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SEGMENT INFORMATION
 9 Months Ended
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.