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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.