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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2024
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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Americas

​

International

​

Products

​

Corporate /

​

​

​

​

    

Welding

    

Welding

    

Group

    

Eliminations

    

Consolidated

Three Months Ended June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Net sales

​

$

648,936

​

$

238,758

​

$

133,989

​

$

—

​

$

1,021,683

Inter-segment sales

​

 

37,800

​

​

8,849

​

​

3,272

​

​

(49,921)

​

​

—

Total

​

$

686,736

​

$

247,607

​

$

137,261

​

$

(49,921)

​

$

1,021,683

Adjusted EBIT

​

$

136,651

​

$

25,709

​

$

24,923

​

$

(6,264)

​

$

181,019

Special items charge (gain) (1)

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354

​

​

31,234

​

​

(140)

​

​

2,286

​

​

33,734

EBIT

​

$

136,297

​

$

(5,525)

​

$

25,063

​

$

(8,550)

​

$

147,285

Interest income

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​

​

​

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1,972

Interest expense

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(12,633)

Income before income taxes

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​

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​

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​

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$

136,624

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2023

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​

 

  

​

 

  

​

 

  

​

 

  

Net sales

​

$

676,966

​

$

253,403

​

$

130,196

​

$

—

​

$

1,060,565

Inter-segment sales

​

 

30,850

​

 

8,292

​

 

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

​

$

(42,009)

​

$

1,060,565

Adjusted EBIT

​

$

139,870

​

$

33,774

​

$

19,510

​

$

(2,183)

​

$

190,971

Special items charge (2)

​

 

2,957

​

 

3,255

​

 

—

​

 

—

​

​

6,212

EBIT

​

$

136,913

​

$

30,519

​

$

19,510

​

$

(2,183)

​

$

184,759

Interest income

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​

​

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​

 

  

​

 

  

​

 

814

Interest expense

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​

​

​

 

  

​

 

  

​

 

  

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(12,513)

Income before income taxes

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​

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​

 

  

​

 

  

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$

173,060

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​

​

​

​

​

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​

Six Months Ended June 30, 2024

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Net sales

​

$

1,273,035

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$

474,519

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$

255,326

​

$

—

​

$

2,002,880

Inter-segment sales

​

 

67,778

​

 

17,257

​

 

6,365

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(91,400)

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​

—

Total

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$

1,340,813

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$

491,776

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$

261,691

​

$

(91,400)

​

$

2,002,880

Adjusted EBIT

​

$

272,750

​

$

53,486

​

$

44,802

​

$

(16,343)

​

$

354,695

Special items charge (3)

​

 

354

​

 

34,304

​

 

1,396

​

 

4,047

​

​

40,101

EBIT

​

$

272,396

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$

19,182

​

$

43,406

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$

(20,390)

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$

314,594

Interest income

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​

 

  

​

 

  

​

 

5,193

Interest expense

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​

​

​

 

  

​

 

  

​

 

  

​

 

(24,633)

Income before income taxes

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​

​

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​

 

  

​

 

  

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$

295,154

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​

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​

​

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​

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​

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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

​

 

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

​

$

272,324

​

$

63,371

​

$

38,493

​

$

(11,586)

​

$

362,602

Special items charge (4)

​

 

5,742

​

 

3,557

​

 

—

​

 

—

​

​

9,299

EBIT

​

$

266,582

​

$

59,814

​

$

38,493

​

$

(11,586)

​

$

353,303

Interest income

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​

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​

 

  

​

 

  

​

 

1,668

Interest expense

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​

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​

 

  

​

 

  

​

 

(26,567)

Income before income taxes

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​

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​

 

  

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$

328,404

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(1)In the three months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $26,284 in International Welding, primarily due to the impact of the Company’s disposition of its Russian entity, as discussed in Note 6, a loss on asset disposal of $4,950 recorded to Other income (expense) in International Welding and acquisition transaction costs of $2,182 in Corporate/Eliminations.
(2)In the three months ended June 30, 2023, special items include amortization of step up in value of acquired inventories of $2,957 in Americas Welding and $588 in International Welding and Rationalization and asset impairment net charges of $2,667 in International Welding.
(3)In the six months ended June 30, 2024, special items include Rationalization and asset impairment net charges of $29,354 in International Welding, primarily due to the impact of the Company’s disposition of its Russian entity, and $1,396 in The Harris Products Group, as discussed in Note 6, a loss on asset disposal of $4,950 recorded to Other income (expense) in International Welding and acquisition transaction costs of $3,944 in Corporate/Eliminations.
(4)In the six months ended June 30, 2023, special items include amortization of step up in value of acquired inventories of $5,742 in Americas Welding and $1,659 in International Welding, Rationalization and asset impairment net charges of $3,544 in International Welding and a gain on asset disposal of $1,646 in International Welding.