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SEGMENT INFORMATION
 9 Months Ended
Sep. 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:

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The Harris

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​

​

​

​

​

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Americas

​

International

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Products

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Corporate /

​

​

​

​

    

Welding

    

Welding

    

Group

    

Eliminations

    

Consolidated

Three Months Ended September 30, 2021

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Net sales

​

$

461,508

​

$

227,165

​

$

117,781

​

$

—

​

$

806,454

Inter-segment sales

​

 

37,480

​

​

7,078

​

​

1,945

​

​

(46,503)

​

​

—

Total

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$

498,988

​

$

234,243

​

$

119,726

​

$

(46,503)

​

$

806,454

Adjusted EBIT

​

$

84,557

​

$

29,032

​

$

15,980

​

$

(4,704)

​

$

124,865

Special items charge (gain) (1)

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73,574

​

​

6,615

​

​

547

​

​

—

​

​

80,736

EBIT

​

$

10,983

​

$

22,417

​

$

15,433

​

$

(4,704)

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$

44,129

Interest income

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​

​

​

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​

333

Interest expense

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​

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(6,047)

Income before income taxes

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​

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​

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​

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$

38,415

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2020

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​

 

  

​

 

  

​

 

  

​

 

  

Net sales

​

$

371,535

​

$

196,937

​

$

100,416

​

$

—

​

$

668,888

Inter-segment sales

​

 

29,368

​

 

4,898

​

 

1,898

​

 

(36,164)

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​

—

Total

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$

400,903

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$

201,835

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$

102,314

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$

(36,164)

​

$

668,888

Adjusted EBIT

​

$

59,120

​

$

13,432

​

$

17,587

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$

(1,839)

​

$

88,300

Special items charge (gain) (2)

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7,044

​

 

2,401

​

 

—

​

 

—

​

​

9,445

EBIT

​

$

52,076

​

$

11,031

​

$

17,587

​

$

(1,839)

​

$

78,855

Interest income

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​

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​

 

  

​

 

  

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293

Interest expense

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​

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​

 

  

​

 

  

​

 

(5,845)

Income before income taxes

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​

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​

 

  

​

 

  

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$

73,303

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​

​

​

​

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​

Nine Months Ended September 30, 2021

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Net sales

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$

1,344,218

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$

702,596

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$

343,115

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$

—

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$

2,389,929

Inter-segment sales

​

 

109,993

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18,260

​

 

6,376

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(134,629)

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​

—

Total

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$

1,454,211

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$

720,856

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$

349,491

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$

(134,629)

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$

2,389,929

Adjusted EBIT

​

$

245,308

​

$

77,845

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$

52,889

​

$

(10,048)

​

$

365,994

Special items charge (gain) (1)

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79,664

​

 

13,695

​

 

547

​

 

1,923

​

​

95,829

EBIT

​

$

165,644

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$

64,150

​

$

52,342

​

$

(11,971)

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$

270,165

Interest income

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​

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​

 

  

​

 

  

​

 

1,185

Interest expense

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​

​

​

 

  

​

 

  

​

 

  

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(17,921)

Income before income taxes

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​

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​

 

  

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$

253,429

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​

​

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​

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​

Nine Months Ended September 30, 2020

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Net sales

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$

1,123,299

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$

572,027

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$

266,280

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$

—

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$

1,961,606

Inter-segment sales

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81,644

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13,667

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5,376

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(100,687)

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—

Total

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$

1,204,943

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$

585,694

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$

271,656

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$

(100,687)

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$

1,961,606

Adjusted EBIT

​

$

176,524

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$

29,729

​

$

41,792

​

$

(4,902)

​

$

243,143

Special items charge (gain) (2)

​

 

34,241

​

 

9,103

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—

​

 

—

​

​

43,344

EBIT

​

$

142,283

​

$

20,626

​

$

41,792

​

$

(4,902)

​

$

199,799

Interest income

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​

​

​

 

  

​

 

  

​

 

  

​

 

1,576

Interest expense

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​

​

​

 

  

​

 

  

​

 

  

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(18,467)

Income before income taxes

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​

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​

 

  

​

 

  

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$

182,908

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(1)In the three and nine months ended September 30, 2021, special items reflect Rationalization and asset impairment charges of $3,484 and $8,277, respectively, primarily in International Welding, amortization of the step up in value of acquired inventories of $3,690 and $5,531, respectively, related to the acquisitions of Zeman Bauelemente in International Welding and FTP and Shoals in The Harris Products Group, pension settlement charges of $73,562 and $79,652, respectively, in Americas Welding and $446 in International Welding in the nine months ended September 30, 2021. Also in the nine months ended September 30, 2021, special items reflect acquisition transaction costs of $1,923 in Corporate/Eliminations related to acquisitions.
(2)In the three months ended September 30, 2020, special items reflect Rationalization and asset impairment charges of $3,856 and $2,401 in Americas Welding and International Welding, respectively, and pension settlement charges of $3,188 in Americas Welding. In the nine months ended September 30, 2020, special items reflect Rationalization and asset impairment charges of $27,719 and $8,297 in Americas Welding and International Welding, respectively, amortization of the step up in value of acquired inventories of $806 related to an acquisition in International Welding and pension settlement charges of $6,522 in Americas Welding.