Dover

2018 Annual Report

About Dover

(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:80)(cid:90)(cid:3)(cid:72)(cid:3)(cid:75)(cid:80)(cid:93)(cid:76)(cid:89)(cid:90)(cid:80)(cid:196)(cid:76)(cid:75)(cid:3)(cid:78)(cid:83)(cid:86)(cid:73)(cid:72)(cid:83)(cid:3)(cid:84)(cid:72)(cid:85)(cid:92)(cid:77)(cid:72)(cid:74)(cid:91)(cid:92)(cid:89)(cid:76)(cid:89)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:72)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:89)(cid:76)(cid:93)(cid:76)(cid:85)(cid:92)(cid:76)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:72)(cid:87)(cid:87)(cid:89)(cid:86)(cid:95)(cid:80)(cid:84)(cid:72)(cid:91)(cid:76)(cid:83)(cid:96)(cid:3)(cid:11)(cid:30)(cid:3)(cid:73)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:21)(cid:3)(cid:62)(cid:76)(cid:3)(cid:75)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:3)(cid:80)(cid:85)(cid:85)(cid:86)(cid:93)(cid:72)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:76)(cid:88)(cid:92)(cid:80)(cid:87)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:74)(cid:86)(cid:84)(cid:87)(cid:86)(cid:85)(cid:76)(cid:85)(cid:91)(cid:90)(cid:19)(cid:3)(cid:90)(cid:87)(cid:76)(cid:74)(cid:80)(cid:72)(cid:83)(cid:91)(cid:96)(cid:3)(cid:90)(cid:96)(cid:90)(cid:91)(cid:76)(cid:84)(cid:90)(cid:19)(cid:3)(cid:74)(cid:86)(cid:85)(cid:90)(cid:92)(cid:84)(cid:72)(cid:73)(cid:83)(cid:76)(cid:3)(cid:90)(cid:92)(cid:87)(cid:87)(cid:83)(cid:80)(cid:76)(cid:90)(cid:19)(cid:3)(cid:90)(cid:86)(cid:77)(cid:91)(cid:94)(cid:72)(cid:89)(cid:76)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:75)(cid:80)(cid:78)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:90)(cid:86)(cid:83)(cid:92)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:90)(cid:92)(cid:87)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:90)(cid:76)(cid:89)(cid:93)(cid:80)(cid:74)(cid:76)(cid:90)(cid:3)(cid:91)(cid:79)(cid:89)(cid:86)(cid:92)(cid:78)(cid:79)(cid:3)(cid:91)(cid:79)(cid:89)(cid:76)(cid:76)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:33)(cid:3)(cid:44)(cid:85)(cid:78)(cid:80)(cid:85)(cid:76)(cid:76)(cid:89)(cid:76)(cid:75)(cid:3)(cid:58)(cid:96)(cid:90)(cid:91)(cid:76)(cid:84)(cid:90)(cid:19)(cid:3)(cid:45)(cid:83)(cid:92)(cid:80)(cid:75)(cid:90)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:57)(cid:76)(cid:77)(cid:89)(cid:80)(cid:78)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:13)(cid:3)(cid:45)(cid:86)(cid:86)(cid:75)(cid:3)(cid:44)(cid:88)(cid:92)(cid:80)(cid:87)(cid:84)(cid:76)(cid:85)(cid:91)(cid:21)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:74)(cid:86)(cid:84)(cid:73)(cid:80)(cid:85)(cid:76)(cid:90)(cid:3)(cid:78)(cid:83)(cid:86)(cid:73)(cid:72)(cid:83)(cid:3)(cid:90)(cid:74)(cid:72)(cid:83)(cid:76)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:3)(cid:72)(cid:78)(cid:80)(cid:83)(cid:80)(cid:91)(cid:96)(cid:3)(cid:91)(cid:86)(cid:3)(cid:83)(cid:76)(cid:72)(cid:75)(cid:3)

(cid:91)(cid:79)(cid:76)(cid:3)(cid:84)(cid:72)(cid:89)(cid:82)(cid:76)(cid:91)(cid:90)(cid:3)(cid:94)(cid:76)(cid:3)(cid:90)(cid:76)(cid:89)(cid:93)(cid:76)(cid:21)(cid:3)(cid:57)(cid:76)(cid:74)(cid:86)(cid:78)(cid:85)(cid:80)(cid:97)(cid:76)(cid:75)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:76)(cid:85)(cid:91)(cid:89)(cid:76)(cid:87)(cid:89)(cid:76)(cid:85)(cid:76)(cid:92)(cid:89)(cid:80)(cid:72)(cid:83)(cid:3)(cid:72)(cid:87)(cid:87)(cid:89)(cid:86)(cid:72)(cid:74)(cid:79)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:29)(cid:23)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:90)(cid:19)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:91)(cid:76)(cid:72)(cid:84)(cid:3)(cid:86)(cid:77)(cid:3)(cid:72)(cid:87)(cid:87)(cid:89)(cid:86)(cid:95)(cid:80)(cid:84)(cid:72)(cid:91)(cid:76)(cid:83)(cid:96)(cid:3)(cid:25)(cid:27)(cid:19)(cid:23)(cid:23)(cid:23)(cid:3)(cid:76)(cid:84)(cid:87)(cid:83)(cid:86)(cid:96)(cid:76)(cid:76)(cid:90)(cid:3)(cid:91)(cid:72)(cid:82)(cid:76)(cid:90)(cid:3)

(cid:72)(cid:85)(cid:3)(cid:86)(cid:94)(cid:85)(cid:76)(cid:89)(cid:90)(cid:79)(cid:80)(cid:87)(cid:3)(cid:84)(cid:80)(cid:85)(cid:75)(cid:90)(cid:76)(cid:91)(cid:19)(cid:3)(cid:74)(cid:86)(cid:83)(cid:83)(cid:72)(cid:73)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:74)(cid:92)(cid:90)(cid:91)(cid:86)(cid:84)(cid:76)(cid:89)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:89)(cid:76)(cid:75)(cid:76)(cid:196)(cid:85)(cid:76)(cid:3)(cid:94)(cid:79)(cid:72)(cid:91)(cid:187)(cid:90)(cid:3)(cid:87)(cid:86)(cid:90)(cid:90)(cid:80)(cid:73)(cid:83)(cid:76)(cid:21)(cid:3)(cid:47)(cid:76)(cid:72)(cid:75)(cid:88)(cid:92)(cid:72)(cid:89)(cid:91)(cid:76)(cid:89)(cid:76)(cid:75)(cid:3)(cid:80)(cid:85)(cid:3)(cid:43)(cid:86)(cid:94)(cid:85)(cid:76)(cid:89)(cid:90)(cid:3)(cid:46)(cid:89)(cid:86)(cid:93)(cid:76)(cid:19)(cid:3)(cid:48)(cid:83)(cid:83)(cid:80)(cid:85)(cid:86)(cid:80)(cid:90)(cid:19)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:91)(cid:89)(cid:72)(cid:75)(cid:76)(cid:90)(cid:3)(cid:86)(cid:85)(cid:3)

(cid:91)(cid:79)(cid:76)(cid:3)(cid:53)(cid:76)(cid:94)(cid:3)(cid:64)(cid:86)(cid:89)(cid:82)(cid:3)(cid:58)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:44)(cid:95)(cid:74)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:3)(cid:92)(cid:85)(cid:75)(cid:76)(cid:89)(cid:3)(cid:184)(cid:43)(cid:54)(cid:61)(cid:21)(cid:185)(cid:3)(cid:40)(cid:75)(cid:75)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:3)(cid:80)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:80)(cid:90)(cid:3)(cid:72)(cid:93)(cid:72)(cid:80)(cid:83)(cid:72)(cid:73)(cid:83)(cid:76)(cid:3)(cid:72)(cid:91)(cid:3)(cid:75)(cid:86)(cid:93)(cid:76)(cid:89)(cid:74)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:21)(cid:74)(cid:86)(cid:84)(cid:21)

Financial Highlights

(cid:15)(cid:75)(cid:86)(cid:83)(cid:83)(cid:72)(cid:89)(cid:90)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:86)(cid:92)(cid:90)(cid:72)(cid:85)(cid:75)(cid:90)(cid:19)(cid:3)(cid:76)(cid:95)(cid:74)(cid:76)(cid:87)(cid:91)(cid:3)(cid:87)(cid:76)(cid:89)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)(cid:196)(cid:78)(cid:92)(cid:89)(cid:76)(cid:90)(cid:16) 

Revenue

(cid:44)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:73)(cid:76)(cid:77)(cid:86)(cid:89)(cid:76)(cid:3)(cid:91)(cid:72)(cid:95)(cid:76)(cid:90)

(cid:44)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)

(cid:44)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:87)(cid:76)(cid:89)(cid:3)(cid:75)(cid:80)(cid:83)(cid:92)(cid:91)(cid:76)(cid:75)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)

(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)

(cid:40)(cid:75)(cid:81)(cid:92)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)s (cid:15)(cid:24)(cid:16)

(cid:40)(cid:75)(cid:81)(cid:92)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:87)(cid:76)(cid:89)(cid:3)(cid:75)(cid:80)(cid:83)(cid:92)(cid:91)(cid:76)(cid:75)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)
(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90) (cid:15)(cid:24)(cid:16)

(cid:43)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:90)(cid:3)(cid:87)(cid:76)(cid:89)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:86)(cid:85)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)

(cid:42)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:76)(cid:95)(cid:87)(cid:76)(cid:85)(cid:75)(cid:80)(cid:91)(cid:92)(cid:89)(cid:76)(cid:90)

(cid:40)(cid:74)(cid:88)(cid:92)(cid:80)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:15)(cid:85)(cid:76)(cid:91)(cid:3)(cid:72)(cid:90)(cid:90)(cid:76)(cid:91)(cid:90)(cid:3)(cid:72)(cid:74)(cid:88)(cid:92)(cid:80)(cid:89)(cid:76)(cid:75)(cid:16)

(cid:42)(cid:72)(cid:90)(cid:79)(cid:3)(cid:197)(cid:86)(cid:94)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)

(cid:57)(cid:76)(cid:91)(cid:92)(cid:89)(cid:85)(cid:3)(cid:86)(cid:85)(cid:3)(cid:72)(cid:93)(cid:76)(cid:89)(cid:72)(cid:78)(cid:76)(cid:3)(cid:76)(cid:88)(cid:92)(cid:80)(cid:91)(cid:96) (cid:15)(cid:25)(cid:16)

Revenue & Adjusted Earnings 
from Continuing Operations(1)
($ in millions)

Revenue (Left Axis)
Adjusted Earnings from 
Continuing Operations (Right Axis) 

$7,000

5,250

3,500

1,750

0

$800

600

400

200

0

2018 

$  

6,992,118 

$  

725,378 

$ 

   591,145

$ 

$ 

$ 

$ 

$ 

$  

$ 

3.89

   755,906

4.97

1.90

170,994

 68,557(cid:3)

789,193

21.1%

(cid:25)(cid:23)(cid:24)(cid:30) 

(cid:29)(cid:19)(cid:31)(cid:25)(cid:23)(cid:19)(cid:31)(cid:31)(cid:29)

(cid:3)(cid:31)(cid:30)(cid:28)(cid:19)(cid:31)(cid:24)(cid:28)(cid:3)

(cid:30)(cid:27)(cid:29)(cid:19)(cid:29)(cid:29)(cid:26)(cid:3)

(cid:27)(cid:21)(cid:30)(cid:26)

(cid:29)(cid:28)(cid:27)(cid:19)(cid:31)(cid:27)(cid:30)(cid:3)

(cid:27)(cid:21)(cid:24)(cid:28)

(cid:24)(cid:21)(cid:31)(cid:25)

(cid:24)(cid:30)(cid:23)(cid:19)(cid:23)(cid:29)(cid:31)

(cid:25)(cid:30)(cid:19)(cid:24)(cid:31)(cid:31)

(cid:3)(cid:3)(cid:30)(cid:26)(cid:32)(cid:19)(cid:27)(cid:23)(cid:32)(cid:3)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:25)(cid:23)(cid:24)(cid:29) 

(cid:29)(cid:19)(cid:23)(cid:27)(cid:26)(cid:19)(cid:25)(cid:25)(cid:27)

(cid:29)(cid:31)(cid:27)(cid:19)(cid:29)(cid:27)(cid:27)

(cid:28)(cid:23)(cid:25)(cid:19)(cid:24)(cid:25)(cid:31)

(cid:26)(cid:21)(cid:25)(cid:24)

(cid:28)(cid:27)(cid:26)(cid:19)(cid:30)(cid:24)(cid:29)

(cid:26)(cid:21)(cid:27)(cid:30)

(cid:24)(cid:21)(cid:30)(cid:25)

(cid:3)(cid:24)(cid:26)(cid:32)(cid:19)(cid:28)(cid:30)(cid:31)

(cid:24)(cid:19)(cid:28)(cid:29)(cid:24)(cid:19)(cid:30)(cid:26)(cid:30)

(cid:3)(cid:30)(cid:26)(cid:27)(cid:19)(cid:28)(cid:32)(cid:29)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)

(cid:11)(cid:3)

(cid:11)

(cid:11)

(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)

(cid:24)(cid:29)(cid:21)(cid:23)(cid:12)

(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)

(cid:24)(cid:27)(cid:21)(cid:29)(cid:12)

Adjusted EPS(1)

$5.00

 3.75

2.50

1.25

0

Free Cash Flow (3)
($ in millions)

Free Cash Flow (Left Axis)
Free Cash Flow as a % of 
Revenue (Right Axis)

$800

600

400

200

0

12%

9

6

3

0

2016 

2017 

2018

2016 

2017 

2018

2016 

2017 

2018

(1(cid:16) (cid:44)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:72)(cid:89)(cid:76)(cid:3)(cid:72)(cid:75)(cid:81)(cid:92)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:73)(cid:96)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:76)(cid:584)(cid:76)(cid:74)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:72)(cid:74)(cid:88)(cid:92)(cid:80)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:20)(cid:89)(cid:76)(cid:83)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:72)(cid:84)(cid:86)(cid:89)(cid:91)(cid:80)(cid:97)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:19)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:59)(cid:72)(cid:95)(cid:3)(cid:42)(cid:92)(cid:91)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:49)(cid:86)(cid:73)(cid:90)(cid:3)(cid:40)(cid:74)(cid:91)(cid:19)(cid:3)(cid:78)(cid:72)(cid:80)(cid:85)(cid:90)(cid:3)(cid:86)(cid:85)(cid:3)(cid:75)(cid:80)(cid:90)(cid:87)(cid:86)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:86)(cid:77)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:76)(cid:90)(cid:19)(cid:3)(cid:75)(cid:80)(cid:90)(cid:87)(cid:86)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:74)(cid:86)(cid:90)(cid:91)(cid:90)(cid:19)
(cid:89)(cid:80)(cid:78)(cid:79)(cid:91)(cid:90)(cid:80)(cid:97)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:86)(cid:91)(cid:79)(cid:76)(cid:89)(cid:3)(cid:74)(cid:86)(cid:90)(cid:91)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:3)(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:91)(cid:3)(cid:89)(cid:76)(cid:74)(cid:72)(cid:83)(cid:83)(cid:3)(cid:89)(cid:76)(cid:90)(cid:76)(cid:89)(cid:93)(cid:76)(cid:3)(cid:74)(cid:79)(cid:72)(cid:89)(cid:78)(cid:76)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:89)(cid:76)(cid:93)(cid:76)(cid:89)(cid:90)(cid:72)(cid:83)(cid:3)(cid:91)(cid:86)(cid:3)(cid:75)(cid:76)(cid:89)(cid:80)(cid:93)(cid:76)(cid:3)(cid:24)(cid:16)(cid:3)(cid:72)(cid:75)(cid:81)(cid:92)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:25)(cid:16)(cid:3)(cid:72)(cid:75)(cid:81)(cid:92)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:87)(cid:76)(cid:89)(cid:3)(cid:75)(cid:80)(cid:83)(cid:92)(cid:91)(cid:76)(cid:75)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)
(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:15)(cid:73)(cid:86)(cid:91)(cid:79)(cid:3)(cid:85)(cid:86)(cid:85)(cid:20)(cid:46)(cid:40)(cid:40)(cid:55)(cid:3)(cid:84)(cid:76)(cid:72)(cid:90)(cid:92)(cid:89)(cid:76)(cid:90)(cid:16)(cid:21)

(2(cid:16) (cid:57)(cid:76)(cid:91)(cid:92)(cid:89)(cid:85)(cid:3)(cid:86)(cid:85)(cid:3)(cid:72)(cid:93)(cid:76)(cid:89)(cid:72)(cid:78)(cid:76)(cid:3)(cid:76)(cid:88)(cid:92)(cid:80)(cid:91)(cid:96)(cid:3)(cid:80)(cid:90)(cid:3)(cid:74)(cid:72)(cid:83)(cid:74)(cid:92)(cid:83)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:73)(cid:96)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:75)(cid:81)(cid:92)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:73)(cid:96)(cid:3)(cid:72)(cid:93)(cid:76)(cid:89)(cid:72)(cid:78)(cid:76)(cid:3)(cid:90)(cid:91)(cid:86)(cid:74)(cid:82)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:187)(cid:3)(cid:76)(cid:88)(cid:92)(cid:80)(cid:91)(cid:96)(cid:3)(cid:15)(cid:91)(cid:79)(cid:76)(cid:3)(cid:90)(cid:92)(cid:84)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:90)(cid:91)(cid:86)(cid:74)(cid:82)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:187)(cid:3)(cid:76)(cid:88)(cid:92)(cid:80)(cid:91)(cid:96)(cid:3)(cid:72)(cid:91)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)

(cid:73)(cid:76)(cid:78)(cid:80)(cid:85)(cid:85)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:76)(cid:85)(cid:75)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:75)(cid:3)(cid:73)(cid:96)(cid:3)(cid:25)(cid:16)(cid:21)

((cid:26)(cid:16) (cid:45)(cid:89)(cid:76)(cid:76)(cid:3)(cid:74)(cid:72)(cid:90)(cid:79)(cid:3)(cid:197)(cid:86)(cid:94)(cid:3)(cid:15)(cid:72)(cid:3)(cid:85)(cid:86)(cid:85)(cid:20)(cid:46)(cid:40)(cid:40)(cid:55)(cid:3)(cid:84)(cid:76)(cid:72)(cid:90)(cid:92)(cid:89)(cid:76)(cid:16)(cid:3)(cid:89)(cid:76)(cid:87)(cid:89)(cid:76)(cid:90)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:85)(cid:76)(cid:91)(cid:3)(cid:74)(cid:72)(cid:90)(cid:79)(cid:3)(cid:87)(cid:89)(cid:86)(cid:93)(cid:80)(cid:75)(cid:76)(cid:75)(cid:3)(cid:73)(cid:96)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:74)(cid:91)(cid:80)(cid:93)(cid:80)(cid:91)(cid:80)(cid:76)(cid:90)(cid:3)(cid:84)(cid:80)(cid:85)(cid:92)(cid:90)(cid:3)(cid:74)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:76)(cid:95)(cid:87)(cid:76)(cid:85)(cid:75)(cid:80)(cid:91)(cid:92)(cid:89)(cid:76)(cid:90)(cid:21)

Forward-Looking Statements and Non-GAAP Measures:
(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:40)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:57)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:72)(cid:80)(cid:85)(cid:90)(cid:3)(cid:77)(cid:86)(cid:89)(cid:94)(cid:72)(cid:89)(cid:75)(cid:20)(cid:83)(cid:86)(cid:86)(cid:82)(cid:80)(cid:85)(cid:78)(cid:3)(cid:90)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:72)(cid:89)(cid:76)(cid:3)(cid:80)(cid:85)(cid:79)(cid:76)(cid:89)(cid:76)(cid:85)(cid:91)(cid:83)(cid:96)(cid:3)(cid:90)(cid:92)(cid:73)(cid:81)(cid:76)(cid:74)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:92)(cid:85)(cid:74)(cid:76)(cid:89)(cid:91)(cid:72)(cid:80)(cid:85)(cid:91)(cid:80)(cid:76)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:89)(cid:80)(cid:90)(cid:82)(cid:90)(cid:21)(cid:3)(cid:62)(cid:76)(cid:3)(cid:74)(cid:72)(cid:92)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:73)(cid:76)(cid:3)(cid:78)(cid:92)(cid:80)(cid:75)(cid:76)(cid:75)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:80)(cid:89)(cid:3)(cid:72)(cid:85)(cid:72)(cid:83)(cid:96)(cid:90)(cid:80)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:73)(cid:96)(cid:3)(cid:89)(cid:76)(cid:77)(cid:76)(cid:89)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)
(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:75)(cid:86)(cid:74)(cid:92)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:94)(cid:76)(cid:3)(cid:196)(cid:83)(cid:76)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:58)(cid:44)(cid:42)(cid:19)(cid:3)(cid:80)(cid:85)(cid:74)(cid:83)(cid:92)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:45)(cid:86)(cid:89)(cid:84)(cid:3)(cid:24)(cid:23)(cid:20)(cid:50)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:25)(cid:23)(cid:24)(cid:31)(cid:19)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:72)(cid:3)(cid:83)(cid:80)(cid:90)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:77)(cid:72)(cid:74)(cid:91)(cid:86)(cid:89)(cid:90)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:74)(cid:86)(cid:92)(cid:83)(cid:75)(cid:3)(cid:74)(cid:72)(cid:92)(cid:90)(cid:76)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:89)(cid:76)(cid:90)(cid:92)(cid:83)(cid:91)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:75)(cid:80)(cid:584)(cid:76)(cid:89)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:91)(cid:79)(cid:86)(cid:90)(cid:76)(cid:3)(cid:72)(cid:85)(cid:91)(cid:80)(cid:74)(cid:80)(cid:87)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:80)(cid:85)(cid:3)(cid:72)(cid:85)(cid:96)(cid:3)(cid:90)(cid:92)(cid:74)(cid:79)(cid:3)(cid:77)(cid:86)(cid:89)(cid:94)(cid:72)(cid:89)(cid:75)(cid:20)(cid:83)(cid:86)(cid:86)(cid:82)(cid:80)(cid:85)(cid:78)(cid:3)
(cid:90)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:21)(cid:3)

(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:40)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:57)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:72)(cid:80)(cid:85)(cid:90)(cid:3)(cid:85)(cid:86)(cid:85)(cid:20)(cid:46)(cid:40)(cid:40)(cid:55)(cid:3)(cid:196)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:80)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:21)(cid:3)(cid:57)(cid:76)(cid:74)(cid:86)(cid:85)(cid:74)(cid:80)(cid:83)(cid:80)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:85)(cid:86)(cid:85)(cid:20)(cid:46)(cid:40)(cid:40)(cid:55)(cid:3)(cid:84)(cid:76)(cid:72)(cid:90)(cid:92)(cid:89)(cid:76)(cid:90)(cid:3)(cid:72)(cid:89)(cid:76)(cid:3)(cid:80)(cid:85)(cid:74)(cid:83)(cid:92)(cid:75)(cid:76)(cid:75)(cid:3)(cid:80)(cid:85)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:187)(cid:90)(cid:3)(cid:196)(cid:83)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:58)(cid:44)(cid:42)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:89)(cid:76)(cid:3)(cid:72)(cid:93)(cid:72)(cid:80)(cid:83)(cid:72)(cid:73)(cid:83)(cid:76)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)(cid:3)
(cid:57)(cid:76)(cid:83)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:90)(cid:76)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:94)(cid:76)(cid:73)(cid:90)(cid:80)(cid:91)(cid:76)(cid:21)

 
 
 
  
A Message from the President and 
(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:1117)(cid:74)(cid:76)(cid:89)

(cid:43)(cid:76)(cid:72)(cid:89)(cid:3)(cid:45)(cid:76)(cid:83)(cid:83)(cid:86)(cid:94)(cid:3)(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:19)

(cid:40)(cid:90)(cid:3)(cid:94)(cid:76)(cid:3)(cid:76)(cid:84)(cid:73)(cid:72)(cid:89)(cid:82)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:85)(cid:76)(cid:94)(cid:3)(cid:92)(cid:85)(cid:75)(cid:76)(cid:89)(cid:91)(cid:72)(cid:82)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:74)(cid:79)(cid:72)(cid:83)(cid:83)(cid:76)(cid:85)(cid:78)(cid:76)(cid:90)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)

(cid:84)(cid:72)(cid:74)(cid:79)(cid:80)(cid:85)(cid:76)(cid:90)(cid:21)(cid:3)(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:91)(cid:86)(cid:87)(cid:20)(cid:83)(cid:80)(cid:85)(cid:76)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:19)(cid:3)(cid:74)(cid:86)(cid:92)(cid:87)(cid:83)(cid:76)(cid:75)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:91)(cid:80)(cid:93)(cid:80)(cid:91)(cid:96)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:25)(cid:23)(cid:24)(cid:32)(cid:3)(cid:79)(cid:86)(cid:83)(cid:75)(cid:90)(cid:19)(cid:3)(cid:80)(cid:91)(cid:3)(cid:80)(cid:90)(cid:3)(cid:80)(cid:84)(cid:87)(cid:86)(cid:89)(cid:91)(cid:72)(cid:85)(cid:91)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:94)(cid:76)(cid:3)(cid:89)(cid:76)(cid:197)(cid:76)(cid:74)(cid:91)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:76)(cid:95)(cid:87)(cid:76)(cid:89)(cid:80)(cid:76)(cid:85)(cid:74)(cid:76)(cid:90)(cid:3)

(cid:74)(cid:86)(cid:90)(cid:91)(cid:3)(cid:80)(cid:84)(cid:87)(cid:89)(cid:86)(cid:93)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:72)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:19)(cid:3)(cid:75)(cid:89)(cid:86)(cid:93)(cid:76)(cid:3)(cid:72)(cid:3)(cid:84)(cid:72)(cid:91)(cid:76)(cid:89)(cid:80)(cid:72)(cid:83)(cid:3)(cid:80)(cid:84)(cid:87)(cid:89)(cid:86)(cid:93)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:80)(cid:85)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:74)(cid:79)(cid:80)(cid:76)(cid:93)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:87)(cid:72)(cid:90)(cid:91)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)(cid:3)(cid:90)(cid:76)(cid:91)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:86)(cid:73)(cid:81)(cid:76)(cid:74)(cid:91)(cid:80)(cid:93)(cid:76)(cid:90)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)

(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:84)(cid:72)(cid:89)(cid:78)(cid:80)(cid:85)(cid:3)(cid:87)(cid:76)(cid:89)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:80)(cid:90)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:21)(cid:3)(cid:48)(cid:85)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:80)(cid:85)(cid:75)(cid:92)(cid:90)(cid:91)(cid:89)(cid:80)(cid:72)(cid:83)(cid:90)(cid:3)

(cid:25)(cid:23)(cid:24)(cid:32)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:87)(cid:83)(cid:86)(cid:91)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:92)(cid:89)(cid:90)(cid:76)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:77)(cid:86)(cid:83)(cid:83)(cid:86)(cid:94)(cid:21)(cid:3)(cid:40)(cid:90)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:187)(cid:90)

(cid:87)(cid:83)(cid:72)(cid:91)(cid:77)(cid:86)(cid:89)(cid:84)(cid:19)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:76)(cid:90)(cid:3)(cid:90)(cid:76)(cid:89)(cid:93)(cid:80)(cid:85)(cid:78)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:80)(cid:85)(cid:75)(cid:92)(cid:90)(cid:91)(cid:89)(cid:80)(cid:72)(cid:83)(cid:3)(cid:94)(cid:80)(cid:85)(cid:74)(cid:79)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:85)(cid:76)(cid:94)(cid:3)(cid:42)(cid:44)(cid:54)(cid:19)(cid:3)(cid:48)(cid:3)(cid:73)(cid:76)(cid:83)(cid:80)(cid:76)(cid:93)(cid:76)(cid:3)(cid:80)(cid:91)(cid:3)(cid:80)(cid:90)(cid:3)(cid:80)(cid:84)(cid:87)(cid:86)(cid:89)(cid:91)(cid:72)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:90)(cid:91)(cid:72)(cid:89)(cid:91)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:72)(cid:3)(cid:89)(cid:76)(cid:93)(cid:80)(cid:76)(cid:94)(cid:3)(cid:86)(cid:77)(cid:3)(cid:25)(cid:23)(cid:24)(cid:31)(cid:3)

(cid:76)(cid:85)(cid:93)(cid:80)(cid:89)(cid:86)(cid:85)(cid:84)(cid:76)(cid:85)(cid:91)(cid:72)(cid:83)(cid:3)(cid:90)(cid:86)(cid:83)(cid:92)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:84)(cid:72)(cid:89)(cid:82)(cid:76)(cid:91)(cid:90)(cid:3)(cid:73)(cid:86)(cid:91)(cid:79)(cid:3)(cid:87)(cid:86)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:75)(cid:86)(cid:92)(cid:73)(cid:83)(cid:76)(cid:20)(cid:75)(cid:80)(cid:78)(cid:80)(cid:91)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:91)(cid:79)(cid:76)(cid:85)(cid:3)(cid:78)(cid:80)(cid:93)(cid:76)(cid:3)(cid:72)(cid:3)(cid:87)(cid:76)(cid:89)(cid:90)(cid:87)(cid:76)(cid:74)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:87)(cid:86)(cid:91)(cid:76)(cid:85)(cid:91)(cid:80)(cid:72)(cid:83)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:77)(cid:92)(cid:91)(cid:92)(cid:89)(cid:76)(cid:3)(cid:93)(cid:72)(cid:83)(cid:92)(cid:76)(cid:3)

(cid:91)(cid:86)(cid:87)(cid:20)(cid:83)(cid:80)(cid:85)(cid:76)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:73)(cid:72)(cid:74)(cid:82)(cid:3)(cid:86)(cid:77)(cid:3)(cid:77)(cid:72)(cid:93)(cid:86)(cid:89)(cid:72)(cid:73)(cid:83)(cid:76)(cid:3)(cid:91)(cid:89)(cid:72)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:74)(cid:86)(cid:85)(cid:75)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:74)(cid:89)(cid:76)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:72)(cid:91)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:21)

2018 Results

(cid:80)(cid:85)(cid:74)(cid:89)(cid:76)(cid:72)(cid:90)(cid:76)(cid:75)(cid:3)(cid:72)(cid:75)(cid:86)(cid:87)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:48)(cid:86)(cid:59)(cid:3)(cid:80)(cid:85)(cid:80)(cid:91)(cid:80)(cid:72)(cid:91)(cid:80)(cid:93)(cid:76)(cid:90)(cid:19)(cid:3)(cid:94)(cid:79)(cid:80)(cid:74)(cid:79)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:78)(cid:72)(cid:80)(cid:85)(cid:3)

(cid:91)(cid:89)(cid:72)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:84)(cid:72)(cid:89)(cid:82)(cid:76)(cid:91)(cid:87)(cid:83)(cid:72)(cid:74)(cid:76)(cid:21)

(cid:48)(cid:85)(cid:3)(cid:25)(cid:23)(cid:24)(cid:31)(cid:19)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:75)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:76)(cid:75)(cid:3)(cid:72)(cid:3)(cid:90)(cid:86)(cid:83)(cid:80)(cid:75)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:87)(cid:76)(cid:89)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)

(cid:59)(cid:79)(cid:76)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:45)(cid:83)(cid:92)(cid:80)(cid:75)(cid:90)(cid:3)(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:75)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:76)(cid:75)(cid:3)(cid:90)(cid:91)(cid:89)(cid:86)(cid:85)(cid:78)(cid:3)(cid:87)(cid:76)(cid:89)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)

(cid:11)(cid:30)(cid:21)(cid:23)(cid:3)(cid:73)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:3)(cid:86)(cid:77)(cid:3)(cid:89)(cid:76)(cid:93)(cid:76)(cid:85)(cid:92)(cid:76)(cid:3)(cid:72)(cid:91)(cid:3)(cid:72)(cid:85)(cid:3)(cid:86)(cid:89)(cid:78)(cid:72)(cid:85)(cid:80)(cid:74)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)(cid:89)(cid:72)(cid:91)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:26)(cid:21)(cid:30)(cid:12)(cid:3)

(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:11)(cid:25)(cid:21)(cid:31)(cid:3)(cid:73)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:3)(cid:80)(cid:85)(cid:3)(cid:89)(cid:76)(cid:93)(cid:76)(cid:85)(cid:92)(cid:76)(cid:19)(cid:3)(cid:86)(cid:89)(cid:78)(cid:72)(cid:85)(cid:80)(cid:74)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)(cid:86)(cid:77)(cid:3)

(cid:74)(cid:86)(cid:84)(cid:87)(cid:72)(cid:89)(cid:76)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:25)(cid:23)(cid:24)(cid:30)(cid:19)(cid:3)(cid:78)(cid:76)(cid:85)(cid:76)(cid:89)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:87)(cid:89)(cid:76)(cid:20)(cid:91)(cid:72)(cid:95)(cid:3)(cid:80)(cid:85)(cid:74)(cid:86)(cid:84)(cid:76)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:31)(cid:21)(cid:30)(cid:12)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:11)(cid:26)(cid:32)(cid:23)(cid:3)(cid:84)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:21)(cid:3)(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:89)(cid:76)(cid:90)(cid:92)(cid:83)(cid:91)(cid:3)(cid:94)(cid:72)(cid:90)(cid:3)

(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:11)(cid:30)(cid:25)(cid:28)(cid:3)(cid:84)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:79)(cid:72)(cid:75)(cid:3)(cid:85)(cid:76)(cid:91)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:11)(cid:28)(cid:32)(cid:24)(cid:3)(cid:84)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:21)(cid:3)

(cid:75)(cid:89)(cid:80)(cid:93)(cid:76)(cid:85)(cid:3)(cid:73)(cid:96)(cid:3)(cid:73)(cid:89)(cid:86)(cid:72)(cid:75)(cid:20)(cid:73)(cid:72)(cid:90)(cid:76)(cid:75)(cid:3)(cid:78)(cid:76)(cid:86)(cid:78)(cid:89)(cid:72)(cid:87)(cid:79)(cid:80)(cid:74)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)(cid:80)(cid:85)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:89)(cid:76)(cid:91)(cid:72)(cid:80)(cid:83)(cid:3)(cid:77)(cid:92)(cid:76)(cid:83)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:43)(cid:92)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)(cid:87)(cid:72)(cid:80)(cid:75)(cid:3)(cid:72)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)

(cid:87)(cid:86)(cid:89)(cid:91)(cid:77)(cid:86)(cid:83)(cid:80)(cid:86)(cid:19)(cid:3)(cid:87)(cid:72)(cid:89)(cid:91)(cid:80)(cid:74)(cid:92)(cid:83)(cid:72)(cid:89)(cid:83)(cid:96)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:77)(cid:92)(cid:76)(cid:83)(cid:80)(cid:85)(cid:78)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:86)(cid:85)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:19)(cid:3)(cid:94)(cid:79)(cid:80)(cid:74)(cid:79)(cid:3)

(cid:11)(cid:24)(cid:21)(cid:32)(cid:23)(cid:3)(cid:87)(cid:76)(cid:89)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:86)(cid:85)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:19)(cid:3)(cid:72)(cid:85)(cid:3)(cid:80)(cid:85)(cid:74)(cid:89)(cid:76)(cid:72)(cid:90)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:27)(cid:21)(cid:27)(cid:12)(cid:3)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:87)(cid:89)(cid:80)(cid:86)(cid:89)(cid:3)

(cid:90)(cid:76)(cid:80)(cid:97)(cid:76)(cid:75)(cid:3)(cid:92)(cid:87)(cid:86)(cid:85)(cid:3)(cid:89)(cid:76)(cid:78)(cid:92)(cid:83)(cid:72)(cid:91)(cid:86)(cid:89)(cid:96)(cid:3)(cid:75)(cid:89)(cid:80)(cid:93)(cid:76)(cid:85)(cid:3)(cid:75)(cid:76)(cid:84)(cid:72)(cid:85)(cid:75)(cid:3)(cid:80)(cid:85)(cid:3)(cid:40)(cid:90)(cid:80)(cid:72)(cid:21)(cid:3)(cid:54)(cid:92)(cid:89)(cid:3)(cid:87)(cid:92)(cid:84)(cid:87)(cid:90)(cid:3)

(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:89)(cid:76)(cid:87)(cid:92)(cid:89)(cid:74)(cid:79)(cid:72)(cid:90)(cid:76)(cid:75)(cid:3)(cid:11)(cid:31)(cid:32)(cid:28)(cid:3)(cid:84)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:3)(cid:94)(cid:86)(cid:89)(cid:91)(cid:79)(cid:3)(cid:86)(cid:77)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:86)(cid:85)(cid:3)(cid:90)(cid:91)(cid:86)(cid:74)(cid:82)(cid:21)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:87)(cid:89)(cid:86)(cid:74)(cid:76)(cid:90)(cid:90)(cid:80)(cid:85)(cid:78)(cid:3)(cid:90)(cid:86)(cid:83)(cid:92)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:76)(cid:90)(cid:3)(cid:75)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:76)(cid:75)(cid:3)(cid:72)(cid:3)(cid:90)(cid:80)(cid:78)(cid:85)(cid:80)(cid:196)(cid:74)(cid:72)(cid:85)(cid:91)(cid:83)(cid:96)(cid:3)

(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:87)(cid:76)(cid:89)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:94)(cid:72)(cid:90)(cid:3)(cid:72)(cid:74)(cid:79)(cid:80)(cid:76)(cid:93)(cid:76)(cid:75)(cid:3)(cid:91)(cid:79)(cid:89)(cid:86)(cid:92)(cid:78)(cid:79)(cid:3)(cid:73)(cid:89)(cid:86)(cid:72)(cid:75)(cid:20)(cid:73)(cid:72)(cid:90)(cid:76)(cid:75)(cid:3)(cid:89)(cid:76)(cid:93)(cid:76)(cid:85)(cid:92)(cid:76)(cid:3)

(cid:80)(cid:84)(cid:87)(cid:89)(cid:86)(cid:93)(cid:76)(cid:75)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:20)(cid:86)(cid:93)(cid:76)(cid:89)(cid:20)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:84)(cid:72)(cid:89)(cid:78)(cid:80)(cid:85)(cid:3)(cid:87)(cid:76)(cid:89)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)

(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:84)(cid:72)(cid:81)(cid:86)(cid:89)(cid:80)(cid:91)(cid:96)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:187)(cid:90)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:76)(cid:90)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:93)(cid:86)(cid:83)(cid:92)(cid:84)(cid:76)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)(cid:78)(cid:72)(cid:80)(cid:85)(cid:90)(cid:19)(cid:3)(cid:74)(cid:86)(cid:92)(cid:87)(cid:83)(cid:76)(cid:75)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:84)(cid:72)(cid:85)(cid:92)(cid:77)(cid:72)(cid:74)(cid:91)(cid:92)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)(cid:77)(cid:86)(cid:86)(cid:91)(cid:87)(cid:89)(cid:80)(cid:85)(cid:91)(cid:3)

(cid:90)(cid:80)(cid:78)(cid:85)(cid:80)(cid:196)(cid:74)(cid:72)(cid:85)(cid:91)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:91)(cid:80)(cid:93)(cid:80)(cid:91)(cid:96)(cid:3)(cid:72)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:92)(cid:85)(cid:75)(cid:76)(cid:89)(cid:91)(cid:72)(cid:82)(cid:76)(cid:85)(cid:3)(cid:73)(cid:96)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)

(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:91)(cid:80)(cid:93)(cid:80)(cid:91)(cid:96)(cid:3)(cid:76)(cid:585)(cid:74)(cid:80)(cid:76)(cid:85)(cid:74)(cid:80)(cid:76)(cid:90)(cid:21)

(cid:84)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:76)(cid:72)(cid:84)(cid:21)(cid:3)(cid:62)(cid:76)(cid:3)(cid:72)(cid:89)(cid:76)(cid:3)(cid:86)(cid:87)(cid:91)(cid:80)(cid:84)(cid:80)(cid:90)(cid:91)(cid:80)(cid:74)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:94)(cid:76)(cid:3)(cid:74)(cid:72)(cid:85)(cid:3)(cid:73)(cid:92)(cid:80)(cid:83)(cid:75)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:80)(cid:90)(cid:3)

(cid:84)(cid:86)(cid:84)(cid:76)(cid:85)(cid:91)(cid:92)(cid:84)(cid:3)(cid:72)(cid:90)(cid:3)(cid:94)(cid:76)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:74)(cid:72)(cid:87)(cid:91)(cid:92)(cid:89)(cid:76)(cid:3)(cid:84)(cid:72)(cid:89)(cid:82)(cid:76)(cid:91)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:19)(cid:3)(cid:84)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:3)

(cid:54)(cid:92)(cid:89)(cid:3)(cid:57)(cid:76)(cid:77)(cid:89)(cid:80)(cid:78)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:13)(cid:3)(cid:45)(cid:86)(cid:86)(cid:75)(cid:3)(cid:44)(cid:88)(cid:92)(cid:80)(cid:87)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:94)(cid:72)(cid:90)(cid:19)(cid:3)(cid:72)(cid:90)(cid:3)

(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:90)(cid:91)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:75)(cid:89)(cid:80)(cid:93)(cid:76)(cid:3)(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:91)(cid:80)(cid:93)(cid:80)(cid:91)(cid:96)(cid:3)(cid:80)(cid:84)(cid:87)(cid:89)(cid:86)(cid:93)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)

(cid:76)(cid:95)(cid:87)(cid:76)(cid:74)(cid:91)(cid:76)(cid:75)(cid:19)(cid:3)(cid:74)(cid:79)(cid:72)(cid:83)(cid:83)(cid:76)(cid:85)(cid:78)(cid:76)(cid:75)(cid:3)(cid:80)(cid:85)(cid:3)(cid:25)(cid:23)(cid:24)(cid:31)(cid:3)(cid:72)(cid:90)(cid:3)(cid:72)(cid:3)(cid:89)(cid:76)(cid:90)(cid:92)(cid:83)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:72)(cid:3)(cid:75)(cid:80)(cid:585)(cid:74)(cid:92)(cid:83)(cid:91)(cid:3)(cid:91)(cid:89)(cid:72)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:72)(cid:79)(cid:76)(cid:72)(cid:75)(cid:21)

(cid:76)(cid:85)(cid:93)(cid:80)(cid:89)(cid:86)(cid:85)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:80)(cid:85)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:89)(cid:76)(cid:91)(cid:72)(cid:80)(cid:83)(cid:3)(cid:89)(cid:76)(cid:77)(cid:89)(cid:80)(cid:78)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:74)(cid:72)(cid:85)(cid:3)(cid:90)(cid:79)(cid:72)(cid:87)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:76)(cid:88)(cid:92)(cid:80)(cid:87)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:76)(cid:90)(cid:21)(cid:3)(cid:57)(cid:76)(cid:93)(cid:76)(cid:85)(cid:92)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:11)(cid:24)(cid:21)(cid:28)(cid:3)(cid:73)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:3)(cid:89)(cid:76)(cid:197)(cid:76)(cid:74)(cid:91)(cid:76)(cid:75)(cid:3)(cid:72)(cid:85)(cid:3)

(cid:40)(cid:83)(cid:90)(cid:86)(cid:3)(cid:80)(cid:85)(cid:3)(cid:25)(cid:23)(cid:24)(cid:31)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)(cid:74)(cid:86)(cid:85)(cid:74)(cid:83)(cid:92)(cid:75)(cid:76)(cid:75)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:90)(cid:87)(cid:80)(cid:85)(cid:20)(cid:86)(cid:584)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:92)(cid:87)(cid:90)(cid:91)(cid:89)(cid:76)(cid:72)(cid:84)(cid:3)

(cid:86)(cid:89)(cid:78)(cid:72)(cid:85)(cid:80)(cid:74)(cid:3)(cid:75)(cid:76)(cid:74)(cid:83)(cid:80)(cid:85)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:30)(cid:21)(cid:32)(cid:12)(cid:3)(cid:75)(cid:92)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)(cid:3)(cid:89)(cid:76)(cid:90)(cid:92)(cid:83)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:80)(cid:85)(cid:3)(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)

(cid:76)(cid:85)(cid:76)(cid:89)(cid:78)(cid:96)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:3)(cid:80)(cid:85)(cid:91)(cid:86)(cid:3)(cid:72)(cid:3)(cid:90)(cid:91)(cid:72)(cid:85)(cid:75)(cid:72)(cid:83)(cid:86)(cid:85)(cid:76)(cid:19)(cid:3)(cid:87)(cid:92)(cid:73)(cid:83)(cid:80)(cid:74)(cid:83)(cid:96)(cid:3)(cid:91)(cid:89)(cid:72)(cid:75)(cid:76)(cid:75)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:3)

(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:75)(cid:89)(cid:86)(cid:87)(cid:87)(cid:80)(cid:85)(cid:78)(cid:3)(cid:91)(cid:86)(cid:3)(cid:11)(cid:24)(cid:26)(cid:29)(cid:3)(cid:84)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:21)(cid:3)(cid:62)(cid:76)(cid:3)(cid:89)(cid:76)(cid:72)(cid:74)(cid:91)(cid:76)(cid:75)(cid:3)(cid:75)(cid:76)(cid:74)(cid:80)(cid:90)(cid:80)(cid:93)(cid:76)(cid:83)(cid:96)(cid:3)

(cid:85)(cid:72)(cid:84)(cid:76)(cid:75)(cid:3)(cid:40)(cid:87)(cid:76)(cid:89)(cid:78)(cid:96)(cid:3)(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:19)(cid:3)(cid:94)(cid:79)(cid:80)(cid:74)(cid:79)(cid:3)(cid:73)(cid:76)(cid:78)(cid:72)(cid:85)(cid:3)(cid:91)(cid:89)(cid:72)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:53)(cid:76)(cid:94)(cid:3)

(cid:75)(cid:92)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:91)(cid:86)(cid:3)(cid:72)(cid:83)(cid:80)(cid:78)(cid:85)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:90)(cid:91)(cid:3)(cid:73)(cid:72)(cid:90)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:87)(cid:89)(cid:76)(cid:93)(cid:72)(cid:80)(cid:83)(cid:80)(cid:85)(cid:78)(cid:3)(cid:84)(cid:72)(cid:89)(cid:82)(cid:76)(cid:91)(cid:3)

(cid:64)(cid:86)(cid:89)(cid:82)(cid:3)(cid:58)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:44)(cid:95)(cid:74)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:3)(cid:86)(cid:85)(cid:3)(cid:52)(cid:72)(cid:96)(cid:3)(cid:32)(cid:3)(cid:86)(cid:77)(cid:3)(cid:83)(cid:72)(cid:90)(cid:91)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:21)(cid:3)(cid:59)(cid:79)(cid:76)(cid:3)(cid:90)(cid:87)(cid:80)(cid:85)(cid:20)(cid:86)(cid:584)(cid:3)(cid:94)(cid:72)(cid:90)(cid:3)

(cid:74)(cid:86)(cid:85)(cid:75)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:84)(cid:72)(cid:75)(cid:76)(cid:3)(cid:92)(cid:90)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:89)(cid:76)(cid:75)(cid:92)(cid:74)(cid:76)(cid:75)(cid:3)(cid:75)(cid:76)(cid:84)(cid:72)(cid:85)(cid:75)(cid:3)(cid:80)(cid:85)(cid:91)(cid:76)(cid:85)(cid:90)(cid:80)(cid:91)(cid:96)(cid:3)(cid:91)(cid:86)(cid:3)

(cid:72)(cid:3)(cid:90)(cid:80)(cid:78)(cid:85)(cid:80)(cid:196)(cid:74)(cid:72)(cid:85)(cid:91)(cid:3)(cid:74)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:87)(cid:86)(cid:89)(cid:91)(cid:77)(cid:86)(cid:83)(cid:80)(cid:86)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:94)(cid:76)(cid:3)(cid:90)(cid:91)(cid:89)(cid:86)(cid:85)(cid:78)(cid:83)(cid:96)(cid:3)

(cid:75)(cid:76)(cid:93)(cid:76)(cid:83)(cid:86)(cid:87)(cid:3)(cid:87)(cid:83)(cid:72)(cid:85)(cid:90)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:72)(cid:3)(cid:90)(cid:80)(cid:78)(cid:85)(cid:80)(cid:196)(cid:74)(cid:72)(cid:85)(cid:91)(cid:3)(cid:74)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:196)(cid:95)(cid:76)(cid:75)

(cid:73)(cid:76)(cid:83)(cid:80)(cid:76)(cid:93)(cid:76)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:91)(cid:79)(cid:80)(cid:90)(cid:3)(cid:90)(cid:76)(cid:87)(cid:72)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:94)(cid:80)(cid:83)(cid:83)(cid:3)(cid:74)(cid:89)(cid:76)(cid:72)(cid:91)(cid:76)(cid:3)(cid:93)(cid:72)(cid:83)(cid:92)(cid:76)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:3)

(cid:74)(cid:86)(cid:90)(cid:91)(cid:3)(cid:90)(cid:91)(cid:89)(cid:92)(cid:74)(cid:91)(cid:92)(cid:89)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:3)(cid:94)(cid:79)(cid:80)(cid:74)(cid:79)(cid:3)(cid:94)(cid:76)(cid:3)(cid:73)(cid:76)(cid:78)(cid:72)(cid:85)(cid:3)(cid:80)(cid:84)(cid:87)(cid:83)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:80)(cid:85)(cid:3)

(cid:73)(cid:96)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:87)(cid:76)(cid:85)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:77)(cid:86)(cid:74)(cid:92)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:76)(cid:85)(cid:72)(cid:73)(cid:83)(cid:80)(cid:85)(cid:78)(cid:3)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:80)(cid:85)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:89)(cid:76)(cid:3)

(cid:91)(cid:79)(cid:76)(cid:3)(cid:27)(cid:91)(cid:79)(cid:3)(cid:88)(cid:92)(cid:72)(cid:89)(cid:91)(cid:76)(cid:89)(cid:21)

(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:76)(cid:90)(cid:21)(cid:3)

Commitment to Deliver

Segment Performance

(cid:45)(cid:86)(cid:83)(cid:83)(cid:86)(cid:94)(cid:80)(cid:85)(cid:78)(cid:3)(cid:84)(cid:96)(cid:3)(cid:72)(cid:87)(cid:87)(cid:86)(cid:80)(cid:85)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:72)(cid:90)(cid:3)(cid:42)(cid:44)(cid:54)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:90)(cid:87)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:77)(cid:3)(cid:83)(cid:72)(cid:90)(cid:91)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)

(cid:54)(cid:92)(cid:89)(cid:3)(cid:44)(cid:85)(cid:78)(cid:80)(cid:85)(cid:76)(cid:76)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)(cid:58)(cid:96)(cid:90)(cid:91)(cid:76)(cid:84)(cid:90)(cid:3)(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:87)(cid:86)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:77)(cid:92)(cid:83)(cid:83)(cid:20)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:89)(cid:76)(cid:93)(cid:76)(cid:85)(cid:92)(cid:76)(cid:3)

(cid:72)(cid:85)(cid:3)(cid:80)(cid:85)(cid:91)(cid:76)(cid:85)(cid:90)(cid:76)(cid:3)(cid:72)(cid:90)(cid:90)(cid:76)(cid:90)(cid:90)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:87)(cid:86)(cid:89)(cid:91)(cid:77)(cid:86)(cid:83)(cid:80)(cid:86)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:76)(cid:85)(cid:74)(cid:76)(cid:75)(cid:3)

(cid:86)(cid:77)(cid:3)(cid:11)(cid:25)(cid:21)(cid:30)(cid:3)(cid:73)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:11)(cid:27)(cid:28)(cid:24)(cid:3)(cid:84)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:21)(cid:3)(cid:59)(cid:79)(cid:76)(cid:3)

(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:76)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:84)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:76)(cid:72)(cid:84)(cid:3)(cid:80)(cid:85)(cid:3)(cid:74)(cid:86)(cid:85)(cid:90)(cid:92)(cid:83)(cid:91)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)

(cid:90)(cid:76)(cid:78)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:79)(cid:72)(cid:75)(cid:3)(cid:87)(cid:72)(cid:89)(cid:91)(cid:80)(cid:74)(cid:92)(cid:83)(cid:72)(cid:89)(cid:83)(cid:96)(cid:3)(cid:90)(cid:91)(cid:89)(cid:86)(cid:85)(cid:78)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)(cid:80)(cid:85)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:87)(cid:89)(cid:80)(cid:85)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:41)(cid:86)(cid:72)(cid:89)(cid:75)(cid:3)(cid:86)(cid:77)(cid:3)(cid:43)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:86)(cid:89)(cid:90)(cid:21)(cid:3)(cid:54)(cid:85)(cid:74)(cid:76)(cid:3)(cid:91)(cid:79)(cid:80)(cid:90)(cid:3)(cid:87)(cid:89)(cid:86)(cid:74)(cid:76)(cid:90)(cid:90)(cid:3)(cid:94)(cid:72)(cid:90)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:83)(cid:76)(cid:91)(cid:76)(cid:75)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)

(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:80)(cid:196)(cid:74)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:87)(cid:83)(cid:72)(cid:91)(cid:77)(cid:86)(cid:89)(cid:84)(cid:3)(cid:72)(cid:90)(cid:3)(cid:72)(cid:3)(cid:89)(cid:76)(cid:90)(cid:92)(cid:83)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:90)(cid:80)(cid:78)(cid:85)(cid:80)(cid:196)(cid:74)(cid:72)(cid:85)(cid:91)(cid:3)(cid:80)(cid:85)(cid:89)(cid:86)(cid:72)(cid:75)(cid:90)(cid:3)(cid:84)(cid:72)(cid:75)(cid:76)(cid:3)

(cid:74)(cid:86)(cid:85)(cid:75)(cid:92)(cid:74)(cid:91)(cid:76)(cid:75)(cid:3)(cid:72)(cid:3)(cid:74)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:84)(cid:72)(cid:89)(cid:82)(cid:76)(cid:91)(cid:90)(cid:3)(cid:75)(cid:72)(cid:96)(cid:3)(cid:80)(cid:85)(cid:3)(cid:58)(cid:76)(cid:87)(cid:91)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:3)(cid:80)(cid:85)(cid:3)(cid:53)(cid:76)(cid:94)(cid:3)(cid:64)(cid:86)(cid:89)(cid:82)(cid:3)

(cid:73)(cid:96)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:75)(cid:80)(cid:78)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:87)(cid:89)(cid:80)(cid:85)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:80)(cid:91)(cid:90)(cid:3)(cid:79)(cid:80)(cid:78)(cid:79)(cid:20)(cid:90)(cid:87)(cid:76)(cid:76)(cid:75)(cid:3)(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)

(cid:91)(cid:86)(cid:3)(cid:87)(cid:89)(cid:76)(cid:90)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:85)(cid:76)(cid:72)(cid:89)(cid:20)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:84)(cid:76)(cid:75)(cid:80)(cid:92)(cid:84)(cid:20)(cid:91)(cid:76)(cid:89)(cid:84)(cid:3)(cid:87)(cid:89)(cid:80)(cid:86)(cid:89)(cid:80)(cid:91)(cid:80)(cid:76)(cid:90)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:74)(cid:89)(cid:76)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:93)(cid:72)(cid:83)(cid:92)(cid:76)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:21)(cid:3)(cid:62)(cid:76)(cid:3)(cid:87)(cid:89)(cid:76)(cid:90)(cid:76)(cid:85)(cid:91)(cid:76)(cid:75)(cid:3)(cid:72)(cid:3)(cid:87)(cid:83)(cid:72)(cid:85)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:94)(cid:72)(cid:90)(cid:3)(cid:72)(cid:3)

(cid:54)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:89)(cid:76)(cid:91)(cid:92)(cid:89)(cid:85)(cid:3)(cid:74)(cid:72)(cid:90)(cid:79)(cid:3)(cid:91)(cid:86)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:76)(cid:75)(cid:3)(cid:80)(cid:85)(cid:3)

(cid:74)(cid:83)(cid:76)(cid:72)(cid:89)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:85)(cid:3)(cid:72)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:73)(cid:76)(cid:3)(cid:91)(cid:72)(cid:82)(cid:76)(cid:85)(cid:3)(cid:91)(cid:86)(cid:3)(cid:72)(cid:83)(cid:80)(cid:78)(cid:85)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:86)(cid:93)(cid:76)(cid:89)(cid:79)(cid:76)(cid:72)(cid:75)(cid:3)

(cid:25)(cid:23)(cid:24)(cid:31)(cid:19)(cid:3)(cid:72)(cid:90)(cid:3)(cid:94)(cid:76)(cid:3)(cid:89)(cid:72)(cid:80)(cid:90)(cid:76)(cid:75)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:72)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:29)(cid:26)(cid:89)(cid:75)(cid:3)(cid:74)(cid:86)(cid:85)(cid:90)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)

(cid:74)(cid:86)(cid:90)(cid:91)(cid:3)(cid:90)(cid:91)(cid:89)(cid:92)(cid:74)(cid:91)(cid:92)(cid:89)(cid:76)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:73)(cid:76)(cid:90)(cid:91)(cid:20)(cid:80)(cid:85)(cid:20)(cid:74)(cid:83)(cid:72)(cid:90)(cid:90)(cid:3)(cid:87)(cid:76)(cid:76)(cid:89)(cid:90)(cid:19)(cid:3)(cid:73)(cid:76)(cid:78)(cid:80)(cid:85)(cid:3)(cid:72)(cid:3)(cid:77)(cid:92)(cid:85)(cid:75)(cid:72)(cid:84)(cid:76)(cid:85)(cid:91)(cid:72)(cid:83)(cid:3)

(cid:96)(cid:76)(cid:72)(cid:89)(cid:19)(cid:3)(cid:94)(cid:79)(cid:80)(cid:83)(cid:76)(cid:3)(cid:72)(cid:83)(cid:90)(cid:86)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:83)(cid:76)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:87)(cid:89)(cid:76)(cid:93)(cid:80)(cid:86)(cid:92)(cid:90)(cid:83)(cid:96)(cid:3)(cid:72)(cid:85)(cid:85)(cid:86)(cid:92)(cid:85)(cid:74)(cid:76)(cid:75)(cid:3)(cid:11)(cid:24)(cid:3)(cid:73)(cid:80)(cid:83)(cid:83)(cid:80)(cid:86)(cid:85)(cid:3)

(cid:72)(cid:90)(cid:90)(cid:76)(cid:90)(cid:90)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:187)(cid:90)(cid:3)(cid:196)(cid:95)(cid:76)(cid:75)(cid:3)(cid:74)(cid:86)(cid:90)(cid:91)(cid:3)(cid:90)(cid:91)(cid:89)(cid:92)(cid:74)(cid:91)(cid:92)(cid:89)(cid:76)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:80)(cid:77)(cid:96)(cid:3)

(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)(cid:89)(cid:76)(cid:87)(cid:92)(cid:89)(cid:74)(cid:79)(cid:72)(cid:90)(cid:76)(cid:3)(cid:87)(cid:89)(cid:86)(cid:78)(cid:89)(cid:72)(cid:84)(cid:21)

(cid:86)(cid:87)(cid:87)(cid:86)(cid:89)(cid:91)(cid:92)(cid:85)(cid:80)(cid:91)(cid:80)(cid:76)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:80)(cid:85)(cid:74)(cid:89)(cid:76)(cid:72)(cid:90)(cid:76)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:83)(cid:76)(cid:93)(cid:76)(cid:89)(cid:72)(cid:78)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:72)(cid:90)(cid:90)(cid:76)(cid:91)(cid:3)

(cid:73)(cid:72)(cid:90)(cid:76)(cid:21)(cid:3)(cid:48)(cid:3)(cid:72)(cid:84)(cid:3)(cid:87)(cid:83)(cid:76)(cid:72)(cid:90)(cid:76)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:89)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:86)(cid:93)(cid:76)(cid:89)(cid:79)(cid:76)(cid:72)(cid:75)(cid:3)(cid:74)(cid:86)(cid:90)(cid:91)(cid:3)(cid:90)(cid:91)(cid:89)(cid:92)(cid:74)(cid:91)(cid:92)(cid:89)(cid:76)

(cid:45)(cid:80)(cid:85)(cid:72)(cid:83)(cid:83)(cid:96)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)(cid:74)(cid:86)(cid:85)(cid:196)(cid:89)(cid:84)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:74)(cid:86)(cid:85)(cid:75)(cid:92)(cid:74)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:3)(cid:80)(cid:85)(cid:3)

(cid:72)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:94)(cid:76)(cid:89)(cid:76)(cid:3)(cid:75)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:76)(cid:75)(cid:3)(cid:73)(cid:76)(cid:77)(cid:86)(cid:89)(cid:76)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:76)(cid:85)(cid:75)(cid:3)(cid:86)(cid:77)(cid:3)(cid:25)(cid:23)(cid:24)(cid:31)(cid:21)(cid:3)(cid:48)(cid:85)(cid:3)(cid:72)(cid:75)(cid:75)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)

(cid:72)(cid:3)(cid:90)(cid:92)(cid:90)(cid:91)(cid:72)(cid:80)(cid:85)(cid:72)(cid:73)(cid:83)(cid:76)(cid:3)(cid:84)(cid:72)(cid:85)(cid:85)(cid:76)(cid:89)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:74)(cid:86)(cid:85)(cid:90)(cid:80)(cid:75)(cid:76)(cid:89)(cid:90)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:76)(cid:85)(cid:93)(cid:80)(cid:89)(cid:86)(cid:85)(cid:84)(cid:76)(cid:85)(cid:91)(cid:72)(cid:83)(cid:19)(cid:3)(cid:90)(cid:86)(cid:74)(cid:80)(cid:72)(cid:83)(cid:19)(cid:3)

(cid:79)(cid:72)(cid:93)(cid:76)(cid:3)(cid:73)(cid:76)(cid:78)(cid:92)(cid:85)(cid:3)(cid:91)(cid:86)(cid:3)(cid:72)(cid:75)(cid:75)(cid:89)(cid:76)(cid:90)(cid:90)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:196)(cid:95)(cid:76)(cid:75)(cid:3)(cid:74)(cid:86)(cid:90)(cid:91)(cid:3)(cid:90)(cid:91)(cid:89)(cid:92)(cid:74)(cid:91)(cid:92)(cid:89)(cid:76)(cid:3)(cid:94)(cid:79)(cid:80)(cid:74)(cid:79)(cid:3)(cid:80)(cid:90)(cid:3)(cid:83)(cid:80)(cid:82)(cid:76)(cid:83)(cid:96)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:78)(cid:86)(cid:93)(cid:76)(cid:89)(cid:85)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:72)(cid:90)(cid:87)(cid:76)(cid:74)(cid:91)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:80)(cid:85)(cid:91)(cid:76)(cid:89)(cid:72)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:3)(cid:84)(cid:72)(cid:89)(cid:82)(cid:76)(cid:91)(cid:90)(cid:3)

(cid:91)(cid:86)(cid:3)(cid:73)(cid:76)(cid:3)(cid:72)(cid:3)(cid:84)(cid:92)(cid:83)(cid:91)(cid:80)(cid:20)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:76)(cid:85)(cid:75)(cid:76)(cid:72)(cid:93)(cid:86)(cid:89)(cid:21)(cid:3)(cid:59)(cid:79)(cid:76)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:86)(cid:87)(cid:76)(cid:89)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:92)(cid:85)(cid:80)(cid:91)(cid:80)(cid:76)(cid:90)(cid:3)(cid:94)(cid:79)(cid:76)(cid:89)(cid:76)(cid:3)(cid:94)(cid:76)(cid:3)(cid:74)(cid:86)(cid:85)(cid:75)(cid:92)(cid:74)(cid:91)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:21)

(cid:74)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:90)(cid:187)(cid:3)(cid:84)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:76)(cid:72)(cid:84)(cid:90)(cid:3)(cid:91)(cid:86)(cid:3)(cid:75)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:3)(cid:79)(cid:72)(cid:90)(cid:3)(cid:73)(cid:76)(cid:76)(cid:85)(cid:3)(cid:76)(cid:95)(cid:76)(cid:84)(cid:87)(cid:83)(cid:72)(cid:89)(cid:96)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:3)(cid:91)(cid:76)(cid:90)(cid:91)(cid:72)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:76)(cid:91)(cid:80)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:90)(cid:87)(cid:80)(cid:89)(cid:80)(cid:91)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:90)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:80)(cid:85)(cid:3)

Bob Livingston

(cid:91)(cid:79)(cid:76)(cid:3)(cid:90)(cid:76)(cid:85)(cid:80)(cid:86)(cid:89)(cid:3)(cid:83)(cid:76)(cid:72)(cid:75)(cid:76)(cid:89)(cid:90)(cid:79)(cid:80)(cid:87)(cid:3)(cid:72)(cid:91)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:21)(cid:3)(cid:59)(cid:79)(cid:76)(cid:3)(cid:87)(cid:83)(cid:72)(cid:85)(cid:3)(cid:72)(cid:83)(cid:90)(cid:86)(cid:3)(cid:89)(cid:76)(cid:72)(cid:585)(cid:89)(cid:84)(cid:76)(cid:75)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)

(cid:41)(cid:76)(cid:77)(cid:86)(cid:89)(cid:76)(cid:3)(cid:74)(cid:83)(cid:86)(cid:90)(cid:80)(cid:85)(cid:78)(cid:19)(cid:3)(cid:48)(cid:3)(cid:94)(cid:72)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:89)(cid:76)(cid:74)(cid:86)(cid:78)(cid:85)(cid:80)(cid:97)(cid:76)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:80)(cid:85)(cid:74)(cid:89)(cid:76)(cid:75)(cid:80)(cid:73)(cid:83)(cid:76)(cid:3)(cid:74)(cid:72)(cid:89)(cid:76)(cid:76)(cid:89)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:74)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:72)(cid:83)(cid:83)(cid:86)(cid:74)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:87)(cid:89)(cid:80)(cid:86)(cid:89)(cid:80)(cid:91)(cid:80)(cid:76)(cid:90)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:86)(cid:89)(cid:78)(cid:72)(cid:85)(cid:80)(cid:74)(cid:3)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)(cid:79)(cid:92)(cid:89)(cid:75)(cid:83)(cid:76)(cid:3)(cid:89)(cid:72)(cid:91)(cid:76)(cid:90)(cid:3)

(cid:86)(cid:92)(cid:91)(cid:90)(cid:91)(cid:72)(cid:85)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:83)(cid:76)(cid:72)(cid:75)(cid:76)(cid:89)(cid:90)(cid:79)(cid:80)(cid:87)(cid:3)(cid:86)(cid:77)(cid:3)(cid:84)(cid:96)(cid:3)(cid:87)(cid:89)(cid:76)(cid:75)(cid:76)(cid:74)(cid:76)(cid:90)(cid:90)(cid:86)(cid:89)(cid:19)(cid:3)(cid:41)(cid:86)(cid:73)(cid:3)(cid:51)(cid:80)(cid:93)(cid:80)(cid:85)(cid:78)(cid:90)(cid:91)(cid:86)(cid:85)(cid:21)(cid:3)

(cid:77)(cid:86)(cid:89)(cid:3)(cid:80)(cid:85)(cid:86)(cid:89)(cid:78)(cid:72)(cid:85)(cid:80)(cid:74)(cid:3)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:89)(cid:76)(cid:91)(cid:92)(cid:89)(cid:85)(cid:3)(cid:76)(cid:95)(cid:74)(cid:76)(cid:90)(cid:90)(cid:3)

(cid:54)(cid:85)(cid:3)(cid:40)(cid:87)(cid:89)(cid:80)(cid:83)(cid:3)(cid:26)(cid:23)(cid:19)(cid:3)(cid:25)(cid:23)(cid:24)(cid:31)(cid:19)(cid:3)(cid:41)(cid:86)(cid:73)(cid:3)(cid:89)(cid:76)(cid:91)(cid:80)(cid:89)(cid:76)(cid:75)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:72)(cid:77)(cid:91)(cid:76)(cid:89)(cid:3)(cid:90)(cid:87)(cid:76)(cid:85)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:26)(cid:28)(cid:3)

(cid:74)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:91)(cid:86)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:21)

(cid:96)(cid:76)(cid:72)(cid:89)(cid:90)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:19)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:83)(cid:72)(cid:90)(cid:91)(cid:3)(cid:32)(cid:3)(cid:72)(cid:90)(cid:3)(cid:42)(cid:44)(cid:54)(cid:21)(cid:3)(cid:41)(cid:86)(cid:73)(cid:187)(cid:90)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:89)(cid:80)(cid:73)(cid:92)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)

(cid:94)(cid:76)(cid:89)(cid:76)(cid:3)(cid:84)(cid:72)(cid:85)(cid:96)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:92)(cid:83)(cid:91)(cid:80)(cid:84)(cid:72)(cid:91)(cid:76)(cid:83)(cid:96)(cid:19)(cid:3)(cid:79)(cid:80)(cid:90)(cid:3)(cid:76)(cid:584)(cid:86)(cid:89)(cid:91)(cid:90)(cid:3)(cid:90)(cid:80)(cid:78)(cid:85)(cid:80)(cid:196)(cid:74)(cid:72)(cid:85)(cid:91)(cid:83)(cid:96)(cid:3)(cid:80)(cid:84)(cid:87)(cid:89)(cid:86)(cid:93)(cid:76)(cid:75)(cid:3)

Transformation of Dover

(cid:91)(cid:79)(cid:76)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:21)(cid:3)(cid:47)(cid:80)(cid:90)(cid:3)(cid:83)(cid:86)(cid:85)(cid:78)(cid:3)(cid:91)(cid:76)(cid:85)(cid:92)(cid:89)(cid:76)(cid:3)(cid:79)(cid:76)(cid:89)(cid:76)(cid:3)(cid:94)(cid:72)(cid:90)(cid:3)(cid:86)(cid:85)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:87)(cid:72)(cid:90)(cid:90)(cid:80)(cid:86)(cid:85)(cid:19)(cid:3)

(cid:58)(cid:80)(cid:85)(cid:74)(cid:76)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:90)(cid:87)(cid:80)(cid:85)(cid:20)(cid:86)(cid:584)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:92)(cid:87)(cid:90)(cid:91)(cid:89)(cid:76)(cid:72)(cid:84)(cid:3)(cid:76)(cid:85)(cid:76)(cid:89)(cid:78)(cid:96)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:19)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:79)(cid:72)(cid:90)(cid:3)

(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:92)(cid:85)(cid:94)(cid:72)(cid:93)(cid:76)(cid:89)(cid:80)(cid:85)(cid:78)(cid:3)(cid:80)(cid:85)(cid:91)(cid:76)(cid:78)(cid:89)(cid:80)(cid:91)(cid:96)(cid:21)(cid:3)(cid:47)(cid:76)(cid:3)(cid:94)(cid:72)(cid:90)(cid:3)(cid:75)(cid:76)(cid:75)(cid:80)(cid:74)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)

(cid:73)(cid:76)(cid:74)(cid:86)(cid:84)(cid:76)(cid:3)(cid:72)(cid:3)(cid:84)(cid:86)(cid:89)(cid:76)(cid:3)(cid:77)(cid:86)(cid:74)(cid:92)(cid:90)(cid:76)(cid:75)(cid:3)(cid:84)(cid:92)(cid:83)(cid:91)(cid:80)(cid:20)(cid:80)(cid:85)(cid:75)(cid:92)(cid:90)(cid:91)(cid:89)(cid:80)(cid:72)(cid:83)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:74)(cid:83)(cid:76)(cid:72)(cid:89)(cid:3)

(cid:91)(cid:86)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:76)(cid:84)(cid:87)(cid:83)(cid:86)(cid:96)(cid:76)(cid:76)(cid:90)(cid:19)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:72)(cid:3)(cid:77)(cid:86)(cid:74)(cid:92)(cid:90)(cid:3)(cid:86)(cid:85)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:75)(cid:93)(cid:72)(cid:85)(cid:74)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:75)(cid:89)(cid:80)(cid:93)(cid:76)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:75)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:80)(cid:90)(cid:3)(cid:94)(cid:76)(cid:83)(cid:83)(cid:20)(cid:87)(cid:86)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:76)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:89)(cid:76)(cid:72)(cid:83)(cid:80)(cid:97)(cid:76)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:93)(cid:80)(cid:90)(cid:80)(cid:86)(cid:85)(cid:3)

(cid:84)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:72)(cid:83)(cid:76)(cid:85)(cid:91)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:80)(cid:85)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:21)(cid:3)(cid:52)(cid:72)(cid:85)(cid:96)(cid:3)(cid:84)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)

(cid:86)(cid:77)(cid:3)(cid:73)(cid:76)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:3)(cid:74)(cid:86)(cid:85)(cid:90)(cid:80)(cid:90)(cid:91)(cid:76)(cid:85)(cid:91)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:86)(cid:92)(cid:85)(cid:75)(cid:76)(cid:89)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:3)(cid:75)(cid:80)(cid:90)(cid:74)(cid:80)(cid:87)(cid:83)(cid:80)(cid:85)(cid:76)(cid:75)(cid:3)

(cid:83)(cid:76)(cid:72)(cid:75)(cid:76)(cid:89)(cid:90)(cid:79)(cid:80)(cid:87)(cid:3)(cid:91)(cid:76)(cid:72)(cid:84)(cid:3)(cid:94)(cid:76)(cid:89)(cid:76)(cid:3)(cid:78)(cid:92)(cid:80)(cid:75)(cid:76)(cid:75)(cid:3)(cid:73)(cid:96)(cid:3)(cid:41)(cid:86)(cid:73)(cid:3)(cid:91)(cid:79)(cid:89)(cid:86)(cid:92)(cid:78)(cid:79)(cid:3)(cid:91)(cid:79)(cid:76)(cid:80)(cid:89)(cid:3)(cid:74)(cid:72)(cid:89)(cid:76)(cid:76)(cid:89)(cid:90)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:90)(cid:91)(cid:76)(cid:94)(cid:72)(cid:89)(cid:75)(cid:3)(cid:86)(cid:77)(cid:3)(cid:74)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:72)(cid:83)(cid:83)(cid:86)(cid:74)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:21)(cid:3)(cid:62)(cid:76)(cid:3)(cid:76)(cid:95)(cid:87)(cid:76)(cid:74)(cid:91)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:77)(cid:92)(cid:91)(cid:92)(cid:89)(cid:76)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)

(cid:86)(cid:85)(cid:76)(cid:3)(cid:94)(cid:86)(cid:92)(cid:83)(cid:75)(cid:3)(cid:73)(cid:76)(cid:3)(cid:79)(cid:72)(cid:89)(cid:75)(cid:3)(cid:87)(cid:89)(cid:76)(cid:90)(cid:90)(cid:76)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:196)(cid:85)(cid:75)(cid:3)(cid:72)(cid:85)(cid:96)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:80)(cid:85)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)

(cid:91)(cid:86)(cid:3)(cid:74)(cid:86)(cid:84)(cid:76)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:86)(cid:89)(cid:78)(cid:72)(cid:85)(cid:80)(cid:74)(cid:3)(cid:76)(cid:584)(cid:86)(cid:89)(cid:91)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:76)(cid:95)(cid:80)(cid:90)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:73)(cid:92)(cid:90)(cid:80)(cid:85)(cid:76)(cid:90)(cid:90)(cid:76)(cid:90)(cid:19)(cid:3)

(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:75)(cid:86)(cid:76)(cid:90)(cid:3)(cid:85)(cid:86)(cid:91)(cid:3)(cid:75)(cid:76)(cid:84)(cid:86)(cid:85)(cid:90)(cid:91)(cid:89)(cid:72)(cid:91)(cid:76)(cid:3)(cid:79)(cid:80)(cid:90)(cid:3)(cid:74)(cid:86)(cid:85)(cid:74)(cid:76)(cid:89)(cid:85)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:75)(cid:76)(cid:93)(cid:76)(cid:83)(cid:86)(cid:87)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:94)(cid:76)(cid:3)(cid:76)(cid:95)(cid:87)(cid:76)(cid:74)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:90)(cid:92)(cid:87)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:90)(cid:92)(cid:74)(cid:79)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:3)(cid:73)(cid:96)(cid:3)(cid:80)(cid:85)(cid:74)(cid:89)(cid:76)(cid:72)(cid:90)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:86)(cid:92)(cid:89)(cid:3)(cid:76)(cid:84)(cid:87)(cid:83)(cid:86)(cid:96)(cid:76)(cid:76)(cid:90)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:79)(cid:80)(cid:90)(cid:3)(cid:75)(cid:76)(cid:93)(cid:86)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:91)(cid:86)(cid:3)(cid:90)(cid:76)(cid:89)(cid:93)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:92)(cid:90)(cid:91)(cid:86)(cid:84)(cid:76)(cid:89)(cid:90)(cid:21)(cid:3)(cid:59)(cid:79)(cid:76)(cid:3)

(cid:74)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:90)(cid:87)(cid:76)(cid:85)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:73)(cid:96)(cid:3)(cid:26)(cid:23)(cid:12)(cid:3)(cid:20)(cid:3)(cid:27)(cid:23)(cid:12)(cid:3)(cid:80)(cid:85)(cid:3)(cid:25)(cid:23)(cid:24)(cid:32)(cid:21)(cid:3)(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)

(cid:41)(cid:86)(cid:72)(cid:89)(cid:75)(cid:3)(cid:86)(cid:77)(cid:3)(cid:43)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:86)(cid:89)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:48)(cid:3)(cid:94)(cid:86)(cid:92)(cid:83)(cid:75)(cid:3)(cid:83)(cid:80)(cid:82)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:72)(cid:85)(cid:82)(cid:3)(cid:79)(cid:80)(cid:84)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:94)(cid:80)(cid:90)(cid:79)(cid:3)(cid:79)(cid:80)(cid:84)(cid:3)(cid:72)(cid:3)

(cid:72)(cid:85)(cid:75)(cid:3)(cid:90)(cid:92)(cid:87)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:84)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:76)(cid:72)(cid:84)(cid:90)(cid:3)(cid:80)(cid:90)(cid:3)(cid:94)(cid:72)(cid:89)(cid:89)(cid:72)(cid:85)(cid:91)(cid:76)(cid:75)(cid:3)(cid:78)(cid:80)(cid:93)(cid:76)(cid:85)(cid:3)

(cid:77)(cid:89)(cid:92)(cid:80)(cid:91)(cid:77)(cid:92)(cid:83)(cid:3)(cid:89)(cid:76)(cid:91)(cid:80)(cid:89)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:21)

(cid:91)(cid:79)(cid:76)(cid:80)(cid:89)(cid:3)(cid:75)(cid:76)(cid:84)(cid:86)(cid:85)(cid:90)(cid:91)(cid:89)(cid:72)(cid:91)(cid:76)(cid:75)(cid:3)(cid:72)(cid:73)(cid:80)(cid:83)(cid:80)(cid:91)(cid:96)(cid:3)(cid:91)(cid:86)(cid:3)(cid:75)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:3)(cid:79)(cid:80)(cid:78)(cid:79)(cid:3)(cid:89)(cid:76)(cid:91)(cid:92)(cid:89)(cid:85)(cid:90)(cid:3)(cid:77)(cid:89)(cid:86)(cid:84)(cid:3)(cid:91)(cid:79)(cid:76)(cid:80)(cid:89)(cid:3)

(cid:74)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:90)(cid:21)

Closing

(cid:40)(cid:75)(cid:75)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:83)(cid:96)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)(cid:79)(cid:72)(cid:93)(cid:76)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:91)(cid:76)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:76)(cid:85)(cid:79)(cid:72)(cid:85)(cid:74)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:187)(cid:90)

(cid:76)(cid:84)(cid:87)(cid:83)(cid:86)(cid:96)(cid:76)(cid:76)(cid:90)(cid:19)(cid:3)(cid:77)(cid:86)(cid:89)(cid:3)(cid:96)(cid:86)(cid:92)(cid:89)(cid:3)(cid:90)(cid:92)(cid:87)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:91)(cid:89)(cid:92)(cid:90)(cid:91)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:96)(cid:86)(cid:92)(cid:3)(cid:79)(cid:72)(cid:93)(cid:76)(cid:3)(cid:87)(cid:92)(cid:91)(cid:3)(cid:80)(cid:85)(cid:3)

(cid:75)(cid:80)(cid:78)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:87)(cid:89)(cid:76)(cid:90)(cid:76)(cid:85)(cid:74)(cid:76)(cid:3)(cid:73)(cid:96)(cid:3)(cid:90)(cid:80)(cid:78)(cid:85)(cid:80)(cid:196)(cid:74)(cid:72)(cid:85)(cid:91)(cid:83)(cid:96)(cid:3)(cid:80)(cid:85)(cid:74)(cid:89)(cid:76)(cid:72)(cid:90)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:80)(cid:85)(cid:3)

(cid:92)(cid:90)(cid:21)(cid:3)(cid:48)(cid:187)(cid:84)(cid:3)(cid:74)(cid:86)(cid:85)(cid:196)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:94)(cid:76)(cid:3)(cid:72)(cid:89)(cid:76)(cid:3)(cid:94)(cid:76)(cid:83)(cid:83)(cid:20)(cid:87)(cid:86)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:76)(cid:75)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:91)(cid:79)(cid:89)(cid:86)(cid:92)(cid:78)(cid:79)(cid:3)

(cid:74)(cid:92)(cid:90)(cid:91)(cid:86)(cid:84)(cid:76)(cid:89)(cid:20)(cid:77)(cid:72)(cid:74)(cid:80)(cid:85)(cid:78)(cid:3)(cid:87)(cid:83)(cid:72)(cid:91)(cid:77)(cid:86)(cid:89)(cid:84)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:74)(cid:86)(cid:85)(cid:85)(cid:76)(cid:74)(cid:91)(cid:76)(cid:75)(cid:3)(cid:87)(cid:89)(cid:86)(cid:75)(cid:92)(cid:74)(cid:91)(cid:90)(cid:3)(cid:80)(cid:85)(cid:3)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)

(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:83)(cid:83)(cid:76)(cid:74)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:76)(cid:584)(cid:86)(cid:89)(cid:91)(cid:90)(cid:19)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:94)(cid:80)(cid:83)(cid:83)(cid:3)(cid:73)(cid:76)(cid:74)(cid:86)(cid:84)(cid:76)(cid:3)(cid:72)(cid:85)(cid:3)(cid:76)(cid:93)(cid:76)(cid:85)(cid:3)(cid:90)(cid:91)(cid:89)(cid:86)(cid:85)(cid:78)(cid:76)(cid:89)(cid:3)

(cid:45)(cid:80)(cid:85)(cid:72)(cid:83)(cid:83)(cid:96)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)(cid:91)(cid:79)(cid:72)(cid:85)(cid:82)(cid:3)(cid:96)(cid:86)(cid:92)(cid:19)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:19)(cid:3)(cid:74)(cid:92)(cid:90)(cid:91)(cid:86)(cid:84)(cid:76)(cid:89)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)

(cid:90)(cid:92)(cid:74)(cid:79)(cid:3)(cid:72)(cid:90)(cid:3)(cid:84)(cid:72)(cid:74)(cid:79)(cid:80)(cid:85)(cid:76)(cid:3)(cid:83)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:19)(cid:3)(cid:72)(cid:89)(cid:91)(cid:80)(cid:196)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:80)(cid:85)(cid:91)(cid:76)(cid:83)(cid:83)(cid:80)(cid:78)(cid:76)(cid:85)(cid:74)(cid:76)(cid:19)(cid:3)(cid:48)(cid:86)(cid:59)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:75)(cid:80)(cid:78)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)

(cid:74)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:21)

(cid:74)(cid:86)(cid:84)(cid:84)(cid:76)(cid:89)(cid:74)(cid:76)(cid:3)(cid:74)(cid:72)(cid:87)(cid:72)(cid:73)(cid:80)(cid:83)(cid:80)(cid:91)(cid:80)(cid:76)(cid:90)(cid:21)

(cid:62)(cid:76)(cid:3)(cid:83)(cid:86)(cid:86)(cid:82)(cid:3)(cid:77)(cid:86)(cid:89)(cid:94)(cid:72)(cid:89)(cid:75)(cid:3)(cid:91)(cid:86)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:81)(cid:86)(cid:92)(cid:89)(cid:85)(cid:76)(cid:96)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:96)(cid:86)(cid:92)(cid:3)(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)(cid:72)(cid:79)(cid:76)(cid:72)(cid:75)(cid:21)

(cid:62)(cid:76)(cid:3)(cid:94)(cid:80)(cid:83)(cid:83)(cid:3)(cid:72)(cid:83)(cid:90)(cid:86)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:80)(cid:85)(cid:92)(cid:76)(cid:3)(cid:91)(cid:86)(cid:3)(cid:87)(cid:92)(cid:89)(cid:90)(cid:92)(cid:76)(cid:3)(cid:80)(cid:85)(cid:86)(cid:89)(cid:78)(cid:72)(cid:85)(cid:80)(cid:74)(cid:3)(cid:86)(cid:87)(cid:87)(cid:86)(cid:89)(cid:91)(cid:92)(cid:85)(cid:80)(cid:91)(cid:80)(cid:76)(cid:90)(cid:19)(cid:3)

(cid:87)(cid:72)(cid:89)(cid:91)(cid:80)(cid:74)(cid:92)(cid:83)(cid:72)(cid:89)(cid:83)(cid:96)(cid:3)(cid:91)(cid:79)(cid:86)(cid:90)(cid:76)(cid:3)(cid:72)(cid:75)(cid:81)(cid:72)(cid:74)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:76)(cid:95)(cid:80)(cid:90)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:87)(cid:83)(cid:72)(cid:91)(cid:77)(cid:86)(cid:89)(cid:84)(cid:90)(cid:21)(cid:3)(cid:48)(cid:85)(cid:3)(cid:49)(cid:72)(cid:85)(cid:92)(cid:72)(cid:89)(cid:96)(cid:3)

(cid:58)(cid:80)(cid:85)(cid:74)(cid:76)(cid:89)(cid:76)(cid:83)(cid:96)(cid:19)

(cid:86)(cid:77)(cid:3)(cid:25)(cid:23)(cid:24)(cid:32)(cid:19)(cid:3)(cid:94)(cid:76)(cid:3)(cid:74)(cid:86)(cid:84)(cid:87)(cid:83)(cid:76)(cid:91)(cid:76)(cid:75)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:72)(cid:74)(cid:88)(cid:92)(cid:80)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:86)(cid:77)(cid:3)(cid:41)(cid:76)(cid:83)(cid:72)(cid:85)(cid:78)(cid:76)(cid:89)(cid:19)(cid:3)(cid:72)(cid:3)(cid:83)(cid:76)(cid:72)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)

(cid:93)(cid:76)(cid:79)(cid:80)(cid:74)(cid:83)(cid:76)(cid:3)(cid:94)(cid:72)(cid:90)(cid:79)(cid:3)(cid:76)(cid:88)(cid:92)(cid:80)(cid:87)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:90)(cid:96)(cid:90)(cid:91)(cid:76)(cid:84)(cid:90)(cid:3)(cid:84)(cid:72)(cid:85)(cid:92)(cid:77)(cid:72)(cid:74)(cid:91)(cid:92)(cid:89)(cid:76)(cid:89)(cid:21)(cid:3)(cid:59)(cid:79)(cid:76)

(cid:41)(cid:76)(cid:83)(cid:72)(cid:85)(cid:78)(cid:76)(cid:89)(cid:3)(cid:91)(cid:89)(cid:72)(cid:85)(cid:90)(cid:72)(cid:74)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:89)(cid:76)(cid:197)(cid:76)(cid:74)(cid:91)(cid:90)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:90)(cid:91)(cid:89)(cid:72)(cid:91)(cid:76)(cid:78)(cid:80)(cid:74)(cid:3)

(cid:75)(cid:76)(cid:87)(cid:83)(cid:86)(cid:96)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:74)(cid:72)(cid:87)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:80)(cid:85)(cid:3)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)(cid:91)(cid:79)(cid:72)(cid:91)(cid:3)(cid:86)(cid:584)(cid:76)(cid:89)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:72)(cid:73)(cid:80)(cid:83)(cid:80)(cid:91)(cid:96)(cid:3)(cid:91)(cid:86)(cid:3)(cid:87)(cid:89)(cid:86)(cid:93)(cid:80)(cid:75)(cid:76)(cid:3)

(cid:57)(cid:80)(cid:74)(cid:79)(cid:72)(cid:89)(cid:75)(cid:3)(cid:49)(cid:21)(cid:3)(cid:59)(cid:86)(cid:73)(cid:80)(cid:85)(cid:3)

(cid:90)(cid:92)(cid:90)(cid:91)(cid:72)(cid:80)(cid:85)(cid:72)(cid:73)(cid:83)(cid:76)(cid:19)(cid:3)(cid:87)(cid:89)(cid:86)(cid:196)(cid:91)(cid:72)(cid:73)(cid:83)(cid:76)(cid:3)(cid:78)(cid:89)(cid:86)(cid:94)(cid:91)(cid:79)(cid:19)(cid:3)(cid:94)(cid:79)(cid:80)(cid:83)(cid:76)(cid:3)(cid:74)(cid:89)(cid:76)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)(cid:90)(cid:92)(cid:73)(cid:90)(cid:91)(cid:72)(cid:85)(cid:91)(cid:80)(cid:72)(cid:83)(cid:3)(cid:93)(cid:72)(cid:83)(cid:92)(cid:76)(cid:3)

(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)

(cid:77)(cid:86)(cid:89)(cid:3)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:21)

(cid:52)(cid:72)(cid:89)(cid:74)(cid:79)(cid:3)(cid:25)(cid:24)(cid:19)(cid:3)(cid:25)(cid:23)(cid:24)(cid:32)

UNITED STATTT ES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For fiscal year ended December 31, 2018

Commission File Number: 1-4018
Dover Corporation

(Exact name of registrant as specified in its charter)

e

Delaware
(State or other jurisdiction of
incorporation or organization)

53-0257888
(I.R.S. Employer
Identification No.)

3005 Highland Parkway
Downers Grove, Illinois 60515
(Address of principal executive offices)

o

Registrant's telephone number: (630) 541-1540

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class
Common Stock, par value $1
2.125% Notes due 2020
1.250% Notes due 2026

g
Name of Each Exchange on Which Registered
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange

g

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as d

rr

efined in Rule 405 of the Securities Act. Yes þ No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o No þ

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 þ 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 þ No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not
contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

maller reporting
Indicate by check mark whether the registrant is a large accelerated filer, an a
company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company"
in Rule 12b-2 of the Exchange Act. (Check one):

on-accelerated filer, or a s

ccelerated filer, a n

rr

rr

rr

Large accelerated filer þ

Accelerated filer

ff o

Non-accelerated filer o

Smaller reporting company o
Emerging growth company o

1

If an emerging growth company, iyy ndicate 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 o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant as of the close of business
on June 30, 2018 was $10,776,562,926. The registrant’s closing price as reported on the New York Stock Exchange-Composite
Transactions for June 30, 2018 was $73.20 per share. The number of outstanding shares of the registrant’s common stock as of February 1,
2019 was 144,940,620.

Documents Incorporated by Reference: Part III — Certain Portions of the Proxy Statement for Annual Meeting of Shareholders to be held
on May 2, 2019 (the “2019 Proxy Statement”).

2

Special Note Regarding Forward-Looking Statements

This Annual Report on Form 10-K, especially "Management’s Discussion and Analysis of Financial Condition and Results of
Operations," contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of
1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be
deemed, “forward-looking” statements. Some of these statements may be indicated by words such as “may”, “anticipate”,
“expect”, believe”, “intend”, “guidance”, “estimates”, “suggest”, “will”, “plan”, “should”, “would”, “could”, “forecast” and
other words and terms that use the future tense or have a similar meaning. Forward-looking statements are based on current
expectations and are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are
beyond the Company’s control. Factors that could cause actual results to differ materially from current expectations include,
among other things, general economic conditions and conditions in the particular markets in which we operate, changes in
customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new
products in a cost-effective manner, changes in law, iww ncluding the effect of U.S. tax reform and developments with respect to
trade policy and tariffs, our ability to identify and complete acquisitions and integrate and realize synergies from newly
acquired businesses, the impact of interest rate and currency exchange rate fluctuations, capital allocation plans and changes
in those plans, including with respect to dividends, share repurchases, investments in research and development, capital
expenditures and acquisitions, whether the strategic benefits of the Apergy separation can be achieved, our ability to derive
expected benefits from restructuring, productivity initiatives and other cost reduction actions, changes in material costs or the
supply of input materials, the impact of legal compliance risks and litigation, including with respect to product quality and
safety, cyy ybersecurity and privacy, ayy nd our ability to capture and protect intellectual property rights. Certain of these risks and
uncertainties are described in more detail in Item 1A. "Risk Factors" of this Annual Report on Form 10-K. The Company
undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future
events or otherwise.

In this Annual Report on Form 10-K, we refer to measures used by management to evaluate performance, including a number
of financial measures that are not defined under accounting principles generally accepted in the United States of America
("GAAP"). We include reconciliations to provide more details on the use and derivation of these financial measures. Please
see "Non-GAAP Disclosures" at the end of Item 7 for further detail.

ff

3

5
15
20
21
21
21
22

23
27
28
52
53
106
106
106

109
110

111
112
112

112
116
117

PART I

TABLE OF CONTENTS

Business

Item 1.
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2.
Item 3.
Item 4.

Properties
Legal Proceedings
Mine Safety Disclosures
Executive Officers of the Registrant

PART II

Item 5.

Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of
Equity Securities
Selected Financial Data
Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 6.
Item 7.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Financial Statements and Supplementary Data
Item 8.
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A. Controls and Procedures
Item 9B. Other Information

PART III

Item 10.
Item 11.
Item 12.

Item 13.
Item 14.

Directors and Executive Officers and Corporate Governance
Executive Compensation
Security Ownership of certain Beneficial Owners and Management and Related Shareholder
Matters
Certain Relationships and Related Transactions and Director Independence
Principal Accountant Fees and Services

PART IV

Item 15.
Item 16.
SIGNATURES

Exhibits, Financial Statement Schedules
Summary

4

ITEM 1. BUSINESS

Overview

PART I

Dover Corporation is a diversified global manufacturer delivering innovative equipment and components, specialty systems,
consumable supplies, software and digital solutions and support services through three operating segments: Engineered
Systems, Fluids, and Refrigeration & Food Equipment. The Company's entrepreneurial business model encourages, promotes
and fosters deep customer engagement and collaboration, which has led to Dover's well-established and valued reputation for
providing superior customer service and industry-leading product innovation. Unless the context indicates otherwise,
references herein to "Dover," "the Company," and words such as "we," "us," or "our" include Dover Corporation and its
consolidated subsidiaries. Dover was incorporated in 1947 in the State of Delaware and became a publicly traded company in
1955. Dover is headquartered in Downers Grove, Illinois and currently employs approximately 24,000 people worldwide.

Dover's three operating segments are structured around our key end markets and are designed to support focused growth
strategies. Our segment structure also allows us to leverage Dover's scale and channel presence while capitalizing on
productivity initiatives. Dover's three operating segments are as follows:

•

•

•

Our Engineered Systems segment is comprised of two platforms, Printing & Identification and Industrials and is
focused on the design, manufacture and service of critical equipment, consumables and components serving the fast-
moving consumer goods, digital textile printing, vehicle service, environmental solutions and industrial end markets.

Our Fluids segment, serving the Fueling & Transport, Pumps, and Process Solutions end markets, is focused on the
safe handling of critical fluids across the retail fueling, chemical, hygienic, oil and gas and industrial end markets.

TT

Our Refrigeration & Food Equipment segment is a provider of innovative and energy efficient equipment and
systems serving the commercial refrigeration and food equipment end markets.

Spin-off of Energy Businesses

On May 9, 2018, we completed the spin-off off
f Apergy Corporation ("Apergy") to our shareholders. Apergy holds the entities
conducting our former upstream energy businesses previously included in our Energy segment. The transaction was
completed through the pro rata distribution of 100% of the common stock of Apergy to Dover's shareholders of record as of
the close of business on April 30, 2018. Each Dover shareholder received one share of Apergy common stock for every two
shares of Dover common stock held as of the record date. For more details, see Note 2 — Spin-off off
f Apergy Corporation in
the Consolidated Financial Statements in Item 8 of this Form 10-K.

Management Philosophy

Dover is committed to generating shareholder value through a combination of sustained long-term profitable growth,
operational excellence and superior free cash-flow generation. We foster an operating culture with high ethical standards that
values accountability, ryy igor, trust, respect and open communications, designed to allow individual growth and operational
effectiveness. Dover seeks to be a leader in our end markets as measured by market share, customer satisfaction, growth, and
return on invested capital. Our operating structure of three business segments allows for focused acquisition activity,
accelerates opportunities to identify and capture operating synergies, including global sourcing and supply chain integration,
shared services, and manufacturing, and advances the development of our executive talent. Our segment and executive
management teams set strategic direction, initiatives and goals, provide oversight of strategy execution and achievement of
these goals for our operating companies, and with oversight from our Board of Directors, make capital allocation decisions,
including organic investment initiatives, major capital projects, acquisitions and the return of capital to our shareholders.

We are also committed to creating sustainable business practices that protect the environment, and through the development
of products that help our customers meet their sustainability goals. We have accelerated our efforts and processes around
innovation, focusing on technologies which create tangible value for our customers. Each of Dover’s segments is dedicated to
this important initiative. In our Refrigeration & Food Equipment segment, SWEP, a mPP
anufacturer of brazed plate heat
exchangers, focuses on the conversion to sustainable and renewable energy usage in heat transfer. Their Passive Cooling

5

Unit, for example, uses natural cooling from the ground or groundwater to remove excess heat from interiors with the process
requiring only a small amount of electricity for the circulation pumps which make this solution both very energy efficient and
cost effective. Over the last 7 years, Markem-Imaje, a marking and coding business within Dover’s Engineered Systems
segment, has reduced its carbon emissions by 40% and produced 18% less waste by implementing an Environmental, Health
and Safety program. Lastly, in D
over’s Fluids segment, OPW, a lWW eader in fluid handling and car wash equipment, released the
14 Series fueling nozzle family that features patented and patent-pending technology to prevent dripping of excess fuel while
motorists refuel their vehicles.

yy

Company Goals

We are committed to driving shareholder returns through three key objectives. First, we are committed to achieving organic
sales growth above that of gross domestic product (or 3% to 5% annually on average) over a long-term business cycle, absent
prolonged adverse economic conditions, complemented by growth through strategic acquisitions. Second, we continue to
focus on improving returns on capital and segment margins through effective cost management and productivity initiatives,
including supply chain activities, targeted, thoughtful restructuring activities, strategic pricing and portfolio management.
Third, we aim to generate free cash flow as a percentage of sales of approximately 8-12% through strong earnings
performance, productivity improvements and active working capital management. Dover’s value-creation strategy is
a prudent approach to financial leverage, and a disciplined approach to capital
supported by a financial policy that includes
allocation that allows for a balance between reinvestment and return of capital to shareholders. We support achievement of
these goals by (1) aligning management compensation with financial objectives, (2) executing on well-defined and actively
managed merger and acquisition processes and (3) investing in talent development programs.

ff

Business Strategy

To achieve our goals, we are focused on executing the following three pillars of Dover’s business strategy:

Capturing growth potential in our key end markets and adjacencies

Dover’s three business segments focus on building enduring competitive advantages and leadership positions in end markets
that are positioned for future growth. We believe that our businesses are among the top suppliers in most markets and niches
that we serve (as defined by customer applications, geographies or products), which positions us well to capture future
growth in such markets. We capitalize on our engineering, technology and design expertise and maintain an intense focus on
meeting the needs of our customers and adding significant value to their operations through superior product performance,
safety and reliability and a commitment to after sales and service support. We cultivate and maintain an entrepreneurial
culture and continuously innovate to address our customers’ needs to help them win in the markets they serve.

nergy efficiency, cyy

In particular, our businesses are well-positioned to capitalize on growing industrial manufacturing and trade volumes,
continuous productivity improvement, adoption of digital
technologies and the Industrial Internet of Things (IIoT),
onsumer product safety and growth of the middle class and consumption in
sustainability and safety, eyy
emerging economies. Our Engineered Systems segment combines its engineering capabilities, unique product advantages and
niche applications expertise to address market needs and requirements including conversion to digital textile printing,
productivity solutions, sustainability, cyy
onsumer product safety and growth in emerging economies. Our Fluids segment is
focused on accelerating growth within the chemical/plastics, retail fueling, fluid transfer, industrial and hygienic markets as
well as globalizing brands across geographies while expanding sales channels and engineering support. Specifically, we focus
on capturing growth in the retail fueling, hygienic and pharma and polymers/plastics markets. Our Refrigeration & Food
Equipment segment is responding to our customers’ demand for increased energy efficiency and sustainability and unique
merchandising solutions with innovative new products.

We aim to grow by making organic investments in research and development, developing new products and technologies,
expanding our geographic coverage, as well as by pursuing disciplined strategic acquisitions that enhance our portfolio and
position Dover for long-term growth. We continually evaluate how our assets and capabilities can position Dover to grow in
to our core businesses (for example, new applications, geographies, product segments or adjacent
markets adjacent
technologies) where Dover can be advantaged.

6

Improving profitability and return on invested capital

i

l

i

i

i
i i

i bl
d

h
enerating sustainable returns on invested capital well above the cost of capital across all of our
l
l
We
are committedd to g
i
businesses.
argin and return on capital. We are
continually evaluate and pursue opportunities to improve efficiency, myy
ll
businesses. We
e and capturing the benefits of common ownership across our businesses.
intensely foc
intensely focused on driving operational excellenc
We have implemented numerous productivity initiatives, such as supply chain integration management, shared service centers
and lean manufacturing principles, to maximize our efficiency as well as workplace safety initiatives to help ensure the health
and welfare of our employees. Our businesses place strong emphasis on continual product quality improvement and new
product development to better serve customers and to facilitate expansion into new product and geographic markets. Further,
we continue to make significant investments in talent development, especially in the area of operational management, and
recognize that the growth and development of our employees is essential for our continued success.

ll b

ll
l

ffi i

d
i

f
d

f

i

i

i

In 2018, we launched a margin expansion program, designed to reduce our selling, general and administrative cost base and
rationalize our manufacturing and supply chain footprint across the portfolio. In prior years, we have invested in our global
supply chain organization to capitalize on Dover’s scale in procurement, and in Dover Business Services shared service
centers to provide important transactional and value-added services to our operating companies in the areas of finance,
information technology and human resources. Our shared service model allows us to leverage scale across Dover, increase
process efficiencies through technology and specialization and reduce risk through centralized controls. Our shared service
centers serve our operating companies by freeing resources normally dedicated to transactional services to allow those
resources to focus on customers, markets and product excellence.

ff
Additionally, we f
ocus on improving margins and returns by rigorously capturing synergies from our acquisitions and
providing best-in-class corporate support and services through a lean corporate center.

yy

Disciplined capital allocation

ff

Our businesses generate annual free cash flow of approximately 8-12% of revenue. We are focused on the most efficient
allocation of our capital to maximize returns on investment. To do this, we prioritize organic reinvestment to grow and
strengthen our existing businesses. We plan to make average annual investments in capital spending of approximately 2% -
4% of revenue with a focus on internal projects designed to expand markets, develop products and improve productivity
. We
also seek to deploy capital in disciplined acquisitions in our key end markets which include industrials, printing &
identification, pumps, hygienic & pharma, fueling & transport, and process solutions markets. Dover focuses primarily on
bolt-on acquisitions, applying strict selection criteria of market attractiveness (including growth, maturity, pyy erformance-based
competition), business fit (including sustained leading position, revenue visibility, fyy avorable customer value-add versus
switching cost or risk) and financial return profile (accretive growth and margins, double-digit return on capital). Finally, we
have consistently returned cash to shareholders by paying dividends, which have increased annually over each of the last 63
years. We also undertake opportunistic share repurchases as part of our capital allocation strategy, ayy nd completed $1 billion of
share repurchases in 2018. We employ a prudent financial policy to support our capital allocation strategy, wyy
hich includes
maintaining an investment grade credit rating.

yy

ff

Portfolio Development

Acquisitions

Our acquisition program has two key elements. As a first priority
eek to acquire attractive add-on businesses with a
yy
, we s
strong fit that enhance our existing franchises either by increasing their reach and customer access, by broadening their
product mix or by enhancing technological capability and customer value-add. Second, in the right circumstances, we may
strategically pursue larger, stand-alone businesses that have the potential to either complement our existing businesses or
allow us to pursue innovative technologies within our key growth spaces. With all our acquisitions, we seek businesses that
have an accretive margin and a strong organic growth profile, offer significant synergy opportunities and the potential to
generate double-digit return on capital 3-5 years after the acquisition is completed.

ff

7

Over the past three years (2016 through 2018), we have spent approximately $1.7 billion to purchase 10 businesses. During
2018, we acquired two businesses for an aggregate consideration of $68.6 million, net of cash acquired. Consistent with our
acquisition program, we acquired these businesses to complement and expand upon existing operations within the Process
Solutions and Food Equipment end markets. During 2017, we acquired two businesses for an aggregate consideration of
$32.9 million, net of cash acquired and including contingent consideration. We acquired these businesses to complement and
expand upon existing operations within the Printing and Identification platform. During 2016, we acquired six businesses for
an aggregate purchase price of $1.6 billion, net of cash acquired. Four of these businesses– Tokheim Group S.A.S., Fairbanks
Environmental LTD, ProGauge and Wayne Fueling Systems Ltd. expanded our Fluids segment's retail fueling portfolio and
two of these businesses – Alliance Wireless Technologies, Inc. and Ravaglioli S.p.A. Group complemented the Industrials
platform within our Engineered Systems segment. For more details regarding acquisitions completed over the past three
years, see Note 4 — Acquisitions in the Consolidated Financial Statements in Item 8 of this Form 10-K.

Our future growth depends in large part on finding and acquiring successful businesses that expand the scope of our offering
and make us an even more important supplier to our customers. While we expect to generate annual organic growth of 3% -
5% over a long-term business cycle absent extraordinary adverse economic conditions, our success in consistently growing
the portfolio is also dependent on the ability to acquire and integrate businesses successfully within our existing structure. To
track post-merger integration and accountability, we u
tilize an internal scorecard and defined processes to help ensure
expected synergies are realized and value is created.

yy

Dispositions

yy

ay also sell or divest some of our businesses based on changes in specific market outlook, structural
Occasionally, we m
changes in financial performance, value-creation potential, or for other strategic considerations, which may include an effort
to reduce our exposure to cyclical markets or focus on our higher margin growth spaces. We also recognize that some smaller
niche businesses in Dover’s portfolio may have a greater value-creation potential if owned by another parent with a larger
presence and focus on a given niche. We pragmatically consider such opportunities as part of our ongoing portfolio
management and review processes and execute divestitures if the value created is determined to be at an appropriate premium
to the value of such business to Dover and allows Dover shareholders to participate in the future value-creation potential from
a change in ownership.

During the past three years (2016 through 2018) we have sold businesses for aggregate cash consideration of $583.0 million.
During 2018, there were no other material dispositions aside from the spin-off off
f Apergy as previously discussed. The
financial position and results of operations for Apergy have been presented as discontinued operations for all periods
presented. During 2017, we completed the sale of Performance Motorsports International and the consumer and industrial
winch business of Warn Industries, within the Engineered Systems segment, as well as other smaller divestitures. During
2016, we completed the sale of Texas Hydraulics and Tipper Tie, within the Engineered Systems and Refrigeration & Food
Equipment segments, respectively. The disposal in 2017 and 2016 did not represent strategic shifts in operations and,
therefore, did not qualify for presentation as discontinued operations. For more details, see Note 5 — Discontinued and
Disposed Operations in the Consolidated Financial Statements in Item 8 of this Form 10-K.

Business Segments

yy

urrently operate through three business segments that are aligned with the key end markets they
As noted previously, we c
serve and comprise our operating and reportable segments: Engineered Systems, Fluids, and Refrigeration & Food
Equipment. For financial information about our segments and geographic areas, see Note 18 — Segment Information in the
Consolidated Financial Statements in Item 8 of this Form 10-K.

Engineered Systems

Our Engineered Systems segment is focused on the design, manufacture and service of critical equipment, consumables and
components across its two platforms, the Printing & Identification and Industrials, as described below.

•

Printing & Identification
– Our Printing & Identification businesses are worldwide suppliers of precision marking
II
and coding, digital textile printing, soldering and dispensing equipment and related consumables and services. Our
Printing & Identification platform primarily designs and manufactures equipment and consumables used for printing
variable information (such as bar coding of dates and serial numbers) on fast-moving consumer goods, capitalizing

8

on expanding food and product safety requirements and growth in emerging markets. In addition, our businesses
serving the textile market are benefiting from a significant shift from analog to digital printing, resulting from
shorter runs and more complex fashion designs, as well as increasing environmental standards.

•

– Our Industrials businesses provide a wide range of products and services which have broad customer
II
Industrials
applications across a number of markets including; vehicle service, environmental solutions, industrial automation,
defense and telecommunications, and winch and hoist.

Our businesses serving the global vehicle service market provide products and services used primarily in vehicle
repair and maintenance, including light and heavy-duty vehicle lifts, wheel service equipment, vehicle diagnostics
and vehicle collision repair solutions. Products are sold to national dealership networks, original equipment
manufacturers ("OEM"), national multi-shop operators ("MSO") groups, independent repair and service shops, and
large national accounts and government/transit customers through a network of distributors and channel partners.

Our businesses serving the environmental solutions markets provide products and digital services for the refuse
collection industry and for on-site processing and compaction of trash and recyclable materials. Products are sold to
municipal customers, national accounts and independent waste haulers through a network of distributors and directly
in certain geographic areas.

The businesses in the industrial automation market provide a wide range of modular automation components
including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units,
glove ports and manipulators, as well as end-of-arm robotic grippers, slides and end effectors. These products serve
a very broad market including food processing, packaging, paper processing, medical, electronic, automotive,
nuclear and general industrial products.

Engineered Systems' products are manufactured primarily in the United States, Europe and Asia and are sold throughout the
world directly and through a network of distributors.

Fluids
Our Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, hygienic, oil and gas
nd environmental sustainability through
ff
fficiency
and industrial end markets. We strive to optimize safety, eyy
innovative fluid handling and information management solutions. The segment serves three broad global end markets:
Fueling & Transport, Pumps, and Process Solutions.

, ryy eliability, ayy

TT

•

•

•

TT

– Our businesses provide fully integrated fluid handling solutions from refineries and
Fueling & Transport
chemical-processing plants through point-to-point transfers, transportation, and delivery to the final point of
consumption. Within this framework, we have a very strong presence in the retail and commercial fueling markets,
where we provide fuel dispensers, payment systems, hanging hardware and underground containment systems, as
well as monitoring and optimization software.

ff

Pumps – Our businesses manufacture pumps that are used to transfer liquid and bulk products and are sold to a wide
variety of markets, including the refined fuels, liquefied petroleum gas ("LPG"), food/sanitary, tyy ransportation and
chemical process industries. The pumps include positive displacement and centrifugal pumps that are used in
demanding and specialized fluid transfer process applications.
Within this framework, we also have a focus on
pumps and connectors for use in a variety of bio-processing, medical and specialty applications.

ff

ff

Process Solutions – Our businesses specialize in the manufacturing of pumps, filtration systems, pelletizing
equipment, compressors and bearings for use in the chemical, polymer, power generation, oil and gas, industrial, and
marine industries. These highly engineered products provide unique and proprietary solutions to solve customer
needs around the world.

Fluids' products are manufactured primarily in the United States, Europe, China, Mexico and Brazil and are sold throughout
the world directly and through a network of distributors and OEMs.

9

FF
Refrigeration & Food Equipment

Our Refrigeration & Food Equipment segment is a provider of innovative and energy-efficient equipment and systems
serving the commercial refrigeration and food equipment end markets.

•

•

Refrigeration – Our businesses manufacture refrigeration systems, refrigeration display cases, specialty glass,
commercial glass refrigerator and freezer doors and brazed plate heat exchangers used for industrial and climate
control.

Food Equipment – Our businesses manufacture electrical distribution products and engineering services, commercial
food service equipment, continuous motion wash systems, cook-chill production systems, custom food storage and
preparation products, kitchen ventilation systems, conveyer systems and beverage can-making machinery.

The majority of the refrigeration/food systems and machinery that are manufactured or serviced by the Refrigeration & Food
Equipment segment are used by the retail food industry, iyy ncluding supermarkets, “big-box” retail and convenience stores, the
commercial/industrial refrigeration industry, iyy nstitutional and commercial food service and food production markets and
beverage can-making industries. Refrigeration & Food Equipment's products are manufactured primarily in North America,
Europe and Asia and are sold globally, dyy irectly and through a network of distributors.

ff

Raw Materials

We use a wide variety of raw materials, primarily metals and semi-processed or finished components, which are generally
available from a number of sources. As a result, shortages or the loss of any single supplier have not had, and are not likely to
have, a material impact on operating profits. While the required raw materials are generally available, commodity pricing can
be volatile, particularly for various grades of steel, copper
, aluminum and select other commodities. Although cost increases
in commodities may be recovered through increased prices to customers, our operating results are exposed to such
fluctuations. We attempt to control such costs through fixed-price contracts with suppliers and various other programs, such
as our global supply chain activities.

ff

Research and Development

Our businesses invest to develop innovative products, as well as to upgrade and improve existing products to satisfy customer
needs, including demand for energy-efficient products designed to help customers meet sustainability goals, expand revenue
opportunities domestically and internationally, myy
aintain or extend competitive advantages, improve product reliability and
reduce production costs.

Our Engineered Systems segment expends significant effort in research and development because the rate of product
development by their customers is often quite high. Our businesses that develop product identification and printing
equipment believe that their customers expect a continuing rate of product innovation, and performance and total cost of
ownership improvement. The result has been that product life cycles in these markets generally average less than five years
with meaningful sales price reductions over that time period.

Our other segments contain many businesses that are also involved in important product improvement initiatives. These
businesses concentrate on working closely with customers on specific applications, expanding product lines and market
applications and continuously improving manufacturing processes. Most of these businesses experience a much more
moderate rate of change in their markets and products than is generally experienced by the Engineered Systems segment.

In addition to product innovation, we are also investing in developing digital technologies. In 2018, we opened our new
digital labs center in the greater Boston area. The facility serves as the hub for our digital strategy and platform, and as a
research and development center for our Markem-Imaje business unit which is part of our Engineered Systems segment. We
believe that the digital labs center will enhance the effectiveness of our products and fuel our commercial growth strategy by
helping us make progress on digitization opportunities and by providing machine learning, artificial intelligence, IoT and
digital commerce capabilities. Our businesses pursue digital strategies based on customer needs and will now be able to
leverage cross-company capabilities developed at the digital labs center. For example, with the support of the digital labs
center, Hydro, which manufacturers chemical injecting, proportioning, dispensing and medicating equipment within our
Fluids segment, launched Hydro Connect in 2018. Hydro Connect is a cloud-based IIoT platform that gives end users

10

increased visibility into their operations, optimizes production, reduces costs and increases customer satisfaction. Building on
this momentum, we launched a digital initiative in 2018 to help our businesses increase sales and further improve customer
satisfaction through digital technology, syy tarting with Dover Food Retail within our Refrigeration & Food Equipment segment.

Intellectual Property and Intangible Assets

Our businesses own many patents, trademarks, licenses and other forms of intellectual property, wyy
hich have been acquired
over a number of years and, to the extent relevant, expire at various times over a number of years. A large portion of our
businesses’ intellectual property consists of patents, unpatented technology and proprietary information constituting trade
secrets that we seek to protect in various ways, including confidentiality agreements with employees and suppliers where
appropriate. In addition, a significant portion of our intangible assets relate to customer relationships. While our intellectual
property and customer relationships are important to our success, the loss or expiration of any of these rights or relationships,
or any group of related rights or relationships, is not likely to materially affect our results on a consolidated basis. We believe
that our commitment to continuous engineering improvements, new product development and improved manufacturing
techniques, as well as strong sales, marketing and service efforts, are significant to our general leadership positions in the
niche markets we serve.

Customers

We serve thousands of customers, none of which accounted for more than 10% of our consolidated revenue in 2018. Given
our diversity of served markets, customer concentrations are not significant. Businesses supplying the environmental
utomotive and commercial refrigeration industries tend to deal with a few large
solutions, agricultural, defense, energy, ayy
customers that are significant within those industries. This also tends to be true for businesses supplying the power generation
and chemical industries. In the other markets served, there is usually a much lower concentration of customers, particularly
where our companies provide a substantial number of products and services applicable to a broad range of end-use
applications.

ff

Seasonality

In general, our businesses, while not strongly seasonal, tend to have stronger revenue in the second and third quarters,
particularly those serving the transportation, construction, environmental solutions, commercial refrigeration and food service
markets. Our businesses serving the retail fueling market tend to increase sequentially through the year based on the historical
purchasing patterns of their customers. Our businesses serving the major equipment markets, such as power generation,
chemical and processing industries, have longer lead times geared to seasonal, commercial, or consumer demands and
customers in these markets tend to delay or accelerate product ordering and delivery to coincide with those market trends that
tend to moderate the aforementioned seasonality patterns.

Backlog

Backlog is more relevant to our businesses that produce larger and more sophisticated machines or have long-term contracts,
primarily for the markets within our Fluids and Refrigeration & Food Equipment segments. Our total backlog relating to our
businesses as of December 31, 2018 and 2017 was $1.4 billion and $1.2 billion, respectively.

11

Competition

Our competitive environment is complex because of the wide diversity of our products manufactured and the markets served.
In general, most of our businesses are market leaders that compete with only a few companies, and the key competitive
factors are customer service, product quality, price and innovation. However, as we become increasingly global, we are
exposed to more competition. A summary of our key competitors by end market within each of our segments follows:

Segment
Engineered Systems

End Market

Printing & Identification

Industrials

Fluids

Fueling & Transport

Pumps

Process Solutions

Refrigeration

Food Equipment

Refrigeration & Food
Equipment

International

Key Competitors
Danaher Corp. (Videojet), Brother Industries, Ltd.
(Domino Printing), Electronics for Imaging,
Konica Minolta

Oshkosh Corp. (McNeilus), Tünkers
Maschinenbau GmbH, Snap-On Inc. (Challenger
Lifts), Labrie Enviroquip Group, PACCAR
(Braden), Fortive (Hennessey Industries, Inc.) and
numerous others

Fortive (Gilbarco Veeder-Root), Tatsuno,
Verifone, Franklin Electric, Elaflex, Gardner
Denver, Inc. (Emco Wheaton), Dixon Valve &
Coupling Company, Salco, Washtec AG

IDEX Corporation (Viking), Ingersoll Rand, ITT,
SPX Flow Inc. (Waukesha), Accudyne Industries
(Milton Roy), Nordson Corporation, Kingsbury,
Seko, Ecolab, Dosatron, Millipore, Danaher
Corporation (Pall)
Kingsbury, EnPro Industries (Compressor
Products International, Garlock), Hoerbiger
Holdings AG, Miba AG, Hillenbrand Inc.
(Coperion), Nordson Corporation

Panasonic (Hussman Corp.), Lennox International
(Kysor/Warren), Alfa Laval
Welbilt Corp, Illinois Tool Works, Middleby

Consistent with our strategic focus on positioning our businesses for growth, we continue to increase our revenue in
international markets, particularly in developing economies in Asia, the Middle East, Eastern Europe and South America.

Most of our non-U.S. subsidiaries and affiliates are currently based in France, Germany,
the Netherlands, Sweden,
Switzerland, the United Kingdom, and other locations including Australia, Canada, China, Malaysia, India, Mexico, Brazil,
Eastern Europe and the Middle East.

The following table shows annual revenue derived from customers outside the U.S. as a percentage of total annual revenue
for each of the last three years, by segment and in total:

% Non-U.S. Revenue by Segment
Years Ended December 31,
2017

2016

2018

Engineered Systems
Fluids
Refrigeration & Food Equipment
Total percentage of revenue derived from customers outside of the United States

50 %
53 %
38 %
48 %

49 %
52 %
34 %
46 %

46 %
53 %
32 %
45 %

Our international operations are subject to certain risks, such as price and exchange rate fluctuations and non-U.S.
governmental restrictions, which are discussed further in Item 1A. "Risk Factors." For additional details regarding our non-
U.S. revenue and the geographic allocation of the assets of our continuing operations, see Note 18 — Segment Information to
the Consolidated Financial Statements in Item 8 of this Form 10-K.

12

Environmental Matters

Sustainability

We are committed to creating economic value for shareholders by developing products designed to help our customers meet
their sustainability goals in response to evolving regulatory and environmental standards. We believe that sustainability-
driven innovation presents a significant growth opportunity while contributing positively to enhanced resource efficiency and
reduced waste. Accordingly, oyy
ver the past several years, we have accelerated our efforts and processes around innovation,
focusing on technologies that create tangible value for our customers. Each of Dover’s segments is dedicated to this initiative.
For example, in our Refrigeration & Food Equipment segment, SWEP, a mPP
anufacturer of brazed plate heat exchangers, has
facilitated its customers’ conversion to more sustainable and renewable energy usage through heat transfer technology.
SWEP’s Passive Cooling Unit uses natural cooling from the ground or groundwater to remove excess heat from interiors. The
process requires only a small amount of electricity for circulation pumps which makes this solution both energy efficient and
cost effective. Over the last seven years, Markem-Imaje, a marking and coding business within our Engineered Systems
segment, has reduced its carbon emissions by 40% and produced 18% less waste by implementing an Environmental, Health
and Safety program. Lastly, in o
ur Fluids segment, OPW, a lWW eader in fluid handling and car wash equipment, released the 14
Series fueling nozzle family that features patented and patent-pending technology to prevent dripping of excess fuel while
motorists refuel their vehicles.

yy

ff

We are also committed to fostering sustainable business practices across our businesses in order to reduce greenhouse gas
emissions and energy consumption. In 2010, in response to our concerns around global sustainability, we d
eveloped and
implemented a process to conduct an inventory of our greenhouse gas emissions. Since then, we have evaluated our climate
change risks and opportunities, as well as developed an energy and climate change strategy that includes goals, objectives and
related projects for reducing energy use and greenhouse gas emissions. To further promote our sustainability efforts, we have
committed to reducing our overall energy and greenhouse gas intensity indexed to net revenue by 20% from 2010 to 2020.
We are near our goal for reducing overall energy intensity and have surpassed our goal for reducing greenhouse gas intensity.
We believe that our focus on sustainability results in enhanced efficiency in our operations, which reduces costs, improves
margins and helps us achieve operational excellence. We will continue to work proactively to reduce energy usage and carbon
emissions amidst acquisition and business growth. We have also participated as a voluntary respondent in the Carbon
Disclosure Project since 2010 and have maintained our scoring range since we began reporting.

yy

All of our segments assess the energy efficiencies related to their operations and the opportunities associated with the use of
their products and services by customers. In some instances, our businesses may be able to help customers reduce energy use
and greenhouse gas emissions. Increased demand for energy-efficient products based on a variety of drivers could result in
increased sales for a number of our businesses.

Other Matters

Our operations are governed by a variety of international, national, state and local environmental laws. We are committed to
continued compliance and believe our operations generally are in substantial compliance with these laws. In a few instances,
particular plants and businesses have been the subject of administrative and legal proceedings with governmental agencies or
private parties relating to the discharge or potential discharge of regulated substances. Where necessary, tyy hese matters have
been addressed with specific consent orders to achieve compliance.

ff

There have been no material effects upon our earnings and competitive position resulting from our compliance with laws or
regulations enacted or adopted relating to the protection of the environment. We are aware of a number of existing or
upcoming regulatory initiatives intended to reduce emissions in geographies where our manufacturing and warehouse/
distribution facilities are located and have evaluated the potential impact of these regulations on our businesses. We anticipate
that direct impacts from regulatory actions will not be significant in the short- to medium-term. We eWW xpect the regulatory
impacts associated with climate change regulation would be primarily indirect and would result in "pass through" costs from
energy suppliers, suppliers of raw materials and other services related to our operations.

Employees

We had approximately 24,000 employees as of December 31, 2018.

13

Other Information

We make available free of charge through the "Investor Information" link on our website, www.dovercorporation.com, our
annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to these
reports. We post each of these reports on the website as soon as reasonably practicable after the report is filed with the
Securities and Exchange Commission. The information on our website is not incorporated into this Form 10-K.

14

ITEM 1A. RISK FACTORS

The risk factors discussed in this section should be considered together with information included elsewhere in this
Form 10-K and should not be considered the only risks to which we are exposed. In general, we are subject to the same
general risks and uncertainties that impact many other industrial companies such as general economic, industry and/or
market conditions and growth rates; the impact of natural disasters and their effect on global markets; and changes in laws
or accounting rules. Additional risks and uncertainties not currently known to us or that we currently believe are
immaterial also may impair our business, including our results of operations, liquidity and financial condition.

•

Our results may be impacted by current domestic and international economic conditions and uncertainties.

Our businesses may be adversely affected by disruptions in the financial markets or declines in economic activity
both domestically and internationally in those countries in which we operate. These circumstances will also impact
our suppliers and customers in various ways which could have an impact on our business operations, particularly if
global credit markets are not operating efficiently and effectively to support industrial commerce.

Negative changes in worldwide economic and capital market conditions are beyond our control, are highly
unpredictable and can have an adverse effect on our consolidated results of operations, financial condition, cash flows
and cost of capital.

• We aWW re subject to risks relating to our existing international operations and expansion into new geographical

markets.

ere derived outside the United
Approximately 48% and 46% of our revenues for 2018 and 2017, respectively, wyy
States. We continue to focus on global markets as part of our overall growth strategy and expect sales from outside
the United States to continue to represent a significant portion of our revenues. Our international operations and our
global expansion strategy are subject to general risks related to such operations, including:

o

o

o

o

o

o

o

o

o

o

o

political, social and economic instability and disruptions;

government export controls, economic sanctions, embargoes or trade restrictions;

the imposition of duties and tariffs and other trade barriers;

limitations on ownership and dividend of earnings;

transportation delays and interruptions;

labor unrest and current and changing regulatory environments;

increased compliance costs, including costs associated with disclosure requirements and related due
diligence;

the impact of loss of a single-source manufacturing facility;

difficulties in staffing and managing multi-national operations;

limitations on our ability to enforce legal rights and remedies; and

access to or control of networks and confidential information due to local government controls and
vulnerability of local networks to cyber risks.

If we are unable to successfully manage the risks associated with expanding our global business or adequately
manage operational risks of our existing international operations, the risks could have a material adverse effect on our
growth in geographic markets, our reputation, our consolidated results of operations, financial position and cash
flows.

•

Our exposure to exchange rate fluctuations on cross-border transactions and the translation of local currency
results into U.S. dollars could negatively impact our results of operations.

We conduct business through our subsidiaries in many different countries, and fluctuations in currency exchange rates
could have a significant impact on our reported consolidated results of operations, financial condition and cash flows,
which are presented in U.S. dollars. Cross-border transactions, both with external parties and intercompany
relationships, result in increased exposure to foreign exchange effects. Accordingly, syy ignificant changes in currency
exchange rates, particularly the Euro, Chinese Renminbi (Yuan), Swedish krona, Pound Sterling, Indian rupee,

15

Singapore dollar, Danish krone, and Canadian dollar, could cause fluctuations in the reported results of our
businesses’ operations that could negatively affect our results of operations. Additionally, tyy he strengthening of certain
currencies such as the Euro and U.S. dollar potentially exposes us to competitive threats from lower cost producers in
other countries. Our sales are translated into U.S. dollars for reporting purposes. The strengthening of the U.S. dollar
could result in unfavorable translation effects as the results of foreign locations are translated into U.S. dollars.

•

II
Increasing product/service and price competition by international and domestic competitors, including new
entrants, and our inability to introduce new and competitive products could cause our businesses to generate lower
revenue, operating profits and cash flows.

is complex because of the wide diversity of the products that our businesses
Our competitive environment
manufacture and the markets they serve. In general, most of our businesses compete with only a few companies. Our
ability to compete effectively depends on how successfully we anticipate and respond to various competitive factors,
including new products, digital solutions and support services that may be introduced by competitors, changes in
customer preferences, new business models and technologies and pricing pressures. If our businesses are unable to
anticipate their competitors’ developments or identify customer needs and preferences on a timely basis, or
successfully introduce new products, digital solutions and support services in response to such competitive factors,
they could lose customers to competitors. If our businesses do not compete effectively, we m
ay experience lower
revenue, operating profits and cash flows.

yy

ff

•

Our operating results depend in part on the timely development and commercialization, and customer acceptance,
of new and enhanced products, digital solutions and support services based on technological innovation.

The success of new and improved products, digital solutions and support services depends on their initial and
continued acceptance by our customers. Certain of our businesses sell in markets that are characterized by rapid
technological changes, frequent new product introductions, changing industry standards and corresponding shifts in
customer demand, which may result in unpredictable product transitions, shortened life cycles and increased
importance of being first to market. Failure to correctly identify and predict customer needs and preferences, to
deliver high quality, iyy nnovative and competitive products to the market, to adequately protect our intellectual property
rights or to acquire rights to third-party technologies and to stimulate customer demand for, and convince customers
to adopt, new products, digital solutions and support services could adversely affect our consolidated results of
operations, financial condition and cash flows. In addition, we may experience difficulties or delays in the research,
development, production or marketing of new products, digital solutions and support services which may prevent us
from recouping or realizing a return on the investments required to continue to bring new products and services to
market.

•

NN
New tariffs have resulted in increased prices and could adversely affect our consolidated results of operations,
financial position and cash flows.

Recently, tyy ariffs under Section 232 of the Trade Expansion Act of 1962 were imposed on certain steel and aluminum
products imported into the U.S. which have increased the prices of these inputs. Increased prices for imported steel
and aluminum products have led domestic sellers to respond with market-based increases to prices for such inputs as
well. Tariffs under Section 301 of the Trade Expansion Act were also imposed on goods imported from China in
connection with China's intellectual property practices which may increase the cost to our customers of our products
manufactured in China as well as the cost of Chinese sourced parts and components for our products manufactured
in the U.S. Additional tariffs have been announced that may be imposed on goods imported from China in the future.
The new tariffs, along with any additional tariffs or trade restrictions that may be implemented by the U.S. or other
countries, could result in further increased prices and a decreased available supply of steel and aluminum as well as
additional imported components and inputs. We may not be able to pass price increases on to our customers and may
not be able to secure adequate alternative sources of steel and aluminum on a timely basis. While retaliatory tariffs
imposed by other countries on U.S. goods have not yet had a significant impact, we cannot predict further
developments. The tariffs could adversely affect the operating profits for certain of our businesses and customer
demand for certain of our products which could have a material adverse effect on our consolidated results of
operations, financial position and cash flows.

16

•

Our businesses and their profitability and reputation could be adversely affected by domestic and foreign
governmental and public policy changes, risks associated with emerging markets, changes in statutory tax rates
and unanticipated outcomes with respect to tax audits.

Our businesses’ domestic and international sales and operations are subject to risks associated with changes in laws,
regulations and policies (including environmental, employment and health and safety regulations, data security laws,
data privacy laws, export/import laws, tax policies such as export subsidy programs and research and experimentation
credits, carbon emission regulations and energy efficiency and design regulations and other similar programs). Failure
to comply with any of the foregoing could result in civil and criminal, monetary and non-monetary penalties as well
as potential damage to our reputation. We cannot provide assurance that our costs of complying with new and
evolving regulatory reporting requirements and current or future laws will not exceed our estimates. In addition, the
Brexit referendum in the United Kingdom in 2016 has caused and may continue to cause political and economic
uncertainty, iyy ncluding significant volatility in global stock markets and currency exchange rate fluctuations. Although
it is unknown what the full terms of the United Kingdom’s future relationship with the European Union will be, it is
possible that there will be greater restrictions on imports and exports between the United Kingdom and other
countries and increased regulatory complexities. Any of these factors could adversely affect customer demand, our
relationships with customers and suppliers, and our business and financial position.

ff

We have invested in certain countries, including Brazil, Russia, India and China, and may in the future invest in other
countries, any of which may carry high levels of currency, pyy olitical, compliance, or economic risk. While these risks
or the impact of these risks are difficult to predict, any one or more of them could adversely affect our businesses and
reputation.

Our effective tax rate is impacted by changes in the mix among earnings in countries with differing statutory tax rates,
changes in the valuation allowance of deferred tax assets and changes in tax laws. The amount of income taxes and
other taxes paid can be adversely impacted by changes in statutory tax rates and laws and are subject to ongoing
audits by domestic and international authorities. If these audits result in assessments different from amounts
estimated, then our consolidated results of operations, financial position and cash flows may be adversely affected by
unfavorable tax adjustments.

• We could lose customers or generate lower revenue, operating profits and cash flows if there are significant
)yyyy

increases in the cost of raw materials (including energy) or if w

e are unable to obtain raw materials.

We purchase raw materials, sub-assemblies and components for use in our manufacturing operations, which
expose us to volatility in prices for certain commodities. Significant price increases for these commodities could
adversely affect operating profits for certain of our businesses. While we generally attempt to mitigate the impact of
increased raw material prices by hedging or passing along the increased costs to customers, there may be a time delay
between the increased raw material prices and the ability to increase the prices of products, or we may be unable to
increase the prices of products due to a competitor’s pricing pressure or other factors. In addition, while raw materials
are generally available now, tw he inability to obtain necessary raw materials could affect our ability to meet customer
commitments and satisfy market demand for certain products. Consequently, a s
ignificant price increase in raw
ay result in a loss of customers and adversely impact our consolidated results of
materials, or their unavailability, myy
operations, financial condition and cash flows.

yy

•

Our growth and results of operations may be adversely affected if we are unsuccessful in our capital allocation
and acquisition program.

We expect to continue our strategy of seeking to acquire value creating add-on businesses that broaden our existing
position and global reach as well as, in the right circumstances, strategically pursue larger acquisitions that could have
the potential to either complement our existing businesses or allow us to pursue a new platform. However, there can
be no assurance that we will be able to continue to find suitable businesses to purchase, that we will be able to acquire
such businesses on acceptable terms, or that all closing conditions will be satisfied with respect to any pending
acquisition. In addition, we face the risk that a completed acquisition may underperform relative to expectations. We
may not achieve the synergies originally anticipated, may become exposed to unexpected liabilities or may not be
able to sufficiently integrate completed acquisitions into our current business and growth model. Further, if we fail to
allocate our capital appropriately, in r
espect of either our acquisition program or organic growth in our operations, we
could be overexposed in certain markets and geographies and unable to expand into adjacent products or
markets. These factors could potentially have an adverse impact on our consolidated results of operations, financial
condition and cash flows.

yy

ff

17

•

Our operating profits and cash flows could be adversely affected if we cannot achieve projected savings and
synergies.

We are continually evaluating our cost structure and seeking ways to capture synergies across our operations. For
example, during 2018, we recorded rightsizing and other related costs of $72.8 million primarily related to actions
taken on employee reductions, facility consolidations and site closures, product line exits and other associated asset
charges. These rightsizing activities and our regular ongoing cost reduction activities (including in connection with
the integration of acquired businesses) may reduce our available talent, assets and other resources and could slow
improvements in our products and services, adversely affect our ability to respond to customers and limit our ability
to increase production quickly if demand for our products increases. In addition, delays in implementing planned
targeted
restructuring activities or other productivity improvements, and unexpected costs or failure to meet
improvements may diminish the operational or financial benefits we expect to realize through our various programs.
Any of the circumstances described above could adversely affect our consolidated results of operations, financial
condition and cash flows.

•

Our operations, businesses and products are subject to cybersecurity risks.

We depend on our own and third party information technology (“IT”) systems, including cloud-based systems and
managed service providers, to store, process and protect our information and support our business activities. We also
use our third party IT systems to support employee data processing for our global work force and to support customer
business activities, such as transmitting payment information, providing mobile monitoring services, and capturing
operational data. Additionally, syy ome of our products contain computer hardware and software and offer the ability to
connect to computer networks. If these technologies, systems, products or services are damaged, cease to function
properly, ayy re compromised due to employee error, user error, malfeasance, system errors, or other vulnerabilities, or
are subject to cybersecurity attacks, such as those involving unauthorized access, malicious software, or other
intrusions, including by criminals, nation states or insiders, our business may be adversely impacted. The impacts
could include production downtimes, operational delays, and other impacts on our operations and ability to provide
products and services to our customers; compromise of confidential, proprietary or otherwise protected information,
including personal information and customer confidential data; destruction, corruption, or theft of data; manipulation,
disruption, or improper use of these technologies, systems, products or services; financial losses from remedial
actions, loss of business or potential liability; adverse media coverage; and legal claims or legal proceedings,
including regulatory investigations and actions; and damage to our reputation. There has been a rise in the number of
cyberattacks targeting confidential business information generally and in the manufacturing industry specifically, as
well as an increase in cyberattacks targeting managed service providers, by both state-sponsored and criminal
organizations. Moreover, there has been a rise in the number of cyberattacks that depend on human error or
manipulation, including phishing attacks or schemes that use social engineering to gain access to systems or
perpetuate wire transfer or other frauds. These trends raise the risks from such events as well as the costs associated
with protecting against such attacks. It is possible for vulnerabilities in our IT systems to remain undetected for an
extended period of time up to and including several years. While we attempt to mitigate these risks by employing a
number of measures, including employee training, systems monitoring and other technical security controls, a breach
response plan, maintenance of backup and protective systems, and security personnel, our systems, networks,
products and services remain potentially vulnerable to known or unknown cybersecurity attacks and other threats, any
of which could have a material adverse effect on our consolidated results of operations, financial condition and cash
flows. While we maintain insurance coverage that is intended to address certain aspects of cybersecurity risks, such
insurance coverage may not cover all losses or all types of claims that arise. As cyber threats continue to evolve,
cybersecurity and data protection laws and regulations continue to develop in the U.S. and globally, ayy nd our business
continues to move towards increased online connectivity within our information systems and through more Internet-
enabled products and offerings, we may be required to expend additional resources to continue to strengthen our
information security, dyy ata protection and business continuity measures, and investigate and remediate vulnerabilities.

•

Unforeseen developments in contingencies such as litigation and product recalls could adversely affect our
UU
consolidated results of operations, financial condition and cash flows.

We and certain of our subsidiaries are, and from time to time may become, parties to a number of legal proceedings
incidental to our businesses, including alleged injuries arising out of the use of products or exposure to hazardous
substances, or claims related to patent infringement, employment matters and commercial disputes. The defense of
these lawsuits may require significant expenses and divert management’s attention, and we may be required to pay

18

damages that could adversely affect our consolidated results of operations, financial condition and cash flows. In
addition, any insurance or indemnification rights that we may have may be insufficient or unavailable to protect us
against potential loss exposures.

We may be exposed to product recalls and adverse public relations if our products are alleged to have defects, to
cause property damage, to cause injury or illness, or if we are alleged to have violated governmental regulations. For
example, during the fourth quarter of 2016, we determined there was a quality issue with a product component part in
the Fluids segment and voluntarily reported this issue to the U.S. Consumer Product Safety Commission
(“CPSC”). During the first quarter of 2017, we announced a voluntary recall of the product in conjunction with the
CPSC that has since been satisfactorily closed out in 2018. See Note 15 — Commitments and Contingent Liabilities
in the Consolidated Financial Statements in Item 8 of this Form 10-K for additional information. A product recall
could result in substantial and unexpected expenditures, which would reduce operating profit and cash flow. In
addition, a product recall may require significant management attention. Product recalls may hurt the value of our
brands and lead to decreased demand for our products. Product recalls also may lead to increased scrutiny by federal,
state or international regulatory agencies of our operations and increased litigation and could have a material adverse
effect on our consolidated results of operations, financial condition and cash flows.

•

If the Apergy spin-off, together with certain related transactions, does not qualify as a transaction that is
generally tax-free for U.S. federal income tax purposes, we and our shareholders could be subject to significant
tax liabilities.

tt

yy
f Apergy, we r

In connection with the spin-off off
eceived a private letter ruling from the Internal Revenue Service (the
"IRS Ruling") together with an opinion of McDermott Will & Emery LLP, oPP ur tax counsel, substantially to the effect
ill qualify as a tax-free reorganization for U.S.
that, among other things, certain transactions to effect the spin-off wff
federal income tax purposes under Section 368(a)(1)(D) of the Internal Revenue Code (the “Code”), and the
distribution will qualify as a tax-free distribution to our shareholders under Section 355 of the Code. The IRS Ruling
and the opinion of tax counsel relied on certain facts and assumptions, and certain representations and undertakings
from us and Apergy, iyy ncluding those regarding the past and future conduct of certain of our businesses and other
matters. If any of these facts, assumptions, representations or undertakings are incorrect or not satisfied, we and our
shareholders may not be able to rely on the IRS Ruling or the opinion, and could be subject to significant tax
liabilities. Notwithstanding the IRS Ruling and the opinion, the IRS could determine on audit that the distribution is
taxable if it determines that any of these facts, assumptions, representations or undertakings are not correct or have
been violated or if it disagrees with the conclusions in the opinion. In addition, we and Apergy intend for certain
related transactions to qualify for tax-free treatment under U.S. federal, state and local tax law and/or foreign tax
law.

If the distribution is determined to be taxable for U.S. federal income tax purposes, we and our shareholders that are
subject to U.S. federal income tax could incur significant U.S. federal income tax liabilities. For example, if the
distribution fails to qualify for tax-free treatment, we would, for U.S. federal income tax purposes, be treated as if
we had sold the Apergy common stock in a taxable sale for its fair market value, and our shareholders who are
subject to U.S. federal income tax would be treated as receiving a taxable distribution in an amount equal to the fair
market value of the Apergy common stock received in the distribution. In addition, if certain related transactions fail
to qualify for tax-free treatment under U.S. federal, state and local tax law and/or foreign tax law, we c
ould incur
significant tax liabilities under U.S. federal, state, local and/or foreign tax law, rww espectively.

ww

•

The indemnification provisions of acquisition and disposition agreements by which we have acquired or sold or
TT
disposed of companies may not fully protect us and may result in unexpected liabilities.

Certain of the acquisition agreements by which we have acquired companies require the former owners to indemnify
us against certain liabilities related to the operation of those companies before we acquired them. In most of these
agreements, however, the liability of the former owners is limited and certain former owners may be unable to meet
their indemnification responsibilities. Similarly, tyy he purchasers of our discontinued operations may from time to time
agree to indemnify us for operations of such businesses after the closing. We cannot be assured that any of these
indemnification provisions will fully protect us, and as a result we may face unexpected liabilities that adversely
affect our consolidated results of operations, financial condition and cash flows. In addition, we have retained certain
liabilities directly or through indemnifications made to the buyers of businesses we have sold or disposed against
known and unknown contingent liabilities such as tax liabilities and environmental matters.

19

In connection with the spin-off, Apergy agreed to indemnify us for any losses relating to the conduct of the Apergy
business. There can be no assurance that the indemnity agreements will be sufficient to protect us against the full
amount of any liabilities that may arise, or that the indemnitors will be able to fully satisfy their indemnification
obligations. The failure to receive amounts for which we are entitled to indemnification could adversely affect our
results of operations, cash flows and financial condition.

•

Our reputation, ability to do business and results of operations may be impaired by improper conduct by any of our
employees, agents, or business partners.

While we strive to maintain high standards, we cannot provide assurance that our internal controls and compliance
systems will always protect us from acts committed by our employees, agents, or business partners that would violate
United States and/or non-United States laws or fail to protect our confidential information, including the laws
governing payments to government officials, bribery, fyy raud, anti-kickbac
k and false claims, competition, export and
import compliance, money laundering and data privacy, ayy
s well as the improper use of proprietary information or
social media. Any such violations of law or improper actions could subject us to civil or criminal investigations in the
United States and in other jurisdictions, could lead to substantial civil or criminal, monetary and non-monetary
penalties and related shareholder lawsuits, could lead to increased costs of compliance and could damage our
reputation, our consolidated results of operations, financial condition and cash flows.

ff

•

Our revenue, operating profits and cash flows could be adversely affected if our businesses are unable to protect
or obtain patent and other intellectual property rights.

Our businesses own patents, trademarks, licenses and other forms of intellectual property related to their products and
continuously invest in research and development that may result in innovations and general intellectual property
rights. Our businesses employ various measures to develop, maintain and protect their intellectual property rights.
These measures may not be effective in capturing intellectual property rights, and they may not prevent their
intellectual property from being challenged, invalidated, or circumvented, particularly in countries where intellectual
property rights are not highly developed or protected. Unauthorized use of our businesses' intellectual property rights
could adversely impact the competitive position of our businesses and could have a negative impact on our
consolidated results of operations, financial condition and cash flows.

•

e experience work stoppages, union and works council campaigns and other labor disputes, our productivity

ee

If wII
and results of operations could be adversely impacted.

We have a number of collective bargaining units in the United States and various foreign collective labor
arrangements. We are subject to potential work stoppages, union and works council campaigns and other labor
eputation, consolidated results of operations,
disputes, any of which could adversely impact our productivity, ryy
financial condition and cash flows.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

20

ITEM 2. PROPERTIES

The number, type, location and size of the properties used by our operations as of December 31, 2018 are shown in the
following charts, by segment:

Number and nature of facilities

Square footage (in 000s)

Engineered Systems
Fluids
Refrigeration & Food Equipment

Manufacturing Warehouse Sales / Service
75
41
18

38
18
23

43
63
23

Total
156
122
64

Owned

Leased

3,491
4,109
1,556

2,046
3,277
2,459

Engineered Systems
Fluids

North America Europe
55
28

37
31

Refrigeration & Food Equipment

32

11

Asia

30
19

9

Other
1
9

2

Total
123
87

54

Locations

Expiration dates of
leased facilities (in years)
Minimum Maximum
10
14

1
1

1

10

Our owned and leased facilities are well-maintained and suitable for our operations.

ITEM 3. LEGAL PROCEEDINGS

A few of our subsidiaries are involved in legal proceedings relating to the cleanup of waste disposal sites identified under
federal and state statutes which provide for the allocation of such costs among "potentially responsible parties." In each
instance, the extent of the subsidiary’s liability appears to be relatively insignificant in relation to the total projected
expenditures and the number of other "potentially responsible parties" involved and it is anticipated to be immaterial to us on
a consolidated basis. In addition, a few of our subsidiaries are involved in ongoing remedial activities at certain plant sites, in
cooperation with regulatory agencies, and appropriate reserves have been established. At December 31, 2018 and 2017, we
have reserves totaling $31.8 million and $35.0 million, respectively, for environmental and other matters, including private
party claims for exposure to hazardous substances, that are probable and estimable.

The Company and certain of its subsidiaries are also parties to a number of other legal proceedings incidental to their
businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of the Company’s
products, exposure to hazardous substances, patent infringement, employment matters and commercial disputes. Management
and legal counsel, at least quarterly, review the probable outcome of such proceedings, the costs and expenses reasonably
expected to be incurred and currently accrued to-date and consider the availability and extent of insurance coverage. The
Company has reserves for other legal matters that are probable and estimable and at December 31, 2018 and 2017, these
reserves are not significant. While it is not possible at this time to predict the outcome of these legal actions, in the opinion of
management, based on the aforementioned reviews, the Company is not currently involved in any legal proceedings which,
individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

21

EXECUTIVE OFFICERS OF THE REGISTRANT

All of our officers are elected annually at the first meeting of the Board of Directors following our annual meeting of
shareholders, and are subject to removal at any time by the Board of Directors. Our executive officers as of February 15,
2019, and their positions with Dover (and, where relevant, prior business experience) for the past five years, are as follows:

Name
Richard J. Tobin

Ivonne M. Cabrera

Brad M. Cerepak

Jay L. Kloosterboer

William W. Spurgeon, Jr.

Carrie Anderson

Girish Juneja

Anthony K. Kosinski

James M. Moran

Age
55

52

59

58

60

50

49

52

53

Positions Held and Prior Business Experience

President and Chief Executive Officer (since May 2018) and Director (since
August 2016); prior thereto Chief Executive Officer (from 2013 to 2018) of
CNH Industrial NV.

Senior Vice President, General Counsel and Secretary of Dover (since January
2013); prior thereto Vice President, Deputy General Counsel, and Assistant
Secretary of Dover (from November 2012 to December 2012); prior thereto Vice
President, Business Affairs and General Counsel of Knowles Electronics, LLC
(from February 2011 to December 2012); prior thereto Vice President (from May
2010 to February 2011), Deputy General Counsel and Assistant Secretary (from
February 2004 to February 2011) of Dover.

Senior Vice President and Chief Financial Officer (since May 2011) of Dover;
prior thereto Vice President and Chief Financial Officer (from August 2009 to
May 2011) of Dover.

Senior Vice President, Human Resources (since May 2011) of Dover; prior
thereto Vice President, Human Resources (from January 2009 to May 2011) of
Dover.

Vice President (since October 2004) of Dover and President and Chief Executive
Officer (since February 2014) of Dover Fluids; prior thereto President and Chief
Executive Officer (from August 2013 to February 2014) of Dover Engineered
Systems; prior thereto President and Chief Executive Officer (from November
2011 to August 2013) of Dover Energy; prior thereto President and Chief
Executive Officer (from July 2007 to November 2011) of Dover Fluid
Management.

Vice President, Controller (since May 2017) of Dover; prior thereto Vice
President and Chief Financial Officer (from February 2014 to May 2017) of
Dover Engineered Systems; prior thereto Vice President and Chief Financial
Officer (October 2011 to February 2014) of Dover's former Printing &
Identification segment.

Senior Vice President and Chief Digital Officer (since May 2017) of Dover; prior
thereto Senior Vice President/Chief Technology Officer and General Manager of
the Marketplace Solutions Business of Altisource (from January 2014 to April
2017); prior thereto General Manager, Big Data Software Products and Chief
Technology Officer, Datacenter Software of Intel Corporation (from January
2012 to January 2014).

Vice President, Tax (since June 2016) of Dover; prior thereto Director, Domestic
Tax (June 2003 to June 2016) of Dover.

Vice President, Treasurer (since November 2015) of Dover; prior thereto Senior
Vice President and Treasurer (from June 2013 to August 2015) of Navistar
International Corporation (“NIC”); prior thereto Vice President and Treasurer
(from 2008 to June 2013) of NIC; also served as Senior Vice President and
Treasurer of Navistar, Inc. (from June 2013 to August 2015) and Vice President
and Treasurer of Navistar, Inc. (from 2008 to June 2013); also served as Senior
Vice President and Treasurer of Navistar Financial Corporation (“NFC”) (from
April 2013 to August 2015) and Vice President and Treasurer of NFC (from
January 2013 to April 2013).

22

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RYY ELATED SHAREHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES

PART II

Market Information and Dividends

The principal market in which Dover common stock is traded is the New York Stock Exchange.

Holders

The number of holders of record of Dover common stock as of February 1, 2019 was approximately 18,198. This figure
includes participants in our domestic 401(k) program.

Securities Authorized for Issuance Under Equity Compensation Plans

Information regarding securities authorized for issuance under our equity compensation plans is contained in Part III, Item 12
of this Form 10-K.

Recent Sales of Unregistered Securities

None.

Issuer Purchases of Equity Securities

In January 2015, the Board of Directors approved a standing share repurchase authorization, whereby the Company could
repurchase up to 15,000,000 shares of its common stock over the following three years. During the year ended December 31,
2018, under the January 2015 authorization the Company purchased 440,608 shares of its common stock at a total cost of
$45.0 million, or $102.08 per share. There were 5,271,168 shares available for repurchase under this authorization upon
expiration. In February 2018, the Company's Board of Directors approved a new standing share repurchase authorization,
whereby the Company may repurchase up to 20,000,000 shares of its common stock through December 31, 2020. This share
repurchase authorization replaced the January 2015 share repurchase authorization.

On May 22, 2018, the Company entered into a $700 million accelerated share repurchase agreement (the “ASR Agreement”)
with Goldman Sachs & Co. LLC (“Goldman Sachs”) pursuant to which it repurchased its shares in an accelerated share
repurchase program (the “ASR Program”). The Company conducted the ASR Program under the February 2018 share
repurchase authorization. The Company funded the ASR Program with funds received from Apergy in connection with the
consummation of the Apergy spin-off. During 2018, the Company received a total of 8,542,566 shares under the ASR
Agreement.

Additionally, dyy
d
uring the year ended December 31, 2018, under the February 2018 authorization, exclusive of the ASR
Agreement, the Company purchased 1,753,768 shares of its common stock at a total cost of $150.0 million, or $85.53 per
share. As of December 31, 2018, the number of shares available for repurchase under the February 2018 share repurchase
authorization was 9,703,666.

Together with other repurchases in December 2017 and over the course of 2018, the Company has completed the $1 billion of
share repurchases it announced in November 2017.

The total number of shares purchased by month during the fourth quarter of 2018 were as follows:

23

Period
October 1 to October 31
November 1 to November 30
December 1 to December 31
For the Fourth Quarter

Total Number
of Shares
Purchased

Average
Price Paid
per Share

24,720
—
1,463,815
1,488,535

$

$

89.27
—
81.94 (1)
82.06

Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs

24,720
—
1,463,815
1,488,535

Maximum Number (or
Approximate Dollar Value
in Thousands) of Shares
that May Yet Be Purchased
under the Plans or Program

February 2018 Program

11,167,481
11,167,481
9,703,666
9,703,666

(1) Under the terms of the ASR Agreement, the Company paid Goldman Sachs $700 million on May 24, 2018 and on that date received
initial deliveries of 7,078,751 shares, representing a substantial majority of the shares expected to be retired over the course of the ASR
Agreement. Upon final settlement of the ASR Agreement in December 2018, the Company received an additional 1,463,815 shares of its
common stock which completed the ASR Program. The total number of shares ultimately repurchased under the ASR Agreement was
based on the volume-weighted average share price (VWAP) of Dover’s common stock during the calculation period of the ASR Program,
less a discount, which was $81.94 over the term of the ASR Program.

24

Performance Graph

This performance graph does not constitute soliciting material, is not deemed filed with the Securities and Exchange
Commission ("SEC"), and is not incorporated by reference in any of our filings under the Securities Act of 1933 or the
Exchange Act of 1934, whether made before or after the date of this Form 10-K and irrespective of any general incorporation
language in any such filing, except to the extent we specifically incorporate this performance graph by reference therein.

Comparison of Five-Year Cumulative Total Return +
Dover Corporation, S&P 500 Index, Old & New Peer Group Index

Total Shareholder Returns

$180

$160

$140

$120

$100

$80

$60

$40

$20

$0

12/13

12/14

12/15

12/16

12/17

12/18

Dover Corporation

S&P 500

Old Peer Group

New Peer Group

Data Source: Research Data Group, Inc

_______________________
+Total return assumes reinvestment of dividends.

This graph assumes $100 invested on December 31, 2013 in Dover common stock, the S&P 500 index and an old and new
peer group index.

The 2018 new peer index consists of the following 30 public companies selected by Dover.

3M Company
Actuant Corp.
AMETEK Inc.
Carlisle Companies Inc.
Colfax Corp. *
Corning Inc.
Crane Company
Danaher Corporation
Eaton Corporation Plc
Emerson Electric Co.

Flowserve Corporation
Fortive Corp. *
Gardner Denver Holdings Inc.
Honeywell International Inc.
IDEX Corporation
Illinois Tool Works Inc.
Ingersoll-Rand PLC
ITT Inc. *
Johnson Controls International PLC
Lennox International Inc.

Nordson Corp.
Parker-Hannifin Corp.
Pentair PLC
Regal Beloit Corp.
Rockwell Automation Inc.
Snap-On Inc.
SPX Flow Inc. *
Teledyne Technologies Inc.
Textron Inc.
The Timken Company

*We re-examined our Old Peer Group in light of the Apergy spin-off and adjusted our peer companies to better align with our
current business profile. These companies were added to our New Peer Group index in 2018. The following companies in our

25

Old Peer Group are no longer included within the New Peer Group index: Amphenol Corp., Hubbell Incorporated, Roper
Industries, SPX Corporation, United Technologies Corp., Vishay Intertechnology Inc., and Weatherford International PLC.

26

ITEM 6. SELECTED FINANCIAL DATA

in thousands except per share data

2018

2017

2016

2015

2014

Revenue
Earnings from continuing operations
(Loss) earnings from discontinued operations
Net earnings

$ 6,992,118
591,145
(20,878)
570,267

$ 6,820,886
746,663
65,002
811,665

$ 6,043,224
502,128
6,764
508,892

$ 5,879,842
525,208
344,621
869,829

$ 6,222,308
529,730
245,505
775,235

Basic earnings (loss) per share:

Continuing operations
Discontinued operations
Net earnings

Weighted average basic shares outstanding

Diluted earnings (loss) per share:

Continuing operations
Discontinued operations
Net earnings

Weighted average diluted shares outstanding

Dividends per common share

Capital expenditures
Depreciation and amortization
Total assets
Total long-term debt, including current
maturities

$

$

$

$

$

3.94
(0.14)
3.80

$

4.80
0.42
5.21

$

3.23
0.04
3.28

$

3.33
2.19
5.52

3.18
1.47
4.65

149,874

155,685

155,231

157,619

166,692

$

3.89
(0.14)
3.75

$

4.73
0.41
5.15

$

3.21
0.04
3.25

$

3.30
2.17
5.46

3.14
1.45
4.59

152,133

157,744

156,636

159,172

168,842

$

$

1.90

170,994
282,580
8,365,771

1.82

170,068
283,278
10,658,359

$

$

1.72

139,578
249,672
10,130,325

$

$

$

$

1.64

130,045
207,817
8,606,075

1.55

120,460
218,114
9,030,290

2,943,660

3,336,713

3,207,632

2,603,504

2,552,625

All results and data in the table above reflect continuing operations, unless otherwise noted. See Note 4 — Acquisitions and
Note 5 — Discontinued and Disposed Operations in the Consolidated Financial Statements in Item 8 of this Form 10-K for
additional information regarding the impact of 2018, 2017 and 2016 acquisitions and disposed and discontinued operations.

27

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is
intended to help the reader understand our results of operations and financial condition for the three years ended December
31, 2018, 2017 and 2016. The MD&A should be read in conjunction with our Consolidated Financial Statements and Notes
included in Item 8 of this Form 10-K. This discussion contains forward-looking statements that
involve risks and
uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result
of various factors, including those discussed elsewhere in this Form 10-K, particularly in Item 1A. "Risk Factors" and in the
"Special Note Regarding Forward-Looking Statements" preceding Part I of this Form 10-K.

Throughout this MD&A, we refer to measures used by management to evaluate performance, including a number of financial
measures that are not defined under accounting principles generally accepted in the United States of America ("GAAP").
We believe these
ff
Please see "Non-GAAP Disclosures" at the end of this Item 7 for further detail on these financial measures.
measures provide investors with important information that is useful in understanding our business results and trends.
Reconciliations within this MD&A provide more details on the use and derivation of these measures.

OVERVIEW

Dover is a diversified global manufacturer delivering innovative equipment and components, specialty systems, consumable
supplies, software and digital solutions and support services through three operating segments: Engineered Systems, Fluids,
and Refrigeration & Food Equipment.

For the year ended December 31, 2018, consolidated revenue from continuing operations was $7.0 billion, an increase of $0.2
billion or 2.5%, as compared to the prior year. This increase included organic revenue growth of 3.7%, a favorable impact of
nd acquisition-related growth of 0.5%, partially offset by a 2.5% impact from dispositions.
0.8% from foreign currency, ayy
ff
Overall, customer pricing had a favorable impact of 1.0% on revenue for the year.

ff

ff

Within our Engineered Systems segment, revenue increased $75.0 million, or 2.8%, from the prior year, reflecting organic
growth of 5.8%, a favorable impact from foreign currency of 1.5%, and acquisition-related growth of 0.1%, partially offset by
a 4.6% impact from dispositions. Organic growth was broad-based across the segment with particular strength in our Printing
& Identification platform and environmental solutions and defense businesses. Our Fluids segment revenue increased $242.3
million, or 9.5%, comprised of organic growth of 8.7%, acquisition-related growth of 0.7%, and a favorable foreign currency
impact of 0.3%, partially offset by a 0.2% impact from dispositions. The organic growth was principally driven by strong
activity in international retail fueling, industrial pumps and other industrial markets. Within our Refrigeration & Food
Equipment segment, revenue decreased $146.0 million, or 9.1%, from the prior year, including an organic revenue decline of
7.9% and a decline of 2.6% due to a disposition, partially offset by a favorable impact from foreign currency translation of
0.7% and acquisition-related growth of 0.7%. The organic decline was driven primarily by continued weak retail refrigeration
markets, especially with respect to refrigerated door cases.

ff

ff

Gross profit was $2.6 billion for the year ended December 31, 2018, an increase of $30.5 million, or 1.2%, as compared to
the prior year. The increase was primarily due to growth in sales volumes as well as the benefits of prior restructuring actions,
December 31, 2018
partially offset by l
h
fi
esult of unfavorable product mix and rising material costs in our
compared to 37.1% f
d
f
Refrigeration and Food Equipment segment and the impact of inefficiencie ds d
dd
ue to facility consolidations principally in our
lid i
i
f i
Fluids segment. For further discussion related to our consolidated and segment results, see "Consolidated Results of
Fluids segment. For
Operations" and "Segment Results of Operations," respectively, wyy

fi f
for the pri
or year primarily as a r
i
h
d

ost gross profit from divestitures. Gross profit margin was 36.6% f

i
il
d h i

for the year ended
d d

ithin MD&A.

f
ffi i

bl
i

d i i

i l
i

di
i

i
ili

f i

i
i

ll

d

b

d

f

l

i

i

i

Bookings increased 5.1% over the prior year to $7.3 billion for the year ended December 31, 2018. Included in this result was
a 5.3% increase in organic bookings, a 1.7% favorable impact due to foreign exchange rates, and a 0.5% increase in
acquisition-related bookings, which were partially offset by a 2.4% decline due to dispositions. Bookings increased 11.0%
hile bookings in our Refrigeration & Food
and 6.3% within our Fluids and Engineered Systems segments, respectively, wyy
Equipment segment decreased 6.8%. Overall, our book-to-bill increased from the prior year to 1.04. Backlog as of
December 31, 2018 was $1.4 billion, up from $1.2 billion from the prior year
. Backlog as of December 31, 2018 included
$0.6 billion, $0.5 billion and $0.3 billion in the Engineered Systems, Fluids and Refrigeration and Food Equipment segments,
respectively.

ff

28

hi

eographic perspective,

From a g
revenue for the U.S., our largest market, grew by 2.1% organically over the prior year, whhere
b
broad-based growth in Engineered Systems and Fluids was partially offset by our retail refrigeration business in the
broad-based growth in Engineered Systems and Fluids was partially offset by our retail refrigeration business in the
Refrigeration and Food Equipment segment, which is primarily
omestic business. Asia and Europe also grew organically
ll
il
d
by 15.2% and 2.7%, respectively, oyy
by 15.2% and 2.7%, respectively

hi h i
ver the prior year.
i

i b i

da d

f i

ll

h

h

k

d

d

h

f

i

l

i

i

i

l

i

i

i

i

On May 9, 2018, the Company completed the separation of Apergy Corporation ("Apergy") from Dover through the pro rata
distribution of 100% of the common stock of Apergy to Dover's shareholders of record as of the close of business on April
30, 2018. Each Dover shareholder received one share of Apergy common stock for every two shares of Dover common stock
held as of the record date. As a result, Apergy became an independent, publicly traded company listed on the New York Stock
Exchange, and Dover retained no ownership interest in Apergy. The distribution was structured to be tax-free to Dover and its
shareholders for U.S. federal income tax purposes. Apergy holds entities conducting the upstream energy businesses
previously included within our Energy segment. Following the spin-off, effective the second quarter of 2018, the Company
no longer has the Energy segment and is aligned into three reportable segments. The retained Precision Components
(Bearings & Compression) and Tulsa Winch Group businesses, which were historically reported within the Energy segment,
became a part of the Fluids and Engineered Systems segments, respectively. See Note 2 Spin-off off
f Apergy Corporation and
Note 5 — Discontinued and Disposed Operations in the Consolidated Financial Statements in Item 8 of this Form 10-K for
additional information regarding the spin off off

f Apergy.

During the year ended December 31, 2018, we executed several programs in order to further optimize operations.
Rightsizing programs in 2018 included 1) alignment of our cost structure in preparation for the Apergy separation, 2) broad-
based selling, general and administrative expense reduction initiatives and 3) initiation of footprint consolidation actions. We
recorded rightsizing and other related costs of $72.8 million for the year ended December 31, 2018, which was comprised of
$56.1 million of rightsizing costs and $16.7 million of other charges. These costs primarily related to actions taken for
employee reductions, facility consolidations and site closures and product line divestitures and other asset charges designed to
increase operating margin, enhance operations and position us for sustained growth and investment. These charges were
broad based across all segments as well as corporate, with costs incurred of $19.9 million in Engineered Systems, $28.7
million in Fluids, $10.0 million in Refrigeration & Food Equipment, and $14.2 million at Corporate. These charges were
recorded in cost of goods and services, selling, general and administrative expenses, and other expense (income), net, in the
Consolidated Statement of Earnings. We expect to incur total future charges of approximately $20 million related to
completion of our selling, general and administrative expense reduction actions and continuation of our footprint
consolidation initiatives, approximately $15 million which will be incurred during the year ended December 31, 2019 and
approximately $5 million of which we expect to incur in 2020.

ssued Staff Aff

ccounting Bulletin No. 118 ("SAB 118") to address the application of
On December 22, 2017, the SEC staff iff
U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed
(including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. bill
commonly referred to as the Tax Cuts and Jobs Act (“Tax Reform Act”). In accordance with the SAB 118 guidance, we
recognized the provisional tax impacts related to deemed repatriated earnings and the benefit for the revaluation of deferred
tax assets and liabilities in our consolidated financial statements for the year ended December 31, 2017. In accordance with
SAB 118, we finalized the financial reporting impact of the Tax Reform Act in the fourth quarter of 2018. For the year ended
December 31, 2018, we recorded a net tax benefit of $4.2 million which resulted in a 0.6% decrease in effective tax rate, as
an adjustment to provisional estimates as a result of additional regulatory guidance and changes in interpretations and
assumptions we made as a result of the Tax Reform Act. On a full year basis, the effective tax rate for 2018 was 18.5%,
inclusive of the SAB 118 amounts.

ff

During the year ended December 31, 2018, we made a total of two acquisitions totaling $68.6 million, net of cash acquired.
We completed the acquisition of Ettlinger Group ("Ettlinger"), a leading manufacturer of filtering solutions for the plastics
recycling industry for $53.2 million, net of cash acquired. Ettlinger enhances our ability to serve the Process Solutions end
market within our Fluids segment. We also completed the acquisition of Rosario Handel B.V. (VV "Rosario"), a manufacturer of
decorator and base coating machinery used in the production of beverage, food and aerosol cans for total consideration of
$15.3 million, net of cash acquired. Rosario enhances our ability to serve the Food Equipment end market within our
Refrigeration & Food Equipment segment. See Note 4 — Acquisitions in the Consolidated Financial Statements in Item 8 of
this Form 10-K for further details regarding the businesses acquired during the year. Subsequently, iyy n January 2019, we
acquired Belanger, Inc. ("Belanger"), a leading full-line car wash equipment manufacturer, for approximatel
y $180 million.
Belanger strengthens our position in the Fueling & Transport end market within our Fluids segment.

TT

ff

29

During the year ended December 31, 2018, we purchased 10.7 million shares of our common stock for a total cost of $895.0
million, or $83.35 per share. Together with other repurchases in December 2017, we have completed the $1 billion of share
repurchases announced in November 2017. As of December 31, 2018, 9,703,666 shares remain authorized for repurchase
under our current share repurchase authorization. We also continued our 63 year history of increasing our annual dividend
payments to shareholders and paid a total of $283.6 million in dividends to our shareholders.

30

CONSOLIDATED RESULTS OF OPERATIONS

(dollars in thousands, except per share figures)
Revenue
Cost of goods and services
Gross profit

Gross profit margin

Selling, general and administrative expenses

Selling, general and administrative expenses as a
percent of revenue

Interest expense
Interest income
Other income, net
Gain on sale of businesses
Provision for income taxes

Effective tax rate

Earnings from continuing operations
(Loss) earnings from discontinued operations, net
Earnings from continuing operations per common
share - diluted

(Loss) earnings from discontinued operations per
common share -diluted

* nm: not meaningful

Revenue

Years Ended December 31,

2018
$ 6,992,118
4,432,562
2,559,556
36.6 %
1,716,444

2017
$ 6,820,886
4,291,839
2,529,047
37.1 %
1,722,161

2016
$ 6,043,224
3,815,672
2,227,552
36.9 %
1,518,580

2018 vs.
2017

% / Point Change
2017 vs.
2016
12.9 %
12.5 %
13.5 %
0.20
13.4 %

2.5 %
3.3 %
1.2 %
(0.50)
(0.3)%

24.5 %
130,972
(8,881)
(4,357)
—
134,233
18.5 %
591,145
(20,878)

25.2 %
144,948
(8,491)
(2,251)
(203,135)
129,152
14.7 %
746,663
65,002

25.1 %
135,969
(6,752)
(8,291)
(96,598)
182,516
26.7 %
502,128
6,764

(0.70)
(9.6)%
4.6 %
93.6 %
nm*
3.9 %
3.8
(20.8)%
nm*

0.10
6.6 %
25.8 %
(72.9)%
nm*
(29.2)%
(12.0)
48.7 %
nm*

3.89

4.73

$

3.21

(17.8)%

47.4 %

$

(0.14) $

0.41

$

0.04

nm*

nm*

For the year ended December 31, 2018, revenue increased $171.2 million, or 2.5% to $7.0 billion compared with 2017,
reflecting organic growth of 3.7% led by our Fluids and Engineered Systems segments, partially offset by our Refrigeration
and Food Equipment segment, acquisition-related growth of 0.5% from our Fluids and Refrigeration and Food Equipment
segments and a favorable impact from foreign currency translation of 0.8%. Revenue growth was partially offset by a 2.5%
impact from dispositions within our Engineered Systems segment. Customer pricing favorably impacted revenue by
approximately 1.0% in 2018.

For the year ended December 31, 2017, revenue increased $777.7 million, or 12.9% to $6.8 billion compared with 2016,
reflecting a growth from acquisitions of 10.9%, an organic growth of 4.6%, and a favorable impact of 0.5% from foreign
currency translation, offset by a decline from dispositions of 3.1%. Acquisition-related growth of 10.9% was led by the Fluids
and Engineered Systems segments, largely due to the full-year benefit from the 2016 acquisitions of Wayne Fueling Systems
Ltd. ("Wayne") within our Fluids segment and Ravaglioli S.p.A Group ("RAV") within our Engineered Systems segment, as
well as the 2017 acquisition of Caldera Graphics S.A.S. ("Caldera") within our Engineered Systems segment. Growth in
organic revenue was largely driven by strong broad-based activity in the Engineered Systems segment. Organic growth also
reflected strong shipments in our Pumps and Process Solutions businesses in the Fluids segment and solid retail refrigeration
activity in the Refrigeration & Food Equipment segment. Overall customer pricing was favorable, impacting consolidated
revenue 0.6%.

Gross Profit

For the year ended December 31, 2018, gross profit increased $30.5 million, or 1.2%, to $2.6 billion compared with 2017,
primarily due to growth in sales volumes and benefits of prior restructuring actions, partially offset by the loss of gross profits
due to divestitures. Gross profit margin decreased 50 basis points as compared to the prior year, due to unfavorable product
mix and rising material costs in our Refrigeration and Food Equipment segment and the impact of inefficiencies due to
facility consolidations principally in our Fluids segment.

31

For the year ended December 31, 2017, gross profit increased $301.5 million, or 13.5% to $2.5 billion compared with 2016,
primarily due to growth in sales volumes and benefits of prior restructuring actions as well as a reduction of a product recall
accrual of $7.2 million compared to a fourth quarter 2016 charge of $23.2 million. Gross profit margin increased 20 basis
points compared with 2016.

ff

Selling, General and Administrative Expenses

For the year ended December 31, 2018, selling, general and administrative expenses decreased $5.7 million, or 0.3% to $1.7
billion compared with 2017, primarily due to benefits from prior restructuring actions and decreases from dispositions within
our Engineered Systems segment, offset by an increase in restructuring costs of $6.0 million. As a percentage of revenue,
selling, general and administrative expenses decreased 50 basis points in 2018 to 24.5%, reflecting the leverage of costs on a
higher revenue base and the decrease in expenses.

For the year ended December 31, 2017, selling, general and administrative expenses increased $203.6 million, or 13.4% to
$1.7 billion compared with 2016 primarily reflecting the impact of acquisitions in 2017, including acquisition-related
amortization expense of $18.0 million, higher restructuring charges of $15.9 million, disposition-related costs for Warn of
$5.2 million and increased compensation costs. As a percentage of revenue, selling, general and administrative expenses
remained consistent with 2016 at approximately 25%.

Non-Operating Items

Interest Expense

p

For the year ended December 31, 2018, interest expense, net of interest income, decreased $14.4 million, or 10.5%, to $122.1
million compared with 2017 due to the $350 million 5.45% 10-year notes that were paid in March 2018 that resulted in lower
outstanding long-term debt and lower interest expense compared to 2017.

For the year ended December 31, 2017, interest expense, net of interest income, increased $7.2 million, or 5.6%, to $136.5
million compared with 2016 due to the full year impact of the fourth quarter 2016 issuance of the €600 million of 1.25%
euro-denominated notes and higher interest rates on commercial paper in 2017.

Other income,, net

For the years ended December 31, 2018, 2017 and 2016, other income, net was $4.4 million, $2.3 million and $8.3 million,
respectively. For the year ended December 31, 2018, other income was primarily driven by non-operating gains from our
defined benefit and post-retirement benefit plans of $5.8 million. For the year ended December 31, 2017, other income was
primarily due to non-operating gains from our defined benefit and post-retirement benefit plans of $8.6 million partially
offset by $6.9 million foreign exchange losses resulting from the re-measurement and settlement of foreign currency
denominated balances. For the year ended December 31, 2016, other income was primarily due to earnings on equity method
investments of $3.3 million and net foreign exchange gains of $3.6 million.

Gain on sale of businesses

There were no significant dispositions in 2018 aside from the spin-off off
operations.

f Apergy, wyy

hose results are presented as discontinued

For the year ended December 31, 2017, gain on sale of businesses was $203.1 million. The gain was primarily due to the
sales of PMI and the consumer and industrial winch business of Warn ("Warn"), both within the Engineered Systems
segment, in which we recognized gains on sale of $88.4 million and $116.9 million, respectively. Other immaterial
dispositions completed during the year were recorded as a net loss of $2.2 million.

For the year ended December 31, 2016, gain on sale of businesses was $96.6 million. The gain was primarily due to the sales
of Texas Hydraulics ("THI"), a custom manufacturer of fluid power components within the Engineered Systems segment, and
Tipper Tie, a global supplier of processing and clip packaging machines within the Refrigeration & Food Equipment segment.
Upon disposal of THI and Tipper Tie, we recognized gains on sale of $11.9 million and $85 million, respectively.

32

The disposals in 2017 and 2016 did not represent strategic shifts in operations and, therefore, did not qualify for presentation
as discontinued operations.

Income Taxesaa

Our businesses span the globe with 52.5%, 37.8% and 38.2% of our pre-tax earnings in 2018, 2017 and 2016, respectively,
generated in foreign jurisdictions. Foreign earnings are generally subject to local country tax rates that differ from the 21.0%
U.S. statutory tax rate. As a result of our non-U.S. business locations, our effective foreign tax rate is typically lower than the
U.S. statutory tax rate.

Our effective tax rate was 18.5% for the year ended December 31, 2018, compared to 14.7% for the year ended December 31,
2017. The 2018 and 2017 rates were impacted by $24.0 million and $51.7 million, respectively, of f
ff
avorable net discrete
items, inclusive of the impact recorded for the U.S. Tax Reform Act in 2017 and the SAB 118 adjustment in 2018, as
described below.

yy

ff

On December 22, 2017, the Tax Reform Act was enacted which reduced the U.S. corporate income tax rate from a maximum
a result of the reduction in the U.S. corporate income tax rate, we
of 35% to a flat 21% rate, effective January 1, 2018. As
revalued our ending net deferred tax liabilities as of December 31, 2017 and recognized a provisional tax benefit of $172.0
million. The Tax Reform Act also imposed a tax for a one-time deemed repatriation of post-1986 unremitted foreign earnings
and profit through the year ended December 31, 2017. For the year ended December 31, 2017, we recorded provisional tax
expense related to the deemed repatriation of $111.6 million payable over eight years.

ff

On December 22, 2017, the SEC staff i
ssued SAB 118 to address the application of U.S. GAAP in situations when a
registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable
detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with the SAB 118
guidance, we recognized the provisional tax impacts related to deemed repatriated earnings and the benefit for the revaluation
of deferred tax assets and liabilities in our consolidated financial statements for the year ended December 31, 2017. In
accordance with SAB 118, we finalized the financial reporting impact of the Tax Reform Act in the fourth quarter of 2018.
For the year ended December 31, 2018, we recorded a $4.2 million net tax benefit, which resulted in a 0.6% decrease in the
effective tax rate, as an adjustment to provisional estimates as a result of additional regulatory guidance and changes in
interpretations and assumptions the Company has made as a result of the Tax Reform Act.

For the year ended December 31, 2016, our effective tax rate on continuing operations was 26.7%. The effective tax rate was
impacted by favorable net discrete items totaling $13.6 million, principally related to settlements of uncertain tax matters.

We believe it is reasonably possible during the next twelve months that uncertain tax positions may be settled, which could
result in a decrease in the gross amount of unrecognized tax benefits. This decrease may result in an income tax benefit. Due
to the potential for resolution of federal, state, and foreign examinations and the expiration of various statutes of limitation,
our gross unrecognized tax benefits balance may change within the next twelve months by a range of zero to $12.5 million.
We believe adequate provision has been made for all income tax uncertainties.

Earnings from Continuing Operations

For the year ended December 31, 2018, earnings from continuing operations decreased $155.5 million, or 20.8%, to $591.1
million, or EPS of $3.89, compared with earnings from continuing operations of $746.7 million, or EPS of $4.73, for the year
ended December 31, 2017. Earnings decreased primarily because we did not record any gains from dispositions in 2018
compared to 2017 when we recorded net gains from dispositions of $172.6 million, or EPS of $1.09. In 2018, we recorded a
net tax benefit primarily from the Tax Reform Act of $4.2 million, or EPS of $0.03, whereas in 2017 we recorded a net tax
benefit of $54.9 million, or EPS of $0.35. The 2018 results included after-tax rightsizing and other costs of $58.3 million, or
EPS of $0.38, whereas 2017 included rightsizing and other costs of $34.6 million, or EPS of $0.22. Excluding these items in
both years, earnings from continuing operations increased $91.4 million, or 16.5%, in 2018 as a result of higher earnings due
to increased sales volumes. Diluted earnings per share improved due to the benefit of the share repurchase programs
announced in November 2017.

33

For the year ended December 31, 2017, earnings from continuing operations increased $244.5 million, or 48.7%, to $746.7
million, or EPS of $4.73, compared with earnings from continuing operations of $502.1 million, or EPS of $3.21, for the year
ended December 31, 2016. The 2017 results include a net benefit of $172.6 million, or EPS of $1.09 from dispositions, a net
tax benefit primarily from the Tax Reform Act of $54.9 million, or EPS of $0.35, after-tax rightsizing and other costs of $34.6
million or EPS of $0.22 and a net benefit of $4.6 million, or EPS of $0.03, from a reduction to a previously recorded product
recall accrual.

Discontinued Operations

The results of discontinued operations for December 31, 2018, 2017 and 2016 include the historical results of Apergy prior to
its distribution on May 9, 2018. The years ended December 31, 2018 and 2017 included costs incurred by Dover to complete
the spin-off off
eflected in selling, general and
administrative expenses in discontinued operations. Due to lump-sum payments made in 2018 for Apergy participants in the
Dover U.S. Pension Plan, non-cash settlement costs of approximately $9.2 million were classified within discontinued
operations.

f Apergy amounting to $46.4 million and $15.3 million, respectively, ryy

Refer to Note 5 — Discontinued and Disposed Operations in the Consolidated Financial Statements in Item 8 of this Form
10-K for additional information on disposed and discontinued operations.

Restructuring Activities

2018 Restructuringg Activities

During the year ended December 31, 2018, we executed several programs in order to further optimize operations.
Rightsizing programs in 2018 included 1) alignment of our cost structure in preparation for the Apergy separation, 2) broad-
based selling, general and administrative expense reduction initiatives and 3) initiation of footprint consolidation actions. The
Company incurred $58.5 million of restructuring charges for the year ended December 31, 2018, including a $22.1 million
charge in the fourth quarter of 2018 for rightsizing costs related to the selling, general and administrative expense reduction
initiative which began in the third quarter of 2018 and the footprint consolidation initiative which started in the fourth quarter
of 2018. The restructuring programs are described below.

•

•

•

•

The Engineered Systems segment recorded $21.0 million of restructuring charges related to programs across the
segment focused on headcount reductions and manufacturing plant consolidation.

The Fluids segment recorded $25.7 million of restructuring charges principally related to headcount reductions and
manufacturing plant and facility consolidations, focused on achieving long-term footprint optimization.

The Refrigeration & Food Equipment segment recorded $3.5 million of restructuring charges primarily due to
headcount reductions, product exit and manufacturing plant consolidation.

Corporate recorded $8.2 million of restructuring charges primarily related to headcount reductions.

The Apergy-related rightsizing programs previously announced in the fourth quarter of 2017 were completed in 2018. The
third quarter selling, general and administrative rightsizing programs were substantially completed in 2018 with benefits
realized in the second half of 2018 and expected into 2019. We commenced footprint consolidation initiatives in late 2018
and expect to continue to incur costs through 2020, with partial benefits beginning in 2019 and extending into 2020 and 2021
due to the long nature of the programs.

34

2017 Restructuringg Activities

The Company incurred $52.3 million of restructuring charges for the year ended December 31, 2017, including the programs
described below.

•

•

•

•

The Engineered Systems segment recorded $12.1 million of restructuring charges related to programs across the
segment focused on headcount reductions and various site and product line moves and exits to lower ongoing
operating expenses.

The Fluids segment recorded $16.3 million of restructuring charges as a result of programs and projects across the
segment, principally related to headcount reductions and facility consolidations, principally focused on achieving
acquisition integration benefits.

The Refrigeration & Food Equipment segment recorded restructuring charges of $14.1 million, related to headcount
reductions, facility consolidations and product line exits, primarily within its Refrigeration business to improve
margin performance.

Corporate recorded $9.8 million of restructuring charges primarily related to headcount reductions, corporate office
consolidation and a shared facility exit in South America.

Restructuring initiatives in 2016 included targeted facility consolidations at certain businesses, headcount reductions and
actions taken to optimize the Company's cost structure. We incurred restructuring charges of $25.0 million for the year ended
December 31, 2016 relating to such activities. See Note 10 — Restructuring Activities in the Consolidated Financial
Statements in Item 8 of this Form 10-K for additional details regarding our recent restructuring activities.

35

SEGMENT RESULTS OF OPERATIONS

The summary that follows provides a discussion of the results of operations of each of our three reportable operating
segments (Engineered Systems, Fluids, and Refrigeration & Food Equipment). Each of these segments is comprised of
various product and service offerings that serve multiple end markets. See Note 18 — Segment Information in the
Consolidated Financial Statements in Item 8 of this Form 10-K for a reconciliation of segment revenue, earnings and margin
to our consolidated revenue, earnings from continuing operations and margin. Segment EBITDA and segment EBITDA
margin, which are presented in the segment discussion that follows, are non-GAAP measures and do not purport to be
alternatives to operating income as a measure of operating performance. We believe that these measures are useful to
investors and other users of our financial information in evaluating ongoing operating profitability as they exclude the
depreciation and amortization expense related primarily to capital expenditures and acquisitions that occurred in prior years,
as well as in evaluating operating performance in relation to our competitors. For further information, see "Non-GAAP
Disclosures" at the end of this Item 7.

Engineered Systems

Our Engineered Systems segment is comprised of two platforms, Printing & Identification and Industrials, and is focused on
the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital
textile printing, vehicle service, environmental solutions and industrial end markets.

(dollars in thousands)
Revenue:

Printing & Identification
Industrials

Segment earnings
Segment margin

Segment EBITDA
Segment EBITDA margin

Other measures:
Depreciation and amortization

Bookings

Printing & Identification
Industrials

Backlog

Printing & Identification
Industrials

Components of revenue growth:

Organic growth
Acquisitions
Dispositions
Foreign currency translation
Total revenue growth

Years Ended December 31,

2018

2017

2016

% Change

2018 vs.
2017

2017 vs.
2016

$ 1,162,431
1,580,517
$ 2,742,948

$ 1,094,015
1,573,969
$ 2,667,984

$ 1,022,502
1,424,163
$ 2,446,665

451,270
16.5 %

527,149
19.2 %

$

$

604,484
22.7 %

689,931
25.9 %

$

$

399,209
16.3 %

477,382
19.5 %

6.3 %
0.4 %
2.8 %

7.0 %
10.5 %
9.0 %

(25.3)%

51.4 %

(23.6)%

44.5 %

75,879

$

85,447

$

78,173

(11.2)%

9.3 %

$

$

$

$ 1,158,537
1,751,280
$ 2,909,817

$ 1,114,340
1,624,181
$ 2,738,521

$ 1,026,453
1,418,665
$ 2,445,118

$

$

122,028
438,546
560,574

$

$

129,752
329,575
459,327

$

$

98,924
266,556
365,480

4.0 %
7.8 %
6.3 %

(6.0)%
33.1 %
22.0 %

5.8 %
0.1 %
(4.6)%
1.5 %
2.8 %

8.6 %
14.5 %
12.0 %

31.2 %
23.6 %
25.7 %

5.9 %
6.5 %
(4.2)%
0.8 %
9.0 %

36

2018 Versus 2017

Engineered Systems segment revenue for the year ended December 31, 2018 increased $75.0 million, or 2.8% compared to
the prior year, comprised of broad-based organic growth of 5.8% and a favorable impact from foreign currency translation of
1.5%. This increase was partially offset by a 4.6% decrease from the dispositions of PMI in the first quarter of 2017 and the
consumer and industrial winch business of Warn in the fourth quarter of 2017. Customer pricing favorably impacted revenue
by approximately 1.3% in 2018.

ff

•

•

Printing & Identification revenue (representing 42.4% of segment revenue) increased $68.4 million, or 6.3%,
compared to the prior year. The increase is comprised primarily of organic revenue growth of 4.4% and a favorable
impact from foreign currency translation of 1.7%. Organic revenue growth was led by strong activity in our digital
printing businesses, complemented by growth in our marking and coding businesses.

ff

Industrials revenue (representing 57.6% of segment revenue) increased $6.5 million, or 0.4%, compared to the prior
year. The increase reflects organic revenue growth of 6.8% and a favorable impact of foreign currency translation of
1.3% partially offset by the impact of the PMI and Warn dispositions of 7.6%. Organic revenue growth was broad-
based, with particular strength in our environmental solutions, industrial winch, and defense/commercial aerospace
businesses.

ff

Engineered Systems segment earnings for the year ended December 31, 2018 decreased $153.2 million, or 25.3%, compared
to the prior year. The decline in earnings was impacted by 1) a gain of $205.3 million recognized in 2017 from the sales of
PMI and Warn; 2) lost earnings of $25.6 million, offset by disposition costs of $5.2 million, associated with 2017 divestitures;
and 3) incremental restructuring costs in 2018 of $9.0 million. Excluding these non-operational, non-recurring items, segment
earnings increased by $81.5 million, or 20.8%. This increase was primarily driven by solid conversion on organic volume
growth, favorable pricing and productivity initiatives including the benefits of prior year and current year restructuring
initiatives, as well as the net benefit of an earn-out reversal recorded in the second quarter of 2018. Partially offsetting this
favorable operational performance were increases in material costs, primarily driven by U.S. Section 232 tariffs, most notably
commodity cost increases impacting steel, and Section 301 tariffs. Segment margin decreased from 22.7% to 16.5% as
compared to the prior year primarily due to the gain from the sales of PMI and Warn, lost earnings and disposition costs from
2017 divested businesses and incremental restructuring costs. Excluding these items, margins increased 188 basis points from
ff
15.3% to 17.2 % from the prior year.

Segment bookings for the year ended December 31, 2018 increased 6.3% compared to the prior year. Bookings for our
Industrials platform for the year ended December 31, 2018 increased 7.8%, compared to the prior year, due primarily to
organic growth in our environmental solutions and vehicle services businesses, partially offset by divestiture impacts of Warn
and PMI. Our Printing & Identification bookings for the year ended December 31, 2018 increased 4.0%, compared to the
prior year, driven by strong activity in our marking and coding and digital printing businesses. Segment book-to-bill was
1.06.

dd

2017 Versus 2016

Engineered Systems segment revenue for the year ended December 31, 2017 increased $221.3 million, or 9.0%, compared to
the prior year, primarily driven by acquisition-related growth of 6.5% from RAV aAA
nd Alliance Wireless Technologies
("AWTI") in the fourth quarter 2016 and Caldera in the second quarter of 2017, and broad-based organic growth of 5.9%.
a 4.2%
This increase was also driven by a favorable impact from foreign currency translation of 0.8%, partially offset by
impact from dispositions. Customer pricing favorably impacted revenue by approximately 0.3% in 2017.

ff

•

Printing & Identification revenue (representing 41.0% of 2017 segment revenue) increased $71.5 million, or 7.0%,
compared to the prior year. Organic revenue of 4.6%, acquisition-related growth of 0.9% from Caldera and a
favorable impact from foreign currency translation of 1.5% all contributed to year over year growth. Organic
revenue growth was driven by our marking and coding and digital printing businesses.

37

•

Industrials revenue (representing 59.0% of 2017 segment revenue) increased $149.8 million, or 10.5%, compared to
the prior year. The increase reflects acquisition-related growth of 10.5% from the RAV aAA nd AWTI acquisitions,
organic revenue growth of 6.8% and a favorable impact from foreign currency translation of 0.4%. This increase
was partially offset by the impact of dispositions of 7.2%. Organic revenue growth was broad-based, with particular
strength in our environmental solutions business.

ff

Engineered Systems segment earnings for the year ended December 31, 2017 increased $205.3 million, or 51.4%, compared
to the prior year. The increase was primarily driven by $193.4 million of incremental gains on the sale of divested businesses
including Warn and PMI in 2017 and THI in 2016, partially offset by $17.3 million of lower earnings due to divested
businesses, $8.0 million of incremental restructuring expenses and $5.2 million of Warn divestiture costs. Excluding these
items, segment earnings increased $42.2 million or 11.3% compared to the prior year driven by leverage on organic growth in
our marking and coding and industrial businesses, partially offset by increases in material costs, most notably steel, and key
strategic investments. Segment margin increased from 16.3% to 22.7% as compared to the prior year primarily due to the
2017 gains on dispositions.

38

Fluids

Our Fluids segment, serving the Fueling & Transport, Pumps, and Process Solutions end markets, is focused on the safe
handling of critical fluids, and providing critical components to the retail fueling, chemical, hygienic, oil and gas, power
generation and industrial end markets. In the second quarter of 2018, we aligned our financial reporting around these three
key end markets to provide more detailed information after the spin-off of the Apergy business.

(dollars in thousands)
Revenue:

Fueling & Transport
Pumps
Process Solutions

Total

Segment earnings
Segment margin

Segment EBITDA
Segment EBITDA margin

Other measures:

Depreciation and amortization
Bookings
Backlog

Components of revenue growth:

Organic growth
Acquisitions
Dispositions
Foreign currency translation
Total revenue growth

2018 Versus 2017

Years Ended December 31,

2018

2017

2016

% Change

2018 vs.
2017

2017 vs.
2016

$ 1,465,590
676,027
655,721
$ 2,797,338

$ 1,338,062
618,224
598,779
$ 2,555,065

$

848,109
577,048
551,893
$ 1,977,050

$

$

$

$

$

$

389,804
13.9 %

530,248
19.0 %

140,444
2,899,740
523,791

368,630
14.4 %

504,451
19.7 %

135,821
2,612,763
459,746

$

$

$

246,545
12.5 %

347,811
17.6 %

101,266
1,970,428
394,399

9.5 %
9.3 %
9.5 %
9.5 %

57.8 %
7.1 %
8.5 %
29.2 %

5.7 %

49.5 %

5.1 %

45.0 %

3.4 %
11.0 %
13.9 %

8.7 %
0.7 %
(0.2)%
0.3 %
9.5 %

34.1 %
32.6 %
16.6 %

4.0 %
25.1 %
— %
0.1 %
29.2 %

Fluids segment revenue for the year ended December 31, 2018 increased $242.3 million, or 9.5%, compared to the prior year,
attributable to organic growth of 8.7%, acquisition-related growth of 0.7% and a favorable foreign currency translation
impact of 0.3%. This increase was partially offset by a 0.2% decrease from dispositions. The organic growth was principally
driven by industrial pump activity and solid biopharma and medical markets, along with continued strength in retail fueling,
especially in the Asia Pacific region. Customer pricing favorably impacted revenue by approximately 0.8% in 2018.

•

•

Fueling & Transport revenue (representing 52.4% of segment revenue) increased $127.5 million, or 9.5%, compared
to the prior year, primarily driven by continued strong international retail fueling activity, specifically in the Asia
Pacific region and improving U.S. based Europay, Mastercard and Visa (EMV) activity. Transport revenue improved
over the prior year and the rail business experienced strong growth, in part, due to softer volumes experienced in last
year’s second half and the continued rebound of aftermarket volumes.

Pumps revenue (representing 24.2% of segment revenue) increased $57.8 million, or 9.3%, compared to the prior
year. This increase reflects growth in the oil and gas markets in North America. Additionally, strong activity in other
industrial markets, specifically biopharma and medical businesses, continue to trend positively.

39

•

Process Solutions revenue (representing 23.4% of segment revenue) increased $56.9 million, or 9.5%, compared to
the prior year. This revenue increase was driven by the acquisition of Ettlinger Group ("Ettlinger"), strength in our
Asia Pacific markets, continued infrastructure spending by our original equipment manufacturer ("OEM")
customers, and polymer plant demand increase.

Fluids segment earnings for the year ended December 31, 2018 increased $21.2 million, or 5.7%, compared to the prior year,
primarily driven by our Pumps and Process Solutions end markets. This growth was partially offset by increased material
costs due, in part, to U.S. Section 232 and 301 tariff eff
xposure, costs associated with the exit of a minority interest investment,
higher restructuring costs and the negative productivity impacts of footprint consolidation and supply chain disruptions in our
Fueling & Transport end market. Segment margin decreased 50 basis points primarily due to one-time cost impacts driven by
footprint consolidations and temporary supply chain disruptions impacting production. Excluding these items and incremental
rightsizing and other impacts, segment earnings increased $64.1 million, or 17.3%, and segment margin increased 100 basis
points for the year ended December 31, 2018 compared to the prior year.

TT

Bookings for the year ended December 31, 2018 increased 11.0% compared to the prior year, reflecting organic growth of
7.8%, a favorable impact from foreign currency translation of 2.6%, and acquisition-related growth of 0.8% offset by
disposition related decline of 0.2%. Book to bill was 1.04.

ff

2017 Versus 2016

Fluids segment revenue for the year ended December 31, 2017 increased $578.0 million, or 29.2%, compared to the prior
year, comprised of acquisition-related growth of 25.1% primarily due to Wayne, organic revenue growth of 4.0% and a
favorable foreign currency translation impact of 0.1%. Customer pricing did not have a significant impact to revenue in 2017.

•

•

•

TT

Fueling & Transport revenue (representing 52.4% of 2017 segment revenue) increased $490.0 million
, or 57.8%,
compared to the prior year. The increase was primarily driven by acquisition-related growth from Wayne, and
improving European and Asian retail fueling markets, partially offset by weak transport markets.

Pumps revenue (representing 24.2% of 2017 segment revenue) increased $41.2 million, or 7.1%, compared to the
prior year, largely reflecting increased industrial demand and biopharma and medical businesses growth in North
America and Asia.

Process Solutions revenue (representing 23.4% of 2017 segment revenue) increased $46.9 million, or 8.5%,
compared to the prior year. This revenue increase was primarily driven by new product development, and solid
market activity relating to infrastructure spending by our OEM customers and polymer plant demand increase.

Fluids segment earnings for the year ended December 31, 2017 increased $122.1 million, or 49.5%, compared to the prior
year, primarily driven by volume growth, including acquisitions, productivity gains and the benefits of the retail fueling
integration. Segment year over year earnings also includes a benefit from a reduction of $7.2 million to a voluntary product
recall accrual compared to a $23.2 million charge in 2016. Segment margin increased overall by 190 basis points.

40

Refrigeration & Food Equipment

Our Refrigeration & Food Equipment segment is a provider of innovative and energy efficient equipment and systems
serving the commercial refrigeration and food equipment end markets.

(dollars in thousands)
Revenue:

Refrigeration
Food Equipment

Total

Segment earnings
Segment margin

Segment EBITDA
Segment EBITDA margin

Other measures:

Depreciation and amortization
Bookings
Backlog

Components of revenue decline:
Organic (decline) growth
Acquisitions
Dispositions
Foreign currency translation
Total revenue decline

2018 Versus 2017

Years Ended December 31,

% Change

2018

2017

2016

2018 vs.
2017

2017 vs.
2016

$ 1,197,072
256,021
$ 1,453,093

$ 1,305,530
293,575
$ 1,599,105

$ 1,261,633
358,706
$ 1,620,339

(8.3)%
(12.8)%
(9.1)%

3.5 %
(18.2)%
(1.3)%

$

$

$

$

$

$

136,119
9.4 %

196,596
13.5 %

60,477
1,474,717
268,991

193,822
12.1 %

251,029
15.7 %

57,207
1,582,606
244,972

$

$

$

283,628
17.5 %

348,646
21.5 %

65,018
1,645,807
258,329

(29.8)%

(31.7)%

(21.7)%

(28.0)%

5.7 %
(6.8)%
9.8 %

(7.9)%
0.7 %
(2.6)%
0.7 %
(9.1)%

(12.0)%
(3.8)%
(5.2)%

3.4 %
— %
(5.1)%
0.4 %
(1.3)%

Refrigeration & Food Equipment segment revenue for the year ended December 31, 2018 decreased $146.0 million, or 9.1%,
compared to the prior year, reflecting an organic revenue decline of 7.9%, the impact from product line dispositions of 2.6%,
partially offset by acquisition-related growth of 0.7% and a favorable impact from foreign currency translation of 0.7%.
Customer pricing favorably impacted revenue by approximately 0.8% in 2018.

•

•

Refrigeration revenue (representing 82.4% of segment revenue) decreased $108.5 million, or 8.3%, compared to the
prior year, principally driven by weak capital spending and deferred remodel programs by key U.S. retail
refrigeration customers, as well as certain product line exits. The retail refrigeration shortfall was partially offset by
increased demand for heat exchanger products, most notably in Europe.

Food Equipment revenue (representing 17.6% of segment revenue) decreased $37.6 million, or 12.8%, compared to
the prior year, due to project timing and market softness in our can shaping equipment and foodservice equipment
businesses, partially offset by the addition of sales from our Rosario acquisition.

Refrigeration & Food Equipment segment earnings for the year ended December 31, 2018 decreased $57.7 million, or 29.8%,
compared to the prior year. Segment margin decreased to 9.4% from 12.1% in the prior year, as benefits from rightsizing and
other restructuring actions, productivity gains and lower restructuring costs were more than offset by volume reductions,
unfavorable product mix in our can shaping business, costs associated with product re-design and SKU rationalization in our
refrigeration door system product line and a favorable $1.7 million one-time disposition gain in 2017 due to a working capital
adjustment. Segment margin was also impacted by rising material costs, most notably steel, inclusive of commodity pricing
impacts attributable to U.S. Section 232 tariffs.

41

Bookings for the year ended December 31, 2018 decreased 6.8% compared to the prior year, primarily driven by weak retail
refrigeration markets and the impact of dispositions. Organically, byy ookings decreased 5.6%. Ending backlog was 9.8% higher
than prior year, driven by fourth quarter bookings growth in our retail refrigeration and can shaping equipment businesses.
Book to bill was 1.01.

2017 Versus 2016

Refrigeration & Food Equipment segment revenue for the year ended December 31, 2017 decreased $21.2 million, or 1.3%,
compared to the prior year, primarily driven by a 5.1% decline due to dispositions, offset, in part, by organic revenue growth
ff
of 3.4% and a favorable impact from foreign currency translation of 0.4%. Customer pricing favorably impacted revenue by
approximately 1.7% in 2017.

•

•

Refrigeration revenue (representing 81.6% of 2017 segment revenue) increased $43.9 million, or 3.5%, compared to
the prior year, primarily driven by growth in CO2 and industrial refrigeration systems as well as strong demand for
heat exchanger products, especially in Asia.

Food Equipment revenue (representing 18.4% of 2017 segment revenue) decreased $65.1 million, or 18.2%,
compared to the prior year, primarily due to the disposition of Tipper Tie in the fourth quarter of 2016. Excluding
divestitures, revenues increased $17.2 million, or 6.2%, compared to prior year driven by strong shipments in can-
shaping equipment.

Refrigeration & Food Equipment segment earnings for the year ended December 31, 2017 decreased $89.8 million, or 31.7%,
compared to the prior year, primarily related to the $85.0 million gain on sale of Tipper Tie in 2016 as well as $10.1 million
of lower earnings in 2017 due to the divestiture, an increase of $13.1 million of restructuring expenses in 2017 compared to
the prior year, and a $4.0 million loss on sale of a non-US business in 2017. Segment margin decreased 540 basis points to
12.1% primarily driven by the aforementioned gain on sale of Tipper Tie in 2016 and increase in restructuring expenses.
Excluding the impact of dispositions and restructuring, segment earnings increased $20.8 million, or 11.0%, and segment
margins increased 80 basis points reflecting increased organic volume and improved productivity which more than offset
increased materials cost, most notably steel.

42

FINANCIAL CONDITION

We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities.
Significant factors affecting liquidity are: cash flows generated from operating activities, capital expenditures, acquisitions,
dispositions, dividends, repurchase of outstanding shares, adequacy of available commercial paper and bank lines of credit
and the ability to attract long-term capital with satisfactory terms. We generate substantial cash from the operations of our
businesses and remain in a strong financial position, with sufficient liquidity available for reinvestment in existing businesses
and strategic acquisitions.

Cash Flow Summary

The following table is derived from our Consolidated Statements of Cash Flows:

Cash Flows from Continuing Operations (in thousands)
Net cash flows provided by (used in):

Years Ended December 31,
2017

2018

2016

Operating activities
Investing activities
Financing activities

Operating Activities

$

$

789,193
(245,480)
(897,838)

739,409
208,335
(592,933)

$

734,596
(1,480,742)
634,336

Cash provided by operating activities for the year ended December 31, 2018 increased $49.8 million compared to 2017. This
increase was driven primarily by higher continuing earnings of $46.9 million, excluding non-cash activity from depreciation
and amortization and gain on sale of businesses, and significantly lower tax payments in the current year due to a lower tax
rate in 2018 as well as tax payments made in the prior year for dispositions. The increase was offset by higher investments in
working capital relative to the prior year in support of organic bookings and timing of year end revenue.

Cash provided by operating activities for the year ended December 31, 2017 increased $4.8 million compared to 2016. This
increase was primarily driven by higher continuing earnings of $171.6 million, excluding non-cash activity from depreciation
and amortization and gain on sale of businesses. The increase was largely offset by timing of year end revenue and increased
tax payments of $167.6 million, which includes $69.0 million of federal and state tax payments for dispositions.

Pension and Other Post-Retirement Activity: Total cash used in conjunction with pension plans during 2018 was $25.9
million including contributions to our international pension plans and payments of benefits under our non-qualified
supplemental pension plan.

The funded status of our U.S. qualified defined benefit pension plans is dependent upon many factors, including returns on
invested assets, the level of market interest rates and the level of funding. We contribute cash to our plans at our discretion,
subject to applicable regulations and minimum contribution requirements. Due to the overfunded status of this plan, the
Company did not make contributions in 2018, 2017 or 2016 and expects to make minimal contributions, if any, in the near
term.

Our international pension obligations are located in regions where it is not economically advantageous to pre-fund the plans
due to local regulations. Total cash contributions to ongoing international defined benefit pension plans in 2018, 2017 and
2016 totaled $6.0 million, $8.0 million and $8.4 million, respectively. In 2019, we expect to contribute approximately $5.4
million to our non-U.S. plans. Our non-qualified supplemental pension plans are funded through Company assets as benefits
are paid. In 2018, a total of $19.4 million in benefits were paid under these plans. See Note 16 — Employee Benefit Plans in
the Consolidated Financial Statements in Item 8 of this Form 10-K for further discussion regarding our post-retirement plans.

43

Adjusted Working Capital: We believe adjusted working capital (a non-GAAP measure calculated as accounts receivable,
plus inventory, less accounts payable) provides a meaningful measure of our operational results by showing changes caused
solely by revenue.

Adjusted Working Capital (dollars in thousands)
Accounts receivable
Inventories
Less: Accounts payable
Adjusted working capital

December 31, 2018 December 31, 2017
1,183,514
$
677,043
882,007
978,550

1,231,859
748,796
969,531
1,011,124

$

$

$

Adjusted working capital increased from December 31, 2017 by $32.6 million, or 3.3%, to $1.0 billion at December 31,
2018, which reflected an increase in receivables of $48.3 million, an increase in inventory of $71.8 million and an increase in
accounts payable of $87.5 million. Excluding acquisitions, dispositions and the effects of foreign currency translation,
adjusted working capital increased by $66.1 million, or 6.8%, and decreased $51.2 million, or 4.9%, for the years ended
December 31, 2018 and 2017, respectively.

Investing Activities

Cash flow from investing activities is derived from cash inflows from proceeds from sales of businesses, property, plant and
equipment and short-term investments, partially offset by cash outflows for capital expenditures and acquisitions. The
majority of the activity in investing activities was comprised of the following:

•

•

•

Acquisitions: In 2018, we deployed $68.6 million to acquire two businesses. In comparison, we acquired two
businesses in 2017 for an aggregate purchase price of approximately $27.2 million. Total acquisition spend in 2016
was $1,561.7 million and was comprised of six businesses. See Note 4 — Acquisitions in the Consolidated Financial
Statements in Item 8 of this Form 10-K for additional information with respect to recent acquisitions.

Proceeds from sale of businesses: In 2018, we generated cash proceeds of $3.9 million, primarily due to cash
received on a sale in the prior year. Cash proceeds of $372.7 million in 2017 were primarily from the sale of PMI
and Warn. In 2016, we generated cash proceeds of $206.4 million primarily from the sale of THI and Tipper Tie.

Capital spending: Capital expenditures, primarily to support productivity and new product launches, were $171.0
million in 2018, $170.1 million in 2017 and $139.6 million in 2016. Our capital expenditures remained relatively
flat in 2018 compared to 2017, but increased $30.5 million in 2017 compared to 2016, primarily within Fluids.

We anticipate that capital expenditures and any additional acquisitions we make in 2019 will be funded from available cash
and internally generated funds and, if necessary, through the issuance of commercial paper, or by accessing the public debt or
equity markets.

Financing Activities

Our cash flow from financing activities generally relates to the use of cash for purchases of our common stock and payment
of dividends, offset by net borrowing activity and proceeds from the exercise of share-based awards. The majority of
financing activity was attributed to the following:

•

Cash received from Apergy, net of cash distributed: In connection with the separation of Apergy from Dover, Apergy
incurred borrowings to fund a one-time cash payment of $700.0 million to Dover in connection with Dover's
contribution to Apergy of stock and assets relating to the businesses spun off with Apergy. Dover received net cash
of $689.6 million upon separation, which reflects $10.4 million of cash held by Apergy at the time of distribution
and retained by it in in connection with its separation from Dover.

44

•

•

•

•

During the
rr
Repurchase of common stock, including prepayment under an accelerated share rrr
epurchase program:
year ended December 31, 2018, we used $45.0 million to repurchase 440,608 shares under our January 2015
authorization, which expired on January 9, 2018. Under a new share repurchase authorization adopted by the Board
of Directors in February 2018, we repurchased 1,753,768 shares of common stock at a total cost of $150.0 million
and used $700 million to repurchase a total of 8,542,566 shares through an accelerated share repurchase transaction
which concluded in December 2018. We funded the accelerated share repurchase primarily with funds received from
Apergy in connection with the consummation of the Apergy spin-off. For the year ended December 31, 2017, we
used $105.0 million to repurchase 1,059,682 shares under the January 2015 authorization.

Long-term debt, commercial paper and notes payable, net: During 2018, we repaid the Company's $350.0 million
5.45% notes, which matured on March 15, 2018, and decreased net borrowings from commercial paper by $10.7
million. During the 2017 period, we decreased net borrowings from commercial paper by $182.6 million with the
cash proceeds from the sale of PMI and Warn. During 2016, we increased net borrowings from commercial paper by
ovember 2016, we issued €600.0
$254.8 million, primarily for purposes of funding acquisitions. Additionally, in N
million of 1.25% euro-denominated notes due in 2026. The proceeds of $656.4 million from this issuance, net of
discounts and issuance costs, were primarily used for payment of a portion of the purchase price for the acquisition
of Wayne.

yy

Dividend payments: Total dividend payments to common shareholders were $283.6 million in 2018, $284.0 million
in 2017 and $267.7 million in 2016. Our dividends paid per common share increased 4% to $1.90 per share in 2018
compared to $1.82 per share in 2017, which represents the 63rd consecutive year that our dividend has increased.
The number of common shares outstanding decreased from 2017 to 2018 due to our share repurchase programs.

Net Proceeds from the exercise of share-based awards: There were no proceeds from the exercise of share-based
awards in 2018 and 2017. With the adoption of Accounting Standards Update 2016-09, Compensation - Stock
Compensation (Topic 718), beginning January 1, 2017 this activity is reflected in operating activities for the
years ended December 31, 2018 and 2017, and we have elected to reflect this cash flow presentation prospectively.
Proceeds from the exercise of share-based awards were $8.4 million in 2016. Payments to settle tax obligations on
share exercises were $46.3 million, $18.4 million and $15.7 million in 2018, 2017 and 2016, respectively. These tax
payments generally increase or decrease correspondingly to the number of exercises in a particular year.

Cash Flows from Discontinued Operations

Our cash flows from discontinued operations for the years ended December 31, 2018, 2017 and 2016 (used) generated
$(14.3) million, $48.5 million and $103.5 million, respectively. These cash flows primarily reflect the operating results of
Apergy prior to its separation during the second quarter of 2018. Cash flows used in discontinued operations for the year
ended December 31, 2018 primarily reflects cash payments of spin-off cff
osts of $46.4 million and capital expenditures of
$23.7 million, partially offset by cash provided by operations of approximately $55.4 million. Cash flows generated for the
years ended December 31, 2017 and 2016 primarily reflects cash provided by operating activities of approximately $96.2
million and $128.3 million, respectively, pyy artially offset by capital expenditures.

Liquidity and Capital Resources

Free Cash Flow

In addition to measuring our cash flow generation and usage based upon the operating, investing and financing classifications
included in the Consolidated Statements of Cash Flows, we also measure free cash flow (a non-GAAP measure) which
represents net cash provided by operating activities minus capital expenditures. We believe that free cash flow is an important
measure of operating performance because it provides management and investors a measurement of cash generated from
operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions,
paying dividends, repaying debt and repurchasing our common stock.

45

The following table reconciles our free cash flow to cash flow provided by operating activities:

Free Cash Flow (dollars in thousands)
Cash flow provided by operating activities
Less: Capital expenditures
Free cash flow
Free cash flow as a percentage of revenue

Years Ended December 31,
2017

2016

2018

$

$

789,193
(170,994)
618,199
8.8 %

$

$

739,409
(170,068)
569,341
8.3 %

$

$

734,596
(139,578)
595,018
9.8 %

For 2018, we generated free cash flow of $618.2 million, representing 8.8% of revenue. Free cash flow in 2017 was $569.3
million or 8.3% of revenue, and $595.0 million, or 9.8% of revenue in 2016. The full year increase in 2018 free cash flow
reflects higher cash flow provided by operations due to higher operating earnings, as previously mentioned. However, the
2018 free cash flow includes cash payments related to restructuring initiatives of $52.0 million, whereas the restructuring
payments were $22.6 million in 2017. The 2017 decrease in free cash flow compared to 2016 reflects higher capital
expenditures, primarily within our Fluids segment.

Capitalization

We use commercial paper borrowings for general corporate purposes, including the funding of acquisitions and the
repurchase of our common stock. We maintain a $1.0 billion five-year unsecured committed revolving credit facility (the
"Credit Agreement") with a syndicate of banks which expires on November 10, 2020. This facility is used primarily as
liquidity back-up for our commercial paper program. We have not drawn down any loans under this facility nor do we
anticipate doing so. If we were to draw down a loan, at our election, the loan would bear interest at a base rate plus an
applicable margin. Under this facility, we are required to pay a facility fee and to maintain an interest coverage ratio of
consolidated EBITDA to consolidated net interest expense of not less than 3.0 to 1. We were in compliance with this covenant
and our other long-term debt covenants at December 31, 2018 and had a coverage ratio of 9.6 to 1.0. We are not aware of any
potential impairment to our liquidity and expect to remain in compliance with all of our debt covenants.

On March 15, 2018, the outstanding 5.45% notes with a principal value of $350.0 million matured. The repayment of
debt was funded by the Company's commercial paper program and through a reduction of existing cash balances.

We also have a current shelf registration statement filed with the SEC that allows for the issuance of additional debt securities
that may be utilized in one or more offerings on terms to be determined at the time of the offering. Net proceeds of any
offering would be used for general corporate purposes, including repayment of existing indebtedness, capital expenditures
and acquisitions.

At December 31, 2018, our cash and cash equivalents totaled $396.2 million, of which approximately $247.5 million was
held outside the United States. At December 31, 2017, our cash and cash equivalents totaled $754.0 million, of which $609.8
million was held outside the United States. The reduction in cash held outside the United States was primarily the result of
repatriating $534.4 million to the United States during the year ended December 31, 2018. Cash and cash equivalents are held
primarily in bank deposits with highly rated banks. We regularly hold cash in excess of near-term requirements in bank
deposits or invest the funds in government money market instruments or short-term investments, which consist of investment
grade time deposits with original maturity dates at the time of purchase of no greater than three months.

46

We utilize the net debt to net capitalization calculation (a non-GAAP measure) to assess our overall financial leverage and
capacity and believe the calculation is useful to investors for the same reason. Net debt represents total debt minus cash and
cash equivalents. Net capitalization represents net debt plus stockholders' equity. The following table provides a
reconciliation of net debt to net capitalization to the most directly comparable GAAP measures:

Net Debt to Net Capitalization Ratio
(dollars in thousands)
Current maturities of long-term debt
Commercial paper
Notes payable and current maturities of long-term debt
Long-term debt
Total debt
Less: Cash and cash equivalents
Net debt
Add: Stockholders' equity
Net capitalization
Net debt to net capitalization

$

— $

December 31, 2018 December 31, 2017 December 31, 2016
6,950
$
407,600
414,550
3,206,637
3,621,187
(349,146)
3,272,041
3,799,746
7,071,787
46.3 %

350,402
230,700
581,102
2,986,702
3,567,804
(753,964)
2,813,840
4,383,180
7,197,020
39.1 %

220,318
220,318
2,943,660
3,163,978
(396,221)
2,767,757
2,768,666
5,536,423
50.0 %

$

$

$

Our net debt to net capitalization ratio increased to 50.0% at December 31, 2018 compared to 39.1% at December 31, 2017.
The increase in this ratio was driven primarily by the reduction of our net capitalization of $1.7 billion for the period
primarily due to the reduction in stockholders' equity as a result of the $906.8 million distribution of Apergy, $895.0 million
in share repurchases and $283.6 million of dividends paid, offset by $570.3 million of current earnings. Net debt decreased
$46.1 million during the period primarily due to a reduction in current maturities of long term debt as a result of the
repayment of $350.0 million note on March 15, 2018, partially offset by a reduction in cash levels to fund dividends and
other operating purposes.

Our net debt to net capitalization ratio decreased to 39.1% at December 31, 2017 compared to 46.3% at December 31, 2016
primarily due to changes in net debt during the period. Net debt decreased $458.2 million as a result of $404.8 million higher
cash and cash equivalents. The decrease was also impacted by the repayment of commercial paper partially offset by foreign
currency translation on our euro-denominated notes.

Our ability to obtain debt financing at comparable risk-based interest rates is partly a function of our existing cash-flow-to-
debt and debt-to-capitalization levels as well as our current credit standing. Our credit ratings, which are independently
developed by the respective rating agencies, were as follows as of December 31, 2018:

Moody's
Standard & Poor's

Short Term
Rating
P-2
A-2

Long Term
Rating
Baa1
BBB+

Outlook
Stable
Stable

Operating cash flow and access to capital markets are expected to satisfy our various cash flow requirements, including
acquisitions and capital expenditures. Acquisition spending and/or share repurchases could potentially increase our debt.

We believe that existing sources of liquidity are adequate to meet anticipated funding needs at current risk-based interest rates
for the foreseeable future.

Off-Balance Sheet Arrangements and Contractual Obligations

As of December 31, 2018, we had approximately $144.5 million outstanding in letters of credit with financial institutions,
which expire on various dates in 2019 through 2028. These letters of credit are primarily maintained as security for
insurance, warranty and other performance obligations. In general, we would only be liable for the amount of these
guarantees in the event of default in the performance of our obligations, the probability of which we believe is remote.

47

We have also provided typical indemnities in connection with sales of certain businesses and assets, including representations
and warranties and related indemnities for environmental, health and safety, tax and employment matters. We do not have any
material liabilities recorded for these indemnifications and are not aware of any claims or other information that would give
rise to material payments under such indemnities.

A summary of our consolidated contractual obligations and commitments as of December 31, 2018 and the years when these
obligations are expected to be due is as follows:

Payments Due by Period

(in thousands)
Long-term debt (1)
Interest payments (2)
Rental commitments
Purchase obligations
Capital leases
Supplemental and post-retirement benefits (3)
Income tax payable - deemed repatriation
tax (4)
Unrecognized tax benefits (5)
Total obligations
_________

$

Total
$2,943,660
1,364,672
194,873
62,045
11,383
89,073

Less
than 1
Year

1-3 Years
— $ 789,569
207,967
68,016
289
3,435
21,582

112,439
49,009
61,747
1,802
15,722

More than
5 Years

3-5 Years
$

— $2,154,091
872,562
42,087
—
—
33,601

171,704
35,761
9
6,146
18,168

$

Other
—
—
—
—
—
—

54,304
112,299
$4,832,309

1,875
—

8,056
—
$ 242,594 $1,098,914

44,373
—
$ 276,161

—
—
— 112,299
$3,102,341 $112,299

(1) See Note 11 — Borrowings and Lines of Credit to the Consolidated Financial Statements. Amounts represent principal payments for

all long-term debt, including current maturities, net of unamortized discounts and deferred issuance costs.

(2) Amounts represent estimate of future interest payments on long-term debt using the interest rates in effect at December 31, 2018.
(3) Amounts represent estimated benefit payments under our unfunded supplemental and post-retirement benefit plans and our unfunded
non-U.S. qualified defined benefit plans. See Note 16 — Employee Benefit Plans to the Consolidated Financial Statements. We also
expect to contribute approximately $5.4 million to our non-U.S. qualified defined benefit plans in 2019, which amount is not
reflected in the above table.

(4) Amounts represent a tax imposed by the Tax Reform Act for a one-time deemed repatriation of unremitted earnings of foreign

subsidiaries, including current payable.

(5) Due to the uncertainty of the potential settlement of future unrecognized tax benefits, we are unable to estimate the timing of the

related payments, if any, that will be made subsequent to 2018. These amounts do not include the potential indirect benefits resulting
from deductions or credits for payments made to other jurisdictions.

Financial Instruments and Risk Management

The diverse nature of our businesses’ activities necessitates the management of various financial and market risks, including
those related to changes in interest rates, foreign currency exchange rates and commodity prices. We periodically use
derivative financial instruments to manage some of these risks. We do not hold or issue derivative instruments for trading or
speculative purposes. We are exposed to credit loss in the event of nonperformance by counterparties to our financial
instrument contracts; however, nonperformance by these counterparties is considered unlikely as our policy is to contract
with highly-rated, diversified counterparties.

Interest Rate Exposure

As of December 31, 2018 and during the three year period then ended, we did not have any open interest rate swap contracts.
However, we may in the future enter into interest rate swap agreements to manage our exposure to interest rate changes. We
issue commercial paper, which exposes us to changes in variable interest rates; however, maturities are typically three months
or less so a change in rates over this period would not have a material impact on our pre-tax earnings.

We consider our current risk related to market fluctuations in interest rates to be minimal since our debt is largely long-term
and fixed-rate in nature. Generally, the fair market value of fixed-interest rate debt will increase as interest rates fall and
decrease as interest rates rise. A 100 basis point increase in market interest rates would decrease the 2018 year-end fair value
of our long-term debt by approximately $781.4 million. However, since we have no plans to repurchase our outstanding

48

fixed-rate instruments before their maturities, the impact of market interest rate fluctuations on our long-term debt does not
affect our results of operations or financial position.

Foreign Currency Exposure

We conduct business in various non-U.S. countries, including Canada, substantially all of the European countries, Mexico,
Brazil, Argentina, China, India and other Asian countries. Therefore, we have foreign currency risk relating to receipts from
customers, payments to suppliers and intercompany transactions denominated in foreign currencies. We will occasionally use
derivative financial instruments to offset such risks, when it is believed that the exposure will not be limited by our normal
operating and financing activities. We have formal policies to mitigate risk in this area by using fair value and/or cash flow
hedging programs.

Changes in the value of the currencies of the countries in which we operate affect our results of operations, financial position
and cash flows when translated into U.S. dollars, our reporting currency. The strengthening of the U.S. dollar could result in
unfavorable translation effects as the results of foreign operations are translated into U.S. dollars. We have generally accepted
the exposure to exchange rate movements relative to our investment in non-U.S. operations. We may, fyy rom time to time, for a
specific exposure, enter into fair value hedges.

ff

Additionally, tyy he Company has designated the €300 million and €600 million of euro-denominated notes issued December 4,
2013 and November 9, 2016, respectively, ayy s a hedge of a portion of its net investment in euro-denominated operations. Due
to the high degree of effectiveness between the hedging instruments and the exposure being hedged, fluctuations in the value
of the euro-denominated debt due to exchange rate changes are offset by changes in the net investment. Accordingly, cyy hanges
in the value of the euro-denominated debt are recognized in the cumulative translation adjustment section of other
comprehensive income (loss) to offset changes in the value of the net investment in euro-denominated operations. Due to the
fluctuations of the euro relative to the U.S. dollar, the U.S. dollar equivalent of this debt increases or decreases, resulting in
the recognition of a gain of $45.2 million and a loss of $125.3 million in other comprehensive income for the years ended
December 31, 2018 and 2017, respectively.

Commodity Price Exposure

Certain of our businesses are exposed to volatility in the prices of certain commodities, such as aluminum, steel, copper and
various precious metals, among others. Our primary exposure to commodity pricing volatility relates to the use of these
materials in purchased component parts or the purchase of raw materials. When possible, we maintain long-term fixed price
contracts on raw materials and component parts; however, we are prone to exposure as these contracts expire. We may, fyy romff
time to time, for a specific exposure, enter into cash flow hedges to mitigate our risk to commodity pricing; however, such
contracts outstanding at December 31, 2018 were not significant.

Critical Accounting Policies and Estimates

Our consolidated financial statements and related public financial information are based on the application of GAAP. GPP AAP
requires the use of estimates, assumptions, judgments and subjective interpretations of accounting principles that have an
impact on the assets, liabilities, revenue and expense amounts we report. These estimates can also affect supplemental
information contained in our public disclosures, including information regarding contingencies, risk and our financial
condition. The significant accounting policies used in the preparation of our consolidated financial statements are discussed in
Note 1 — Description of Business and Summary of Significant Accounting Policies in the Consolidated Financial Statements
in Item 8 of this Form 10-K. The accounting assumptions and estimates discussed in the section below are those that we
consider most critical to an understanding of our financial statements because they inherently involve significant judgments
and estimates. We believe our use of estimates and underlying accounting assumptions conforms to GAAP and is consistently
applied. We review valuations based on estimates for reasonableness on a consistent basis.

ff

Revenue Recognition - Effective January 1, 2018, we adopted Accounting Standard Codification ("ASC")
Topic 606,
Revenue from Contracts with Customers ("Topic 606” or “ASC 606”). Under Topic 606, a contract with a customer is an
agreement which both parties have approved, that creates enforceable rights and obligations, has commercial substance and
where payment terms are identified and collectability is probable. Once we enter a contract, it is evaluated to identify
performance obligations. For each performance obligation, revenue is recognized as control of promised goods or services
transfers to the customer in an amount that reflects the consideration we expect to receive in exchange for those goods or

49

services. The amount of revenue recognized takes into account variable consideration, such as discounts and volume rebates.
The majority of our revenue is generated through the manufacture and sale of a broad range of specialized products and
components, with revenue recognized upon transfer of title and risk of loss, which is generally upon shipment. Service
revenue represents less than 5% of our total revenue and is recognized as the services are performed. In limited cases, our
revenue arrangements with customers require delivery, iyy nstallation, testing, certification, or other acceptance provisions to be
satisfied before revenue is recognized. We include shipping costs billed to customers in revenue and the related shipping costs
in cost of goods and services.

Inventories - Inventories for the majority of our subsidiaries, including all international subsidiaries, are stated at the lower of
cost, determined on the first-in, first-out (FIFO) basis, or net realizable value. Other domestic inventories are stated at cost,
determined on the last-in, first-out (LIFO) basis, which is less than market value. Under certain market conditions, estimates
and judgments regarding the valuation of inventories are employed by us to properly value inventories.

Goodwill and Other Intangible Assets - We have significant goodwill and intangible assets on our consolidated balance
sheets as a result of current and past acquisitions. The valuation and classification of these assets and the assignment of useful
lives involve significant judgments and the use of estimates. In addition, the testing of goodwill and intangibles for
impairment requires significant use of judgment and assumptions, particularly as it relates to the determination of fair market
value. Our indefinite-lived intangible assets and reporting units are tested and reviewed for impairment on an annual basis
during the fourth quarter, or more frequently when indicators of impairment exist.

When performing an impairment test, we estimate fair value using the income-based valuation method. Under the income-
based valuation method, fair value is determined based on the present value of estimated future cash flows, discounted at an
appropriate risk-adjusted rate. We use our internal forecasts to estimate future cash flows and include an estimate of long-
term future growth rate based on our most recent views of the long-term outlook for each reporting unit. Actual results may
differ from these estimates. The discount rates used in these analyses vary by reporting unit and are based on a capital asset
pricing model and published relevant industry rates. We use discount rates commensurate with the risks and uncertainties
inherent to each reporting unit and in our internally developed forecasts. Discount rates used in our 2018 reporting unit
valuations ranged from 8.5% to 9.5%.

We performed the annual goodwill impairment testing of our seven identified reporting units in the fourth quarter of 2018.
Based on the impairment tests performed, the fair value of each of our reporting units exceeded their carrying values by more
than 150%. As such, no goodwill impairment was recognized. While we believe the assumptions used in the 2018 impairment
analysis are reasonable and representative of expected results, if market conditions worsen or persist for an extended period
of time, an impairment of goodwill or assets may occur. We wWW ill continue to monitor the long-term outlook and forecasts,
including estimated future cash flows, for these businesses and the impact on the carrying value of goodwill and assets.

Employee Benefit Plans - The valuation of our pension and other post-retirement plans requires the use of assumptions and
estimates that are used to develop actuarial valuations of expenses and assets/liabilities. Inherent in these valuations are key
assumptions, including discount rates, investment returns, projected salary increases and benefits and mortality rates.
Annually, we r
eview the actuarial assumptions used in our pension reporting and compare them with external benchmarks to
yy
ensure that they accurately account for our future pension obligations. Changes in assumptions and future investment returns
could potentially have a material impact on our pension expense and related funding requirements. Our expected long-term
rate of return on plan assets is reviewed annually based on actual returns, economic trends and portfolio allocation. Our
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. As disclosed in Note 16 — Employee Benefit Plans to the Consolidated Financial Statements, the
2018 weighted-average discount rates used to measure our qualified defined benefit obligations ranged from 1.83% to 4.35%,
a general increase from the 2017 rates, which ranged from 1.94% to 3.65%. The higher 2018 discount rates in the U.S. are
reflective of increased market interest rates over this period. A 25 basis point decrease in the discount rates used for these
plans would have increased the post-retirement benefit obligations by approximately $27.9 million from the amount recorded
in the consolidated financial statements at December 31, 2018. Our pension expense is also sensitive to changes in the
expected long-term rate of return on plan assets. A decrease of 25 basis points in the expected long-term rate of return on
assets would have increased our defined benefit pension expense by approximately $1.4 million.

Income Taxesaa
- We hWW ave significant amounts of deferred tax assets that are reviewed for recoverability and valued
accordingly. These assets are evaluated by using estimates of future taxable income streams and the impact of tax planning

50

strategies. Reserves are also estimated, using more likely than not criteria, for ongoing audits regarding federal, state and
international issues that are currently unresolved. We routinely monitor the potential impact of these situations and believe
that we have established the proper reserves. Reserves related to tax accruals and valuations related to deferred tax assets can
be impacted by changes in tax codes and rulings (as further described below with respect to U.S. tax law), changes in
statutory tax rates and our future taxable income levels. The provision for uncertain tax positions provides a recognition
threshold and measurement attribute for financial statement tax benefits taken or expected to be taken in a tax return and
disclosure requirements regarding uncertainties in income tax positions. The tax position is measured at the largest amount of
benefit that is greater than 50 percent likely of being realized upon ultimate settlement. We record interest and penalties
related to unrecognized tax benefits as a component of our provision for income taxes.

ff

On December 22, 2017, the Tax Reform Act was enacted which permanently reduced the U.S. corporate income tax rate from
a maximum of 35% to a flat 21% rate, effective January 1, 2018. As
a result of the reduction in the U.S. corporate income tax
rate, we revalued our ending net deferred tax liabilities as of December 31, 2017 and recognized a provisional tax benefit of
$172.0 million. The Tax Reform Act also imposed a tax for a one-time deemed repatriation of post-1986 unremitted foreign
earnings and profit through the year ended December 31, 2017. For the year ended December 31, 2017, we recorded
provisional tax expense related to the deemed repatriation of $111.6 million payable over eight years.

ff

ssued SAB 118 to address the application of U.S. GAAP in situations when a
On December 22, 2017, the SEC staff i
registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable
detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with the SAB 118
guidance, we recognized the provisional tax impacts related to deemed repatriated earnings and the benefit for the revaluation
of deferred tax assets and liabilities in its consolidated financial statements for the year ended December 31, 2017. In
accordance with SAB 118, we finalized the financial reporting impact of the Tax Reform Act in the fourth quarter of 2018.
For the year ended December 31, 2018, we recorded a $4.2 million net tax benefit, which resulted in a 0.6% decrease in the
effective tax rate, as an adjustment to the provisional estimates as a result of additional regulatory guidance and changes in
interpretations and assumptions we made as a result of the Tax Reform Act.

Risk, Retention, Insurance - We have significant accruals and reserves related to the self-insured portion of our risk
management program. These accruals require the use of estimates and judgment with regard to risk exposure and ultimate
liability. We estimate losses under these programs using actuarial assumptions, our experience and relevant industry data. We
review these factors quarterly and consider the current level of accruals and reserves adequate relative to current market
conditions and experience.

Contingencies - We hWW ave established liabilities for environmental and legal contingencies at both the business and corporate
levels. A significant amount of judgment and the use of estimates are required to quantify our ultimate exposure in these
matters. The valuation of liabilities for these contingencies is reviewed on a quarterly basis to ensure that we have accrued the
proper level of expense. The liability balances are adjusted to account for changes in circumstances for ongoing issues and
the establishment of additional liabilities for emerging issues. While we believe that the amount accrued to-date is adequate,
future changes in circumstances could impact these determinations.

ff

Restructuring - We eWW stablish liabilities for restructuring activities at an operation when management has committed to an exit
or reorganization plan and when termination benefits are probable and can be reasonably estimated based on circumstances at
the time the restructuring plan is approved by management or when termination benefits are communicated. Exit costs
terminations. In addition, asset
include future minimum lease payments on vacated facilities and other contractual
impairments may be recorded as a result of an approved restructuring plan. The accrual of both severance and exit costs
requires the use of estimates. Though we believe that these estimates accurately reflect the anticipated costs, actual results
may be different than the estimated amounts.

Disposed and Discontinued Operations - From time to time we sell or discontinue or dispose of certain operations for
various reasons. Estimates are used to adjust, if necessary, tyy he assets and liabilities of discontinued operations, including
goodwill, to their estimated fair market value. These estimates include assumptions relating to the proceeds anticipated as a
result of the sale. Fair value is established using internal valuation calculations along with market analysis of similar-type
entities. The adjustments to fair market value of these operations provide the basis for the gain or loss when sold. Changes in
business conditions or the inability to sell an operation could potentially require future adjustments to these estimates. No
impairment charges were recorded in 2018, 2017 or 2016.

51

Stock-Based Compensation - We are required to recognize in our Consolidated Statements of Earnings the expense
associated with all share-based payment awards made to employees and directors, including stock appreciation rights
("SARs"), restricted stock units and performance share awards. We use the Black-Scholes valuation model to estimate the fair
value of SARs granted to employees. The model requires that we estimate the expected life of the SAR, expected forfeitures
and the volatility of our stock using historical data. For additional information related to the assumptions used, see Note 14 —
Equity and Cash Incentive Program to the Consolidated Financial Statements in Item 8 of this Form 10-K.

Recent Accounting Standards

See Note 1 — Description of Business and Summary of Significant Accounting Policies to the Consolidated Financial
Statements in Item 8 of this Form 10-K for a discussion of recent accounting pronouncements and recently adopted
accounting standards.

Non-GAAP Disclosures

In an effort to provide investors with additional information regarding our results as determined by GAAP, we a
lso disclose
non-GAAP information which we believe provides useful information to investors. Segment EBITDA, segment EBITDA
margin, free cash flow, nw et debt, net capitalization, the net debt to net capitalization ratio, adjusted working capital and
organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for earnings,
cash flows from operating activities, debt or equity, wyy
orking capital or revenue as determined in accordance with GAAP, aPP nd
they may not be comparable to similarly titled measures reported by other companies. We believe that segment EBITDA and
segment EBITDA margin are useful to investors and other users of our financial information in evaluating ongoing operating
profitability as they exclude the depreciation and amortization expense related primarily to capital expenditures and
acquisitions that occurred in prior years, as well as in evaluating operating performance in relation to our competitors.
Segment EBITDA is calculated by adding back depreciation and amortization expense to segment earnings, which is the most
directly comparable GAAP measure. We do not present segment net income because corporate expenses are not allocated at a
segment level. Segment EBITDA margin is calculated as segment EBITDA divided by segment revenue.

PP

We believe the net debt to net capitalization ratio and free cash flow are important measures of liquidity. Net debt to net
capitalization ratio is helpful in evaluating our capital structure and the amount of leverage we employ. Free cash flow
provides both management and investors a measurement of cash generated from operations that is available to fund
acquisitions, pay dividends, repay debt and repurchase our common stock. Reconciliations of free cash flow, net debt and net
capitalization can be found above in this Item 7, MD&A. We believe that reporting adjusted working capital, which is
calculated as accounts receivable, plus inventory, lyy ess accounts payable, provides a meaningful measure of our operational
results by showing the changes caused solely by revenue. We believe that reporting organic revenue and organic revenue
growth, which exclude the impact of foreign currency exchange rates and the impact of acquisitions and divestitures,
provides a useful comparison of our revenue performance and trends between periods.

ITEM 7A. QUANTITATTT IVE AND QUALITATTT IVE DISCLOSURES ABOUT MARKET RISK

The information required by this section is incorporated by reference to the section, "Financial Instruments and Risk
Management", included within the MD&A in Item 7.

52

ITEM 8. FINANCIAL STATTT EMENTS AND SUPPLEMENTARY DRR

ATA

INDEX TO CONSOLIDATED FINANCIAL STATTT EMENTS AND
FINANCIAL STATTT EMENT SCHEDULE

Page

54 Management's Report on Internal Control Over Financial Reporting
55
57
58
59
60
61
61
105

Report of Independent Registered Public Accounting Firm
Consolidated Statements of Earnings
Consolidated Statements of Comprehensive Earnings
Consolidated Balance Sheets
Consolidated Statements of Stockholders' Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Financial Statement Schedule - Schedule II, Valuation and Qualifying Accounts

(All other schedules are not required and have been omitted)

53

MANAGEMENT’S REPORT ORR

N INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of the Company is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act Rule 13a-15(f).

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2018. In making this assessment, the Company’s management used the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated Framework

(2013).

II

(2013), management
Based on its assessment under the criteria set forth in Internal Control — Integrated Framework
concluded that, as of December 31, 2018, the Company’s internal control over financial reporting was effective to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with U.S. GAAP.

II

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2018 has been audited by
PricewaterhouseCoopers LLP, aPP n independent registered public accounting firm, as stated in their report which appears
herein.

54

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Dover Corporation:

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Dover Corporation and its subsidiaries (the “Company”)
as of December 31, 2018 and 2017, and the related consolidated statements of earnings, comprehensive earnings,
stockholders’ equity, ayy nd cash flows for each of the three years in the period ended December 31, 2018, including the related
notes and financial statement schedule listed in the accompanying index (collectively referred to as the “consolidated
financial statements”). We also have audited the Company's internal control over financial reporting as of December 31,
2018, based on criteria established in Internal Control - Integrated Framework
(2013) issued by the Committee of
II
Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in a
ll material respects, the financial
position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of
the three years in the period ended December 31, 2018 in conformity with accounting principles generally accepted in the
United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control
over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework
(2013) issued by the COSO.

yy

II

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal
control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting,
included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to
express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial
reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in
all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our
audit of internal control over financial reporting included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered
necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

55

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
February 15, 2019

We have served as the Company's auditor since 1995.

56

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)

Revenue
Cost of goods and services
Gross profit
Selling, general and administrative expenses
Operating earnings
Interest expense
Interest income
Gain on sale of businesses
Other income, net
Earnings before provision for income taxes
Provision for income taxes
Earnings from continuing operations
(Loss) earnings from discontinued operations, net
Net earnings

Earnings per share from continuing operations:

Basic
Diluted

(Loss) earnings per share from discontinued operations:

Basic
Diluted

Net earnings per share:

Basic
Diluted

Weighted average shares outstanding:

Basic
Diluted

Years Ended December 31,
2017
$ 6,820,886
4,291,839
2,529,047
1,722,161
806,886
144,948
(8,491)
(203,135)
(2,251)
875,815
129,152
746,663
65,002
811,665

2018
$ 6,992,118
4,432,562
2,559,556
1,716,444
843,112
130,972
(8,881)
—
(4,357)
725,378
134,233
591,145
(20,878)
570,267

2016
$ 6,043,224
3,815,672
2,227,552
1,518,580
708,972
135,969
(6,752)
(96,598)
(8,291)
684,644
182,516
502,128
6,764
508,892

$

$

$

$
$

$
$

$
$

3.94
3.89

$
$

(0.14) $
(0.14) $

3.80
3.75

$
$

4.80
4.73

0.42
0.41

5.21
5.15

$
$

$
$

$
$

3.23
3.21

0.04
0.04

3.28
3.25

149,874
152,133

155,685
157,744

155,231
156,636

See Notes to Consolidated Financial Statements

57

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(In thousands)

Net earnings
Other comprehensive (loss) earnings, net of tax
Foreign currency translation adjustments:

Foreign currency translation (losses) gains
Reclassification of foreign currency translation losses to earnings

Total foreign currency translation adjustments
Pension and other postretirement benefit plans:

Actuarial (losses) gains
Prior service (cost) credit
Amortization of actuarial losses included in net periodic pension cost
Amortization of prior service costs included in net periodic pension cost
Settlement and curtailment impact

Total pension and other postretirement benefit plans
Changes in fair value of cash flow hedges:
Unrealized net gains (losses)
Net losses (gains) reclassified into earnings

Total cash flow hedges
Other
Other comprehensive (loss) earnings, net of tax
Comprehensive earnings

$

$

Years Ended December 31,
2017
811,665

2018
570,267

$

$

2016
508,892

(59,970)
—
(59,970)

(13,107)
(14,661)
3,829
2,875
9,926
(11,138)

1,158
1,541
2,699
—
(68,409)
501,858

143,064
3,992
147,056

(106,526)
823
(105,703)

12,439
3,136
5,267
3,007
(2,462)
21,387

(7,928)
(776)
5,683
4,397
—
1,376

(1,801)
(590)
(2,391)
(1,485)
164,567
976,232

$

144
415
559
(985)
(104,753)
404,139

$

See Notes to Consolidated Financial Statements

58

DOVER CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)

Assets

December 31, 2018 December 31, 2017

Current assets:

Cash and cash equivalents
Receivables, net of allowances of $28,469 and $34,479
Inventories
Prepaid and other current assets

$

Total current assets

Property, plant and equipment, net
Goodwill
Intangible assets, net
Other assets and deferred charges
Assets of discontinued operations
Total assets

Current liabilities:

$
Liabilities and Stockholders' Equity

Notes payable and current maturities of long-term debt
Accounts payable
Accrued compensation and employee benefits
Accrued insurance
Other accrued expenses
Federal and other income taxes
Total current liabilities

Long-term debt
Deferred income taxes
Noncurrent income tax payable
Other liabilities
Liabilities of discontinued operations
Stockholders' equity:

Preferred stock - $100 par value; 100,000 shares authorized; none issued
Common stock - $1 par value; 500,000,000 shares authorized;
257,822,352 and 256,992,261 shares issued at December 31, 2018 and
2017
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Treasury stock, at cost: 112,905,810 and 102,168,868 shares at
December 31, 2018 and 2017
Total stockholders' equity

Total liabilities and stockholders' equity

$

$

See Notes to Consolidated Financial Statements

$

$

$

396,221
1,231,859
748,796
126,878
2,503,754
806,497
3,677,328
1,134,256
243,936
—
8,365,771

220,318
969,531
212,666
97,600
313,452
13,854
1,827,421
2,943,660
339,325
54,304
432,395
—

753,964
1,183,514
677,043
175,626
2,790,147
787,940
3,686,372
1,282,624
245,723
1,865,553
10,658,359

581,102
882,007
228,118
101,619
334,435
14,697
2,141,978
2,986,702
348,201
108,497
425,548
264,253

—

—

257,822
886,016
7,815,486
(243,096)

(5,947,562)
2,768,666
8,365,771

$

256,992
942,485
8,455,501
(194,759)

(5,077,039)
4,383,180
10,658,359

59

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, except per share amounts)

Common
Stock $1 Par
Value

Additional
Paid-In
Capital

Treasury
Stock

Retained
Earnings

Balance at December 31, 2015
Net earnings

$

256,113
—

$

928,409
—

$ (4,972,016) $ 7,686,642
508,892

—

Dividends paid ($1.72 per share)
Common stock issued for the
exercise of share-based awards
Tax benefit from the exercise of
share-based awards
Stock-based compensation
expense
Other comprehensive loss, net of
tax
Other
Balance at December 31, 2016
Net earnings

Dividends paid ($1.82 per share)

Common stock issued for the
exercise of share-based awards

Stock-based compensation
expense

Common stock acquired

Other comprehensive earnings,
net of tax
Other
Balance at December 31, 2017
Adoption of ASU 2018-02 (1)
Cumulative catch-up adjustment
related to Adoption of Topic 606(1)
Net earnings

Dividends paid ($1.90 per share)

—

425

—

—

—

—
256,538
—

—

454

—

—

—
—
256,992
—

—
—

—

(16,125)

4,964

21,015

—

8,492
946,755
—

—

(18,897)

26,528

—

—

—

—

—

—
(4,972,016)
—

—

—

—

—

(105,023)

—
(11,901)
942,485
—

—
—
(5,077,039)
—

—
—

—
—

—
—

—
—

—
—

(267,739)

—

—

—

—

—
7,927,795
811,665

(283,959)

—

—

—

—
—
8,455,501

12,856

175

570,267

(283,570)

830

(47,084)

(939,743)

Separation of Apergy
Common stock issued for the
exercise of share-based awards
Stock-based compensation
expense
Common stock acquired
Other comprehensive loss, net of
tax
—
Other
—
Balance at December 31, 2018
$ (5,947,562) $ 7,815,486
(1) See Note 1 — Basis of Presentation and Note 3 — Revenue for additional information.

—
(9,373)
886,016

—
—
257,822

—
(870,523)

24,442
(24,454)

—
—

—
—

—
—

—

—

$

$

Accumulated
Other
Comprehensive
Earnings (Loss)
$

(254,573) $
—

Total
Stockholders'
Equity
3,644,575
508,892

—

—

—

—

(104,753)

—
(359,326)
—

—

—

—

—

164,567
—
(194,759)

(12,856)

—

—

—

32,928

—

—
—

(267,739)

(15,700)

4,964

21,015

(104,753)

8,492
3,799,746
811,665

(283,959)

(18,443)

26,528

(105,023)

164,567
(11,901)
4,383,180

—

175

570,267

(283,570)

(906,815)

(46,254)

24,442
(894,977)

(68,409)
—
(243,096) $

(68,409)
(9,373)
2,768,666

$

See Notes to Consolidated Financial Statements

60

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Operating Activities of Continuing Operations
Net earnings
Adjustments to reconcile net earnings to cash from operating activities:

Loss (earnings) from discontinued operations, net
Depreciation and amortization
Stock-based compensation
Gain on sale of businesses
Provision for losses on accounts receivable (net of recoveries)
Deferred income taxes
Employee benefit plan expense
Contributions to employee benefit plans
Other, net

Cash effect of changes in assets and liabilities (excluding effects of acquisitions,
dispositions and foreign exchange):

Accounts receivable
Inventories
Prepaid expenses and other assets
Accounts payable
Accrued compensation and employee benefits
Accrued expenses and other liabilities
Accrued taxes

Net cash provided by operating activities of continuing operations
Investing Activities of Continuing Operations
Additions to property, plant and equipment
Acquisitions (net of cash and cash equivalents acquired)
Proceeds from sale of property, plant and equipment
Proceeds from sale of businesses
Other

Net cash (used in) provided by investing activities of continuing operations
Financing Activities of Continuing Operations

Cash received from Apergy, net of cash distributed
Proceeds from long-term debt
Proceeds from exercise of share-based awards, including tax benefits
Change in commercial paper and notes payable, net
Repayment of long-term debt
Dividends to stockholders
Purchase of common stock
Payments for employee tax obligations upon exercise of share-based awards
Other

Net cash (used in) provided by financing activities of continuing operations
Cash Flows from Discontinued Operations
Net cash provided by operating activities of discontinued operations
Net cash used in investing activities of discontinued operations
Net cash used in financing activities of discontinued operations
Net cash (used in) provided by discontinued operations
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Supplemental information - cash paid during the year for:

Income taxes
Interest

Years Ended December 31,
2017

2016

2018

$

570,267

$

811,665

$

508,892

20,878
282,580
23,698
—
3,875
(35,448)
11,912
(25,933)
(6,762)

(87,573)
(85,052)
(7,453)
106,561
(7,037)
(5,026)
29,706
789,193

(170,994)
(68,557)
5,908
3,937
(15,774)
(245,480)

689,643
—
—
(10,722)
(350,000)
(283,570)
(894,977)
(46,254)
(1,958)
(897,838)

9,442
(23,705)
—
(14,263)
10,645
(357,743)
753,964
396,221

135,427
131,823

$

$

(65,002)
283,278
24,073
(203,135)
10,341
(160,395)
12,191
(18,588)
(4,216)

(43,450)
605
(5,232)
94,052
23,319
(36,024)
15,927
739,409

(170,068)
(27,188)
11,774
372,666
21,151
208,335

—
—
—
(182,596)
—
(283,959)
(105,023)
(18,443)
(2,912)
(592,933)

96,225
(46,484)
(1,208)
48,533
1,474
404,818
349,146
753,964

337,987
140,863

$

$

(6,764)
249,672
18,650
(96,598)
7,700
(43,258)
25,364
(23,042)
(31,965)

(74,049)
(3,287)
(415)
70,836
(10,429)
49,960
93,329
734,596

(139,578)
(1,561,737)
15,223
206,407
(1,057)
(1,480,742)

—
656,399
8,431
254,834
(1,889)
(267,739)
—
(15,700)
—
634,336

128,346
(24,231)
(600)
103,515
(4,744)
(13,039)
362,185
349,146

170,394
131,184

$

$

See Notes to Consolidated Financial Statements

61

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

1. Description of Business and Summary of Significant Accounting Policies

p

g

y

g

Description of Business

Dover Corporation ("Dover" or "Company") is a diversified global manufacturer delivering innovative equipment and
components, specialty systems, consumable supplies, software and digital solutions and support services. The Company also
provides supporting engineering, testing and other similar services, which are not significant in relation to consolidated
revenue. The Company’s businesses are based primarily in the United States of America and Europe with manufacturing and
other operations throughout the world. The Company operates through three business segments that are aligned with the key
end markets they serve: Engineered Systems, Fluids, and Refrigeration & Food Equipment. For additional information on the
Company’s segments, see Note 18 — Segment Information.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany
accounts and transactions have been eliminated in consolidation. The results of operations of acquired businesses are included
from the dates of acquisitions. As discussed in Note 5 — Discontinued and Disposed Operations, the Company is reporting
the assets, liabilities, results of operations and cash flows of Apergy prior to the spin-off, as discontinued operations for all
periods presented.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial
Statements and accompanying disclosures. These estimates may be adjusted due to changes in future economic, industry, oryy
customer financial conditions, as well as changes in technology or demand. Estimates are used for, but not limited to,
allowances for doubtful accounts receivable, net realizable value of inventories, restructuring reserves, warranty reserves,
pension and post-retirement plans, stock-based compensation, useful lives for depreciation and amortization of long-lived
assets, future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets and other long-
lived assets, deferred tax assets, uncertain income tax positions and contingencies. Actual results may ultimately differ from
estimates, although management does not believe such differences would materially affect the consolidated financial
statements in any individual year. Estimates and assumptions are periodically reviewed and the effects of revisions are
reflected in the Consolidated Financial Statements in the period that they are determined.

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. The carrying value of cash and cash
equivalents approximate fair value.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at face amounts less an allowance for doubtful accounts. The allowance is an estimate
based on historical collection experience, current economic and market conditions and a review of the current status of each
customer's trade accounts receivable. Management evaluates the aging of the accounts receivable balances and the financial
condition of its customers to estimate the amount of accounts receivable that may not be collected in the future and records
the appropriate provision.

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 net realizable value. Other domestic inventories are stated at cost,
determined on the last-in, first-out (LIFO) basis, which is less than market value.

62

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

PP
Property, Pyy

lant and Equipment

Property, pyy
lant and equipment includes the historical cost of land, buildings, machinery and equipment, purchased software
and significant improvements to existing plant and equipment or, in the case of acquisitions, a fair market value appraisal of
assets. 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. The Company depreciates its assets on a straight-line basis 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; vehicles 3 to 7 years; and software 3 to 10 years.

ff

Derivative Financial Instruments

The Company uses derivative financial instruments to hedge its exposures to various risks, including interest rate and foreign
currency exchange rate risk. The Company does not enter into derivative financial instruments for speculative purposes and
does not have a material portfolio of derivative financial instruments. Derivative financial instruments used for hedging
purposes must be designated and effective as a hedge of the identified risk exposure at inception of the contract. The
Company recognizes all derivatives as either assets or liabilities on the consolidated balance sheet and measures those
instruments at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair
value of both the derivatives and of the hedged items are recorded in current earnings. For derivatives designated as cash flow
hedges,
the effective portion of changes in the fair value of the derivatives is recorded as a component of other
comprehensive earnings and subsequently recognized in net earnings when the hedged items impact earnings.

Goodwill and Other Intangible Assets

Goodwill represents the excess of purchase price over the fair value of net assets acquired. Goodwill and certain other
intangible assets deemed to have indefinite lives (primarily trademarks) are not amortized. For goodwill, impairment tests are
ore frequently if events or circumstances indicate that it may be impaired, or when some
required at least annually, or m
portion but not all of a reporting unit is disposed of or classified as assets held for sale. Based on its current organizational
structure, the Company identified seven reporting units for which cash flows are determinable and to which goodwill may be
allocated.

yy

The Company performs its goodwill impairment test annually in the fourth quarter at the reporting unit level. A quantitative
test is used to determine existence of goodwill impairment and the amount of the impairment loss at the reporting unit
level. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. The
Company uses an income-based valuation method, determining the present value of estimated future cash flows, to estimate
the fair value of a reporting unit. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting
unit is not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized
in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Factors used in the
impairment analysis require significant judgment, and actual results may differ from assumed and estimated amounts. The
Company uses its own market assumptions including internal projections of future cash flows, discount rates and other
assumptions considered reasonable and inherent in the analysis. These forecasts are based on historical performance and
future estimated results. The discount rates used in these analyses vary by reporting unit and are based on a capital asset
pricing model and published relevant industry rates. The Company uses discount rates commensurate with the risks and
uncertainties inherent to each reporting unit and in the internally developed forecasts. See Note 8 — Goodwill and Other
Intangible Assets for further discussion of the Company's annual goodwill impairment test and results.

The Company uses an income-based valuation method to annually test its indefinite-lived intangible assets for impairment.
The fair value of the intangible asset is compared to its carrying value. This method uses the Company’s own market
assumptions, which are considered reasonable and inherent in the analysis. Any excess of carrying value over the estimated
fair value is recognized as an impairment loss. No impairment of indefinite-lived intangible assets was required for the years
ended December 31, 2018, 2017, or 2016.

Other intangible assets with determinable lives primarily consist of customer intangibles, unpatented technologies, patents
and trademarks. The other intangible assets are amortized over their estimated useful lives, ranging from 5 to 15 years.

63

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

Long-lived assets (including definite-lived intangible assets) 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. 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.

Restructuring Accruals

From time to time, the Company takes actions to reduce headcount, close facilities, or otherwise exit operations. Such
restructuring activities at an operation are recorded when management has committed to an exit or reorganization plan and
when termination benefits are probable and can be reasonably estimated based on circumstances at the time the restructuring
plan is approved by management or when termination benefits are communicated. Exit costs include future minimum lease
payments on vacated facilities and other contractual terminations. In addition, asset impairments may be recorded as a result
of an approved restructuring plan. The accrual of both severance and exit costs requires the use of estimates. Though the
Company believes that its estimates accurately reflect the anticipated costs, actual results may be different from the original
estimated amounts.

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 monthly exchange
rates. Foreign currency translation gains and losses are included in the Consolidated Statements of Comprehensive Earnings
as a component of other comprehensive earnings (loss). Assets and liabilities of an entity that are denominated in currencies
other than an entity’s functional currency are re-measured into the functional currency using end of period exchange rates or
historical rates, where applicable to certain balances. Gains and losses related to these re-measurements are recorded within
the Consolidated Statements of Earnings as a component of other expense (income), net. Gains and losses arising from
intercompany foreign currency transactions that are of a long-term investment in nature are reported in the same manner as
translation adjustments.

ff

Revenue Recognition

Effective January 1, 2018, the Company adopted Accounting Standard Codification ("ASC") Topic 606, Revenue from
Contracts with Customers ("Topic 606” or “ASC 606”). Under Topic 606, a contract with a customer is an agreement which
both parties have approved, that creates enforceable rights and obligations, has commercial substance and where payment
terms are identified and collectability is probable. Once the Company has entered a contract, it is evaluated to identify
performance obligations. For each performance obligation, revenue is recognized as control of promised goods or services
transfers to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those
goods or services. The amount of revenue recognized takes into account variable consideration, such as discounts and volume
rebates.

Prior to 2018, revenue is recognized when all the following conditions 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 or services have
been rendered.

The majority of the Company’s revenue is generated through the manufacture and sale of a broad range of specialized
products and components, with revenue recognized upon transfer of control, title and risk of loss, which is generally upon
shipment. Service revenue represents less than 5% of total revenue and is recognized as the services are performed. In limited
cases, revenue arrangements with customers require delivery, iyy nstallation, testing, certification, or other acceptance provisions
to be satisfied before revenue is recognized. The Company includes shipping costs billed to customers in revenue and the
related shipping costs in cost of goods and services.

Stock-Based Compensation

The principal awards issued under the Company’s stock-based compensation plans include non-qualified stock appreciation
rights ("SARs"), restricted stock units and performance share awards. The cost for such awards is measured at the grant date
based on the fair value of the award. At the time of grant, the Company estimates forfeitures, based on historical experience,

64

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

in order to estimate the portion of the award that will ultimately vest. The value of the portion of the award that is expected to
ultimately vest is recognized as expense on a straight-line basis, generally over the explicit service period of three years
(except for retirement-eligible employees and retirees) and is included in selling, general and administrative expenses in the
Consolidated Statements of Earnings. Expense for awards granted to retirement-eligible 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. See Note 14 — Equity and Cash Incentive Program for additional information related to the Company’s
stock-based compensation.

Income Taxesaa

The provision for income taxes includes federal, state, local and non-U.S. taxes. Tax credits, primarily for research and
experimentation, are recognized as a reduction of the provision for income taxes in the year in which they are available for
tax purposes. Deferred taxes are provided using enacted rates on the future tax consequences of temporary differences.
Temporary differences include the differences between the financial statement carrying amounts of assets and liabilities and
their respective tax basis and the tax benefit of carryforwards. A valuation allowance is established for deferred tax assets for
which realization is not assured. In assessing the need for a valuation allowance, management considers all available
evidence, including the future reversal of existing taxable temporary differences, taxable income in carryback periods,
prudent and feasible tax planning strategies and estimated future taxable income. The valuation allowance can be affected by
changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates and changes to future taxable
income estimates.

Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the tax position will be
sustained on examination by the taxing authorities, based on the technical merits of the position in consideration of applicable
tax statutes and related interpretations and precedents. Tax benefits recognized in the financial statements from such a
position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate
settlement.

On December 22, 2017, the U.S. bill commonly referred to as the Tax Cuts and Jobs Act (“Tax Reform Act”) was enacted,
which significantly changed U.S. tax law by, ayy mong other things, lowering corporate income tax rates, implementing a
territorial tax system and imposing a one-time repatriation tax on deemed repatriated earnings of foreign subsidiaries. The
Tax Reform Act reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1,
2018. The Tax Reform Act also provided for a one-time deemed repatriation of post-1986 undistributed foreign subsidiary
earnings and profits (“E&P”) through the year ended December 31, 2017. The Global Intangible Low-Taxed Income
("GILTI") provisions of the Tax Reform Act require the Company to include in its U.S. income tax return foreign subsidiary
earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company is subject to incremental
U.S. tax on GILTI income due to expense allocations required by the U.S. foreign tax credit rules. The Company has elected
to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of
GILTI in its consolidated financial statements.

ff

ssued Staff Aff

On December 22, 2017, the SEC staff iff
ccounting Bulletin No. 118 (“SAB 118”) to address the application of
U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed
(including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform
Act. The Company recognized the provisional tax impacts related to deemed repatriated earnings and the benefit for the
revaluation of deferred tax assets and liabilities, and included these amounts in its consolidated financial statements for the
year ended December 31, 2017. In accordance with SAB 118, the Company finalized the financial reporting impact of the
Tax Reform Act in the fourth quarter of 2018. For the year ended December 31, 2018, the Company recorded a $4.2 million
net tax benefit, which resulted in a 0.6% decrease in the effective tax rate, as an adjustment to provisional estimates as a result
of additional regulatory guidance and changes in interpretations and assumptions the Company has made as a result of the
Tax Reform Act.

Research and Development Costs

Research and development costs, including qualifying engineering costs, are expensed when incurred and amounted to
$143,033 in 2018, $130,536 in 2017 and $115,840 in 2016. These costs as a percent of revenue were 2.0% in 2018 and 1.9%
in 2017 and 2016. Revisions were made to the 2017 and 2016 research and development costs and impacted only the

65

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

disclosure as the costs were appropriately included in the Consolidated Statement of Earnings. The revisions were not
material to the prior annual periods.

Advertising Costs

Advertising costs are expensed when incurred and amounted to $26,831 in 2018, $33,369 in 2017 and $35,035 in 2016.

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 $0.8 million per occurrence and automobile liability claims up to $5.0 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, cybersecurity risks, 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 provide protection on both an individual claim and annual aggregate basis.

Reclassifications – Certain amounts in prior years have been reclassified to conform to the current year presentation.

Recent Accounting Pronouncements

Recentlyy Issued Accountingg Standards

The following standards, issued by the Financial Accounting Standards Board ("FASB"), will, or are expected to, result in a
ff
change in practice and/or have a financial impact to the Company’

s Consolidated Financial Statements:

In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, Intangibles-Goodwill and Other Internal-
Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing
Arrangement That Is a Service Contract. The amendments in this update align the requirements for capitalizing
implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing
implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-
use software license). The accounting for the service element of a hosting arrangement that is a service contract is not
affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the
Company beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied
either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is in the
process of assessing the impact of this ASU on its Consolidated Financial Statements but does not expect this update to have
a material impact on the Company's Consolidated Financial Statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting
income statement classification and eliminates the
for Hedging Activities. This ASU provides new guidance about
requirement to separately measure and report hedge ineffectiveness. The entire change in fair value for qualifying hedge
instruments included in the effectiveness will be recorded in other comprehensive income (OCI) and amounts deferred in OCI
will be reclassified to earnings in the same income statement line item in which the earnings effect of the hedged item is
reported. The guidance is effective for interim and annual periods for the Company on January 1, 2019, with early adoption
permitted. The Company does not expect the adoption of this ASU to have a material impact on its Consolidated Financial
Statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments, which amends the impairment model by requiring entities to use a forward-looking

ff

66

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial
instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The guidance is
effective for interim and annual periods for the Company on January 1, 2020, with early adoption permitted. Management has
not yet completed its assessment of the impact of the new standard on the Company’s Consolidated Financial Statements.
Currently, tyy he Company believes that the most notable impact of this ASU may relate to its processes around the assessment
of the adequacy of its allowance for doubtful accounts on trade accounts receivable and the recognition of credit losses.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amended existing guidance to require lessees to
recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose
additional quantitative and qualitative information about leasing arrangements. This ASU also provides clarifications
surrounding the presentation of the effects of leases in the income statement and statement of cash flows. This guidance was
effective for the Company on January 1, 2019. In addition, the FASB issued ASU 2018-11, Leases Targeted Improvements
which provides an additional transition method that allows entities to apply the new leases standard at adoption date and
recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company
elected this new transition method when it adopted ASU 2016-02 on January 1, 2019.

During the second half of 2017, the Company developed a project plan to guide the implementation of ASU 2016-02. The
Company completed this plan including surveying the Company’s businesses, assessing the Company’s portfolio of leases
and compiling a central repository of active leases. The Company also implemented a lease accounting software solution to
support the new reporting requirements and established a future lease process to keep the lease accounting portfolio up to
date. The Company evaluated key policy elections and considerations under the standard and completed an internal policy as
well as training to address the new standard requirements. The Company plans to elect the package of practical expedients
and will not apply the recognition requirements to short-term leases. Although management continues to evaluate the effect to
the Company's Consolidated Balance Sheets and disclosures, management currently estimates total assets and liabilities will
increase approximately $150 million to $200 million upon adoption, before considering deferred taxes. Management does not
expect a material impact to the Company’s Consolidated Statements of Earnings or Cash Flows.

ff

Recently Adopted Accounting Standards

y

p

g

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) Amendments to SEC Paragraphs Pursuant to the
ccounting Bulletin No. 118 ("SAB 118"). This ASU provides guidance on income tax accounting implications
SEC Staff Aff
under the Tax Reform Act. SAB 118 addressed the application of GAAP to situations when a registrant does not have the
necessary information available, prepared and analyzed in reasonable detail to complete the accounting for certain income tax
effects of the Tax Reform Act and allows companies to record provisional amounts during the re-measurement period not to
exceed one year after the enactment date while the accounting impact remains under analysis. This guidance was effective
immediately upon issuance. See Note 13 — Income Taxes for further details.

ff

In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220)
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU allows for the
reclassification from Accumulated Other Comprehensive Income ("AOCI") to retained earnings for tax effects resulting from
the Tax Reform Act that are stranded in AOCI. ASU 2018-02, however, does not change the underlying guidance that requires
that the effect of a change in tax laws or rates be included in income from continuing operations. The Company early adopted
this guidance on January 1, 2018, and elected to reclassify the stranded tax effects from AOCI to retained earnings of $12.9
million. The stranded tax effects were specifically identified and represented the difference between the change in the amount
of income tax from 35% to 21%, recognized in AOCI primarily for the deferred taxes associated with pensions, which were
recognized in the Consolidated Statement of Earnings for the year ended December 31, 2017.

In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation
of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU changes the income statement
presentation of defined benefit and post-retirement benefit plan expense by requiring separation between operating expense
(service cost component of net periodic benefit expense) and non-operating expense (all other components of net periodic
benefit expense, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating
expense component is reported with similar compensation costs while the non-operating components are reported outside of
operating income. The non-operating components are reported in the other (income) expense, net
line item in the
Consolidated Statement of Earnings. The Company’s non-operating cost components of net periodic cost were a benefit (cost)
of $5.8 million, $8.6 million and $(2.4) million during the years ended December 31, 2018 and 2017 and 2016 respectively.
The impact of this adoption resulted in a reclassification to the Company’s Condensed Consolidated Statement of Earnings

67

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

for the year ended December 31, 2017 and 2016 in which previously reported selling, general and administrative expenses
were adjusted by $8.6 million and $(2.4) million, respectively, wyy
ith a corresponding adjustment to other income, net. The
Company utilized a practical expedient included in the ASU which allowed the Company to use amounts previously
disclosed in its pension and other post-retirement benefits note for the prior period as the estimation basis for applying the
required retrospective presentation requirements. The Company adopted this guidance on January 1, 2018.

In January 2017, the FASB issued ASU 2017-01, Business combinations (Topic 805): Clarifying the definition of a business,
which clarifies the definition of a business and assists entities with evaluating whether transactions should be accounted for as
acquisitions (or disposals) of assets or businesses. Under this guidance, when substantially all of the fair value of gross assets
acquired is concentrated in a single asset (or group of similar assets), the assets acquired would not represent a business. In
addition, in order to be considered a business, an acquisition would have to include at a minimum an input and a substantive
process that together significantly contribute to the ability to create an output. The amended guidance also narrows the
definition of outputs by more closely aligning it with how outputs are described in FASB guidance for revenue recognition.
The Company adopted this guidance on January 1, 2018. The adoption of this ASU did not have a material impact on the
Company's Consolidated Financial Statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash
Receipts and Cash Payments. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt
extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are
insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a
business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned
life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees;
beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance
principle. The Company adopted this guidance on January 1, 2018. The adoption of this ASU did not have a material impact
on the Company's Consolidated Financial Statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance introduced
a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in
exchange for those goods or services. This ASU also required disclosures sufficient to enable users to understand the nature,
amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and
quantitative disclosures about contracts with customers, significant
judgments and changes in judgments and assets
recognized from the costs to obtain or fulfill a contract. The Company adopted this guidance on January 1, 2018 using the
modified retrospective method that resulted in a cumulative catch-up adjustment of $0.2 million to retained earnings as of the
date of adoption.

68

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

2. Spin-off of Apergy Corporation

On May 9, 2018, Dover completed the distribution of Apergy to its shareholders. The transaction was completed through
the pro rata distribution of 100% of the common stock of Apergy to Dover's shareholders of record as of the close of
business on April 30, 2018. Each Dover shareholder received one share of Apergy common stock for every two shares of
Dover common stock held as of the record date.

The following is a summary of the assets and liabilities transferred to Apergy as part of the separation on May 9, 2018:

Assets:
Cash and cash equivalents
Current assets
Non-current assets

Liabilities:
Current liabilities

Non-current liabilities

Net assets distributed to Apergy Corporation

Less: Cash received from Apergy Corporation

Net distribution to Apergy Corporation

$

$

$

$

$

$

10,357
462,620
1,438,760
1,911,737

185,354

119,568

304,922

1,606,815

700,000

906,815

In connection with the spin-off from the Company, Apergy issued and sold $300.0 million in aggregate principal amount of
its 6.375% senior notes due May 2026 in a private offering exempt from the registration requirements of the Securities Act of
1933, as amended, and incurred $415.0 million in borrowings under its new senior secured term loan facility to fund a one-
time cash payment of $700.0 million to Dover. Dover received net cash of $689.6 million upon separation, which reflects
$10.4 million of cash held by Apergy on the distribution date and retained by it in connection with its separation from Dover.
Dover utilized the proceeds from Apergy as the primary source of funding for $1 billion of share repurchases started in
December 2017. See Note 20 — Stockholders' Equity for further information.

Included within the net assets distributed to Apergy is approximately $33 million of accumulated other comprehensive
earnings attributable to Apergy, relating primarily to foreign currency translation gains, offset by unrecognized losses on
pension obligations.

The historical results of Apergy, including the results of operations, cash flows, and related assets and liabilities have been
reclassified to discontinued operations for all periods presented herein. See Note 5 — Discontinued and Disposed Operations.
Pursuant to the separation of Apergy from Dover, and the related separation and distribution agreements, any liabilities due
from Dover to Apergy are not significant and will be paid in the near future.

3. Revenue

Revenue from contracts with customers

Effective January 1, 2018, the Company adopted Accounting Standard Codification ("ASC") Topic 606, Revenue from
Contracts with Customers ("Topic 606” or “ASC 606”), using the modified retrospective method applied to those contracts
which were not completed as of January 1, 2018. Accordingly, all periods prior to January 1, 2018 are presented in
accordance with ASC Topic 605, Revenue Recognition ("Topic 605” or “ASC 605”).

Under Topic 606, a contract with a customer is an agreement which both parties have approved, that creates enforceable
rights and obligations, has commercial substance and where payment terms are identified and collectability is probable. Once
the Company has entered a contract, it is evaluated to identify performance obligations. For each performance obligation,
revenue is recognized as control of promised goods or services transfers to the customer in an amount that reflects the

69

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

consideration the Company expects to receive in exchange for those goods or services. The amount of revenue recognized
takes into account variable consideration, such as discounts and volume rebates.

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.

Disaggregation of Revenue

Revenue from contracts with customers is disaggregated by end markets, segments and geographic location, as it best depicts
the nature and amount of the Company’s revenue.

The following table presents revenue disaggregated by end market and segment:

Printing & Identification
Industrials

Total Engineered Systems segment

Fueling & Transport
Pumps
Process Solutions

Total Fluids segment

Refrigeration
Food Equipment

Total Refrigeration & Food Equipment segment

Intra-segment eliminations
Total Consolidated Revenue

Year Ended
December 31, 2018
1,162,431
1,580,517
2,742,948
1,465,590
676,027
655,721
2,797,338
1,197,072
256,021
1,453,093
(1,261)
6,992,118

$

$

The following table presents revenue disaggregated by geography based on the location of the Company's customer:

United States
Europe
Asia
Other Americas
Other
Total

Year Ended
December 31, 2018
3,619,717
1,572,788
867,268
631,164
301,181
6,992,118

$

$

The majority of revenue from our Engineered Systems, Fluids and Refrigeration and Food Equipment segments is generated
from sales to customers within the United States and Europe. Each segment also generates revenue across the other
geographies, with no significant concentration of any segment’s remaining revenue.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service, or a bundle of goods or services, to
the customer, and is the unit of accounting under ASC Topic 606. A contract’s transaction price is allocated to each distinct
performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. A majority of the
Company’s contracts have a single performance obligation which represents, in most cases, the equipment or product being
sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation,
extended warranty and/or maintenance services. These contracts require judgment in determining the number of performance
obligations.

The Company has elected to use the practical expedient to not adjust the promised amount of consideration for the effects of a
significant financing component if it is expected, at contract inception, that the period between when Dover transfers a

70

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

promised good or service to a customer, and when the customer pays for that good or service, will be one year or less. Thus,
the Company may not consider an advance payment to be a significant financing component, if it is received less than one
year before product completion.

The majority of the Company’s contracts offer assurance-type warranties in connection with the sale of a product to a
customer. Assurance-type warranties provide a customer with assurance that the related product will function as the parties
intended because it complies with agreed-upon specifications. Such warranties do not represent a separate performance
obligation.

The Company may also offer service-type warranties that provide services to the customer, in addition to the assurance that
the product complies with agreed-upon specifications. If a warranty is determined to be a service-type warranty, it represents
a distinct service and is treated as a separate performance obligation.

For contracts with multiple performance obligations, the Company allocates the total transaction price to each performance
obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services
underlying each performance obligation. The Company uses an observable price to determine the stand-alone selling price for
separate performance obligations or a cost plus margin approach when one is not available.

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 relates to the sale of engineered to order equipment or
services.

For revenue recognized over time, there are two types of methods for measuring progress and both are relevant to the
Company: (1) input methods and (2) output methods. Although this may vary by business, input methods generally are based
on costs incurred relative to estimated total costs. Output methods generally are based on a measurement of progress, such as
milestone achievement. The businesses use the method and measure of progress that best depicts the transfer of control to the
customer of the goods or services to date relative to the remaining goods or services promised under the contract.

Transaction Price Allocated to the Remaining Performance Obligations

At December 31, 2018, we estimated that $83.8 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 56% of our unsatisfied (or partially unsatisfied) performance obligations as revenue in 2019, with
the remaining balance to be recognized in 2020 and thereafter.

Remaining consideration, including variable consideration, from contracts with customers is included in the amounts
presented above and primarily consists of extended warranties on products and multi-year maintenance agreements, which
are typically recognized as the performance obligation is satisfied.

The Company applied the standard's practical expedient that permits the omission of unsatisfied performance obligations for
(i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue
at the amount to which the Company has the right to invoice for services performed.

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers:

Contract assets
Contract liabilities - current
Contract liabilities - non-current

12/31/2018

At Adoption

$

$

9,330
36,461
9,382

11,932
48,268
9,916

Contract assets primarily relate to the Company's right to consideration for work completed but not billed at the reporting

71

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

date and are recorded in prepaid and other current assets in the Condensed Consolidated Balance Sheet. Contract assets are
transferred to receivables when the right to consideration becomes unconditional. Contract liabilities relate to advance
consideration received from customers for which revenue has not been recognized. Current contract liabilities are recorded in
other accrued expenses and non-current contract liabilities are recorded in other liabilities in the Condensed Consolidated
Balance Sheet. Contract liabilities are reduced when the associated revenue from the contract is recognized.

Significant changes in contract assets and liabilities balances during the period are as follows:

Opening balance at January 1, 2018
Cumulative catch-up adjustment upon transition
Changes in the estimate of the stage of completion
Transferred to receivables from contract assets recognized during the period
Other
Closing balance at December 31, 2018

Opening balance at January 1, 2018
Revenue recognized during the period

Increases due to cash received
Other
Closing balance at December 31, 2018

Contract Assets

11,932
701
11,884
(14,947)
(240)
9,330

Contract
Liabilities

58,184
(68,211)

64,603
(8,733)
45,843

$

$

$

$

The revenue recognized during 2018 that was included in the contract liability at the beginning of the period amounted to
$38,410.

Contract Costs

Costs incurred to obtain a customer contract are not material to the Company. The Company elected to apply the practical
expedient to not capitalize contract costs to obtain contracts with a duration of one year or less, which are expensed and
included within cost of goods and services in the Condensed Consolidated Statements of Earnings.

Critical Accounting Estimates

Estimates are used to determine the amount of variable consideration in contracts, the standalone selling price among separate
performance obligations and the measure of progress for contracts where revenue is recognized over time. The Company
reviews and updates these estimates regularly.

Some contracts with customers include variable consideration primarily related to volume rebates. The Company estimates
variable consideration at the most likely amount to determine the total consideration which the Company expects to be
entitled. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of
cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.
The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the
transaction price are based largely on an assessment of anticipated performance and all information (historical, current and
forecasted) that is reasonably available.

72

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

Changes in Accounting Policies

The Company adopted Topic 606, effective January 1, 2018, using the modified retrospective method applying Topic 606 to
contracts that are not complete as of the date of initial application. Under the modified retrospective method, the cumulative
effect of applying the standard has been recognized at the date of initial application, January 1, 2018. The comparative
information has not been adjusted and continues to be reported under Topic 605. The Company's accounting policy has been
updated to align with Topic 606, and no significant changes to revenue recognition have occurred as a result of the change.

Shipping and handling charges are not considered a separate performance obligation. If revenue is recognized for the related
good before the shipping and handling activities occur, the related costs of those shipping and handling activities must be
accrued.

Additionally, ayy ll taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-
a customer (e.g., sales, use, value added, and some excise taxes) are excluded from
producing transaction and collected fromff
revenue. The Company's policy elections related to shipping and handling and taxes have not changed with the adoption of
Topic 606.

Under Topic 605, revenue was generally recognized when all of the following criteria were met: a) persuasive evidence of an
arrangement exists, b) price is fixed or determinable, c) collectability is reasonably assured and d) delivery has occurred or
services have been rendered. The majority of the Company's revenue is generated through the manufacture and sale of a
broad range of specialized products and components and revenue was recognized upon transfer of title and risk of loss, which
was generally upon shipment. In limited cases, the Company's revenue arrangements with customers required delivery,
installation, testing, certification, or other acceptance provisions to be satisfied before revenue was recognized. The Company
included shipping costs billed to customers in Revenue and the related shipping costs in Cost of goods and services.

Impact on Financial Statements

The adoption of Topic 606 impacted certain contracts for highly customized customer products 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. For these
contracts, the Company now recognizes revenue over time based on the method and measure of progress that best depicts the
transfer of control to the customer of the goods or services to date relative to the remaining goods or services promised under
the contract.

The Company recorded a cumulative catch-up adjustment to retained earnings at January 1, 2018 for $0.2 million, related to
the impact of adopting Topic 606 under the modified retrospective method.

The impact of adopting Topic 606 was not material to the Company’s consolidated financial statements for the year ended
December 31, 2018.

4. Acquisitions

q

2018

During the year ended December 31, 2018, the Company acquired two businesses in separate transactions for total
consideration of $68,557, net of cash acquired. The businesses were acquired to complement and expand upon existing
operations within the Fluids and Refrigeration & Food Equipment segments. The goodwill identified by these acquisitions
reflects the benefits expected to be derived from product line expansion and operational synergies. The goodwill is non-
deductible for U.S. federal income tax purposes for these acquisitions.

On January 2, 2018, the Company acquired 100% of the voting stock of Ettlinger Group ("Ettlinger"), within the Fluids
segment for $53,218, net of cash acquired. In connection with this acquisition, the Company recorded goodwill of $36,303
and intangible assets of $19,907, primarily related to customer intangibles. The intangible assets are being amortized over 8
to 15 years.

On January 12, 2018, the Company acquired 100% of the voting stock of Rosario Handel B.V. (VV "Rosario"), within the
Refrigeration & Food Equipment segment for total consideration of $15,339, net of cash acquired. In connection with this

73

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

acquisition, the Company recorded goodwill of $10,408 and a customer intangible asset of $4,149. The customer intangible
asset is being amortized over 10 years.

The pro forma effects of these acquisitions on the Company’s operations are disclosed in this footnote.

2017

During the year ended December 31, 2017, the Company acquired two businesses in separate transactions for total
consideration of $34,300.

On April 5, 2017, the Company purchased 100% of the voting stock of Caldera Graphics S.A.S. ("Caldera") within the
Engineered Systems segment for $32,857, net of cash acquired and including contingent consideration. In connection with
this acquisition, the Company recorded goodwill of $27,174 and intangible assets of $8,169, primarily related to customer
intangibles. The goodwill is non-deductible for U.S. federal income tax purposes. The intangible assets are being amortized
over 7 to 15 years.

One other immaterial acquisition was completed during the year within the Engineered Systems segment.

The pro forma effects of these acquisitions on the Company’s operations are disclosed in this footnote.

2016

During 2016, the Company acquired six businesses, in separate transactions, for total consideration of $1,561,737, net of cash
acquired. During the measurement period, the Company recorded working capital adjustments which resulted in final net
cash consideration of $1,554,448. These acquisitions were completed primarily to complement and expand upon existing
operations within the Fluids and Engineered Systems segments.

Pro Forma Information

The following unaudited pro forma results of operations reflect the 2018 acquisitions as if they had occurred on January 1,
2017 and the 2017 acquisitions as if they had occurred on January 1, 2016. The pro forma information is not necessarily
indicative of the results that actually would have occurred, nor does it indicate future operating results. The supplemental pro
forma earnings reflect adjustments to earnings from continuing operations as reported in the Consolidated Statements of
Earnings to exclude nonrecurring expense related to the fair value adjustments to acquisition-date inventory (after-tax) and
acquisition-related costs (after-tax) from the year ended December 31, 2018. These adjustments were not material in 2018
and 2017. The supplemental pro forma earnings for the 2017 period were similarly adjusted for 2017 acquisitions charges as
if incurred at the beginning of 2016. The 2018 and 2017 supplemental pro forma earnings are also adjusted to reflect the
comparable impact of additional depreciation and amortization expense, net of tax, resulting from the fair value measurement
of tangible and intangible assets relating to 2018 and 2017 acquisitions.

Revenue:

As reported
Pro forma

Earnings:

As reported
Pro forma

Basic earnings per share:
As reported
Pro forma

Diluted earnings per share:

As reported
Pro forma

Years Ended December 31,

2018

2017

$

$

$

$

6,992,118
6,992,434

591,145
594,786

3.94
3.97

3.89
3.91

$

$

$

$

6,820,886
6,858,255

746,663
747,537

4.80
4.80

4.73
4.74

74

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

5. Discontinued and Disposed Operations

Discontinued Operations

The Apergy businesses, as discussed in Note 2, met the criteria to be reported as discontinued operations because the spin-off
is a strategic shift in business that has a major effect on the Company's operations and financial results. Therefore, the results
of discontinued operations for the years ended December 31, 2018, 2017 and 2016 include the historical results of Apergy
prior to its distribution on May 9, 2018. The years ended December 31, 2018, 2017 and 2016 included costs incurred by
Dover to complete the spin-off of Apergy amounting to $46,384, $15,270 and $0, respectively, reflected in selling, general
and administrative expenses in discontinued operations. Due to lump-sum payments made in 2018 for Apergy participants of
the Dover U.S. Pension Plan, non-cash settlement and curtailment costs of approximately $9,200 was classified within
discontinuing operations. See Note 2 — Spin-off of Apergy Corporation and Note 16 — Employee Benefit Plans for further
information.

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

Revenue
Cost of goods and services
Gross profit
Selling, general and administrative expenses
Operating earnings
Other expense, net
(Loss) earnings from discontinued operations before taxes
Provision (benefit) for income taxes
(Loss) earnings from discontinued operations, net of tax

Assets and liabilities of discontinued operations are summarized below:

Assets of Discontinued Operations
Accounts receivable
Inventories, net
Prepaid and other current assets

Total current assets

Property, plant and equipment, net
Goodwill and intangible assets, net
Other assets and deferred charges
Total assets

Liabilities of Discontinued Operations
Accounts payable
Other current liabilities

Total current liabilities

Deferred income taxes
Other liabilities
Total liabilities

Years Ended December 31,

2018
$ 403,688
254,205
149,483
147,261
2,222
9,048
(6,826)
14,052
$ (20,878)

2017
1,010,135
648,805
361,330
262,353
98,977
949
98,028
33,026
65,002

2016
$ 751,808
507,392
244,416
236,510
7,906
3,218
4,688
(2,076)
6,764

$

December 31, 2017

$

$

$

$

202,052
201,591
14,035
417,678
211,832
1,232,843
3,200
1,865,553

97,439
59,482
156,921
90,641
16,691
264,253

On May 9, 2018, all assets and liabilities of Apergy were spun-off. Therefore, as of December 31, 2018, there were no assets
and liabilities classified as discontinued operations.

75

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

Disposed Businesses

2018

There were no other material dispositions in 2018 aside from the spin-off of Apergy.

2017

On November 1, 2017, the Company completed the sale of the consumer and industrial winch business of Warn Industries,
Inc. ("Warn"), a wholly owned subsidiary of the Company, for total consideration of $250,283. The Company recognized a
pre-tax gain on sale of $116,932. The Company retained the automotive business of Warn within the Industrials platform of
the Engineered Systems segment.

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

Other immaterial dispositions completed during the year were recorded as a net pre-tax loss of $2,196. Gains and losses
recorded from the sale of businesses were reported in the gain on sale of businesses line in the Consolidated Statements of
Earnings.

2016

On February 17, 2016, the Company completed the sale of Texas Hydraulics, a custom manufacturer of fluid power
components within the Engineered Systems segment. The Company received gross proceeds of $47,300 and in connection
with the sale of Texas Hydraulics, the Company recorded a pre-tax gain of $11,853.

On November 1, 2016, the Company completed the sale of Tipper Tie, a global supplier of processing and clip packaging
machines within the Refrigeration & Food Equipment segment. The Company received gross proceeds of $158,887 with the
sale and recorded a pre-tax gain of $85,035.

Management evaluates Dover's businesses periodically and may from time to time sell or discontinue certain operations for
various reasons. The disposals in 2017 and 2016 did not represent strategic shifts in operations and, therefore, did not qualify
for presentation as a discontinued operation, unless otherwise noted.

6. Inventories

The components of inventories were as follows:

Raw materials
Work in progress
Finished goods
Subtotal
Less reserves
Total

$

December 31, 2018 December 31, 2017
400,009
$
128,296
251,402
779,707
(102,664)
677,043

439,616
154,878
265,722
860,216
(111,420)
748,796

$

$

At December 31, 2018 and 2017, approximately 11% of the Company's total inventories were accounted for using the LIFO
method.

76

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

7. Property, Plant and Equipment, net

The components of property, plant and equipment, net were as follows:

Land
Buildings and improvements
Machinery, equipment and other
Property, plant and equipment, gross
Total accumulated depreciation
Property, plant and equipment, net

$

December 31, 2018 December 31, 2017
54,918
$
517,049
1,472,852
2,044,819
(1,256,879)
787,940

53,623
529,982
1,555,345
2,138,950
(1,332,453)
806,497

$

$

Total depreciation expense was $138,712, $133,107 and $119,502 for the years ended December 31, 2018, 2017 and 2016,
respectively.

8. Goodwill and Other Intangible Assets

Goodwill

ASC 350 “Intangibles - Goodwill and Other Intangibles” provides guidance on an entity's subsequent measurement and
recognition of goodwill and other intangibles, including subsequent changes to carrying amounts, including impairment and
fair value adjustments. In accordance with the guidance set forth in ASC 350, and in connection with the separation of
Apergy, the Company was required to calculate the portion of goodwill included in the Apergy distribution. Using a relative
fair value approach, the Company reallocated $3,546 of goodwill from a reporting unit that included Apergy to a reporting
unit now included within the Engineered Systems segment. See Note 18 — Segment Information for further information.

The changes in the carrying value of goodwill by reportable operating segments were as follows:

Engineered
Systems

Fluids

Goodwill
Accumulated impairment loss
Balance at January 1, 2017
Acquisitions
Purchase price adjustments
Disposition of business
Foreign currency translation
Balance at December 31, 2017
Reallocation due to Apergy separation
Acquisitions
Purchase price adjustments
Foreign currency translation
Balance at December 31, 2018

$

$

$

1,636,291
(10,591)
1,625,700
30,180
6,826
(79,113)
61,796
1,645,389
3,546
—
328
(25,603)
1,623,660

$

$

$

1,563,938
(59,970)
1,503,968
—
(35,939)
—
36,255
1,504,284
—
36,303
—
(32,985)
1,507,602

$

Refrigeration &
Food Equipment
536,179
$
—
536,179
—
—
(296)
816
536,699
—
10,408
—
(1041)
546,066

$

Total

3,736,408
(70,561)
3,665,847
30,180
(29,113)
(79,409)
98,867
3,686,372
3,546
46,711
328
(59,629)
3,677,328

$

$

$

During 2018 and 2017, the Company recognized additions of $46,711 and $30,180, respectively, to goodwill as a result of
acquisitions as discussed in Note 4 — Acquisitions. During 2018 and 2017, the Company recorded adjustments totaling $328
and $(29,113), respectively, as a result of the finalization of purchase price allocation to assets acquired and liabilities
assumed related to acquisitions completed in 2017 and 2016.

The net goodwill transferred to Apergy on May 9, 2018 amounted to $899,888.

During 2017, the Company derecognized $79,409 of goodwill as a result of the disposition of businesses as discussed in Note
5 — Discontinued and Disposed Operations. The Company reallocated goodwill upon disposal based upon the fair value of
the disposed business relative to the remaining entities in its reporting unit.

77

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

Annual impairment testing

The Company tests goodwill for impairment annually in the fourth quarter of each year and whenever events or
circumstances indicate an impairment may have occurred. Consequently, in connection with the separation of Apergy, the
Company realigned its remaining businesses and reallocated goodwill among its reporting units based on their relative fair
value and tested goodwill for impairment in the second quarter of 2018. The Company concluded that no impairment
indicators existed.

The Company performed its annual goodwill impairment test during the fourth quarter of 2018 using a discounted cash flow
analysis as discussed in Note 1 — Description of Business and Summary of Significant Accounting Policies. The Company
performed a quantitative goodwill impairment test for each of its seven reporting units, concluding that the fair values of all
of its reporting units were substantially in excess of their carrying values. As previously noted, the fair values of each of the
Company’s reporting units was determined using a discounted cash flow analysis which includes management’s current
assumptions as to future cash flows and long-term growth rates. The discount rates used in these analyses varied by reporting
unit and were based on a capital asset pricing model and published relevant industry rates. The Company used discount rates
commensurate with the risks and uncertainties inherent to each reporting unit and in our internally developed forecasts.
Discount rates used in the 2018 reporting unit valuations ranged from 8.5% to 9.5%.

While the Company believes the assumptions used in the 2018 impairment analysis are reasonable and representative of
expected results, if market conditions worsen or persist for an extended period of time, an impairment of goodwill or assets
may occur. The Company will continue to monitor the long-term outlook and forecasts, including estimated future cash
flows, for these businesses and the impact on the carrying value of goodwill and assets.

Intangible Assets

The Company's definite-lived and indefinite-lived intangible assets by major asset class were as follows:

Amortized intangible assets:

Customer intangibles
Trademarks
Patents
Unpatented technologies

Distributor relationships
Drawings & manuals
Other

Total
Unamortized intangible assets:

Trademarks

Total intangible assets, net

December 31, 2018

December 31, 2017

Gross
Carrying
Amount

$1,395,742
214,774
144,302
155,380

82,970
31,849
21,046
2,046,063

Accumulated
Amortization

Net
Carrying
Amount

Gross
Carrying
Amount

Accumulated
Amortization

$

$

645,305
72,305
128,254
85,560

37,943
23,273
15,835
1,008,475

$ 750,437
142,469
16,048
69,820

45,027
8,576
5,211
1,037,588

$1,405,361
217,621
145,577
152,913

85,794
32,739
23,095
2,063,100

559,447
58,523
123,135
71,284

32,092
20,767
12,028
877,276

Net
Carrying
Amount

$ 845,914
159,098
22,442
81,629

53,702
11,972
11,067
1,185,824

96,668
$2,142,731

$

—
1,008,475

96,668
$1,134,256

96,800
$2,159,900

$

—
877,276

96,800
$1,282,624

The Company recorded $24,056 of acquired intangible assets in 2018. See Note 4 — Acquisitions.

Amortization expense was $143,868, $150,171 and $130,171, including acquisition-related intangible amortization of
$142,170, $148,147 and $128,007, for the years ended December 31, 2018, 2017 and 2016, respectively.

78

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

Estimated future amortization expense related to intangible assets held at December 31, 2018 is as follows:

2019
2020
2021
2022
2023

9. Other Accrued Expenses and Other Liabilities

The following table details the major components of Other accrued expenses:

Warranty
Contract liabilities - current
Taxes other than income
Accrued rebates and volume discounts
Restructuring and exit costs
Accrued interest
Accrued commissions (non-employee)
Other (none of which are individually significant)
Total current liabilities

Estimated Amortization
131,936
$
123,425
117,381
103,917
93,854

$

December 31, 2018 December 31, 2017
51,360
$
48,268
35,976
36,367
31,312
31,066
12,481
87,605
334,435

42,498
36,461
34,785
38,064
27,697
25,390
17,847
90,710
313,452

$

$

The following table details the major components of Other liabilities (non-current):

Defined benefit and other post-retirement benefit plans
Unrecognized tax benefits
Deferred compensation
Legal and environmental
Contract liabilities - non current
Warranty
Other (none of which are individually significant)
Total other liabilities

Warranty

$

December 31, 2018 December 31, 2017
185,972
$
84,452
77,860
34,105
9,916
8,043
25,200
425,548

167,930
112,299
81,332
31,462
9,382
7,575
22,415
432,395

$

$

Estimated warranty program claims are provided for at the time of sale. Amounts provided for are based on historical costs
and adjusted for new claims. Additionally, a warranty accrual related to a product recall was $497 and $6,613, at December
31, 2018 and 2017, respectively. See Note 15 — Commitments and Contingent Liabilities for further details.The changes in
the carrying amount of product warranties were as follows:

Beginning Balance, December 31 of the Prior Year
Provision for warranties
Settlements made
Other adjustments, including acquisitions and currency translation
Ending Balance, December 31

Years Ended December 31,
2017

2016

2018

$

$

59,403
59,176
(66,687)
(1,819)
50,073

$

$

80,331
57,164
(71,068)
(7,024)
59,403

$

$

40,046
66,457
(33,759)
7,587
80,331

79

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

10. Restructuring Activities

The Company initiated various restructuring programs and incurred severance and other restructuring costs by segment as
follows:

Engineered Systems
Fluids
Refrigeration & Food Equipment
Corporate
Total
These amounts are classified in the Consolidated Statements of Earnings as follows:
Cost of goods and services
Selling, general and administrative expenses
Total

$

$

$

$

$

2016

Years Ended December 31,
2017
12,066
16,348
14,070
9,776
52,260

2018
21,040
25,744
3,475
8,244
58,503

4,097
19,143
928
837
25,005

$

$

$

16,921
41,582
58,503

$

$

16,658
35,602
52,260

$

$

5,335
19,670
25,005

Total restructuring charges of $58,503 incurred during the year ended December 31, 2018, were a result of restructuring
programs initiated in 2017 and 2018. Restructuring expense includes $56,138 related to two significant rightsizing programs
for the year ended December 31, 2018. Rightsizing during the first half of the year were largely initiated in the fourth quarter
of 2017 and designed to better align the Company's cost structure in preparation for the Apergy separation and included
targeted facility consolidations, headcount reductions and other measures to further optimize operations. The rightsizing
actions taken due to the Apergy separation are substantially complete. Rightsizing in the second half of 2018 were comprised
primarily of broad-based selling, general and administrative expense reduction and footprint consolidation initiatives
designed to increase operating margin, enhance operations and position the Company for sustained growth and investment.
The Company expects to incur total charges of approximately $42 million related to selling, general and administrative
expense reduction initiatives, $37 million of which was incurred during the year ended December 31, 2018 and
approximately $5 million of which the Company expects to incur in 2019. The Company expects to incur total restructuring
charges of approximately $15 million related to the footprint consolidation initiatives, $5 million of which was incurred
during the year ended December 31, 2018 and approximately $10 million of which the Company expects to incur in 2019 and
2020. Additional programs, beyond the scope of the announced programs may be implemented during 2019 with related
restructuring charges.

The $58.5 million of restructuring charges incurred during 2018 included the following programs:

•

•

•

•

The Engineered Systems segment recorded $21,040 of restructuring charges related to programs across the segment
focused on headcount reductions and manufacturing plant consolidation.

The Fluids segment recorded $25,744 of restructuring charges principally related to headcount reductions and
manufacturing plant and facility consolidations, focused on achieving long-term footprint optimization.

The Refrigeration & Food Equipment segment recorded $3,475, of restructuring charges primarily due to headcount
reductions, product exit and manufacturing plant consolidation.

Corporate recorded $8,244 of restructuring charges primarily related to headcount reductions.

Restructuring expenses incurred in 2017 and 2016 also included headcount reduction, targeted facility consolidations at
certain businesses and actions taken to optimize the Company's cost structure.

80

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

The following table details the Company’s severance and other restructuring accrual activities:

Severance

Exit

Total

$

$

$

Balance at January 1, 2016
12,103
Restructuring charges
25,005
(22,249)
Payments
(2,971)
Other, including foreign currency translation
Balance at December 31, 2016
11,888
Restructuring charges
52,260
(22,605)
Payments
(10,272)
Other, including foreign currency translation
Balance at December 31, 2017
31,271
Restructuring charges
58,503
(52,000)
Payments
(9,610)
Other, including foreign currency translation
Balance at December 31, 2018
28,164
(1) Other activity in exit reserves primarily represents the non-cash write-off of certain long-lived assets and inventory in connection with
certain facility closures and product exits.

2,232
5,839
(5,138)
(1,703) (1)
1,230
20,032
(5,707)
(9,239) (1)
6,316
13,357
(8,713)
(7,080) (1)
3,880

9,871
19,166
(17,111)
(1,268)
10,658
32,228
(16,898)
(1,033)
24,955
45,146
(43,287)
(2,530)
24,284

$

$

$

The restructuring accrual balances at December 31, 2018 primarily reflects restructuring plans initiated during the year,
inclusive of rightsizing-related restructuring and ongoing lease commitment obligations for facilities closed in prior periods.

11. Borrowings and Lines of Credit

Borrowings consist of the following:

Short-term:
Current portion of long-term and short-term borrowings
Commercial paper
Notes payable and current maturities of long-term debt

December 31, 2018 December 31, 2017

$

$

— $

220,318
220,318

$

350,402
230,700
581,102

Carrying amount (1)

Principal

December 31,
2018

December 31,
2017

$

— $

Long-term:
5.45% 10-year notes due March 15, 2018
2.125% 7-year notes due December 1, 2020 (euro-denominated)
4.30% 10-year notes due March 1, 2021
3.150% 10-year notes due November 15, 2025
1.25% 10-year notes due November 9, 2026 (euro-denominated)
6.65% 30-year debentures due June 1, 2028
5.375% 30-year debentures due October 15, 2035
6.60% 30-year notes due March 15, 2038
5.375% 30-year notes due March 1, 2041
Other
Total long-term debt
Less long-term debt current portion
Net long-term debt
(1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $15.8
million and $17.6 million as of December 31, 2018, and December 31, 2017, respectively. Total deferred debt issuance costs were $13.0
million and $14.9 million as of December 31, 2018, and December 31, 2017, respectively.

349,918
354,349
448,831
394,695
701,058
198,954
295,561
247,713
343,600
2,034
3,336,713
(350,011)
2,986,702

339,657
449,200
395,368
672,103
199,054
295,811
247,827
343,877
763
2,943,660
—
2,943,660

350,000
300,000
450,000
400,000
600,000
200,000
300,000
250,000
350,000

$
€
$
$
€
$
$
$
$

$

$

The discounts are being amortized to interest expense using the effective interest method over the life of the issuances.

81

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

On March 15, 2018, the outstanding 5.45% notes with a principal value of $350.0 million matured. The repayment of
debt was funded by the Company's commercial paper program and existing cash balances.

The Company maintains a $1 billion five-year unsecured committed revolving credit facility with a syndicate of banks which
expires on November 10, 2020. At the Company's election, loans under the Credit Agreement will bear interest at a base rate
plus an applicable margin. In addition, the Credit Agreement requires the Company to pay a facility fee and imposes various
restrictions on the Company such as, among other things, the requirement for the Company to maintain an interest coverage
ratio of consolidated EBITDA to consolidated net interest expense of greater than or equal to 3.0 to 1. The Company was in
compliance with all covenants in the Credit Agreement and other long-term debt covenants at December 31, 2018 and had a
coverage ratio of 9.6 to 1.0. The Company primarily uses this facility as liquidity back-up for its commercial paper program
and has not drawn down any loans under the facility and does not anticipate doing so. The Company generally uses
commercial paper borrowings for general corporate purposes, funding of acquisitions and the repurchases of its common
stock.

As of December 31, 2018, the future maturities of long-term debt were as follows:

2019
2020
2021
2022
2023
2024 and thereafter
Total

Letters of Credit

Future Maturities

—
340,369
449,200
—
—
2,154,091
2,943,660

$

$

As of December 31, 2018, the Company had approximately $144.5 million outstanding in letters of credit and guarantees
with financial institutions, which expire on various dates in 2019 through 2028. These letters of credit are primarily
maintained as security for insurance, warranty and other performance obligations. In general, the Company would only be
liable for the amount of these guarantees in the event of default in the performance of its obligations, the probability of which
is believed to be remote.

12. Financial Instruments

Derivatives

The Company is exposed to market risk for changes in foreign currency exchange rates due to the global nature of its
operations. In order to manage this risk the Company has hedged portions of its forecasted sales and purchases, which occur
within the next twelve months and are denominated in non-functional currencies, with currency forward contracts designated
as cash flow hedges. At December 31, 2018 and 2017, the Company had contracts with U.S. dollar equivalent notional
amounts of $153,873 and $115,580, respectively, to exchange foreign currencies, principally the Pound Sterling, Chinese
yuan, Swedish krona, Euro, and Canadian dollar. The Company believes it is probable that all forecasted cash flow
transactions will occur.

In addition, the Company had outstanding contracts at December 31, 2018 and 2017 with a total notional amount of $66,906
and $59,952, respectively, that are not designated as hedging instruments. These instruments are used to reduce the
Company's exposure to operating receivables and payables that are denominated in non-functional currencies. Gains and
losses on these contracts are recorded in other expense (income), net in the Consolidated Statements of Earnings.

82

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

The following table sets forth the fair values of derivative instruments held by the Company as of December 31, 2018 and
2017 and the balance sheet lines in which they are recorded:

Fair Value Asset (Liability)

Foreign currency forward
Foreign currency forward

December 31, 2018 December 31, 2017 Balance Sheet Caption
$

$

358 Prepaid/Other assets
(2,243) Other accrued expenses

1,874
(1,165)

For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Other
comprehensive earnings (loss), net of tax as a separate component of the Consolidated Statements of Stockholders' Equity
and is reclassified into Cost of goods and services in the Consolidated Statements of Earnings during the period in which the
hedged transaction is recognized. The amount of gains or losses from hedging activity recorded in earnings is not significant
and the amount of unrealized gains and losses from cash flow hedges, which are expected to be reclassified to earnings in the
next twelve months, is not significant; therefore, additional tabular disclosures are not presented. There are no amounts
excluded from the assessment of hedge effectiveness and the Company's derivative instruments that are subject to credit risk
contingent features were not significant.

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 these counterparties is considered unlikely as the Company’s policy is to
contract with highly-rated, diversified counterparties.

The Company has designated the €300,000 and €600,000 of euro-denominated notes issued December 4, 2013 and
November 9, 2016, respectively, as a hedge of a portion of its net investment in euro-denominated operations. Changes in the
value of the euro-denominated debt are recognized in foreign currency translation adjustments within other comprehensive
earnings (loss) of the Consolidated Statements of Comprehensive Earnings to offset changes in the value of the net
investment in euro-denominated operations. Changes in the value of the euro-denominated debt resulting from exchange rate
differences are offset by changes in the net investment due to the high degree of effectiveness between the hedging
instruments and the exposure being hedged.

Amounts recognized in other comprehensive earnings (loss) for the gains (losses) on its net investment hedges were as
follows:

Gain/(loss) on euro-denominated debt
Tax (expense)/benefit
Gain/(loss) on net investment hedges, net of tax

Fair Value Measurements

2018
45,230
(9,498)
35,732

$

$

2017

$ (125,262) $
43,842
$ (81,420) $

2016
53,791
(18,827)
34,964

Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, 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 instrument’s 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 as follows:

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

Level 2 inputs include 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 inputs are unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own
assumptions.

83

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

The Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 were as
follows:

Assets:

Foreign currency cash flow hedges

Liabilities:

Foreign currency cash flow hedges

December 31,
2018
Level 2

December 31,
2017
Level 2

$

1,874

$

358

1,165

2,243

The derivative contracts are measured at fair value using models based on observable market inputs such as foreign currency
exchange rates and interest rates; therefore, they are classified within Level 2 of the fair value hierarchy.

In addition to fair value disclosure requirements related to financial instruments carried at fair value, accounting standards
require disclosures regarding the fair value of all of the Company’s financial instruments. The estimated fair value of long-
term debt at December 31, 2018 and 2017 was $3,132,330 and $3,324,776, respectively, compared to the carrying value of
$2,943,660 and $2,986,702, respectively. The estimated fair value of long-term debt is based on quoted market prices for
similar instruments and is, therefore, classified as Level 2 within the fair value hierarchy. The carrying values of cash
equivalents, trade receivables, accounts payable and notes payable are reasonable estimates of their fair values as of
December 31, 2018 and 2017 due to the short-term nature of these instruments.

13. 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 Earnings:

Domestic
Foreign
Total

$

$

Years Ended December 31,
2017
544,900
330,915
875,815

2018
344,793
380,585
725,378

$

$

$

$

2016
423,006
261,638
684,644

Income tax expense (benefit) relating to continuing operations for the years ended December 31, 2018, 2017 and 2016 is
comprised of the following:

Years Ended December 31,
2017

2018

2016

Current:

U.S. federal
State and local
Foreign
Total current
Deferred:

U.S. federal
State and local
Foreign
Total deferred
Total expense

$

$

47,445
14,120
86,523
148,088

876
626
(15,357)
(13,855)
134,233

$

$

188,559
18,857
43,228
250,644

(121,879)
(1,247)
1,634
(121,492)
129,152

$

$

113,591
17,037
81,034
211,662

15,355
1,428
(45,929)
(29,146)
182,516

84

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

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

Years Ended December 31,
2017

2018

2016

U.S. federal income tax rate
State and local taxes, net of federal income tax benefit
Foreign operations tax effect
SAB 118
Domestic manufacturing deduction
Foreign tax credits
Stock options
Changes in tax law
Disposition of businesses
Other
Effective tax rate from continuing operations

21.0 %
1.6
(1.1)
(0.6)
—
(0.3)
(2.0)
—
—
(0.1)
18.5 %

35.0 %
1.0
(6.2)
—
(1.7)
0.1
(1.0)
(6.7)
(4.6)
(1.2)
14.7 %

35.0 %
1.8
(6.8)
—
(1.7)
(0.2)
—
(1.4)
—
—
26.7 %

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

December 31, 2018 December 31, 2017

Deferred Tax Assets:
Accrued compensation, principally postretirement and other employee benefits $
Accrued expenses, principally for state income taxes, interest and warranty
Net operating loss and other carryforwards
Inventories, principally due to reserves for financial reporting purposes and
capitalization for tax purposes
Accounts receivable, principally due to allowance for doubtful accounts
Accrued insurance
Long-term liabilities, principally warranty, environmental and exit costs
Other assets
Total gross deferred tax assets
Valuation allowance
Total deferred tax assets, net of valuation allowances
Deferred Tax Liabilities:
Intangible assets, principally due to different tax and financial reporting bases
and amortization lives
Property, plant and equipment, principally due to differences in depreciation
Accounts receivable
Total gross deferred tax liabilities
Net deferred tax liability

$

$

72,795
30,159
290,629

19,228
5,083
1,897
4,183
(23,533)
400,441
(264,398)
136,043

(394,851)
(49,380)
(1,704)
(445,935)
(309,892) $

Classified as follows in the Consolidated Balance Sheets:
Other assets and deferred charges
Deferred income taxes

$

$

$

29,433
(339,325)
(309,892) $

63,463
20,400
268,131

11,659
6,426
1,264
5,920
(15,467)
361,796
(238,236)
123,560

(406,197)
(37,783)
(4,654)
(448,634)
(325,074)

23,127
(348,201)
(325,074)

As of December 31, 2018, the Company had non-U.S loss carryforwards of $1,048 million primarily resulting from non-
operating activities. The entire balance of the non-U.S. losses as of December 31, 2018 is available to be carried forward,
with $150.6 million of these losses beginning to expire during the years 2019 through 2038. The remaining $897.5 million of
such losses can be carried forward indefinitely.

The Company has $62.9 million and $59.8 million of state tax loss carryforwards as of December 31, 2018 and 2017,
respectively that are available for use by the Company between 2019 and 2038.

85

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

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.

On December 22, 2017, the Tax Reform Act was enacted which permanently reduced the U.S. corporate income tax rate from
a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the reduction in the U.S. corporate income tax
rate, the Company revalued its ending net deferred tax liabilities as of December 31, 2017 and recognized a provisional tax
benefit of $172.0 million. The Tax Reform Act also imposed a tax for a one-time deemed repatriation of post-1986 unremitted
foreign earning and profit through the year ended December 31, 2018. As of December 31, 2017, the Company recorded
provisional tax expense related to the deemed repatriation of $111.6 million payable over eight years. The GILTI provisions
of the Tax Reform Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of
an allowable return on the foreign subsidiary’s tangible assets.

On December 22, 2017, the SEC staff issued SAB 118 to address the application of U.S. GAAP in situations when a
registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable
detail to complete the accounting for certain income tax effects of the Tax Reform Act. In accordance with the SAB 118
guidance, the Company recognized the provisional tax impacts related to deemed repatriated earnings and the benefit for the
revaluation of deferred tax assets and liabilities in its consolidated financial statements for the year ended December 31,
2017. In accordance with SAB 118, the Company finalized the financial reporting impact of the Tax Reform Act in the fourth
quarter of 2018. For the year ended December 31, 2018, the Company recorded a $4.2 million net tax benefit, which resulted
in a 0.6% decrease in the effective tax rate, as an adjustment to the provisional estimates as a result of additional regulatory
guidance and changes in interpretations and assumptions the Company has made as a result of the Tax Reform Act.

Unrecognized Tax Benefits

The Company files U.S. federal, state, local and foreign tax returns. The Company is routinely audited by the tax authorities
in these jurisdictions, and a number of audits are currently underway. It is reasonably possible during the next twelve months
that uncertain tax positions may be settled, which could result in a decrease in the gross amount of unrecognized tax benefits.
This decrease may result in an income tax benefit. Due to the potential for resolution of federal, state and foreign
examinations, and the expiration of various statutes of limitation, the Company's gross unrecognized tax benefits balance may
change within the next twelve months by a range of zero to $12.5 million. The Company is no longer subject to examinations
of its federal income tax returns through 2014. All significant state, local and international matters have been concluded
through 2012. The Company believes adequate provision has been made for all income tax uncertainties.

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

Unrecognized tax benefits at January 1, 2016

Additions based on tax positions related to the current year
Additions for tax positions of prior years
Reductions for tax positions of prior years
Cash settlements
Lapse of statutes

Unrecognized tax benefits at December 31, 2016

Additions based on tax positions related to the current year
Additions for tax positions of prior years
Reductions for tax positions of prior years
Cash settlements
Lapse of statutes

Unrecognized tax benefits at December 31, 2017

Additions based on tax positions related to the current year
Additions for tax positions of prior years
Reductions for tax positions of prior years
Cash settlements
Lapse of statutes

Unrecognized tax benefits at December 31, 2018 (1)

86

Total

66,088
7,929
9,076
(3,067)
(3,106)
(6,605)
70,315
14,466
4,105
(9,653)
(954)
(10,245)
68,034
15,580
29,637
(5,226)
(7,345)
(7,219)
93,461

$

$

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

(1) If recognized, the net amount of potential tax benefits that would impact the Company’s effective tax rate is $85.4 million. During the
years ended December 31, 2018, 2017 and 2016, the Company recorded expense (income) of $2.4 million, $(0.5) million and $0.7 million,
respectively, as a component of provision for income taxes related to the accrued interest and penalties on unrecognized tax benefits. The
Company had accrued interest and penalties of $18.8 million at December 31, 2018 and $16.5 million at December 31, 2017, which are not
included in the above table.

14. Equity and Cash Incentive Program

The Company's share-based awards are typically granted annually at its regularly scheduled first quarter Compensation
Committee meeting. Additionally, in the second quarter, the Company granted equity awards to its new President and Chief
Executive Officer. Awards made pursuant to the terms of the Company's 2012 Equity and Cash Incentive Plan (the "2012
Plan"), which was approved by shareholders on May 3, 2012. This plan replaced the 2005 Equity and Cash Incentive Plan
(the "2005 Plan"), which would have otherwise terminated according to its terms on January 31, 2015 and the 1996 Non-
Employee Directors Stock Compensation Plan (the "Directors Plan"), which would have otherwise terminated according to
its terms on December 31, 2012. Upon adoption of the 2012 Plan, no additional awards could be granted under the 2005 Plan.
Officers and other key employees, as well as non-employee directors, are eligible to participate in the 2012 Plan, which has a
ten-year term and will terminate on May 3, 2022. The 2012 Plan provides for stock options and SARs grants, restricted stock
awards, restricted stock unit awards, performance share awards, cash performance awards, directors' shares and deferred
stock units. Under the 2012 Plan, a total of 17,000,000 shares of common stock are reserved for issuance, subject to
adjustments resulting from stock dividends, stock splits, recapitalizations, reorganizations and other similar changes.

The exercise price per share for SARs is 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 SARs are exercised. The period during which SARs are
exercisable is fixed by the Company’s Compensation Committee at the time of grant. Generally, the SARs vest after three
years of service and expire at the end of ten years.

In addition, in connection with the separation of Apergy, the Company modified the outstanding equity awards for its
employees. The awards were modified such that all individuals received an equivalent fair value both before and after the
separation of Apergy. This modification resulted in the issuance of an additional 1,138,008 SARs, 26,316 performance shares,
and 47,063 RSUs. The exercise price of these outstanding awards, where applicable, was adjusted to preserve the value of the
awards immediately prior to the separation. As no incremental fair value was awarded as a result of the issuance of these
additional shares, the modification did not result in additional compensation expense.

Stock-based compensation costs are reported within Selling, general and administrative expenses in the Consolidated
Statements of Earnings. The following table summarizes the Company’s compensation expense relating to all stock-based
incentive plans:

Pre-tax stock-based compensation expense (continuing)
Tax benefit
Total stock-based compensation expense, net of tax

$

$

Years Ended December 31,
2017
24,073
(8,411)
15,662

2018
23,698
(2,722)
20,976

2016
18,650
(6,579)
12,071

$

$

$

$

Pre-tax stock-based compensation expense attributable to Apergy employees for the year ended December 31, 2018, 2017
and 2016 was $744, $2,454 and $2,366, respectively. These costs are reported within earnings from discontinued operations
in the Condensed Consolidated Statement of Earnings.

On January 1, 2017, the Company adopted ASU 2016-09, Compensation: Stock Compensation (Topic 718). The adoption of
the new standard resulted in the recognition of excess tax benefits in the Company's provision for income taxes within the
Consolidated Statements of Earnings rather than paid-in capital of $14,759 and $8,365 for the years ended December 31,
2018 and 2017, respectively. The Company recognized a net tax benefit of $4,964 during 2016 for the exercise of SARs,
restricted stock awards, restricted stock unit awards and performance share awards. These benefits for 2016 have been
recorded as an increase to additional paid-in capital and are reflected as financing cash inflows in the Consolidated
Statements of Cash Flows.

87

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

SARs

In 2018, 2017 and 2016, the Company issued SARs covering 757,603, 1,028,116 and 1,346,354 shares, respectively. Since
2006, the Company has only issued SARs and 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:

Risk-free interest rate
Dividend yield
Expected life (years)
Volatility
Grant price (1)
Fair value at date of grant (1)
(1) Updated to reflect the modification of grants in connection with the separation of Apergy on May 9, 2018.

2018
2.58 % - 2.87%
1.99 % - 2.43%
5.6 - 5.7
20.95 % - 21.20%
$79.75 - $82.09
$14.58 - $15.41

2017
1.80 %
2.27 %
4.6

2016
1.05 %
3.09 %
4.6
21.90 % 26.17 %
$ 48.28
$ 66.85
7.80
$
$ 10.65

Expected volatilities are based on Dover's stock price history, including implied volatilities from traded options on Dover
stock. The Company uses historical data to estimate SAR exercise and employee termination patterns within the valuation
model. The expected life of SARs granted is derived from the output of the option valuation model and represents the average
period of time that SARs granted are expected to be outstanding. The interest rate for periods within the contractual life of the
awards is based on the U.S. Treasury yield curve in effect at the time of grant.

A summary of activity relating to SARs granted under the 2012 Plan and the predecessor plans for the year ended
December 31, 2018 is as follows:

Outstanding at January 1, 2018
Granted (1)
Surrendered upon spin-off (2)
Modification upon spin-off (3)
Forfeited / expired

Exercised

Outstanding at December 31, 2018

SARs

Weighted Average
Exercise Price

Weighted Average
Remaining
Contractual Term
(Years)

$

62.78

81.43

68.36

—

68.76

47.17

60.19

6.2

Number of Shares
6,573,979

757,603

(210,119)

1,138,008

(438,014)

(2,492,253)

5,329,204

4.5
Exercisable at December 31, 2018
(1) Weighted average grant-date fair value updated to reflect the modification of grants in connection with the separation of Apergy on May
9, 2018.
(2) In connection with the spin-off on May 9, 2018, Apergy employees surrendered their outstanding Dover equity awards, which were then
converted to Apergy equity awards.
(3) Subsequent to the separation of Apergy, the Company modified its outstanding equity awards to employees such that all individuals
received an equivalent fair value both before and after the separation, which resulted in a lower exercise price for all outstanding equity
awards at the time of modification.

2,661,980

57.26

$

88

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

The following table summarizes information about outstanding SARs at December 31, 2018:

SARs Outstanding
Weighted
Average
Remaining
Life
in Years

Weighted
Average
Exercise
Price

Aggregate
Intrinsic
Value

$
$
$

29.61
50.13
69.79

0.9 $
5.3
7.3

$

5,601
48,394
10,881
64,876

SARs Exercisable

Weighted
Average
Exercise
Price

$
$
$

29.61
31.87
65.33

Weighted
Average
Remaining
Life
in Years

Aggregate
Intrinsic
Value

0.9 $
3.6
5.7

$

5,601
23,646
7,368
36,615

Number
of Shares
135,497
1,233,688
1,292,795
2,661,980

Range of
Exercise Prices
$21.89 - $37.79
$40.54 - $58.69
$61.79 - $82.51

Number
of Shares
135,497
2,323,949
2,869,758
5,329,204

Unrecognized compensation expense related to SARs not yet exercisable was $8,315 at December 31, 2018. This cost is
expected to be recognized over a weighted average period of 1.8 years.

Other information regarding the exercise of SARs is listed below:

SARs
Fair value of SARs that became exercisable
Aggregate intrinsic value of SARs exercised

Performance Share Awards

2018

2017

2016

$
12,832
$ 101,365

$
$

16,006
44,646

$
$

24,843
34,916

Performance share awards granted are expensed over the three-year requisite performance and service period. Awards become
vested if (1) the Company achieves certain specified internal metrics and (2) the employee remains continuously employed
by the Company during the performance period. Partial vesting may occur after separation from service in the case of certain
terminations not for cause and for retirements.

In 2018, 2017 and 2016, the Company issued performance shares covering 122,459, 57,958 and 79,561 shares, respectively.
The performance share awards granted in these years are considered performance condition awards as attainment is based on
Dover's performance relative to established internal metrics. The fair value of these awards was determined using Dover's
closing stock price on the date of grant. The expected attainment of the internal metrics for these awards is analyzed each
reporting period, and the related expense is adjusted up or down based on expected attainment, if that attainment differs from
previous estimates. The cumulative effect on current and prior periods of a change in attainment is recognized in Selling,
general and administrative expenses in the Consolidated Statements of Earnings in the period of change.

The fair value and average attainment used in determining compensation cost of the performance shares issued in 2018, 2017
and 2016 are as follows for the year ended December 31, 2018:

Fair value per share at date of grant (1)
Average attainment rate reflected in expense
(1) Updated to reflect the modification of grants in connection with the separation of Apergy on May 9, 2018.

2018
$79.75 - $82.09
285.39 %

Performance shares
2017
$66.85

2016
$48.28
280.00 % 34.61 %

89

Weighted
Average
Grant-Date
Fair Value
65.80
$
80.30
67.39
—
67.88
48.27
76.99

$

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

A summary of activity for performance share awards for the year ended December 31, 2018 is as follows:

Number of
Shares

Unvested at January 1, 2018
Granted (1)
Surrendered upon spin-off (2)
Modification upon spin-off (3)
Forfeited
Vested
Unvested at December 31, 2018
(1) Weighted average grant-date fair value updated to reflect the modification of grants in connection with the separation of Apergy on May
9, 2018.
(2) In connection with the spin-off on May 9, 2018, Apergy employees surrendered their outstanding Dover equity awards, which were then
converted to Apergy equity awards.
(3) Subsequent to the separation of Apergy, the Company modified its outstanding equity awards to employees such that all individuals
received an equivalent fair value both before and after the separation.

124,467
122,459
(10,683)
26,316
(57,015)
(60,587)
144,957

Unrecognized compensation expense related to unvested performance shares as of December 31, 2018 was $21,603, which
will be recognized over a weighted average period of 1.9 years.

Restricted Stock Units

The Company also has restricted stock authorized for grant (as part of the 2012 Plan). Under this Plan, 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 three-year period, and restrictions lapse proportionately over the three-year period. The Company
granted 284,721, 174,203 and 249,263 of restricted stock units in 2018, 2017 and 2016, respectively. The fair value of these
awards was determined using Dover's closing stock price on the date of grant.

A summary of activity for restricted stock units for the year ended December 31, 2018 is as follows:

Unvested at January 1, 2018
Granted (1)
Surrendered upon spin-off (2)
Modification upon spin-off (3)
Forfeited
Vested
Unvested at December 31, 2018

Number of
Shares

333,886
284,721
(26,762)
47,063
(58,436)
(189,991)
390,481

Weighted
Average
Grant-Date
Fair Value
70.06
$
80.59
70.21
—
69.66
70.06
73.35

$

(1) Weighted average grant-date fair value updated to reflect the modification of grants in connection with the separation of Apergy on May
9, 2018.
(2) In connection with the spin-off on May 9, 2018, Apergy employees surrendered their outstanding Dover equity awards, which were then
converted to Apergy equity awards.
(3) Subsequent to the separation of Apergy, the Company modified its outstanding equity awards to employees such that all individuals
received an equivalent fair value both before and after the separation.

Unrecognized compensation expense relating to unvested restricted stock units as of December 31, 2018 was $18,987, which
will be recognized over a weighted average period of 1.9 years.

90

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

Directors' Shares

The Company issued the following shares to its non-employee directors under the 2012 Plan as partial compensation for
serving as directors of the Company:

Years ended December 31,
2017

2016

2018

Aggregate shares granted
Shares deferred
Net shares issued

15. Commitments and Contingent Liabilities

Lease Commitments

15,802
(9,917)
5,885

16,231
(11,337)
4,894

21,023
(11,882)
9,141

The Company leases certain facilities and equipment under operating leases, many of which contain renewal options. Total
rental expense, net of insignificant sublease rental income, for all operating leases was $78,674, $76,177 and $69,393 for the
years ended December 31, 2018, 2017 and 2016, respectively. Contingent rentals under the operating leases were not
significant.

The aggregate future minimum lease payments for operating and capital leases as of December 31, 2018 are as follows:

2019
2020
2021
2022
2023
Thereafter
Total

Guarantees

Operating
49,009
$
38,620
29,396
21,767
13,994
42,087
194,873

$

$

$

Capital

1,802
1,748
1,687
1,392
4,754
—
11,383

The Company has provided typical indemnities in connection with sales of certain businesses and assets, including
representations and warranties and related indemnities for environmental, health and safety, tax and employment matters. The
Company does not have any material liabilities recorded for these indemnifications and is not aware of any claims or other
information that would give rise to material payments under such indemnities.

Product Recall

During the fourth quarter of 2016, the Company determined that there was a quality issue with a product component part in
the Fluids segment and voluntarily reported this issue to the U.S. Consumer Product Safety Commission (“CPSC”). The
Company recorded warranty expense of $23,150 in costs of goods and services in the Consolidated Statement of Earnings for
the year ended December 31, 2016. During the first quarter of 2017, the Company announced a voluntary recall of the
product in collaboration with the CPSC. The warranty accrual was $497 and $6,613 in other accrued expenses in the
Consolidated Balance Sheets at December 31, 2018 and 2017, respectively.

Litigation

A few of the Company’s subsidiaries are involved in legal proceedings relating to the cleanup of waste disposal sites
identified under federal and state statutes which provide for the allocation of such costs among “potentially responsible
parties.” In each instance, the extent of the Company’s liability appears to be relatively insignificant in relation to the total
projected expenditures and the number of other “potentially responsible parties” involved and is anticipated to be immaterial
to the Company. In addition, a few of the Company’s subsidiaries are involved in ongoing remedial activities at certain
current and former plant sites, in cooperation with regulatory agencies, and appropriate reserves have been established. At

91

DOVER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATTT EMENTS
(Amounts in thousands except share data and where otherwise indicated)

December 31, 2018 and 2017, the Company has reserves totaling $31,797 and $34,991, respectively, fyy or environmental and
other matters, including private party claims for exposure to hazardous substances, that are probable and estimable.

ff

The Company and some of its subsidiaries are also parties to a number of other legal proceedings incidental to their
businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of the Company’s
products, exposure to hazardous substances, patent infringement, employment matters and commercial disputes. Management
and legal counsel, at least quarterly, ryy eview the probable outcome of such proceedings, the costs and expenses reasonably
expected to be incurred and currently accrued to-date and consider the availability and extent of insurance coverage. The
Company has reserves for other legal matters that are probable and estimable, and at December 31, 2018 and 2017, these
reserves were not significant. While it is not possible at this time to predict the outcome of these legal actions, in the opinion
of management, based on the aforementioned reviews, the Company is not currently involved in any legal proceedings which,
individually or in the aggregate, could have a material effect on its financial position, results of operations, or cash flows.

16. Employee Benefit Plans

p y

The Company offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as
employees in certain other countries. The Company’s expense relating to defined contribution plans was $46,030, $43,447
and $37,065 for the years ended December 31, 2018, 2017 and 2016, respectively. Revisions were made to the 2017 and 2016
defined contribution expenses and impacted only the disclosure as the costs were appropriately included in the Consolidated
Statement of Earnings. The revisions were not material to the prior annual periods.

The Company sponsors qualified defined benefit pension 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 also
provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of
qualified plan limits imposed by federal tax law.

In July 2013, the Company announced that, after December 31, 2013, the U.S. qualified and non-qualified defined benefit
plans would be closed to new employees. All pension-eligible employees as of December 31, 2013 will continue to earn a
pension benefit through December 31, 2023 as long as they remain employed by an operating company participating in the
impacted plans. The Company also announced that effective January 1, 2024, the plans would be frozen to any future benefit
accruals.

In connection with the spin-off, assets and liabilities related to the Norris USW participants were moved to a new plan
sponsored by Apergy. Assets and liabilities of several non-U.S. qualified and U.S. non-qualified plans were also transferred to
Apergy. Apergy participants (other than Norris USW participants) in the Dover U.S. pension plan (the "Plan") fully vested in
their benefits and ceased accruing future benefits. The separation of Apergy triggered a pension plan curtailment which
required a re-measurement of the Plan's benefit obligation in the second quarter, assuming a discount rate of 4.2% and an
expected return on assets of 6.8%. The Plan retained the obligation and participants were able to elect lump-sum payments
from plan assets. In 2018, the Plan made total lump sum payments of $74,016. Based on the total lump sum payments made
to both Apergy and other participants in the plan during the year and the second quarter re-measurement, the Company
recorded non-cash settlement and curtailment charges of approximately $13,939 in 2018, of which $9,200 was classified
within discontinued operations.

The Company also maintains other post-retirement benefit plans which cover approximately 409 participants, approximately
386 of whom are eligible for medical benefits. These plans are closed to new entrants. The supplemental and other post-
retirement benefit plans are supported by the general assets of the Company.

92

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

Obligations and Funded Status

The following tables summarize the Consolidated Balance Sheets impact, including the benefit obligations, assets and funded
status associated with the Company's significant defined benefit and other post-retirement benefit plans at December 31, 2018
and 2017.

Qualified Defined Benefits

U.S. Plan

Non-U.S. Plans

Non-Qualified
Supplemental
Benefits

Other Post-
Retirement
Benefits

2018

2017

2018

2017

2018

2017

2018

2017

Change in benefit obligation:

Benefit obligation at beginning of year

$ 566,389

$ 535,299

$ 278,188

$ 243,483

$ 106,012

$ 110,446

$

8,595

$ 12,263

Service cost

Interest cost

Plan participants' contributions

Benefits paid

Actuarial (gain) loss

Business acquisitions

Amendments

Settlements and curtailments

Currency translation and other

Spin-off of Apergy

9,019

20,756

—

12,083

21,718

—

5,359

4,962

1,279

5,688

5,263

1,237

2,624

3,204

—

2,473

4,076

—

(18,172)

(38,490)

(8,161)

(8,528)

(19,352)

(11,576)

(7,687)

593

(48,104)

35,446

(19,533)

—

69

(78,896)

—

(3,888)

—

364

(32)

1

—

—

3,073

(1,813)

21,554

(14,579)

8,812

1,810

—

—

20,423

—

—

(2,289)

—

—

(15,676)

—

—

—

—

—

30

290

—

(620)

(446)

—

—

—

—

—

68

783

—

(917)

946

—

(4,646)

—

98

—

Benefit obligation at end of year

447,173

566,389

270,329

278,188

66,836

106,012

7,849

8,595

Change in plan assets:

Fair value of plan assets at beginning of year

617,840

562,564

175,534

148,514

Actual (loss) return on plan assets

(32,939)

93,766

(8,490)

15,849

Company contributions

Plan participants' contributions

Benefits paid

Settlements and curtailments

Currency translation and other

Spin-off of Apergy

—

—

—

—

(18,172)

(38,490)

(74,016)

—

(3,813)

—

—

—

5,961

1,279

(8,161)

(1,472)

7,971

1,237

—

11,223

10,491

(13,285)

—

Fair value of plan assets at end of year

488,900

617,840

162,589

175,534

—

—

—

—

19,352

11,576

—

—

—

620

—

—

917

—

(8,528)

(19,352)

(11,576)

(620)

(917)

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

Funded (Unfunded) status

$ 41,727

$ 51,451

$(107,740) $(102,654) $ (66,836) $(106,012) $ (7,849) $ (8,595)

Amounts recognized in the consolidated
balance sheets consist of:

Assets and Liabilities:

Other assets and deferred charges

$ 41,727

$ 51,451

$

919

$

890

$

— $

— $

— $

—

Accrued compensation and employee benefits

Other liabilities (deferred compensation)

Assets (liabilities) of discontinued operations

—

—

—

—

(1,493)

(1,484)

(13,219)

(15,903)

(702)

(706)

— (107,166)

(102,172)

(53,617)

(75,911)

(7,147)

(7,889)

—

—

112

—

(14,198)

—

—

Total assets and liabilities

41,727

51,451

(107,740)

(102,654)

(66,836)

(106,012)

(7,849)

(8,595)

Accumulated Other Comprehensive Loss
(Earnings):

Net actuarial losses (gains)

Prior service cost (credit)

Net asset at transition, other

Deferred taxes

Total accumulated other comprehensive loss
(earnings), net of tax
Net amount recognized at December 31,

81,437

852

—

79,288

1,344

—

(72)

—

(3,500)

(60)

(17,597)

(30,777)

(14,861)

(14,982)

66,480

69,490

(25,186)

(13,780)

(1,164)

(748)

9,099

—

3,461

13,777

—

83

80

71

—

412

84

—

322

(681)

(342)

64,692

49,855

51,547

50,948

(12,626)

$ 106,419

$ 101,306

$ (56,193) $ (51,706) $ (79,462) $(105,932) $ (8,530) $ (8,937)

Accumulated benefit obligations

$ 438,005

$ 547,278

$ 258,109

$ 264,766

$ 60,080

$ 96,612

93

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

The Company’s net unfunded status at December 31, 2018 and 2017 includes net liabilities of $107,740 and $102,654,
respectively, relating to the Company’s significant
is not
economically advantageous to pre-fund the plans due to local regulations. The majority of the international obligations relate
to defined pension plans operated by the Company’s businesses in Germany, the United Kingdom and Switzerland.

international qualified plans, some in locations where it

The accumulated benefit obligation for all defined benefit pension plans was $756,194 and $908,656 at December 31, 2018
and 2017, respectively. Pension plans with accumulated benefit obligations in excess of plan assets consist of the following at
December 31, 2018 and 2017:

$

2018
330,168
311,192
154,673

$

2017
372,559
349,735
162,890

Projected benefit obligation (PBO)
Accumulated benefit obligation (ABO)
Fair value of plan assets

Net Periodic Benefit Cost

Components of the net periodic benefit cost were as follows:

Defined Benefit Plans

Qualified Defined Benefits

Service cost
Interest cost
Expected return on plan assets
Amortization of:

2018
$ 9,019
20,756
(39,045)

U.S. Plan
2017
$ 12,083
21,718
(39,812)

Prior service cost (credit)
Recognized actuarial loss (gain)
Transition obligation

Settlement and curtailment loss (gain)
Other
Net periodic benefit expense
Less: Discontinued operations

298
3,102
—
13,939 (1)
—
$ 8,069

10,109 (1)

427
5,582
—
76
—
74
3,383

$

2016
$ 13,913
23,046
(38,793)

733
6,437
—
—
35
$ 5,371
4,237

Non-U.S. Plans
2017
$ 5,688
5,263
(7,417)

2018
$ 5,359
4,962
(7,675)

2016
$ 5,590
5,593
(7,830)

Non-Qualified
Supplemental Benefits
2017
$ 2,473
4,076
—

2016
$ 2,959
5,268
—

2018
$ 2,624
3,204
—

(449)
2,952
1
7
—
$ 5,157
114

(425)
3,506
4
678
—
$ 7,297
810

(397)
2,658
4
1,103
—
$ 6,721
974

3,770
(1,132)
—
(1,381)
—
$ 7,085
279

4,411
(1,192)
—
—
—
$ 9,768
1,226

6,266
(560)
—
—
—
$13,933
1,222

Net periodic (income) expense -
Continuing operations
(1) $9.2 million of the total settlement and curtailment loss on the U.S. Plan is attributable to Apergy participants in the Dover Defined
Benefit Plan and has therefore, been reflected in the results of discontinued operations.

$ (3,309) $ 1,134

$ (2,040)

$ 8,542

$ 6,806

$ 6,487

$ 5,747

$ 5,043

$12,711

Other Post-Retirement Benefits

Service cost
Interest cost
Amortization of:

Prior service cost
Recognized actuarial (gain) loss

Settlement and curtailment gain
Net periodic expense (benefit)

2018

2017

2016

$

$

30
290

68
783

$

7
13
(30)
(161)
— (4,598)

$

303

$ (3,901) $

52
403

7
5
—
467

The curtailment gain in 2017 relates primarily to the impact of an amendment to the post-retirement plan in Brazil.

94

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

Amounts expected to be amortized from accumulated other comprehensive earnings (loss) into net periodic benefit cost
during 2019 are as follows:

Amortization of:

Prior service cost (credit)
Recognized actuarial loss (gain)
Transition obligation

Total

Assumptions

Qualified Defined Benefits
Non-U.S.
Plans

U.S. Plan

Non-Qualified
Supplemental
Benefits

Other Post-
Retirement
Benefits

$

$

303
—
—
303

$

$

(238) $
3,241
—
3,003

$

2811
(2,280)
—
531

$

$

13
(70)
—
(57)

The Company determines actuarial assumptions on an annual basis. The weighted average assumptions used in determining
the benefit obligations were as follows:

Discount rate
Average wage increase
Ultimate medical trend rate

Qualified Defined Benefits

U.S. Plan

2018
4.35 %
4.50 %
na

2017
3.65 %
4.00 %
na

Non-U.S. Plans
2017
2018
1.94 %
1.83 %
2.33 %
2.10 %
na
na

Non-Qualified
Supplemental
Benefits

Other Post-Retirement
Benefits

2018
4.30 %
4.50 %
na

2017
3.57 %
4.50 %
na

2018
4.15 %
na
5.00 %

2017
3.50 %
na
2.33 %

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

Qualified Defined Benefits

U.S. Plan

Non-U.S. Plans
2017
4.2%/3.65% (1) 4.10 % 4.40 % 1.94 % 2.06 % 2.32 % 3.57 % 3.97 % 4.18 % 3.50

2016

2018

2017

2018

2016

Non- Qualified
Supplemental Benefits
2016
2017
2018

Discount rate
Average wage increase
Expected return on
na
plan assets
(1) The separation of Apergy triggered a pension plan curtailment which required a re-measurement of the Plan's benefit obligation in the
second quarter 2018, assuming a discount rate of 4.2% and an expected return on assets of 6.8%.

4.00 % 4.00 % 2.33 % 2.34 % 2.25 % 4.50 % 4.50 % 4.50 %

6.8%/7.25% (1) 7.25 % 7.25 % 4.66 % 4.73 % 4.95 %

4.00 %

na

na

na

na

na

na

Other Post-
Retirement Benefits
2017
2016
2018
6.49 % 4.00 %
na

na

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 remeasurement in the second quarter of 2018, triggered by the Apergy spin-off,
resulted in an increase to the discount rate used in determining net periodic benefit cost from 3.65% to 4.20% for the balance
of 2018.

For other post-retirement benefit measurement purposes, a 7.00% annual rate of increase in the per capita cost of covered
benefits (i.e., health care cost trend rates) was assumed for 2019. The rate was assumed to decrease gradually to 5.00% by the
year 2027 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 other post-retirement benefit obligation as of December 31, 2018 by $75 and
$(68), respectively, and would have a negligible impact on the net post-retirement benefit cost for 2018.

Plan Assets

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.

95

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

As it relates to the funded defined benefit pension plans, 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 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 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 expected
return on assets assumption used for pension expense is developed through analysis of historical market returns, statistical
analysis, current market conditions and the past experience of plan asset investments. Overall, it is projected that the
investment of plan assets within Dover’s U.S. defined benefit plan will achieve a net return over time from the asset
allocation strategy of 6.80%.

The Company’s actual and target weighted average asset allocation for our U.S. Corporate Pension Plan was as follows:

Equity securities
Fixed income
Real estate and other
Total

2018

2017

36 %
55 %
9 %
100 %

57 %
33 %
10 %
100 %

Current
Target

40 %
55 %
5 %
100 %

While the non-U.S. investment policies are different for each country, the long-term objectives are generally the same as for
the U.S. pension assets. The Company's non-U.S. plans were expected to achieve rates of return on invested assets of 4.66%
in 2018, 4.73% in 2017 and 4.95% in 2016.

The fair values of both U.S. and non-U.S. pension plan assets by asset category within the fair value hierarchy (as defined in
Note 12 — Financial Instruments) were as follows:

U.S. Qualified Defined Benefits Plan

12/31/2018

12/31/2017

Corporate bonds
Government securities

Interest-bearing cash and short-term investments
Total investments at fair value
Investments measured at net asset value*

Collective funds
Real estate investments
Short-term investment funds

Total investments

Level 1

Level 2
— 150,179
113,931
—
264,110

1,586
2,066
3,652

Total
Fair
Value
150,179
115,517
2,066
267,762

Level 1
—
2,766
1,222
3,988

Level 2
74,509
130,774
—
205,283

Total
Fair
Value
74,509
133,540
1,222
209,271

—
—
—
3,652

— 175,963
32,686
—
12,489
—
488,900
264,110

—
—
—
3,988

— 352,481
48,294
—
7,794
—
617,840
205,283

The Company had no level 3 U.S. Plan assets at December 31, 2018 and 2017.

96

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

12/31/2018

12/31/2017

Non-U.S. Plans

Level 1
Common stocks
$ 28,528
Fixed income investments
—
Mutual funds
23,438
Cash and cash equivalents
470
Other
—
Total investments at fair value
$ 52,436
Investments measured at net asset value*
—
—
$ 52,436

Collective funds
Other

Total

Level 2
$

— $

27,797
—
—
2,390
$ 30,187

Level 3

Total Fair
Value

— $
—
—
—
21,283
$ 21,283

28,528
27,797
23,438
470
23,673
$ 103,906

Level 1
$ 28,761
—
34,075
4,633
—
$ 67,469

Level 2
$

— $

29,612
4,642
—
3,088
$ 37,342

—
—
$ 30,187

—
—
$ 21,283

54,505
4,178
$ 162,589

—
—
$ 67,469

—
—
$ 37,342

Level 3

Total Fair
Value

— $
—
—
—
4,592
4,592

28,761
29,612
38,717
4,633
7,680
$ 109,403

—
—
4,592

61,648
4,483
$ 175,534

$

$

* In accordance with Fair Value Measurement Topic 820 (Subtopic 820-10), certain investments that are measured at fair value using the
net asset value per share (or its equivalent) as a practical expedient were not classified in the fair value hierarchy. These are included to
permit reconciliation of the fair value hierarchy to the aggregate pension plan assets.

Common stocks represent investments in domestic and foreign equities, which are publicly traded on active exchanges and
are valued based on quoted market prices.

Fixed income investments include U.S. Treasury bonds and notes, which are valued based on quoted market prices, as well as
investments in other government and municipal securities and corporate bonds, which are valued based on yields currently
available on comparable securities of issuers with similar credit ratings.

Mutual funds are categorized as either Level 1, 2 or Net Asset Value (the "NAV") as a practical expedient depending on the
nature of the observable inputs. Collective trusts and real estate investment funds are valued using NAV as a practical
expedient as of the last business day of the year. The NAV is based on the underlying value of the assets owned by the fund,
minus its liabilities, and then divided by the number of shares outstanding. The value of the underlying assets is based on
quoted prices in active markets.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or
reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent
with other market participants, the use of different methodologies or assumptions to determine the fair value of certain
financial instruments could result in a different fair value measurement at the reporting date.

The availability of observable data is monitored by plan management to assess appropriate classification of financial
instruments within the fair value hierarchy. Depending upon the availability of such inputs, specific securities may transfer
between levels. In such instances, the transfer is reported at the end of the reporting period.

97

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

The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during 2017 and 2018,
due to the following:

Balance at January 1, 2017
Actual return on plan assets:

Relating to assets sold during the period
Relating to assets still held at December 31, 2017

Sales
Foreign currency translation
Balance at December 31, 2017
Actual return on plan assets:

Relating to assets still held at December 31, 2018

Insurance contracts added
Foreign currency translation
Balance at December 31, 2018

Future Estimates

Benefit Payments

Level 3

$

4,354

28
280
(456)
386
4,592

(29)
16,975
(255)
21,283

$

$

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

2019
2020
2021
2022
2023
2024 - 2028

Contributions

Qualified Defined Benefits

U.S. Plan

Non-U.S.
Plans

Non-
Qualified
Supplemental
Benefits

Other Post-
Retirement
Benefits

$

$

33,990
37,086
37,217
36,896
36,117
166,962

$

9,069
8,484
9,043
9,339
10,754
63,653

$

13,500
5,353
11,474
8,742
4,220
18,933

717
705
681
663
641
2,794

In 2019, the Company expects to contribute approximately $5.4 million to its non-U.S. plans and currently does not expect to
contribute to its U.S. plans.

98

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

17. Other Comprehensive Earnings (Loss)

The amounts recognized in other comprehensive earnings (loss) were as follows:

Year Ended December 31, 2018

Foreign currency translation adjustments
Pension and other postretirement benefit plans
Changes in fair value of cash flow hedges

Total other comprehensive (loss) earnings

Year Ended December 31, 2017

Foreign currency translation adjustments
Pension and other post-retirement benefit plans
Changes in fair value of cash flow hedges
Other

Total other comprehensive earnings

Year Ended December 31, 2016

Foreign currency translation adjustments
Pension and other postretirement benefit plans
Changes in fair value of cash flow hedges
Other

Total other comprehensive loss

Pre-tax

Tax

Net of tax

(69,468) $
(14,379) $
3,416
$
(80,431) $

$
9,498
3,241
$
(717) $
$

12,022

(59,970)
(11,138)
2,699
(68,409)

Pre-tax

103,214
28,784
(3,678)
(1,687)
126,633

$

$

Tax
43,842
(7,397)
1,287
202
37,934

Net of tax
147,056
21,387
(2,391)
(1,485)
164,567

$

$

Pre-tax

(86,876) $
5,936
860
(1,119)
(81,199) $

Tax
(18,827) $
(4,560)
(301)
134
(23,554) $

Net of tax

(105,703)
1,376
559
(985)
(104,753)

$

$

$

$

$

$

The components of accumulated other comprehensive earnings (loss) are as follows:

Cumulative foreign currency translation adjustments
Pension and other postretirement benefit plans
Changes in fair value of cash flow hedges and other

Total comprehensive earnings (loss) were as follows:

December 31, 2018 December 31, 2017
(93,925)
$
(100,538)
(296)
(194,759)

(142,567) $
(102,932)
2,403
(243,096) $

$

Years Ended December 31,
2017
811,665
164,567
976,232

2018
570,267
(68,409)
501,858

$

$

$

$

2016
508,892
(104,753)
404,139

Net earnings
Other comprehensive (loss) earnings
Comprehensive earnings

$

$

99

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

Amounts reclassified from accumulated other comprehensive earnings (loss) to earnings (loss) during the year ended
December 31, 2018, 2017 and 2016 were as follows:

Years Ended December 31,
2017

2016

2018

Pension and other postretirement benefit plans:

Amortization of actuarial losses
Amortization of prior service costs and transition obligation
Settlement and curtailment

Total before tax
Tax benefit
Net of tax
Cash flow hedges:
Net losses (gains) reclassified into earnings
Tax (benefit) expense
Net of tax

$

$

$
$
$

4,893
3,631
12,565
21,089
(4,459)
16,630

1,950
(409)
1,541

$

$

$

$

7,735
4,424
(3,844)
8,315
(2,503)
5,812

$

$

(908) $
318
(590) $

8,544
6,609
—
15,153
(5,073)
10,080

638
(223)
415

The Company recognizes net periodic benefit cost, which includes amortization of net actuarial losses, prior service costs and
transition obligation, in both selling, general and administrative expenses and cost of goods and services in the Consolidated
Statements of Earnings, depending on the functional area of the underlying employees included in the plans.

Cash flow hedges consist mainly of foreign currency forward contracts. The Company recognizes the realized gains and
losses on its cash flow hedges in the same line item as the hedged transaction, such as revenue, cost of goods and services, or
selling, general and administrative expenses in the Consolidated Statements of Earnings.

18. Segment Information

The Company's businesses are aligned around its key end markets to better focus on growth strategies, provide increased
opportunities to leverage Dover's scale and capitalize on productivity initiatives. Operating segments are defined as the
components of an enterprise for which separate financial information is available and regularly evaluated by the entity's chief
operating decision maker ("CODM") or decision-making group composed of Dover's Chief Executive Officer and Chief
Financial Officer, in making resource allocation decisions and evaluating performance.

As described in Note 2 - Spin-off of Apergy Corporation, Dover completed the distribution of Apergy to its shareholders on
May 9, 2018. Apergy holds entities conducting upstream energy businesses previously included in the Energy segment.
Following completion of the spin-off, the retained Precision Components (Bearings & Compression) and Tulsa Winch Group
businesses, which were historically reported within the former Energy segment, became part of the Fluids and Engineered
Systems segments, respectively. As a result of the spin-off of Apergy, the Company no longer has the Energy segment.

Effective the second quarter of 2018, the Company categorizes its operating companies into three reportable segments based
on how the CODM analyze performance, allocate capital and make strategic and operational decisions. The three reportable
segments are as follows:

•

•

•

Engineered Systems segment is comprised of two platforms, Printing & Identification and Industrials, and is focused
on the design, manufacture and service of critical equipment and components serving the fast-moving consumer
goods, digital textile printing, vehicle service, environmental solutions and industrial end markets.

Fluids segment, serving the Fueling & Transport, Pumps and Process Solutions end markets, is focused on the safe
handling of critical fluids, and providing critical components to the retail fueling, chemical, hygienic, oil and gas,
power generation and industrial end markets.

The Refrigeration & Food Equipment segment is a provider of customer-driven solutions and services for safe and
efficient production and processing of fuels worldwide and has a strong presence in the bearings and compression
components and automation markets.

100

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

Segment financial information and a reconciliation of segment results to consolidated results follows:

Revenue:

Engineered Systems
Fluids
Refrigeration & Food Equipment

Intra-segment eliminations
Total consolidated revenue
Earnings from continuing operations:
Segment earnings: (1)

Engineered Systems
Fluids
Refrigeration & Food Equipment

Total segment earnings
Corporate expense / other (2)
Interest expense
Interest income
Earnings before provision for income taxes and discontinued operations
Provision for income taxes
Earnings from continuing operations
Segment margins:

Engineered Systems
Fluids
Refrigeration & Food Equipment

Total Segments
Net earnings
Depreciation and amortization:
Engineered Systems
Fluids
Refrigeration & Food Equipment
Corporate

Consolidated total
Capital expenditures:

Years Ended December 31,
2017

2018

2016

$

$

$

$

$

$

2,742,948
2,797,338
1,453,093
(1,261)
6,992,118

451,270
389,804
136,119
977,193
129,724
130,972
(8,881)
725,378
134,233
591,145

16.5 %
13.9 %
9.4 %
14.0 %
8.5 %

75,879
140,444
60,477
5,780
282,580

$

$

$

$

$

$

2,667,984
2,555,065
1,599,105
(1,268)
6,820,886

604,484
368,630
193,822
1,166,936
154,664
144,948
(8,491)
875,815
129,152
746,663

22.7 %
14.4 %
12.1 %
17.1 %
10.9 %

85,447
135,821
57,207
4,803
283,278

$

$

$

$

$

$

2,446,665
1,977,050
1,620,339
(830)
6,043,224

399,209
246,545
283,628
929,382
115,521
135,969
(6,752)
684,644
182,516
502,128

16.3 %
12.5 %
17.5 %
15.4 %
8.3 %

78,173
101,266
65,018
5,215
249,672

$

Engineered Systems
Fluids
Refrigeration & Food Equipment
Corporate

32,374
68,147
23,651
15,406
139,578
Consolidated total
(1) Segment earnings includes non-operating income and expense directly attributable to the segments. Non-operating income and expense
includes Gain on sale of businesses and other expense (income), net.
(2) Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and
functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services costs and various
administrative expenses relating to the corporate headquarters.

47,044
86,566
32,482
4,902
170,994

37,495
90,625
32,541
9,407
170,068

$

$

$

$

$

101

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

Selected financial information by market segment (continued):

Total assets at December 31:
Engineered Systems
Fluids
Refrigeration & Food Equipment
Corporate (3)

Total assets - continuing operations
Assets from discontinued operations
Consolidated total
(3)The significant portion of corporate assets are principally cash and cash equivalents.

2018
3,070,019
3,458,153
1,252,870
584,729
8,365,771
—
8,365,771

$

2017
3,097,066
3,410,634
1,284,852
1,000,254
8,792,806
1,865,553
$ 10,658,359

$

$

United States
Europe
Asia
Other America
Other
Consolidated total

Revenue
Years Ended December 31,
2017
$ 3,654,102
1,476,686
754,845
621,831
313,422
$ 6,820,886

2016
$ 3,351,466
1,241,297
658,425
516,544
275,492
$ 6,043,224

2018
$ 3,619,717
1,572,788
867,268
631,164
301,181
$ 6,992,118

Long-Lived Assets
At December 31,

2018
480,780
239,070
24,872
59,550
2,225
806,497

$

$

2017
459,931
238,986
29,074
57,016
2,933
787,940

$

$

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 businesses are based primarily in the United States, Europe and Asia. The Company’s businesses serve thousands
of customers, none of which accounted for more than 10% of consolidated revenue.

19. Earnings per Share

The following table sets forth a reconciliation of the information used in computing basic and diluted earnings per share:

Earnings from continuing operations
(Loss) earnings from discontinued operations, net
Net earnings
Basic earnings per common share:
Earnings from continuing operations

(Loss) earnings from discontinued operations, net
Net earnings

Weighted average basic shares outstanding
Diluted earnings per common share:
Earnings from continuing operations

(Loss) earnings from discontinued operations, net
Net earnings

Years Ended December 31,
2017
746,663
65,002
811,665

2018
591,145
(20,878)
570,267

$

$

$

$

2016
502,128
6,764
508,892

$
3.94
(0.14) $
$
3.80

4.80
0.42
5.21

$
$
$

3.23
0.04
3.28

$

$

$
$
$

149,874,000

155,685,000

155,231,000

$
$
$

3.89
$
(0.14) $
$
3.75

4.73
0.41
5.15

$
$
$

3.21
0.04
3.25

Weighted average diluted shares outstanding

152,133,000

157,744,000

156,636,000

102

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

The following table is a reconciliation of the share amounts used in computing earnings per share:

Weighted average shares outstanding - Basic
Dilutive effect of assumed exercise of SARs and vesting of performance
shares and RSUs
Weighted average shares outstanding - Diluted

Years Ended December 31,
2017
155,685,000

2018
149,874,000

2016
155,231,000

2,259,000
152,133,000

2,059,000
157,744,000

1,405,000
156,636,000

Diluted earnings per share amounts are computed using the weighted average number of common shares outstanding and, if
dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental
common shares issuable upon the exercise of SARs and vesting of performance shares and RSUs, as determined using the
treasury stock method. For the years ended December 31, 2018, 2017 and 2016, the weighted average number of anti-dilutive
potential common shares excluded from the calculation above totaled 1,382, 79,756 and 6,799, respectively.

20. Stockholders' Equity

The Company has the authority to issue up to 100,000 shares of $100 par preferred stock and up to 500,000,000 shares of
$1.00 par common stock. There were no issuances of preferred stock. As of December 31, 2018 and 2017, the Company
issued 257,822,352 and 256,992,261 shares of common stock and had 112,905,810 and 102,168,868 treasury shares, held at
cost, respectively.

Share Repurchases

During the years ended December 31, 2018 and 2017, under the January 2015 authorization which expired on January 9,
2018, the Company repurchased 440,608 and 1,059,682 shares of common stock at a total cost of $44,977 and $105,023, or
$102.08 and $99.11 per share, respectively. There were 5,271,168 shares available for repurchase under this authorization
upon expiration.

In February 2018, the Company's Board of Directors approved a new standing share repurchase authorization, whereby the
Company may repurchase up to 20,000,000 shares of its common stock through December 31, 2020. This share repurchase
authorization replaced the January 2015 share repurchase authorization.

On May 22, 2018, the Company entered into a $700,000 accelerated share repurchase agreement (the “ASR Agreement”)
with Goldman Sachs & Co. LLC (“Goldman Sachs”) to repurchase its shares in an accelerated share repurchase program (the
“ASR Program”). The Company conducted the ASR Program under the February 2018 share repurchase authorization. The
Company funded the ASR Program with funds received from Apergy in connection with the consummation of the
Apergy spin-off.

Under the terms of the ASR Agreement, the Company paid Goldman Sachs $700,000 on May 24, 2018 and on that date
received initial deliveries of 7,078,751 shares, representing a substantial majority of the shares expected to be retired over the
course of the ASR Agreement. In December 2018 Goldman Sachs delivered a total of 1,463,815 shares which completed the
ASR Program. During 2018, the Company received a total of 8,542,566 shares as part of the ASR Agreement. The total
number of shares ultimately repurchased under the ASR Agreement was based on the volume-weighted average share price of
Dover’s common stock during the calculation period of the ASR Program, less a discount, which was $81.94 over the term of
the ASR Program.

Under the February 2018 share repurchase authorization, exclusive of the ASR Agreement, the Company repurchased
1,753,768 shares of common stock during the year ended December 31, 2018 at a total cost of $150,000, or $85.53 per share.
As of December 31, 2018, 9,703,666 shares remain authorized for repurchase under the February 2018 share repurchase
authorization.

Together with other repurchases in December 2017 and over the course of 2018, the Company has completed the $1 billion of
share repurchases it announced in November 2017.

103

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

21. Quarterly Data (Unaudited)

Quarter
2018
First
Second
Third
Fourth

2017
First
Second
Third
Fourth

Continuing Operations

Net Earnings

Revenue

Gross Profit

Earnings

Per
Share -
Basic

Per
Share -
Diluted

Net
Earnings

Per
Share -
Basic

Per
Share -
Diluted

$

$

$

$

1,637,671
1,798,094
1,747,403
1,808,950
6,992,118

1,583,210
1,737,371
1,747,775
1,752,530
6,820,886

$

$

$

$

602,828
665,236
646,520
644,972
2,559,556

575,853
654,108
649,193
649,893
2,529,047

$

$

$

$

109,409
166,456
157,305
157,975
591,145

155,088
142,475
159,455
289,645
746,663

$

$

$

$

0.71
1.10
1.07
1.08
3.94

1.00
0.92
1.02
1.86
4.80

$ 0.70
1.08
1.05
1.07
$ 3.89

$ 131,434 $
139,959
157,305
141,569
$ 570,267 $

$ 0.99
0.90
1.01
1.83
$ 4.73

$ 172,247 $
164,058
178,912
296,448
$ 811,665 $

0.85
0.92
1.07
0.97
3.80

1.11
1.05
1.15
1.90
5.21

$

$

$

$

0.84
0.91
1.05
0.96
3.75

1.09
1.04
1.14
1.88
5.15

22. Subsequent Events

the Company acquired Belanger, Inc. ("Belanger"), a leading full-line car wash equipment
On January 25, 2019,
manufacturer, for approximately $180 million. Belanger strengthens Dover's position in the Fueling & Transport end market
within our Fluids segment.

104

SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS
Years Ended December 31, 2018, 2017 and 2016
(In thousands)

Allowance for Doubtful Accounts

Year Ended December 31, 2018

Year Ended December 31, 2017

$

$

Balance at
Beginning
of Year

Charged to
Cost and
Expense (A)

Accounts
Written Off

Other

Balance at
End of Year

34,479

3,875

(9,326)

(559) $

28,469

16,381

10,341

(3,706)

11,463

$

34,479

Year Ended December 31, 2016
(A) Net of recoveries on previously reserved or written-off balances.

13,619

$

7,700

(4,570)

(368) $

16,381

Deferred Tax Valuation Allowance

Year Ended December 31, 2018

Year Ended December 31, 2017

Year Ended December 31, 2016

LIFO Reserve

Year Ended December 31, 2018

Year Ended December 31, 2017

Year Ended December 31, 2016

$

$

$

$

$

$

Balance at
Beginning
of Year

Additions

Reductions

Other

Balance at
End of Year

238,236

26,162

—

— $

264,398

289,237

—

(51,001)

— $

238,236

170,958

118,279

—

— $

289,237

Balance at
Beginning
of Year

Charged to
Cost and
Expense

Reductions

Other

Balance at
End of Year

17,571

20,245

20,179

3,474

1,708

686

(1,025)

(4,382)

— $

20,020

— $

17,571

(620)

— $

20,245

105

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s Chief
Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures as
defined in Rule 13a-15(e) under the Exchange Act were effective as of December 31, 2018 to ensure that information
required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed,
summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms and
(ii) accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief
Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

a

Changes in Internal Controls

During the fourth quarter of 2018, there were no changes in the Company’s internal control over financial reporting that have
materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Inherent Limitations Over Internal Controls

The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that:

i.

ii.

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the Company’s assets;

provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that the Company’s receipts and
expenditures are being made only in accordance with authorizations of the Company’s management and directors;
and

iii.

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the Company’s assets that could have a material effect on the financial statements.

Management’s report on the effectiveness of the Company’s internal control over financial reporting is included in Item 8 of
this Form 10-K. Management, including the Company’s Chief Executive Officer and Chief Financial Officer, does not expect
that the Company’s internal controls will prevent or detect all errors and all fraud. A control system, no matter how well
designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls
must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of internal
controls can provide absolute assurance that all control issues and instances of fraud, if any, hy
ave been detected. Also, any
evaluation of the effectiveness of controls in future periods is subject to the risk that those internal controls may become
inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may
deteriorate.

ITEM 9B. OTHER INFORMATION

Under the Iran Threat Reduction and Syrian Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, we
are required to disclose in our periodic reports if we or any of our affiliates knowingly engaged in certain activities,
transactions or dealings relating to Iran or with certain Iran-related entities or individuals designated pursuant to certain
Executive Orders. Disclosure is required even where the activities are authorized by and in compliance with applicable law.

106

In connection with the easing of certain sanctions by the U.S. against Iran in January 2016 and in compliance with the
economic sanctions regulations administered by U.S. Treasury’s Office of Foreign Assets Control (“OFAC”),
a wholly-owned
non-U.S. subsidiary in our Fluids segment sold non-U.S. origin spare parts related to the oil, gas and/or petrochemical sectors
to Iranian counterparties and non-U.S. origin custom pumps and filtering equipment and pelletizing systems to Iranian
counterparties and European engineering parties with end use in the petrochemical sector in Iran, which resulted in revenue
of approximately €9.2 million and net profits of approximately €4.6 million in the fourth quarter of 2018 prior to November
4, 2018.

ff

rr

On May 8, 2018, President Trump announced his decision to re-impose secondary sanctions against Iran. In response, on
June 27, 2018, OFAC revoked General License H, with a provision authorizing the wind down of transactions previously
authorized under General License H pursuant to 31 CFR §560.537. The sales described above were made by our non-U.S.
subsidiary pursuant to contracts entered into prior to May 8, 2018, and in compliance with the terms and conditions of
OFAC’s General License H and the applicable wind-down license. Our non-U.S. subsidiary completed all wind down
activities by November 4, 2018 in compliance with U.S. economic sanctions laws.

107

PART III

108

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information with respect to the corporate governance matters and Section 16 compliance required to be included
pursuant to this Item 10 will be included in the 2019 Proxy Statement that will be filed with the Securities and Exchange
in accordance with applicable SEC deadlines, and is
Commission pursuant
incorporated in this Item 10 by reference.

to Rule 14a-6 under the Exchange Act

As set forth below is a list of the members of our Board of Directors as of February 15, 2019.

Peter T. Francis2,4
Former President and Chief Executive Officer of J.M. Huber Company;
Managing Member, Mukilteo Investment Management Company

H. John Gilbertson, Jr.1,4
Retired Managing Director, Goldman Sachs Group Inc.

Kristiane C. Graham2,3
Private Investor

Michael F. Johnston, Chairman of the Board2,3
Retired Chief Executive Officer, Visteon Corporation

VV

Richard K. Lochridge2
Retired President, Lochridge & Company, Iyy nc.

Eric A. Spiegel1,4
Former President and CEO of Siemens USA

Richard J. Tobin
President & Chief Executive Officer, Dover Corporation

Stephen M. Todd1
Former Global Vice Chairman of Assurance Professional Practice of Ernst & Young Global Limited

YY

Stephen K. Wagner1,3
Former Senior Advisor, Center for Corporate Governance, Deloitte & Touche LLP

TT

Keith E. Wandell2,4
Retired President and Chief Executive Officer, Harley-Davidson, Inc.

Mary A. Winston2.4
President of WinsCo Enterprises Inc.;
Former Executive Vice President & Chief Financial Officer, Family Dollar Stores, Inc.

1 Members of Audit Committee
2 Members of Compensation Committee
3 Members of Governance & Nominating Committee
4 Members of Finance Committee

The information with respect to Section 16(a) reporting compliance required to be included in this Item 10 will be included in
our 2019 Proxy Statement and is incorporated in this Item 10 by reference.

The Company has adopted a code of ethics that applies to its chief executive officer and senior financial officers. A copy of
this code of ethics can be found on our website at www.dovercorporation.com. In the event of any amendment to, or waiver
from, the code of ethics, we will publicly disclose the amendment or waiver by posting the information on our website.

109

ITEM 11. EXECUTIVE COMPENSATION

The information with respect to executive compensation and the compensation committee required to be included pursuant to
this Item 11 will be included in our 2019 Proxy Statement and is incorporated in this Item 11 by reference.

110

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED SHAREHOLDER MATTERS

The information regarding security ownership of certain beneficial owners and management that is required to be included
pursuant to this Item 12 will be included in our 2019 Proxy Statement and is incorporated in this Item 12 by reference.

Equity Compensation Plans

The Equity Compensation Plan Table below presents information regarding our equity compensation plans at December 31,
2018:

(a)

(b)

Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options,
Warrants and
Rights (1)

Weighted-
Average
Exercise Price
of Outstanding
Options,
Warrants and
Rights

5,864,642
—
5,864,642

$

$

60.19
—
60.19

(c)
Number of
Securities
Remaining
Available for
Future Issuance
Under Equity
Compensation
Plans (Excluding
Securities Reflected
in Column (a)) (2)
7,102,229
—
7,102,229

Plan Category
Equity compensation plans approved by stockholders
Equity compensation plans not approved by stockholders
Total

1. Column (a) includes shares issuable pursuant to outstanding SARs, restricted stock units and performance share awards
under the Company's 2012 Equity and Cash Incentive Plan (the "2012 Plan") and the 2005 Equity and Cash Incentive
Plan. Performance shares are subject to satisfaction of the applicable performance criteria over a three-year performance
period. Restricted stock unit and performance share awards are not reflected in the weighted exercise price in column (b)
as these awards do not have an exercise price.

2. Column (c) consists of shares available for future issuance under the Company's 2012 Equity and Cash Incentive Plan
(the "2012 Plan"). Under the 2012 Plan, the Company could grant options, SARs, restricted stock or restricted stock
units, performance share awards, director shares, or deferred stock units. Under the 2012 Plan, the number of shares
available for issuance will be reduced (i) by one share for each share issued pursuant to options or SARs and (ii) by three
shares for each share of stock issued pursuant to restricted stock, restricted stock unit, performance share, director share,
or deferred stock unit awards.

As of December 31, 2018, equity securities have been authorized for issuance to employees and/or non-employee directors
under the 2012 Plan and its predecessor plan, the 2005 Plan. Although the 2005 Plan has expired and no further awards may
be granted under the Plan, there remain outstanding stock-settled appreciation rights and performance share awards under the
2005 Plan, which are reflected in Column (a) of the table.

111

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The information with respect to any director independence, related party transaction policies and any reportable transaction,
business relationship, or indebtedness between the Company and the beneficial owners of more than 5% of the Common
Stock, the directors or nominees for director of the Company, the executive officers of the Company, or the members of the
immediate families of such individuals that are required to be included pursuant to this Item 13 is included in the 2019 Proxy
Statement and is incorporated in this Item 13 by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information with respect to the Company’s relationship with its independent registered public accounting firm and fees
paid thereto required to be included pursuant to this Item 14 is included in the 2019 Proxy Statement and is incorporated in
this Item 14 by reference.

The information with respect to audit committee pre-approval policies and procedures required to be included pursuant to this
Item 14 is included in the 2019 Proxy Statement and is incorporated in this Item 14 by reference.

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

a) The following documents are filed as part of this report:

PART IV

(1) Financial Statements. The financial statements are set forth under “Item 8. Financial Statements and Supplementary

Data” of this Form 10-K.

(2) Schedules. The following financial statement schedule is set forth under “Item 8. Financial Statements and

Supplementary Data” of this Form 10-K. All other schedules have been omitted because they are not required, are not
applicable or the required information is included in the financial statements or the notes thereto.

•

Schedule II – Valuation and Qualifying Accounts

(3) Exhibits. The exhibits below are filed or incorporated by reference as part of this Form 10-K. The exhibits will be

filed with the SEC but will not be included in the printed version of the Annual Report to Shareholders.

EXHIBIT INDEX

(2.1) Separation and Distribution Agreement, dated May 9, 2018, by and between Dover Corporation and Apergy

Corporation, filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed May 11, 2018 (SEC File
No. 001-04018), is incorporated by reference.

(3)(i) Fourth Restated Certificate of Incorporation of the Company, filed as Exhibit 3(i)(a) to the Company’s Current

Report on Form 8-K filed May 6, 2014 (SEC File No. 001-04018), is incorporated by reference.

(3)(ii) Amended and Restated By-Laws of the Company, effective as of February 11, 2016, filed as Exhibit 3(ii) to the
Company’s Current Report on Form 8-K filed on February 11, 2016 (SEC File No. 001-04018), are incorporated
by reference.

(4.1) Indenture, dated as of June 8, 1998 between the Company and The First National Bank Chicago, as trustee, filed

as Exhibit 4.1 to the Company's Current Report on Form 8-K filed June 12, 1998 (SEC File No. 001-04018), is
incorporated by reference.

(4.2) Form of 6.65% Debentures due June 1, 2028 ($200,000,000 aggregate principal amount), filed as Exhibit 4.4 to
the Company's Current Report on Form 8-K filed June 12, 1998 (SEC File No. 001-04018), is incorporated by
reference.

(4.3) Indenture, dated as of February 8, 2001 between the Company and BankOne Trust Company, N.A., as trustee,

filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed February 13, 2001 (SEC File
No. 001-04018), is incorporated by reference.

112

(4.4) First Supplemental Indenture, dated as of October 13, 2005, among the Company, J.P. Morgan Trust Company,
National Association, as original trustee, and The Bank of New York, as trustee, filed as Exhibit 4.1 to the
Company's Current Report on Form 8-K filed October 13, 2005 (SEC File No. 001-04018), is incorporated by
reference.

(4.5) Form of 5.375% Debentures due October 15, 2035 ($300,000,000 aggregate principal amount), filed as

Exhibit 4.3 to the Company's Current Report on Form 8-K filed October 13, 2005 (SEC File No. 001-04018), is
incorporated by reference.

(4.6) Second Supplemental Indenture, dated as of March 14, 2008, between the Company and The Bank of New York,

as trustee, filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed March 14, 2008 (SEC File
No. 001-04018), is incorporated by reference.

(4.7) Form of Global Note representing the 5.45% Notes due March 15, 2018 ($350,000,000 aggregate principal
amount), filed as Exhibit 4.2 to the Company's Current Report on Form 8-K filed March 14, 2008 (SEC File
No. 001-04018), is incorporated by reference.

(4.8) Form of Global Note representing 6.60% Notes due March 15, 2038 ($250,000,000 aggregate principal amount),

filed as Exhibit 4.3 to the Company's Current Report on Form 8-K filed March 14, 2008 (SEC File
No. 001-04018), is incorporated by reference.

(4.9) Third Supplemental Indenture, dated as of February 22, 2011, between the Company and The Bank of New York

Mellon, as trustee, filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed February 22, 2011
(SEC File No. 001-04018), is incorporated by reference.

(4.10) Form of 4.300% Notes due March 1, 2021 ($450,000,000 aggregate principal amount), filed as Exhibit 4.2 to the

Company's Current Report on Form 8-K filed February 22, 2011 (SEC File No. 001-04018), is incorporated by
reference.

(4.11) Form of 5.375% Notes due March 1, 2041 ($350,000,000 aggregate principal amount), filed as Exhibit 4.3 to the

Company's Current Report on Form 8-K filed February 22, 2011 (SEC File No. 001-04018), is incorporated by
reference.

(4.12) Fourth Supplemental Indenture, dated as of December 2, 2013, between the Company and The Bank of New

York Mellon, as trustee and The Bank of New York Mellon, London Branch, as paying agent, filed as Exhibit 4.1
to the Company's Current Report on Form 8-K filed December 3, 2013 (SEC File No. 001-04018), is
incorporated by reference.

(4.13) Form of Global Note representing the 2.125% Notes due 2020 (€300,000,000 aggregate principal amount)

(included as Exhibit A to the Fourth Supplemental Indenture), filed as Exhibit 4.1 to the Company's Current
Report on Form 8-K filed December 3, 2013 (SEC File No. 001-04018), is incorporated by reference.
(4.14) Fifth Supplemental Indenture, dated as of November 3, 2015, between the Company and J.P. Morgan Trust

Company National Association, as trustee, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K
filed on November 3, 2015 (SEC File No. 001-04018), is incorporated by reference.

(4.15) Form of Global Note representing the 3.150% Notes due 2025 ($400,000,000 aggregate principal amount)

(included as Exhibit A to the Fifth Supplemental Indenture), filed as Exhibit 4.1 to the Company’s Current Report
on Form 8-K filed on November 3, 2015 (SEC File No. 001-04018), is incorporated by reference.
(4.16) Sixth Supplemental Indenture, dated as of November 9, 2016, between the Company and J.P. Morgan Trust

Company National Association, as trustee, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K
filed on November 9, 2016 (SEC File No. 001-04018), is incorporated by reference.

(4.17) Form of Global Note representing the 1.250% Notes due 2026 (€600,000,000 aggregate principal amount)
(included as Exhibit A to the Sixth Supplemental Indenture), filed as Exhibit 4.1 to the Company’s Current
Report on Form 8-K filed on November 9, 2016 (SEC File No. 001-04018), is incorporated by reference.
The Company agrees to furnish to the Securities and Exchange Commission upon request, a copy of any
instrument with respect to long-term debt under which the total amount of securities authorized does not exceed
10 percent of the total consolidated assets of the Company.

(10.1) Dover Corporation Senior Executive Change-in-Control Severance Plan, as amended and restated effective

November 1, 2018.* (1)

(10.2) Dover Corporation Executive Officer Annual Incentive Plan, as amended and restated as of January 1, 2009, filed

as Exhibit 10.2 to the Company's Current Report on Form 8-K filed May 13, 2009 (SEC File No. 001-04018), is
incorporated by reference.*

(10.3) Dover Corporation Deferred Compensation Plan, as amended and restated as of January 1, 2009, filed as Exhibit
10.6 to the Company's Annual Report on Form 10-K for the year ended December 31, 2008 (SEC File No.
001-04018), is incorporated by reference.*

(10.4) First Amendment and Second Amendment to the Dover Corporation Deferred Compensation Plan, as amended

and restated as of January 1, 2009, filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the
period ended September 30, 2013 (SEC File No. 001-04018), is incorporated by reference.*

113

(10.5) Third Amendment, adopted on July 31, 2014 and effective as of January 1, 2014, to the Dover Corporation

Deferred Compensation Plan, filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the
period ended September 30, 2014 (SEC File No. 001-04018), is incorporated by reference.*

(10.6) Fourth Amendment, effective as of January 1, 2015, to the Dover Corporation Deferred Compensation Plan, filed
as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2015 (SEC File
No. 001-04018), is incorporated by reference.*

(10.7) Fifth Amendment, dated as of October 28, 2015, to the Dover Corporation Deferred Compensation Plan, filed as
Exhibit 10.8 to the Company’s Annual Report on Form 10-K for the period ended December 31, 2015 (SEC File
No. 001-04018), is incorporated by reference.*

(10.8) Sixth Amendment, dated as of November 28, 2016, to the Dover Corporation Deferred Compensation Plan, filed

as Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the period ended December 31, 2016 (SEC
File No. 001-04018), is incorporated by reference.*

(10.9) Seventh Amendment, dated as of May 8, 2018, to the Dover Corporation Deferred Compensation Plan, filed as

Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2018 (SEC File No.
001-04018), is incorporated by reference.*

(10.10) Dover Corporation 2005 Equity and Cash Incentive Plan, amended and restated as of January 1, 2009, filed as
Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 13, 2009 (SEC File No. 001-04018), is
incorporated by reference.*

(10.11) Amendment No. 1 to the Dover Corporation 2005 Equity and Cash Incentive Plan (Amended and Restated as of

January 1, 2009), filed as Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the period ended
December 31, 2014 (SEC File No. 001-04018), is incorporated by reference.*

(10.12) Amendment No. 1 to the Dover Corporation 2012 Equity and Cash Incentive Plan, filed as Exhibit 10.25 to the
Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (SEC File No. 001-04018), is
incorporated by reference.*

(10.13) Form of award grant letter for SSAR grants made under the Dover Corporation 2005 Equity and Cash Incentive

Plan, filed as Exhibit 10.8 to the Company's Annual Report on Form 10-K for the period ended December 31,
2011 (SEC File No. 001-04018), is incorporated by reference.*

(10.14) Dover Corporation Pension Replacement Plan (formerly the Supplemental Executive Retirement Plan), as

amended and restated as of January 1, 2010, filed as Exhibit 10.11 to the Company's Annual Report on Form 10-
K for the year ended December 31, 2009 (SEC File No. 001-04018), is incorporated by reference.*

(10.15) First Amendment to the Dover Corporation Pension Replacement Plan, as amended and restated as of January 1,
2010, filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the period ended September 30,
2013 (SEC File No. 001-04018), is incorporated by reference.*

(10.16) Second Amendment, dated as of November 28, 2016, to the Dover Corporation Pension Replacement Plan, as

amended and restated as of January 1, 2010, filed as Exhibit 10.19 to the Company’s Annual Report on Form 10-
K for the period ended December 31, 2016 (SEC File No. 001-04018), is incorporated by reference.*

(10.17) Third Amendment, dated as of May 8, 2018, to the Dover Corporation Pension Replacement Plan, as amended

and restated as of January 1, 2010, filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the
period ended June 30, 2018 (SEC File No. 001-04018), is incorporated by reference.*

(10.18) Dover Corporation Executive Severance Plan, as amended and restated effective November 1, 2018.* (1)

(10.19) Amendment No. 1 to the Executive Employee Supplemental Retirement Agreement with Robert A. Livingston,

Jr., filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed March 3, 2010 (SEC File No.
001-04018), is incorporated by reference.*

(10.20) Dover Corporation 2012 Equity and Cash Incentive Plan, effective as of May 3, 2012, filed as Exhibit 10.1 to the

Company's Quarterly Report on Form 10-Q for the period ended June 30, 2012 (SEC File No. 001-04018), is
incorporated by reference.*

(10.21) Amendment No. 2, adopted and effective as of August 6, 2014, to the Dover Corporation 2012 Equity and Cash

Incentive Plan, filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended
September 30, 2014 (SEC File No. 001-04018), is incorporated by reference.*

(10.22) Form of award grant letter for SSAR grants made under the Dover Corporation 2012 Equity and Cash Incentive

Plan, filed as Exhibit 10.20 to the Company’s Annual Report on Form 10-K for the year ended December 31,
2012 (SEC File No. 001-04018), is incorporated by reference.*

(10.23) Form of award grant letter for SSAR grants made under the Dover Corporation 2012 Equity and Cash Incentive

Plan, filed as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31,
2014 (SEC File No. 001-04018), is incorporated by reference.*

114

(10.24) Form of award grant letter for SSAR grants made under the Dover Corporation 2012 Equity and Cash Incentive
Plan, filed as Exhibit 10.25 to the Company's Annual Report on Form 10-K for the period ended December 31,
2014 (SEC File No. 001-04018), is incorporated by reference.*

(10.25) Form of award grant letter for SSAR grants made under the Dover Corporation 2012 Equity and Cash Incentive

Plan, filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended March 31,
2016 (SEC File No. 001-04018), is incorporated by reference.*

(10.26) Form of award grant letter for SSAR grants made under the Dover Corporation 2012 Equity and Cash Incentive

Plan, filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended March 31,
2017 (SEC File No. 001-04018), is incorporated by reference.*

(10.27) Form of award grant letter for SSAR grants made under the Dover Corporation 2012 Equity and Cash Incentive

Plan, filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended March 31,
2018 (SEC File No. 001-04018), is incorporated by reference.*

(10.28) Form of award grant letter for cash performance awards made under the Dover Corporation 2012 Equity and

Cash Incentive Plan, filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the period ended
March 31, 2016 (SEC File No. 001-04018), is incorporated by reference.*

(10.29) Form of award grant letter for cash performance awards made under the Dover Corporation 2012 Equity and

Cash Incentive Plan, filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the period ended
March 31, 2017 (SEC File No. 001-04018), is incorporated by reference.*

(10.30) Form of award grant letter for cash performance awards made under the Dover Corporation 2012 Equity and

Cash Incentive Plan, filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the period ended
March 31, 2018 (SEC File No. 001-04018), is incorporated by reference.*

(10.31) Form of award grant letter for performance share awards made under the Dover Corporation 2012 Equity and

Cash Incentive Plan, filed as Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the period ended
March 31, 2016 (SEC File No. 001-04018), is incorporated by reference.*

(10.32) Form of award grant letter for performance share awards made under the Dover Corporation 2012 Equity and

Cash Incentive Plan, filed as Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the period ended
March 31, 2017 (SEC File No. 001-04018), is incorporated by reference.*

(10.33) Form of award grant letter for performance share awards made under the Dover Corporation 2012 Equity and

Cash Incentive Plan, filed as Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the period ended
March 31, 2018 (SEC File No. 001-04018), is incorporated by reference.*

(10.34) Form of Restricted Stock Unit Award Letter under the Dover Corporation 2012 Equity and Cash Incentive Plan,

filed as Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2016
(SEC File No. 001-04018), is incorporated by reference.*

(10.35) Form of Restricted Stock Unit Award Letter under the Dover Corporation 2012 Equity and Cash Incentive Plan,

filed as Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2017
(SEC File No. 001-04018), is incorporated by reference.*

(10.36) Form of Restricted Stock Unit Award Letter under the Dover Corporation 2012 Equity and Cash Incentive Plan,

filed as Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2018
(SEC File No. 001-04018), is incorporated by reference.*

(10.37) Employment Agreement of Richard J. Tobin dated March 16, 2018, filed as Exhibit 10.1 to the Company's

Current Report on Form 8-K filed March 20, 2018 (SEC File No. 001-04018), is incorporated by reference.*

(10.38) Five-Year Credit Agreement, dated as of November 10, 2015, among the Company, the Borrowing Subsidiaries

party thereto from time to time, the Lenders party thereto, and JPMorgan Chase Bank, N.A, as Administrative
Agent, filed as Exhibit 10.34 to the Company’s Annual Report on Form 10-K for the period ended December 31,
2015 (SEC File No. 001-04018), is incorporated by reference.

(10.39) Master Confirmation - Accelerated Stock Buyback, dated as of May 22, 2018, between Dover Corporation and
Goldman Sachs & Co. LLC, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 22,
2018 (SEC File No. 001-04018), is incorporated by reference.

(10.40) Employee Matters Agreement, dated May 9, 2018, by and between Dover Corporation and Apergy Corporation,
filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 11, 2018 (SEC File No.
001-04018), is incorporated by reference.

(10.41) Tax Matters Agreement, dated May 9, 2018, by and between Dover Corporation and Apergy Corporation, filed as

Exhibit 10.2 to the Company’s Current Report on Form 8-K filed May 11, 2018 (SEC File No. 001-04018), is
incorporated by reference.

(10.42) Transition Services Agreement, dated May 9, 2018, by and between Dover Corporation and Apergy Corporation,
filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed May 11, 2018 (SEC File No.
001-04018), is incorporated by reference.

115

(21) Subsidiaries of Dover. (1)
(23) Consent of Independent Registered Public Accounting Firm. (1)
(24) Power of Attorney (included in signature page). (1)

(31.1) Certification pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as amended, signed and dated

by Brad M. Cerepak. (1)

(31.2) Certification pursuant to Rule 13a-14 of the Securities and Exchange Act of 1934, as amended, signed and dated

by Richard J. Tobin. (1)

(32) Certification pursuant to 18 U.S.C. Section 1350, signed and dated by Richard J. Tobin and Brad M. Cerepak. (1)

(101) The following materials from Dover Corporation's Annual Report on Form 10-K for the year ended December
31, 2018 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of
Earnings, (ii) Consolidated Statements of Comprehensive Earnings (iii) Consolidated Balance Sheets, (iv)
Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to
the Consolidated Financial Statements. (1)

* Executive compensation plan or arrangement.

(1) Filed herewith.

ITEM 16. SUMMARY

None.

116

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has
duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

Signatures

DOVER CORPORATION

/s/ Richard J. Tobin
Richard J. Tobin
President and Chief Executive Officer

Date: February 15, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Annual Report on Form 10-K has been
signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated. Each of the
undersigned, being a director or officer of Dover Corporation (the “Company”), hereby constitutes and appoints Richard J.
Tobin, Brad M. Cerepak and Ivonne M. Cabrera and each of them (with full power to each of them to act alone), his or her
true and lawful attorney-in-fact and agent for him or her and in his or her name, place and stead in any and all capacities, to
sign the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 under the Securities Exchange
Act of 1934, as amended, and any and all amendments thereto, and to file the same with all exhibits thereto and other
documents in connection therewith with the Securities and Exchange Commission and any other appropriate authority,
granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every
act and thing required and necessary to be done in and about the premises in order to effectuate the same as fully to all intents
and purposes as he or she might or could do if personally present, hereby ratifying and confirming all that such attorneys-in-
fact and agents, or any of them, may lawfully do or cause to be done by virtue hereof.

Signature

Title

Date

/s/ Michael F. Johnston
Michael F. Johnston

/s/ Richard J. Tobin
Richard J. Tobin

/s/ Brad M. Cerepak
Brad M. Cerepak

/s/ Carrie Anderson
Carrie Anderson

/s/ Peter T. Francis
Peter T. Francis

Chairman, Board of Directors

February 15, 2019

Chief Executive Officer,
President and Director
(Principal Executive Officer)

Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)

February 15, 2019

February 15, 2019

Vice President, Controller
(Principal Accounting Officer)

February 15, 2019

Director

February 15, 2019

117

Signature

/s/ Kristiane C. Graham
Kristiane C. Graham

/s/ H. John Gilbertson, Jr.
H. John Gilbertson, Jr.

/s/ Richard K. Lochridge
Richard K. Lochridge

/s/ Eric A. Spiegel
Eric A. Spiegel

/s/ Stephen M. Todd
Stephen M. Todd

/s/ Stephen K. Wagner
Stephen K. Wagner

/s/ Keith E. Wandell
Keith E. Wandell

/s/ Mary A. Winston
Mary A. Winston

Date

February 15, 2019

February 15, 2019

February 15, 2019

February 15, 2019

February 15, 2019

February 15, 2019

February 15, 2019

February 15, 2019

Title

Director

Director

Director

Director

Director

Director

Director

Director

118

[THIS PAGE INTENTIONALLY LEFT BLANK]

[THIS PAGE INTENTIONALLY LEFT BLANK]

Board of Directors

(cid:55)(cid:76)(cid:91)(cid:76)(cid:89)(cid:3)(cid:59)(cid:21)(cid:3)(cid:45)(cid:89)(cid:72)(cid:85)(cid:74)(cid:80)(cid:90)(cid:3)(cid:25)(cid:19)(cid:3)(cid:27)
(cid:45)(cid:86)(cid:89)(cid:84)(cid:76)(cid:89)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)
(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)(cid:19)(cid:3)
(cid:49)(cid:21)(cid:52)(cid:21)(cid:3)(cid:47)(cid:92)(cid:73)(cid:76)(cid:89)(cid:3)(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:34)(cid:3)
(cid:52)(cid:72)(cid:85)(cid:72)(cid:78)(cid:80)(cid:85)(cid:78)(cid:3)(cid:52)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:19)(cid:3)
(cid:52)(cid:92)(cid:82)(cid:80)(cid:83)(cid:91)(cid:76)(cid:86)(cid:3)(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)
(cid:52)(cid:72)(cid:85)(cid:72)(cid:78)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)

(cid:47)(cid:21)(cid:3)(cid:49)(cid:86)(cid:79)(cid:85)(cid:3)(cid:46)(cid:80)(cid:83)(cid:73)(cid:76)(cid:89)(cid:91)(cid:90)(cid:86)(cid:85)(cid:3)(cid:49)(cid:89)(cid:21) (cid:24)(cid:19)(cid:3)(cid:27)  
(cid:57)(cid:76)(cid:91)(cid:80)(cid:89)(cid:76)(cid:75)(cid:3)(cid:52)(cid:72)(cid:85)(cid:72)(cid:78)(cid:80)(cid:85)(cid:78)(cid:3)(cid:43)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:86)(cid:89)(cid:19)(cid:3)(cid:3)(cid:89)(cid:89)
(cid:46)(cid:86)(cid:83)(cid:75)(cid:84)(cid:72)(cid:85)(cid:3)(cid:58)(cid:72)(cid:74)(cid:79)(cid:90)(cid:3)(cid:46)(cid:89)(cid:86)(cid:92)(cid:87)(cid:3)(cid:48)(cid:85)(cid:74)(cid:21) 

(cid:50)(cid:89)(cid:80)(cid:90)(cid:91)(cid:80)(cid:72)(cid:85)(cid:76)(cid:3)(cid:42)(cid:21)(cid:3)(cid:46)(cid:89)(cid:72)(cid:79)(cid:72)(cid:84) (cid:25)(cid:19)(cid:3)(cid:26)
(cid:55)(cid:89)(cid:80)(cid:93)(cid:72)(cid:91)(cid:76)(cid:3)(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)

(cid:52)(cid:80)(cid:74)(cid:79)(cid:72)(cid:76)(cid:83)(cid:3)(cid:45)(cid:21)(cid:3)(cid:49)(cid:86)(cid:79)(cid:85)(cid:90)(cid:91)(cid:86)(cid:85)(cid:3)(cid:25)(cid:19)(cid:3)(cid:26)
(cid:42)(cid:79)(cid:72)(cid:80)(cid:89)(cid:84)(cid:72)(cid:85)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:41)(cid:86)(cid:72)(cid:89)(cid:75)(cid:19)(cid:3)
(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:34)(cid:3)
(cid:57)(cid:76)(cid:91)(cid:80)(cid:89)(cid:76)(cid:75)(cid:3)(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)(cid:19)
Visteon Corporation

(cid:3)

(cid:57)(cid:80)(cid:74)(cid:79)(cid:72)(cid:89)(cid:75)(cid:3)(cid:50)(cid:21)(cid:3)(cid:51)(cid:86)(cid:74)(cid:79)(cid:89)(cid:80)(cid:75)(cid:78)(cid:76) 2
(cid:57)(cid:76)(cid:91)(cid:80)(cid:89)(cid:76)(cid:75)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:19)
(cid:51)(cid:86)(cid:74)(cid:79)(cid:89)(cid:80)(cid:75)(cid:78)(cid:76)(cid:3)(cid:13)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:72)(cid:85)(cid:96)(cid:19)(cid:3)(cid:48)(cid:85)(cid:74)(cid:21)

(cid:44)(cid:89)(cid:80)(cid:74)(cid:3)(cid:40)(cid:21)(cid:3)(cid:58)(cid:87)(cid:80)(cid:76)(cid:78)(cid:76)(cid:83) (cid:24)(cid:19)(cid:3)(cid:27)
(cid:45)(cid:86)(cid:89)(cid:84)(cid:76)(cid:89)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)
(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)(cid:19)
(cid:58)(cid:80)(cid:76)(cid:84)(cid:76)(cid:85)(cid:90)(cid:3)(cid:60)(cid:58)(cid:40)

(cid:57)(cid:80)(cid:74)(cid:79)(cid:72)(cid:89)(cid:75)(cid:3)(cid:49)(cid:21)(cid:3)(cid:59)(cid:86)(cid:73)(cid:80)(cid:85)(cid:3)(cid:3) 
(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)
(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)(cid:19)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85) 

(cid:58)(cid:91)(cid:76)(cid:87)(cid:79)(cid:76)(cid:85)(cid:3)(cid:52)(cid:21)(cid:3)(cid:59)(cid:86)(cid:75)(cid:75) 1 
(cid:45)(cid:86)(cid:89)(cid:84)(cid:76)(cid:89)(cid:3)(cid:46)(cid:83)(cid:86)(cid:73)(cid:72)(cid:83)(cid:3)(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:42)(cid:79)(cid:72)(cid:80)(cid:89)(cid:84)(cid:72)(cid:85)(cid:19)
(cid:40)(cid:90)(cid:90)(cid:92)(cid:89)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:86)(cid:77)(cid:76)(cid:90)(cid:90)(cid:80)(cid:86)(cid:85)(cid:72)(cid:83)(cid:3)(cid:55)(cid:89)(cid:72)(cid:74)(cid:91)(cid:80)(cid:74)(cid:76)(cid:19)(cid:3)
(cid:44)(cid:89)(cid:85)(cid:90)(cid:91)(cid:3)(cid:13)(cid:3)(cid:64)(cid:86)(cid:92)(cid:85)(cid:78)(cid:3)(cid:46)(cid:83)(cid:86)(cid:73)(cid:72)(cid:83)(cid:3)(cid:51)(cid:80)(cid:84)(cid:80)(cid:91)(cid:76)(cid:75)

(cid:58)(cid:91)(cid:76)(cid:87)(cid:79)(cid:76)(cid:85)(cid:3)(cid:50)(cid:21)(cid:3)(cid:62)(cid:72)(cid:78)(cid:85)(cid:76)(cid:89)(cid:3)(cid:24)(cid:19)(cid:3)(cid:26)(cid:3)
(cid:45)(cid:86)(cid:89)(cid:84)(cid:76)(cid:89)(cid:3)(cid:58)(cid:76)(cid:85)(cid:80)(cid:86)(cid:89)(cid:3)(cid:40)(cid:75)(cid:93)(cid:80)(cid:90)(cid:86)(cid:89)(cid:19)(cid:3)(cid:42)(cid:76)(cid:85)(cid:91)(cid:76)(cid:89)(cid:3)
(cid:77)(cid:86)(cid:89)(cid:3)(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:76)(cid:3)(cid:46)(cid:86)(cid:93)(cid:76)(cid:89)(cid:85)(cid:72)(cid:85)(cid:74)(cid:76)(cid:19)
(cid:43)(cid:76)(cid:83)(cid:86)(cid:80)(cid:91)(cid:91)(cid:76)(cid:3)(cid:13)(cid:3)(cid:59)(cid:86)(cid:92)(cid:74)(cid:79)(cid:76)(cid:3)(cid:51)(cid:51)(cid:55)

(cid:50)(cid:76)(cid:80)(cid:91)(cid:79)(cid:3)(cid:44)(cid:21)(cid:3)(cid:62)(cid:72)(cid:85)(cid:75)(cid:76)(cid:83)(cid:83)(cid:3)(cid:25)(cid:19)(cid:3)(cid:27)
(cid:45)(cid:86)(cid:89)(cid:84)(cid:76)(cid:89)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)(cid:3)
(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)(cid:19)
(cid:47)(cid:72)(cid:89)(cid:83)(cid:76)(cid:96)(cid:20)(cid:43)(cid:72)(cid:93)(cid:80)(cid:75)(cid:90)(cid:86)(cid:85)(cid:19)(cid:3)(cid:48)(cid:85)(cid:74)(cid:21)

(cid:52)(cid:72)(cid:89)(cid:96)(cid:3)(cid:40)(cid:21)(cid:3)(cid:62)(cid:80)(cid:85)(cid:90)(cid:91)(cid:86)(cid:85) (cid:25)(cid:19)(cid:3)(cid:27)
(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)(cid:62)(cid:80)(cid:85)(cid:90)(cid:42)(cid:86)(cid:3)
(cid:44)(cid:85)(cid:91)(cid:76)(cid:89)(cid:87)(cid:89)(cid:80)(cid:90)(cid:76)(cid:90)(cid:3)(cid:48)(cid:85)(cid:74)(cid:21)(cid:34)(cid:3)
(cid:45)(cid:86)(cid:89)(cid:84)(cid:76)(cid:89)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)
(cid:61)(cid:80)(cid:74)(cid:76) (cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)
(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:45)(cid:80)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)(cid:19)
(cid:45)(cid:72)(cid:84)(cid:80)(cid:83)(cid:96)(cid:3)(cid:43)(cid:86)(cid:83)(cid:83)(cid:72)(cid:89)(cid:3)(cid:58)(cid:91)(cid:86)(cid:89)(cid:76)(cid:90)(cid:19)(cid:3)(cid:48)(cid:85)(cid:74)(cid:21)

1 (cid:52)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:40)(cid:92)(cid:75)(cid:80)(cid:91)(cid:3)(cid:42)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:91)(cid:76)(cid:76)
2 (cid:52)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:42)(cid:86)(cid:84)(cid:87)(cid:76)(cid:85)(cid:90)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:42)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:91)(cid:76)(cid:76)
(cid:26) (cid:52)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:46)(cid:86)(cid:93)(cid:76)(cid:89)(cid:85)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:13)(cid:3)(cid:53)(cid:86)(cid:84)(cid:80)(cid:85)(cid:72)(cid:91)(cid:80)(cid:85)(cid:78)(cid:3)
(cid:42)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:91)(cid:76)(cid:76)
(cid:27) (cid:52)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:90)(cid:3)(cid:86)(cid:77)(cid:3)(cid:45)(cid:80)(cid:85)(cid:72)(cid:85)(cid:74)(cid:76)(cid:3)(cid:42)(cid:86)(cid:84)(cid:84)(cid:80)(cid:91)(cid:91)(cid:76)(cid:76)

(cid:49)(cid:72)(cid:84)(cid:76)(cid:90)(cid:3)(cid:52)(cid:21)(cid:3)(cid:52)(cid:86)(cid:89)(cid:72)(cid:85)
(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)(cid:59)(cid:89)(cid:76)(cid:72)(cid:90)(cid:92)(cid:89)(cid:76)(cid:89)

(cid:62)(cid:80)(cid:83)(cid:83)(cid:80)(cid:72)(cid:84)(cid:3)(cid:62)(cid:21)(cid:3)(cid:58)(cid:87)(cid:92)(cid:89)(cid:78)(cid:76)(cid:86)(cid:85)
(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)
(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)(cid:19)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:45)(cid:83)(cid:92)(cid:80)(cid:75)(cid:90)

Management Team

(cid:57)(cid:80)(cid:74)(cid:79)(cid:72)(cid:89)(cid:75)(cid:3)(cid:49)(cid:21)(cid:3)(cid:59)(cid:86)(cid:73)(cid:80)(cid:85)
(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)
(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)

(cid:48)(cid:93)(cid:86)(cid:85)(cid:85)(cid:76)(cid:3)(cid:52)(cid:21)(cid:3)(cid:42)(cid:72)(cid:73)(cid:89)(cid:76)(cid:89)(cid:72)
(cid:58)(cid:76)(cid:85)(cid:80)(cid:86)(cid:89)(cid:3)(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)
(cid:46)(cid:76)(cid:85)(cid:76)(cid:89)(cid:72)(cid:83)(cid:3)(cid:42)(cid:86)(cid:92)(cid:85)(cid:90)(cid:76)(cid:83)(cid:3)(cid:13)(cid:3)(cid:58)(cid:76)(cid:74)(cid:89)(cid:76)(cid:91)(cid:72)(cid:89)(cid:96)

(cid:46)(cid:80)(cid:89)(cid:80)(cid:90)(cid:79)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:81)(cid:72)
(cid:58)(cid:76)(cid:85)(cid:80)(cid:86)(cid:89)(cid:3)(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)
(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:43)(cid:80)(cid:78)(cid:80)(cid:91)(cid:72)(cid:83)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)

(cid:42)(cid:72)(cid:89)(cid:89)(cid:80)(cid:76)(cid:3)(cid:51)(cid:21)(cid:3)(cid:40)(cid:85)(cid:75)(cid:76)(cid:89)(cid:90)(cid:86)(cid:85)
(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)(cid:42)(cid:86)(cid:85)(cid:91)(cid:89)(cid:86)(cid:83)(cid:83)(cid:76)(cid:89)

(cid:41)(cid:89)(cid:72)(cid:75)(cid:3)(cid:52)(cid:21)(cid:3)(cid:42)(cid:76)(cid:89)(cid:76)(cid:87)(cid:72)(cid:82)
(cid:58)(cid:76)(cid:85)(cid:80)(cid:86)(cid:89)(cid:3)(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:13)(cid:3)
(cid:42)(cid:79)(cid:80)(cid:76)(cid:77)(cid:3)(cid:45)(cid:80)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:89)

(cid:49)(cid:72)(cid:96)(cid:3)(cid:51)(cid:21)(cid:3)(cid:50)(cid:83)(cid:86)(cid:86)(cid:90)(cid:91)(cid:76)(cid:89)(cid:73)(cid:86)(cid:76)(cid:89)
(cid:58)(cid:76)(cid:85)(cid:80)(cid:86)(cid:89)(cid:3)(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)
(cid:47)(cid:92)(cid:84)(cid:72)(cid:85)(cid:3)(cid:57)(cid:76)(cid:90)(cid:86)(cid:92)(cid:89)(cid:74)(cid:76)(cid:90)

(cid:40)(cid:85)(cid:91)(cid:79)(cid:86)(cid:85)(cid:96)(cid:3)(cid:50)(cid:21)(cid:3)(cid:50)(cid:86)(cid:90)(cid:80)(cid:85)(cid:90)(cid:82)(cid:80)
(cid:61)(cid:80)(cid:74)(cid:76)(cid:3)(cid:55)(cid:89)(cid:76)(cid:90)(cid:80)(cid:75)(cid:76)(cid:85)(cid:91)(cid:19)(cid:3)(cid:59)(cid:72)(cid:95)

Shareholder Information

(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)(cid:3)(cid:48)(cid:85)(cid:88)(cid:92)(cid:80)(cid:89)(cid:80)(cid:76)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)
(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:76)(cid:3)(cid:53)(cid:76)(cid:94)(cid:90)(cid:33)
(cid:45)(cid:86)(cid:89)(cid:3)(cid:88)(cid:92)(cid:72)(cid:89)(cid:91)(cid:76)(cid:89)(cid:83)(cid:96)(cid:3)(cid:76)(cid:72)(cid:89)(cid:85)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:89)(cid:76)(cid:83)(cid:76)(cid:72)(cid:90)(cid:76)(cid:90)(cid:19)(cid:3)
(cid:80)(cid:85)(cid:77)(cid:86)(cid:89)(cid:84)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:86)(cid:85)(cid:3)(cid:74)(cid:86)(cid:85)(cid:77)(cid:76)(cid:89)(cid:76)(cid:85)(cid:74)(cid:76)(cid:3)
(cid:74)(cid:72)(cid:83)(cid:83)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:94)(cid:76)(cid:73)(cid:74)(cid:72)(cid:90)(cid:91)(cid:90)(cid:19)(cid:3)(cid:87)(cid:89)(cid:76)(cid:90)(cid:90)(cid:3)
(cid:89)(cid:76)(cid:83)(cid:76)(cid:72)(cid:90)(cid:76)(cid:90)(cid:19)(cid:3)(cid:72)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:89)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:90)(cid:19)(cid:3)(cid:58)(cid:44)(cid:42)
(cid:196)(cid:83)(cid:80)(cid:85)(cid:78)(cid:90)(cid:3)(cid:80)(cid:85)(cid:74)(cid:83)(cid:92)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:45)(cid:86)(cid:89)(cid:84)(cid:3)(cid:24)(cid:23)(cid:20)(cid:50)(cid:19)(cid:3)
(cid:72)(cid:74)(cid:88)(cid:92)(cid:80)(cid:90)(cid:80)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:19)(cid:3)(cid:90)(cid:92)(cid:87)(cid:87)(cid:83)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:72)(cid:83)(cid:3)
(cid:196)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)(cid:75)(cid:80)(cid:90)(cid:74)(cid:83)(cid:86)(cid:90)(cid:92)(cid:89)(cid:76)(cid:19)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:72)(cid:83)(cid:83)(cid:3)
(cid:86)(cid:91)(cid:79)(cid:76)(cid:89)(cid:3)(cid:74)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:76)(cid:3)(cid:85)(cid:76)(cid:94)(cid:90)(cid:3)(cid:89)(cid:76)(cid:83)(cid:76)(cid:72)(cid:90)(cid:76)(cid:90)(cid:19)(cid:3)
(cid:87)(cid:83)(cid:76)(cid:72)(cid:90)(cid:76)(cid:3)(cid:93)(cid:80)(cid:90)(cid:80)(cid:91)(cid:3)(cid:86)(cid:92)(cid:89)(cid:3)(cid:94)(cid:76)(cid:73)(cid:90)(cid:80)(cid:91)(cid:76)(cid:3)(cid:72)(cid:91)(cid:33)(cid:3)
(cid:75)(cid:86)(cid:93)(cid:76)(cid:89)(cid:74)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:21)(cid:74)(cid:86)(cid:84)(cid:21)

(cid:43)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:90)(cid:33)
(cid:56)(cid:92)(cid:72)(cid:89)(cid:91)(cid:76)(cid:89)(cid:83)(cid:96)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:90)(cid:3)(cid:86)(cid:85)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)
(cid:42)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:3)(cid:74)(cid:86)(cid:84)(cid:84)(cid:86)(cid:85)(cid:3)(cid:90)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:72)(cid:89)(cid:76)
(cid:91)(cid:96)(cid:87)(cid:80)(cid:74)(cid:72)(cid:83)(cid:83)(cid:96)(cid:3)(cid:87)(cid:72)(cid:80)(cid:75)(cid:3)(cid:86)(cid:85)(cid:3)(cid:86)(cid:89)(cid:3)(cid:72)(cid:73)(cid:86)(cid:92)(cid:91)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)
(cid:24)(cid:28)(cid:91)(cid:79)(cid:3)(cid:86)(cid:77)(cid:3)(cid:52)(cid:72)(cid:89)(cid:74)(cid:79)(cid:19)(cid:3)(cid:49)(cid:92)(cid:85)(cid:76)(cid:19)(cid:3)(cid:58)(cid:76)(cid:87)(cid:91)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:3)
(cid:72)(cid:85)(cid:75)(cid:3)(cid:43)(cid:76)(cid:74)(cid:76)(cid:84)(cid:73)(cid:76)(cid:89)(cid:21)(cid:3)(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:3)(cid:79)(cid:72)(cid:90)(cid:3)(cid:87)(cid:72)(cid:80)(cid:75)(cid:3)
(cid:72)(cid:85)(cid:3)(cid:80)(cid:85)(cid:74)(cid:89)(cid:76)(cid:72)(cid:90)(cid:76)(cid:75)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:3)(cid:76)(cid:72)(cid:74)(cid:79)(cid:3)(cid:96)(cid:76)(cid:72)(cid:89)(cid:3)
(cid:90)(cid:80)(cid:85)(cid:74)(cid:76)(cid:3)(cid:24)(cid:32)(cid:28)(cid:28)(cid:21)

(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:187)(cid:90)(cid:3)(cid:59)(cid:80)(cid:74)(cid:82)(cid:76)(cid:89)(cid:3)(cid:58)(cid:96)(cid:84)(cid:73)(cid:86)(cid:83)(cid:33) 
(cid:43)(cid:86)(cid:93)(cid:76)(cid:89)(cid:187)(cid:90)(cid:3)(cid:91)(cid:80)(cid:74)(cid:82)(cid:76)(cid:89)(cid:3)(cid:90)(cid:96)(cid:84)(cid:73)(cid:86)(cid:83)(cid:3)(cid:80)(cid:90)(cid:3)(cid:43)(cid:54)(cid:61)(cid:21)(cid:3)(cid:3)(cid:3)
(cid:59)(cid:79)(cid:76)(cid:3)(cid:90)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:91)(cid:89)(cid:72)(cid:75)(cid:76)(cid:90)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:53)(cid:76)(cid:94)(cid:3)(cid:3)
(cid:64)(cid:86)(cid:89)(cid:82)(cid:3)(cid:58)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:44)(cid:95)(cid:74)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:80)(cid:90)(cid:3)(cid:3)(cid:3)(cid:3)
(cid:86)(cid:85)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:74)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:83)(cid:80)(cid:90)(cid:91)(cid:76)(cid:75)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)
(cid:80)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:58)(cid:13)(cid:55)(cid:3)(cid:28)(cid:23)(cid:23)(cid:21)

(cid:48)(cid:85)(cid:75)(cid:76)(cid:87)(cid:76)(cid:85)(cid:75)(cid:76)(cid:85)(cid:91)(cid:3)(cid:40)(cid:74)(cid:74)(cid:86)(cid:92)(cid:85)(cid:91)(cid:72)(cid:85)(cid:91)(cid:90)(cid:33)
(cid:55)(cid:89)(cid:80)(cid:74)(cid:76)(cid:94)(cid:72)(cid:91)(cid:76)(cid:89)(cid:79)(cid:86)(cid:92)(cid:90)(cid:76)(cid:42)(cid:86)(cid:86)(cid:87)(cid:76)(cid:89)(cid:90)(cid:3)(cid:51)(cid:51)(cid:55)
(cid:42)(cid:79)(cid:80)(cid:74)(cid:72)(cid:78)(cid:86)(cid:19)(cid:3)(cid:48)(cid:51)

(cid:44)(cid:95)(cid:76)(cid:74)(cid:92)(cid:91)(cid:80)(cid:93)(cid:76)(cid:3)(cid:54)(cid:585)(cid:74)(cid:76)(cid:90)(cid:33)
Dover Corporation
(cid:26)(cid:23)(cid:23)(cid:28)(cid:3)(cid:47)(cid:80)(cid:78)(cid:79)(cid:83)(cid:72)(cid:85)(cid:75)(cid:3)(cid:55)(cid:72)(cid:89)(cid:82)(cid:94)(cid:72)(cid:96)
(cid:43)(cid:86)(cid:94)(cid:85)(cid:76)(cid:89)(cid:90)(cid:3)(cid:46)(cid:89)(cid:86)(cid:93)(cid:76)(cid:19)(cid:3)(cid:48)(cid:51)(cid:3)(cid:29)(cid:23)(cid:28)(cid:24)(cid:28)
(cid:15)(cid:29)(cid:26)(cid:23)(cid:16)(cid:3)(cid:28)(cid:27)(cid:24)(cid:20)(cid:24)(cid:28)(cid:27)(cid:23)
(cid:61)(cid:80)(cid:90)(cid:80)(cid:91)(cid:3)(cid:92)(cid:90)(cid:3)(cid:86)(cid:85)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:94)(cid:76)(cid:73)(cid:3)(cid:72)(cid:91)(cid:33)
(cid:75)(cid:86)(cid:93)(cid:76)(cid:89)(cid:74)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:21)(cid:74)(cid:86)(cid:84)

(cid:59)(cid:79)(cid:80)(cid:90)(cid:3)(cid:89)(cid:76)(cid:87)(cid:86)(cid:89)(cid:91)(cid:3)(cid:15)(cid:80)(cid:85)(cid:74)(cid:83)(cid:92)(cid:75)(cid:80)(cid:85)(cid:78)(cid:3)(cid:196)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)
(cid:90)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:90)(cid:3)(cid:72)(cid:85)(cid:75)(cid:3)(cid:196)(cid:85)(cid:72)(cid:85)(cid:74)(cid:80)(cid:72)(cid:83)(cid:3)
(cid:90)(cid:91)(cid:72)(cid:91)(cid:76)(cid:84)(cid:76)(cid:85)(cid:91)(cid:3)(cid:90)(cid:74)(cid:79)(cid:76)(cid:75)(cid:92)(cid:83)(cid:76)(cid:90)(cid:16)(cid:3)(cid:94)(cid:80)(cid:83)(cid:83)(cid:3)(cid:73)(cid:76)(cid:3)
(cid:87)(cid:89)(cid:86)(cid:93)(cid:80)(cid:75)(cid:76)(cid:75)(cid:3)(cid:77)(cid:89)(cid:76)(cid:76)(cid:3)(cid:86)(cid:77)(cid:3)(cid:74)(cid:79)(cid:72)(cid:89)(cid:78)(cid:76)(cid:3)(cid:92)(cid:87)(cid:86)(cid:85)(cid:3)
(cid:94)(cid:89)(cid:80)(cid:91)(cid:91)(cid:76)(cid:85)(cid:3)(cid:89)(cid:76)(cid:88)(cid:92)(cid:76)(cid:90)(cid:91)(cid:3)(cid:91)(cid:86)(cid:3)(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)(cid:3)
(cid:57)(cid:76)(cid:83)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:90)(cid:3)(cid:72)(cid:91)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)(cid:72)(cid:73)(cid:86)(cid:93)(cid:76)(cid:3)(cid:72)(cid:75)(cid:75)(cid:89)(cid:76)(cid:90)(cid:90)(cid:21)(cid:3)

(cid:40)(cid:85)(cid:85)(cid:92)(cid:72)(cid:83)(cid:3)(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:90)(cid:3)(cid:52)(cid:76)(cid:76)(cid:91)(cid:80)(cid:85)(cid:78)(cid:33)
(cid:59)(cid:79)(cid:92)(cid:89)(cid:90)(cid:75)(cid:72)(cid:96)(cid:19)(cid:3)(cid:52)(cid:72)(cid:96)(cid:3)(cid:25)(cid:19)(cid:3)(cid:25)(cid:23)(cid:24)(cid:32)
(cid:24)(cid:33)(cid:23)(cid:23)(cid:3)(cid:87)(cid:21)(cid:84)(cid:21)(cid:3)(cid:44)(cid:72)(cid:90)(cid:91)(cid:76)(cid:89)(cid:85)(cid:3)(cid:59)(cid:80)(cid:84)(cid:76)
(cid:42)(cid:86)(cid:85)(cid:89)(cid:72)(cid:75)(cid:3)(cid:45)(cid:86)(cid:89)(cid:91)(cid:3)(cid:51)(cid:72)(cid:92)(cid:75)(cid:76)(cid:89)(cid:75)(cid:72)(cid:83)(cid:76)(cid:3)(cid:41)(cid:76)(cid:72)(cid:74)(cid:79)
(cid:28)(cid:28)(cid:24)(cid:3)(cid:53)(cid:86)(cid:89)(cid:91)(cid:79)(cid:3)(cid:45)(cid:86)(cid:89)(cid:91)(cid:3)(cid:51)(cid:72)(cid:92)(cid:75)(cid:76)(cid:89)(cid:75)(cid:72)(cid:83)(cid:76)(cid:3)
(cid:41)(cid:76)(cid:72)(cid:74)(cid:79)(cid:3)(cid:41)(cid:86)(cid:92)(cid:83)(cid:76)(cid:93)(cid:72)(cid:89)(cid:75)
(cid:45)(cid:86)(cid:89)(cid:91)(cid:3)(cid:51)(cid:72)(cid:92)(cid:75)(cid:76)(cid:89)(cid:75)(cid:72)(cid:83)(cid:76)(cid:19)(cid:3)(cid:45)(cid:83)(cid:86)(cid:89)(cid:80)(cid:75)(cid:72)(cid:3)(cid:26)(cid:26)(cid:26)(cid:23)(cid:27)

(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:3)(cid:58)(cid:76)(cid:89)(cid:93)(cid:80)(cid:74)(cid:76)(cid:90)(cid:33)
(cid:45)(cid:86)(cid:89)(cid:3)(cid:79)(cid:76)(cid:83)(cid:87)(cid:3)(cid:94)(cid:80)(cid:91)(cid:79)(cid:3)(cid:72)(cid:85)(cid:96)(cid:3)(cid:86)(cid:77)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)
(cid:77)(cid:86)(cid:83)(cid:83)(cid:86)(cid:94)(cid:80)(cid:85)(cid:78)(cid:19)(cid:3)(cid:87)(cid:83)(cid:76)(cid:72)(cid:90)(cid:76)(cid:3)(cid:74)(cid:86)(cid:85)(cid:91)(cid:72)(cid:74)(cid:91)(cid:33)
(cid:42)(cid:86)(cid:84)(cid:87)(cid:92)(cid:91)(cid:76)(cid:89)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)
(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:86)(cid:94)(cid:85)(cid:76)(cid:89)(cid:3)(cid:58)(cid:76)(cid:89)(cid:93)(cid:80)(cid:74)(cid:76)(cid:90)(cid:33) 
  (cid:81)(cid:3)(cid:3)(cid:40)(cid:75)(cid:75)(cid:89)(cid:76)(cid:90)(cid:90)(cid:3)(cid:74)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:90)

(cid:81)(cid:3)(cid:3)(cid:43)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:3)(cid:75)(cid:76)(cid:87)(cid:86)(cid:90)(cid:80)(cid:91)(cid:3)(cid:86)(cid:77)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:90)
(cid:81)(cid:3)(cid:3)(cid:43)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:3)(cid:89)(cid:76)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:84)(cid:76)(cid:85)(cid:91)
(cid:81)(cid:3)(cid:3)(cid:51)(cid:86)(cid:90)(cid:91)(cid:3)(cid:75)(cid:80)(cid:93)(cid:80)(cid:75)(cid:76)(cid:85)(cid:75)(cid:3)(cid:74)(cid:79)(cid:76)(cid:74)(cid:82)(cid:90)
(cid:81)(cid:3)(cid:3)(cid:51)(cid:86)(cid:90)(cid:91)(cid:3)(cid:90)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:74)(cid:76)(cid:89)(cid:91)(cid:80)(cid:196)(cid:74)(cid:72)(cid:91)(cid:76)(cid:90)
(cid:81)(cid:3)(cid:3)(cid:53)(cid:72)(cid:84)(cid:76)(cid:3)(cid:74)(cid:79)(cid:72)(cid:85)(cid:78)(cid:76)(cid:90)
(cid:81)(cid:3)(cid:3)(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:79)(cid:86)(cid:83)(cid:75)(cid:76)(cid:89)(cid:3)(cid:89)(cid:76)(cid:74)(cid:86)(cid:89)(cid:75)(cid:90)
(cid:81)(cid:3)(cid:3)(cid:58)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:91)(cid:89)(cid:72)(cid:85)(cid:90)(cid:77)(cid:76)(cid:89)(cid:90)
(cid:81)(cid:3)(cid:3)(cid:48)(cid:57)(cid:58)(cid:3)(cid:45)(cid:86)(cid:89)(cid:84)(cid:3)(cid:24)(cid:23)(cid:32)(cid:32)
(cid:81)(cid:3)(cid:3)(cid:43)(cid:80)(cid:89)(cid:76)(cid:74)(cid:91)(cid:3)(cid:58)(cid:91)(cid:86)(cid:74)(cid:82)(cid:3)(cid:55)(cid:92)(cid:89)(cid:74)(cid:79)(cid:72)(cid:90)(cid:76)(cid:3)(cid:55)(cid:83)(cid:72)(cid:85)

(cid:42)(cid:86)(cid:84)(cid:87)(cid:92)(cid:91)(cid:76)(cid:89)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)(cid:58)(cid:79)(cid:72)(cid:89)(cid:76)(cid:86)(cid:94)(cid:85)(cid:76)(cid:89)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)(cid:3)
(cid:58)(cid:76)(cid:89)(cid:93)(cid:80)(cid:74)(cid:76)(cid:90)(cid:3)(cid:74)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:3)(cid:89)(cid:76)(cid:72)(cid:74)(cid:79)(cid:76)(cid:75)(cid:3)(cid:72)(cid:91)(cid:3)(cid:91)(cid:79)(cid:76)(cid:3)
(cid:77)(cid:86)(cid:83)(cid:83)(cid:86)(cid:94)(cid:80)(cid:85)(cid:78)(cid:3)(cid:72)(cid:75)(cid:75)(cid:89)(cid:76)(cid:90)(cid:90)(cid:33)

(cid:41)(cid:96)(cid:3)(cid:57)(cid:76)(cid:78)(cid:92)(cid:83)(cid:72)(cid:89)(cid:3)(cid:52)(cid:72)(cid:80)(cid:83)(cid:33)
(cid:42)(cid:86)(cid:84)(cid:87)(cid:92)(cid:91)(cid:76)(cid:89)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)(cid:3)(cid:58)(cid:76)(cid:89)(cid:93)(cid:80)(cid:74)(cid:76)(cid:90)
(cid:55)(cid:21)(cid:54)(cid:21)(cid:3)(cid:41)(cid:86)(cid:95)(cid:3)(cid:28)(cid:23)(cid:28)(cid:23)(cid:23)(cid:23)
(cid:51)(cid:86)(cid:92)(cid:80)(cid:90)(cid:93)(cid:80)(cid:83)(cid:83)(cid:76)(cid:19)(cid:3)(cid:50)(cid:64)(cid:3)(cid:27)(cid:23)(cid:25)(cid:26)(cid:26)(cid:20)(cid:28)(cid:23)(cid:23)(cid:23)
(cid:60)(cid:85)(cid:80)(cid:91)(cid:76)(cid:75)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:90)

(cid:41)(cid:96)(cid:3)(cid:54)(cid:93)(cid:76)(cid:89)(cid:85)(cid:80)(cid:78)(cid:79)(cid:91)(cid:3)(cid:43)(cid:76)(cid:83)(cid:80)(cid:93)(cid:76)(cid:89)(cid:96)(cid:33)
(cid:42)(cid:86)(cid:84)(cid:87)(cid:92)(cid:91)(cid:76)(cid:89)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:3)(cid:48)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)(cid:3)(cid:58)(cid:76)(cid:89)(cid:93)(cid:80)(cid:74)(cid:76)(cid:90)
(cid:27)(cid:29)(cid:25)(cid:3)(cid:58)(cid:86)(cid:92)(cid:91)(cid:79)(cid:3)(cid:27)(cid:91)(cid:79)(cid:3)(cid:58)(cid:91)(cid:89)(cid:76)(cid:76)(cid:91)(cid:19)(cid:3)(cid:58)(cid:92)(cid:80)(cid:91)(cid:76)(cid:3)(cid:24)(cid:29)(cid:23)(cid:23)
(cid:51)(cid:86)(cid:92)(cid:80)(cid:90)(cid:93)(cid:80)(cid:83)(cid:83)(cid:76)(cid:19)(cid:3)(cid:50)(cid:64)(cid:3)(cid:27)(cid:23)(cid:25)(cid:23)(cid:25)
(cid:60)(cid:85)(cid:80)(cid:91)(cid:76)(cid:75)(cid:3)(cid:58)(cid:91)(cid:72)(cid:91)(cid:76)(cid:90)

(cid:59)(cid:86)(cid:83)(cid:83)(cid:3)(cid:45)(cid:89)(cid:76)(cid:76)(cid:33)(cid:3)
(cid:15)(cid:31)(cid:31)(cid:31)(cid:16)(cid:3)(cid:28)(cid:29)(cid:30)(cid:20)(cid:31)(cid:26)(cid:27)(cid:24)

(cid:59)(cid:86)(cid:83)(cid:83)(cid:33)(cid:3)
(cid:18)(cid:24)(cid:3)(cid:15)(cid:25)(cid:23)(cid:24)(cid:16)(cid:3)(cid:29)(cid:31)(cid:23)(cid:20)(cid:29)(cid:28)(cid:30)(cid:31)

(cid:74)(cid:86)(cid:84)(cid:87)(cid:92)(cid:91)(cid:76)(cid:89)(cid:90)(cid:79)(cid:72)(cid:89)(cid:76)(cid:21)(cid:74)(cid:86)(cid:84)(cid:22)(cid:80)(cid:85)(cid:93)(cid:76)(cid:90)(cid:91)(cid:86)(cid:89)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dover Corporation
(cid:26)(cid:23)(cid:23)(cid:28)(cid:3)(cid:47)(cid:80)(cid:78)(cid:79)(cid:83)(cid:72)(cid:85)(cid:75)(cid:3)(cid:55)(cid:72)(cid:89)(cid:82)(cid:94)(cid:72)(cid:96)
(cid:43)(cid:86)(cid:94)(cid:85)(cid:76)(cid:89)(cid:90)(cid:3)(cid:46)(cid:89)(cid:86)(cid:93)(cid:76)(cid:19)(cid:3)(cid:48)(cid:51)(cid:3)(cid:29)(cid:23)(cid:28)(cid:24)(cid:28)

(cid:75)(cid:86)(cid:93)(cid:76)(cid:89)(cid:74)(cid:86)(cid:89)(cid:87)(cid:86)(cid:89)(cid:72)(cid:91)(cid:80)(cid:86)(cid:85)(cid:21)(cid:74)(cid:86)(cid:84)