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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2020
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 oxy-fuel 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 March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 418,535 |  |  | $ | 197,923 |  |  | $ | 85,533 |  |  | $ | — |  |  | $ | 701,991 |
Inter-segment sales | 24,783 |  |  | 4,483 |  |  | 1,725 |  |  | (30,991 | ) |  | — |
Total | $ | 443,318 |  |  | $ | 202,406 |  |  | $ | 87,258 |  |  | $ | (30,991 | ) |  | $ | 701,991 |
Adjusted EBIT | $ | 70,702 |  |  | $ | 6,615 |  |  | $ | 12,492 |  |  | $ | (1,099 | ) |  | $ | 88,710 |
Special items charge (gain) (1) | 1,190 |  |  | 6,137 |  |  | — |  |  | — |  |  | 7,327 |
EBIT | $ | 69,512 |  |  | $ | 478 |  |  | $ | 12,492 |  |  | $ | (1,099 | ) |  | $ | 81,383 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 860 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  | (6,318 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 75,925 |
Three Months Ended March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 457,719 |  |  | $ | 218,086 |  |  | $ | 83,369 |  |  | $ | — |  |  | $ | 759,174 |
Inter-segment sales | 29,388 |  |  | 4,209 |  |  | 1,867 |  |  | (35,464 | ) |  | — |
Total | $ | 487,107 |  |  | $ | 222,295 |  |  | $ | 85,236 |  |  | $ | (35,464 | ) |  | $ | 759,174 |
Adjusted EBIT | $ | 81,752 |  |  | $ | 13,337 |  |  | $ | 10,519 |  |  | $ | (3,042 | ) |  | $ | 102,566 |
Special items charge (gain) (2) | 1,336 |  |  | 2,199 |  |  | — |  |  | 790 |  |  | 4,325 |
EBIT | $ | 80,416 |  |  | $ | 11,138 |  |  | $ | 10,519 |  |  | $ | (3,832 | ) |  | $ | 98,241 |
Interest income |  |  |  |  |  |  |  |  |  |  |  |  | 964 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  | (6,287 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  | $ | 92,918 |
(1) | In the three months ended March 31, 2020, special items reflect Rationalization and asset impairment charges of $1,190 and $5,331 in Americas Welding and International Welding, respectively, and amortization of step up in value of acquired inventories of $806 related to an acquisition.
(2) In the three months ended March 31, 2019, special items reflect Rationalization and asset impairment charges of $1,336 and $2,199 in Americas Welding and International Welding, respectively, and acquisition transaction and integration costs of $790 in Corporate / Eliminations related to the Air Liquide Welding acquisition.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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