve a 7.75% net return over time from the asset allocation strategy.

The Company’s discount rate assumption is determined by developing a yield curve based on high quality corporate bonds with maturities matching the plans’ expected benefit payment streams. The plans’ expected cash flows are then discounted by the resulting year-by-year spot rates.

The Company also provides, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by Federal tax law. These plans are supported by the general assets of the Company.

Obligations and Funded Status


	Qualified						Non Qualified
	Defined Benefits						Supplemental Benefits						Post-Retirement Benefits
	2009			2008			2009			2008			2009			2008
	(In thousands)

Change in benefit obligation
Benefit obligation at beginning of year	$	484,891		$	500,915		$	152,695		$	153,538		$	16,470		$	15,874
Benefits earned during the year		13,971			13,042			6,188			7,688			314			274
Interest cost		28,936			28,337			8,688			9,434			959			954
Plan participants’ contributions		1,014			446			—			—			172			190
Benefits paid		(27,699	)		(31,393	)		(26,828	)		(15,669	)		(1,597	)		(1,998	)
Federal Subsidy on benefits paid		—			—			—			—			130			130
Actuarial (gain) loss		20,469			6,131			(13,388	)		(7,908	)		538			1,102
Business acquisitions/divestures		7,241			—			—			—			—			—
Amendments		227			997			—			2,888			(1,657	)		—
Settlements and curtailments		(6,963	)		(445	)		—			—			—			—
Effect of adoption of ASC 715 measurement date		—			(1,734	)		—			2,724			—			(56	)
Currency rate changes		10,322			(31,405	)		—			—			—			—
Other		8,797			—			—			—			—			—

Benefit obligation at end of year		541,206			484,891			127,355			152,695			15,329			16,470

Change in Plan Assets
Fair value of plan assets at beginning of year		410,711			506,876			—			—			—			—
Actual return on plan assets		23,992			(76,299	)		—			—			—			—
Company contributions		50,701			35,400			26,828			15,669			1,425			1,808
Employee contributions		1,014			446			—			—			172			190
Benefits paid		(27,699	)		(31,393	)		(26,828	)		(15,669	)		(1,597	)		(1,998	)
Acquisitions		6,361			—			—			—			—			—
Settlements and curtailments		(6,547	)		1,266			—			—			—			—
Effect of adoption of ASC 715 measurement date		—			(713	)		—			—			—			—
Currency rate changes		7,191			(24,872	)		—			—			—			—
Other		1,917			—			—			—			—			—

Fair value of plan assets at end of year		467,641			410,711			—			—			—			—

Funded status		(73,565	)		(74,180	)		(127,355	)		(152,695	)		(15,329	)		(16,470	)

Accrued benefit cost	$	(73,565	)	$	(74,180	)	$	(127,355	)	$	(152,695	)	$	(15,329	)	$	(16,470	)

Amounts recognized in the statement of financial position consist of:
Assets and Liabilities
Other assets and deferred charges	$	3,339		$	2,293		$	—		$	—		$	—		$	—
Accrued compensation and employee benefits		(1,527	)		(792	)		(14,468	)		(33,418	)		(1,189	)		(1,168	)
Other deferrals (principally compensation)		(75,377	)		(75,681	)		(112,887	)		(119,277	)		(14,140	)		(15,302	)

Total Assets and Liabilities		(73,565	)		(74,180	)		(127,355	)		(152,695	)		(15,329	)		(16,470	)

Net actuarial (gains) losses		165,935			141,447			(15,045	)		(1,658	)		(2,881	)		(3,850	)
Prior service (credit) cost		8,133			9,181			57,363			65,069			(2,671	)		(1,185	)
Net asset at transition, other		(198	)		(167	)		—			—			—			—
Deferred taxes		(58,426	)		(52,661	)		(14,812	)		(22,194	)		1,885			1,762

Total Accumulated other comprehensive (earnings) loss, net of tax		115,444			97,800			27,506			41,217			(3,667	)		(3,273	)

Net amount recognized at December 31,	$	41,879		$	23,620		$	(99,849	)	$	(111,478	)	$	(18,996	)	$	(19,743	)

Accumulated benefit obligations	$	494,690		$	444,633		$	93,956		$	104,645

Information for plans with accumulated benefit obligations in excess of plan assets:
ABO	$	120,278		$	345,853		$	93,956		$	104,645
PBO		127,928			377,122			127,356			152,696
Fair value of plan assets		71,003			305,936			—			—

Net Periodic Cost

The cost of contractual termination benefits were $0.4 million in 2007. There were no costs related to contractual termination benefits recorded in 2009 or 2008.


										Non-Qualified
	Qualified Defined Benefits									Supplemental Benefits							Post-Retirement Benefits
	2009			2008			2007			2009			2008		2007		2009			2008			2007
	(In thousands)

Expected return on plan assets	$	(34,612	)	$	(34,341	)	$	(32,760	)	$	—		$	—	$	—		—		$	—		$	—
Service Cost		13,971			13,042			15,215			6,188			7,688		8,156		314			274			358
Interest Cost		28,936			28,337			27,482			8,688			9,434		9,146		959			954			1,102
Amortization of:
Prior service cost (income)		1,292			1,343			1,506			7,706			7,463		7,086		(172	)		(172	)		(172	)
Transition obligation		(43	)		(53	)		(237	)		—			—		—		—			—			—
Recognized actuarial (gain) loss		5,216			3,933			10,144			—			—		586		(426	)		(478	)		(112	)
Settlement and curtailments (gain) loss		(795	)		(1,149	)		2,400			(1	)		—		—		—			—			—

Total net periodic benefit cost	$	13,965		$	11,112		$	23,750		$	22,581		$	24,585	$	24,974	$	675		$	578		$	1,176

Assumptions

The weighted-average assumptions used in determining the benefit obligations were as follows:


							Non-Qualified
	Qualified Defined Benefits						Supplemental Benefits						Post-Retirement Benefits
	2009			2008			2009			2008			2009			2008

Discount rate		5.95	%		6.10	%		5.95	%		6.10	%		5.50	%		6.00	%
Average wage increase		4.26	%		4.33	%		4.50	%		6.00	%		—			—
Ultimate medical trend rate		—			—			—			—			5.00	%		5.00	%

The weighted average assumptions used in determining the net periodic cost were as follows:


										Non-Qualified
	Qualified									Supplemental									Post-Retirement
	Defined Benefits									Benefits									Benefits
	2009			2008			2007			2009			2008			2007			2009			2008			2007

Discount rate		6.10	%		6.10	%		5.60	%		6.10	%		6.25	%		5.75	%		6.00	%		6.00	%		5.75	%
Average wage increase		4.26	%		4.20	%		4.30	%		6.00	%		6.00	%		6.00	%		—			—			—
Expected return on plan assets		7.37	%		6.40	%		7.40	%		—			—			—			—			—			—
Ultimate medical trend rate		—			—			—			—			—			—			5.00	%		5.00	%		5.00	%

Plan Assets

The actual and target weighted-average asset allocation for benefit plans was as follows:


	December			December			Current
	2009			2008			Target

Equity — domestic		39	%		29	%		35	%
Equity — international		21	%		20	%		22	%
Fixed income — domestic		34	%		41	%		35	%
Real estate		6	%		10	%		8	%

Total		100	%		100	%		100	%

Fair Value Hierarchy

The fair value of the plan’s assets by their fair value hierarchy levels was as follows:


	As of December 31, 2009
							Total Fair
	Level 1		Level 2		Level 3		Value
	(In thousands)

Assets:
Common stocks	$	110,729	$	6,948	$	—	$	117,677
Fixed income investments		11,073		133,706		—		144,779
Debt equity and real estate funds		79,464		114,298		—		193,762
Cash and cash equivalents		11,423		—		—		11,423

Total assets	$	212,689	$	254,952	$	—	$	467,641

Future Estimates

Benefit Payments

Estimated future benefit payments to retirees, which reflect expected future service, are as follows:


	Qualified		Non-Qualified
	Defined		Supplemental		Post-Retirement
	Benefits		Benefits		Benefits
	(In thousands)

2010	$	31,363	$	14,468	$	1,189
2011		30,838		14,967		1,207
2012		33,102		12,498		1,248
2013		34,193		10,708		1,492
2014		34,383		4,197		1,524
2015-2019		183,661		71,194		5,504

Contributions

Estimated contributions to be made during 2010 are as follows:


	Qualified		Non-Qualified
	Defined		Supplemental
	Benefit		Benefits
	(In thousands)

To plan assets	$	32,434	$	—
To plan participants		1,000		14,468

2010 Amortization Expense

Estimated amortization expense for 2010 related to amounts in Accumulated Other Comprehensive Earnings (Loss) at December 31, 2009 is as follows:


				Non-Qualified
	Qualified			Supplemental
	Defined Benefits			Benefits			Post-Retirement
	(In thousands)

Amortization of:
Prior service cost (income)	$	1,288		$	7,707		$	(409	)
Transition obligation		(45	)		—			—
Recognized actuarial (gain) loss		5,672			(209	)		(396	)

Total	$	6,915		$	7,498		$	(805	)

Pension cost for all defined contribution, defined benefit, and supplemental plans was $72.9 million for 2009, $81.7 million for 2008 and $83.6 million for 2007.

For post-retirement benefit measurement purposes, a 8.5% annual rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rates) was assumed for 2010. The rate was assumed to decrease gradually to 5% by the year 2018 and remain at that level thereafter. The health care cost trend rate assumption can have an effect on the amounts reported. For example, increasing (decreasing) the assumed health care cost trend rates by one percentage point in each year would increase (decrease) the accumulated post-retirement benefit obligation as of December 31, 2009 by $0.2 million ($0.2 million) and would have a negligible impact on the net post-retirement benefit cost for 2009.

The post-retirement benefit plans cover approximately 1,924 participants, approximately 1,082 of whom are eligible for medical benefits. The plans are effectively closed to new entrants. The post-retirement benefit obligation amounts at December 31, 2009 and 2008 include approximately $4.8 million and $4.6 million in obligations, respectively, recorded in discontinued operations.

Segment Data

12 Months Ended

Dec. 31, 2009

Segment Data [Abstract]

Segment Data


14.	Segment Data

The Company identifies its operating segments through the underlying management reporting structure related to its operating companies and through commonalities related to products, processes, distribution and/or markets served. The Company’s segment structure allows the management of each segment to focus its attention on particular markets and provide oversight capacity to acquire additional businesses.

The Company’s four reportable segments are briefly described below:

Industrial Products manufactures equipment and components for use in material handling such as industrial and recreational winches, utility, construction and demolition machinery attachments, hydraulic parts, industrial automation tools, 4WD and AWD power train systems and other accessories of off-road vehicles. In addition, mobile equipment related products include refuse truck bodies, tank trailers, compactors, balers, vehicle service lifts, car wash systems, internal engine components, fluid control assemblies and various aerospace components.

Engineered Systems manufactures or assembles the following products: refrigeration systems, display cases, walk-in coolers, food service equipment, commercial kitchen air and ventilation systems, heat transfer equipment, and food and beverage packaging machines. The segment also manufactures product identification related products such as industrial marking and coding systems used to code information (e.g., dates and serial numbers) on consumer products. In addition, the segment produces several printing products for cartons used in warehouse logistics operations as well as bar code printers and portable printers.

Fluid Management manufactures the following products that serve the energy markets (i.e. oil and gas): sucker rods, gas well production control devices, drill bit inserts for oil and gas exploration, control valves, piston and seal rings, control instrumentation, remote data collection and transfer devices, components for compressors, turbo machinery, motors and generators. In addition, the segment manufactures various products that provide fluid solutions, including nozzles, swivels and breakaways used to deliver various types of fuel, suction system equipment, unattended fuel management systems, integrated tank monitoring, pumps used in fluid transfer applications, quick disconnect couplings used in a wide variety of biomedical and commercial applications, and chemical portioning and dispensing systems.

Electronic Technologies manufactures advanced micro-component products for the hearing aid and consumer electronics industries, high frequency capacitors, microwave electro-magnetic switches, radio frequency and microwave filters, electromagnetic products, and frequency control/select components. In addition, the segment builds sophisticated automated assembly and testing equipment for the electronics industry.

Selected financial information by market segment is as follows:


	For the Years Ended December 31,
	2009			2008			2007
	(In thousands) except margin information

REVENUE
Industrial Products	$	1,621,792		$	2,459,505		$	2,407,260
Engineered Systems		1,861,936			2,010,350			2,052,058
Fluid Management		1,270,910			1,714,046			1,482,008
Electronic Technologies		1,026,954			1,396,131			1,390,103
Intra — segment eliminations		(5,903	)		(11,144	)		(14,159	)

Total consolidated revenue	$	5,775,689		$	7,568,888		$	7,317,270

EARNINGS FROM CONTINUING OPERATIONS
Segment Earnings:
Industrial Products	$	139,757		$	299,740		$	312,486
Engineered Systems		227,268			278,553			291,727
Fluid Management		259,269			385,317			304,576
Electronic Technologies		83,694			193,641			180,337

Total segments		709,988			1,157,251			1,089,126
Corporate expense / other		(117,995	)		(115,195	)		(87,170	)
Net interest expense		(100,375	)		(96,037	)		(89,589	)
Earnings from continuing operations before provision for income taxes and discontinued operations		491,618			946,019			912,367

Provision for taxes		119,724			251,261			242,617

Earnings from continuing operations — total consolidated	$	371,894		$	694,758		$	669,750

OPERATING MARGINS (pre-tax)
Segments:
Industrial Products		8.6	%		12.2	%		13.0	%
Engineered Systems		12.2	%		13.9	%		14.2	%
Fluid Management		20.4	%		22.5	%		20.6	%
Electronic Technologies		8.1	%		13.9	%		13.0	%
Total Segments		12.3	%		15.3	%		14.9	%
Earnings from continuing operations		8.5	%		12.5	%		12.5	%

Selected financial information by market segment (continued, in thousands):


TOTAL ASSETS AT DECEMBER 31:	2009		2008		2007

Industrial Products	$	1,874,242	$	2,069,743	$	2,142,969
Engineered Systems		1,818,750		1,729,331		1,839,670
Fluid Management		1,267,388		1,231,391		1,156,089
Electronic Technologies		1,751,826		1,820,173		2,006,882
Corporate (principally cash and equivalents and marketable securities)		1,053,496		963,494		770,040

Total continuing assets		7,765,702		7,814,132		7,915,650
Assets from discontinued operations		116,701		69,106		152,757

Consolidated total	$	7,882,403	$	7,883,238	$	8,068,407


	For the Years Ended December 31,
DEPRECIATION and AMORTIZATION (continuing)	2009		2008		2007

Industrial Products	$	71,453	$	73,516	$	69,739
Engineered Systems		60,106		61,062		54,580
Fluid Management		54,023		49,962		43,700
Electronic Technologies		71,544		75,587		74,720
Corporate		1,097		1,027		1,037

Consolidated total	$	258,223	$	261,154	$	243,776

CAPITAL EXPENDITURES (continuing)
Industrial Products	$	23,750	$	43,194	$	40,842
Engineered Systems		34,740		33,609		43,207
Fluid Management		34,424		61,054		51,197
Electronic Technologies		25,725		37,730		37,946
Corporate		1,370		208		461

Consolidated total	$	120,009	$	175,795	$	173,653


	Revenue						Long-Lived Assets
	For the Years Ended December 31,						At December 31,
	2009		2008		2007		2009		2008

United States	$	3,257,152	$	4,246,792	$	4,110,359	$	543,886	$	576,501
Europe		1,078,308		1,544,144		1,489,316		120,362		138,829
Other Americas		463,176		642,673		614,769		36,666		32,072
Total Asia		791,292		968,169		927,685		103,192		108,556
Other		185,761		167,110		175,141		24,816		16,176

	$	5,775,689	$	7,568,888	$	7,317,270	$	828,922	$	872,134

Revenue is attributed to regions based on the location of the Company’s customer, which in some instances is an intermediary and not necessarily the end user. Long-lived assets are comprised of net property, plant and equipment. The Company’s operating companies are based primarily in the United States of America and Europe. The Company’s businesses serve thousands of customers, none of which accounted for more than 10% of consolidated revenue. Accordingly, it is impractical to provide revenue from external customers for each product and service sold by segment.

Adoption of New Accounting Standards	12 Months Ended
Adoption of New Accounting Standards	Dec. 31, 2009
Adoption of New Accounting Standards [Abstract]
Adoption of New Accounting Standards	18. Adoption of New Accounting Standards In December 2007, the FASB issued authoritative guidance under ASC 805, which retains the fundamental requirements that the acquisition method of accounting (the purchase method) be used for all business combinations and for an acquirer to be identified for each business combination. In general, the statement (1) extends its applicability to all events where one entity obtains control over one or more other businesses, (2) broadens the use of fair value measurements used to recognize the assets acquired and liabilities assumed, (3) changes the accounting for acquisition related fees and restructuring costs incurred in connection with an acquisition, and (4) increases required disclosures. The Company has applied the provisions of this guidance prospectively to business combinations for which the acquisition date is on or after January 1, 2009. The impact of these provisions did not have a material effect on the Company’s consolidated financial statements since its adoption. In April 2009, the FASB issued authoritative guidance under ASC 805 for the initial recognition and measurement, subsequent measurement and accounting, and disclosures for assets and liabilities arising from contingencies in business combinations. ASC 805 eliminates the distinction between contractual and non-contractual contingencies. The Company has applied the provisions of this guidance prospectively to business combinations for which the acquisition date is on or after January 1, 2009. The impact of these provisions did not have a material effect on the Company’s consolidated financial statements since its adoption. In April 2008, the FASB issued authoritative guidance under ASC 350 and ASC 275, Risks and Uncertainties (“ASC 275”), to improve the consistency between the useful life of a recognized intangible asset and the period of expected cash flows used to measure the fair value of the intangible asset. ASC 350 and ASC 275 amend the factors to be considered when developing renewal or extension assumptions that are used to estimate an intangible asset’s useful life. The guidance is to be applied prospectively to intangible assets acquired after December 31, 2008. In addition, ASC 350 and ASC 275 increase the disclosure requirements related to renewal or extension assumptions. The Company has applied the provisions of this guidance to business combinations for which the acquisition date is on or after January 1, 2009. The impact of ASC 350 and ASC 275 did not have a material effect on the Company’s consolidated financial statements since its adoption. In December 2008, the FASB issued authoritative guidance under ASC 715, Compensation — Retirement Benefits (“ASC 715”) which amends the disclosure requirements about plan assets of a defined pension or other postretirement plan. The provisions of this guidance require disclosure of (1) how investment allocation decisions are made, including factors that are pertinent to an understanding of the investment policies and strategies, (2) the fair value of each major category of plan assets, (3) the inputs and valuation techniques used to determine fair value and (4) an understanding of significant concentration of risk in plan assets. The provisions of this guidance become effective for fiscal years ending after December 15, 2009 and are to be applied prospectively. The adoption of the amendments under ASC 715 did not have a material impact on the Company’s consolidated financial statements. Effective December 31, 2006, the Company applied certain provisions of ASC 715 which required companies to report the funded status of their defined benefit pension and other postretirement benefit plans on their balance sheets as a net liability or asset. Upon adoption at December 31, 2006, the Company recorded a net reduction to shareholders’ equity of $123.5 million, net of tax. In addition, effective for fiscal years ending after December 15, 2008, the new standard required companies to measure benefit obligations and plan assets as of a company’s fiscal year end (December 31, 2008 for the Company), using one of the methods prescribed in the standard. The Company adopted the new valuation date requirements using the 15-month alternative, as prescribed in the standard, which resulted in a charge of approximately $5.8 million, net of tax, to retained earnings during the fourth quarter of 2008. In May 2009, the FASB issued authoritative guidance under ASC 855, Subsequent Events (“ASC 855”) which establishes general standards of accounting for and disclosures of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. ASC 855 became effective for interim or annual financial periods ending after June 15, 2009 and was adopted in the second quarter of 2009. The adoption of ASC 855 did not have a material effect on the Company’s consolidated financial statements. In June 2009, the FASB issued authoritative guidance under ASC 105, Generally Accepted Accounting Principles (“ASC 105”), which establishes the FASB Accounting Standards Codification (“Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles. ASC 105 became effective for financial statements issued for interim periods ended after September 15, 2009. All content within the Codification carries the same level of authority. The adoption of ASC 105 did not have a material effect on the Company’s consolidated financial statements. In September 2006, the FASB issued authoritative guidance under ASC 820, Fair Value measurement and disclosures (“ASC 820) which defines fair value, establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. For financial assets and liabilities, this guidance was effective for fiscal periods beginning after November 15, 2007 and did not require any new fair value measurements. The adoption of this guidance on January 1, 2008 did not have a material effect on the Company’s consolidated financial statements. In February 2008, the FASB delayed the effective date for nonfinancial assets and liabilities to fiscal years beginning after November 15, 2008, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The adoption of the provisions of ASC 820 related to “non-financial assets” did not have a material effect on the Company’s consolidated financial statements. In April 2009, the FASB issued authoritative guidance under ASC 825, Financial Instruments (“ASC 825”) to require disclosures about fair value of financial instruments not measured on the balance sheet at fair value in interim financial statements as well as in annual financial statements. The provisions of this guidance require all entities to disclose the methods and significant assumptions used to estimate the fair value of financial instruments. ASC 825 became effective for interim periods ended after June 15, 2009 and does not require comparative disclosure for earlier periods presented upon initial adoption. The adoption of ASC 825 did not have a material effect on the Company’s consolidated financial statements.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Allowance for doubtful accounts receivable	$ 41,832	$ 32,647

Consolidated Statements of Shareholders Equity and Comprehensive Earnings (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Statement [Line Items]
Tax effect on unrealized holding gains (losses)	$ (582)	$ 582	$ (302)
Tax effect on pension amortization and adjustment	1,740	31,923	(27,276)
Accumulated Other Comprehensive Earnings (Loss)
Statement [Line Items]
Tax effect on unrealized holding gains (losses)	(582)	582	(302)
Tax effect on pension amortization and adjustment	1,740	31,923	(27,276)
Comprehensive Earnings (Loss)
Statement [Line Items]
Tax effect on unrealized holding gains (losses)	(582)	582	(302)
Tax effect on pension amortization and adjustment	$ 1,740	$ 31,923	$ (27,276)

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2009
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent Events The Company assessed events occurring subsequent to December 31, 2009 and through our filing, dated February 19, 2010, for potential recognition and disclosure in the consolidated financial statements. No events have occurred that would require adjustment to or disclosure in the consolidated financial statements which were issued on February 19, 2010.