XML 63 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.8

SEGMENT INFORMATION | 9 Months Ended
--- | ---
Sep. 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 September 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 404,113 |  |  | $ | 98,522 |  |  | $ | 63,834 |  |  | $ | 51,715 |  |  | $ | 73,691 |  |  | $ | — |  |  | $ | 691,875 |
Inter-segment sales | 35,355 |  |  | 5,256 |  |  | 3,821 |  |  | 151 |  |  | 2,311 |  |  | (46,894 | ) |  | — |
Total | $ | 439,468 |  |  | $ | 103,778 |  |  | $ | 67,655 |  |  | $ | 51,866 |  |  | $ | 76,002 |  |  | $ | (46,894 | ) |  | $ | 691,875 |
EBIT, as adjusted | $ | 75,225 |  |  | $ | 7,881 |  |  | $ | (979 | ) |  | $ | 15,942 |  |  | $ | 6,917 |  |  | $ | (822 | ) |  | $ | 104,164 |
Special items charge | (17 | ) |  | 1,595 |  |  | 4,724 |  |  | — |  |  | — |  |  | — |  |  | 6,302 |
EBIT | $ | 75,242 |  |  | $ | 6,286 |  |  | $ | (5,703 | ) |  | $ | 15,942 |  |  | $ | 6,917 |  |  | $ | (822 | ) |  | $ | 97,862 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 536 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (558 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 97,840 |
Three Months Ended September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 390,327 |  |  | $ | 104,480 |  |  | $ | 76,263 |  |  | $ | 44,545 |  |  | $ | 81,937 |  |  | $ | — |  |  | $ | 697,552 |
Inter-segment sales | 28,186 |  |  | 3,261 |  |  | 2,748 |  |  | 27 |  |  | 1,869 |  |  | (36,091 | ) |  | — |
Total | $ | 418,513 |  |  | $ | 107,741 |  |  | $ | 79,011 |  |  | $ | 44,572 |  |  | $ | 83,806 |  |  | $ | (36,091 | ) |  | $ | 697,552 |
EBIT, as adjusted | $ | 70,797 |  |  | $ | 8,515 |  |  | $ | 2,054 |  |  | $ | 7,587 |  |  | $ | 7,739 |  |  | $ | (2,620 | ) |  | $ | 94,072 |
Special items charge | 477 |  |  | 1,874 |  |  | 708 |  |  | — |  |  | — |  |  | — |  |  | 3,059 |
EBIT | $ | 70,320 |  |  | $ | 6,641 |  |  | $ | 1,346 |  |  | $ | 7,587 |  |  | $ | 7,739 |  |  | $ | (2,620 | ) |  | $ | 91,013 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 916 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,040 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 90,889 |
Nine Months Ended September 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 1,242,736 |  |  | $ | 317,674 |  |  | $ | 203,112 |  |  | $ | 132,592 |  |  | $ | 241,766 |  |  | $ | — |  |  | $ | 2,137,880 |
Inter-segment sales | 99,869 |  |  | 13,865 |  |  | 12,579 |  |  | 222 |  |  | 7,209 |  |  | (133,744 | ) |  | — |
Total | $ | 1,342,605 |  |  | $ | 331,539 |  |  | $ | 215,691 |  |  | $ | 132,814 |  |  | $ | 248,975 |  |  | $ | (133,744 | ) |  | $ | 2,137,880 |
EBIT, as adjusted | $ | 234,662 |  |  | $ | 28,114 |  |  | $ | 1,967 |  |  | $ | 32,119 |  |  | $ | 21,411 |  |  | $ | (2,963 | ) |  | $ | 315,310 |
Special items charge | 1,109 |  |  | 1,664 |  |  | 5,431 |  |  | 12,198 |  |  | — |  |  | — |  |  | 20,402 |
EBIT | $ | 233,553 |  |  | $ | 26,450 |  |  | $ | (3,464 | ) |  | $ | 19,921 |  |  | $ | 21,411 |  |  | $ | (2,963 | ) |  | $ | 294,908 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,452 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,307 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 295,053 |
Total assets | $ | 979,043 |  |  | $ | 415,387 |  |  | $ | 329,117 |  |  | $ | 145,672 |  |  | $ | 186,474 |  |  | $ | 63,948 |  |  | $ | 2,119,641 |
Nine months ended September 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 1,187,879 |  |  | $ | 344,720 |  |  | $ | 254,259 |  |  | $ | 121,552 |  |  | $ | 260,309 |  |  | $ | — |  |  | $ | 2,168,719 |
Inter-segment sales | 101,386 |  |  | 12,178 |  |  | 11,641 |  |  | 38 |  |  | 6,605 |  |  | (131,848 | ) |  | — |
Total | $ | 1,289,265 |  |  | $ | 356,898 |  |  | $ | 265,900 |  |  | $ | 121,590 |  |  | $ | 266,914 |  |  | $ | (131,848 | ) |  | $ | 2,168,719 |
EBIT, as adjusted | $ | 216,872 |  |  | $ | 32,317 |  |  | $ | 8,641 |  |  | $ | 13,472 |  |  | $ | 23,933 |  |  | $ | (6,882 | ) |  | $ | 288,353 |
Special items charge | 554 |  |  | 2,466 |  |  | 1,297 |  |  | 1,381 |  |  | — |  |  | — |  |  | 5,698 |
EBIT | $ | 216,318 |  |  | $ | 29,851 |  |  | $ | 7,344 |  |  | $ | 12,091 |  |  | $ | 23,933 |  |  | $ | (6,882 | ) |  | $ | 282,655 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,648 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,338 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 281,965 |
Total assets | $ | 909,827 |  |  | $ | 460,586 |  |  | $ | 358,626 |  |  | $ | 128,658 |  |  | $ | 203,536 |  |  | $ | 30,289 |  |  | $ | 2,091,522 |
In the third quarter 2013, special items include net charges of $1,595 and $49 for rationalization actions in the Europe Welding and Asia Pacific Welding segments, respectively, and a net gain of $17 in the North America Welding segment primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The Asia Pacific Welding segment special items also include charges of $4,675 related to impairment of long-lived assets. In the third quarter 2012, special items include charges of $477, $1,914 and $311 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 Asia Pacific Welding segment special items also include a charge of $397 related to asset impairments. In the nine months ended September 30, 2013, special items include net charges of $1,109, $1,664 and $756 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 Asia Pacific Welding segment special items also include charges of $4,675 related to impairment of long-lived assets. The South America Welding segment special items represent charges of $12,198 related to the devaluation of the Venezuelan currency. In the nine months ended September 30, 2012, special items include charges of $554, $2,506 and $900 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 Asia Pacific Welding segment special items also include a charge of $397 related to asset impairments. The South America Welding segment special item represents a charge of $1,381 related to a change in Venezuelan labor law, which provides for increased employee severance obligations.

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration