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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2019
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 measure being the adjusted earnings before interest and income taxes (“Adjusted EBIT”) profit measure.  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.
The following table presents Adjusted EBIT by segment:
 
Americas Welding
 
International Welding
 
The Harris
Products Group
 
Corporate /
Eliminations
 
Consolidated
Three Months Ended September 30, 2019
 

 
 

 
 

 
 

 
 

Net sales
$
443,521

 
$
205,378

 
$
81,884

 
$
—

 
$
730,783

Inter-segment sales
31,101

 
4,441

 
1,857

 
(37,399
)
 
—

Total
$
474,622

 
$
209,819

 
$
83,741

 
$
(37,399
)
 
$
730,783

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
74,110

 
$
10,184

 
$
11,038

 
$
(1,632
)
 
$
93,700

Special items charge (gain) (1)
—

 
(4,497
)
 
—

 
—

 
(4,497
)
EBIT
$
74,110

 
$
14,681

 
$
11,038

 
$
(1,632
)
 
$
98,197

Interest income
 

 
 

 
 

 
 

 
491

Interest expense
 

 
 

 
 

 
 

 
(6,891
)
Income before income taxes
 

 
 

 
 

 
 

 
$
91,797

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) (2)
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

Nine Months Ended September 30, 2019
 

 
 

 
 

 
 

 
 

Net sales
$
1,377,847

 
$
635,770

 
$
253,348

 
$
—

 
$
2,266,965

Inter-segment sales
95,300

 
12,838

 
5,837

 
(113,975
)
 
—

Total
$
1,473,147

 
$
648,608

 
$
259,185

 
$
(113,975
)
 
$
2,266,965

 
 
 
 
 
 
 
 
 
 
Adjusted EBIT
$
240,713

 
$
38,699

 
$
35,045

 
$
(8,643
)
 
$
305,814

Special items charge (gain) (1)
3,115

 
(4,925
)
 
—

 
1,804

 
(6
)
EBIT
$
237,598

 
$
43,624

 
$
35,045

 
$
(10,447
)
 
$
305,820

Interest income
 

 
 

 
 

 
 

 
2,047

Interest expense
 

 
 

 
 

 
 
 
(19,668
)
Income before income taxes
 

 
 

 
 

 
 

 
$
288,199

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) (2)
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


(1)
In the three months ended September 30, 2019, special items reflect Rationalization and asset impairment charges of $1,495, amortization of step up in value of acquired inventories of $1,609 related to the acquisition of Askaynak and
gain on change in control of $7,601 related to the acquisition of Askaynak in International Welding. In the nine months ended September 30, 2019, special items reflect Rationalization and asset impairment charges of $1,716 in Americas Welding and $4,621 in International Welding, amortization of step up in value of acquired inventories of $1,399 related to the acquisition of Baker Industries in Americas Welding and $1,609 related to the acquisition of Askaynak in International Welding, gains on disposals of assets of $3,554 in International Welding and acquisition transaction and integration costs of $1,804 in Corporate / Eliminations related to the Air Liquide Welding acquisition and a gain on change in control of $7,601 related to the acquisition of Askaynak.
(2)
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. 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 acquisition transaction and integration costs of $3,665 in Corporate / Eliminations related to the Air Liquide Welding acquisition.