XML 25 R14.htm IDEA: XBRL DOCUMENT v3.21.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2021
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 5 — 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:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

The Harris

​

​

​

​

​

​

​

​

Americas

​

International

​

Products

​

Corporate /

​

​

​

​

    

Welding

    

Welding

    

Group

    

Eliminations

    

Consolidated

Three Months Ended June 30, 2021

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Net sales

​

$

457,468

​

$

252,352

​

$

116,634

​

$

—

​

$

826,454

Inter-segment sales

​

 

39,765

​

​

6,897

​

​

2,284

​

​

(48,946)

​

​

—

Total

​

$

497,233

​

$

259,249

​

$

118,918

​

$

(48,946)

​

$

826,454

Adjusted EBIT

​

$

84,134

​

$

29,997

​

$

18,212

​

$

(3,888)

​

$

128,455

Special items charge (gain) (1)

​

 

1,650

​

​

2,471

​

​

—

​

​

810

​

​

4,931

EBIT

​

$

82,484

​

$

27,526

​

$

18,212

​

$

(4,698)

​

$

123,524

Interest income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

398

Interest expense

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(6,061)

Income before income taxes

​

​

​

​

 

​

​

 

​

​

 

​

​

$

117,861

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2020

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Net sales

​

$

333,229

​

$

177,167

​

$

80,331

​

$

—

​

$

590,727

Inter-segment sales

​

 

27,493

​

 

4,286

​

 

1,753

​

 

(33,532)

​

​

—

Total

​

$

360,722

​

$

181,453

​

$

82,084

​

$

(33,532)

​

$

590,727

Adjusted EBIT

​

$

46,702

​

$

9,682

​

$

11,713

​

$

(1,964)

​

$

66,133

Special items charge (gain) (2)

​

 

26,007

​

 

565

​

 

—

​

 

—

​

​

26,572

EBIT

​

$

20,695

​

$

9,117

​

$

11,713

​

$

(1,964)

​

$

39,561

Interest income

​

​

​

​

 

  

​

 

  

​

 

  

​

 

424

Interest expense

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(6,305)

Income before income taxes

​

​

​

​

 

  

​

 

  

​

 

  

​

$

33,680

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2021

​

 

​

​

​

​

​

​

​

​

​

​

​

 

  

Net sales

​

$

882,710

​

$

475,431

​

$

225,334

​

$

—

​

$

1,583,475

Inter-segment sales

​

 

72,513

​

 

11,182

​

 

4,431

​

 

(88,126)

​

​

—

Total

​

$

955,223

​

$

486,613

​

$

229,765

​

$

(88,126)

​

$

1,583,475

Adjusted EBIT

​

$

160,751

​

$

48,813

​

$

36,909

​

$

(5,344)

​

$

241,129

Special items charge (gain) (1)

​

 

6,090

​

 

7,080

​

 

—

​

 

1,923

​

​

15,093

EBIT

​

$

154,661

​

$

41,733

​

$

36,909

​

$

(7,267)

​

$

226,036

Interest income

​

​

​

​

 

  

​

 

  

​

 

  

​

 

852

Interest expense

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(11,874)

Income before income taxes

​

​

​

​

 

  

​

 

  

​

 

  

​

$

215,014

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2020

​

 

​

​

​

​

​

​

​

​

​

​

​

 

  

Net sales

​

$

751,764

​

$

375,090

​

$

165,864

​

$

—

​

$

1,292,718

Inter-segment sales

​

 

52,276

​

 

8,769

​

 

3,478

​

 

(64,523)

​

​

—

Total

​

$

804,040

​

$

383,859

​

$

169,342

​

$

(64,523)

​

$

1,292,718

Adjusted EBIT

​

$

117,404

​

$

16,297

​

$

24,205

​

$

(3,063)

​

$

154,843

Special items charge (gain) (2)

​

 

27,197

​

 

6,702

​

 

—

​

 

—

​

​

33,899

EBIT

​

$

90,207

​

$

9,595

​

$

24,205

​

$

(3,063)

​

$

120,944

Interest income

​

​

​

​

 

  

​

 

  

​

 

  

​

 

1,284

Interest expense

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(12,623)

Income before income taxes

​

​

​

​

 

  

​

 

  

​

 

  

​

$

109,605

​

(1)In the three and six months ended June 30, 2021, special items reflect Rationalization and asset impairment charges of $630 and $4,793, respectively, in International Welding, amortization of step up in value of acquired inventories of $1,841 related to the acquisition of Zeman Bauelemente in International Welding and pension settlement charges of $1,650 and $6,536 in Americas Welding, respectively, and $446 in International Welding in the six months ended June 30, 2021. Also in the three and six months ended June 30, 2021, special items reflect acquisition transaction costs of $810 and $1,923, respectively, in Corporate/Eliminations related to an acquisition.
(2)In the three months ended June 30, 2020, special items reflect Rationalization and asset impairment charges of $22,673 and $565 in Americas Welding and International Welding, respectively, and pension settlement charges of $3,334 in Americas Welding. In the six months ended June 30, 2020, special items reflect Rationalization and asset impairment charges of $23,863 and $5,896 in Americas Welding and International Welding, respectively, amortization of step up in value of acquired inventories of $806 related to an acquisition in International Welding and pension settlement charges of $3,334 in Americas Welding.