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SEGMENT INFORMATION
 12 Months Ended
Dec. 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 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. The accounting principles applied at the operating segment level are generally the same as those applied at the consolidated financial statement level with the exception of LIFO. Segment assets include inventories measured on a FIFO basis while consolidated inventories include inventories reported on a LIFO basis. Segment and consolidated income before interest and income taxes include the effect of inventories reported on a LIFO basis. At December 31, 2014, 2013 and 2012, approximately 40%, 38% and 34%, respectively, of total inventories were valued using the LIFO method. LIFO is used for certain domestic inventories included in the North America Welding segment. Inter-segment sales are recorded at agreed upon prices that approximate arm's length prices and are eliminated in consolidation. Certain corporate-level expenses are allocated to the operating segments.
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
For the Year Ended
   December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
1,700,924

 
$
425,775

 
$
243,800

 
$
148,595

 
$
294,230

 
$
—

 
$
2,813,324

Inter-segment sales
124,732

 
19,586

 
14,820

 
144

 
8,210

 
(167,492
)
 
$
—

Total
$
1,825,656

 
$
445,361

 
$
258,620

 
$
148,739

 
$
302,440

 
$
(167,492
)
 
$
2,813,324

EBIT, as adjusted
$
335,465

 
$
48,822

 
$
1,321

 
$
15,953

 
$
28,563

 
$
4,216

 
$
434,340

Special items charge (gain)
(68
)
 
904

 
28,635

 
21,715

 
—

 
—

 
$
51,186

EBIT
$
335,533

 
$
47,918

 
$
(27,314
)
 
$
(5,762
)
 
$
28,563

 
$
4,216

 
$
383,154

Interest income
 
 
 
 
 
 
 
 
 
 
 
 
3,093

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(10,434
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
$
375,813

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,111,065

 
$
359,337

 
$
284,573

 
$
138,114

 
$
147,990

 
$
(101,864
)
 
$
1,939,215

Equity investments in affiliates
—

 
23,902

 
—

 
3,579

 
—

 
—

 
$
27,481

Capital expenditures
51,691

 
5,619

 
3,959

 
10,896

 
825

 
—

 
$
72,990

Depreciation and amortization
43,659

 
10,823

 
9,799

 
2,085

 
3,512

 
(271
)
 
$
69,607

For the Year Ended
   December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
1,652,769

 
$
429,548

 
$
266,282

 
$
195,895

 
$
308,177

 
$
—

 
$
2,852,671

Inter-segment sales
127,254

 
19,911

 
14,906

 
233

 
9,605

 
(171,909
)
 
$
—

Total
$
1,780,023

 
$
449,459

 
$
281,188

 
$
196,128

 
$
317,782

 
$
(171,909
)
 
$
2,852,671

EBIT, as adjusted
$
318,507

 
$
36,247

 
$
1,815

 
$
57,306

 
$
27,826

 
$
(4,350
)
 
$
437,351

Special items charge (gain)
1,052

 
2,045

 
6,071

 
12,198

 
—

 
—

 
$
21,366

EBIT
$
317,455

 
$
34,202

 
$
(4,256
)
 
$
45,108

 
$
27,826

 
$
(4,350
)
 
$
415,985

Interest income
 
 
 
 
 
 
 
 
 
 
 
 
3,320

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(2,864
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
$
416,441

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,048,412

 
$
403,094

 
$
325,656

 
$
169,027

 
$
162,496

 
$
43,182

 
$
2,151,867

Equity investments in affiliates
—

 
23,315

 
—

 
3,303

 
—

 
—

 
$
26,618

Capital expenditures
41,181

 
10,305

 
2,073

 
20,840

 
3,931

 
(2,315
)
 
$
76,015

Depreciation and amortization
39,086

 
10,933

 
13,559

 
1,893

 
3,636

 
(224
)
 
$
68,883

For the Year Ended
   December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
1,580,818

 
$
452,227

 
$
324,482

 
$
161,483

 
$
334,357

 
$
—

 
$
2,853,367

Inter-segment sales
131,062

 
16,048

 
14,829

 
38

 
8,549

 
(170,526
)
 
$
—

Total
$
1,711,880

 
$
468,275

 
$
339,311

 
$
161,521

 
$
342,906

 
$
(170,526
)
 
$
2,853,367

EBIT, as adjusted
$
293,070

 
$
37,299

 
$
7,247

 
$
18,301

 
$
29,477

 
$
(4,886
)
 
$
380,508

Special items charge (gain)
827

 
3,534

 
4,993

 
1,381

 
—

 
—

 
$
10,735

EBIT
$
292,243

 
$
33,765

 
$
2,254

 
$
16,920

 
$
29,477

 
$
(4,886
)
 
$
369,773

Interest income
 
 
 
 
 
 
 
 
 
 
 
 
3,988

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(4,191
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
 
 
$
369,570

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
980,093

 
$
451,654

 
$
350,189

 
$
134,650

 
$
195,881

 
$
(22,604
)
 
$
2,089,863

Equity investments in affiliates
—

 
21,798

 
—

 
2,808

 
—

 
—

 
$
24,606

Capital expenditures
36,834

 
5,372

 
8,833

 
899

 
831

 
(54
)
 
$
52,715

Depreciation and amortization
33,479

 
11,008

 
15,102

 
1,878

 
3,934

 
(67
)
 
$
65,334




In 2014, special items include net gains of $68 and $184 in the North America Welding and Asia Pacific Welding segments, and net charges of $911 and $582 in the Europe Welding and South America 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 $32,742 related to impairment of long-lived assets and a gain of $3,923 related to the sale of assets. The South America Welding segment special items also include Venezuelan foreign exchange remeasurement losses of $21,133 related to the adoption of a new foreign exchange mechanism in the first quarter.
In 2013, special items include net charges of $1,052, $2,045 and $922 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 $4,444 related to the impairment of long-lived assets and a charge of $705 related to a loss on the sale of land. The South America Welding segment special items represents a charge of $12,198 related to the devaluation of the Venezuelan currency.
In 2012, special items include net charges of $827, $3,637 and $3,151 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 $1,842 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.
Export sales (excluding inter-company sales) from the United States were $210,325 in 2014, $260,195 in 2013 and $268,331 in 2012. No individual customer comprised more than 10% of the Company's total revenues for any of the three years ended December 31, 2014.
The geographic split of the Company's Net sales, based on the location of the customer, and property, plant and equipment were as follows:
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
Net sales:
 
 
 
 
 
 
United States
 
$
1,417,750

 
$
1,350,309

 
$
1,283,066

China
 
190,035

 
219,490

 
229,996

Other foreign countries
 
1,205,539

 
1,282,872

 
1,340,305

Total
 
$
2,813,324

 
$
2,852,671

 
$
2,853,367

 
 
December 31,
 
 
2014
 
2013
 
2012
Property, plant and equipment, net:
 
 
 
 
 
 
United States
 
$
171,746

 
$
162,357

 
$
170,831

China
 
56,247

 
83,416

 
92,744

Other foreign countries
 
209,640

 
238,685

 
223,050

Eliminations
 
(424
)
 
(453
)
 
(389
)
Total
 
$
437,209

 
$
484,005

 
$
486,236