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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
The Company's business units are aligned into three operating segments. 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 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.
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 Other income (expense). 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, 2018
 

 
 

 
 

 
 

 
 

Net sales
$
462,515

 
$
243,373

 
$
84,164

 
$
—

 
$
790,052

Inter-segment sales
31,240

 
5,497

 
2,003

 
(38,740
)
 
—

Total
$
493,755

 
$
248,870

 
$
86,167

 
$
(38,740
)
 
$
790,052

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
88,158

 
$
16,276

 
$
10,157

 
$
(3,186
)
 
$
111,405

Special items charge (gain) (1)
—

 
11,542

 
—

 
788

 
12,330

EBIT
$
88,158

 
$
4,734

 
$
10,157

 
$
(3,974
)
 
$
99,075

Interest income
 

 
 

 
 

 
 

 
1,808

Interest expense
 

 
 

 
 

 
 

 
(6,620
)
Income before income taxes
 

 
 

 
 

 
 

 
$
94,263

Three Months Ended June 30, 2017
 

 
 

 
 

 
 

 
 

Net sales
$
405,147

 
$
141,498

 
$
80,213

 
$
—

 
$
626,858

Inter-segment sales
27,374

 
5,478

 
2,399

 
(35,251
)
 
—

Total
$
432,521

 
$
146,976

 
$
82,612

 
$
(35,251
)
 
$
626,858

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
74,498

 
$
9,496

 
$
9,787

 
$
(265
)
 
$
93,516

Special items charge (gain) (2)
—

 
—

 
—

 
4,498

 
4,498

EBIT
$
74,498

 
$
9,496

 
$
9,787

 
$
(4,763
)
 
$
89,018

Interest income
 

 
 

 
 

 
 

 
1,245

Interest expense
 

 
 

 
 

 
 

 
(6,297
)
Income before income taxes
 

 
 

 
 

 
 

 
$
83,966

Six Months Ended June 30, 2018
 

 
 

 
 

 
 

 
 

Net sales
$
897,287

 
$
490,693

 
$
159,768

 
$
—

 
$
1,547,748

Inter-segment sales
57,826

 
10,006

 
3,910

 
(71,742
)
 
—

Total
$
955,113

 
$
500,699

 
$
163,678

 
$
(71,742
)
 
$
1,547,748

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
165,597

 
$
31,249

 
$
19,382

 
$
(3,344
)
 
$
212,884

Special items charge (gain) (1)
758

 
21,717

 
—

 
2,695

 
25,170

EBIT
$
164,839

 
$
9,532

 
$
19,382

 
$
(6,039
)
 
$
187,714

Interest income
 

 
 

 
 

 
 

 
3,280

Interest expense
 

 
 

 
 

 
 
 
(12,533
)
Income before income taxes
 

 
 

 
 

 
 

 
$
178,461

Six Months Ended June 30, 2017
 

 
 

 
 

 
 

 
 

Net sales
$
788,471

 
$
270,386

 
$
148,898

 
$
—

 
$
1,207,755

Inter-segment sales
49,834

 
9,763

 
4,699

 
(64,296
)
 
—

Total
$
838,305

 
$
280,149

 
$
153,597

 
$
(64,296
)
 
$
1,207,755

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
143,221

 
$
19,101

 
$
18,247

 
$
(201
)
 
$
180,368

Special items charge (gain) (2)
—

 
—

 
—

 
8,113

 
8,113

EBIT
$
143,221

 
$
19,101

 
$
18,247

 
$
(8,314
)
 
$
172,255

Interest income
 

 
 

 
 

 
 

 
2,022

Interest expense
 

 
 

 
 

 
 

 
(12,411
)
Income before income taxes
 

 
 

 
 

 
 

 
$
161,866




(1)
In the three months ended June 30, 2018, special items reflect rationalization and asset impairment charges of $11,542 in International Welding and transaction and integration costs of $788 in Corporate/Eliminations related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements. In the six months ended June 30, 2018, special items reflect pension settlement charges of $758 in Americas Welding, rationalization and asset impairment charges of $21,717 in International Welding and transaction and integration costs of $2,695 in Corporate / Eliminations related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements.
(2)
In the three and six months ended June 30, 2017, special items in Corporate / Eliminations reflect transaction and integration costs of $4,498 and $8,113, respectively, related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements.