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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2013
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 June 30, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
419,069

 
$
108,661

 
$
69,239

 
$
44,503

 
$
85,960

 
$
—

 
$
727,432

Inter-segment sales
35,529

 
4,330

 
4,374

 
51

 
2,674

 
(46,958
)
 
—

Total
$
454,598

 
$
112,991

 
$
73,613

 
$
44,554

 
$
88,634

 
$
(46,958
)
 
$
727,432

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
82,777

 
$
9,532

 
$
653

 
$
11,065

 
$
7,343

 
$
(1,538
)
 
$
109,832

Special items charge
266

 
75

 
510

 
2,538

 
—

 
—

 
3,389

EBIT
$
82,511

 
$
9,457

 
$
143

 
$
8,527

 
$
7,343

 
$
(1,538
)
 
$
106,443

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
890

Interest expense
 

 
 

 
 

 
 

 
 

 
 

 
(799
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
106,534

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2012
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
416,223

 
$
114,437

 
$
85,433

 
$
37,169

 
$
90,783

 
$
—

 
$
744,045

Inter-segment sales
39,658

 
4,466

 
5,076

 
11

 
2,353

 
(51,564
)
 
—

Total
$
455,881

 
$
118,903

 
$
90,509

 
$
37,180

 
$
93,136

 
$
(51,564
)
 
$
744,045

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
76,556

 
$
10,991

 
$
4,014

 
$
2,980

 
$
9,041

 
$
(2,509
)
 
$
101,073

Special items charge
77

 
592

 
589

 
1,381

 
—

 
—

 
2,639

EBIT
$
76,479

 
$
10,399

 
$
3,425

 
$
1,599

 
$
9,041

 
$
(2,509
)
 
$
98,434

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
849

Interest expense
 

 
 

 
 

 
 

 
 

 
 

 
(1,126
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
98,157

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
838,623

 
$
219,152

 
$
139,278

 
$
80,877

 
$
168,075

 
$
—

 
$
1,446,005

Inter-segment sales
64,514

 
8,609

 
8,758

 
71

 
4,898

 
(86,850
)
 
—

Total
$
903,137

 
$
227,761

 
$
148,036

 
$
80,948

 
$
172,973

 
$
(86,850
)
 
$
1,446,005

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
159,437

 
$
20,233

 
$
2,946

 
$
16,177

 
$
14,494

 
$
(2,141
)
 
$
211,146

Special items charge
1,126

 
69

 
707

 
12,198

 
—

 
—

 
14,100

EBIT
$
158,311

 
$
20,164

 
$
2,239

 
$
3,979

 
$
14,494

 
$
(2,141
)
 
$
197,046

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
1,916

Interest expense
 

 
 

 
 

 
 

 
 

 
 
 
(1,749
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
197,213

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,000,724

 
$
446,142

 
$
339,657

 
$
124,841

 
$
187,475

 
$
(38,722
)
 
$
2,060,117

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2012
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
797,552

 
$
240,240

 
$
177,996

 
$
77,007

 
$
178,372

 
$
—

 
$
1,471,167

Inter-segment sales
73,200

 
8,917

 
8,893

 
11

 
4,736

 
(95,757
)
 
—

Total
$
870,752

 
$
249,157

 
$
186,889

 
$
77,018

 
$
183,108

 
$
(95,757
)
 
$
1,471,167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
146,075

 
$
23,802

 
$
6,587

 
$
5,885

 
$
16,194

 
$
(4,262
)
 
$
194,281

Special items charge
77

 
592

 
589

 
1,381

 
—

 
—

 
2,639

EBIT
$
145,998

 
$
23,210

 
$
5,998

 
$
4,504

 
$
16,194

 
$
(4,262
)
 
$
191,642

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
1,732

Interest expense
 

 
 

 
 

 
 

 
 

 
 

 
(2,298
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
191,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
897,248

 
$
453,089

 
$
365,494

 
$
124,093

 
$
200,676

 
$
(18,612
)
 
$
2,021,988


In the second quarter 2013, special items include net charges of $266, $75 and $510 for rationalization actions in the North America Welding, Europe Welding and Asia Pacific Welding segments, respectively, 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 $2,538, relating to the devaluation of the Venezuelan currency.
In the second quarter 2012, special items include charges of $77, $592 and $589 for rationalization actions in the North America Welding, Europe Welding and Asia Pacific Welding segments, respectively, primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The South America Welding segment special item represents a charge of $1,381, relating to a change in Venezuelan labor law, which provides for increased employee severance obligations.
In the six months ended June 30, 2013, special items include net charges of $1,126, $69 and $707 in the North America Welding, Europe Welding and Asia Pacific Welding segments, respectively, 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 $12,198, relating to the devaluation of the Venezuelan currency.
In the six months ended June 30, 2012, special items include charges of $77, $592 and $589 for rationalization actions in the North America Welding, Europe Welding and Asia Pacific Welding segments, respectively, primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The South America Welding segment special item represents a charge of $1,381, relating to a change in Venezuelan labor law, which provides for increased employee severance obligations.