8-KRegulation FDExhibits & Filings

DOVER Corp 8-K Report, Regulation FD Disclosure (Nov 2, 2018)

Filed November 2, 2018For Securities:DOV

Summary

Dover Corporation (DOV) has filed an 8-K report on November 2, 2018, primarily to disclose adjustments related to the Tax Cuts and Jobs Act of 2017. The company initially recognized a provisional tax benefit of $172 million in the fourth quarter of 2017 due to the reduction in the U.S. corporate income tax rate from 35% to 21%. This provisional benefit was subject to finalization in the fourth quarter of 2018, pending further regulatory guidance and company actions. The report clarifies a reclassification of $53.2 million of this provisional benefit. This amount, previously presented within discontinued operations in earlier filings, is now being reclassified to continuing operations' provision for income taxes. Importantly, this reclassification does not impact Dover's reported 2017 net earnings or its adjusted earnings from continuing operations, nor does it alter previously filed financial statements for 2017.

Key Highlights

  • 1Dover Corp (DOV) filing on November 2, 2018, addresses the impact of the 2017 Tax Reform Act.
  • 2Company recognized a provisional tax benefit of $172 million in Q4 2017 due to the U.S. corporate tax rate reduction.
  • 3The provisional tax benefit is subject to finalization in Q4 2018, as per SEC Staff Accounting Bulletin No. 118.
  • 4A portion of the benefit ($53.2 million) is being reclassified from discontinued operations to continuing operations' provision for income taxes.
  • 5This reclassification has no impact on Dover's reported 2017 net earnings or adjusted earnings from continuing operations.
  • 6Previously filed 2017 financial statements (10-K/A and 10-Q) are not affected by this update.
  • 7Exhibit 99.1 provides revised Fourth Quarter and Full Year 2017 Financial Information.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide updated financial information related to the provisional tax benefit recognized by Dover Corporation in the fourth quarter of 2017, stemming from the Tax Cuts and Jobs Act of 2017. It also clarifies a reclassification of a portion of this benefit.

The company recognized a provisional tax benefit of $172 million in Q4 2017 due to the significant reduction in the U.S. corporate income tax rate. This benefit was provisional because it was subject to adjustments based on further regulatory guidance, interpretation, and actions the company might take. It is being finalized in Q4 2018 in accordance with SEC guidance (SAB 118).

No, the reclassification of $53.2 million from discontinued operations to continuing operations does not impact Dover's reported net earnings for 2017 or its adjusted earnings from continuing operations for that year. The overall financial impact on 2017 net income remains unchanged.

No, this filing states that the reclassification has no effect on Dover's 2017 Form 10-K/A or its Form 10-Q filings. The information provided is being furnished and is not intended to be incorporated into other SEC filings.