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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2023
SEGMENT INFORMATION  
SEGMENT INFORMATION

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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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Americas

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International

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Products

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Corporate /

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Welding

    

Welding

    

Group

    

Eliminations

    

Consolidated

Three Months Ended March 31, 2023

 

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Net sales

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$

658,645

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$

252,416

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$

128,282

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$

—

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$

1,039,343

Inter-segment sales

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32,318

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6,753

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2,897

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(41,968)

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Total

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$

690,963

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$

259,169

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$

131,179

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$

(41,968)

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$

1,039,343

Adjusted EBIT

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$

132,453

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$

29,598

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$

18,983

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$

(9,374)

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$

171,660

Special items charge (gain) (1)

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2,785

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302

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—

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—

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3,087

EBIT

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$

129,668

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$

29,296

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$

18,983

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$

(9,374)

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$

168,573

Interest income

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854

Interest expense

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(14,055)

Income before income taxes

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$

155,372

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Three Months Ended March 31, 2022

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Net sales

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$

534,055

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$

258,041

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$

133,352

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$

—

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$

925,448

Inter-segment sales

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28,156

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6,228

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3,062

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(37,446)

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Total

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$

562,211

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$

264,269

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$

136,414

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$

(37,446)

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$

925,448

Adjusted EBIT

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$

111,568

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$

37,087

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$

19,598

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$

(4,801)

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$

163,452

Special items charge (gain) (2)

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(3,735)

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1,347

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—

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(2,388)

EBIT

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$

115,303

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$

35,740

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$

19,598

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$

(4,801)

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$

165,840

Interest income

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376

Interest expense

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(6,574)

Income before income taxes

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$

159,642

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(1)In the three months ended March 31, 2023, special items include amortization of step up in value of acquired inventories of $2,785 and $1,071 in Americas and International Welding, respectively, Rationalization and asset impairment net charges of $877 in International Welding and a gain on disposal of $1,646 in International Welding.
(2)In the three months ended March 31, 2022, special items reflect Rationalization charges of $1,885 in International Welding and the final settlement related to the termination of a pension plan of $3,735 in Americas Welding.