10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 1, 2018

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 001-14962

CIRCOR INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Delaware	04-3477276
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

c/o CIRCOR INTERNATIONAL, Inc. 30 Corporate Drive, Suite 200, Burlington, MA	01803-4238
(Address of principal executive offices)	(Zip Code)

(781) 270-1200

(Registrant’s telephone number, including area code)

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  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth 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.

Large accelerated filer	x		Accelerated filer	o	Emerging growth company	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    Yes  o    No  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  x

As of May 8, 2018, there were 19,830,057 shares of the registrant’s Common Stock, par value $0.01 per share, outstanding.

CIRCOR INTERNATIONAL, INC.

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017	3
	Condensed Consolidated Statements of (Loss) Income for the Three Months Ended April 1, 2018 and April 2, 2017	4
	Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended April 1, 2018 and April 2, 2017	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 1, 2018 and April 2, 2017	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
PART II.	OTHER INFORMATION	34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 6.	Exhibits	35
Signatures		36

2

PART I.FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(UNAUDITED)

	April 1, 2018			December 31, 2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	123,305		$	110,356
Trade accounts receivable, less allowance for doubtful accounts of $5,882 and $4,791, respectively	198,181			223,922
Inventories	253,712			244,896
Restricted Cash	1,898			1,937
Prepaid expenses and other current assets	70,290			57,282
Total Current Assets	647,386			638,393
PROPERTY, PLANT AND EQUIPMENT, NET	226,439			217,539
OTHER ASSETS:
Goodwill	520,157			505,762
Intangibles, net	497,027			513,364
Deferred income taxes	28,236			22,334
Other assets	8,862			9,407
TOTAL ASSETS	$	1,928,107		$	1,906,799
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	118,441		$	117,329
Accrued expenses and other current liabilities	167,753			170,454
Accrued compensation and benefits	30,865			34,734
Total Current Liabilities	317,059			322,517
LONG-TERM DEBT	815,795			787,343
DEFERRED INCOME TAXES	31,099			26,122
PENSION LIABILITY, NET	150,572			150,719
OTHER NON-CURRENT LIABILITIES	21,486			18,124
COMMITMENTS AND CONTINGENCIES (NOTE 10)
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding	—			—
Common stock, $0.01 par value; 29,000,000 shares authorized; 19,825,875 and 19,785,298 shares issued and outstanding at April 1, 2018 and December 31, 2017, respectively	212			212
Additional paid-in capital	440,699			438,721
Retained earnings	254,046			274,243
Common treasury stock, at cost (1,372,488 shares at April 1, 2018 and December 31, 2017)	(74,472		)	(74,472		)
Accumulated other comprehensive loss, net of tax	(28,389		)	(36,730		)
Total Shareholders’ Equity	592,096			601,974
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,928,107		$	1,906,799

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(in thousands, except per share data)

(UNAUDITED)

	Three Months Ended
	April 1, 2018			April 2, 2017
Net revenues	$	275,580		$	145,208
Cost of revenues	199,276			98,575
GROSS PROFIT	76,304			46,633
Selling, general and administrative expenses	77,238			40,089
Special and restructuring charges (recoveries), net	12,446			(810		)
OPERATING (LOSS) INCOME	(13,380		)	7,354
Other expense (income):
Interest expense, net	11,801			1,669
Other (income) expense, net	(1,861		)	225
TOTAL OTHER EXPENSE, NET	9,940			1,894
(LOSS) INCOME BEFORE INCOME TAXES	(23,320		)	5,460
(Benefit from) provision for income taxes	(5,879		)	687
NET (LOSS) INCOME	$	(17,441	)	$	4,773
(Loss) Earnings per common share:
Basic	$	(0.88	)	$	0.29
Diluted	$	(0.88	)	$	0.29
Weighted average number of common shares outstanding:
Basic	19,806			16,458
Diluted	19,806			16,691
Dividends declared per common share	$	—		$	0.0375

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands)

(UNAUDITED)

	Three Months Ended
	April 1, 2018			April 2, 2017
Net (loss) income	$	(17,441	)	$	4,773
Other comprehensive income, net of tax:
Foreign currency translation adjustments	8,341			5,396
Other comprehensive income, net of tax	8,341			5,396
COMPREHENSIVE (LOSS) INCOME	$	(9,100	)	$	10,169

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

CIRCOR INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

	Three Months Ended
OPERATING ACTIVITIES	April 1, 2018			April 2, 2017
Net (loss) income	$	(17,441	)	$	4,773
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	7,334			3,798
Amortization	12,329			3,092
Bad debt expense (recovery)	261			(54		)
Loss on write down of inventory and amortization of fair value step-up	7,563			548
Compensation expense of share-based plans	1,365			738
Change in fair value of contingent consideration	—			(2,500		)
Amortization of debt issuance costs	881			—
Loss (gain) on sale or write down of property, plant and equipment	1,284			(110		)
Changes in operating assets and liabilities, net of effects of acquisition and disposition:
Trade accounts receivable	22,038			14,018
Inventories	(14,850		)	2,030
Prepaid expenses and other assets	(11,648		)	(4,297		)
Accounts payable, accrued expenses and other liabilities	(9,261		)	(5,841		)
Net cash (used in) provided by operating activities	(145		)	16,195
INVESTING ACTIVITIES
Additions to property, plant and equipment	(8,234		)	(3,001		)
Proceeds from the sale of property, plant and equipment	93			190
Business acquisition, working capital adjustment	—			1,467
Net cash used in investing activities	(8,141		)	(1,344		)
FINANCING ACTIVITIES
Proceeds from long-term debt	71,950			34,900
Payments of long-term debt	(44,106		)	(43,100		)
Dividends paid	—			(624		)
Proceeds from the exercise of stock options	301			295
Return of cash to seller	(7,905		)	—
Net cash provided by (used in) financing activities	20,240			(8,529		)
Effect of exchange rate changes on cash and cash equivalents	956			1,055
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	12,910			7,377
Cash, cash equivalents, and restricted cash at beginning of period	112,293			58,279
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	$	125,203		$	65,656
Non-cash investing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	$	2,104		$	509

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

CIRCOR INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(1) Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared according to the rules and regulations of the United States (the "U.S.") Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of cash flows of CIRCOR International, Inc. (“CIRCOR”, the “Company”, “us”, “we” or “our”) for the periods presented. We prepare our interim financial information using the same accounting principles we use for our annual audited consolidated financial statements. Certain information and note disclosures normally included in the annual audited consolidated financial statements have been condensed or omitted in accordance with SEC rules. We believe that the disclosures made in our condensed consolidated financial statements and the accompanying notes are adequate to make the information presented not misleading.

The consolidated balance sheet as of December 31, 2017 is as reported in our audited consolidated financial statements as of that date but does not contain all of the footnote disclosures from the annual financial statements. Our accounting policies are described in the notes to our December 31, 2017 consolidated financial statements, which were included in our Annual Report on Form 10-K for the year ended December 31, 2017, as updated by Note 2 with respect to newly adopted accounting standards. We recommend that the financial statements included in our Quarterly Report on Form 10-Q be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017.

We operate and report financial information using a fiscal year ending December 31. The data periods contained within our Quarterly Reports on Form 10-Q reflect the results of operations for the 13-week, 26-week and 39-week periods which generally end on the Sunday nearest the calendar quarter-end date. Operating results for the three months ended April 1, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any future quarter.

Unless otherwise indicated, all financial information and statistical data included in these notes to our condensed consolidated financial statements relate to our continuing operations, with dollar amounts expressed in thousands (except per-share data).

(2) Summary of Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements for the three months ended April 1, 2018 are consistent with those discussed in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2017, except as updated below with respect to newly adopted accounting standards.

New Accounting Standards - Adopted

On January 1, 2018, we adopted the Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("ASU") 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 provides further clarification of the definition of a business with the objective to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets versus businesses. The amendments in ASU 2017-01 provide criteria to determine when a set of assets and activities is not a business. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of ASU 2017-01 has not had a material impact on our consolidated financial statements.

On January 1, 2018, we adopted the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. The amendments in this ASU also clarify that no new measurement date will be required if an award is not probable of vesting at the time a change is made and there is no change to the fair value, vesting conditions, and classification. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of ASU 2017-09 has not had a material impact on our consolidated financial statements.

7

On January 1, 2018, we adopted the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU 2016-18 has not had a material impact on our consolidated financial statements.

On January 1, 2018, we adopted the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715), which improves the consistency, transparency, and usefulness of the service cost and net benefit cost financial information components. The amendments in this ASU amend presentation requirements of service cost and other components of net benefit cost in the income statement. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this ASU are applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic post-retirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic post-retirement benefit in assets. We have elected to use the practical expedient that permits us to use the amounts disclosed in our pension and other post-retirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. For prospective and retroactive reclassification, service costs are recorded within the selling, general, and administrative caption of our consolidated income statement, while the other components of net benefit cost are recorded in the other expense (income), net caption of our consolidated income statement. For the first quarter of 2017, we reclassified $0.4 million of income from the selling, general, and administrative caption to other (income) expense within our consolidated income statement.

On January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (“ASC 606” or the “new revenue standard”) using the modified retrospective transition approach. The new revenue standard provides for a single comprehensive model to use in accounting for revenue arising from contracts with customers and replaces most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles ("GAAP"). We recognized the cumulative effect of adopting the new revenue standard as an adjustment to the opening balance of retained earnings as of January 1, 2018. The comparative periods presented have not been restated and continue to be reported under the accounting standards in effect for those periods.

The Company recognizes revenue to depict the transfer of control to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled to in exchange for performance obligations. In order to apply this revenue recognition principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, a performance obligation is satisfied. See Note 14, Revenue Recognition for further information.

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands):

8

	As of December 31, 2017		ASC 606 Adjustments		As of January 1, 2018
Assets
Contract assets (1)	15,019		(2,995	)	12,024
Inventories	244,896		540		245,436
Deferred income taxes	22,333		1,123		23,456
Liabilities
Contract liabilities (2)	(33,718	)	(1,517	)	(35,235	)
Deferred income taxes	(26,122	)	92		(26,030	)
Equity
Retained earnings	(274,243	)	2,757		(271,486	)
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

Note that the net impact on retained earnings under the new revenue standard is the result of offsetting amounts attributed to contracts that converted from point in time to over time recognition of $2.5 million and contracts that converted from over time to point in time recognition of $5.3 million.

For contracts that were modified before the effective date, we reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedients under the new revenue standard, which did not have a material effect on the adjustment to retained earnings.

9

The tables below illustrate the differences in our condensed consolidated statement of (loss) income and balance sheet due to the change in revenue recognition standard (in thousands):

	For the three months ended April 1, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Net revenues	275,580		243,775		31,805
Cost of revenues	199,276		175,066		24,210
(Benefit) provision from income taxes	(5,879	)	(7,579	)	1,700
Net (Loss) Income	(17,441	)	(23,336	)	5,895
	As of April 1, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Assets
Contract assets (1)	26,454		18,733		7,721
Inventories	253,712		259,679		(5,967	)
Deferred income taxes	28,236		29,981		(1,745	)
Liabilities
Contract liabilities (2)	31,221		35,962		(4,741	)
Deferred income taxes	31,099		30,844		255
Retained earnings (3)	254,046		249,551		4,495
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

For the three months ended April 1, 2018, we realized changes to our net loss and in the working capital accounts as described above, with no impact on our net cash flows from operating activities.

For the three months ended April 1, 2018, the only impacts to comprehensive income as a result of the changes between the balances with ASC 606 and without ASC 606 related to the adjustments to net loss shown in the table above.

New Accounting Standards - Not yet Adopted

In March 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 outlines a model for lessees by recognizing all lease-related assets and liabilities on the balance sheet. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. We are still evaluating the requirements of ASU 2016-02 to determine the impact it will have on our consolidated financial statements but expect the standard to have a material impact on our assets and liabilities for the addition of right-of-use assets with corresponding lease liabilities. We intend to adopt this new standard on January 1, 2019.

(3) Revenue Recognition

Our revenue is derived from a variety of contracts. A significant portion of our revenues are from contracts associated with the design, development, manufacture or modification of highly engineered, complex and severe environment products with customers who are either in or service the energy, aerospace, defense and industrial markets. Our contracts within the defense markets are primarily with U.S. military customers. Our contracts with the U.S. military customers typically are subject to the Federal Acquisition Regulation (FAR). We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Contracts may be modified to account for changes in contract specifications and requirements.

10

Contract modifications exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract are accounted for as if they were part of that existing contract. In these cases, the effect of the contract modification on the transaction price and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis, except when such modifications relate to a performance obligation which is a series of substantially the same distinct goods or services.  If the modification relates to a performance obligation for a series of substantially the same distinct goods or services, the modifications are treated prospectively. Contract modifications for goods or services that are considered distinct from the existing contract are accounted for as separate contracts.

Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, control is transferred to the customer. Consistent with historical practice, we exclude from the transaction price amounts collected on behalf of third parties (e.g. taxes). Our performance obligations are typically satisfied at a point in time upon delivery and shipping and handling costs are treated as fulfillment costs. To determine the proper revenue recognition method for contracts for highly engineered, complex and severe environment products with right of payment, which meet over-time revenue recognition criteria, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. In certain instances, we accounted for contracts using the portfolio approach when the effect of accounting for a group of contracts or group of performance obligations would not differ materially from considering each contract or performance obligation separately. This determination requires the use of estimates and assumptions that reflect the size and composition of the portfolio. For most of our over-time revenue recognition contracts, the customer contracts with us to provide custom products which serve a single project or capability (even if that single project results in the delivery of multiple products) with right of payment. In circumstances where each distinct product in the contract transfers to the customer over time and the same method would be used to measure the entity’s progress toward complete satisfaction of the performance obligation to transfer each unit to the customer, we would then apply the series guidance to account for the multiple products as a single performance obligation. Hence, the entire contract is accounted for as one performance obligation. An example of these performance obligations include refinery valves or actuation components and sub-systems. Less commonly, however, we may promise to provide distinct goods or services within the over-time revenue recognition contract, in which case we separate the contract into more than one performance obligation. For all contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Generally, the contractually stated price is the primary method used to estimate standalone selling price as the good or service is sold separately in similar circumstances and to similar customers for a similar price and discounts are allocated proportionally to each performance obligation. The Company will not adjust the promised amount of consideration for the effects of a significant financing component as we expect, at contract inception, that the period between when the transfer of control to our customers and when the customer fully pays for the related performance obligations will be less than a year.

Revenue from products and services transferred to customers over-time accounted for 11 percent of our revenue for the three-month period ended April 1, 2018. The majority of our revenue recognized over-time is related to our Engineered Valves and Refinery Valves businesses within our Energy segment and certain other businesses that provide customized products to U.S. military customers within our Aerospace and Defense segment and have contract provisions guaranteeing us costs and profit upon customer cancellation. Revenue is recognized over-time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion, known as the “cost-to-cost” method) to measure progress. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, revenues are recorded proportionally as costs are incurred. Contract costs include labor, materials and subcontractors’ costs, other direct costs and an allocation of overhead, as appropriate.

On April 1, 2018, we had $502.1 million of remaining performance obligations. We expect to recognize approximately 86 percent of our remaining performance obligations as revenue during the remainder of 2018, 12 percent by 2019, and an additional 2 percent by 2020 and thereafter.

Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Contract assets include unbilled amounts typically resulting from over-time contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current.

11

Generally, payment terms are based on shipment and billing occurs subsequent to revenue recognition, resulting in contract assets for over-time revenue recognition products. However, we sometimes receive advances or deposits from our customers, before revenue is recognized, resulting in contract liabilities. Contract liabilities are generally classified as current. These assets and liabilities are reported net on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Consistent with historical practice, we elected to expense the incremental costs of obtaining a contract when the amortization period for such contracts would have been one year or less.

In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liabilities balances outstanding at the beginning of the period until the revenue exceeds that balance. If additional advances are received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liabilities as opposed to a portion applying to the new advances for the period.

The opening and closing balances of the Company’s contract assets and contract liabilities balances as of April 1, 2018 are as follows (in thousands):

	January 1, 2018	April 1, 2018	Increase/(Decrease)
Trade accounts receivables, net	223,922	198,181	(25,741	)
Contract assets (1)	12,024	26,454	14,430
Contract liabilities (2)	35,235	31,221	(4,014	)
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

The difference in the opening and closing balances of the contract assets and contract liabilities primarily result from the timing difference between the Company’s performance and the customer’s payment.

Trade account receivables, net decreases $25.7 million, or (-11%) primarily driven by customer cash collections during the quarter (-10%).

Contact assets increased $14.4 million, or 120%, related to unbilled revenue recognized during the three months ended April 1, 2018 within our US Defense business (+54%), Refinery Valves business (+28%), North America Valves businesses (+27%), and Pumps Defense business (+22%).

Contract liabilities decreased $4.0 million, or 11%, from $35.2 million as of January 1, 2018 to $31.2 million as of April 1, 2018, primarily driven by revenue recognized over time during the three months ended April 1, 2018 within our Refinery Valves business (-6%) and Pumps Defense business (-5%).

Contract Estimates. Accounting for over-time contracts requires reliable estimates in order to estimate total contract revenue and costs. For these contracts, we have a Company-wide standard and disciplined quarterly Estimate at Completion ("EAC") process in which management reviews the progress and execution of our performance obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the delivery schedule (e.g., the timing of shipments), technical requirements (e.g., a highly engineered product requiring sub-contractors) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g. to estimate increases in wages and prices for materials and related support cost allocations), execution by our subcontractors, the availability and timing of funding from our customer and overhead cost rates, among other variables. Based on all of these factors, we estimate the profit on a contract as the difference between the total estimated revenue and EAC costs and recognize the resultant profit over the life of the contract, using the cost-to-cost EAC input method to measure progress.

The nature of our contracts gives rise to several types of variable consideration, including penalties. We include in our contract estimates a reduction to revenue for customer agreements, primarily in our large projects business, which contain late shipment penalty clauses whereby we are contractually obligated to pay consideration to our customers if we do not meet specified shipment dates. We generally estimate the variable consideration at the most likely amount to which the customer expects to be entitled. We include estimated amounts 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 variable consideration

12

for estimated penalties is based on several factors including historical customer settlement experience, contractual penalty percentages, and facts surrounding the late shipment.

A change in one or more of these estimates could affect the profitability of our contracts. We review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified.

The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue. There have been no significant changes in estimates in the three months ended April 1, 2018.

Disaggregation of Revenue. The following table presents our revenue disaggregated by several categories. Revenue by major product line was as follows (in thousands):

Three months ended		April 1, 2018
Energy Segment
	Oil & Gas - Upstream, Midstream & Other	$	47,885
	Oil & Gas - Downstream	52,087
	Total	99,972
Aerospace & Defense Segment
	Commercial Aerospace & Other	26,657
	Defense	31,820
	Total	58,477
Industrial Segment
	Europe, Middle East, Africa and Asia	80,445
	North America	36,686
	Total	117,131
Q1 2018 Revenue		$	275,580

(4) Inventories

Inventories consisted of the following (in thousands):

	April 1, 2018		December 31, 2017
Raw materials	$	80,901	$	82,372
Work in process	133,767		121,709
Finished goods	39,044		40,815
Total inventories	$	253,712	$	244,896

(5) Business Acquisition

Fluid Handling

On September 24, 2017, CIRCOR entered into a Purchase Agreement (the “Purchase Agreement”) with Colfax Corporation (“Colfax”). Pursuant to the Purchase Agreement, on December 11, 2017, the Company acquired the fluid handling business of Colfax ("FH") for consideration consisting of $542.0 million in cash, 3,283,424 unregistered shares of the Company's common stock, with a fair value of approximately $143.8 million at closing, and the assumption of net pension and post-retirement liabilities of FH. The cash consideration is subject to customary working capital adjustments. The Company financed the cash consideration through a combination of committed debt financing and cash on hand.

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FH is a leader in the engineering, development‚ manufacturing‚ distribution‚ service and support of fluid handling systems. With a history dating back to 1860‚ FH is a leading supplier of screw pumps for high demand, severe service applications across a range of markets including general industry, commercial marine, defense, and oil & gas. FH leverages differentiated technology, and provides critical aftermarket customer support, to maintain leading positions in high demand niche markets.

Effective January 1, 2018, the operating results of FH have been split between each of our operating segments, Energy, Aerospace & Defense, and Industrial based upon the end markets of the sub-businesses within FH.

The purchase price allocation is based upon a preliminary valuation of assets and liabilities that was prepared with assistance from a third party valuation specialist. The estimates and assumptions are subject to change as we obtain additional information during the measurement period (up to one year from the acquisition date). The purchase accounting is expected to be finalized in the third quarter of 2018. The assets and liabilities pending finalization include the valuation of acquired tangible and intangible assets, certain operating liabilities, and the evaluation of income taxes. Differences between the preliminary and final valuation could have a material impact on our future results of operations and financial position.

The following table summarizes the preliminary fair value of the assets acquired and the liabilities assumed, at the date of acquisition:

(in thousands)
Cash and cash equivalents (a)	$	63,403
Restricted cash (a)	1,911
Accounts receivable	76,571
Inventory	78,280
Prepaid expenses and other current assets	16,937
Deferred income taxes	41,454
Property, plant and equipment	122,242
Identifiable intangible assets	383,000
Other assets	338
Accounts payable	(46,045		)
Cash payable to seller (a)	(65,314		)
Accrued and other expenses	(63,845		)
Long-term post-retirement liabilities	(143,067		)
Other long-term liabilities	(11,215		)
Deferred tax liabilities	(52,618		)
Total identifiable net assets	$	402,032
Goodwill	301,855
Total purchase price	$	703,887
Consideration
Base purchase price	$	542,000
Net working capital and other purchase accounting adjustments	18,121
Common Stock	143,766
Total	$	703,887
(a) cash acquired to be returned to seller.

During the first quarter of 2018, we identified certain uncollectible accounts receivables ($1.4 million), obsolete inventories ($0.4 million), and obligations ($0.7 million) which required further adjustment to our December 11, 2017 opening balance sheet. The identified adjustments have been recorded against our FH opening balance sheet during the first quarter of 2018.

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The excess of purchase price paid over the fair value of FH's net assets was recorded to goodwill, which is primarily attributable to projected future profitable growth, market penetration, as well as an expanded customer base for the Fluid Handling businesses acquired. Approximately 50% of goodwill is projected to be deductible for income tax purposes.

The FH acquisition resulted in the preliminary identification of the following identifiable intangible assets (in thousands):

	Original Estimate		Measurement Period Adjustment			Fair Value		Weighted average amortization period (in years)
Customer relationships	$	215,000	$	(7,000	)	$	208,000	19
Existing technologies	107,000		6,000			113,000		20
Trade names	44,000		2,000			46,000		Indefinite-life
Backlog	22,000		(6,000		)	16,000		4
Total intangible assets	$	388,000	$	(5,000	)	$	383,000

During the first quarter of 2018, with the help of third party specialists, we adjusted the fair value of the acquired FH intangibles based upon better information regarding discount rates, royalty rates, and more granular business forecasts that was determinable at the time of acquisition. The revised fair value of acquired FH intangibles have been recorded against our FH opening balance sheet during the first quarter of 2018.

The fair value of the intangible assets was based on variations of the income approach, which estimates fair value based on the present value of cash flows that the assets are expected to generate. These approaches included the relief-from-royalty method and multi-period excess earnings method, depending on the intangible asset being valued. Customer relationships, aftermarket backlog, and existing technology are amortized on a cash flow basis which reflects the economic benefit consumed. The trade name was assigned an indefinite life based on the Company’s intention to keep the trade names for an indefinite period of time. Refer to Note 6, Goodwill and Intangibles, net for future expected amortization to be recorded.

(6) Goodwill and Intangibles, net

The following table shows goodwill by segment as of December 31, 2017 and April 1, 2018 (in thousands):

	Energy			Aerospace & Defense			Industrial		Total
Goodwill as of December 31, 2017	$	154,058		$	62,548		$	289,156	$	505,762
Adjustments to preliminary purchase price allocation	(5,406		)	(5,711		)	19,628		8,511
Currency translation adjustments	2,726			39			3,119		5,884
Goodwill as of April 1, 2018	$	151,378		$	56,876		$	311,903	$	520,157

During the first quarter of 2018, we identified certain uncollectible accounts receivables, obsolete inventories, and obligations which required further adjustment to our December 11, 2017 opening balance sheet. The identified adjustments have been recorded against our FH opening balance sheet during the first quarter of 2018 and are reflected in the line "adjustments to preliminary purchase price allocation" listed in the table above.

During the first quarter ended April 1, 2018, we realigned our organizational structure under three reportable business segments: Energy, Aerospace & Defense and Industrial. Our realignment was a triggering event for goodwill impairment testing. During the quarter we evaluated our reporting units for goodwill impairment and determined no impairments existed.

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The table below presents gross intangible assets and the related accumulated amortization as of April 1, 2018 (in thousands):

	Gross Carrying Amount		Accumulated Amortization
Patents	$	5,399	$	(5,399	)
Non-amortized intangibles (primarily trademarks and trade names)	86,335		—
Customer relationships	314,596		(47,269		)
Order backlog	23,823		(10,389		)
Acquired technology	141,426		(11,766		)
Other	5,410		(5,139		)
Total	$	576,989	$	(79,962	)
Net carrying value of intangible assets	$	497,027

The table below presents estimated remaining amortization expense for intangible assets recorded as of April 1, 2018 (in thousands):

	Remainder of 2018		2019		2020		2021		2022		After 2022
Estimated amortization expense	$	36,975	$	50,096	$	45,903	$	43,655	$	38,221	$	195,842

(7) Segment Information

Our Chief Operating Decision Maker evaluates segment operating performance using segment operating income. Segment operating income is defined as GAAP operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to December 31, 2011, the impact of restructuring related inventory write-offs, impairment charges and special charges or gains. The Company also refers to this measure as adjusted operating income. The Company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitate comparison of performance for determining incentive compensation achievement. The following table presents certain reportable segment information (in thousands):

As of December 31, 2017 we organized our reporting structure into three segments: CIRCOR Energy ("Energy segment" or "Energy"), CIRCOR Advanced Flow Solutions ("Advanced Flow Solutions segment" or "AFS"), and CIRCOR Fluid Handling ("Fluid Handling"). 

Effective January 1, 2018, we realigned our businesses with end markets to simplify the business, clarify customer and channel relationships and help us exploit growth synergy opportunities across the organization. The new reporting segments are Energy, Aerospace & Defense and Industrial. The Energy segment will remain unchanged except for the addition of reliability services, a business from the Fluid Handling acquisition. The Aerospace & Defense segment will include the Aerospace business out of our AFS segment, as well as the Pumps Defense business of Fluid Handling. The Industrial segment will include the remaining portion of Fluid Handling as well as the industrial solutions and power and process businesses that were part of AFS. In addition, a number of smaller product lines were realigned as part of this change to better manage and serve our customers. The current and prior periods are reported under the new segments.

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	Three Months Ended
	April 1, 2018			April 2, 2017
Net revenues
Energy	$	99,972		$	76,210
Aerospace & Defense	58,477			41,601
Industrial	117,131			27,397
Consolidated net revenues	$	275,580		$	145,208
Segment Income
Energy - Segment Operating Income	$	5,696		$	6,407
Aerospace & Defense - Segment Operating Income	8,931			3,784
Industrial - Segment Operating Income	12,948			4,384
Corporate expenses	(7,802		)	(5,479		)
Subtotal	19,773			9,096
Restructuring charges, net	9,615			1,458
Special charges (recoveries), net	2,831			(2,268		)
Special and restructuring charges (recoveries), net	12,446			(810		)
Restructuring related inventory charges	473			—
Amortization of inventory step-up	6,600			—
Acquisition amortization	11,797			2,552
Acquisition depreciation	1,837			—
Restructuring and other cost, net	20,707			2,552
Consolidated Operating (Loss) Income	(13,380		)	7,354
Interest expense, net	11,801			1,669
Other (income) expense, net	(1,861		)	225
(Loss) Income from operations before income taxes	$	(23,320	)	$	5,460
Capital expenditures
Energy	$	3,345		$	791
Aerospace & Defense	944			505
Industrial	3,624			453
Corporate	276			483
Consolidated capital expenditures	$	8,189		$	2,232
Depreciation and amortization
Energy	4,201			$	3,071
Aerospace & Defense	2,793			1,131
Industrial	12,440			2,340
Corporate	229			348
Consolidated depreciation and amortization	19,663			$	6,890
Identifiable assets	April 1, 2018			April 2, 2017
Energy	$	976,000		$	626,183
Aerospace & Defense	348,291			196,681
Industrial	1,327,094			241,985
Corporate	(723,278		)	(249,896		)
Consolidated identifiable assets	$	1,928,107		$	814,953

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The total assets for each reportable segment have been reported as the Identifiable Assets for that segment, including inter-segment intercompany receivables, payables and investments in other CIRCOR companies. Identifiable assets reported in Corporate include both corporate assets, such as cash, deferred taxes, prepaid and other assets, fixed assets, as well as the elimination of all inter-segment intercompany assets. The elimination of intercompany assets results in negative amounts reported in Corporate for Identifiable Assets. Corporate Identifiable Assets excluding intercompany assets were $17.0 millionand $49.0 million as of April 1, 2018 and April 2, 2017, respectively.

(8) Financial Instruments

Fair Value

The company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy based on the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level One: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level Two: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level Three: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying amounts of cash and cash equivalents, trade receivables and trade payables approximate fair value because of the short maturity of these financial instruments. Cash equivalents are carried at cost which approximates fair value at the balance sheet date and is a Level 1 financial instrument. As of April 1, 2018 and December 31, 2017, the outstanding balance of the Company’s debt approximated fair value based on current rates available to the Company for debt of the same maturity and is a Level 2 financial instrument.

(9) Guarantees and Indemnification Obligations

As permitted under Delaware law, we have agreements whereby we indemnify certain of our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. However, we have directors’ and officers’ liability insurance policies that insure us with respect to certain events covered under the policies and should enable us to recover a portion of any future amounts paid under the indemnification agreements. We have no liabilities recorded from those agreements as of April 1, 2018.

We record provisions for the estimated cost of product warranties, primarily from historical information, at the time product revenue is recognized. We also record provisions with respect to any significant individual warranty issues as they arise. While we engage in extensive product quality programs and processes, our warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to us. Should actual product failure rates, utilization levels, material usage, service delivery costs or supplier warranties on parts differ from our estimates, revisions to the estimated warranty liability would be required.

The following table sets forth information related to our product warranty reserves for the three months ended April 1, 2018 (in thousands):

Balance beginning December 31, 2017	$	4,623
Provisions	618
Claims settled	(809		)
Currency translation adjustment	67
Balance ending April 1, 2018	$	4,499

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Warranty obligations decreased$0.1 million from $4.6 million as of December 31, 2017 to $4.5 million as of April 1, 2018, primarily driven by net claims settled and quarterly provisions within our Industrial segment.

(10) Commitments and Contingencies

Asbestos-related product liability claims continue to be filed against two of our subsidiaries: Spence Engineering Company, Inc. (“Spence”), the stock of which we acquired in 1984; and CIRCOR Instrumentation Technologies, Inc. (f/k/a Hoke, Inc.) (“Hoke”), the stock of which we acquired in 1998. Due to the nature of the products supplied by these entities, the markets they serve and our historical experience in resolving these claims, we do not expect that these asbestos-related claims will have a material adverse effect on the financial condition, results of operations or liquidity of the Company.

We are subject to various legal proceedings and claims pertaining to matters such as product liability or contract disputes, including issues arising under certain customer contracts with aerospace and defense customers. We are also subject to other proceedings and governmental inquiries, inspections, audits or investigations pertaining to issues such as tax matters, patents and trademarks, pricing, business practices, governmental regulations, employment and other matters. Although the results of litigation and claims cannot be predicted with certainty, we expect that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on our business, financial condition, results of operations or liquidity.

On February 21, 2018, the Company entered into a mediated settlement regarding a wage and hour action in California by a former employee. In October 2016, the plaintiff alleged non-compliance with California State labor law, including missed or late meal breaks, for hourly employees of CIRCOR Aerospace, Inc. in Corona, California. The total settlement amount of $2.4 million has been recorded as a liability as of April 1, 2018 and December 31, 2017.  This settlement resolves all wage/hour claims by all potentially affected employees through the settlement date and is expected to be approved by the California Superior Court during the second half of 2018.

Standby Letters of Credit

We execute standby letters of credit, which include bid bonds and performance bonds, in the normal course of business to ensure our performance or payments to third parties. The aggregate notional value of these instruments was $85.9 million at April 1, 2018. We believe that the likelihood of demand for a significant payment relating to the outstanding instruments is remote. These instruments generally have expiration dates ranging from less than 1 month to 5 years from April 1, 2018.

The following table contains information related to standby letters of credit instruments outstanding as of April 1, 2018 (in thousands):

Term Remaining	Maximum Potential Future Payments
0–12 months	$	56,698
Greater than 12 months	29,165
Total	$	85,863

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(11) Retirement Plans

The following table sets forth the components of total net periodic benefit cost (income) of the Company’s defined benefit pension plans and other post-retirement employee benefit plans (in thousands):

	Three Months Ended
	April 1, 2018			April 2, 2017
Pension Benefits - U.S. Plans
Service cost	$	—		$	—
Interest cost	1,762			426
Expected return on plan assets	(3,771		)	(575		)
Amortization	38			184
Net periodic benefit (income) cost	$	(1,971	)	$	35
Pension Benefits - Non-U.S. Plans
Service cost	$	774		N/A
Interest cost	552			N/A
Expected return on plan assets	(258		)	N/A
Amortization	—			N/A
Net periodic benefit cost	$	1,068		N/A
Other Post-Retirement Benefits
Service cost	$	—		N/A
Interest cost	86			N/A
Amortization	—			N/A
Net periodic benefit cost	$	86		N/A
N/A - no international pension plans or other post-retirement benefits

The periodic benefit service costs are included in the selling, general, and administrative costs, while the remaining net periodic benefit costs are included in other (income) expense, net in our consolidated statements of income for the three months ending April 1, 2018 and April 2, 2017, respectively.

(12) Income Taxes

As of April 1, 2018 and December 31, 2017, we had $2.6 million and $3.0 million of unrecognized tax benefits, respectively, of which $2.5 million and $2.6 million, respectively, would affect our effective tax rate if recognized in any future period.

The Company files income tax returns in U.S. federal, state and local jurisdictions and in foreign jurisdictions. The Company is no longer subject to examination by the Internal Revenue Service (the "IRS") for years prior to 2014 and is no longer subject to examination by the tax authorities in foreign and state jurisdictions prior to 2006. The Company is currently under examination for income tax filings in various foreign jurisdictions.

The Company has a net U.S. deferred tax asset and a net foreign deferred tax liability. Due to uncertainties related to our ability to utilize certain foreign deferred income tax assets, we maintained a total valuation allowance of $23.1 million at April 1, 2018 and $22.1 million at December 31, 2017. The valuation allowance is based on estimates of income in each of the jurisdictions in which we operate and the period over which our deferred tax assets will be recoverable. If future results of operations exceed our current expectations, our existing tax valuation allowances may be adjusted, resulting in future tax benefits. Alternatively, if future results of operations are less than expected, future assessments may result in a determination that some or all of the deferred tax assets are not realizable. Consequently, we may need to establish additional tax valuation allowances for all or a portion of the deferred tax assets, which may have a material adverse effect on our business, results of operations and financial condition.

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In connection with the enactment of the US Tax Cuts and Jobs Act (the “Tax Act”) on December 22, 2017, we recorded provisional estimates for certain provisions of the Tax Act as of December 31, 2017. We have not made any changes to these provisional estimates as of April 1, 2018.

In addition, the Tax Act created a new requirement that certain income, such as Global Intangible Low-Taxed Income (“GILTI”), earned by a controlled foreign corporation must be included in the gross income of its U.S. shareholder, effective January 1, 2018. The Tax Act also created the base erosion anti-abuse tax (“BEAT”), a new minimum tax, effective January 1, 2018. We have included the impact of the GILTI provision in the calculation of our 2018 effective tax rate. We do not believe that BEAT has any impact to us.

(13) Share-Based Compensation

As of April 1, 2018, there were 966,861 stock options and 352,861 Restricted Stock Unit Awards ("RSU Awards") and Restricted Stock Unit Management Stock Plans ("RSU MSPs") Awards outstanding. In addition, there were 336,646 shares available for grant under the 2014 Stock Option and Incentive Plan (the "2014 Plan") as of April 1, 2018.

During the three months ended April 1, 2018, we granted 127,704 stock options compared with 142,428 stock options granted during the three months ended April 2, 2017.

The average fair value of stock options granted during the first three months of 2018 and 2017 was $14.68 and $19.36, respectively, and was estimated using the following weighted-average assumptions:

	April 1, 2018		April 2, 2017
Risk-free interest rate	2.5	%	1.7	%
Expected life (years)	4.4		4.5
Expected stock volatility	37.2	%	35.1	%
Expected dividend yield	—	%	0.3	%

For additional information regarding the historical issuance of stock options, refer to our Annual Report on Form 10-K for the year ended December 31, 2017.

During the three months ended April 1, 2018 and April 2, 2017, we granted 143,198 and 53,855 RSU Awards with approximate fair values of $42.61 and $60.99 per RSU Award, respectively. During the first three months of 2018 and 2017, we granted performance-based RSUs as part of the overall mix of RSU Awards. These performance-based RSUs include metrics for achieving Return on Invested Capital and Adjusted Operating Margin with target payouts ranging from 0% to 200%. Of the 143,198 RSU Awards granted during the three months ended April 1, 2018, 48,080 are performance-based RSU Awards. This compares to 31,369 performance-based RSU Awards granted during the three months ended April 2, 2017.

RSU MSPs totaling 34,937 and 26,726 with per unit discount amounts representing fair values of $14.06 and $20.13 were granted during the three months ended April 1, 2018 and April 2, 2017, respectively.

Compensation expense related to our share-based plans for the three months ended April 1, 2018 and April 2, 2017 was $1.3 million and $0.7 million, respectively. The primary reason for lower expense during 2017 relates to a change in estimate of $0.7 million for anticipated below-threshold achievement of performance-based RSUs granted in February 2015. Compensation expense for both periods was recorded as selling, general and administrative expenses. As of April 1, 2018, there was $14.3 million of total unrecognized compensation costs related to our outstanding share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.5 years.

The weighted average contractual term for stock options outstanding and options exercisable as of April 1, 2018 was 5.3 years and 4.7 years, respectively. The aggregate intrinsic value of stock options exercised during the three months ended April 1, 2018 was $0.1 million and the aggregate intrinsic value of stock options outstanding and options exercisable as of April 1, 2018 was $1.0 million and $0.7 million, respectively.

The aggregate intrinsic value of RSU Awards settled during the three months ended April 1, 2018 was $1.0 million and the aggregate intrinsic value of RSU Awards outstanding and RSU Awards vested and deferred as of April 1, 2018 was $11.7 million and $0.1 million, respectively.

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The aggregate intrinsic value of RSU MSPs settled during the three months ended April 1, 2018 was $0.4 million and the aggregate intrinsic value of RSU MSPs outstanding and RSU MSPs vested and deferred as of April 1, 2018 was $0.8 million and less than $0.1 million, respectively.

As of April 1, 2018, there were 53,282 Cash Settled Stock Unit Awards outstanding compared to 40,469 as of December 31, 2017. During the three months ended April 1, 2018, the aggregate cash used to settle Cash Settled Stock Unit Awards was $0.2 million. As of April 1, 2018, we had $0.8 million of accrued expenses in current liabilities associated with these Cash Settled Stock Unit Awards compared with $0.9 million as of December 31, 2017. Cash Settled Stock Unit Award related compensation costs (recoveries) for the three months ended April 1, 2018 and April 2, 2017 was$0.1 millionand less than $0.1 million, respectively, and was recorded as selling, general, and administrative expenses.

(14) Accumulated Other Comprehensive Loss

The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of shareholders' equity, for the three months ended April 1, 2018 (in thousands):

	Foreign Currency Translation Adjustments			Pension, net			Total
Balance as of December 31, 2017	$	(28,584	)	$	(8,146	)	$	(36,730	)
Other comprehensive income	8,341			—			8,341
Balance as of April 1, 2018	$	(20,243	)	$	(8,146	)	$	(28,389	)

(15) (Loss) Earnings Per Common Share ("EPS")

(in thousands, except per share amounts)	Three Months Ended
	April 1, 2018							April 2, 2017
	Net Loss			Shares	Per Share Amount			Net Income		Shares	Per Share Amount
Basic EPS	$	(17,441	)	19,806	$	(0.88	)	$	4,773	16,458	$	0.29
Dilutive securities, common stock options	—			—	—			—		233	—
Diluted EPS	$	(17,441	)	19,806	$	(0.88	)	$	4,773	16,691	$	0.29

Stock options, RSU Awards, and RSU MSPs covering 126,926 and 178,186 shares of common stock, for the three months ended April 1, 2018 and April 2, 2017, respectively, were not included in the computation of diluted EPS because their effect would be anti-dilutive.

(16) Special & Restructuring Charges (Recoveries), net

Special and Restructuring Charges (Recoveries), net

Special and restructuring charges, net consist of restructuring costs (including costs to exit a product line or program) as well as certain special charges such as significant litigation settlements and other transactions (charges or recoveries) that are described below. All items described below are recorded in Special and restructuring charges, net on our consolidated statements of (loss) income. Certain other special and restructuring charges such as inventory related items may be recorded in cost of revenues given the nature of the item.

The table below (in thousands) summarizes the amounts recorded within the special and restructuring charges (recoveries), net line item on the condensed consolidated statements of (loss) income for the three months ended April 1, 2018 and April 2, 2017:

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	Special & Restructuring Charges (Recoveries), net
	Three Months Ended
	April 1, 2018		April 2, 2017
Special charges (recoveries), net	$	2,831	$	(2,268	)
Restructuring charges, net	9,615		1,458
Total special and restructuring charges (recoveries), net	$	12,446	$	(810	)

Special Charges (Recoveries), net

The table below (in thousands) outlines the special charges, net recorded for the three months ended April 1, 2018:

	Special Charges, net
	For the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	376	$	—	$	—	$	—	$	376
Acquisition related charges	—		—		—		2,455		2,455
Total special charges, net	$	376	$	—	$	—	$	2,455	$	2,831

Acquisition related charges: On December 11, 2017, we acquired FH. In connection with our acquisition, we recorded $2.5 million during the first quarter of 2018 related to internal and external professional fee costs to integrate the FH business into our legacy framework.

Brazil Closure: On November 3, 2015, our Board of Directors approved the closure and exit of our Brazil manufacturing operations due to the economic realities in Brazil and the ongoing challenges with our only significant end customer, Petrobras.

CIRCOR Brazil reported substantial operating losses every year since it was acquired in 2011 while the underlying market

conditions and outlook deteriorated. In connection with the closure, we recorded $0.4 million of charges within the Energy segment during the three months ended April 1, 2018, which relates to losses incurred subsequent to our closure of manufacturing operations during the first quarter of 2016.

The table below (in thousands) outlines the special charges (recoveries), net recorded for the three months ended April 2, 2017:

	Special (Recoveries) Charges, net
	For the three months ended April 2, 2017
	Energy			Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	232		$	—	$	—	$	—	$	232
Contingent consideration revaluation	(2,500		)	—		—		—		(2,500		)
Total special recoveries, net	$	(2,268	)	$	—	$	—	$	—	$	(2,268	)

Brazil closure: In connection with the closure, we recorded $0.2 million of charges within the Energy segment during the three months ended April 2, 2017.

Contingent Consideration Revaluation: The fair value of the Refinery Valves earn-out decreased $2.5 million from $12.2 million as of December 31, 2016 to $9.7 million as of April 2, 2017. The change in fair value was recorded as a special gain during the three months ended April 2, 2017.

Restructuring Charges (Recoveries), net

The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the three months ended April 1, 2018 and April 2, 2017, respectively. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below.

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	Restructuring Charges (Recoveries), net
	As of and for the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	1,481	$	82	$	—	$	—	$	1,563
Employee related expenses, net	6,843		—		1,209		—		8,052
Total restructuring charges, net	$	8,324	$	82	$	1,209	$	—	$	9,615
Accrued restructuring charges as of December 31, 2017									$	1,586
Total year to date charges, net (shown above)									9,615
Charges paid / settled, net									(4,897		)
Accrued restructuring charges as of April 1, 2018									$	6,304

We expect to make payment or settle the majority of the restructuring charges accrued as of April 1, 2018 during the second half of 2018.

	Restructuring Charges / (Recoveries)
	As of and for the three months ended April 2, 2017
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	850	$	107	$	—	$	—	$	957
Employee related expenses	172		329		—		—		501
Total restructuring charges, net	$	1,022	$	436	$	—	$	—	$	1,458
Accrued restructuring charges as of December 31, 2016									$	1,618
Total year to date charges, net (shown above)									1,458
Charges paid / settled, net									(1,658		)
Accrued restructuring charges as of April 2, 2017									$	1,418

Restructuring Programs Summary

As specific restructuring programs are announced, the amounts associated with that particular action may be recorded in periods other than when announced to comply with the applicable accounting rules. For example, total cost associated with 2017 Actions (as discussed below) will be recorded in 2017 and 2018. The amounts shown below reflect the total cost for that restructuring program.

During 2018 and 2017, we initiated certain restructuring activities, under which we continued to simplify our business ("2018 Actions and "2017 Actions", respectively). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities.

Charges associated with the 2018 Actions were recorded during the first quarter of 2018. Charges associated with the 2017 Actions were finalized in 2017.

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	2018 Actions Restructuring Charges (Recoveries), net as of April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses - incurred to date	$	1,449	$	—	$	—	$	—	$	1,449
Employee related expenses - incurred to date	6,827		—		1,209		—		8,036
Total restructuring related special charges - incurred to date	$	8,276	$	—	$	1,209	$	—	$	9,485

Additional Restructuring Charges

In conjunction with the restructuring action noted above, we incurred certain inventory costs that are recorded in cost of revenues instead of special and restructuring charges. During the first quarter of 2018, we recorded $0.5 million of inventory related restructuring charges within our Energy segment for restructuring actions with our Reliability Services business.

(17) Subsequent Event

Effective April 12, 2018, CIRCOR International, Inc. (the “Company”) entered into an interest rate swap pursuant to an International Swaps and Derivatives Association ("ISDA") Master Agreement with Citizens Bank, National Association.  The four-year swap has a fixed notional value of $400.0 million with a 1% LIBOR floor and a maturity date of April 12, 2022. The fixed rate of interest paid by the Company is comprised of our current credit spread of 350 basis points plus 2.6475% for a total interest rate of 6.1475%. The ISDA Master Agreement, together with its related schedules, contain customary representations, warranties and covenants. This hedging agreement was entered into to mitigate the interest rate risk inherent in the Company’s variable rate debt and is not for speculative trading purposes.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”). The words “may,” “hope,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters, identify forward-looking statements. We believe that it is important to communicate our future expectations to our stockholders, and we, therefore, make forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that we are not able to accurately predict or control and our actual results may differ materially from the expectations we describe in our forward-looking statements. Forward-looking statements, including statements about the integration and impact of our recent acquisition of FH, involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, changes in the price of and demand for oil and gas in both domestic and international markets, our ability to successfully integrate acquired businesses, as contemplated, the possibility that expected benefits related to the FH acquisition may not materialize as expected, any adverse changes in governmental policies, variability of raw material and component pricing, changes in our suppliers’ performance, fluctuations in foreign currency exchange rates, changes in tariffs or other taxes related to doing business internationally, our ability to hire and retain key personnel, our ability to operate our manufacturing facilities at efficient levels including our ability to prevent cost overruns and reduce costs, our ability to generate increased cash by reducing our working capital, our prevention of the accumulation of excess inventory, our ability to successfully implement our restructuring or simplification strategies, fluctuations in interest rates, our ability to successfully defend product liability actions, as well as the uncertainty associated with the current worldwide economic conditions and the continuing impact on economic and financial conditions in the United States and around the world, including as a result of natural disasters, terrorist attacks, current Middle Eastern conflicts and related matters. We advise you to read further about these and other risk factors set forth in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2017, which is filed with the Securities and Exchange Commission ("SEC") and is available on the SEC's website at www.sec.gov.We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Company Overview

We design, manufacture and market differentiated technology products and sub-systems for markets including industrial, oil & gas, aerospace and defense, and commercial marine. CIRCOR has a diversified flow and motion control product portfolio with recognized, market-leading brands that fulfill its customers’ mission critical needs.

As of December 31, 2017 we organized our reporting structure into three segments: CIRCOR Energy ("Energy segment" or "Energy"), CIRCOR Advanced Flow Solutions ("Advanced Flow Solutions segment" or "AFS"), and CIRCOR Fluid Handling ("Fluid Handling" or "FH"). 

Effective January 1, 2018, we realigned our business segments with end markets to simplify the business, clarify customer and channel relationships and help us exploit growth synergy opportunities across the organization. The new reporting segments are Energy, Aerospace & Defense and Industrial. The Energy segment remains unchanged except for the addition of the Reliability Services business ("Reliability Services"), a business from the FH acquisition. The Aerospace & Defense segment includes the Aerospace business out of our AFS segment, as well as the Pumps Defense business of FH. The Industrial segment includes the remaining portion of FH as well as the Industrial Solutions and Power and Process businesses that were part of AFS. In addition, a number of smaller product lines were realigned as part of this change to better manage and serve our customers. The current and prior periods are reported under the new segments.

Basis of Presentation

All significant intercompany balances and transactions have been eliminated in consolidation.

We operate and report financial information using a fiscal year ending December 31. The data periods contained within our Quarterly Reports on Form 10-Q reflect the results of operations for the 13-week, 26-week and 39-week periods which generally end on the Sunday nearest the calendar quarter-end date.

Critical Accounting Policies

Critical accounting policies are those that are both important to the accurate portrayal of a company’s financial condition and results and require subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. There have been no significant changes from the methodology applied by management for critical accounting estimates previously disclosed in our most recent Annual Report on Form 10-K, expect as updated by Note 2 with respect to newly adopted accounting standards. The expenses and accrued liabilities or allowances related to certain of our accounting policies are initially based on our best estimates at the time of original entry in our accounting records. Adjustments are recorded when our actual experience, or new information concerning our expected experience, differs from underlying initial estimates. These adjustments could be material if our actual or expected experience were to change significantly in a short period of time. We make frequent comparisons of actual experience and expected experience in order to mitigate the likelihood of material adjustments.

Results of Operations

First Quarter 2018 Compared With First Quarter 2017

Consolidated Operations

	Three Months Ended
(in thousands)	April 1, 2018		April 2, 2017		Total Change		Acquisitions		Operations			Foreign Exchange
Net Revenues
Energy	$	99,972	$	76,210	$	23,762	$	14,731	$	6,750		$	2,280
Aerospace & Defense	58,477		41,601		16,876		13,690		1,057			2,130
Industrial	117,131		27,397		89,734		89,453		(1,521		)	1,803
Consolidated Net Revenues	$	275,580	$	145,208	$	130,372	$	117,874	$	6,286		$	6,213

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Net revenues for the three months ended April 1, 2018 were $275.6 million, an increase of $130.4 million as compared to the three months ended April 2, 2017, primarily driven by our December 2017 acquisition of the Fluid Handling business, organic growth within our Energy and Aerospace & Defense businesses and, favorable foreign currency translation, partially offset by operational declines within our Industrial segment.

Segment Results

The Chief Operating Decision Maker ("CODM") is the function that allocates the resources of the enterprise and assesses the performance of the Company's reportable operating segments. CIRCOR has determined that the CODM is solely comprised of its Chief Executive Officer ("CEO"), as the CEO has the ultimate responsibility for CIRCOR strategic decision-making and resource allocation.

Our CODM evaluates segment operating performance using segment operating income. Segment operating income is defined as GAAP operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to December 31, 2011, the impact of restructuring related inventory write-offs, impairment charges and special charges or gains. The Company also refers to this measure as adjusted operating income. The Company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitate comparison of performance for determining incentive compensation achievement. The following table presents certain reportable segment information (in thousands):

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	Three Months Ended
	April 1, 2018			April 2, 2017
Net revenues
Energy	$	99,972		$	76,210
Aerospace & Defense	58,477			41,601
Industrial	117,131			27,397
Consolidated net revenues	$	275,580		$	145,208
Segment Income
Energy - Segment Operating Income	5,696			6,407
Aerospace & Defense - Segment Operating Income	8,931			3,784
Industrial - Segment Operating Income	12,948			4,384
Corporate expenses	(7,802		)	(5,479		)
Subtotal	19,773			9,096
Restructuring charges, net	9,615			1,458
Special charges (recoveries), net	2,831			(2,268		)
Special and restructuring charges (recoveries), net (1)	12,446			(810		)
Restructuring related inventory charges (1)	473			—
Amortization of inventory step-up	6,600			—
Acquisition amortization (2)	11,797			2,552
Acquisition depreciation (2)	1,837			—
Restructuring and other cost, net	20,707			2,552
Consolidated Operating (Loss) Income	(13,380		)	7,354
Interest expense, net	11,801			1,669
Other (income) expense, net	(1,861		)	225
(Loss) income from operations before income taxes	$	(23,320	)	$	5,460
Consolidated Operating Margin	(5		)%	5		%
(1) See Special & Restructuring Charges (Recoveries), net in Note 16 to the condensed consolidated financial statements for additional details.
(2) Acquisition amortization and depreciation is recorded in either cost of revenues or selling, general, and administrative expenses depending upon the nature of the underlying asset.

Energy Segment

	Three Months Ended
(in thousands, except percentages)	April 1, 2018			April 2, 2017			Change
Net Revenues	$	99,972		$	76,210		$	23,762
Segment Operating Income	5,696			6,407			(711		)
Segment Operating Margin	5.7		%	8.4		%

Energy segment net revenues increased $23.8 million, or 31%, for the three months ended April 1, 2018 compared to the three months ended April 2, 2017. The increase was primarily driven by the energy-related Reliability Services business, which we acquired with the FH acquisition (+19%), our North American distributed valves business (+8%), our Refinery Valves business (+4%), and favorable foreign currency fluctuations (+3%), partially offset by declines in our large international projects business (-3%). Energy segment orders increased $29.8 million, or 30%, for the three months ended April 1, 2018 compared to the three months ended April 2, 2017, primarily driven by capital project and maintenance, repair, and overhaul orders within our Refinery Valves business (+27%), Reliability Services business (+17%), and our large international projects business (+5%), partially offset by lower orders within our North American Distributed Valves business (-18%).

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Segment operating income decreased $0.7 million, or 11%, to $5.7 million for the three months ended April 1, 2018 compared to $6.4 million for the three months ended April 2, 2017. The decrease in segment operating income was primarily driven by increased costs in our North American Distributed Valves business as our Oklahoma City facility dealt with incremental costs to meet higher demand and increase manpower in a difficult labor market (-13%). In addition, operating income declined in our Instrumentation and Sampling businesses (-11%). These decreases were partially offset by improvements within our Refinery Valves business (+13%).

Aerospace & Defense Segment

	Three Months Ended
(in thousands, except percentages)	April 1, 2018			April 2, 2017			Change
Net Revenues	$	58,477		$	41,601		$	16,876
Segment Operating Income	8,931			3,784			5,147
Segment Operating Margin	15.3		%	9.1		%

Aerospace & Defense segment net revenues increased by $16.9 million, or 41%, to $58.5 million for the three months ended April 1, 2018 compared to the three months ended April 2, 2017. The increase was primarily driven by the defense-related business ("Pumps Defense") acquired in the FH acquisition (+33%), operational increases in our United States ("U.S.") Government defense business (+9%), and favorable foreign currency fluctuations (+5%), partially offset by declines in our French business (-5%). Aerospace & Defense segment orders increased $3.4 million, or 6%, for the three months ended April 1, 2018 compared to the three months ended April 2, 2017, primarily driven by our Pumps Defense business (+21%), partially offset by declines in our U.S. Government defense business (-19%) as we recorded large orders for the Joint Strike Fighter and the Multi-Mission Maritime Aircraft programs in the prior year. The Joint Strike Fighter program orders are now expected in the fourth quarter of 2018.

Segment operating income increased $5.1 million, or 136%, to $8.9 million for the three months ended April 1, 2018 compared to the three months ended April 2, 2017. The increase in operating income was primarily driven by the Pumps Defense business (+76%), operational improvements and price increases within our U.S. Government defense business (+34%), lower headquarter costs (+17%), and favorable foreign currency fluctuations (+9%).

Industrial Segment

	Three Months Ended
(in thousands, except percentages)	April 1, 2018			April 2, 2017			Change
Net Revenues	$	117,131		$	27,397		$	89,734
Segment Operating Income	12,948			4,384			8,564
Segment Operating Margin	11.1		%	16.0		%

Industrial segment net revenues increased $89.7 million, or 328%, to $117.1 million for the three months ended April 1, 2018 compared to the three months ended April 2, 2017. The increase was primarily driven by the European and North American Pumps Businesses ("Pumps Businesses") acquired in the FH acquisition (327%). The European Pumps business saw a significant increase in demand, especially for the commercial marine market, offset in part by lower deliveries to North American pump customers. Industrial segment orders increased $109.0 million, or 394%, for the three months ended April 1, 2018 compared to the three months ended April 2, 2017, mainly due to the acquisition of Fluid Handling.

Segment operating income increased $8.6 million, or 195%, for the three months ended April 1, 2018 compared to the three months ended April 2, 2017, primarily driven by the Pumps Businesses (+218%) and favorable foreign currency fluctuations (+6%). These increases were partially offset by operational declines in our European Valves businesses (-23%) and our North America Valves businesses (-6%).

Corporate Expenses

Corporate expenses were $7.8 million for the three months ended April 1, 2018 compared to $5.5 million for the three months ended April 2, 2017 primarily driven by higher variable compensation, professional fees, and integration costs.

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Special and Restructuring Charges (Recoveries), net

During the three months ended April 1, 2018 and April 2, 2017, the Company recorded a net charge of $12.4 million and a net recovery of $0.8 million, respectively, within our condensed consolidated statements of (loss) income caption "Special and restructuring charges (recoveries), net". These special and restructuring charges (recoveries), net are described in further detail in our notes to the condensed consolidated financial statements.

Restructuring-related inventory charges

During the three months ended April 1, 2018, the Company recorded a charge of $0.5 million within our condensed consolidated statements of (loss) income caption "Cost of Revenues". These charges are described in further detail in our Special & Restructuring Charges (Recoveries), net note to the condensed consolidated financial statements.

Amortization of inventory step-up

During the three months ended April 1, 2018, the Company recorded a charge of $6.6 million within our condensed consolidated statements of (loss) income caption "Cost of Revenues". This charge relates to the amortization of the step-up to fair value of inventory acquired as part of our FH acquisition.

Acquisition amortization

During the three months ended April 1, 2018 and April 2, 2017, the Company recorded amortization expense of $11.8 million and $2.6 million, respectively, for intangibles acquired in acquisitions completed subsequent to December 31, 2011. These amortization expenses are recorded in either cost of revenues or selling, general, and administrative expenses depending upon the nature of the underlying asset.

Acquisition depreciation

During the three months ended April 1, 2018, the Company recorded depreciation expense of $1.8 million related to the step-up to fair value of the plant, property, and equipment related to the FH acquisition.

Interest Expense, Net

Interest expense increased$10.1 million to $11.8 million in the three months ended April 1, 2018 compared to the three months ended April 2, 2017. The change in interest expense was primarily due to higher outstanding debt balances as a result of our purchase of FH during the fourth quarter of 2017.

Other (Income) Expense, Net

During the three months ended April 1, 2018, we had other income, net of $1.9 million, as compared to other expense, net of $0.2 million for the three months ended April 2, 2017. The difference primarily relates to net pension income for the post-retirement plans we acquired as part of the FH acquisition. Effective January 1, 2018 all non-service pension gains and losses are to be recorded in the Other (Income) Expense, net caption on our condensed consolidated statement of (loss) income.

Comprehensive (Loss) Income

During the three months ended April 1, 2018 we had a comprehensive loss of $9.1 million, as compared to other comprehensive income of $10.2 million for the three months ended April 2, 2017. The difference primarily relates to the decrease of $22.2 million in net income, offset by favorable foreign currency fluctuations of $2.9 million.

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(Benefit from) Provision for Income Taxes

The tab below outlines the change in effective tax rate for the three months ended April 1, 2018 as compared to the three months ended April 2, 2017 (in thousands, except percentages).

	Three months ended
	April 1, 2018			April 1, 2017
(LOSS) INCOME BEFORE INCOME TAXES	$	(23,320	)	$	5,460
U.S. tax rate	21.0%			35.0%
Intercompany financing	8.6%			-0.9%
Global Intangible Low-Taxed Income impact	-9.2%			0.0%
Non-taxable Refinery Valves purchase consideration	0.0%			-17.3%
Foreign Tax rate differential	-1.9%			-5.7%
US permanent differences	4.0		%	0.3		%
Other	2.9		%	1.8		%
Effective tax rate	25.2%			12.6%
(Benefit from) provision for income taxes	$	(5,879	)	$	687

Restructuring Actions

During 2018 and 2017, we initiated certain restructuring activities, under which we continue to simplify our business ("2018 Actions" and "2017 Actions",respectively). Under these restructurings, we reduced expenses, primarily through reductions in workforce and closing a number of smaller facilities. The table below (in millions) outlines the cumulative effects on past and future earnings resulting from our announced restructuring plans.

	Cumulative Planned Savings		Cumulative Projected Savings		Expected Periods of Savings Realization
2018 Actions	$	8.2	$	8.2	Q2 2018 - Q3 2019
2017 Actions	6.9		6.9		Q2 2017 - Q4 2018
Total Savings	$	15.1	$	15.1

As shown in the table above our projected cumulative restructuring savings are aligned with our cumulative planned savings amounts. The expected periods of realization of the restructuring savings are fairly consistent with our original plans. Our restructuring actions are funded by cash generated by operations.

We expect to incur restructuring related special charges between $2.9 million and $3.3 million to complete the 2018 Actions. The 2017 Actions were finalized during the fourth quarter of 2017.

Liquidity and Capital Resources

Our liquidity needs arise primarily from capital investment in machinery, equipment and the improvement of facilities, funding working capital requirements to support business growth initiatives, acquisitions, dividend payments, and debt service costs. We have historically generated cash from operations and remain in a strong financial position, with resources available for reinvestment in existing businesses, strategic acquisitions and managing our capital structure on a short and long-term basis.

The following table summarizes our cash flow activities for the three month periods indicated (in thousands):

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	April 1, 2018			April 2, 2017
Cash flow provided by (used in):
Operating activities	$	(145	)	$	16,195
Investing activities	(8,141		)	(1,344		)
Financing activities	20,240			(8,529		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	956			1,055
Increase in cash, cash equivalents and restricted cash	$	12,910		$	7,377

During the three months ended April 1, 2018, we used $0.1 million of cash from operating activities compared to generating $16.2 million during the same period in 2017. The $16.3 milliondecrease was primarily driven by working capital changes including $16.9 million increased inventory purchases primarily related to the demand ramp-up in our North American Distributed Valves business and prepaid and other asset commitments of $7.4 million, partially offset by higher cash collections on outstanding receivables of $8.0 million.

During the three months ended April 1, 2018, we used cash of $8.1 million in investing activities as compared to using cash of $1.3 million during the same period in 2017. The $6.8 million year over year decrease in cash was primarily driven by additions to property, plant and equipment related primarily to upgrade projects in the FH businesses that were in process when we acquired them.

During the three months ended April 1, 2018, we generated $20.2 million of cash from financing activities as compared to using cash of $8.5 million. The $28.8 million year over year increase in cash generated from financing activities relates to the new term loan we entered into during the fourth quarter of 2017 in order to purchase the Fluid Handling business.

As of April 1, 2018, total debt (including current portion) was $823.6 million compared to $795.2 as of December 31, 2017. Total debt as a percentage of total shareholders’ equity was 140% as of April 1, 2018 compared to 131% as of December 31, 2017. As of April 1, 2018, we had available capacity to borrow an additional $46.7 million under our revolving credit facility.

We completed the acquisition of FH on December 11, 2017. The total consideration paid to acquire FH consisted of $542.0 million in cash, 3,283,424 unregistered shares of our common stock and the assumption of net pension and post-retirement liabilities of FH. We financed the cash consideration through a combination of committed debt financing and cash on hand. Refer to Note 5, “Business Acquisition,” of the consolidated financial statements for details. As a result of the transaction we incurred significant debt, including secured indebtedness, as described below.

We entered into a secured Credit Agreement, dated as of December 11, 2017 ("New Credit Agreement"), which provides for a $150.0 million revolving line of credit with a five year maturity and a $785.0 million term loan with a seven year maturity which was funded at closing of the FH acquisition in full. We entered into the New Credit Agreement to fund acquisitions, such as the acquisition of FH, to support our operational growth initiatives and working capital needs, and for general corporate purposes. As of April 1, 2018, we had borrowings of $823.6 million outstanding under our credit facility and $85.9 million outstanding under letters of credit.

The New Credit Agreement contains covenants that require, among other items, maintenance of certain financial ratios and also limits our ability to: enter into secured and unsecured borrowing arrangements; issue dividends to shareholders; acquire and dispose of businesses; invest in capital equipment; transfer assets among domestic and international entities; participate in certain higher yielding long-term investment vehicles; and issue additional shares of our stock which limits our ability to borrow under the credit facility. The primary financial covenant is first lien net leverage, a ratio of total secured debt (less cash and cash equivalents) to total earnings before interest expense, taxes, depreciation, and amortization based on the 12 months ended at the testing period. We were in compliance with all financial covenants related to our existing debt obligations at April 1, 2018 and we believe it is likely that we will continue to meet such covenants for at least the next twelve months from date of issuance of the financial statements.

Our ratio of current assets to current liabilities was 2.0:1 as of April 1, 2018 reflected no change from December 31, 2017.

As of April 1, 2018, cash, cash equivalents, and short-term investments totaled $123.3 million, of which $58.2 million is to be returned to Colfax. These cash and cash equivalent balances are substantially all held in foreign bank accounts. This compares to $110.4 million of cash, cash equivalents, and short-term investments as of December 31, 2017, substantially all of which was held in foreign bank accounts. The cash and cash equivalents located at our foreign subsidiaries may not be repatriated to the

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U.S.or other jurisdictions without certain tax implications. On a provisional basis, the Company does not expect to owe the one-time transition tax liability, based on foreign tax pools that are in excess of U.S. tax rates.  We believe that our U.S. based subsidiaries, in the aggregate, will generate positive operating cash flows and in addition we may utilize our New Credit Agreement for U.S. based cash needs.

In 2018, we expect to generate positive cash flow from operating activities sufficient to support our capital expenditures and service our debt. Based on our expected cash flows from operations and contractually available borrowings under our credit facility, we expect to have sufficient liquidity to fund working capital needs and future growth over at least the next twelve months from date of filing the 2017 financial statements. On February 28, 2018, we announced the suspension of our nominal dividend, as part of our capital deployment strategy.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk

Business performance in the Oil & Gas refining sector is largely tied to refining margins, which are also driven by the market price of crude oil and gasoline demand.  Seasonal factors such as hurricanes and peak gasoline demand in the summer months may also drive high crack spread margins.  During periods when high crack spread margins exist, refineries prefer to operate continuously at full capacity.  Refiners may decide to delay planned maintenance (commonly called “unit turnarounds”) during these periods to maximize their returns.  Refining crack spread margins remained high for most of 2017, which resulted in delayed unit turnarounds, especially in the Gulf of Mexico region. As a result, the timing of major capital projects in our severe service Refinery Valves business were impacted.  While planned maintenance and unit turnarounds are necessary for safe and efficient operation of the refineries, project timing driven by these factors may continue to create fluctuations in our performance.

The commercial marine market experienced a historically unprecedented decade-long increase in new ship builds beginning in 2004 to meet the increase in global trade demand.  This created an over-supply of capacity that resulted in a slowdown of new ship contracts between 2015 to 2017.  The pumps that we supply to the commercial marine market are first supplied during commissioning of a new vessel, with aftermarket business over the lifetime of that vessel.  While we have experienced increased aftermarket business during the past decade as the global shipping fleet has expanded, the downturn in new ship builds starting in 2015 has negatively impacted our new equipment commercial marine business.  Any extended downturn in the commercial marine market could have a material adverse effect on our business.

Foreign Currency Exchange Risk

The Company is exposed to certain risks relating to its ongoing business operations including foreign currency exchange rate risk and interest rate risk.

Interest Rate Risk

Loans under our credit facility bear interest at variable rates which reset every 30 to 180 days depending on the rate and period selected by the Company. These loans are subject to interest rate risk as interest rates will be adjusted at each rollover date to the extent such amounts are not repaid. See Note 17 for additional information on the interest rate swap we executed during the second quarter of 2018.

33

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") (our principal executive officer and principal financial officer, respectively), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO concluded that, as of April 1, 2018, the Company's disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

Effective January 1, 2018 we adopted ASC 606, Revenue from Contracts with Customers. In connection with our adoption, we implemented certain revenue recognition controls across the organization to ensure compliance with the new revenue recognition standard. There were no other changes in our internal control over financial reporting during the quarter ended April 1, 2018 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For information regarding our legal proceedings refer to the first three paragraphs of Note 10 to the condensed consolidated financial statements included in this Quarterly Report, which disclosure is referenced herein.

ITEM 1A. RISK FACTORS

We have not identified any material changes from the risk factors as previously disclosed in Item 1A to Part I of our Annual Report on Form 10-K for the year ended December 31, 2017.

34

ITEM 6. EXHIBITS

Exhibit No.		Description and Location
31.1*		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32**		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial statements (Unaudited) from CIRCOR International, Inc.'s Quarterly Report on Form 10-Q for the quarter ended April 1, 2018, as filed with the Securities and Exchange Commission on May 9, 2018, formatted in XBRL (eXtensible Business Reporting Language), as follows:
	(i)	Condensed Consolidated Balance Sheets as of April 1, 2018 and December 31, 2017
	(ii)	Condensed Consolidated Statements of (Loss) Income for the Three Months Ended April 1, 2018 and April 2, 2017
	(iii)	Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended April 1, 2018 and April 2, 2017
	(iv)	Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 1, 2018 and April 2, 2017
	(v)	Notes to the Condensed Consolidated Financial Statements
*	Filed with this report.
**	Furnished with this report.
***	Schedules and similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby undertakes to furnish supplementally copies of any of the omitted schedules or similar attachments upon request by the SEC.

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CIRCOR INTERNATIONAL, INC.
May 10, 2018	/s/ Scott A. Buckhout
	Scott A. Buckhout
	President and Chief Executive Officer
	Principal Executive Officer
May 10, 2018	/s/ Rajeev Bhalla
	Rajeev Bhalla
	Executive Vice President, Chief Financial Officer
	Principal Financial Officer
May 10, 2018	/s/ David F. Mullen
	David F. Mullen
	Vice President and Corporate Controller
	Principal Accounting Officer

36

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Scott A. Buckhout, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CIRCOR International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 10, 2018	Signature:	/s/ Scott A. Buckhout
		Scott A. Buckhout
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Rajeev Bhalla, certify that:

1. I have reviewed this quarterly report on Form 10-Q of CIRCOR International, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

May 10, 2018	Signature:	/s/ Rajeev Bhalla
		Rajeev Bhalla
		Executive Vice President, Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officers, who are the Chief Executive Officer and Chief Financial Officer of CIRCOR International, Inc. (the “Company”), each hereby certifies to the best of his knowledge, that the Company’s quarterly report on Form 10-Q to which this certification is attached (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Scott A. Buckhout	/s/ Rajeev Bhalla
Scott A. Buckhout	Rajeev Bhalla
President and Chief Executive Officer	Executive Vice President, Chief Financial Officer
Principal Executive Officer	Principal Financial Officer
May 10, 2018	May 10, 2018

XML

Document And Entity Information - shares	3 Months Ended
	Apr. 01, 2018	May 08, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	CIRCOR INTERNATIONAL INC
Entity Central Index Key	0001091883
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 01, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,830,057

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 123,305	$ 110,356
Trade accounts receivable, less allowance for doubtful accounts of $5,882 and $4,791, respectively	198,181	223,922
Inventories	253,712	244,896
Restricted Cash and Investments, Current	1,898	1,937
Prepaid expenses and other current assets	70,290	57,282
Total Current Assets	647,386	638,393
PROPERTY, PLANT AND EQUIPMENT, NET	226,439	217,539
OTHER ASSETS:
Goodwill	520,157	505,762
Intangibles, net	497,027	513,364
Deferred income taxes	28,236	22,334
Other assets	8,862	9,407
TOTAL ASSETS	1,928,107	1,906,799
CURRENT LIABILITIES:
Accounts payable	118,441	117,329
Accrued expenses and other current liabilities	167,753	170,454
Accrued compensation and benefits	30,865	34,734
Total Current Liabilities	317,059	322,517
LONG-TERM DEBT	815,795	787,343
DEFERRED INCOME TAXES	31,099	26,122
Liability, Pension and Other Postretirement and Postemployment Benefits, Noncurrent	150,572	150,719
OTHER NON-CURRENT LIABILITIES	21,486	18,124
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.01 par value; 1,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.01 par value; 29,000,000 shares authorized; 19,825,875 and 19,785,298 shares issued and outstanding at April 1, 2018 and December 31, 2017, respectively	212	212
Additional paid-in capital	440,699	438,721
Retained earnings	254,046	274,243
Common treasury stock, at cost (1,372,488 shares at April 1, 2018 and December 31, 2017)	(74,472)	(74,472)
Accumulated other comprehensive loss, net of tax	(28,389)	(36,730)
Total Shareholders’ Equity	592,096	601,974
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 1,928,107	$ 1,906,799

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Trade accounts receivable, allowance for doubtful accounts	$ 5,882	$ 4,791
Preferred stock, par value	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	29,000,000	29,000,000
Common Stock, Shares, Issued	19,825,875	19,785,298
Common Stock, Shares, Outstanding	19,825,875	19,785,298

XML

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Net revenues	$ 275,580	$ 145,208
Cost of revenues	199,276	98,575
GROSS PROFIT	76,304	46,633
Selling, general and administrative expenses	77,238	40,089
Restructuring and Related Cost, Incurred Cost	12,446	(810)
OPERATING (LOSS) INCOME	(13,380)	7,354
Other expense (income):
Interest expense, net	11,801	1,669
Other (income) expense, net	(1,861)	225
TOTAL OTHER EXPENSE, NET	9,940	1,894
(LOSS) INCOME BEFORE INCOME TAXES	(23,320)	5,460
(Benefit from) provision for income taxes	(5,879)	687
NET (LOSS) INCOME	$ (17,441)	$ 4,773
(Loss) Earnings per common share:
Basic	$ (0.88)	$ 0.29
Diluted	$ (0.88)	$ 0.29
Weighted average number of common shares outstanding:
Basic	19,806	16,458
Diluted	19,806	16,691
Dividends declared per common share	$ 0	$ 0.0375

XML

Statements Of Consolidated Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Net (loss) income	$ (17,441)	$ 4,773
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	8,341
Other comprehensive income (loss)	8,341	5,396
COMPREHENSIVE INCOME (LOSS)	$ (9,100)	$ 10,169

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
OPERATING ACTIVITIES
Net (loss) income	$ (17,441)	$ 4,773
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	7,334	3,798
Amortization	12,329	3,092
Bad debt expense (recovery)	261	(54)
Loss on write down of inventory and amortization of fair value step-up	7,563	548
Compensation expense of share-based plans	1,365	738
Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Change in Unrealized Gain (Loss)	0	(2,500)
Amortization of debt issuance costs	881	0
Loss (gain) on sale or write down of property, plant and equipment	1,284	(110)
Changes in operating assets and liabilities, net of effects of acquisition and disposition:
Trade accounts receivable	22,038	14,018
Inventories	(14,850)	2,030
Prepaid expenses and other assets	(11,648)	(4,297)
Accounts payable, accrued expenses and other liabilities	(9,261)	(5,841)
Net cash provided by operating activities	(145)	16,195
INVESTING ACTIVITIES
Additions to property, plant and equipment	(8,234)	(3,001)
Proceeds from the sale of property, plant and equipment	93	190
Goodwill, Purchase Accounting Adjustments	0	1,467
Net cash used in investing activities	(8,141)	(1,344)
FINANCING ACTIVITIES
Proceeds from long-term debt	71,950	34,900
Payments of long-term debt	(44,106)	(43,100)
Dividends paid	0	(624)
Proceeds from the exercise of stock options	301	295
Return of cash to seller	(7,905)	0
Net cash provided by (used in) financing activities	20,240	(8,529)
Effect of exchange rate changes on cash and cash equivalents	956	1,055
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	12,910	7,377
Cash, cash equivalents, and restricted cash at beginning of period	110,356
FINANCING ACTIVITIES	123,305
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	125,203	65,656
Non-cash investing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	$ 2,104	$ 509

XML

Basis Of Presentation

3 Months Ended

Apr. 01, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation

Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared according to the rules and regulations of the United States (the "U.S.") Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of cash flows of CIRCOR International, Inc. (“CIRCOR”, the “Company”, “us”, “we” or “our”) for the periods presented. We prepare our interim financial information using the same accounting principles we use for our annual audited consolidated financial statements. Certain information and note disclosures normally included in the annual audited consolidated financial statements have been condensed or omitted in accordance with SEC rules. We believe that the disclosures made in our condensed consolidated financial statements and the accompanying notes are adequate to make the information presented not misleading.

The consolidated balance sheet as of December 31, 2017 is as reported in our audited consolidated financial statements as of that date but does not contain all of the footnote disclosures from the annual financial statements. Our accounting policies are described in the notes to our December 31, 2017 consolidated financial statements, which were included in our Annual Report on Form 10-K for the year ended December 31, 2017, as updated by Note 2 with respect to newly adopted accounting standards. We recommend that the financial statements included in our Quarterly Report on Form 10-Q be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017.

We operate and report financial information using a fiscal year ending December 31. The data periods contained within our Quarterly Reports on Form 10-Q reflect the results of operations for the 13-week, 26-week and 39-week periods which generally end on the Sunday nearest the calendar quarter-end date. Operating results for the three months ended April 1, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any future quarter.

Unless otherwise indicated, all financial information and statistical data included in these notes to our condensed consolidated financial statements relate to our continuing operations, with dollar amounts expressed in thousands (except per-share data).

XML

Summary Of Significant Accounting Policies

3 Months Ended

Apr. 01, 2018

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

Summary of Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements for the three months ended April 1, 2018 are consistent with those discussed in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2017, except as updated below with respect to newly adopted accounting standards.

New Accounting Standards - Adopted

On January 1, 2018, we adopted the Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("ASU") 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 provides further clarification of the definition of a business with the objective to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets versus businesses. The amendments in ASU 2017-01 provide criteria to determine when a set of assets and activities is not a business. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of ASU 2017-01 has not had a material impact on our consolidated financial statements.

On January 1, 2018, we adopted the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. The amendments in this ASU also clarify that no new measurement date will be required if an award is not probable of vesting at the time a change is made and there is no change to the fair value, vesting conditions, and classification. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of ASU 2017-09 has not had a material impact on our consolidated financial statements.

On January 1, 2018, we adopted the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update do not provide a definition of restricted cash or restricted cash equivalents. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The adoption of ASU 2016-18 has not had a material impact on our consolidated financial statements.

On January 1, 2018, we adopted the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715), which improves the consistency, transparency, and usefulness of the service cost and net benefit cost financial information components. The amendments in this ASU amend presentation requirements of service cost and other components of net benefit cost in the income statement. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The amendments in this ASU are applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic post-retirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic post-retirement benefit in assets. We have elected to use the practical expedient that permits us to use the amounts disclosed in our pension and other post-retirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. For prospective and retroactive reclassification, service costs are recorded within the selling, general, and administrative caption of our consolidated income statement, while the other components of net benefit cost are recorded in the other expense (income), net caption of our consolidated income statement. For the first quarter of 2017, we reclassified $0.4 million of income from the selling, general, and administrative caption to other (income) expense within our consolidated income statement.

On January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers and all the related amendments (“ASC 606” or the “new revenue standard”) using the modified retrospective transition approach. The new revenue standard provides for a single comprehensive model to use in accounting for revenue arising from contracts with customers and replaces most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles ("GAAP"). We recognized the cumulative effect of adopting the new revenue standard as an adjustment to the opening balance of retained earnings as of January 1, 2018. The comparative periods presented have not been restated and continue to be reported under the accounting standards in effect for those periods.

The Company recognizes revenue to depict the transfer of control to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled to in exchange for performance obligations. In order to apply this revenue recognition principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when, or as, a performance obligation is satisfied. See Note 14, Revenue Recognition for further information.

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands):

	As of December 31, 2017		ASC 606 Adjustments		As of January 1, 2018
Assets
Contract assets (1)	15,019		(2,995	)	12,024
Inventories	244,896		540		245,436
Deferred income taxes	22,333		1,123		23,456
Liabilities
Contract liabilities (2)	(33,718	)	(1,517	)	(35,235	)
Deferred income taxes	(26,122	)	92		(26,030	)
Equity
Retained earnings	(274,243	)	2,757		(271,486	)
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

Note that the net impact on retained earnings under the new revenue standard is the result of offsetting amounts attributed to contracts that converted from point in time to over time recognition of $2.5 million and contracts that converted from over time to point in time recognition of $5.3 million.

For contracts that were modified before the effective date, we reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedients under the new revenue standard, which did not have a material effect on the adjustment to retained earnings.

The tables below illustrate the differences in our condensed consolidated statement of (loss) income and balance sheet due to the change in revenue recognition standard (in thousands):

	For the three months ended April 1, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Net revenues	275,580		243,775		31,805
Cost of revenues	199,276		175,066		24,210
(Benefit) provision from income taxes	(5,879	)	(7,579	)	1,700
Net (Loss) Income	(17,441	)	(23,336	)	5,895
	As of April 1, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Assets
Contract assets (1)	26,454		18,733		7,721
Inventories	253,712		259,679		(5,967	)
Deferred income taxes	28,236		29,981		(1,745	)
Liabilities
Contract liabilities (2)	31,221		35,962		(4,741	)
Deferred income taxes	31,099		30,844		255
Retained earnings (3)	254,046		249,551		4,495
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

For the three months ended April 1, 2018, we realized changes to our net loss and in the working capital accounts as described above, with no impact on our net cash flows from operating activities.

For the three months ended April 1, 2018, the only impacts to comprehensive income as a result of the changes between the balances with ASC 606 and without ASC 606 related to the adjustments to net loss shown in the table above.

New Accounting Standards - Not yet Adopted

In March 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 outlines a model for lessees by recognizing all lease-related assets and liabilities on the balance sheet. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early application is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. We are still evaluating the requirements of ASU 2016-02 to determine the impact it will have on our consolidated financial statements but expect the standard to have a material impact on our assets and liabilities for the addition of right-of-use assets with corresponding lease liabilities. We intend to adopt this new standard on January 1, 2019.

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Revenue Recognition (Notes)

3 Months Ended

Apr. 01, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Our revenue is derived from a variety of contracts. A significant portion of our revenues are from contracts associated with the design, development, manufacture or modification of highly engineered, complex and severe environment products with customers who are either in or service the energy, aerospace, defense and industrial markets. Our contracts within the defense markets are primarily with U.S. military customers. Our contracts with the U.S. military customers typically are subject to the Federal Acquisition Regulation (FAR). We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Contracts may be modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract are accounted for as if they were part of that existing contract. In these cases, the effect of the contract modification on the transaction price and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis, except when such modifications relate to a performance obligation which is a series of substantially the same distinct goods or services.  If the modification relates to a performance obligation for a series of substantially the same distinct goods or services, the modifications are treated prospectively. Contract modifications for goods or services that are considered distinct from the existing contract are accounted for as separate contracts.

Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, control is transferred to the customer. Consistent with historical practice, we exclude from the transaction price amounts collected on behalf of third parties (e.g. taxes). Our performance obligations are typically satisfied at a point in time upon delivery and shipping and handling costs are treated as fulfillment costs. To determine the proper revenue recognition method for contracts for highly engineered, complex and severe environment products with right of payment, which meet over-time revenue recognition criteria, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the combined or single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. In certain instances, we accounted for contracts using the portfolio approach when the effect of accounting for a group of contracts or group of performance obligations would not differ materially from considering each contract or performance obligation separately. This determination requires the use of estimates and assumptions that reflect the size and composition of the portfolio. For most of our over-time revenue recognition contracts, the customer contracts with us to provide custom products which serve a single project or capability (even if that single project results in the delivery of multiple products) with right of payment. In circumstances where each distinct product in the contract transfers to the customer over time and the same method would be used to measure the entity’s progress toward complete satisfaction of the performance obligation to transfer each unit to the customer, we would then apply the series guidance to account for the multiple products as a single performance obligation. Hence, the entire contract is accounted for as one performance obligation. An example of these performance obligations include refinery valves or actuation components and sub-systems. Less commonly, however, we may promise to provide distinct goods or services within the over-time revenue recognition contract, in which case we separate the contract into more than one performance obligation. For all contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Generally, the contractually stated price is the primary method used to estimate standalone selling price as the good or service is sold separately in similar circumstances and to similar customers for a similar price and discounts are allocated proportionally to each performance obligation. The Company will not adjust the promised amount of consideration for the effects of a significant financing component as we expect, at contract inception, that the period between when the transfer of control to our customers and when the customer fully pays for the related performance obligations will be less than a year.

Revenue from products and services transferred to customers over-time accounted for 11 percent of our revenue for the three-month period ended April 1, 2018. The majority of our revenue recognized over-time is related to our Engineered Valves and Refinery Valves businesses within our Energy segment and certain other businesses that provide customized products to U.S. military customers within our Aerospace and Defense segment and have contract provisions guaranteeing us costs and profit upon customer cancellation. Revenue is recognized over-time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion, known as the “cost-to-cost” method) to measure progress. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, revenues are recorded proportionally as costs are incurred. Contract costs include labor, materials and subcontractors’ costs, other direct costs and an allocation of overhead, as appropriate.

On April 1, 2018, we had $502.1 million of remaining performance obligations. We expect to recognize approximately 86 percent of our remaining performance obligations as revenue during the remainder of 2018, 12 percent by 2019, and an additional 2 percent by 2020 and thereafter.

Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Contract assets include unbilled amounts typically resulting from over-time contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current.

Generally, payment terms are based on shipment and billing occurs subsequent to revenue recognition, resulting in contract assets for over-time revenue recognition products. However, we sometimes receive advances or deposits from our customers, before revenue is recognized, resulting in contract liabilities. Contract liabilities are generally classified as current. These assets and liabilities are reported net on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. Consistent with historical practice, we elected to expense the incremental costs of obtaining a contract when the amortization period for such contracts would have been one year or less.

In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liabilities balances outstanding at the beginning of the period until the revenue exceeds that balance. If additional advances are received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liabilities as opposed to a portion applying to the new advances for the period.

The opening and closing balances of the Company’s contract assets and contract liabilities balances as of April 1, 2018 are as follows (in thousands):

	January 1, 2018	April 1, 2018	Increase/(Decrease)
Trade accounts receivables, net	223,922	198,181	(25,741	)
Contract assets (1)	12,024	26,454	14,430
Contract liabilities (2)	35,235	31,221	(4,014	)
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

The difference in the opening and closing balances of the contract assets and contract liabilities primarily result from the timing difference between the Company’s performance and the customer’s payment.

Trade account receivables, net decreases $25.7 million, or (-11%) primarily driven by customer cash collections during the quarter (-10%).

Contact assets increased $14.4 million, or 120%, related to unbilled revenue recognized during the three months ended April 1, 2018 within our US Defense business (+54%), Refinery Valves business (+28%), North America Valves businesses (+27%), and Pumps Defense business (+22%).

Contract liabilities decreased $4.0 million, or 11%, from $35.2 million as of January 1, 2018 to $31.2 million as of April 1, 2018, primarily driven by revenue recognized over time during the three months ended April 1, 2018 within our Refinery Valves business (-6%) and Pumps Defense business (-5%).

Contract Estimates. Accounting for over-time contracts requires reliable estimates in order to estimate total contract revenue and costs. For these contracts, we have a Company-wide standard and disciplined quarterly Estimate at Completion ("EAC") process in which management reviews the progress and execution of our performance obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the delivery schedule (e.g., the timing of shipments), technical requirements (e.g., a highly engineered product requiring sub-contractors) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g. to estimate increases in wages and prices for materials and related support cost allocations), execution by our subcontractors, the availability and timing of funding from our customer and overhead cost rates, among other variables. Based on all of these factors, we estimate the profit on a contract as the difference between the total estimated revenue and EAC costs and recognize the resultant profit over the life of the contract, using the cost-to-cost EAC input method to measure progress.

The nature of our contracts gives rise to several types of variable consideration, including penalties. We include in our contract estimates a reduction to revenue for customer agreements, primarily in our large projects business, which contain late shipment penalty clauses whereby we are contractually obligated to pay consideration to our customers if we do not meet specified shipment dates. We generally estimate the variable consideration at the most likely amount to which the customer expects to be entitled. We include estimated amounts 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 variable consideration for estimated penalties is based on several factors including historical customer settlement experience, contractual penalty percentages, and facts surrounding the late shipment.

A change in one or more of these estimates could affect the profitability of our contracts. We review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified.

The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue. There have been no significant changes in estimates in the three months ended April 1, 2018.

Disaggregation of Revenue. The following table presents our revenue disaggregated by several categories. Revenue by major product line was as follows (in thousands):

Three months ended		April 1, 2018
Energy Segment
	Oil & Gas - Upstream, Midstream & Other	$	47,885
	Oil & Gas - Downstream	52,087
	Total	99,972
Aerospace & Defense Segment
	Commercial Aerospace & Other	26,657
	Defense	31,820
	Total	58,477
Industrial Segment
	Europe, Middle East, Africa and Asia	80,445
	North America	36,686
	Total	117,131
Q1 2018 Revenue		$	275,580

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Inventories

3 Months Ended

Apr. 01, 2018

Inventory, Net [Abstract]

Inventories

Inventories

Inventories consisted of the following (in thousands):

	April 1, 2018		December 31, 2017
Raw materials	$	80,901	$	82,372
Work in process	133,767		121,709
Finished goods	39,044		40,815
Total inventories	$	253,712	$	244,896

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Business Acquisitions

3 Months Ended

Apr. 01, 2018

Business Combinations [Abstract]

Business Acquisitions

Business Acquisition

Fluid Handling

On September 24, 2017, CIRCOR entered into a Purchase Agreement (the “Purchase Agreement”) with Colfax Corporation (“Colfax”). Pursuant to the Purchase Agreement, on December 11, 2017, the Company acquired the fluid handling business of Colfax ("FH") for consideration consisting of $542.0 million in cash, 3,283,424 unregistered shares of the Company's common stock, with a fair value of approximately $143.8 million at closing, and the assumption of net pension and post-retirement liabilities of FH. The cash consideration is subject to customary working capital adjustments. The Company financed the cash consideration through a combination of committed debt financing and cash on hand.

FH is a leader in the engineering, development‚ manufacturing‚ distribution‚ service and support of fluid handling systems. With a history dating back to 1860‚ FH is a leading supplier of screw pumps for high demand, severe service applications across a range of markets including general industry, commercial marine, defense, and oil & gas. FH leverages differentiated technology, and provides critical aftermarket customer support, to maintain leading positions in high demand niche markets.

Effective January 1, 2018, the operating results of FH have been split between each of our operating segments, Energy, Aerospace & Defense, and Industrial based upon the end markets of the sub-businesses within FH.

The purchase price allocation is based upon a preliminary valuation of assets and liabilities that was prepared with assistance from a third party valuation specialist. The estimates and assumptions are subject to change as we obtain additional information during the measurement period (up to one year from the acquisition date). The purchase accounting is expected to be finalized in the third quarter of 2018. The assets and liabilities pending finalization include the valuation of acquired tangible and intangible assets, certain operating liabilities, and the evaluation of income taxes. Differences between the preliminary and final valuation could have a material impact on our future results of operations and financial position.

The following table summarizes the preliminary fair value of the assets acquired and the liabilities assumed, at the date of acquisition:

(in thousands)
Cash and cash equivalents (a)	$	63,403
Restricted cash (a)	1,911
Accounts receivable	76,571
Inventory	78,280
Prepaid expenses and other current assets	16,937
Deferred income taxes	41,454
Property, plant and equipment	122,242
Identifiable intangible assets	383,000
Other assets	338
Accounts payable	(46,045		)
Cash payable to seller (a)	(65,314		)
Accrued and other expenses	(63,845		)
Long-term post-retirement liabilities	(143,067		)
Other long-term liabilities	(11,215		)
Deferred tax liabilities	(52,618		)
Total identifiable net assets	$	402,032
Goodwill	301,855
Total purchase price	$	703,887
Consideration
Base purchase price	$	542,000
Net working capital and other purchase accounting adjustments	18,121
Common Stock	143,766
Total	$	703,887
(a) cash acquired to be returned to seller.

During the first quarter of 2018, we identified certain uncollectible accounts receivables ($1.4 million), obsolete inventories ($0.4 million), and obligations ($0.7 million) which required further adjustment to our December 11, 2017 opening balance sheet. The identified adjustments have been recorded against our FH opening balance sheet during the first quarter of 2018.

The excess of purchase price paid over the fair value of FH's net assets was recorded to goodwill, which is primarily attributable to projected future profitable growth, market penetration, as well as an expanded customer base for the Fluid Handling businesses acquired. Approximately 50% of goodwill is projected to be deductible for income tax purposes.

The FH acquisition resulted in the preliminary identification of the following identifiable intangible assets (in thousands):

	Original Estimate		Measurement Period Adjustment			Fair Value		Weighted average amortization period (in years)
Customer relationships	$	215,000	$	(7,000	)	$	208,000	19
Existing technologies	107,000		6,000			113,000		20
Trade names	44,000		2,000			46,000		Indefinite-life
Backlog	22,000		(6,000		)	16,000		4
Total intangible assets	$	388,000	$	(5,000	)	$	383,000

During the first quarter of 2018, with the help of third party specialists, we adjusted the fair value of the acquired FH intangibles based upon better information regarding discount rates, royalty rates, and more granular business forecasts that was determinable at the time of acquisition. The revised fair value of acquired FH intangibles have been recorded against our FH opening balance sheet during the first quarter of 2018.

The fair value of the intangible assets was based on variations of the income approach, which estimates fair value based on the present value of cash flows that the assets are expected to generate. These approaches included the relief-from-royalty method and multi-period excess earnings method, depending on the intangible asset being valued. Customer relationships, aftermarket backlog, and existing technology are amortized on a cash flow basis which reflects the economic benefit consumed. The trade name was assigned an indefinite life based on the Company’s intention to keep the trade names for an indefinite period of time. Refer to Note 6, Goodwill and Intangibles, net for future expected amortization to be recorded.

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Goodwill And Intangible Assets

3 Months Ended

Apr. 01, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets

Goodwill and Intangibles, net

The following table shows goodwill by segment as of December 31, 2017 and April 1, 2018 (in thousands):

	Energy			Aerospace & Defense			Industrial		Total
Goodwill as of December 31, 2017	$	154,058		$	62,548		$	289,156	$	505,762
Adjustments to preliminary purchase price allocation	(5,406		)	(5,711		)	19,628		8,511
Currency translation adjustments	2,726			39			3,119		5,884
Goodwill as of April 1, 2018	$	151,378		$	56,876		$	311,903	$	520,157

During the first quarter of 2018, we identified certain uncollectible accounts receivables, obsolete inventories, and obligations which required further adjustment to our December 11, 2017 opening balance sheet. The identified adjustments have been recorded against our FH opening balance sheet during the first quarter of 2018 and are reflected in the line "adjustments to preliminary purchase price allocation" listed in the table above.

During the first quarter ended April 1, 2018, we realigned our organizational structure under three reportable business segments: Energy, Aerospace & Defense and Industrial. Our realignment was a triggering event for goodwill impairment testing. During the quarter we evaluated our reporting units for goodwill impairment and determined no impairments existed.

The table below presents gross intangible assets and the related accumulated amortization as of April 1, 2018 (in thousands):

	Gross Carrying Amount		Accumulated Amortization
Patents	$	5,399	$	(5,399	)
Non-amortized intangibles (primarily trademarks and trade names)	86,335		—
Customer relationships	314,596		(47,269		)
Order backlog	23,823		(10,389		)
Acquired technology	141,426		(11,766		)
Other	5,410		(5,139		)
Total	$	576,989	$	(79,962	)
Net carrying value of intangible assets	$	497,027

The table below presents estimated remaining amortization expense for intangible assets recorded as of April 1, 2018 (in thousands):

	Remainder of 2018		2019		2020		2021		2022		After 2022
Estimated amortization expense	$	36,975	$	50,096	$	45,903	$	43,655	$	38,221	$	195,842

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Segment Information

3 Months Ended

Apr. 01, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

Our Chief Operating Decision Maker evaluates segment operating performance using segment operating income. Segment operating income is defined as GAAP operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to December 31, 2011, the impact of restructuring related inventory write-offs, impairment charges and special charges or gains. The Company also refers to this measure as adjusted operating income. The Company uses this measure because it helps management understand and evaluate the segments’ core operating results and facilitate comparison of performance for determining incentive compensation achievement. The following table presents certain reportable segment information (in thousands):

As of December 31, 2017 we organized our reporting structure into three segments: CIRCOR Energy ("Energy segment" or "Energy"), CIRCOR Advanced Flow Solutions ("Advanced Flow Solutions segment" or "AFS"), and CIRCOR Fluid Handling ("Fluid Handling"). 

Effective January 1, 2018, we realigned our businesses with end markets to simplify the business, clarify customer and channel relationships and help us exploit growth synergy opportunities across the organization. The new reporting segments are Energy, Aerospace & Defense and Industrial. The Energy segment will remain unchanged except for the addition of reliability services, a business from the Fluid Handling acquisition. The Aerospace & Defense segment will include the Aerospace business out of our AFS segment, as well as the Pumps Defense business of Fluid Handling. The Industrial segment will include the remaining portion of Fluid Handling as well as the industrial solutions and power and process businesses that were part of AFS. In addition, a number of smaller product lines were realigned as part of this change to better manage and serve our customers. The current and prior periods are reported under the new segments.

	Three Months Ended
	April 1, 2018			April 2, 2017
Net revenues
Energy	$	99,972		$	76,210
Aerospace & Defense	58,477			41,601
Industrial	117,131			27,397
Consolidated net revenues	$	275,580		$	145,208
Segment Income
Energy - Segment Operating Income	$	5,696		$	6,407
Aerospace & Defense - Segment Operating Income	8,931			3,784
Industrial - Segment Operating Income	12,948			4,384
Corporate expenses	(7,802		)	(5,479		)
Subtotal	19,773			9,096
Restructuring charges, net	9,615			1,458
Special charges (recoveries), net	2,831			(2,268		)
Special and restructuring charges (recoveries), net	12,446			(810		)
Restructuring related inventory charges	473			—
Amortization of inventory step-up	6,600			—
Acquisition amortization	11,797			2,552
Acquisition depreciation	1,837			—
Restructuring and other cost, net	20,707			2,552
Consolidated Operating (Loss) Income	(13,380		)	7,354
Interest expense, net	11,801			1,669
Other (income) expense, net	(1,861		)	225
(Loss) Income from operations before income taxes	$	(23,320	)	$	5,460
Capital expenditures
Energy	$	3,345		$	791
Aerospace & Defense	944			505
Industrial	3,624			453
Corporate	276			483
Consolidated capital expenditures	$	8,189		$	2,232
Depreciation and amortization
Energy	4,201			$	3,071
Aerospace & Defense	2,793			1,131
Industrial	12,440			2,340
Corporate	229			348
Consolidated depreciation and amortization	19,663			$	6,890
Identifiable assets	April 1, 2018			April 2, 2017
Energy	$	976,000		$	626,183
Aerospace & Defense	348,291			196,681
Industrial	1,327,094			241,985
Corporate	(723,278		)	(249,896		)
Consolidated identifiable assets	$	1,928,107		$	814,953

The total assets for each reportable segment have been reported as the Identifiable Assets for that segment, including inter-segment intercompany receivables, payables and investments in other CIRCOR companies. Identifiable assets reported in Corporate include both corporate assets, such as cash, deferred taxes, prepaid and other assets, fixed assets, as well as the elimination of all inter-segment intercompany assets. The elimination of intercompany assets results in negative amounts reported in Corporate for Identifiable Assets. Corporate Identifiable Assets excluding intercompany assets were $17.0 millionand $49.0 million as of April 1, 2018 and April 2, 2017, respectively.

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Financial Instruments

3 Months Ended

Apr. 01, 2018

Fair Value Disclosures [Abstract]

Financial Instruments

Financial Instruments

Fair Value

The company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy based on the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level One: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level Two: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level Three: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying amounts of cash and cash equivalents, trade receivables and trade payables approximate fair value because of the short maturity of these financial instruments. Cash equivalents are carried at cost which approximates fair value at the balance sheet date and is a Level 1 financial instrument. As of April 1, 2018 and December 31, 2017, the outstanding balance of the Company’s debt approximated fair value based on current rates available to the Company for debt of the same maturity and is a Level 2 financial instrument.

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Guarantees And Indemnification Obligations

3 Months Ended

Apr. 01, 2018

Guarantees And Indemnification Obligations [Abstract]

Guarantees And Indemnification Obligations

Guarantees and Indemnification Obligations

As permitted under Delaware law, we have agreements whereby we indemnify certain of our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. However, we have directors’ and officers’ liability insurance policies that insure us with respect to certain events covered under the policies and should enable us to recover a portion of any future amounts paid under the indemnification agreements. We have no liabilities recorded from those agreements as of April 1, 2018.

We record provisions for the estimated cost of product warranties, primarily from historical information, at the time product revenue is recognized. We also record provisions with respect to any significant individual warranty issues as they arise. While we engage in extensive product quality programs and processes, our warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to us. Should actual product failure rates, utilization levels, material usage, service delivery costs or supplier warranties on parts differ from our estimates, revisions to the estimated warranty liability would be required.

The following table sets forth information related to our product warranty reserves for the three months ended April 1, 2018 (in thousands):

Balance beginning December 31, 2017	$	4,623
Provisions	618
Claims settled	(809		)
Currency translation adjustment	67
Balance ending April 1, 2018	$	4,499

Warranty obligations decreased$0.1 million from $4.6 million as of December 31, 2017 to $4.5 million as of April 1, 2018, primarily driven by net claims settled and quarterly provisions within our Industrial segment.

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Contingencies And Commitments

3 Months Ended

Apr. 01, 2018

Commitments and Contingencies Disclosure [Abstract]

Contingencies And Commitments

Commitments and Contingencies

Asbestos-related product liability claims continue to be filed against two of our subsidiaries: Spence Engineering Company, Inc. (“Spence”), the stock of which we acquired in 1984; and CIRCOR Instrumentation Technologies, Inc. (f/k/a Hoke, Inc.) (“Hoke”), the stock of which we acquired in 1998. Due to the nature of the products supplied by these entities, the markets they serve and our historical experience in resolving these claims, we do not expect that these asbestos-related claims will have a material adverse effect on the financial condition, results of operations or liquidity of the Company.

We are subject to various legal proceedings and claims pertaining to matters such as product liability or contract disputes, including issues arising under certain customer contracts with aerospace and defense customers. We are also subject to other proceedings and governmental inquiries, inspections, audits or investigations pertaining to issues such as tax matters, patents and trademarks, pricing, business practices, governmental regulations, employment and other matters. Although the results of litigation and claims cannot be predicted with certainty, we expect that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on our business, financial condition, results of operations or liquidity.

On February 21, 2018, the Company entered into a mediated settlement regarding a wage and hour action in California by a former employee. In October 2016, the plaintiff alleged non-compliance with California State labor law, including missed or late meal breaks, for hourly employees of CIRCOR Aerospace, Inc. in Corona, California. The total settlement amount of $2.4 million has been recorded as a liability as of April 1, 2018 and December 31, 2017.  This settlement resolves all wage/hour claims by all potentially affected employees through the settlement date and is expected to be approved by the California Superior Court during the second half of 2018.

Standby Letters of Credit

We execute standby letters of credit, which include bid bonds and performance bonds, in the normal course of business to ensure our performance or payments to third parties. The aggregate notional value of these instruments was $85.9 million at April 1, 2018. We believe that the likelihood of demand for a significant payment relating to the outstanding instruments is remote. These instruments generally have expiration dates ranging from less than 1 month to 5 years from April 1, 2018.

The following table contains information related to standby letters of credit instruments outstanding as of April 1, 2018 (in thousands):

Term Remaining	Maximum Potential Future Payments
0–12 months	$	56,698
Greater than 12 months	29,165
Total	$	85,863

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Retirement Plans

3 Months Ended

Apr. 01, 2018

Retirement Benefits, Description [Abstract]

Retirement Plans

Retirement Plans

The following table sets forth the components of total net periodic benefit cost (income) of the Company’s defined benefit pension plans and other post-retirement employee benefit plans (in thousands):

	Three Months Ended
	April 1, 2018			April 2, 2017
Pension Benefits - U.S. Plans
Service cost	$	—		$	—
Interest cost	1,762			426
Expected return on plan assets	(3,771		)	(575		)
Amortization	38			184
Net periodic benefit (income) cost	$	(1,971	)	$	35
Pension Benefits - Non-U.S. Plans
Service cost	$	774		N/A
Interest cost	552			N/A
Expected return on plan assets	(258		)	N/A
Amortization	—			N/A
Net periodic benefit cost	$	1,068		N/A
Other Post-Retirement Benefits
Service cost	$	—		N/A
Interest cost	86			N/A
Amortization	—			N/A
Net periodic benefit cost	$	86		N/A
N/A - no international pension plans or other post-retirement benefits

The periodic benefit service costs are included in the selling, general, and administrative costs, while the remaining net periodic benefit costs are included in other (income) expense, net in our consolidated statements of income for the three months ending April 1, 2018 and April 2, 2017, respectively.

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Income Taxes

3 Months Ended

Apr. 01, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

As of April 1, 2018 and December 31, 2017, we had $2.6 million and $3.0 million of unrecognized tax benefits, respectively, of which $2.5 million and $2.6 million, respectively, would affect our effective tax rate if recognized in any future period.

The Company files income tax returns in U.S. federal, state and local jurisdictions and in foreign jurisdictions. The Company is no longer subject to examination by the Internal Revenue Service (the "IRS") for years prior to 2014 and is no longer subject to examination by the tax authorities in foreign and state jurisdictions prior to 2006. The Company is currently under examination for income tax filings in various foreign jurisdictions.

The Company has a net U.S. deferred tax asset and a net foreign deferred tax liability. Due to uncertainties related to our ability to utilize certain foreign deferred income tax assets, we maintained a total valuation allowance of $23.1 million at April 1, 2018 and $22.1 million at December 31, 2017. The valuation allowance is based on estimates of income in each of the jurisdictions in which we operate and the period over which our deferred tax assets will be recoverable. If future results of operations exceed our current expectations, our existing tax valuation allowances may be adjusted, resulting in future tax benefits. Alternatively, if future results of operations are less than expected, future assessments may result in a determination that some or all of the deferred tax assets are not realizable. Consequently, we may need to establish additional tax valuation allowances for all or a portion of the deferred tax assets, which may have a material adverse effect on our business, results of operations and financial condition.

In connection with the enactment of the US Tax Cuts and Jobs Act (the “Tax Act”) on December 22, 2017, we recorded provisional estimates for certain provisions of the Tax Act as of December 31, 2017. We have not made any changes to these provisional estimates as of April 1, 2018.

In addition, the Tax Act created a new requirement that certain income, such as Global Intangible Low-Taxed Income (“GILTI”), earned by a controlled foreign corporation must be included in the gross income of its U.S. shareholder, effective January 1, 2018. The Tax Act also created the base erosion anti-abuse tax (“BEAT”), a new minimum tax, effective January 1, 2018. We have included the impact of the GILTI provision in the calculation of our 2018 effective tax rate. We do not believe that BEAT has any impact to us.

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Share-Based Compensation

3 Months Ended

Apr. 01, 2018

Share-based Compensation [Abstract]

Share-Based Compensation

Share-Based Compensation

As of April 1, 2018, there were 966,861 stock options and 352,861 Restricted Stock Unit Awards ("RSU Awards") and Restricted Stock Unit Management Stock Plans ("RSU MSPs") Awards outstanding. In addition, there were 336,646 shares available for grant under the 2014 Stock Option and Incentive Plan (the "2014 Plan") as of April 1, 2018.

During the three months ended April 1, 2018, we granted 127,704 stock options compared with 142,428 stock options granted during the three months ended April 2, 2017.

The average fair value of stock options granted during the first three months of 2018 and 2017 was $14.68 and $19.36, respectively, and was estimated using the following weighted-average assumptions:

	April 1, 2018		April 2, 2017
Risk-free interest rate	2.5	%	1.7	%
Expected life (years)	4.4		4.5
Expected stock volatility	37.2	%	35.1	%
Expected dividend yield	—	%	0.3	%

For additional information regarding the historical issuance of stock options, refer to our Annual Report on Form 10-K for the year ended December 31, 2017.

During the three months ended April 1, 2018 and April 2, 2017, we granted 143,198 and 53,855 RSU Awards with approximate fair values of $42.61 and $60.99 per RSU Award, respectively. During the first three months of 2018 and 2017, we granted performance-based RSUs as part of the overall mix of RSU Awards. These performance-based RSUs include metrics for achieving Return on Invested Capital and Adjusted Operating Margin with target payouts ranging from 0% to 200%. Of the 143,198 RSU Awards granted during the three months ended April 1, 2018, 48,080 are performance-based RSU Awards. This compares to 31,369 performance-based RSU Awards granted during the three months ended April 2, 2017.

RSU MSPs totaling 34,937 and 26,726 with per unit discount amounts representing fair values of $14.06 and $20.13 were granted during the three months ended April 1, 2018 and April 2, 2017, respectively.

Compensation expense related to our share-based plans for the three months ended April 1, 2018 and April 2, 2017 was $1.3 million and $0.7 million, respectively. The primary reason for lower expense during 2017 relates to a change in estimate of $0.7 million for anticipated below-threshold achievement of performance-based RSUs granted in February 2015. Compensation expense for both periods was recorded as selling, general and administrative expenses. As of April 1, 2018, there was $14.3 million of total unrecognized compensation costs related to our outstanding share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 2.5 years.

The weighted average contractual term for stock options outstanding and options exercisable as of April 1, 2018 was 5.3 years and 4.7 years, respectively. The aggregate intrinsic value of stock options exercised during the three months ended April 1, 2018 was $0.1 million and the aggregate intrinsic value of stock options outstanding and options exercisable as of April 1, 2018 was $1.0 million and $0.7 million, respectively.

The aggregate intrinsic value of RSU Awards settled during the three months ended April 1, 2018 was $1.0 million and the aggregate intrinsic value of RSU Awards outstanding and RSU Awards vested and deferred as of April 1, 2018 was $11.7 million and $0.1 million, respectively.

The aggregate intrinsic value of RSU MSPs settled during the three months ended April 1, 2018 was $0.4 million and the aggregate intrinsic value of RSU MSPs outstanding and RSU MSPs vested and deferred as of April 1, 2018 was $0.8 million and less than $0.1 million, respectively.

As of April 1, 2018, there were 53,282 Cash Settled Stock Unit Awards outstanding compared to 40,469 as of December 31, 2017. During the three months ended April 1, 2018, the aggregate cash used to settle Cash Settled Stock Unit Awards was $0.2 million. As of April 1, 2018, we had $0.8 million of accrued expenses in current liabilities associated with these Cash Settled Stock Unit Awards compared with $0.9 million as of December 31, 2017. Cash Settled Stock Unit Award related compensation costs (recoveries) for the three months ended April 1, 2018 and April 2, 2017 was$0.1 millionand less than $0.1 million, respectively, and was recorded as selling, general, and administrative expenses.

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Accumulated Other Comprehensive Loss

3 Months Ended

Apr. 01, 2018

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of shareholders' equity, for the three months ended April 1, 2018 (in thousands):

	Foreign Currency Translation Adjustments			Pension, net			Total
Balance as of December 31, 2017	$	(28,584	)	$	(8,146	)	$	(36,730	)
Other comprehensive income	8,341			—			8,341
Balance as of April 1, 2018	$	(20,243	)	$	(8,146	)	$	(28,389	)

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Earnings Per Common Share

3 Months Ended

Apr. 01, 2018

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share ("EPS")

(in thousands, except per share amounts)	Three Months Ended
	April 1, 2018							April 2, 2017
	Net Loss			Shares	Per Share Amount			Net Income		Shares	Per Share Amount
Basic EPS	$	(17,441	)	19,806	$	(0.88	)	$	4,773	16,458	$	0.29
Dilutive securities, common stock options	—			—	—			—		233	—
Diluted EPS	$	(17,441	)	19,806	$	(0.88	)	$	4,773	16,691	$	0.29

Stock options, RSU Awards, and RSU MSPs covering 126,926 and 178,186 shares of common stock, for the three months ended April 1, 2018 and April 2, 2017, respectively, were not included in the computation of diluted EPS because their effect would be anti-dilutive.

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Special Charges/Recoveries

3 Months Ended

Apr. 01, 2018

Restructuring and Related Activities [Abstract]

Special Charges/Recoveries

Special & Restructuring Charges (Recoveries), net

Special and Restructuring Charges (Recoveries), net

Special and restructuring charges, net consist of restructuring costs (including costs to exit a product line or program) as well as certain special charges such as significant litigation settlements and other transactions (charges or recoveries) that are described below. All items described below are recorded in Special and restructuring charges, net on our consolidated statements of (loss) income. Certain other special and restructuring charges such as inventory related items may be recorded in cost of revenues given the nature of the item.

The table below (in thousands) summarizes the amounts recorded within the special and restructuring charges (recoveries), net line item on the condensed consolidated statements of (loss) income for the three months ended April 1, 2018 and April 2, 2017:

	Special & Restructuring Charges (Recoveries), net
	Three Months Ended
	April 1, 2018		April 2, 2017
Special charges (recoveries), net	$	2,831	$	(2,268	)
Restructuring charges, net	9,615		1,458
Total special and restructuring charges (recoveries), net	$	12,446	$	(810	)

Special Charges (Recoveries), net

The table below (in thousands) outlines the special charges, net recorded for the three months ended April 1, 2018:

	Special Charges, net
	For the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	376	$	—	$	—	$	—	$	376
Acquisition related charges	—		—		—		2,455		2,455
Total special charges, net	$	376	$	—	$	—	$	2,455	$	2,831

Acquisition related charges: On December 11, 2017, we acquired FH. In connection with our acquisition, we recorded $2.5 million during the first quarter of 2018 related to internal and external professional fee costs to integrate the FH business into our legacy framework.

Brazil Closure: On November 3, 2015, our Board of Directors approved the closure and exit of our Brazil manufacturing operations due to the economic realities in Brazil and the ongoing challenges with our only significant end customer, Petrobras.

CIRCOR Brazil reported substantial operating losses every year since it was acquired in 2011 while the underlying market

conditions and outlook deteriorated. In connection with the closure, we recorded $0.4 million of charges within the Energy segment during the three months ended April 1, 2018, which relates to losses incurred subsequent to our closure of manufacturing operations during the first quarter of 2016.

The table below (in thousands) outlines the special charges (recoveries), net recorded for the three months ended April 2, 2017:

	Special (Recoveries) Charges, net
	For the three months ended April 2, 2017
	Energy			Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	232		$	—	$	—	$	—	$	232
Contingent consideration revaluation	(2,500		)	—		—		—		(2,500		)
Total special recoveries, net	$	(2,268	)	$	—	$	—	$	—	$	(2,268	)

Brazil closure: In connection with the closure, we recorded $0.2 million of charges within the Energy segment during the three months ended April 2, 2017.

Contingent Consideration Revaluation: The fair value of the Refinery Valves earn-out decreased $2.5 million from $12.2 million as of December 31, 2016 to $9.7 million as of April 2, 2017. The change in fair value was recorded as a special gain during the three months ended April 2, 2017.

Restructuring Charges (Recoveries), net

The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the three months ended April 1, 2018 and April 2, 2017, respectively. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below.

	Restructuring Charges (Recoveries), net
	As of and for the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	1,481	$	82	$	—	$	—	$	1,563
Employee related expenses, net	6,843		—		1,209		—		8,052
Total restructuring charges, net	$	8,324	$	82	$	1,209	$	—	$	9,615
Accrued restructuring charges as of December 31, 2017									$	1,586
Total year to date charges, net (shown above)									9,615
Charges paid / settled, net									(4,897		)
Accrued restructuring charges as of April 1, 2018									$	6,304

We expect to make payment or settle the majority of the restructuring charges accrued as of April 1, 2018 during the second half of 2018.

	Restructuring Charges / (Recoveries)
	As of and for the three months ended April 2, 2017
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	850	$	107	$	—	$	—	$	957
Employee related expenses	172		329		—		—		501
Total restructuring charges, net	$	1,022	$	436	$	—	$	—	$	1,458
Accrued restructuring charges as of December 31, 2016									$	1,618
Total year to date charges, net (shown above)									1,458
Charges paid / settled, net									(1,658		)
Accrued restructuring charges as of April 2, 2017									$	1,418

Restructuring Programs Summary

As specific restructuring programs are announced, the amounts associated with that particular action may be recorded in periods other than when announced to comply with the applicable accounting rules. For example, total cost associated with 2017 Actions (as discussed below) will be recorded in 2017 and 2018. The amounts shown below reflect the total cost for that restructuring program.

During 2018 and 2017, we initiated certain restructuring activities, under which we continued to simplify our business ("2018 Actions and "2017 Actions", respectively). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities.

Charges associated with the 2018 Actions were recorded during the first quarter of 2018. Charges associated with the 2017 Actions were finalized in 2017.

	2018 Actions Restructuring Charges (Recoveries), net as of April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses - incurred to date	$	1,449	$	—	$	—	$	—	$	1,449
Employee related expenses - incurred to date	6,827		—		1,209		—		8,036
Total restructuring related special charges - incurred to date	$	8,276	$	—	$	1,209	$	—	$	9,485

Additional Restructuring Charges

In conjunction with the restructuring action noted above, we incurred certain inventory costs that are recorded in cost of revenues instead of special and restructuring charges. During the first quarter of 2018, we recorded $0.5 million of inventory related restructuring charges within our Energy segment for restructuring actions with our Reliability Services business.

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Subsequent Event

3 Months Ended

Apr. 01, 2018

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

Effective April 12, 2018, CIRCOR International, Inc. (the “Company”) entered into an interest rate swap pursuant to an International Swaps and Derivatives Association ("ISDA") Master Agreement with Citizens Bank, National Association.  The four-year swap has a fixed notional value of $400.0 million with a 1% LIBOR floor and a maturity date of April 12, 2022. The fixed rate of interest paid by the Company is comprised of our current credit spread of 350 basis points plus 2.6475% for a total interest rate of 6.1475%. The ISDA Master Agreement, together with its related schedules, contain customary representations, warranties and covenants. This hedging agreement was entered into to mitigate the interest rate risk inherent in the Company’s variable rate debt and is not for speculative trading purposes.

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Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Tables)

3 Months Ended

Apr. 01, 2018

Accounting Policies [Abstract]

Schedule of Cumulative Effect of Changes for Adoption of Revenue Standard

The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands):

	As of December 31, 2017		ASC 606 Adjustments		As of January 1, 2018
Assets
Contract assets (1)	15,019		(2,995	)	12,024
Inventories	244,896		540		245,436
Deferred income taxes	22,333		1,123		23,456
Liabilities
Contract liabilities (2)	(33,718	)	(1,517	)	(35,235	)
Deferred income taxes	(26,122	)	92		(26,030	)
Equity
Retained earnings	(274,243	)	2,757		(271,486	)
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

The tables below illustrate the differences in our condensed consolidated statement of (loss) income and balance sheet due to the change in revenue recognition standard (in thousands):

	For the three months ended April 1, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Net revenues	275,580		243,775		31,805
Cost of revenues	199,276		175,066		24,210
(Benefit) provision from income taxes	(5,879	)	(7,579	)	1,700
Net (Loss) Income	(17,441	)	(23,336	)	5,895
	As of April 1, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Assets
Contract assets (1)	26,454		18,733		7,721
Inventories	253,712		259,679		(5,967	)
Deferred income taxes	28,236		29,981		(1,745	)
Liabilities
Contract liabilities (2)	31,221		35,962		(4,741	)
Deferred income taxes	31,099		30,844		255
Retained earnings (3)	254,046		249,551		4,495
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

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Revenue Recognition (Tables)

3 Months Ended

Apr. 01, 2018

Revenue from Contract with Customer [Abstract]

Summary of Contract Asset and Liability

	January 1, 2018	April 1, 2018	Increase/(Decrease)
Trade accounts receivables, net	223,922	198,181	(25,741	)
Contract assets (1)	12,024	26,454	14,430
Contract liabilities (2)	35,235	31,221	(4,014	)
(1) Recorded within prepaid expenses and other current assets.
(2) Recorded within accrued expenses and other current liabilities

Disaggregation of Revenue

The following table presents our revenue disaggregated by several categories. Revenue by major product line was as follows (in thousands):

Three months ended		April 1, 2018
Energy Segment
	Oil & Gas - Upstream, Midstream & Other	$	47,885
	Oil & Gas - Downstream	52,087
	Total	99,972
Aerospace & Defense Segment
	Commercial Aerospace & Other	26,657
	Defense	31,820
	Total	58,477
Industrial Segment
	Europe, Middle East, Africa and Asia	80,445
	North America	36,686
	Total	117,131
Q1 2018 Revenue		$	275,580

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Inventories (Tables)

3 Months Ended

Apr. 01, 2018

Inventory, Net [Abstract]

Components Of Inventory

Inventories consisted of the following (in thousands):

	April 1, 2018		December 31, 2017
Raw materials	$	80,901	$	82,372
Work in process	133,767		121,709
Finished goods	39,044		40,815
Total inventories	$	253,712	$	244,896

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Business Acquisitions (Tables)

3 Months Ended

Apr. 01, 2018

Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed [table text block] [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value of the assets acquired and the liabilities assumed, at the date of acquisition:

(in thousands)
Cash and cash equivalents (a)	$	63,403
Restricted cash (a)	1,911
Accounts receivable	76,571
Inventory	78,280
Prepaid expenses and other current assets	16,937
Deferred income taxes	41,454
Property, plant and equipment	122,242
Identifiable intangible assets	383,000
Other assets	338
Accounts payable	(46,045		)
Cash payable to seller (a)	(65,314		)
Accrued and other expenses	(63,845		)
Long-term post-retirement liabilities	(143,067		)
Other long-term liabilities	(11,215		)
Deferred tax liabilities	(52,618		)
Total identifiable net assets	$	402,032
Goodwill	301,855
Total purchase price	$	703,887
Consideration
Base purchase price	$	542,000
Net working capital and other purchase accounting adjustments	18,121
Common Stock	143,766
Total	$	703,887
(a) cash acquired to be returned to seller.

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The FH acquisition resulted in the preliminary identification of the following identifiable intangible assets (in thousands):

	Original Estimate		Measurement Period Adjustment			Fair Value		Weighted average amortization period (in years)
Customer relationships	$	215,000	$	(7,000	)	$	208,000	19
Existing technologies	107,000		6,000			113,000		20
Trade names	44,000		2,000			46,000		Indefinite-life
Backlog	22,000		(6,000		)	16,000		4
Total intangible assets	$	388,000	$	(5,000	)	$	383,000

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Goodwill And Intangible Assets (Tables)

3 Months Ended

Apr. 01, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, By Segment

The following table shows goodwill by segment as of December 31, 2017 and April 1, 2018 (in thousands):

	Energy			Aerospace & Defense			Industrial		Total
Goodwill as of December 31, 2017	$	154,058		$	62,548		$	289,156	$	505,762
Adjustments to preliminary purchase price allocation	(5,406		)	(5,711		)	19,628		8,511
Currency translation adjustments	2,726			39			3,119		5,884
Goodwill as of April 1, 2018	$	151,378		$	56,876		$	311,903	$	520,157

Gross Intangible Assets And Related Accumulated Amortization

The table below presents gross intangible assets and the related accumulated amortization as of April 1, 2018 (in thousands):

	Gross Carrying Amount		Accumulated Amortization
Patents	$	5,399	$	(5,399	)
Non-amortized intangibles (primarily trademarks and trade names)	86,335		—
Customer relationships	314,596		(47,269		)
Order backlog	23,823		(10,389		)
Acquired technology	141,426		(11,766		)
Other	5,410		(5,139		)
Total	$	576,989	$	(79,962	)
Net carrying value of intangible assets	$	497,027

Estimated Remaining Amortization Expense For Intangible Assets

The table below presents estimated remaining amortization expense for intangible assets recorded as of April 1, 2018 (in thousands):

	Remainder of 2018		2019		2020		2021		2022		After 2022
Estimated amortization expense	$	36,975	$	50,096	$	45,903	$	43,655	$	38,221	$	195,842

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Segment Information (Tables)

3 Months Ended

Apr. 01, 2018

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table presents certain reportable segment information (in thousands):

As of December 31, 2017 we organized our reporting structure into three segments: CIRCOR Energy ("Energy segment" or "Energy"), CIRCOR Advanced Flow Solutions ("Advanced Flow Solutions segment" or "AFS"), and CIRCOR Fluid Handling ("Fluid Handling"). 

Effective January 1, 2018, we realigned our businesses with end markets to simplify the business, clarify customer and channel relationships and help us exploit growth synergy opportunities across the organization. The new reporting segments are Energy, Aerospace & Defense and Industrial. The Energy segment will remain unchanged except for the addition of reliability services, a business from the Fluid Handling acquisition. The Aerospace & Defense segment will include the Aerospace business out of our AFS segment, as well as the Pumps Defense business of Fluid Handling. The Industrial segment will include the remaining portion of Fluid Handling as well as the industrial solutions and power and process businesses that were part of AFS. In addition, a number of smaller product lines were realigned as part of this change to better manage and serve our customers. The current and prior periods are reported under the new segments.

	Three Months Ended
	April 1, 2018			April 2, 2017
Net revenues
Energy	$	99,972		$	76,210
Aerospace & Defense	58,477			41,601
Industrial	117,131			27,397
Consolidated net revenues	$	275,580		$	145,208
Segment Income
Energy - Segment Operating Income	$	5,696		$	6,407
Aerospace & Defense - Segment Operating Income	8,931			3,784
Industrial - Segment Operating Income	12,948			4,384
Corporate expenses	(7,802		)	(5,479		)
Subtotal	19,773			9,096
Restructuring charges, net	9,615			1,458
Special charges (recoveries), net	2,831			(2,268		)
Special and restructuring charges (recoveries), net	12,446			(810		)
Restructuring related inventory charges	473			—
Amortization of inventory step-up	6,600			—
Acquisition amortization	11,797			2,552
Acquisition depreciation	1,837			—
Restructuring and other cost, net	20,707			2,552
Consolidated Operating (Loss) Income	(13,380		)	7,354
Interest expense, net	11,801			1,669
Other (income) expense, net	(1,861		)	225
(Loss) Income from operations before income taxes	$	(23,320	)	$	5,460
Capital expenditures
Energy	$	3,345		$	791
Aerospace & Defense	944			505
Industrial	3,624			453
Corporate	276			483
Consolidated capital expenditures	$	8,189		$	2,232
Depreciation and amortization
Energy	4,201			$	3,071
Aerospace & Defense	2,793			1,131
Industrial	12,440			2,340
Corporate	229			348
Consolidated depreciation and amortization	19,663			$	6,890
Identifiable assets	April 1, 2018			April 2, 2017
Energy	$	976,000		$	626,183
Aerospace & Defense	348,291			196,681
Industrial	1,327,094			241,985
Corporate	(723,278		)	(249,896		)
Consolidated identifiable assets	$	1,928,107		$	814,953

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Guarantees And Indemnification Obligations (Tables)

3 Months Ended

Apr. 01, 2018

Guarantees And Indemnification Obligations [Abstract]

Product Warranty Reserves

The following table sets forth information related to our product warranty reserves for the three months ended April 1, 2018 (in thousands):

Balance beginning December 31, 2017	$	4,623
Provisions	618
Claims settled	(809		)
Currency translation adjustment	67
Balance ending April 1, 2018	$	4,499

Warranty obligations decreased$0.1 million from $4.6 million as of December 31, 2017 to $4.5 million as of April 1, 2018, primarily driven by net claims settled and quarterly provisions within our Industrial segment.

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Contingencies And Commitments (Tables)

3 Months Ended

Apr. 01, 2018

Commitments and Contingencies Disclosure [Abstract]

Standby Letters Of Credit Instruments

The following table contains information related to standby letters of credit instruments outstanding as of April 1, 2018 (in thousands):

Term Remaining	Maximum Potential Future Payments
0–12 months	$	56,698
Greater than 12 months	29,165
Total	$	85,863

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Retirement Plans (Tables)

3 Months Ended

Apr. 01, 2018

Retirement Benefits, Description [Abstract]

Components Of Net Pension Benefit Expense

The following table sets forth the components of total net periodic benefit cost (income) of the Company’s defined benefit pension plans and other post-retirement employee benefit plans (in thousands):

	Three Months Ended
	April 1, 2018			April 2, 2017
Pension Benefits - U.S. Plans
Service cost	$	—		$	—
Interest cost	1,762			426
Expected return on plan assets	(3,771		)	(575		)
Amortization	38			184
Net periodic benefit (income) cost	$	(1,971	)	$	35
Pension Benefits - Non-U.S. Plans
Service cost	$	774		N/A
Interest cost	552			N/A
Expected return on plan assets	(258		)	N/A
Amortization	—			N/A
Net periodic benefit cost	$	1,068		N/A
Other Post-Retirement Benefits
Service cost	$	—		N/A
Interest cost	86			N/A
Amortization	—			N/A
Net periodic benefit cost	$	86		N/A
N/A - no international pension plans or other post-retirement benefits

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Share-Based Compensation (Tables)

3 Months Ended

Apr. 01, 2018

Share-based Compensation [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The average fair value of stock options granted during the first three months of 2018 and 2017 was $14.68 and $19.36, respectively, and was estimated using the following weighted-average assumptions:

	April 1, 2018		April 2, 2017
Risk-free interest rate	2.5	%	1.7	%
Expected life (years)	4.4		4.5
Expected stock volatility	37.2	%	35.1	%
Expected dividend yield	—	%	0.3	%

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Apr. 01, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of shareholders' equity, for the three months ended April 1, 2018 (in thousands):

	Foreign Currency Translation Adjustments			Pension, net			Total
Balance as of December 31, 2017	$	(28,584	)	$	(8,146	)	$	(36,730	)
Other comprehensive income	8,341			—			8,341
Balance as of April 1, 2018	$	(20,243	)	$	(8,146	)	$	(28,389	)

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Earnings Per Common Share (Tables)

3 Months Ended

Apr. 01, 2018

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share, Basic And Diluted

(in thousands, except per share amounts)	Three Months Ended
	April 1, 2018							April 2, 2017
	Net Loss			Shares	Per Share Amount			Net Income		Shares	Per Share Amount
Basic EPS	$	(17,441	)	19,806	$	(0.88	)	$	4,773	16,458	$	0.29
Dilutive securities, common stock options	—			—	—			—		233	—
Diluted EPS	$	(17,441	)	19,806	$	(0.88	)	$	4,773	16,691	$	0.29

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Special Charges/Recoveries (Tables)

3 Months Ended

Apr. 01, 2018

Apr. 02, 2017

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Activities Disclosure [Text Block]

Special & Restructuring Charges (Recoveries), net

Special and Restructuring Charges (Recoveries), net

Special and restructuring charges, net consist of restructuring costs (including costs to exit a product line or program) as well as certain special charges such as significant litigation settlements and other transactions (charges or recoveries) that are described below. All items described below are recorded in Special and restructuring charges, net on our consolidated statements of (loss) income. Certain other special and restructuring charges such as inventory related items may be recorded in cost of revenues given the nature of the item.

The table below (in thousands) summarizes the amounts recorded within the special and restructuring charges (recoveries), net line item on the condensed consolidated statements of (loss) income for the three months ended April 1, 2018 and April 2, 2017:

	Special & Restructuring Charges (Recoveries), net
	Three Months Ended
	April 1, 2018		April 2, 2017
Special charges (recoveries), net	$	2,831	$	(2,268	)
Restructuring charges, net	9,615		1,458
Total special and restructuring charges (recoveries), net	$	12,446	$	(810	)

Special Charges (Recoveries), net

The table below (in thousands) outlines the special charges, net recorded for the three months ended April 1, 2018:

	Special Charges, net
	For the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	376	$	—	$	—	$	—	$	376
Acquisition related charges	—		—		—		2,455		2,455
Total special charges, net	$	376	$	—	$	—	$	2,455	$	2,831

Acquisition related charges: On December 11, 2017, we acquired FH. In connection with our acquisition, we recorded $2.5 million during the first quarter of 2018 related to internal and external professional fee costs to integrate the FH business into our legacy framework.

Brazil Closure: On November 3, 2015, our Board of Directors approved the closure and exit of our Brazil manufacturing operations due to the economic realities in Brazil and the ongoing challenges with our only significant end customer, Petrobras.

CIRCOR Brazil reported substantial operating losses every year since it was acquired in 2011 while the underlying market

conditions and outlook deteriorated. In connection with the closure, we recorded $0.4 million of charges within the Energy segment during the three months ended April 1, 2018, which relates to losses incurred subsequent to our closure of manufacturing operations during the first quarter of 2016.

The table below (in thousands) outlines the special charges (recoveries), net recorded for the three months ended April 2, 2017:

	Special (Recoveries) Charges, net
	For the three months ended April 2, 2017
	Energy			Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	232		$	—	$	—	$	—	$	232
Contingent consideration revaluation	(2,500		)	—		—		—		(2,500		)
Total special recoveries, net	$	(2,268	)	$	—	$	—	$	—	$	(2,268	)

Brazil closure: In connection with the closure, we recorded $0.2 million of charges within the Energy segment during the three months ended April 2, 2017.

Contingent Consideration Revaluation: The fair value of the Refinery Valves earn-out decreased $2.5 million from $12.2 million as of December 31, 2016 to $9.7 million as of April 2, 2017. The change in fair value was recorded as a special gain during the three months ended April 2, 2017.

Restructuring Charges (Recoveries), net

The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the three months ended April 1, 2018 and April 2, 2017, respectively. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below.

	Restructuring Charges (Recoveries), net
	As of and for the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	1,481	$	82	$	—	$	—	$	1,563
Employee related expenses, net	6,843		—		1,209		—		8,052
Total restructuring charges, net	$	8,324	$	82	$	1,209	$	—	$	9,615
Accrued restructuring charges as of December 31, 2017									$	1,586
Total year to date charges, net (shown above)									9,615
Charges paid / settled, net									(4,897		)
Accrued restructuring charges as of April 1, 2018									$	6,304

We expect to make payment or settle the majority of the restructuring charges accrued as of April 1, 2018 during the second half of 2018.

	Restructuring Charges / (Recoveries)
	As of and for the three months ended April 2, 2017
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	850	$	107	$	—	$	—	$	957
Employee related expenses	172		329		—		—		501
Total restructuring charges, net	$	1,022	$	436	$	—	$	—	$	1,458
Accrued restructuring charges as of December 31, 2016									$	1,618
Total year to date charges, net (shown above)									1,458
Charges paid / settled, net									(1,658		)
Accrued restructuring charges as of April 2, 2017									$	1,418

Restructuring Programs Summary

As specific restructuring programs are announced, the amounts associated with that particular action may be recorded in periods other than when announced to comply with the applicable accounting rules. For example, total cost associated with 2017 Actions (as discussed below) will be recorded in 2017 and 2018. The amounts shown below reflect the total cost for that restructuring program.

During 2018 and 2017, we initiated certain restructuring activities, under which we continued to simplify our business ("2018 Actions and "2017 Actions", respectively). Under these restructurings, we reduced expenses, primarily through reductions in force and closing a number of smaller facilities.

Charges associated with the 2018 Actions were recorded during the first quarter of 2018. Charges associated with the 2017 Actions were finalized in 2017.

	2018 Actions Restructuring Charges (Recoveries), net as of April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses - incurred to date	$	1,449	$	—	$	—	$	—	$	1,449
Employee related expenses - incurred to date	6,827		—		1,209		—		8,036
Total restructuring related special charges - incurred to date	$	8,276	$	—	$	1,209	$	—	$	9,485

Additional Restructuring Charges

In conjunction with the restructuring action noted above, we incurred certain inventory costs that are recorded in cost of revenues instead of special and restructuring charges. During the first quarter of 2018, we recorded $0.5 million of inventory related restructuring charges within our Energy segment for restructuring actions with our Reliability Services business.

Restructuring and Related Costs [Table Text Block]

The table below (in thousands) summarizes the amounts recorded within the special and restructuring charges (recoveries), net line item on the condensed consolidated statements of (loss) income for the three months ended April 1, 2018 and April 2, 2017:

	Special & Restructuring Charges (Recoveries), net
	Three Months Ended
	April 1, 2018		April 2, 2017
Special charges (recoveries), net	$	2,831	$	(2,268	)
Restructuring charges, net	9,615		1,458
Total special and restructuring charges (recoveries), net	$	12,446	$	(810	)

The table below (in thousands) outlines the special charges, net recorded for the three months ended April 1, 2018:

	Special Charges, net
	For the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	376	$	—	$	—	$	—	$	376
Acquisition related charges	—		—		—		2,455		2,455
Total special charges, net	$	376	$	—	$	—	$	2,455	$	2,831

The tables below (in thousands) outline the charges (or any recoveries) associated with restructuring actions recorded for the three months ended April 1, 2018 and April 2, 2017, respectively. A description of the restructuring actions is provided in the section titled "Restructuring Programs Summary" below.

	Restructuring Charges (Recoveries), net
	As of and for the three months ended April 1, 2018
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	1,481	$	82	$	—	$	—	$	1,563
Employee related expenses, net	6,843		—		1,209		—		8,052
Total restructuring charges, net	$	8,324	$	82	$	1,209	$	—	$	9,615
Accrued restructuring charges as of December 31, 2017									$	1,586
Total year to date charges, net (shown above)									9,615
Charges paid / settled, net									(4,897		)
Accrued restructuring charges as of April 1, 2018									$	6,304

We expect to make payment or settle the majority of the restructuring charges accrued as of April 1, 2018 during the second half of 2018.

	Restructuring Charges / (Recoveries)
	As of and for the three months ended April 2, 2017
	Energy		Aerospace & Defense		Industrial		Corporate		Total
Facility related expenses	$	850	$	107	$	—	$	—	$	957
Employee related expenses	172		329		—		—		501
Total restructuring charges, net	$	1,022	$	436	$	—	$	—	$	1,458
Accrued restructuring charges as of December 31, 2016									$	1,618
Total year to date charges, net (shown above)									1,458
Charges paid / settled, net									(1,658		)
Accrued restructuring charges as of April 2, 2017									$	1,418

he table below (in thousands) outlines the special charges (recoveries), net recorded for the three months ended April 2, 2017:

	Special (Recoveries) Charges, net
	For the three months ended April 2, 2017
	Energy			Aerospace & Defense		Industrial		Corporate		Total
Brazil closure	$	232		$	—	$	—	$	—	$	232
Contingent consideration revaluation	(2,500		)	—		—		—		(2,500		)
Total special recoveries, net	$	(2,268	)	$	—	$	—	$	—	$	(2,268	)

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Summary of Sign Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses	$ 77,238	$ 40,089
Other (income) expense, net	1,861	(225)
Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Selling, general and administrative expenses		(400)
Other (income) expense, net		$ 400
Over Time Recognition | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net impact on retained earnings	2,500
Point in Time Recognition | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net impact on retained earnings	$ 5,300

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Summary Of Significant Accounting Policies - Schedule of Cumulative Effect of Changes for Adoption of Revenue Standard (Details) - USD ($) $ in Thousands	Apr. 01, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	$ 26,454	$ 12,024
Inventories	253,712	245,436	$ 244,896
Deferred income taxes	28,236	23,456	22,334
Contract liabilities	(31,221)	(35,235)	(35,235)
Deferred income taxes	(31,099)	(26,030)	(26,122)
Retained earnings	(254,046)	(271,486)	(274,243)
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	18,733		15,019
Inventories	259,679		244,896
Deferred income taxes	29,981		22,333
Contract liabilities	(35,962)		(33,718)
Deferred income taxes	(30,844)		(26,122)
Retained earnings	(249,551)		$ (274,243)
ASC 606 Adjustments | Difference between Revenue Guidance in Effect before and after Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	7,721	(2,995)
Inventories	(5,967)	540
Deferred income taxes	(1,745)	1,123
Contract liabilities	4,741	1,517
Deferred income taxes	(255)	(92)
Retained earnings	$ (4,495)	$ (2,757)

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Summary Of Significant Accounting Policies - Illustration of Differences in Consolidated Statement of Income and Balance Sheet for Adoption of Revenue Standard (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	$ 275,580	$ 145,208
Cost of revenues	199,276	98,575
(Benefit) provision from income taxes	(5,879)	687
Net Loss	(17,441)	$ 4,773
Contract assets	26,454		$ 12,024
Inventories	253,712		245,436	$ 244,896
Deferred income taxes	28,236		23,456	22,334
Contract liabilities	31,221		35,235	35,235
Deferred income taxes	31,099		26,030	26,122
Retained earnings	254,046		271,486	274,243
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	243,775
Cost of revenues	175,066
(Benefit) provision from income taxes	(7,579)
Net Loss	(23,336)
Contract assets	18,733			15,019
Inventories	259,679			244,896
Deferred income taxes	29,981			22,333
Contract liabilities	35,962			33,718
Deferred income taxes	30,844			26,122
Retained earnings	249,551			$ 274,243
ASC 606 Adjustments | Difference between Revenue Guidance in Effect before and after Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenues	31,805
Cost of revenues	24,210
(Benefit) provision from income taxes	1,700
Net Loss	5,895
Contract assets	7,721		(2,995)
Inventories	(5,967)		540
Deferred income taxes	(1,745)		1,123
Contract liabilities	(4,741)		(1,517)
Deferred income taxes	255		92
Retained earnings	$ 4,495		$ 2,757

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Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Increase (Decrease) in Accounts and Other Receivables	$ (25,741)
Increase (Decrease) in Accounts Receivable	$ (22,038)	$ (14,018)
Percentage of revenue from products and services transterred	1100.00%
Total backlog	$ 502,100
Increase in contract liabilities	(4,014)
Contract with Customer, Liability	31,221		$ 35,235	$ 35,235
Increase/(Decrease)	$ 14,430
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	8600.00%
Remaining performance obligation, expected period of recognition	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	1200.00%
Remaining performance obligation, expected period of recognition	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	200.00%
Remaining performance obligation, expected period of recognition

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Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Disaggregation of Revenue [Line Items]
Increase (Decrease) in Accounts and Other Receivables	$ (25,741)
Increase (Decrease) in Accounts Receivable	(22,038)	$ (14,018)
Revenue by major product line	275,580
Energy Segment
Disaggregation of Revenue [Line Items]
Revenue by major product line	99,972
Energy Segment | Oil & Gas - Upstream, Midstream & Other
Disaggregation of Revenue [Line Items]
Revenue by major product line	47,885
Energy Segment | Oil & Gas - Downstream
Disaggregation of Revenue [Line Items]
Revenue by major product line	52,087
Aerospace & Defense Segment
Disaggregation of Revenue [Line Items]
Revenue by major product line	58,477
Aerospace & Defense Segment | Commercial Aerospace & Other
Disaggregation of Revenue [Line Items]
Revenue by major product line	26,657
Aerospace & Defense Segment | Defense
Disaggregation of Revenue [Line Items]
Revenue by major product line	31,820
Industrial Segment
Disaggregation of Revenue [Line Items]
Revenue by major product line	117,131
Industrial Segment | Europe, Middle East, Africa and Asia
Disaggregation of Revenue [Line Items]
Revenue by major product line	80,445
Industrial Segment | North America
Disaggregation of Revenue [Line Items]
Revenue by major product line	$ 36,686

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Revenue Recognition - Contract Asset and Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Accounts Receivable, Net, Current	$ 198,181	$ 223,922
Contract assets
Increase/(Decrease)	14,430
Ending balance	26,454
Contract liabilities
Beginning balance	35,235
Increase/(Decrease)	(4,014)
Ending balance	31,221
Increase (Decrease) in Accounts Receivable	$ (25,741)

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Inventories (Components Of Inventory) (Details) - USD ($) $ in Thousands	Apr. 01, 2018	Jan. 01, 2018	Dec. 31, 2017
Inventory, Net [Abstract]
Raw materials	$ 80,901		$ 82,372
Work in process	133,767		121,709
Finished goods	39,044		40,815
Inventories	$ 253,712	$ 245,436	$ 244,896

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Business Acquisitions - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 11, 2017	Apr. 01, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Inventory		$ 400
Goodwill		520,157	$ 505,762
Total purchase price		$ 700
Colfax, Inc. Fluid Handing Business
Business Acquisition [Line Items]
Cash and cash equivalents	$ 63,403
Restricted cash	1,911
Accounts receivable	76,571
Inventory	78,280
Prepaid expenses and other current assets	16,937
Deferred income taxes	41,454
Property, plant and equipment	122,242
Identifiable intangible assets	383,000
Other assets	338
Accounts payable	(46,045)
Cash payable to seller	(65,314)
Accrued and other expenses	(63,845)
Long-term post-retirement liabilities	(143,067)
Other long-term liabilities	(11,215)
Deferred tax liabilities	(52,618)
Total identifiable net assets	402,032
Goodwill	301,855
Total purchase price	703,887
Base purchase price	542,000
Net working capital and other purchase accounting adjustments	18,121
Common Stock	$ 143,766

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Business Acquisitions - Schedule of Intangible Assets Acquired (Details) - Colfax, Inc. Fluid Handing Business - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Sep. 24, 2017
Schedule of Finite and Indefinite-Lived Intangibles Acquired as Part of Business Combination [Line Items]
Intangible assets acquired	$ 383,000	$ 388,000
Finite-lived Intangible Assets Acquired	(5,000)
Trade names
Schedule of Finite and Indefinite-Lived Intangibles Acquired as Part of Business Combination [Line Items]
Intangible assets acquired	46,000	44,000
Finite-lived Intangible Assets Acquired	2,000
Customer relationships
Schedule of Finite and Indefinite-Lived Intangibles Acquired as Part of Business Combination [Line Items]
Intangible assets acquired	208,000	215,000
Finite-lived Intangible Assets Acquired	$ (7,000)
Weighted average amortization period (in years)	19 years
Existing technologies
Schedule of Finite and Indefinite-Lived Intangibles Acquired as Part of Business Combination [Line Items]
Intangible assets acquired	$ 113,000	107,000
Finite-lived Intangible Assets Acquired	$ 6,000
Weighted average amortization period (in years)	20 years
Trade names
Schedule of Finite and Indefinite-Lived Intangibles Acquired as Part of Business Combination [Line Items]
Intangible assets acquired	$ 16,000	$ 22,000
Finite-lived Intangible Assets Acquired	$ (6,000)
Weighted average amortization period (in years)	4 years

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Business Acquisitions Business Acquisitions - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Sep. 24, 2017	Apr. 01, 2018	Apr. 02, 2017	Dec. 11, 2017
Business Acquisition [Line Items]
Business Combination, Acquired Receivables, Estimated Uncollectible		$ 1,400
Inventory		400
Business Combination, Acquired Receivable, Fair Value		700
Net (loss) income		(17,441)	$ 4,773
Net revenues		275,580	145,208
Operating Income (Loss)		$ (13,380)	$ 7,354
Colfax, Inc. Fluid Handing Business
Business Acquisition [Line Items]
Inventory				$ 78,280
Business Combination, Acquired Receivable, Fair Value				$ 703,887
Business Combination, Purchase Agreement, Consideration To Be Transferred	$ 542,000
Business Acquisition, Goodwill Acquired, Expected To Be Deductible		50.00%
Colfax, Inc. Fluid Handing Business | Common Stock
Business Combination, Purchase Agreement, Pending Acquisition [Abstract]
Business Combination, Purchase Agreement, Consideration To Be Transferred, Equity Interests Issuable	3,283,424
Business Combination, Purchase Agreement, Consideration To Be Transferred, Equity Interests Issuable, Fair Value	$ 143,800

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Goodwill And Intangible Assets (Goodwill, By Segment) (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2018 USD ($)
Goodwill [Roll Forward]
Goodwill as of December 31, 2017	$ 505,762
Currency translation adjustments	5,884
Goodwill, Impairment Loss	8,511
Goodwill as of April 1, 2018	520,157
Energy [Member]
Goodwill [Roll Forward]
Goodwill as of December 31, 2017	154,058
Currency translation adjustments	2,726
Goodwill, Impairment Loss	(5,406)
Goodwill as of April 1, 2018	151,378
Aerospace [Member]
Goodwill [Roll Forward]
Goodwill as of December 31, 2017	62,548
Currency translation adjustments	39
Goodwill, Impairment Loss	(5,711)
Goodwill as of April 1, 2018	56,876
Total Industrial
Goodwill [Roll Forward]
Goodwill as of December 31, 2017	289,156
Currency translation adjustments	3,119
Goodwill, Impairment Loss	19,628
Goodwill as of April 1, 2018	$ 311,903

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Goodwill And Intangible Assets (Gross Intangible Assets And Related Accumulated Amortization) (Details) - USD ($) $ in Thousands	Apr. 01, 2018	Dec. 31, 2017
Intangible Assets [Line Items]
Gross Carrying Amount	$ 576,989
Accumulated Amortization	(79,962)
Net carrying value of intangible assets	497,027	$ 513,364
Patents [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	5,399
Accumulated Amortization	(5,399)
Non-amortized intangibles (primarily trademarks and trade names) [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	86,335
Accumulated Amortization	0
Customer relationships
Intangible Assets [Line Items]
Gross Carrying Amount	314,596
Accumulated Amortization	(47,269)
Backlog [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	23,823
Accumulated Amortization	(10,389)
Acquired Technology [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	141,426
Accumulated Amortization	(11,766)
Other [Member]
Intangible Assets [Line Items]
Gross Carrying Amount	5,410
Accumulated Amortization	$ (5,139)

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Goodwill And Intangible Assets (Estimated Remaining Amortization Expense For Intangible Assets) (Details) $ in Thousands	Apr. 01, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 36,975
2019	50,096
2020	45,903
2021	43,655
2022	38,221
After 2022	$ 195,842

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Segment Information (Reportable Segment Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Dec. 31, 2017	Apr. 02, 2017
Segment Reporting Information [Line Items]
Restructuring Costs and Asset Impairment Charges	$ 20,707		$ 2,552
Net revenues	275,580		145,208
Operating Income (Loss)	(13,380)		7,354
Other Operating Income	19,773		9,096
Other Nonrecurring (Income) Expense	2,831		(2,268)
Restructuring Charges	9,615	$ 1,458	1,458
Amortization of inventory step-up	6,600		0
Interest expense	11,801		1,669
Other income, net	(1,861)		225
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	(23,320)		5,460
Identifiable assets	1,928,107	$ 1,906,799	814,953
Capital expenditures	8,234		3,001
Depreciation, Depletion and Amortization	19,663		6,890
Corporate Identifiable Assets After Elimination Of Intercompany Assets [Member]
Segment Reporting Information [Line Items]
Identifiable assets	17,000		49,000
Energy [Member]
Segment Reporting Information [Line Items]
Net revenues	99,972		76,210
Operating Income (Loss)	5,696		6,407
Other Nonrecurring (Income) Expense	376		(2,268)
Restructuring Charges	8,324		1,022
Identifiable assets	976,000		626,183
Capital expenditures	3,345		791
Depreciation, Depletion and Amortization	4,201		3,071
Aerospace [Member]
Segment Reporting Information [Line Items]
Net revenues	58,477		41,601
Operating Income (Loss)	8,931		3,784
Identifiable assets	348,291		196,681
Capital expenditures	944		505
Depreciation, Depletion and Amortization	2,793		1,131
Total Industrial
Segment Reporting Information [Line Items]
Operating Income (Loss)	12,948		4,384
Other Nonrecurring (Income) Expense	0		0
Restructuring Charges	1,209		0
Identifiable assets	1,327,094		241,985
Capital expenditures	3,624		453
Depreciation, Depletion and Amortization	12,440		2,340
Corporate/Eliminations [Member]
Segment Reporting Information [Line Items]
Net revenues	117,131		27,397
Operating Income (Loss)	(7,802)		(5,479)
Capital expenditures	276		483
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Other Nonrecurring (Income) Expense	2,455		0
Restructuring Charges	0		0
Identifiable assets	(723,278)		(249,896)
Depreciation, Depletion and Amortization	229		348
Segment Reconciling Items [Member]
Segment Reporting Information [Line Items]
Special Restructuring Charges	9,615		1,458
Special Other Charges	2,831		(2,268)
Other Nonrecurring (Income) Expense	12,446		(810)
Restructuring Charges	473		0
Special Acquisition Amortization	11,797		2,552
Restatement Impact	1,837		0
Restatement Adjustment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Capital expenditures	$ 8,189		$ 2,232

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Financial Instruments (Narrative) (Details) $ in Thousands	Apr. 01, 2018 USD ($)
Derivative [Line Items]
Letters of Credit Outstanding, Amount	$ 85,863

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Guarantees And Indemnification Obligations (Product Warranty Reserves) (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2018 USD ($)
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance beginning December 31, 2014	$ 4,623
Provisions	618
Claims settled	(809)
Currency translation adjustments	67
Balance ending October 1, 2017	4,499
Liability for indemnification agreements	0
Increase in warranty obligations	$ (100)

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Contingencies And Commitments (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Dec. 31, 2017
Contingencies, Commitments And Guarantees [Line Items]
Aggregate notional value standby letters of credit	$ 85,863
Minimum [Member]
Contingencies, Commitments And Guarantees [Line Items]
Expiration period, minimum in months and maximum in years	1 month
Maximum [Member]
Contingencies, Commitments And Guarantees [Line Items]
Expiration period, minimum in months and maximum in years	5 years
Settled Litigation | Wage and Hour Action California
Contingencies, Commitments And Guarantees [Line Items]
Settlement liability	$ 2,400	$ 2,400

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Contingencies And Commitments (Standby Letters Of Credit Instruments) (Details) $ in Thousands	Apr. 01, 2018 USD ($)
Contingencies, Commitments And Guarantees [Line Items]
Letters of Credit Outstanding, Amount	$ 85,863
0-12 months [Member]
Contingencies, Commitments And Guarantees [Line Items]
Letters of Credit Outstanding, Amount	56,698
Greater than 12 months [Member]
Contingencies, Commitments And Guarantees [Line Items]
Letters of Credit Outstanding, Amount	$ 29,165

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Retirement Plans (Components Of Net Pension Benefit Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Pension Benefits | U.S. Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 0	$ 0
Interest cost	1,762	426
Expected return on plan assets	(3,771)	(575)
Amortization	38	184
Net periodic benefit (income) cost	(1,971)	$ 35
Pension Benefits | Non-U.S. Plans
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	774
Interest cost	552
Expected return on plan assets	(258)
Amortization	0
Net periodic benefit (income) cost	1,068
Other Post-Retirement Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	0
Interest cost	86
Amortization	0
Net periodic benefit (income) cost	$ 86

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Income Taxes (Details) - USD ($) $ in Millions	Apr. 01, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Unrecognized tax benefits that would impact effective tax rate	$ 2.6	$ 3.0
Unrecognized tax benefits that would affect the effective tax rate if recognized	2.5	2.6
Deferred tax assets, valuation allowance	$ 23.1	$ 22.1

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Share-Based Compensation (Narrative) (Details) $ in Millions	3 Months Ended
	Apr. 01, 2018 USD ($) $ / shares shares	Apr. 02, 2017 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU outstanding | shares	352,861
Shares available for grant | shares	336,646
Compensation expense (benefit)	$ 1.3	$ 0.7
Unrecognized compensation costs	$ 14.3
Weighted average period of recognition of compensation expense (in years)	2 years 5 months 16 days
Weighted average contractual term for stock options outstanding, years	5 years 4 months 5 days
Weighted average contractual term for stock options exercisable, years	4 years 7 months 29 days
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Grant Date Fair Value | $ / shares	$ 14.68	$ 19.36
Stock options outstanding | shares	966,861
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 0.1
Aggregate intrinsic value of stock options outstanding	1.0
Aggregate intrinsic value of stock options exercisable	$ 0.7
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted | shares	143,198	53,855
Granted RSU awards fair value | $ / shares	$ 42.61	$ 60.99
Aggregate intrinsic value of RSU Awards / RSU MSPs	$ 1.0
Aggregate intrinsic value of RSU Awards outstanding	11.7
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 0.1
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target threshold (as a percent)	0.00%
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target threshold (as a percent)	200.00%
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted | shares	48,080	31,369
Restricted Stock Units Management Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted | shares	34,937	26,726
Restricted stock units discount amount | $ / shares	14.06	20.13
Aggregate intrinsic value of RSU Awards / RSU MSPs	$ 0.4
Aggregate intrinsic value of RSU Awards outstanding	0.8
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	$ 0.1
Cash Settled Stock Unit Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU outstanding | shares	53,282		40,469
Cash used to settle awards	$ 0.2
Accrued expenses and current liabilities for Cash Settled Stock Unit Awards	0.8		$ 0.9
Cash Settled Stock Unit Awards [Member] | Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense (benefit)	0.1	$ 0.1
February 2015 [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense (benefit)	$ (0.7)

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Share-Based Compensation (Schedule Of Estimated Weighted-Average Assumptions Of Stock Options) (Details)	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Share-based Compensation [Abstract]
Risk-free interest rate	2.50%	1.70%
Expected life	4 years 5 months 1 day	4 years 6 months
Expected stock volatility	37.20%	35.10%
Expected dividend yield	0.00%	0.30%

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Share-Based Compensation CEO Inducement Stock Award (Details) - Stock Options [Member] - $ / shares	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock options granted (in shares)	127,704	142,428
Grant Date Fair Value (in usd per share)	$ 14.68	$ 19.36

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Accumulated Other Comprehensive Loss (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2018 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ 8,341
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance as of December 31, 2017	(36,730)
Balance as of April 1, 2018	(28,389)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance as of December 31, 2017	(28,584)
Balance as of April 1, 2018	(20,243)
Pension, net
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance as of December 31, 2017	(8,146)
Other comprehensive income	0
Balance as of April 1, 2018	$ (8,146)

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net (loss) income	$ (17,441)	$ 4,773
Basic Earnings Per Common Share (EPS), Shares	19,806,000	16,458,000
Basic EPS, Per Share Amount	$ (0.88)	$ 0.29
Dilutive securities, common stock options, Shares	0	233,000
Dilutive securities, common stock options, Per Share Amount	$ (0.00)	$ (0.00)
Diluted EPS, Shares	19,806,000	16,691,000
Diluted EPS, Per Share Amount	$ (0.88)	$ 0.29
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options and RSUs, shares	126,926
RSU Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options and RSUs, shares		178,186

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Special Charges/Recoveries (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Dec. 31, 2017	Apr. 02, 2017
Restructuring Reserve [Roll Forward]
Restructuring Reserve Beginning of Period	$ 1,586		$ 1,618
Restructuring Charges	9,615	$ 1,458	1,458
Other Nonrecurring (Income) Expense	2,831		(2,268)
Special charges paid	(4,897)	(1,658)
Restructuring Reserve End of Period	6,304	$ 1,586	1,418
Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Restructuring Charges	8,052		501
Inventory Related Charges [Member]
Restructuring Reserve [Roll Forward]
Restructuring Charges	500
Energy [Member]
Restructuring Reserve [Roll Forward]
Restructuring Charges	8,324		1,022
Other Nonrecurring (Income) Expense	376		(2,268)
Energy [Member] | Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Restructuring Charges	6,843		172
Corporate [Member]
Restructuring Reserve [Roll Forward]
Restructuring Charges	0		0
Other Nonrecurring (Income) Expense	2,455		0
Corporate [Member] | Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Restructuring Charges	$ 0		$ 0

XML

Special Charges/Recoveries Charges Incurred to Date (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2018	Dec. 31, 2017	Apr. 02, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 9,615	$ 1,458	$ 1,458
Acquisition related charges	2,455		(2,500)
Special Charges, Net	9,615		1,458
Other Nonrecurring (Income) Expense	2,831		(2,268)
Restructuring and Related Cost, Incurred Cost	12,446		(810)
Restructuring Reserve	6,304	1,586	1,418	$ 1,618
Payments for Restructuring	(4,897)	$ (1,658)
Two Thousands Seventeen Actions Restructuring Charges [Member] [Domain] [Member]
Restructuring Cost and Reserve [Line Items]
Charges incurred to date	(9,485)
Divestiture [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	376		232
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	8,052		501
Employee Severance [Member] | Two Thousands Seventeen Actions Restructuring Charges [Member] [Domain] [Member]
Restructuring Cost and Reserve [Line Items]
Charges incurred to date	(8,036)
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Recoveries of Restructuring Charges	1,563		957
Energy [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	8,324		1,022
Acquisition related charges	0		(2,500)
Other Nonrecurring (Income) Expense	376		(2,268)
Energy [Member] | Two Thousands Seventeen Actions Restructuring Charges [Member] [Domain] [Member]
Restructuring Cost and Reserve [Line Items]
Charges incurred to date	(8,276)
Energy [Member] | Divestiture [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	376		232
Energy [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	6,843		172
Energy [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Recoveries of Restructuring Charges	1,481		850
Energy [Member] | Facility Closing [Member] | Two Thousands Seventeen Actions Restructuring Charges [Member] [Domain] [Member]
Restructuring Cost and Reserve [Line Items]
Charges incurred to date	(1,449)
Energy [Member] | Facility Closing [Member] | Two Thousands Seventeen Actions Restructuring Charges [Member] [Domain] [Member]
Restructuring Cost and Reserve [Line Items]
Charges incurred to date	(6,827)
Advanced Flow Solutions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	82		436
Other Nonrecurring (Income) Expense	0		0
Advanced Flow Solutions [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		329
Advanced Flow Solutions [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Recoveries of Restructuring Charges	82		107
Total Industrial
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,209		0
Acquisition related charges	0		0
Other Nonrecurring (Income) Expense	0		0
Total Industrial | Divestiture [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		0
Total Industrial | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,209		0
Total Industrial | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Recoveries of Restructuring Charges	0		0
Total Industrial | Facility Closing [Member] | Two Thousands Seventeen Actions Restructuring Charges [Member] [Domain] [Member]
Restructuring Cost and Reserve [Line Items]
Charges incurred to date	(1,209)
Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		0
Acquisition related charges	2,455		0
Other Nonrecurring (Income) Expense	2,455		0
Corporate Segment [Member] | Divestiture [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		0
Corporate Segment [Member] | Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0		0
Corporate Segment [Member] | Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Recoveries of Restructuring Charges	0		0
Total Aerospace and Defense | Divestiture [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 0		$ 0

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Special Charges Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Apr. 01, 2018	Dec. 31, 2017	Apr. 02, 2017	Dec. 31, 2017	Jan. 01, 2018
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Acquisition related charges	$ 2,455		$ (2,500)
Inventories	253,712	$ 244,896		$ 244,896	$ 245,436
Restructuring Charges	9,615	$ 1,458	1,458
Special and restructuring (recoveries) charges, net	2,831		(2,268)
Energy [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Acquisition related charges	0		(2,500)
Restructuring Charges	8,324		1,022
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Instruments Classified in Shareholders' Equity, Transfers out of Level 3			2,500	$ 12,200
Special and restructuring (recoveries) charges, net	376		(2,268)
Advanced Flow Solutions [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	82		436
Special and restructuring (recoveries) charges, net	0		0
Corporate Segment [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Acquisition related charges	2,455		0
Restructuring Charges	0		0
Special and restructuring (recoveries) charges, net	2,455		0
Inventory Related Charges [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	500
Employee Severance [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	8,052		501
Employee Severance [Member] | Energy [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	6,843		172
Employee Severance [Member] | Advanced Flow Solutions [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	0		329
Employee Severance [Member] | Corporate Segment [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	0		0
Divestiture [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	376		232
Divestiture [Member] | Energy [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	376		232
Divestiture [Member] | Total Aerospace and Defense
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	0		0
Divestiture [Member] | Corporate Segment [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Restructuring Charges	$ 0		0
Downstream [Member]
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items]
Contingent Consideration Classified as Equity, Fair Value Disclosure			$ 9,700

XML

Subsequent Event (Details) - Interest Rate Swap - Subsequent Event	Apr. 12, 2018 USD ($)
Subsequent Event [Line Items]
Term of swap	4 years
Fixed notional value	$ 400,000,000.0
LIBOR floor	1.00%
Basis spread on variable rate	2.6475%
Total interest rate	6.1475%
Basis Points
Subsequent Event [Line Items]
Basis spread on variable rate	3.50%

XML

Label	Element	Value
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	$ 58,279,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	$ 112,293,000