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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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 June 30, 2023

 

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Net sales

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$

676,966

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$

253,403

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$

130,196

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$

—

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$

1,060,565

Inter-segment sales

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30,850

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8,292

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2,867

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(42,009)

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—

Total

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$

707,816

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$

261,695

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$

133,063

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$

(42,009)

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$

1,060,565

Adjusted EBIT

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$

139,870

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$

33,774

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$

19,510

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$

(2,183)

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$

190,971

Special items charge (gain) (1)

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2,957

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3,255

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—

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—

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6,212

EBIT

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$

136,913

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$

30,519

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$

19,510

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$

(2,183)

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$

184,759

Interest income

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814

Interest expense

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(12,513)

Income before income taxes

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$

173,060

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Three Months Ended June 30, 2022

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Net sales

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$

595,659

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$

236,629

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$

137,301

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$

—

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$

969,589

Inter-segment sales

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29,031

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9,527

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2,866

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(41,424)

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Total

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$

624,690

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$

246,156

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$

140,167

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$

(41,424)

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$

969,589

Adjusted EBIT

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$

118,067

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$

35,009

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$

17,922

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$

(3,983)

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$

167,015

Special items charge (gain) (2)

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461

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154

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—

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—

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615

EBIT

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$

117,606

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$

34,855

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$

17,922

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$

(3,983)

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$

166,400

Interest income

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228

Interest expense

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(6,687)

Income before income taxes

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$

159,941

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Six Months Ended June 30, 2023

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Net sales

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$

1,335,611

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$

505,819

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$

258,478

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$

—

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$

2,099,908

Inter-segment sales

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63,168

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15,045

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5,764

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(83,977)

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Total

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$

1,398,779

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$

520,864

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$

264,242

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$

(83,977)

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$

2,099,908

Adjusted EBIT

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$

272,324

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$

63,371

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$

38,493

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$

(11,586)

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$

362,602

Special items charge (gain) (1)

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5,742

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3,557

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—

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—

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9,299

EBIT

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$

266,582

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$

59,814

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$

38,493

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$

(11,586)

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$

353,303

Interest income

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1,668

Interest expense

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(26,567)

Income before income taxes

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$

328,404

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Six Months Ended June 30, 2022

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Net sales

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$

1,129,714

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$

494,670

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$

270,653

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$

—

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$

1,895,037

Inter-segment sales

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57,187

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15,755

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5,928

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(78,870)

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Total

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$

1,186,901

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$

510,425

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$

276,581

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$

(78,870)

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$

1,895,037

Adjusted EBIT

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$

229,635

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$

72,096

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$

37,520

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$

(8,785)

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$

330,466

Special items charge (gain) (2)

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(3,274)

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1,501

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—

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—

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(1,773)

EBIT

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$

232,909

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$

70,595

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$

37,520

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$

(8,785)

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$

332,239

Interest income

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604

Interest expense

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(13,261)

Income before income taxes

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$

319,582

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(1)In the three and six months ended June 30, 2023, special items include amortization of step up in value of acquired inventories of $2,957 and $5,742 in Americas Welding and $588 and $1,659 in International Welding, respectively, and Rationalization and asset impairment net charges of $2,667 and $3,544 in International Welding. In the six months ended, special items reflect a gain on asset disposal of $1,646 in International Welding.
(2)In the three and six months ended June 30, 2022, special items reflect Rationalization and asset impairment net gains of $998 in Americas Welding and net charges of $154 and $2,039, respectively, in International Welding and amortization of step up in value of acquired inventories of $1,459 in Americas Welding. In the six months ended June 30, 2022, special items reflect the final settlement related to the termination of a pension plan of $3,735 in Americas Welding.