SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2015

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 September 30, 2015
Net sales	$	408,416		$	80,596		$	45,505		$	47,727		$	62,922	$	—		$	645,166
Inter-segment sales	28,055			4,631			2,794			36			2,307		(37,823		)	—
Total	$	436,471		$	85,227		$	48,299		$	47,763		$	65,229	$	(37,823	)	$	645,166
EBIT, as adjusted	$	79,743		$	8,337		$	2,006		$	1,845		$	6,422	$	(646	)	$	97,707
Special items charge (gain)	149,404			268			4,944			26,506			—		—			181,122
EBIT	$	(69,661	)	$	8,069		$	(2,938	)	$	(24,661	)	$	6,422	$	(646	)	$	(83,415	)
Interest income																		692
Interest expense																		(5,803		)
Income (loss) before income taxes																		$	(88,526	)
Three Months Ended September 30, 2014
Net sales	$	439,621		$	107,507		$	57,404		$	32,862		$	78,383	$	—		$	715,777
Inter-segment sales	30,365			4,533			3,595			9			2,009		(40,511		)	—
Total	$	469,986		$	112,040		$	60,999		$	32,871		$	80,392	$	(40,511	)	$	715,777
EBIT, as adjusted	$	84,450		$	15,221		$	(304	)	$	(590	)	$	8,947	$	(324	)	$	107,400
Special items charge (gain)	—			(81		)	28,567			582			—		—			29,068
EBIT	$	84,450		$	15,302		$	(28,871	)	$	(1,172	)	$	8,947	$	(324	)	$	78,332
Interest income																		627
Interest expense																		(1,174		)
Income (loss) before income taxes																		$	77,785
Nine Months Ended September 30, 2015
Net sales	$	1,236,479		$	259,915		$	143,798		$	123,064		$	204,550	$	—		$	1,967,806
Inter-segment sales	79,797			12,687			9,028			154			7,034		(108,700		)	—
Total	$	1,316,276		$	272,602		$	152,826		$	123,218		$	211,584	$	(108,700	)	$	1,967,806
EBIT, as adjusted	$	228,421		$	26,566		$	7,378		$	6,373		$	22,221	$	28		$	290,987
Special items charge (gain)	149,404			1,507			4,944			26,506			—		—			182,361
EBIT	$	79,017		$	25,059		$	2,434		$	(20,133	)	$	22,221	$	28		$	108,626
Interest income																		2,023
Interest expense																		(12,034		)
Income (loss) before income taxes																		$	98,615
Total assets	$	1,139,513		$	325,477		$	267,507		$	85,755		$	145,436	$	(35,597	)	$	1,928,091
Nine months ended September 30, 2014
Net sales	$	1,271,017		$	328,487		$	185,687		$	115,906		$	228,273	$	—		$	2,129,370
Inter-segment sales	96,668			15,887			11,644			73			6,389		(130,661		)	—
Total	$	1,367,685		$	344,374		$	197,331		$	115,979		$	234,662	$	(130,661	)	$	2,129,370
EBIT, as adjusted	$	247,009		$	39,412		$	(579	)	$	16,170		$	22,183	$	3,167		$	327,362
Special items charge (gain)	(68		)	923			28,450			21,715			—		—			51,020
EBIT	$	247,077		$	38,489		$	(29,029	)	$	(5,545	)	$	22,183	$	3,167		$	276,342
Interest income																		2,465
Interest expense																		(3,730		)
Income (loss) before income taxes																		$	275,077
Total assets	$	1,205,179		$	389,122		$	285,626		$	139,908		$	161,069	$	(68,385	)	$	2,112,519

In the three and nine months ended September 30, 2015, special items in Europe Welding and Asia Pacific Welding reflect rationalization activity charges. North America Welding special items include rationalization activity charges, charges related to pension settlements and charges related to the impairment of long-lived assets and goodwill. South America Welding special items reflect Venezuelan foreign exchange remeasurement losses related to the adoption of a new foreign exchange mechanism.

In the three and nine months ended September 30, 2014, special items in North America Welding and Europe Welding reflect rationalization activity charges and credits. Asia Pacific Welding special items reflect net charges related to the impairment of long-lived assets partially offset by gains on the sale of real estate. In the three months ended September 30, 2014, special items in South America Welding reflect rationalization activity charges and in the nine months ended September 30, 2014 reflect rationalization activity charges and Venezuelan foreign exchange remeasurement losses related to the adoption of a new foreign exchange mechanism.