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SEGMENT INFORMATION | 9 Months Ended
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Sep. 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 September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 454,010 |  |  | $ | 209,622 |  |  | $ | 73,467 |  |  | $ | — |  |  | $ | 737,099 |
Inter-segment sales | 31,845 |  |  | 3,663 |  |  | 1,537 |  |  | (37,045 | ) |  | — |
Total | $ | 485,855 |  |  | $ | 213,285 |  |  | $ | 75,004 |  |  | $ | (37,045 | ) |  | $ | 737,099 |
Adjusted EBIT | $ | 89,253 |  |  | $ | 10,721 |  |  | $ | 8,676 |  |  | $ | (1,099 | ) |  | $ | 107,551 |
Special items charge (gain) (1) | 4,232 |  |  | 2,636 |  |  | — |  |  | 970 |  |  | 7,838 |
EBIT | $ | 85,021 |  |  | $ | 8,085 |  |  | $ | 8,676 |  |  | $ | (2,069 | ) |  | $ | 99,713 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 1,993 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | (5,962 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 95,744 |
Three Months Ended September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 398,289 |  |  | $ | 197,617 |  |  | $ | 73,585 |  |  | $ | — |  |  | $ | 669,491 |
Inter-segment sales | 25,546 |  |  | 5,451 |  |  | 2,064 |  |  | (33,061 | ) |  | — |
Total | $ | 423,835 |  |  | $ | 203,068 |  |  | $ | 75,649 |  |  | $ | (33,061 | ) |  | $ | 669,491 |
Adjusted EBIT | $ | 74,096 |  |  | $ | 10,612 |  |  | $ | 9,244 |  |  | $ | 570 |  |  | $ | 94,522 |
Special items charge (gain) (2) | 5,283 |  |  | 2,314 |  |  | — |  |  | (48,312 | ) |  | (40,715 | )
EBIT | $ | 68,813 |  |  | $ | 8,298 |  |  | $ | 9,244 |  |  | $ | 48,882 |  |  | $ | 135,237 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 1,327 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | (5,922 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 130,642 |
Nine Months Ended September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 1,351,297 |  |  | $ | 700,315 |  |  | $ | 233,235 |  |  | $ | — |  |  | $ | 2,284,847 |
Inter-segment sales | 89,671 |  |  | 13,669 |  |  | 5,447 |  |  | (108,787 | ) |  | — |
Total | $ | 1,440,968 |  |  | $ | 713,984 |  |  | $ | 238,682 |  |  | $ | (108,787 | ) |  | $ | 2,284,847 |
Adjusted EBIT | $ | 254,850 |  |  | $ | 41,970 |  |  | $ | 28,058 |  |  | $ | (4,443 | ) |  | $ | 320,435 |
Special items charge (gain) (1) | 4,990 |  |  | 24,353 |  |  | — |  |  | 3,665 |  |  | 33,008 |
EBIT | $ | 249,860 |  |  | $ | 17,617 |  |  | $ | 28,058 |  |  | $ | (8,108 | ) |  | $ | 287,427 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 5,273 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | (18,495 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 274,205 |
Nine Months Ended September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 1,186,760 |  |  | $ | 468,003 |  |  | $ | 222,483 |  |  | $ | — |  |  | $ | 1,877,246 |
Inter-segment sales | 75,380 |  |  | 15,214 |  |  | 6,763 |  |  | (97,357 | ) |  | — |
Total | $ | 1,262,140 |  |  | $ | 483,217 |  |  | $ | 229,246 |  |  | $ | (97,357 | ) |  | $ | 1,877,246 |
Adjusted EBIT | $ | 217,317 |  |  | $ | 29,713 |  |  | $ | 27,491 |  |  | $ | 369 |  |  | $ | 274,890 |
Special items charge (gain) (2) | 5,283 |  |  | 2,314 |  |  | — |  |  | (40,199 | ) |  | (32,602 | )
EBIT | $ | 212,034 |  |  | $ | 27,399 |  |  | $ | 27,491 |  |  | $ | 40,568 |  |  | $ | 307,492 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 3,349 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | (18,333 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 292,508 |
(1) | In the three months ended September 30, 2018, special items reflect pension settlement charges of $4,232 in Americas Welding, rationalization and asset impairment charges of $2,636 in International Welding and transaction and integration costs of $970 in Corporate / Eliminations related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements. In the nine months ended September 30, 2018, special items reflect pension settlement charges of $4,990 in Americas Welding, rationalization and asset impairment charges of $24,353 in International Welding and transaction and integration costs of $3,665 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 nine months ended September 30, 2017, special items reflect pension settlement charges of $5,283 in Americas Welding, amortization of step up in value of acquired inventories of $2,314 in International Welding and transaction and integration costs of $3,273 and $11,386, respectively, offset by a bargain purchase gain of $51,585 in Corporate / Eliminations related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements.

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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