dov-20200331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from to
Commission File Number: 1-4018
https://cdn.kscope.io/f3563ef959f14c96e03b0348430faef0-dov-20200331_g1.jpg
(Exact name of registrant as specified in its charter)
Delaware53-0257888
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
  
3005 Highland Parkway 
Downers Grove, Illinois
60515
(Address of principal executive offices)(Zip Code)
(630) 541-1540
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockDOVNew York Stock Exchange
1.250% Notes due 2026DOV 26New York Stock Exchange
0.750% Notes due 2027DOV 27New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes   No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes   No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12-b-2 of the Exchange Act.
Large Accelerated Filer
Accelerated Filer
Emerging Growth Company
Non-Accelerated Filer
Smaller Reporting Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes   No  
The number of shares outstanding of the Registrant’s common stock as of April 14, 2020 was 143,947,008.



Dover Corporation
Form 10-Q
Table of Contents

Page
 
 
 
 
 
Item 3.
  
 






Table of Contents

Item 1. Financial Statements

DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)

 Three Months Ended March 31,  
 20202019
Revenue$1,655,939  $1,724,757  
Cost of goods and services1,043,696  1,101,215  
Gross profit612,243  623,542  
Selling, general and administrative expenses386,941  408,466  
Loss on assets held for sale  46,946  
Operating earnings225,302  168,130  
Interest expense27,268  31,808  
Interest income(1,183) (890) 
Gain on sale of a business(6,551)   
Other income, net(7,732) (1,106) 
Earnings before provision for income taxes213,500  138,318  
Provision for income taxes37,221  32,613  
Net earnings  $176,279  $105,705  
Net earnings per share:
Basic$1.22  $0.73  
Diluted$1.21  $0.72  
Weighted average shares outstanding:
Basic144,259  145,087  
Diluted145,782  146,911  
 

See Notes to Condensed Consolidated Financial Statements


1

Table of Contents

DOVER CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(In thousands)
(Unaudited)

 Three Months Ended March 31,
 20202019
Net earnings$176,279  $105,705  
Other comprehensive (loss) earnings, net of tax 
Foreign currency translation adjustments:
Foreign currency translation (losses) gains(93,554) 23,700  
Reclassification of foreign currency translation losses to earnings   25,339  
Total foreign currency translation adjustments(93,554) 49,039  
Pension and other post-retirement benefit plans:
Amortization of actuarial losses included in net periodic pension cost1,669  175  
Amortization of prior service costs included in net periodic pension cost286  572  
Total pension and other post-retirement benefit plans1,955  747  
Changes in fair value of cash flow hedges:
Unrealized net (losses) gains arising during period(5,074) 2,594  
Net losses (gains) reclassified into earnings1,121  (230) 
Total cash flow hedges(3,953) 2,364  
Other comprehensive (loss) earnings, net of tax (95,552) 52,150  
Comprehensive earnings$80,727  $157,855  


See Notes to Condensed Consolidated Financial Statements

2

Table of Contents

DOVER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 March 31, 2020December 31, 2019
Assets  
Current assets:    
Cash and cash equivalents  $508,907  $397,253  
Receivables, net of allowances of $33,901 and $29,381
1,222,154  1,217,190  
Inventories  852,075  806,141  
Prepaid and other current assets  122,864  127,846  
Total current assets  2,706,000  2,548,430  
Property, plant and equipment, net  841,813  842,318  
Goodwill  3,860,817  3,783,347  
Intangible assets, net  1,096,140  1,055,014  
Other assets and deferred charges  439,483  440,368  
Total assets$8,944,253  $8,669,477  
Liabilities and Stockholders' Equity
Current liabilities:    
Notes payable  $500,000  $84,700  
Accounts payable  947,006  983,293  
Accrued compensation and employee benefits  175,231  226,658  
Accrued insurance  99,992  98,432  
Other accrued expenses  355,837  339,060  
Federal and other income taxes  16,295  17,748  
Total current liabilities  2,094,361  1,749,891  
Long-term debt  2,963,018  2,985,716  
Deferred income taxes  338,586  322,036  
Noncurrent income tax payable52,000  52,000  
Other liabilities  515,607  527,174  
Stockholders' equity:    
Total stockholders' equity  2,980,681  3,032,660  
Total liabilities and stockholders' equity  $8,944,253  $8,669,477  


See Notes to Condensed Consolidated Financial Statements


















Table of Contents

DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except share data)
(Unaudited)
 Common stock $1 par valueAdditional paid-in capitalTreasury stockRetained earningsAccumulated other comprehensive lossTotal stockholders' equity
Balance at December 31, 2019  $258,552  $869,719  $(6,090,842) $8,211,257  $(216,026) $3,032,660  
Adoption of ASU 2016-13
      (2,112)   (2,112) 
Net earnings        176,279    176,279  
Dividends paid ($0.49 per share)
      (70,899)   (70,899) 
Common stock issued for the exercise of share-based awards  193  (10,212)       (10,019) 
Stock-based compensation expense    3,252        3,252  
Common stock acquired      (52,916)     (52,916) 
Other comprehensive loss, net of tax          (95,552) (95,552) 
Other, net    (12)       (12) 
Balance at March 31, 2020  $258,745  $862,747  $(6,143,758) $8,314,525  $(311,578) $2,980,681  


 Common stock $1 par valueAdditional paid-in capitalTreasury stockRetained earningsAccumulated other comprehensive (loss) earningsTotal stockholders' equity
Balance at December 31, 2018  $257,822  $886,016  $(5,947,562) $7,815,486  $(243,096) $2,768,666  
Net earnings        105,705    105,705  
Dividends paid ($0.48 per share)
      (69,809)   (69,809) 
Common stock issued for the exercise of share-based awards  392  (20,000)       (19,608) 
Stock-based compensation expense    8,182        8,182  
Other comprehensive earnings, net of tax          52,150  52,150  
Other, net    (7,833)       (7,833) 
Balance at March 31, 2019  $258,214  $866,365  $(5,947,562) $7,851,382  $(190,946) $2,837,453  



See Notes to Condensed Consolidated Financial Statements



















Table of Contents

DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Three Months Ended March 31,  
 20202019
Operating Activities:  
Net earnings$176,279  $105,705  
Adjustments to reconcile net earnings to cash from operating activities:
Loss on assets held for sale  46,946  
Depreciation and amortization68,752  67,738  
Stock-based compensation expense3,252  8,182  
Gain on sale of a business(6,551)   
Other, net(17,358) 2,363  
Cash effect of changes in assets and liabilities:
Accounts receivable, net(25,313) (42,252) 
Inventories(61,936) (73,041) 
Prepaid expenses and other assets(8,654) (14,921) 
Accounts payable(25,245) (22,638) 
Accrued compensation and employee benefits(67,247) (55,559) 
Accrued expenses and other liabilities25,321  (16,107) 
Accrued and deferred taxes, net14,563  18,108  
Net cash provided by operating activities75,863  24,524  
Investing Activities:    
Additions to property, plant and equipment(40,172) (37,122) 
Acquisitions, net of cash acquired(208,421) (175,083) 
Proceeds from sale of property, plant and equipment1,232  170  
Proceeds from sale of businesses16,850  2,245  
Other  (7,900) 
Net cash used in investing activities(230,511) (217,690) 
Financing Activities:    
Repurchase of common stock
(52,916)   
Change in commercial paper and notes payable415,300  125,893  
Dividends paid to stockholders(70,899) (69,809) 
Payments to settle employee tax obligations on exercise of share-based awards(10,019) (19,608) 
Other(512) (409) 
Net cash provided by financing activities280,954  36,067  
Effect of exchange rate changes on cash and cash equivalents(14,652) 3,892  
Net increase (decrease) in cash and cash equivalents 111,654  (153,207) 
Cash and cash equivalents at beginning of period397,253  396,221  
Cash and cash equivalents at end of period$508,907  $243,014  


See Notes to Condensed Consolidated Financial Statements

5

Table of Contents
DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
1. Basis of Presentation

The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim periods and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for complete financial statements. These unaudited interim Condensed Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes for Dover Corporation ("Dover" or the "Company") for the year ended December 31, 2019, included in the Company's Annual Report on Form 10-K filed with the SEC on February 14, 2020. The year end Condensed Consolidated Balance Sheet was derived from audited financial statements. Certain amounts in the prior periods have been reclassified to conform to the current year presentation.  

The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. The Condensed Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of results for these interim periods. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year.

2. Revenue

A majority of the Company’s revenue is short cycle in nature with shipments within one year from order. A small portion of the Company’s revenue derives from contracts extending over one year. The Company's payment terms generally range between 30 to 90 days and vary by the location of businesses, the type of products manufactured to be sold and the volume of products sold, among other factors.
Over 95% of the Company’s performance obligations are recognized at a point in time that relate to the manufacture and sale of a broad range of products and components. Revenue is recognized when control transfers to the customer upon shipment or completion of installation, testing, certification, or other substantive acceptance provisions required under the contract. Less than 5% of the Company’s revenue is recognized over time and generally relates to the sale of services or engineered to order equipment that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin.

Revenue from contracts with customers is disaggregated by segments and geographic location, as it best depicts the nature and amount of the Company’s revenue. See Note 17 — Segment Information for revenue by segment and geographic locations.
At March 31, 2020, we estimated that $156.0 million in revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. We expect to recognize approximately 81% of our unsatisfied (or partially unsatisfied) performance obligations as revenue through 2021, with the remaining balance to be recognized in 2022 and thereafter.

The following table provides information about contract assets and contract liabilities from contracts with customers:
 March 31, 2020December 31, 2019January 1, 2019
Contract assets$13,841  $14,894  $9,330  
Contract liabilities - current61,508  44,001  36,461  
Contract liabilities - non-current10,363  9,121  9,382  

The revenue recognized during the three months ended March 31, 2020 and 2019 that was included in contract liabilities at the beginning of the period amounted to $21,133 and $15,414, respectively.


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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
3. Acquisitions

2020 Acquisitions

During the three months ended March 31, 2020, the Company acquired two businesses in separate transactions for total consideration of $208,421, net of cash acquired. These businesses were acquired to complement and expand upon existing operations within the Imaging & Identification and Engineered Products segments. The goodwill recorded as a result of these acquisitions represents the economic benefits expected to be derived from product line expansions and operational synergies. Goodwill in the amount of $33,125 is deductible for U.S. income tax purposes and goodwill in the amount of $92,256 is non-deductible for U.S. income tax purposes for these acquisitions.

On January 24, 2020, the Company acquired 100% of the voting stock of Sys-Tech Solutions, Inc. ("Systech"), a leading provider of product traceability, regulatory compliance and brand-protection software and solutions to pharmaceutical and consumer products manufacturers, for $162,942, net of cash acquired. The Systech acquisition strengthens the portfolio of solutions offered by the Imaging & Identification segment. In connection with this acquisition, the Company recorded goodwill of $92,256 and intangible assets of $76,100, primarily related to customer intangibles.

On February 18, 2020, the Company acquired 100% of the voting stock of So. Cal. Soft-Pak, Incorporated ("Soft-Pak") Software Solutions, a leading specialized provider of integrated back office, route management and customer relationship management software solutions to the waste and recycling fleet industry for $45,479, net of cash acquired. The Soft-Pak acquisition strengthens the digital offerings within the Engineered Products segment. In connection with this acquisition, the Company recorded goodwill of $33,125 and intangible assets of $12,800, primarily related to customer intangibles.

The following presents the preliminary allocation of purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at acquisition date:
Total  
Current assets, net of cash acquired$19,816  
Property, plant and equipment1,580  
Goodwill125,381  
Intangible assets88,900  
Current liabilities(15,073) 
Other liabilities(12,183) 
Net assets acquired$208,421  

The amounts assigned to goodwill and major intangible asset classifications were as follows:
Amount allocatedUseful life (in years)
Goodwill - tax deductible$33,125  na
Goodwill - non deductible92,256  na
Customer intangibles74,100  12
Trademarks5,100  15
Other intangibles9,700  6 - 9
$214,281  

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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
2019 Acquisitions

On January 25, 2019, the Company acquired the assets of Belanger, Inc. ("Belanger"), a leading full-line car wash equipment manufacturer for $175,083, net of cash acquired. The Belanger acquisition strengthens Dover's position in the vehicle wash business within the Fueling Solutions segment. In connection with this acquisition, the Company recorded goodwill of $97,817 and intangible assets of $77,000, primarily related to customer intangibles. The intangible assets are being amortized over 9 to 15 years.

Pro Forma Information

The following unaudited pro forma information illustrates the impact of 2020 and 2019 acquisitions on the Company’s revenue and earnings from operations for the three months ended March 31, 2020 and 2019, respectively.
The unaudited pro forma information assumes that the 2020 and 2019 acquisitions had taken place at the beginning of the prior year, 2019 and 2018, respectively. Unaudited pro forma earnings are adjusted to reflect the comparable impact of additional depreciation and amortization expense, net of tax, resulting from the fair value measurement of intangible and tangible assets relating to the year of acquisition.

The unaudited pro forma effects for the three months ended March 31, 2020 and 2019 were as follows:
 Three Months Ended March 31,  
 20202019
Revenue:  
As reported  $1,655,939  $1,724,757  
Pro forma  1,661,825  1,746,533  
Net earnings:  
As reported  $176,279  $105,705  
Pro forma  180,433  106,188  

4. Disposed Operations

Management evaluates Dover's businesses periodically for their strategic fit within its operations and may from time to time sell or discontinue certain operations for various reasons.

2020

On March 6, 2020, the Company completed the sale of the Chino, California branch of The AMS Group ("AMS Chino"), a wholly owned subsidiary of the Company. Upon disposal of AMS Chino, the Company recognized total consideration of $16,850, which resulted in a pre-tax gain on sale of $6,551 included within the Condensed Consolidated Statements of Earnings and within the Refrigeration & Food Equipment Segment for the three months ended March 31, 2020.

2019

On March 29, 2019, the Company entered into a definitive agreement to sell Finder Pompe S.r.l ("Finder"), a wholly owned subsidiary, to Gruppo Aturia S.p.A (“Aturia”). As of March 31, 2019, Finder met the criteria to be classified as held for sale. The Company classified Finder's assets and liabilities separately on the consolidated balance sheet as of March 31, 2019.

Based on the total consideration from the sale, net of selling costs, the Company recorded a loss on the assets held for sale of $46,946 in the Condensed Consolidated Statements of Earnings during the three months ended March 31, 2019. The loss was comprised of an impairment on assets held for sale of $21,607 and $25,339 of foreign currency translation losses reclassified out of accumulated other comprehensive losses.

On April 2, 2019, Dover completed the sale of Finder to Aturia, which generated total cash proceeds of $24,218. The Finder business was included in the results of the Pumps & Process Solutions segment. The sale does not represent a strategic shift that will have a major effect on operations and financial results and, therefore, did not qualify for presentation as a discontinued operation.

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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
5. Inventories
 March 31, 2020December 31, 2019
Raw materials$486,866  $467,912  
Work in progress172,173  162,670  
Finished goods300,725  280,051  
Subtotal959,764  910,633  
Less reserves(107,689) (104,492) 
Total$852,075  $806,141  

6. Property, Plant and Equipment, net
 March 31, 2020December 31, 2019
Land  $54,580  $56,583  
Buildings and improvements  522,155  527,192  
Machinery, equipment and other  1,662,535  1,648,354  
Property, plant and equipment, gross2,239,270  2,232,129  
Accumulated depreciation  (1,397,457) (1,389,811) 
Property, plant and equipment, net$841,813  $842,318  

For the three months ended March 31, 2020 and 2019, depreciation expense was $34,555 and $32,188, respectively.
7. Credit Losses

Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments prospectively. This ASU replaces the incurred loss impairment model with an expected credit loss impairment model for financial instruments, including trade receivables. The amendment requires entities to consider forward-looking information to estimate expected credit losses, resulting in earlier recognition of losses for receivables that are current or not yet due, which were not considered under the previous accounting guidance. Upon adoption, the Company recorded a noncash cumulative effect adjustment to retained earnings of $2.1 million, net of $0.6 million of income taxes, on the opening consolidated balance sheet as of January 1, 2020.

The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company considered the current and expected future economic and market conditions surrounding the novel coronavirus ("COVID-19") pandemic and determined that the estimate of credit losses was not significantly impacted.

Estimates are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future information that is reasonably available.

The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected.
2020
Beginning Balance, January 1, $29,381  
Adoption of ASU 2016-13, cumulative-effect adjustment to retained earnings2,706  
Provision for expected credit losses3,703  
Amounts written off charged against the allowance(811) 
Other, including dispositions and foreign currency translation(1,078) 
Ending Balance, March 31,$33,901  


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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
8. Goodwill and Other Intangible Assets
The changes in the carrying value of goodwill by reportable operating segments were as follows:
 Engineered ProductsFueling SolutionsImaging & IdentificationPumps & Process SolutionsRefrigeration & Food EquipmentTotal
Balance at December 31, 2019$636,571  $873,381  $977,069  $750,627  $545,699  $3,783,347  
Acquisitions33,125    92,256      125,381  
Disposition of business        (2,841) (2,841) 
Foreign currency translation(4,446) (26,008) (8,514) (5,790) (312) (45,070) 
Balance at March 31, 2020$665,250  $847,373  $1,060,811  $744,837  $542,546  $3,860,817  

During the three months ended March 31, 2020, the Company recorded additions of $125,381 to goodwill as a result of the acquisitions with the Engineered Products and Imaging & Identification segments discussed in Note 3 — Acquisitions. During the three months ended March 31, 2020, the Company disposed of $2,841 of the Refrigeration & Food Equipment segment goodwill as a result of the sale of a business as discussed in Note 4 — Disposed Operations.

Dover performs its annual goodwill impairment testing in the fourth quarter of each year. During the 2019 impairment testing, all fifteen reporting units had fair values substantially in excess of their carrying values. In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units. Further, the Company assessed the current market capitalization, forecasts and the amount of headroom in the 2019 impairment test. The Company determined that a triggering event has not occurred which would require an interim impairment test to be performed. Refer to "Segment Results of Operations" for further details on the COVID-19 impact to the Company's operations.

The Company’s definite-lived and indefinite-lived intangible assets by major asset class were as follows:
March 31, 2020December 31, 2019
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying Amount
Amortized intangible assets:
Customer intangibles$1,467,966  $731,391  $736,575  $1,410,636  $714,566  $696,070  
Trademarks220,805  89,123  131,682  218,064  85,791  132,273  
Patents158,612  134,360  24,252  159,376  133,677  25,699  
Unpatented technologies162,763  100,858  61,905  154,505  99,276  55,229  
Distributor relationships80,237  44,889  35,348  82,779  44,202  38,577  
Drawings & manuals26,619  22,228  4,391  27,500  22,403  5,097  
Other22,908  17,482  5,426  22,355  16,939  5,416  
Total2,139,910  1,140,331  999,579  2,075,215  1,116,854  958,361  
Unamortized intangible assets:
Trademarks96,561    96,561  96,653    96,653  
Total intangible assets, net$2,236,471  $1,140,331  $1,096,140  $2,171,868  $1,116,854  $1,055,014  

For the three months ended March 31, 2020 and 2019, amortization expense was $34,197 and $35,550, respectively, including acquisition-related intangible amortization of $33,817 and $35,155, respectively.


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DOVER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands except share data and where otherwise indicated) (Unaudited)
9. Restructuring Activities

The Company's restructuring charges by segment were as follows:
 Three Months Ended March 31,  
 20202019
Engineered Products$358  $79  
Fueling Solutions1,475  738  
Imaging & Identification256  291  
Pumps & Process Solutions3,846  381  
Refrigeration & Food Equipment560  1,412  
Corporate846  35  
Total$7,341  $2,936  
These amounts are classified in the Condensed Consolidated Statements of Earnings as follows:
Cost of goods and services$1,542  $1,179  
Selling, general and administrative expenses5,799  1,757  
Total$7,341  $2,936  

The restructuring expenses of $7,341 incurred during the three months ended March 31, 2020, were a result of restructuring programs initiated in 2019. Restructuring expense was comprised primarily of broad-based selling, general and administrative expense reduction and broad-based operational efficiency initiatives focusing on footprint consolidation, operational optimization and IT centralization designed to increase operating margin, enhance operations and position the Company for sustained growth and investment. The Company expects to incur additional charges of approximately $6 million during the remainder of 2020. COVID-19 has not resulted in significant restructuring costs. Additional programs, beyond the scope of the announced programs, may be implemented during 2020 with related restructuring charges.

The $7,341 of restructuring charges incurred during the first quarter of 2020 primarily included the following items:
The Engineered Products segment recorded $358 of restructuring charges principally related to headcount reductions.

The Fueling Solutions segment recorded $1,475 of restructuring charges principally related to headcount reductions.

The Imaging & Identification segment recorded $256 of restructuring charges principally related to headcount reductions.

The Pumps & Process Solutions segment recorded $3,846 of restructuring expense primarily due to headcount reductions and facility restructuring costs.

The Refrigeration & Food Equipment segment recorded $560 of restructuring expense primarily due to headcount reductions and facility restructuring costs.

Corporate recorded $846 of restructuring charges primarily related to headcount reductions and associated exit costs related to IT centralization initiatives.

The Company’s severance and exit accrual activities were as follows:
 SeveranceExitTotal
Balance at December 31, 2019$13,751  $2,639  $16,390  
Restructuring charges4,014  3,327  7,341  
Payments(6,510) (2,049) (8,559) 
Other, including foreign currency translation184  (2,376) 
(1)
(2,192)