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SEGMENT INFORMATION
 6 Months Ended
Jun. 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 June 30, 2015
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
415,075

 
$
90,903

 
$
49,043

 
$
37,907

 
$
71,812

 
$
—

 
$
664,740

Inter-segment sales
25,613

 
4,463

 
2,964

 
118

 
2,716

 
(35,874
)
 
—

Total
$
440,688

 
$
95,366

 
$
52,007

 
$
38,025

 
$
74,528

 
$
(35,874
)
 
$
664,740

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
77,494

 
$
9,481

 
$
2,244

 
$
1,378

 
$
8,250

 
$
475

 
$
99,322

Special items charge (gain)
—

 
1,239

 
—

 
—

 
—

 
—

 
1,239

EBIT
$
77,494

 
$
8,242

 
$
2,244

 
$
1,378

 
$
8,250

 
$
475

 
$
98,083

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
738

Interest expense
 

 
 

 
 

 
 

 
 

 
 

 
(4,387
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
94,434

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
429,490

 
$
115,574

 
$
66,997

 
$
39,051

 
$
77,419

 
$
—

 
$
728,531

Inter-segment sales
33,360

 
5,494

 
3,600

 
35

 
2,262

 
(44,751
)
 
—

Total
$
462,850

 
$
121,068

 
$
70,597

 
$
39,086

 
$
79,681

 
$
(44,751
)
 
$
728,531

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
91,195

 
$
14,899

 
$
365

 
$
4,995

 
$
7,178

 
$
600

 
$
119,232

Special items charge (gain)
(21
)
 
965

 
(108
)
 
3,468

 
—

 
—

 
4,304

EBIT
$
91,216

 
$
13,934

 
$
473

 
$
1,527

 
$
7,178

 
$
600

 
$
114,928

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
924

Interest expense
 

 
 

 
 

 
 

 
 

 
 

 
(986
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
114,866

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
828,063

 
$
179,319

 
$
98,293

 
$
75,337

 
$
141,628

 
$
—

 
$
1,322,640

Inter-segment sales
51,742

 
8,056

 
6,234

 
118

 
4,727

 
(70,877
)
 
—

Total
$
879,805

 
$
187,375

 
$
104,527

 
$
75,455

 
$
146,355

 
$
(70,877
)
 
$
1,322,640

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
148,678

 
$
18,229

 
$
5,372

 
$
4,528

 
$
15,799

 
$
674

 
$
193,280

Special items charge (gain)
—

 
1,239

 
—

 
—

 
—

 
—

 
1,239

EBIT
$
148,678

 
$
16,990

 
$
5,372

 
$
4,528

 
$
15,799

 
$
674

 
$
192,041

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
1,331

Interest expense
 

 
 

 
 

 
 

 
 

 
 
 
(6,231
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
187,141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,143,024

 
$
355,965

 
$
270,560

 
$
132,849

 
$
149,983

 
$
(102,215
)
 
$
1,950,166

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales
$
831,396

 
$
220,980

 
$
128,283

 
$
83,044

 
$
149,890

 
$
—

 
$
1,413,593

Inter-segment sales
66,303

 
11,354

 
8,049

 
64

 
4,380

 
(90,150
)
 
—

Total
$
897,699

 
$
232,334

 
$
136,332

 
$
83,108

 
$
154,270

 
$
(90,150
)
 
$
1,413,593

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBIT, as adjusted
$
162,559

 
$
24,191

 
$
(275
)
 
$
16,760

 
$
13,236

 
$
3,491

 
$
219,962

Special items charge (gain)
(68
)
 
1,004

 
(117
)
 
21,133

 
—

 
—

 
21,952

EBIT
$
162,627

 
$
23,187

 
$
(158
)
 
$
(4,373
)
 
$
13,236

 
$
3,491

 
$
198,010

Interest income
 

 
 

 
 

 
 

 
 

 
 

 
1,838

Interest expense
 

 
 

 
 

 
 

 
 

 
 

 
(2,556
)
Income before income taxes
 

 
 

 
 

 
 

 
 

 
 

 
$
197,292

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
1,150,833

 
$
418,283

 
$
319,965

 
$
149,430

 
$
172,781

 
$
(66,453
)
 
$
2,144,839


In the three and six months ended June 30, 2015, special items in Europe Welding reflect rationalization activity charges.
In the three and six months ended June 30, 2014, special items in North America Welding, Europe Welding and Asia Pacific Welding reflect rationalization activity charges and credits. South America Welding special items represent charges relating to a Venezuelan remeasurement loss.