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 primarily 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 Asia Pacific Welding segment primarily includes welding operations in China and Australia. The South America Welding segment primarily includes welding operations in Brazil, Colombia and Venezuela. 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, 2015
Net sales	$	412,988		$	88,416	$	49,250		$	37,430		$	69,816	$	—		$	657,900
Inter-segment sales	26,129			3,593		3,270			—			2,011		(35,003		)	—
Total	$	439,117		$	92,009	$	52,520		$	37,430		$	71,827	$	(35,003	)	$	657,900
EBIT, as adjusted	$	71,184		$	8,748	$	3,128		$	3,150		$	7,549	$	199		$	93,958
Special items charge (gain)	—			—		—			—			—		—			—
EBIT	$	71,184		$	8,748	$	3,128		$	3,150		$	7,549	$	199		$	93,958
Interest income																	593
Interest expense																	(1,844		)
Income before income taxes																	$	92,707
Total assets	$	1,137,981		$	346,628	$	271,207		$	136,021		$	147,121	$	(117,450	)	$	1,921,508
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 charge (gain)	(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

In the three months ended March 31, 2014, special items in North America Welding, Asia Pacific Welding and Europe Welding reflect rationalization activity charges and credits. South America Welding special items represent a charge relating to a Venezuelan remeasurement loss.