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SEGMENT INFORMATION | 6 Months Ended
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Jun. 30, 2016
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. Welding products include arc welding power sources, CNC and plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories. The Company's product offering also includes oxy-fuel cutting systems and regulators and torches used in oxy-fuel welding, cutting and brazing. In addition, the Company has a leading global position in the brazing and soldering alloys market. During the first quarter of 2016, the Company realigned its organizational and leadership structure into three operating segments to support growth strategies and enhance the utilization of the Company’s worldwide resources and global sourcing initiatives. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment primarily includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company’s global cutting, soldering and brazing businesses as well as its retail business in the United States. All prior period results have been revised to reflect the realigned segment structure. Segment performance is measured and resources are allocated based on a number of factors, the primary profit measure being adjusted earnings before interest and income taxes (“Adjusted EBIT”). EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. 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:
| Americas Welding |  | International Welding |  | The Harris Products Group |  | Corporate / Eliminations |  | Consolidated
Three Months Ended June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 388,372 |  |  | $ | 132,815 |  |  | $ | 71,231 |  |  | $ | — |  |  | $ | 592,418 |
Inter-segment sales | 23,456 |  |  | 3,841 |  |  | 2,824 |  |  | (30,121 | ) |  | — |
Total | $ | 411,828 |  |  | $ | 136,656 |  |  | $ | 74,055 |  |  | $ | (30,121 | ) |  | $ | 592,418 |
Adjusted EBIT | $ | 65,201 |  |  | $ | 9,670 |  |  | $ | 9,284 |  |  | $ | (298 | ) |  | $ | 83,857 |
Special items charge | — |  |  | — |  |  | — |  |  | 34,348 |  |  | 34,348 |
EBIT | $ | 65,201 |  |  | $ | 9,670 |  |  | $ | 9,284 |  |  | $ | (34,646 | ) |  | $ | 49,509 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 435 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | (4,186 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 45,758 |
Three Months Ended June 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 451,001 |  |  | $ | 141,927 |  |  | $ | 71,812 |  |  | $ | — |  |  | $ | 664,740 |
Inter-segment sales | 23,902 |  |  | 5,311 |  |  | 2,716 |  |  | (31,929 | ) |  | — |
Total | $ | 474,903 |  |  | $ | 147,238 |  |  | $ | 74,528 |  |  | $ | (31,929 | ) |  | $ | 664,740 |
Adjusted EBIT | $ | 79,421 |  |  | $ | 11,017 |  |  | $ | 8,250 |  |  | $ | 634 |  |  | $ | 99,322 |
Special items charge | — |  |  | 1,239 |  |  | — |  |  | — |  |  | 1,239 |
EBIT | $ | 79,421 |  |  | $ | 9,778 |  |  | $ | 8,250 |  |  | $ | 634 |  |  | $ | 98,083 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 738 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | (4,387 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 94,434 |
Six Months Ended June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 747,380 |  |  | $ | 257,120 |  |  | $ | 138,640 |  |  | $ | — |  |  | $ | 1,143,140 |
Inter-segment sales | 47,287 |  |  | 8,267 |  |  | 5,127 |  |  | (60,681 | ) |  | — |
Total | $ | 794,667 |  |  | $ | 265,387 |  |  | $ | 143,767 |  |  | $ | (60,681 | ) |  | $ | 1,143,140 |
Adjusted EBIT | $ | 126,639 |  |  | $ | 15,903 |  |  | $ | 16,995 |  |  | $ | 899 |  |  | $ | 160,436 |
Special items charge | — |  |  | — |  |  | — |  |  | 34,348 |  |  | 34,348 |
EBIT | $ | 126,639 |  |  | $ | 15,903 |  |  | $ | 16,995 |  |  | $ | (33,449 | ) |  | $ | 126,088 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 865 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | (8,013 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 118,940 |
Six months ended June 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 899,838 |  |  | $ | 281,174 |  |  | $ | 141,628 |  |  | $ | — |  |  | $ | 1,322,640 |
Inter-segment sales | 46,925 |  |  | 10,338 |  |  | 4,727 |  |  | (61,990 | ) |  | — |
Total | $ | 946,763 |  |  | $ | 291,512 |  |  | $ | 146,355 |  |  | $ | (61,990 | ) |  | $ | 1,322,640 |
Adjusted EBIT | $ | 154,836 |  |  | $ | 21,951 |  |  | $ | 15,799 |  |  | $ | 694 |  |  | $ | 193,280 |
Special items charge | — |  |  | 1,239 |  |  | — |  |  | — |  |  | 1,239 |
EBIT | $ | 154,836 |  |  | $ | 20,712 |  |  | $ | 15,799 |  |  | $ | 694 |  |  | $ | 192,041 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 1,331 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | (6,231 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 187,141 |
In the three and six months ended June 30, 2016, special items within Corporate/Eliminations reflect a loss on the deconsolidation of the Venezuelan subsidiary. In the three and six months ended June 30, 2015, special items in International Welding reflect rationalization activity charges.

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- 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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 Reference 5: 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=68060357&loc=d3e8380-108599 Reference 6: 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=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 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=68060357&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 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 Reference 13: 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=68060357&loc=d3e8924-108599 Reference 14: 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=68060357&loc=d3e8906-108599 + Details
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