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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
The Company’s primary business is the design and manufacture of arc welding and cutting products, manufacturing a broad line of arc welding equipment, consumable welding products and other welding and cutting products.  The Company also has a leading global position in the brazing and soldering alloys market.  The Company has aligned its business units into five operating segments to enhance the utilization of the Company’s worldwide resources and global end user and sourcing initiatives.  The operating segments consist of North America Welding, Europe Welding, Asia Pacific Welding, South America Welding and The Harris Products Group.  The North America Welding segment includes welding operations in the United States, Canada and Mexico.  The Europe Welding segment includes welding operations in Europe, Russia, Africa and the Middle East.  The other two welding segments include welding operations in Asia Pacific and South America, respectively.  The fifth segment, The Harris Products Group, includes the Company’s global cutting, soldering and brazing businesses as well as the retail business in the United States.
Segment performance is measured and resources are allocated based on a number of factors, the primary profit measure being earnings before interest and income taxes (“EBIT”), as adjusted.  Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets.
Financial information for the reportable segments follows:
 
North
America
Welding
 
Europe
Welding
 
Asia
Pacific
Welding
 
South
America
Welding
 
The Harris
Products
Group
 
Corporate /
Eliminations
 
Consolidated
Three Months Ended March 31, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
401,906

 
$
105,406

 
$
61,286

 
$
43,993

 
$
72,471

 
$
—

 
$
685,062

Inter-segment sales
32,943

 
5,860

 
4,449

 
29

 
2,118

 
(45,399
)
 
—

Total
$
434,849

 
$
111,266

 
$
65,735

 
$
44,022

 
$
74,589

 
$
(45,399
)
 
$
685,062

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
71,364

 
$
9,292

 
$
(640
)
 
$
11,765

 
$
6,058

 
$
2,891

 
$
100,730

Special items (gain) charge
(47
)
 
39

 
(9
)
 
17,665

 
—

 
—

 
17,648

EBIT
$
71,411

 
$
9,253

 
$
(631
)
 
$
(5,900
)
 
$
6,058

 
$
2,891

 
$
83,082

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
914

Interest expense
 

 
 

 
 

 
 

 
 

 
 
 
(1,570
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
82,426

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,107,182

 
$
404,451

 
$
320,776

 
$
141,079

 
$
170,856

 
$
(30,368
)
 
$
2,113,976

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
419,554

 
$
110,491

 
$
70,039

 
$
36,374

 
$
82,115

 
$
—

 
$
718,573

Inter-segment sales
28,985

 
4,279

 
4,384

 
20

 
2,224

 
(39,892
)
 
—

Total
$
448,539

 
$
114,770

 
$
74,423

 
$
36,394

 
$
84,339

 
$
(39,892
)
 
$
718,573

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
76,660

 
$
10,701

 
$
2,293

 
$
5,112

 
$
7,151

 
$
(603
)
 
$
101,314

Special items (gain) charge
860

 
(6
)
 
197

 
9,660

 
—

 
—

 
10,711

EBIT
$
75,800

 
$
10,707

 
$
2,096

 
$
(4,548
)
 
$
7,151

 
$
(603
)
 
$
90,603

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
1,026

Interest expense
 

 
 

 
 

 
 

 
 

 
 

 
(950
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
90,679

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,014,910

 
$
434,484

 
$
364,673

 
$
121,024

 
$
196,434

 
$
(27,998
)
 
$
2,103,527


In the three months ended March 31, 2014, special items include net gains of $47 and $9 in the North America Welding and Asia Pacific Welding segments, respectively, and a net charge of $39 in the Europe Welding segment primarily related to employee severance and other costs associated with the consolidation of manufacturing operations.  The South America Welding segment special items represent a charge of $17,665, relating to a Venezuelan remeasurement loss.
In the three months ended March 31, 2013, special items include net charges of $860 and $197 in the North America Welding and Asia Pacific Welding segments, respectively, and a net gain of $6 in the Europe Welding segment primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The South America Welding segment special items represent charges of $9,660, relating to the devaluation of Venezuelan currency.