DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 02, 2016 | Jun. 26, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Colfax CORP | ||
Entity Central Index Key | 1,420,800 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | cfx | ||
Entity Common Stock Shares Outstanding | 122,746,447 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4,172 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Statement [Abstract] | ||||
Net sales | [1] | $ 3,967,053 | $ 4,624,476 | $ 4,207,209 |
Cost of sales | 2,715,279 | 3,145,631 | 2,900,987 | |
Gross profit | 1,251,774 | 1,478,845 | 1,306,222 | |
Selling, general and administrative expense | 905,952 | 1,011,171 | 864,328 | |
Restructuring and other related charges | [2] | 61,177 | 58,121 | 35,502 |
Operating income | 284,645 | 409,553 | 406,392 | |
Interest expense | [2] | 47,743 | 51,305 | 103,597 |
Income before income taxes | [2] | 236,902 | 358,248 | 302,795 |
Provision for (benefit from) income taxes | 49,724 | (62,025) | 93,652 | |
Net income | 187,178 | 420,273 | 209,143 | |
Less: income attributable to noncontrolling interest, net of taxes | 19,439 | 28,175 | 30,515 | |
Net income attributable to Colfax Corporation | 167,739 | 392,098 | 178,628 | |
Dividends on preferred stock | 0 | 2,348 | 20,396 | |
Preferred stock conversion inducement payment | 0 | 19,565 | 0 | |
Net income available to Colfax Corporation common shareholders | $ 167,739 | $ 370,185 | $ 158,232 | |
Net income per share- basic | $ 1.35 | $ 3.06 | $ 1.56 | |
Net income per share- diluted | $ 1.34 | $ 3.02 | $ 1.54 | |
[1] | The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. | |||
[2] | The following is a reconciliation of Income before income taxes to segment operating income: |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 187,178 | $ 420,273 | $ 209,143 |
Other comprehensive (loss) income: | |||
Foreign currency translation, net of tax of $751, $1,885 and $(3,634) | (317,909) | (356,243) | 6,210 |
Unrealized gain (loss) on hedging activities, net of tax of $19,349, $4,141 and $404 | 11,659 | 30,404 | (10,404) |
Changes in unrecognized pension and other post-retirement benefits cost, net of tax of $6,373, $(20,117) and $575 | 29,323 | (89,920) | 77,071 |
Changes in deferred tax related to pension and other post-retirement benefit cost | 3,817 | 1,934 | 0 |
Amounts reclassified from Accumulated other comprehensive loss: | |||
Net pension and other post-retirement benefit cost, net of tax of $3,859, $2,063 and $715 | 7,300 | 5,282 | 10,022 |
Other comprehensive (loss) income | (265,810) | (408,543) | 82,899 |
Comprehensive (loss) income | (78,632) | 11,730 | 292,042 |
Less: comprehensive (loss) income attributable to noncontrolling interest | (3,347) | 15,781 | 13,039 |
Comprehensive (loss) income attributable to Colfax Corporation | $ (75,285) | $ (4,051) | $ 279,003 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Parenthetical] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, tax | $ 751 | $ 1,885 | $ (3,634) |
Unrealized gain (loss) on hedging activities, tax | 19,349 | 4,141 | 404 |
Changes in unrecognized pension and other post-retirement benefits cost, tax | 6,373 | (20,117) | 575 |
Net pension and other postretirement benefit cost, tax | $ 3,859 | $ 2,063 | $ 715 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
ASSETS | ||||
Cash and cash equivalents | $ 197,469 | $ 305,448 | ||
Trade receivables, less allowance for doubtful accounts of $39,505 and $27,256 | 888,166 | 1,029,150 | ||
Inventories, net | 420,386 | 442,732 | ||
Other current assets | 253,744 | 296,948 | ||
Total current assets | 1,759,765 | 2,074,278 | ||
Property, plant and equipment, net | [1] | 644,536 | 727,435 | [2],[3] |
Goodwill | 2,817,687 | 2,873,023 | ||
Intangible assets, net | 995,712 | 1,043,583 | ||
Other assets | 515,219 | 493,198 | ||
Total assets | 6,732,919 | 7,211,517 | [4] | |
LIABILITIES AND EQUITY | ||||
Current portion of long-term debt | 5,792 | 9,855 | ||
Accounts payable | 718,893 | 780,287 | ||
Accrued liabilities | 391,659 | 489,983 | [5] | |
Total current liabilities | 1,116,344 | 1,280,125 | ||
Long-term debt, less current portion | 1,411,755 | 1,526,955 | ||
Other liabilities | 948,264 | 1,051,993 | ||
Total liabilities | 3,476,363 | 3,859,073 | ||
Equity: | ||||
Common stock, $0.001 par value; 400,000,000 shares authorized; 123,486,425 and 123,730,578 issued and outstanding | 123 | 124 | ||
Additional paid-in capital | 3,199,267 | 3,200,832 | ||
Retained earnings | 557,300 | 389,561 | ||
Accumulated other comprehensive loss | (686,715) | (443,691) | ||
Total Colfax Corporation equity | 3,069,975 | 3,146,826 | ||
Noncontrolling interest | 186,581 | 205,618 | ||
Total equity | 3,256,556 | 3,352,444 | ||
Total liabilities and equity | $ 6,732,919 | $ 7,211,517 | ||
[1] | As the Company does not allocate all long-lived assets, specifically intangible assets, to each individual country, evaluation of long-lived assets in total is impracticable. | |||
[2] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. | |||
[3] | During the year ended December 31, 2015, the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. | |||
[4] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-03 and ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. | |||
[5] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Trade receivables, allowance for doubtful accounts | $ 39,505 | $ 27,256 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 123,486,425 | 123,730,578 |
Common Stock, Shares, Outstanding | 123,486,425 | 123,730,578 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2012 | $ 2,156,286 | $ 94 | $ 14 | $ 2,197,694 | $ (138,856) | $ (146,594) | $ 243,934 |
Shares, Outstanding at Dec. 31, 2012 | 94,067,418 | 13,877,552 | |||||
Net income attributable to Colfax Corporation | 178,628 | 178,628 | |||||
Net income attributable to noncontrolling interest | 30,515 | 30,515 | |||||
Net income | 209,143 | ||||||
Distributions to noncontrolling owners | (14,260) | (14,260) | |||||
Acquisition of shares held by noncontrolling interest | (14,913) | 955 | (381) | (15,487) | |||
Preferred stock dividend | (20,396) | (20,396) | |||||
Preferred Stock Conversions, Inducements | 0 | ||||||
Other comprehensive income (loss) | $ 82,899 | 100,375 | (17,476) | ||||
Stock issuances, shares | 7,500,000 | 7,500,000 | |||||
Common stock issuances, net of costs | $ 319,898 | $ 8 | 319,890 | ||||
Common stock-based award activity (in shares) | 265,995 | 265,995 | |||||
Common stock-based award activity | $ 17,589 | 17,589 | |||||
Contribution to defined benefit pension plan (in shares) | 88,200 | 88,200 | |||||
Contribution to defined benefit pension plan | $ 4,877 | 4,877 | |||||
Shares, Outstanding at Dec. 31, 2013 | 101,921,613 | 13,877,552 | |||||
Balance at Dec. 31, 2013 | 2,741,123 | $ 102 | $ 14 | 2,541,005 | 19,376 | (46,600) | 227,226 |
Net income attributable to Colfax Corporation | 392,098 | 392,098 | |||||
Net income attributable to noncontrolling interest | 28,175 | 28,175 | |||||
Net income | 420,273 | ||||||
Distributions to noncontrolling owners | (12,007) | (12,007) | |||||
Acquisition of shares held by noncontrolling interest | (10,338) | 15,986 | (942) | (25,382) | |||
Preferred stock dividend | $ (2,348) | (2,348) | |||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | (12,173,291) | 12,173,291 | |||||
Conversion of Stock, Shares Converted | (13,877,552) | (13,877,552) | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 12 | 2 | |||||
Conversion of Stock, Amount Converted | $ (14) | ||||||
Preferred Stock Conversions, Inducements | $ (19,565) | (19,565) | |||||
Other comprehensive income (loss) | $ (408,543) | (396,149) | (12,394) | ||||
Stock issuances, shares | 9,200,000 | 9,200,000 | |||||
Common stock issuances, net of costs | $ 610,363 | $ 9 | 610,354 | ||||
Common stock-based award activity (in shares) | 252,674 | 252,674 | |||||
Common stock-based award activity | $ 21,636 | 21,636 | |||||
Contribution to defined benefit pension plan (in shares) | 183,000 | 183,000 | |||||
Contribution to defined benefit pension plan | $ 11,850 | $ 1 | 11,849 | ||||
Shares, Outstanding at Dec. 31, 2014 | 123,730,578 | 0 | |||||
Balance at Dec. 31, 2014 | 3,352,444 | $ 124 | $ 0 | 3,200,832 | 389,561 | (443,691) | 205,618 |
Net income attributable to Colfax Corporation | 167,739 | 167,739 | |||||
Net income attributable to noncontrolling interest | 19,439 | 19,439 | |||||
Net income | 187,178 | ||||||
Distributions to noncontrolling owners | (15,690) | (15,690) | |||||
Preferred Stock Conversions, Inducements | 0 | ||||||
Other comprehensive income (loss) | $ (265,810) | (243,024) | (22,786) | ||||
Stock repurchase, Shares | (986,279) | (986,279) | |||||
Stock repurchase, Value | $ (27,367) | $ (1) | (27,366) | ||||
Common stock-based award activity (in shares) | 676,126 | 676,126 | |||||
Common stock-based award activity | $ 22,373 | 22,373 | |||||
Contribution to defined benefit pension plan (in shares) | 66,000 | 66,000 | |||||
Contribution to defined benefit pension plan | $ 3,428 | 3,428 | |||||
Shares, Outstanding at Dec. 31, 2015 | 123,486,425 | 0 | |||||
Balance at Dec. 31, 2015 | $ 3,256,556 | $ 123 | $ 0 | $ 3,199,267 | $ 557,300 | $ (686,715) | $ 186,581 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY Consolidated Statements of Equity [Parenthetical] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Issuance Costs | $ 22.1 | $ 12 | |
Common Stock [Member] | |||
Equity Issuance Costs | 22.1 | 12 | |
Accumulated Other Comprehensive Loss [Member] | |||
Other comprehensive income, tax | $ (26.2) | (13.8) | $ (1.9) |
Noncontrolling Interest [Member] | |||
Other comprehensive income, tax | $ (0.4) | $ (0.2) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 187,178 | $ 420,273 | $ 209,143 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization and impairment charges | 154,542 | 174,724 | 119,258 |
Stock-based compensation expense | 16,321 | 17,580 | 13,334 |
Non-cash interest expense | 10,101 | 9,094 | 44,377 |
Gain on revaluation of Sicelub investment | 0 | 0 | (13,784) |
Deferred income tax (benefit) provision | (22,717) | (139,488) | 9,946 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables, net | 64,048 | (19,916) | (98,912) |
Inventories, net | (390) | 57,847 | 79,987 |
Accounts payable | (11,184) | (54,666) | 128,889 |
Changes in other operating assets and liabilities | (94,086) | (79,690) | (130,069) |
Net cash provided by operating activities | 303,813 | 385,758 | 362,169 |
Cash flows from investing activities: | |||
Purchases of Fixed Assets | (69,877) | (84,458) | (71,482) |
Acquisitions, net of cash received | (196,007) | (948,800) | (372,476) |
Loans to non-trade creditors | 0 | 0 | (31,012) |
Other, net | 18,927 | 3,115 | 0 |
Net cash used in investing activities | (246,957) | (1,030,143) | (474,970) |
Cash flows from financing activities: | |||
Borrowings under term credit facility | 750,000 | 150,000 | 50,861 |
Payments under term credit facility | (1,232,872) | (15,542) | (679,755) |
Proceeds from borrowings on revolving credit facilities and other | 1,498,039 | 1,370,626 | 648,000 |
Repayments of borrowings on revolving credit facilities and other | (1,104,055) | (1,414,146) | (328,133) |
Proceeds from issuance of common stock, net | 6,052 | 613,927 | 324,153 |
Payments for Repurchase of Common Stock | (27,367) | 0 | 0 |
Acquisition of shares held by noncontrolling interest | 0 | (10,338) | (14,913) |
Preferred stock conversion inducement payment | 0 | (19,565) | 0 |
Payments of dividend on preferred stock | 0 | (3,853) | (20,396) |
Other | (21,066) | (21,060) | (24,870) |
Net cash (used in) provided by financing activities | (131,269) | 650,049 | (45,053) |
Effect of foreign exchange rates on Cash and cash equivalents | (33,566) | (11,517) | (13,294) |
Decrease in Cash and cash equivalents | (107,979) | (5,853) | (171,148) |
Cash and cash equivalents, beginning of period | 305,448 | 311,301 | 482,449 |
Cash and cash equivalents, end of period | 197,469 | 305,448 | 311,301 |
Interest Payments | 36,363 | 42,041 | 58,970 |
Income tax payments, net | $ 79,540 | $ 82,694 | $ 93,856 |
General
General | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Organization and Nature of Operations Colfax Corporation (the “Company” or “Colfax”) is a diversified global industrial manufacturing and engineering company that provides gas- and fluid-handling and fabrication technology products and services to customers around the world under the Howden, ESAB and Colfax Fluid Handling brand names. During the year ended December 31, 2015 , adjustments were made retrospectively to provisional amounts recorded as of December 31, 2014 , primarily due to the Company’s valuation of specific items related to an acquisition that occurred in the three months ended June 27, 2014 . See Note 4, “Acquisitions” for additional information regarding these adjustments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Principles of Consolidation The Company’s Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Less than wholly owned subsidiaries, including joint ventures, are consolidated when it is determined that the Company has a controlling financial interest, which is generally determined when the Company holds a majority voting interest. When protective rights, substantive rights or other factors exist, further analysis is performed in order to determine whether or not there is a controlling financial interest. The Consolidated Financial Statements reflect the assets, liabilities, revenues and expenses of consolidated subsidiaries and the noncontrolling parties’ ownership share is presented as a noncontrolling interest. All significant intercompany accounts and transactions have been eliminated. Equity Method Investments Investments in joint ventures, where the Company has a significant influence but not a controlling interest, are accounted for using the equity method of accounting. Investments accounted for under the equity method are initially recorded at the amount of the Company’s initial investment and adjusted each period for the Company’s share of the investee’s income or loss and dividends paid. All equity investments are reviewed periodically for indications of other than temporary impairment, including, but not limited to, significant and sustained decreases in quoted market prices or a series of historic and projected operating losses by investees. If the decline in fair value is considered to be other than temporary, an impairment loss is recorded and the investment is written down to a new carrying value. Investments in joint ventures acquired in a business combination are recognized in the opening balance sheet at fair value. Revenue Recognition The Company generally recognizes revenues and costs from product sales when title passes to the buyer and all of the following criteria are met: persuasive evidence of an arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers, and collectibility is reasonably assured. Product delivery occurs when title and risk of loss transfer to the customer. The Company’s shipping terms vary based on the contract. If any significant obligations to the customer with respect to such sale remain to be fulfilled following shipments, typically involving obligations relating to installation and acceptance by the buyer, revenue recognition is deferred until such obligations have been fulfilled. Any customer allowances and discounts are recorded as a reduction in reported revenues at the time of sale because these allowances reflect a reduction in the sales price for the products sold. These allowances and discounts are estimated based on historical experience and known trends. Revenue related to service agreements is recognized as revenue over the term of the agreement. Progress billings are generally shown as a reduction of Inventories, net unless such billings are in excess of accumulated costs, in which case such balances are included in Accrued liabilities in the Consolidated Balance Sheets. The Company recognizes revenue and cost of sales on gas-handling long-term contracts using the “percentage of completion method” in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Under this method, contract revenues are recognized over the performance period of the contract in direct proportion to the costs incurred as a percentage of total estimated costs for the entirety of the contract. Any recognized revenues that have not been billed to a customer are recorded as a component of Trade receivables and any billings of customers in excess of recognized revenues are recorded as a component of Accounts payable. As of December 31, 2015 , there were $149.5 million of revenues in excess of billings and $146.3 million of billings in excess of revenues on long-term contracts in the Consolidated Balance Sheet. As of December 31, 2014 , there were $190.7 million of revenues in excess of billings and $175.3 million of billings in excess of revenues on long-term contracts in the Consolidated Balance Sheet. The Company has contracts in various stages of completion. Such contracts require estimates to determine the appropriate cost and revenue recognition. Significant management judgments and estimates, including estimated costs to complete projects, must be made and used in connection with revenue recognized during each period. Current estimates may be revised as additional information becomes available. The revisions are recorded in income in the period in which they are determined using the cumulative catch-up method of accounting. See Note 16, “Segment Information” for sales by major product group. Amounts billed for shipping and handling are recorded as revenue. Shipping and handling expenses are recorded as a component of Cost of sales. Taxes Collected from Customers and Remitted to Governmental Authorities The Company collects various taxes and fees as an agent in connection with the sale of products and remits these amounts to the respective taxing authorities. These taxes and fees have been presented on a net basis in the Consolidated Statements of Income and are recorded as a component of Accrued liabilities in the Consolidated Balance Sheets until remitted to the respective taxing authority. Research and Development Expense Research and development costs of $41.5 million , $43.0 million and $27.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are expensed as incurred and are included in Selling, general and administrative expense in the Consolidated Statements of Income. Advertising Costs Advertising costs of $14.5 million , $18.2 million and $17.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are expensed as incurred and are included in Selling, general and administrative expense in the Consolidated Statements of Income. Cash and Cash Equivalents Cash and cash equivalents include all financial instruments purchased with an initial maturity of three months or less. Trade Receivables Trade receivables are presented net of an allowance for doubtful accounts. The Company records an allowance for doubtful accounts based upon estimates of amounts deemed uncollectible and a specific review of significant delinquent accounts factoring in current and expected economic conditions. Estimated losses are based on historical collection experience, and are reviewed periodically by management. During the year ended December 31, 2015, the Company recorded an increase in the allowance for doubtful accounts of specific South American customers of $9.4 million . Inventories Inventories, net include the cost of material, labor and overhead and are stated at the lower of cost (determined under various methods including average cost, last-in, first-out and first-in, first-out, but predominantly first-in, first-out) or market. For gas-handling long-term contracts, cost is primarily determined based upon actual cost. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product. The Company records as a charge to Cost of sales any amounts required to reduce the carrying value of inventories to net realizable value. Property, Plant and Equipment Property, plant and equipment, net are stated at historical cost, which includes the fair values of such assets acquired. Depreciation of property, plant and equipment is recorded on a straight-line basis over estimated useful lives. Assets recorded under capital leases are amortized over the shorter of their estimated useful lives or the lease terms, which range from three to 15 years . Repair and maintenance expenditures are expensed as incurred unless the repair extends the useful life of the asset. Impairment of Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Indefinite-lived intangible assets consist of trade names. The Company evaluates the recoverability of Goodwill and indefinite-lived intangible assets annually or more frequently if an event occurs or circumstances change in the interim that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill and indefinite-lived intangible assets are considered to be impaired when the net book value of a reporting unit or asset exceeds its implied fair value. In the evaluation of Goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting entity is less than its carrying value. If the Company determines that it is not more likely than not for a reporting unit’s fair value to be less than its carrying value, a calculation of the fair value is not performed. If the Company determines that it is more likely than not for a reporting unit’s fair value to be less than its carrying value, a calculation of the reporting entity’s fair value is performed and compared to the carrying value of that entity. In certain instances, the Company may skip the qualitative assessment and proceed directly to the first step of the quantitative impairment test. If the carrying value of a reporting unit exceeds its fair value, Goodwill of that reporting unit is potentially impaired and step two of the impairment analysis is performed. In step two of the analysis, an impairment loss is recorded equal to the excess of the carrying value of the reporting unit’s Goodwill over its implied fair value should such a circumstance arise. The Company measures fair value of reporting units based on a present value of future discounted cash flows and a market valuation approach. The discounted cash flows model indicates the fair value of the reporting units based on the present value of the cash flows that the reporting units are expected to generate in the future. Significant estimates in the discounted cash flows model include: the weighted average cost of capital; long-term rate of growth and profitability of our business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company against certain market information. Significant estimates in the market approach model include identifying appropriate market multiples and assessing earnings before interest, income taxes, depreciation and amortization in estimating the fair value of the reporting units. Based on the results of the qualitative assessment for each reporting unit performed as of September 26, 2015, the Company concluded based on a preponderance of positive indicators and the weight of such indicators that the fair values of our Fluid Handling, Howden Compressors and Howden Heavy Fans & Heaters reporting units are more likely than not greater than their respective carrying amounts and as a result, quantitative analyses would not be needed. Therefore, no further testing of goodwill for impairment was performed for these reporting units. For the Fabrication Technology reporting unit, the Company noted unfavorable domestic and international economic trends, particularly trading volumes, which are driven by overall macroeconomic conditions within the welding industry. As such, the Company did not perform a qualitative assessment of goodwill for the Fabrication Technology reporting unit and proceeded directly to performing the first step of the two-step quantitative goodwill impairment test for the annual impairment analysis performed as of September 26, 2015. The Company’s quantitative impairment assessment of Goodwill associated with the Fabrication Technology reporting unit, based on the methodologies identified above, resulted in a calculated fair value that exceeded the carrying value of the reporting unit. The annual Goodwill impairment analysis performed as of September 26, 2015, September 27, 2014 and September 28, 2013 indicated no impairment to be present. In the evaluation of indefinite-lived intangible assets for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying value. If the Company determines that it is not more likely than not for the indefinite-lived intangible asset’s fair value to be less than its carrying value, a calculation of the fair value is not performed. If the Company determines that it is more likely than not that the indefinite-lived intangible asset’s fair value is less than its carrying value, a calculation is performed and compared to the carrying value of the asset. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Company measures the fair value of our indefinite-lived intangible assets using the “relief from royalty” method. Significant estimates in this approach include projected revenues and royalty and discount rates for each trade name evaluated. From time-to-time, the Company has identified certain indefinite-lived intangible assets that, due to indicators present at the specific operation associated with the indefinite-lived intangible asset, should be tested for impairment prior to the annual impairment evaluation. During the three months ended September 25, 2015 , an analysis was performed to evaluate certain intangible assets related to a specific operation within the Company due to a decline in anticipated performance at the operation associated with those assets. The analysis determined an indefinite-lived trade name within the Company’s fabrication technology segment was impaired based upon relief from royalty measurements and resulted in a $1.5 million impairment loss calculated as the difference between the fair value of the asset and its carrying value as of the date of the impairment test. The impairment loss was included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2015 . The calculated fair value of the asset was $2.8 million and is included in Level Three of the fair value hierarchy. During the year ended December 31, 2014 , prior to the annual impairment evaluation, an analysis was performed to evaluate an indefinite-lived intangible asset related to a specific operation within the gas- and fluid-handling segment due to the decision to substantially reduce its operations. The analysis determined the indefinite-lived intangible asset, consisting of a trade name, was no longer recoverable based upon relief from royalty measurements and resulted in a $2.9 million impairment loss included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2014 . The analyses performed as of September 26, 2015 , September 27, 2014 and September 28, 2013 resulted in no impairment charges, except for $0.2 million of an impairment loss related to an indefinite-lived intangible asset included in the gas- and fluid-handling segment for the year ended December 31, 2013. This impairment resulted from a decline in anticipated revenue related to this asset. The impairment loss is included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2013 and was calculated as the difference between the fair value of the asset under the relief from royalty method and its carrying value as of the date of the impairment test. Impairment of Long-Lived Assets Other than Goodwill and Indefinite-Lived Intangible Assets Intangibles primarily represent acquired customer relationships, acquired order backlog, acquired technology and software license agreements. Acquired order backlog is amortized in the same period the corresponding revenue is recognized. A portion of the Company’s acquired customer relationships is being amortized on an accelerated basis over periods ranging from seven to 30 years based on the present value of the future cash flows expected to be generated from the acquired customers. All other intangibles are being amortized on a straight-line basis over their estimated useful lives, generally ranging from two to 20 years . The Company assesses its long-lived assets other than Goodwill and indefinite-lived intangible assets for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets. If these projected cash flows are less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss is measured based upon the difference between the carrying amounts and the fair values of the assets. Assets to be disposed of are reported at the lower of the carrying amounts or fair value less cost to sell. Management determines fair value using the discounted cash flow method or other accepted valuation techniques. During the year ended December 31, 2015 , an analysis was performed to evaluate certain long-lived intangible assets related to a specific operation within the gas- and fluid-handling segment due to a decline in projected cash flows associated with the asset group. The analysis determined the customer relationship finite-lived, intangible asset was impaired. The impairment was calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the asset and its carrying value as of the measurement date. The $1.7 million impairment loss was included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2015 . Subsequent to the impairment, the fair value of the asset was $0.8 million , which is included in Level Three of the fair value hierarchy and is not material to the Consolidated Financial Statements. In addition, an analysis was performed during the year ended December 31, 2014 to evaluate certain long-lived intangible assets related to a specific operation within the gas- and fluid-handling segment due to the decision to substantially reduce its operations. The analysis determined the long-lived intangible assets, primarily consisting of acquired customer relationships and acquired technology, were no longer recoverable based upon projected undiscounted net cash flows. Further, as a result of management’s evaluation of projected cash flows related to another operation within the gas-and fluid-handling segment, an analysis was performed to evaluate the long-lived intangible assets related to that operation. The analysis determined certain long-lived intangible assets, primarily consisting of acquired customer relationships, were impaired. The impairment was calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the asset group and its carrying value as of the measurement date. The Company recorded $10.5 million of intangible asset impairment losses related to these two operations as a component of Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2014 . The fair value of these assets of $3.3 million as of December 31, 2014 are included in Level Three of the fair value hierarchy and are not material to the Consolidated Financial Statements. The Company recorded asset impairment losses related to facility closures totaling $9.3 million , $4.6 million and $1.9 million during the years ended December 31, 2015 , 2014 and 2013 , respectively, as a component of Restructuring and other related charges in the Consolidated Statements of Income. The aggregate carrying value of these assets subsequent to impairment was $21.1 million , $15.1 million and $4.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Derivatives The Company is subject to foreign currency risk associated with the translation of the net assets of foreign subsidiaries to United States (“U.S.”) dollars on a periodic basis. The Company’s 2015 Deutsche Bank Credit Agreement (as defined and further discussed in Note 10, “Debt”) includes debt denominated in the Euro of €263.5 million as of December 31, 2015 , which has been designated as a net investment hedge in order to mitigate a portion of this risk. Derivative instruments are generally recognized on a gross basis in the Consolidated Balance Sheets in either Other current assets, Other assets, Accrued liabilities or Other liabilities depending upon their respective fair values and maturity dates. The Company designates a portion of its foreign exchange contracts as cash flow hedges and fair value hedges. For all instruments designated as hedges, including net investment hedges, cash flow hedges and fair value hedges, the Company formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objective and the strategy for using the hedging instrument. The Company assesses whether the relationship between the hedging instrument and the hedged item is highly effective at offsetting changes in the fair value both at inception of the hedging relationship and on an ongoing basis. For cash flow hedges and net investment hedges, unrealized gains and losses are recognized as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets to the extent that it is effective at offsetting the change in the fair value of the hedged item and realized gains and losses are recognized in the Consolidated Statements of Income consistent with the underlying hedged instrument. Gains and losses related to fair value hedges are recorded as an offset to the fair value of the underlying asset or liability, primarily Trade receivables and Accounts payable in the Consolidated Balance Sheets. The Company does not enter into derivative contracts for trading purposes. See Note 14, “Financial Instruments and Fair Value Measurements” for additional information regarding the Company’s derivative instruments. Warranty Costs Estimated expenses related to product warranties are accrued as the revenue is recognized on products sold to customers and included in Cost of sales in the Consolidated Statements of Income. Estimates are established using historical information as to the nature, frequency, and average costs of warranty claims. The activity in the Company’s warranty liability, which is included in Accrued liabilities and Other liabilities in the Company’s Consolidated Financial Statements, consisted of the following: Year Ended December 31, 2015 2014 (In thousands) Warranty liability, beginning of period $ 51,135 $ 65,512 Accrued warranty expense 21,092 23,019 Changes in estimates related to pre-existing warranties (1,820 ) (9,966 ) Cost of warranty service work performed (29,342 ) (27,389 ) Acquisitions 321 4,488 Foreign exchange translation effect (3,979 ) (4,529 ) Warranty liability, end of period $ 37,407 $ 51,135 Income Taxes Income taxes for the Company are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the Consolidated Financial Statements and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is generally recognized in Provision for (benefit from) income taxes in the period that includes the enactment date. Valuation allowances are recorded if it is more likely than not that some portion of the deferred income tax assets will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the expected level of future taxable income and available tax planning strategies. Any changes in judgment about the valuation allowance are recorded through Provision for (benefit from) income taxes and are based on changes in facts and circumstances regarding realizability of deferred tax assets. The Company must presume that an income tax position taken in a tax return will be examined by the relevant tax authority and determine whether it is more likely than not that the tax position will be sustained upon examination based upon the technical merits of the position. An income tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Company establishes a liability for unrecognized income tax benefits for income tax positions for which it is more likely than not that a tax position will not be sustained upon examination by the respective taxing authority to the extent such tax positions reduce the Company’s income tax liability. The Company recognizes interest and penalties related to unrecognized income tax benefits in the Provision for (benefit from) income taxes in the Consolidated Statements of Income. Foreign Currency Exchange Gains and Losses The Company’s financial statements are presented in U.S. dollars. The functional currencies of the Company’s operating subsidiaries are generally the local currencies of the countries in which each subsidiary is located. Assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the balance sheet date. The amounts recorded in each year in Foreign currency translation are net of income taxes to the extent the underlying equity balances in the entities are not deemed to be permanently reinvested. Revenues and expenses are translated at average rates of exchange in effect during the year. Transactions in foreign currencies are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated for inclusion in the Consolidated Balance Sheets are recognized in Selling, general and administrative expense or Interest expense in the Consolidated Statements of Income for that period. The Company considers the Venezuelan bolivar fuerte (“bolivar”) a highly inflationary currency. Therefore, financial statements of the Company’s Venezuelan operations are remeasured into their parents’ reporting currency. During the years ended December 31, 2014 and 2013, currency devaluations of approximately 87% and 32% , respectively, of the bolivar relative to the U.S. dollar resulted in foreign currency transaction losses of $6.3 million and $2.9 million recognized in Selling, general and administrative expense in the Consolidated Statements of Income for the years ended December 31, 2014 and 2013, respectively. In February 2015, the Venezuelan government introduced a marginal foreign exchange system ("SIMADI") which replaces an auction-based foreign exchange system that began operating on March 24, 2014 ("SICAD II"), which was previously used to remeasure Venezuelan operations. During the year ended December 31, 2015, the Company determined the SIMADI to be the most appropriate rate with which to remeasure Venezuelan operations from the multiple current legal mechanisms in Venezuela to exchange currency. The foreign currency transaction loss recognized related to the adoption of the SIMADI did not have a material impact on our Consolidated Statement of Income for the year ended December 31, 2015. Future impacts to earnings of applying highly inflationary accounting for Venezuela on the Company’s Consolidated Financial Statements will be dependent upon movements in the applicable exchange rates between the bolivar and the parents’ reporting currency and the amount of monetary assets and liabilities included in the Company’s Venezuelan operations’ balance sheets. As of and for the years ended December 31, 2015 and 2014 , the Company’s Venezuelan operations represented less than 1% of the Company’s Total assets and Net sales. The bolivar-denominated monetary net asset position, primarily related to cash and cash equivalents, was $0.1 million and $0.7 million in the Consolidated Balance Sheets as of December 31, 2015 and 2014 , respectively. During the year ended December 31, 2015 , the Company recognized a net foreign currency transaction loss of $3.9 million and a gain of $2.1 million in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income. During the year ended December 31, 2014 , the Company recognized net foreign currency transaction losses of $5.1 million and $5.5 million in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income, including the $6.3 million loss related to the devaluation of the bolivar discussed above. During the year ended December 31, 2013 , net foreign currency transaction losses of $4.1 million and $5.2 million were recognized in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income, including the $2.9 million loss related to the devaluation of the bolivar discussed above. Debt Issuance Costs and Debt Discount Costs directly related to the placement of debt are capitalized and amortized to Interest expense primarily using the effective interest method over the term of the related obligation. Net deferred issuance costs of $8.1 million and $9.9 million , respectively, were included in the Consolidated Balance Sheets as of December 31, 2015 and 2014 , which includes $13.4 million and $8.6 million , respectively, of accumulated amortization. As of December 31, 2015 , $6.9 million and $1.2 million of deferred issuance costs were included in Other assets and as a reduction of Long-term debt, respectively. As of December 31, 2014 , $7.5 million and $2.4 million of deferred issuance costs were included in Other assets and as a reduction of Long-term debt, respectively. See further discussion of presentation of deferred issuance costs in the Consolidated Balance Sheets in Note 3, “Recently Issued Accounting Pronouncements” as a result of adoption of Accounting Standards Update No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30)”. During the years ended December 31, 2015 , 2014 and 2013 , the Company deferred $3.4 million , $0.3 million and $7.1 million , respectively, of debt issuance costs. Further, the carrying value of Long-term debt is reduced by an original issue discount, which is accreted to Interest expense using the effective interest method over the term of the related obligation. See Note 10, “Debt” for additional discussion regarding the Company’s borrowing arrangements. Use of Estimates The Company makes certain estimates and assumptions in preparing its Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses for the period presented. Actual results may differ from those estimates. Reclassifications Certain prior period amounts have been reclassified to conform to current year presentations. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU No. 2014-09”). ASU No. 2014-09 clarifies the principles for recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance affects entities that enter into contracts with customers to transfer goods or services, and supersedes prior GAAP guidance, namely Accounting Standards Codification Topic 605—Revenue Recognition. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606)”, which delays the effective date of ASU No. 2014-09 by one year. As a result, ASU No. 2014-09 will be effective for fiscal years beginning after December 15, 2017, with early adoption permitted but not prior to the original effective date of annual periods beginning after December 15, 2016. ASU 2014-09 is to be applied retrospectively, or on a modified retrospective basis. The Company plans to apply ASU 2014-09 retrospectively as of January 1, 2018 and is currently evaluating the impact on its Consolidated Financial Statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30)” (“ASU No. 2015-03”). ASU No. 2015-03 aims to simplify the presentation of debt issuance costs by requiring debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are presented as a deferred charge under GAAP. ASU No. 2015-03 is effective for fiscal years beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. The Company has early adopted ASU No. 2015-03 during the year ended December 31, 2015 resulting in $1.2 million of debt issuance costs, net of accumulated amortization, presented as a direct deduction to the Company’s Long-term debt in the Consolidated Balance Sheet as of December 31, 2015 . The retrospective application of ASU No. 2015-03 decreased Other assets and Long-term debt by $2.4 million in the Consolidated Balance Sheet as of December 31, 2014 . The Company has applied the provisions of ASU No. 2015-15, “Interest—Imputation of Interest (Subtopic 835-30)” and presents deferred costs associated with its line-of-credit agreements as an asset in the Consolidated Balance Sheet. In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820)—Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (Subtopic 835-30)” (“ASU No. 2015-07”). ASU No. 2015-07 aims to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Investments that calculate net asset value per share (or its equivalent), but for which the practical expedient is not applied will continue to be included in the fair value hierarchy along with the related required disclosures. ASU No. 2015-07 is effective for fiscal years beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. The Company has early adopted ASU No. 2015-07 in the Notes to Financial Statements as of December 31, 2015 and has applied the disclosure provisions of ASU No. 2015-07 to all investments measured using the net asset value per share practical expedient. See Note 13, “Defined Benefit Plans” for further discussion on the impact of ASU No. 2015-07. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330)—Simplifying the Measurement of Inventory” (“ASU No. 2015-11”). ASU No. 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value, except for inventory that is measured using the last-in, first-out method or the retail inventory method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU No. 2015-11 is effective for fiscal years beginning after December 15, 2016 and is to be applied prospectively with early adoption permitted. The Company is currently evaluating the impact of adopting ASU No. 2015-11 on its Consolidated Financial Statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805)— Simplifying the Accounting for Measurement-Period Adjustments” (“ASU No. 2015-16”). ASU No. 2015-16 aims to simplify measurement period adjustments resulting from business combinations by requiring that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, will be recorded in the same period’s financial statements as the measurement period adjustment. ASU No. 2015-16 is effective for fiscal years beginning after December 15, 2015, and is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of ASU No. 2015-16. The Company will adopt ASU No. 2015-16 prospectively in the fiscal period beginning after December 15, 2015. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740)—Balance Sheet Classification of Deferred Taxes” (“ASU No. 2015-17”). ASU No. 2015-17 requires deferred tax assets and liabilities to be classified as noncurrent in the Consolidated Balance Sheets. The standard will be effective for fiscal years beginning after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. ASU No. 2015-17 may be applied either prospectively or retrospectively to all periods presented. The Company has early adopted ASU No. 2015-17 during the year ended December 31, 2015. The retrospective application of ASU No. 2015-17 decreased Other current assets, Accrued liabilities and Other liabilities by $26.2 million , $6.2 million and $18.6 million , respectively, and increased Other assets by $1.4 million in the Consolidated Balance Sheet as of December 31, 2014 . |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions The following acquisitions were accounted for using the acquisition method of accounting, except as otherwise noted, and, accordingly, the Consolidated Financial Statements include the financial position and results of operations from the respective date of acquisition: Gas and Fluid Handling On October 5, 2015 , Colfax completed the acquisition of Simsmart Technologies, Inc. (“Simsmart”) for cash consideration of $15.3 million , net of cash acquired. Simsmart provides a software product that controls ventilation conditions and increases fan efficiency. The acquisition of Simsmart expands the Howden product portfolio primarily within the mining end market and other end markets with challenging ventilation conditions. On June 30, 2015 , Colfax completed the acquisition of the Roots TM blowers and compressors business unit (“Roots”), also known as Industrial Air & Gas Technologies, from GE Oil & Gas (the “Roots Acquisition”) for cash consideration of $180.7 million . Roots is a leading supplier of blower and compressor technologies which service a broad range of end markets, including wastewater treatment, chemical production, and power generation. The acquisition of Roots builds on Howden’s global strength in compressors and blowers and adds important application expertise and product solutions to the portfolio. On May 21, 2014 , the Company completed the $0.8 million acquisition of the remaining ownership of Howden Thomassen Middle East FCZO (“Howden Middle East”), which resulted in an increase in the Company’s ownership of the subsidiary from 90% to 100% and was accounted for as an equity transaction, as the Company increased its controlling interest. On November 29, 2013 , the Company completed the acquisition of the global infrastructure and industry division of Fläkt Woods Group (“GII”) for approximately $246.0 million , including the assumption of debt. GII has operations around the world and expanded the Company’s product offerings in the heavy duty industrial and cooling fan market. On November 25, 2013 , the Company converted the common shares of Sistemas Centrales de Lubrication S.A. de C.V. (“Sicelub”), previously a less than wholly owned subsidiary in which the Company did not have a controlling interest, that were held by the majority owner into shares of mandatorily redeemable non-voting preferred stock of Sicelub valued at $31.7 million at the acquisition date, which resulted in an increase in the Company’s ownership from 44% to 100% . On the date of the acquisition, the Company held a $7.4 million equity investment representing the Company’s 44% investment in Sicelub and recognized a $13.8 million gain as a reduction in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2013 to remeasure the investment to fair value at the acquisition date based upon the total enterprise value, adjusting for a control premium. Changes in settlement value of the mandatorily redeemable preferred stock are determined, in part, by the achievement of certain performance goals. The change in the settlement value of the mandatorily redeemable preferred stock for each period will be reflected in Interest expense. During the year ended December 31, 2014, a $3.1 million reduction to Interest expense was reflected in the Consolidated Statement of Income due to the change in expected settlement value under the conditions specified in the contract of the mandatorily redeemable preferred stock, as the performance criteria were not met. On December 25, 2015, the shares of the mandatorily redeemable preferred stock of Sicelub were redeemed and settled by offset of the outstanding loan payable to the Company by the holders of the mandatorily redeemable preferred stock. On November 1, 2013 , the Company completed the acquisition of ČKD Kompresory a.s. (“ČKDK”) for approximately $69.4 million , including the assumption of debt. ČKDK is a leading supplier of multi-stage centrifugal compressors to the oil & gas, petrochemical, power and steel industries, based in Prague, Czech Republic. On September 30, 2013 , the Company completed the acquisition of certain business units of The New York Blower Company, including TLT-Babcock Inc. (“TLT-Babcock”) and Alphair Ventilating Systems Inc. (“Alphair”) for an approximate aggregate purchase price of $55.7 million . TLT-Babcock and Alphair are suppliers of heavy duty and industrial fans in Akron, Ohio and Winnipeg, Manitoba, respectively. On July 9, 2013 , the Company completed the acquisition of the common stock of Clarus Fluid Intelligence, LLC (“Clarus”) for $13.2 million , which included the fair value of an estimated additional contingent cash payment of $2.5 million at the acquisition date. The additional contingent payment, if any, would be paid during the year ending December 31, 2016 subject to the achievement of certain performance goals. During the year ended December 31, 2014 , the Company recognized an unrealized gain of $2.9 million , including accretion, related to the Clarus contingent payment liability, as the performance criteria are no longer expected to be met. The unrealized gain and accretion were recognized in Selling, general and administrative expense and Interest expense in the Consolidated Statements of Income, respectively. Clarus is a domestic supplier of flushing services for marine applications primarily to U.S. government agencies, with primary operations based in Bellingham, Washington. Fabrication Technology On July 1, 2014 , the Company completed the $9.5 million acquisition of the remaining ownership of ESAB-SVEL (“Svel”), which resulted in an increase in the Company’s ownership from 51% to 100% and was accounted for as an equity transaction, as the Company increased its controlling interest. On April 14, 2014 , Colfax completed the acquisition of the common stock of Victor Technologies Holdings, Inc. (“Victor”) for total net cash consideration of $948.8 million (the “Victor Acquisition”). Victor is a global manufacturer of cutting, gas control and specialty welding solutions. The acquisition complemented the geographic footprint of the Company’s fabrication technology segment and expanded its product portfolio into new segments and applications. During the year ended December 31, 2015 , the Company retrospectively adjusted provisional amounts with respect to the acquisition that were recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The aggregate adjustments during the year ended December 31, 2015 increased the Goodwill balance by $0.1 million , primarily due to finalization of the Company’s valuation of certain deferred tax assets and liabilities offset by finalization of the valuation of certain fixed assets and an adjustment to a VAT tax position in a specific foreign entity. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition for all acquisitions accounted for under the acquisition method of accounting and consummated during the years ended December 31, 2015 , 2014 and 2013 . For the acquisitions consummated during the year ended December 31, 2015 , the amounts represent the Company’s best estimate of the aggregate fair value of the assets acquired and liabilities assumed. These amounts are based upon certain valuations and studies that have yet to be finalized, and accordingly, the assets acquired and liabilities assumed, as detailed below, are subject to adjustment once the detailed analyses are completed. Substantially all of the Goodwill recognized for acquisitions consummated during the year ended December 31, 2015 is expected to be deductible for income tax purposes. 2015 2014 2013 (In thousands) Trade receivables $ 15,680 $ 76,678 $ 74,387 Inventories 20,898 107,785 49,871 Property, plant and equipment 20,653 56,988 92,247 Goodwill 85,216 612,866 284,294 Intangible assets 85,113 389,700 104,272 Accounts payable (9,909 ) (34,271 ) (70,122 ) Debt — — (10,942 ) Other assets and liabilities, net (21,644 ) (260,946 ) (99,205 ) Consideration, net of cash acquired $ 196,007 $ 948,800 $ 424,802 The Company incurred advisory, legal, valuation and other professional service fees of $2.7 million , $2.7 million and $4.3 million , during the years ended December 31, 2015 , 2014 and 2013 , respectively, in connection with completed acquisitions which are included in Selling, general and administrative expense in the Consolidated Statements of Income. During the years ended December 31, 2015 , 2014 , and 2013 , the Company’s Consolidated Statements of Income included $47.9 million , $347.3 million , and $59.9 million of Net sales associated with acquisitions consummated during the respective period. During the period from April 14, 2014 through December 31, 2014, the Company’s Consolidated Statements of Income included $35.9 million of Net income available to Colfax Corporation common shareholders, associated with the Victor Acquisition. Net Income (Loss) available to common shareholders associated with acquisitions consummated during the years ended December 31, 2015 and December 31, 2013 was not material. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net Income Per Share Net income per share available to Colfax Corporation common shareholders was computed as follows: Year Ended December 31, 2015 2014 2013 (In thousands, except share data) Computation of Net income per share - basic: Net income available to Colfax Corporation common shareholders $ 167,739 $ 370,185 $ 158,232 Less: net income attributable to participating securities (1) — — (3,740 ) $ 167,739 $ 370,185 $ 154,492 Weighted-average shares of Common stock outstanding - basic 124,101,033 121,143,790 99,198,570 Net income per share - basic $ 1.35 $ 3.06 $ 1.56 Computation of Net income per share - diluted: Net income available to Colfax Corporation common shareholders $ 167,739 $ 370,185 $ 158,232 Less: net income attributable to participating securities (1) — — (3,740 ) $ 167,739 $ 370,185 $ 154,492 Weighted-average shares of Common stock outstanding - basic 124,101,033 121,143,790 99,198,570 Net effect of potentially dilutive securities - stock options and restricted stock units 768,616 1,522,502 1,167,885 Weighted-average shares of Common stock outstanding - diluted 124,869,649 122,666,292 100,366,455 Net income per share - diluted $ 1.34 $ 3.02 $ 1.54 (1) Net income per share - diluted for the period from January 13, 2012 to April 23, 2013 was calculated consistently with the two-class method in accordance with GAAP, as further discussed below. Subsequent to April 23, 2013 and prior to February 12, 2014, Net income per share - diluted was calculated consistently with the if-converted method in accordance with GAAP, as further discussed below. However, for the year ended December 31, 2013, the calculation under this method was anti-dilutive. On April 23, 2013, the Company and BDT CF Acquisition Vehicle, LLC (the “BDT Investor”) amended the Certificate of Designations of Series A Perpetual Convertible Preferred Stock of Colfax Corporation to eliminate the right of the Series A Perpetual Convertible Preferred Stock to share proportionately in any dividends or distributions made in respect of the Company’s Common stock. On February 12, 2014, the Company entered into a Conversion Agreement with the BDT Investor pursuant to which the BDT Investor exercised its option to convert 13,877,552 shares of Series A Perpetual Convertible Preferred Stock into 12,173,291 shares of Common stock plus cash. The BDT Investor was the sole holder of all issued and outstanding shares of the Company’s Series A Perpetual Convertible Preferred Stock. See Note 11, “Equity” for further discussion of the Series A Perpetual Convertible Preferred Stock conversion. For periods from January 13, 2012 to April 23, 2013, Net income available to Colfax Corporation common shareholders was allocated to participating securities, while any losses for those periods were not allocated to participating securities. Subsequent to April 23, 2013 and prior to February 12, 2014, the Company’s Net income per share - dilutive was computed using the “if-converted” method. Under the “if-converted” method, Net income per share - dilutive was calculated under the assumption that the shares of Series A Perpetual Convertible Preferred Stock had been converted into shares of Common stock as of the beginning of the respective period. For the years ended December 31, 2014 and 2013, the weighted-average computation of the dilutive effect of potentially issuable shares of Common stock excluded 1.4 million and 12.2 million , respectively, of Common stock equivalents, as inclusion of such shares would be anti-dilutive. The weighted-average computation of the dilutive effect of potentially issuable shares of Common stock under the treasury stock method for the years ended December 31, 2015 , 2014 and 2013 excludes approximately 3.0 million , 0.8 million and 0.6 million outstanding stock-based compensation awards, respectively, as their inclusion would be anti-dilutive. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes Income before income taxes and Provision for (benefit from) income taxes consisted of the following: Year Ended December 31, 2015 2014 2013 (In thousands) Income (loss) before income taxes: Domestic operations $ (16,487 ) $ 53,153 $ (7,899 ) Foreign operations 253,389 305,095 310,694 $ 236,902 $ 358,248 $ 302,795 Provision for (benefit from) income taxes: Current: Federal $ 465 $ 798 $ (464 ) State 1,076 2,047 871 Foreign 70,900 74,618 83,299 72,441 77,463 83,706 Deferred: Domestic operations $ (1,231 ) $ (127,114 ) $ 11,603 Foreign operations (21,486 ) (12,374 ) (1,657 ) (22,717 ) (139,488 ) 9,946 $ 49,724 $ (62,025 ) $ 93,652 The Company’s Provision for (benefit from) income taxes differs from the amount that would be computed by applying the U.S. federal statutory rate as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Taxes calculated at the U.S. federal statutory rate $ 82,940 $ 125,386 $ 105,978 State taxes 768 2,323 871 Effect of tax rates on international operations (36,364 ) (34,619 ) (42,972 ) Change in enacted international tax rates (4,415 ) (149 ) (5,217 ) Changes in valuation allowance and tax reserves 1,784 (156,071 ) 30,554 Other 5,011 1,105 4,438 Provision for (benefit from) income taxes $ 49,724 $ (62,025 ) $ 93,652 Deferred income taxes, net reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. During the year ended December 31, 2015 , adjustments were made retrospectively to provisional amounts recorded as of December 31, 2014 , due to the finalization of the valuation of specific tax items related to the acquisition consummated during the three months ended June 27, 2014 . The significant components of deferred tax assets and liabilities, in addition to the reconciliation of the beginning and ending amount of gross unrecognized tax benefits below, include the impact of these retrospective adjustments. Significant components of the deferred tax assets and liabilities are as follows: December 31, 2015 2014 (In thousands) Deferred tax assets: Post-retirement benefit obligation $ 75,045 $ 92,995 Expenses currently not deductible 109,283 116,247 Net operating loss carryforward 211,627 228,863 Tax credit carryforward 10,343 11,509 Depreciation and amortization 7,533 11,121 Other 25,379 22,285 Valuation allowance (161,030 ) (159,252 ) Deferred tax assets, net $ 278,180 $ 323,768 Deferred tax liabilities: Depreciation and amortization $ (317,464 ) $ (353,660 ) Post-retirement benefit obligation (13,581 ) (12,116 ) Inventory (17,122 ) (16,549 ) Other (174,367 ) (193,618 ) Total deferred tax liabilities $ (522,534 ) $ (575,943 ) Total deferred tax liabilities, net $ (244,354 ) $ (252,175 ) The Company evaluates the recoverability of its deferred tax assets on a jurisdictional basis by considering whether deferred tax assets will be realized on a more likely than not basis. To the extent a portion or all of the applicable deferred tax assets do not meet the more likely than not threshold, a valuation allowance is recorded. During the year ended December 31, 2015 , the valuation allowance increased from $159.3 million to $161.0 million with a net increase of $8.6 million recognized in Provision for (benefit from) income taxes , a decrease of $3.9 million recognized in Other comprehensive (loss) income and a $3.0 million decrease related to changes in foreign currency rates. As a result of the effect of the Victor Acquisition on expected future income in the United States, the realizability of certain deferred assets were reassessed in 2014. The reduction of valuation allowances associated with this reassessment resulted in a non-cash income tax benefit of $145.4 million for the year ended December 31, 2014. Consideration was given to U.S. tax planning strategies and future U.S. taxable income as to how much of the relevant deferred tax asset could be realized on a more likely than not basis. The Company has U.S. net operating loss carryforwards of $267.3 million expiring in years 2021 through 2032, and alternative minimum tax credits of $9.8 million that may be carried forward indefinitely. Tax credit carryforwards include foreign tax credits that have been offset by a valuation allowance. The Company’s ability to use these various carryforwards to offset any taxable income generated in future taxable periods may be limited under Section 382 and other federal tax provisions. For the years ended December 31, 2015 , 2014 and 2013 , all undistributed earnings of the Company’s controlled international subsidiaries are considered to be permanently reinvested outside the U.S. and no tax expense in the U.S. has been recognized under the applicable accounting standard for these reinvested earnings. The amount of unremitted earnings from the Company’s international subsidiaries, subject to local statutory restrictions, as of December 31, 2015 is $1.3 billion . The amount of deferred tax liability that would have been recognized had such earnings not been indefinitely reinvested is not reasonably determinable. The Company records a liability for unrecognized income tax benefits for the amount of benefit included in its previously filed income tax returns and in its financial results expected to be included in income tax returns to be filed for periods through the date of its Consolidated Financial Statements for income tax positions for which it is more likely than not that a tax position will not be sustained upon examination by the respective taxing authority. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (inclusive of associated interest and penalties): (In thousands) Balance, December 31, 2013 $ 71,595 Acquisitions 37,328 Addition for tax positions taken in prior periods 3,752 Addition for tax positions taken in the current period 894 Reduction for tax positions taken in prior periods (27,601 ) Other, including the impact of foreign currency translation (8,443 ) Balance, December 31, 2014 77,525 Addition for tax positions taken in prior periods 3,924 Addition for tax positions taken in the current period 924 Reduction for tax positions taken in prior periods (23,616 ) Other, including the impact of foreign currency translation (5,879 ) Balance, December 31, 2015 $ 52,878 The Company is routinely examined by tax authorities around the world. Tax examinations remain in process in multiple countries, including but not limited to Sweden, China, Indonesia, France, Mexico, Brazil and various states. The Company files numerous group and separate tax returns in U.S. federal and state jurisdictions, as well as many international jurisdictions. In the U.S., tax years dating back to 2006 remain subject to examination, as well as the 2003 and 2005 tax years due to tax attributes available to be carried forward to open or future tax years. With some exceptions, other major tax jurisdictions generally are not subject to tax examinations for years beginning before 2008. The Company’s total unrecognized tax benefits were $52.9 million and $77.5 million as of December 31, 2015 and 2014 , respectively, inclusive of $11.2 million and $14.7 million , respectively, of interest and penalties. These amounts were offset by tax benefits of $0.1 million as of both December 31, 2015 and 2014 . The net liabilities for uncertain tax positions as of December 31, 2015 and 2014 were $52.8 million and $77.4 million , respectively, and, if recognized, would favorably impact the effective tax rate. The Company records interest and penalties on uncertain tax positions as a component of Provision for (benefit from) income taxes , which was $1.8 million , $2.5 million and $4.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Due to the difficulty in predicting with reasonable certainty when tax audits will be fully resolved and closed, the range of reasonably possible significant increases or decreases in the liability for unrecognized tax benefits that may occur within the next 12 months is difficult to ascertain. Currently, the Company estimates that it is reasonably possible that the expiration of various statutes of limitations, resolution of tax audits and court decisions may reduce its tax expense in the next 12 months up to $0.9 million . |
Goodwill & Intangibles
Goodwill & Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets The following table summarizes the activity in Goodwill, by segment during the years ended December 31, 2015 and 2014 : Gas and Fluid Handling Fabrication Technology Total (In thousands) Balance, January 1, 2014 $ 1,532,201 $ 877,498 $ 2,409,699 Goodwill attributable to acquisitions (1) — 612,866 612,866 Impact of foreign currency translation and other (103,843 ) (45,699 ) (149,542 ) Balance, December 31, 2014 1,428,358 1,444,665 2,873,023 Goodwill attributable to acquisitions 85,216 — 85,216 Impact of foreign currency translation and other (87,308 ) (53,244 ) (140,552 ) Balance, December 31, 2015 $ 1,426,266 $ 1,391,421 $ 2,817,687 (1) During the year ended December 31, 2015 , the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The following table summarizes the Intangible assets, excluding Goodwill: December 31, 2015 2014 Gross Accumulated Gross Accumulated (In thousands) Trade names – indefinite life $ 395,319 $ — $ 410,600 $ — Acquired customer relationships 573,589 (117,573 ) 593,799 (85,171 ) Acquired technology 149,578 (37,012 ) 113,697 (27,681 ) Acquired backlog 2,575 (2,220 ) — — Other intangible assets 48,413 (16,957 ) 50,287 (11,948 ) $ 1,169,474 $ (173,762 ) $ 1,168,383 $ (124,800 ) Amortization expense related to intangible assets was included in the Consolidated Statements of Income as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Selling, general and administrative expense $ 60,629 $ 67,052 $ 41,012 See Note 2, “Summary of Significant Accounting Policies” for discussion of impairment of Intangible assets. As of December 31, 2015 , total amortization expense for intangible assets is expected to be $59.9 million , $57.1 million , $54.5 million , $50.0 million and $47.3 million for the years ending December 31, 2016 , 2017 , 2018 , 2019 and 2020 , respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment, Net December 31, Depreciable Life 2015 2014 (1) (In years) (In thousands) Land n/a $ 44,746 $ 52,539 Buildings and improvements 5-40 327,122 363,716 Machinery and equipment 3-15 546,052 524,723 Software 3-5 95,556 98,069 1,013,476 1,039,047 Accumulated depreciation (368,940 ) (311,612 ) Property, plant and equipment, net $ 644,536 $ 727,435 (1) During the year ended December 31, 2015, the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. Depreciation expense, including the amortization of assets recorded under capital leases, for the years ended December 31, 2015 , 2014 and 2013 , was $90.7 million , $94.5 million and $78.1 million , respectively. Depreciation expense for the years ended December 31, 2015 , 2014 , and 2013 includes $9.3 million , $4.6 million and $1.9 million of non-cash impairment of fixed assets, respectively. These amounts also include depreciation expense related to software for the years ended December 31, 2015 , 2014 and 2013 of $14.3 million , $15.7 million and $11.8 million , respectively. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Inventories, Net Inventories, net consisted of the following: December 31, 2015 2014 (In thousands) Raw materials $ 160,640 $ 164,115 Work in process 68,541 81,110 Finished goods 243,209 239,808 472,390 485,033 Less: customer progress payments (15,876 ) (7,728 ) Less: allowance for excess, slow-moving and obsolete inventory (36,128 ) (34,573 ) Inventories, net $ 420,386 $ 442,732 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: December 31, 2015 2014 (In thousands) Term loans $ 713,175 $ 1,210,474 Trade receivables financing arrangement 75,800 80,000 Revolving credit facilities and other 628,572 246,336 Total Debt 1,417,547 1,536,810 Less: current portion (5,792 ) (9,855 ) Long-term debt $ 1,411,755 $ 1,526,955 The Company entered into a credit agreement by and among the Company, Colfax UK Holdings Ltd, the other subsidiaries of the Company party thereto, the lenders party thereto and Deutsche Bank AG New York Branch, as administrative agent (the “Deutsche Bank Credit Agreement”) on September 12, 2011. In connection with the closing of the acquisition of Charter International plc, the Deutsche Bank Credit Agreement was amended on January 13, 2012 and the Company terminated its existing credit agreement as well as Charter’s outstanding indebtedness. A Second Amendment and Third Agreement to the Deutsche Bank Credit Agreement was entered into on February 22, 2013 and November 7, 2013, respectively, which, among other things, reallocated borrowing capacities of the tranches of loans and reduced interest rate margins when compared to the terms of the amended Deutsche Bank Credit Agreement on January 13, 2012. On May 14, 2014, the Company entered into an Incremental Amendment to the Term A-1 facility under the Deutsche Bank Credit Agreement, as amended. Pursuant to the Incremental Amendment, the borrowing capacity of the Term A-1 facility was increased by $150.0 million to an aggregate of $558.7 million , upon the same terms as the existing Term A-1 facility. On June 5, 2015, the Company entered into a credit agreement (the “2015 Deutsche Bank Credit Agreement”) by and among the Company, as the borrower, certain U.S. subsidiaries of the Company identified therein, as guarantors, each of the lenders party thereto and Deutsche Bank AG New York Branch, as administrative agent, swing line lender and global coordinator. The proceeds of the loans under the 2015 Deutsche Bank Credit Agreement were used by the Company to repay in full balances under its preexisting Deutsche Bank Credit Agreement, as well as for working capital and general corporate purposes. The 2015 Deutsche Bank Credit Agreement consists of a term loan in an aggregate amount of $750.0 million (the “Term Loan”) and a revolving credit facility (the “Revolver”), each of which matures in five years. The Revolver contains a $50.0 million swing line loan sub-facility. On September 25, 2015, the Company entered into an Increase Agreement, as provided for under the terms of the 2015 Deutsche Bank Credit Agreement. Under the Increase Agreement, the Company increased the Revolver by $300.0 million , resulting in a total Revolver commitment under the 2015 Deutsche Bank Credit Agreement of $1.3 billion . The Term Loan and the Revolver bear interest, at the election of the Company, at either the base rate (as defined in the 2015 Deutsche Bank Credit Agreement) or the Eurocurrency rate (as defined in the 2015 Deutsche Bank Credit Agreement), in each case, plus the applicable interest rate margin. The Term Loan and the Revolver initially bear interest either at the Eurocurrency rate plus 1.50% or at the base rate plus 0.50% , and in future quarters will bear interest either at the Eurocurrency rate or the base rate plus the applicable interest rate margin based upon either, whichever results in the lower applicable interest rate margin (subject to certain exceptions), the Company’s total leverage ratio and the corporate family rating of the Company as determined by Standard & Poor’s and Moody’s (ranging from 1.25% to 2.00% , in the case of the Eurocurrency margin, and 0.25% to 1.00% , in the case of the base rate margin). Swing line loans bear interest at the applicable rate, as specified under the terms of the 2015 Deutsche Bank Credit Agreement, based upon the currency borrowed. In conjunction with the 2015 Deutsche Bank Credit Agreement, the Company recorded a charge to Interest expense in the Consolidated Statement of Income for the year ended December 31, 2015 of $4.7 million to write-off certain deferred financing fees and original issue discount and expensed approximately $0.4 million of costs incurred in connection with the refinancing of the 2015 Deutsche Bank Credit Agreement. The Company had an original issue discount of $7.5 million and deferred financing fees of $8.1 million included in its Consolidated Balance Sheet as of December 31, 2015 , which will be accreted to Interest expense primarily using the effective interest method, over the life of the 2015 Deutsche Bank Credit Agreement. As of December 31, 2015 , the weighted-average interest rate of borrowings under the 2015 Deutsche Bank Credit Agreement was 1.83% , excluding accretion of original issue discount and amortization of deferred financing fees, and there was $688.8 million available on the revolving credit facility. The Company is also party to letter of credit facilities with total capacity of $718.8 million . Total letters of credit of $360.4 million were outstanding as of December 31, 2015 . On December 22, 2014, the Company entered into a receivables financing facility, pursuant to which it established a wholly owned, special purpose bankruptcy-remote subsidiary which purchases trade receivables from certain of the Company’s subsidiaries on an ongoing basis and pledges them to support its obligation as borrower under the receivables financing facility. This special purpose subsidiary has a separate legal existence from its parent and its assets are not available to satisfy the claims of creditors of the selling subsidiaries or any other member of the consolidated group. Availability of funds may fluctuate over time given changes in eligible receivable balances, but will not exceed the program limit. On December 21, 2015, the Company increased the receivables financing facility by $15 million to $95 million and extended the facility through December 20, 2016. As of December 31, 2015 , the total outstanding borrowings under the receivables financing facility were $75.8 million and the interest rate was 1.2% . The scheduled termination date for the receivables financing facility may be extended from time to time. The facility contains representations, warranties, covenants and indemnities customary for facilities of this type. The facility does not contain any covenants that the Company views as materially constraining to the activities of its business. The contractual maturities of the Company’s debt as of December 31, 2015 are as follows (1) : (In thousands) 2016 $ 5,792 2017 4,536 2018 4,598 2019 2,405 2020 1,408,916 Total contractual maturities 1,426,247 Debt discount (2) (8,700 ) Total debt $ 1,417,547 (1) Represents scheduled payments required under the 2015 Deutsche Bank Credit Agreement through June 5, 2020, as well as the contractual maturities of other debt outstanding as of December 31, 2015 , and reflects management’s intention to repay scheduled maturities of the term loans outstanding under the 2015 Deutsche Bank Credit Agreement and the trade receivables financing arrangement (if not extended) with proceeds from the revolving credit facility. (2) Includes $1.2 million of deferred debt issuance costs pursuant to the adoption of ASU No. 2015-03. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. Certain U.S. subsidiaries of the Company have agreed to guarantee the obligations of the Company under the 2015 Deutsche Bank Credit Agreement. The 2015 Deutsche Bank Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, incur debt or liens, merge or consolidate with others, dispose of assets, make investments or pay dividends. In addition, the 2015 Deutsche Bank Credit Agreement contains financial covenants requiring the Company to maintain a total leverage ratio, as defined therein, of not more than 3.5 to 1.0 and minimum interest coverage ratio, as defined therein, of 3.0 to 1.0, measured at the end of each quarter . The 2015 Deutsche Bank Credit Agreement contains various events of default (including failure to comply with the covenants under the 2015 Deutsche Bank Credit Agreement and related agreements) and upon an event of default the lenders may, subject to various customary cure rights, require the immediate payment of all amounts outstanding under the Term Loan and the Revolver. As of December 31, 2015, the Company is in compliance with the covenants under the 2015 Deutsche Bank Credit Agreement. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | Equity Common and Preferred Stock During the years ended December 31, 2015 , 2014 and 2013 , 676,126 , 252,674 and 265,995 shares of Common stock, respectively, were issued in connection with stock option exercises and employee share-based payment arrangements that vested during the year. On May 13, 2013, the Company sold 7,500,000 shares of newly issued Colfax Common stock to underwriters for public resale pursuant to a shelf registration statement for an aggregate purchase price of $331.9 million . In conjunction with this issuance, the Company recognized $12.0 million in equity issuance costs which were recorded as a reduction to Additional paid-in capital during the year ended December 31, 2013. The Company entered into a Conversion Agreement with the BDT Investor, pursuant to which the BDT Investor exercised its option to convert 13,877,552 shares of Series A Perpetual Convertible Preferred Stock into 12,173,291 shares of the Company’s Common stock plus cash in lieu of a .22807018 share interest, which conversion occurred on February 12, 2014. As consideration for the BDT Investor’s agreement to exercise its optional conversion right, the Company paid approximately $23.4 million to the BDT Investor, of which $19.6 million represents the Preferred stock conversion inducement payment in the Consolidated Statement of Income for the year ended December 31, 2014. On February 20, 2014, the Company sold 9,200,000 shares of newly issued Colfax Common stock to underwriters for public resale pursuant to a shelf registration statement for an aggregate purchase price of $632.5 million . In conjunction with this issuance, the Company recognized $22.1 million in equity issuance costs, which were recorded as a reduction to Additional paid-in capital during the year ended December 31, 2014. The Company contributed 66,000 shares, 183,000 shares and 88,200 shares of newly issued Colfax Common stock to its U.S. defined benefit pension plan on May 21, 2015, January 15, 2014 and September 12, 2013, respectively. Share Repurchase Program On October 11, 2015, the Company’s Board of Directors authorized the repurchase of up to $100.0 million of the Company’s Common stock from time-to-time on the open market or in privately negotiated transactions, which will be retired upon repurchase. The repurchase program is authorized until December 31, 2016 and does not obligate the Company to acquire any specific number of shares. The timing and amount of shares repurchased is to be determined by management based on its evaluation of market conditions and other factors. The repurchase program is being conducted pursuant to SEC Rule 10b-18. During the year ended December 31, 2015 , the Company repurchased 986,279 shares of its common stock in open market transactions for approximately $27.4 million . From January 1, 2016 through February 3, 2016, the Company has repurchased 1,000,000 shares of the Company’s Common stock under a plan complying with Rule 10b5-1 under the Securities Exchange Act of 1934. As of February 4, 2016, the remaining stock repurchase authorization provided by the Company’s Board of Directors is approximately $52 million . Accumulated Other Comprehensive Loss The following table presents the changes in the balances of each component of Accumulated other comprehensive loss including reclassifications out of Accumulated other comprehensive loss for the years ended December 31, 2015 , 2014 and 2013 . All amounts are net of tax and noncontrolling interest. Accumulated Other Comprehensive Loss Components Net Unrecognized Pension And Other Post-Retirement Benefit Cost Foreign Currency Translation Adjustment Unrealized Gain (Loss) On Hedging Activities Total (In thousands) Balance at January 1, 2013 $ (247,332 ) $ 96,877 $ 3,861 $ (146,594 ) Acquisition of shares held by noncontrolling interest — (381 ) — (381 ) Other comprehensive income (loss) before reclassifications: Net actuarial gain 77,515 — — 77,515 Foreign currency translation adjustment (3,297 ) 24,349 39 21,091 Gain on long-term intra-entity foreign currency transactions — 2,176 — 2,176 Loss on net investment hedges — — (14,261 ) (14,261 ) Unrealized gain on cash flow hedges — — 3,832 3,832 Other comprehensive income (loss) before reclassifications 74,218 26,525 (10,390 ) 90,353 Amounts reclassified from Accumulated other comprehensive loss 10,022 — — 10,022 Net current period Other comprehensive income (loss) 84,240 26,525 (10,390 ) 100,375 Balance at December 31, 2013 $ (163,092 ) $ 123,021 $ (6,529 ) $ (46,600 ) Acquisition of shares held by noncontrolling interest — (942 ) — (942 ) Other comprehensive (loss) income before reclassifications: Net actuarial loss (89,379 ) — — (89,379 ) Foreign currency translation adjustment 4,742 (351,234 ) (32 ) (346,524 ) Gain on long-term intra-entity foreign currency transactions — 2,096 — 2,096 Gain on net investment hedges — — 39,374 39,374 Unrealized loss on cash flow hedges — — (8,932 ) (8,932 ) Other 1,934 — — 1,934 Other comprehensive (loss) income before reclassifications (82,703 ) (349,138 ) 30,410 (401,431 ) Amounts reclassified from Accumulated other comprehensive loss 5,282 — — 5,282 Net current period Other comprehensive (loss) income (77,421 ) (349,138 ) 30,410 (396,149 ) Balance at December 31, 2014 $ (240,513 ) $ (227,059 ) $ 23,881 $ (443,691 ) Other comprehensive income (loss) before reclassifications: Net actuarial gain 28,349 — — 28,349 Foreign currency translation adjustment 7,747 (301,011 ) (382 ) (293,646 ) Loss on long-term intra-entity foreign currency transactions — (550 ) — (550 ) Gain on net investment hedges — — 14,537 14,537 Unrealized loss on cash flow hedges — — (2,873 ) (2,873 ) Other 3,817 — — 3,817 Other comprehensive income (loss) before reclassifications 39,913 (301,561 ) 11,282 (250,366 ) Amounts reclassified from Accumulated other comprehensive loss 7,342 — — 7,342 Net current period Other comprehensive income (loss) 47,255 (301,561 ) 11,282 (243,024 ) Balance at December 31, 2015 $ (193,258 ) $ (528,620 ) $ 35,163 $ (686,715 ) The effect on Net income of amounts reclassified out of each component of Accumulated other comprehensive loss for the years ended December 31, 2015 , 2014 and 2013 is as follows: Year Ended December 31, 2015 Amounts Reclassified From Accumulated Other Comprehensive Loss Tax Benefit Total (In thousands) Pension and other post-retirement benefit cost: Amortization of net loss (1) $ 10,953 $ (3,744 ) $ 7,209 Amortization of prior service cost (1) 248 (115 ) 133 $ 11,201 $ (3,859 ) $ 7,342 Year Ended December 31, 2014 Amounts Reclassified From Accumulated Other Comprehensive Loss Tax Benefit Total (In thousands) Pension and other post-retirement benefit cost: Amortization of net loss (1) $ 7,097 $ (2,063 ) $ 5,034 Amortization of prior service cost (1) 248 — 248 $ 7,345 $ (2,063 ) $ 5,282 Year Ended December 31, 2013 Amounts Reclassified From Accumulated Other Comprehensive Loss Tax Benefit Total (In thousands) Pension and other post-retirement benefit cost: Amortization of net loss (1) $ 10,489 $ (715 ) $ 9,774 Amortization of prior service cost (1) 248 — 248 $ 10,737 $ (715 ) $ 10,022 (1) Included in the computation of net periodic benefit cost. See Note 13 , “Defined Benefit Plans” for additional details. During the years ended December 31, 2015 , 2014 and 2013 , Noncontrolling interest decreased by $22.8 million , $12.4 million and $17.5 million , respectively, as a result of Other comprehensive loss, primarily due to foreign currency translation adjustment. Share-Based Payments The Company adopted the Colfax Corporation 2008 Omnibus Incentive Plan on April 21, 2008, as amended and restated on April 2, 2012 (the “2008 Plan”). The 2008 Plan provides the Compensation Committee of the Company’s Board of Directors discretion in creating employee equity incentives. Awards under the 2008 Plan may be made in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance shares, performance units, and other stock-based awards. The Company measures and recognizes compensation expense related to share-based payments based on the fair value of the instruments issued. Stock-based compensation expense is generally recognized as a component of Selling, general and administrative expense in the Consolidated Statements of Income, as payroll costs of the employees receiving the awards are recorded in the same line item. The Company’s Consolidated Statements of Income reflect the following amounts related to stock-based compensation: Year Ended December 31, 2015 2014 2013 (In thousands) Stock-based compensation expense $ 16,321 $ 17,580 $ 13,334 Deferred tax benefit 5,342 4,054 434 As of December 31, 2015 , the Company had $50.3 million of unrecognized compensation expense related to stock-based awards that will be recognized over a weighted-average period of approximately 1.7 years . The intrinsic value of awards exercised or issued upon vesting was $21.8 million , $13.3 million and $9.2 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. Stock Options Under the 2008 Plan, the Company may grant options to purchase Common stock, with a maximum term of 10 years at a purchase price equal to the market value of the Company’s Common stock on the date of grant. In the case of an incentive stock option granted to a holder of 10% of the Company’s outstanding Common stock, the Company may grant options to purchase Common stock with a maximum term of 5 years, at a purchase price equal to 110% of the market value of the Company’s Common stock on the date of grant. Stock-based compensation expense for stock option awards is based upon the grant-date fair value using the Black-Scholes option pricing model. The Company recognizes compensation expense for stock option awards on a straight-line basis over the requisite service period of the entire award. The following table shows the weighted-average assumptions used to calculate the fair value of stock option awards using the Black-Scholes option pricing model, as well as the weighted-average fair value of options granted: Year Ended December 31, 2015 2014 2013 Expected period that options will be outstanding (in years) 5.02 4.87 4.90 Interest rate (based on U.S. Treasury yields at the time of grant) 1.62 % 1.62 % 1.06 % Volatility 28.75 % 34.67 % 43.22 % Dividend yield — — — Weighted-average fair value of options granted $ 11.87 $ 22.65 $ 18.07 Expected volatility is estimated based on the historical volatility of comparable public companies. The Company considers historical data to estimate employee termination within the valuation model. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the Securities and Exchange Commission-approved “simplified method” noted under the provisions of Staff Accounting Bulletin No. 107 with the continued use of this method extended under the provisions of Staff Accounting Bulletin No. 110. Stock option activity is as follows: Number Weighted- Weighted- Aggregate (1) (In thousands) Outstanding at January 1, 2015 2,910,109 $ 40.19 Granted 2,135,169 41.63 Exercised (364,211 ) 16.62 Forfeited (381,156 ) 60.74 Expired (38,321 ) 41.74 Outstanding at December 31, 2015 4,261,590 $ 41.07 5.05 $ 1,916 Vested or expected to vest at December 31, 2015 4,196,996 $ 40.97 5.04 $ 1,916 Exercisable at December 31, 2015 1,701,182 $ 35.06 3.40 $ 1,916 (1) The aggregate intrinsic value is based upon the difference between the Company’s closing stock price at the date of the Consolidated Balance Sheet and the exercise price of the stock option for in-the-money stock options. The intrinsic value of outstanding stock options fluctuates based upon the trading value of the Company’s Common stock. Restricted Stock Units Under the 2008 Plan, the Compensation Committee of the Board of Directors may award performance-based restricted stock units (“PRSUs”), the vesting of which is contingent upon meeting various performance goals. The vesting of the stock units is determined based on whether the Company achieves the applicable performance criteria established by the Compensation Committee of the Board of Directors. If the performance criteria are satisfied, the units are subject to additional time vesting requirements, by which units will vest fully in two equal installments on the fourth and fifth anniversary of the grant date, provided the individual remains an employee during this period. Under the 2008 Plan, the Compensation Committee of the Board of Directors may award non-performance-based restricted stock units (“RSUs”) to select executives, employees and outside directors. The Compensation Committee determines the terms and conditions of each award, including the restriction period and other criteria applicable to the awards. Directors may also elect to defer their annual board fees into RSUs with immediate vesting. Delivery of the shares underlying these director restricted stock units is deferred until termination of the director’s service on the Company’s Board of Directors. The fair value of PRSUs and RSUs is equal to the market value of a share of Common stock on the date of grant and the related compensation expense is recognized ratably over the requisite service period and, for PRSUs, when it is expected that any of the performance criterion will be achieved. The performance criteria have not yet been met for the PRSUs granted during the years ended December 31, 2015 and 2014. The activity in the Company’s PRSUs and RSUs is as follows: PRSUs RSUs Number Weighted- Number Weighted- Nonvested at January 1, 2015 581,936 $ 38.67 168,911 $ 56.13 Granted 343,715 40.55 353,887 39.53 Vested (259,539 ) 25.64 (66,366 ) 42.69 Forfeited (143,101 ) 61.28 (42,911 ) 54.99 Nonvested at December 31, 2015 523,011 $ 40.19 413,521 $ 44.20 The fair value of shares vested during the years ended December 31, 2015 , 2014 and 2013 was $8.9 million , $6.4 million and $2.5 million , respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities Disclosure [Text Block] | Accrued Liabilities Accrued liabilities in the Consolidated Balance Sheets consisted of the following: December 31, 2015 2014 (1) (In thousands) Accrued payroll $ 99,383 $ 120,068 Advance payment from customers 45,590 58,049 Accrued taxes 51,834 52,599 Accrued asbestos-related liability 48,780 50,175 Warranty liability - current portion 36,128 47,966 Accrued restructuring liability - current portion 12,918 21,846 Accrued third-party commissions 10,275 11,026 Other 86,751 128,254 Accrued liabilities $ 391,659 $ 489,983 (1) During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. Accrued Restructuring Liability The Company’s restructuring programs include a series of restructuring actions to reduce the structural costs of the Company. A summary of the activity in the Company’s restructuring liability included in Accrued liabilities and Other liabilities in the Consolidated Balance Sheets is as follows: Year Ended December 31, 2015 Balance at Beginning of Period Provisions Payments Foreign Currency Translation Balance at End of Period (3) (In thousands) Restructuring and other related charges: Gas and Fluid Handling: Termination benefits (1) $ 7,551 $ 19,927 $ (22,994 ) $ (505 ) $ 3,979 Facility closure costs (2) 1,445 9,031 (7,643 ) (176 ) 2,657 8,996 28,958 (30,637 ) (681 ) 6,636 Non-cash impairment 2,569 31,527 Fabrication Technology: Termination benefits (1) 11,155 15,507 (20,196 ) (435 ) 6,031 Facility closure costs (2) 1,937 5,321 (6,647 ) (185 ) 426 13,092 20,828 (26,843 ) (620 ) 6,457 Non-cash impairment 8,822 29,650 Corporate and Other: Facility closure costs (2) 922 — (254 ) (43 ) 625 922 — (254 ) (43 ) 625 $ 23,010 49,786 $ (57,734 ) $ (1,344 ) $ 13,718 Non-cash impairment 11,391 $ 61,177 (1) Includes severance and other termination benefits, including outplacement services. The Company recognizes the cost of involuntary termination benefits at the communication date or ratably over any remaining expected future service period. Voluntary termination benefits are recognized as a liability and an expense when employees accept the offer and the amount can be reasonably estimated. (2) Includes the cost of relocating associates, relocating equipment and lease termination expense in connection with the closure of facilities. (3) As of December 31, 2015 , $12.9 million and $0.8 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. Year Ended December 31, 2014 Balance at Beginning of Period Provisions Payments Foreign Currency Translation Balance at End of Period (3) (In thousands) Restructuring and other related charges: Gas and Fluid Handling: Termination benefits (1) $ 3,638 $ 18,179 $ (13,887 ) $ (379 ) $ 7,551 Facility closure costs (2) 756 5,491 (4,714 ) (88 ) 1,445 4,394 23,670 (18,601 ) (467 ) 8,996 Non-cash impairment 2,863 26,533 Fabrication Technology: Termination benefits (1) 7,033 26,790 (22,227 ) (441 ) 11,155 Facility closure costs (2) 1,429 3,018 (2,355 ) (155 ) 1,937 8,462 29,808 (24,582 ) (596 ) 13,092 Non-cash impairment 1,780 31,588 Corporate and Other: Facility closure costs (2) 1,259 — (275 ) (62 ) 922 1,259 — (275 ) (62 ) 922 $ 14,115 53,478 $ (43,458 ) $ (1,125 ) $ 23,010 Non-cash impairment 4,643 $ 58,121 (1) Includes severance and other termination benefits, including outplacement services. The Company recognizes the cost of involuntary termination benefits at the communication date or ratably over any remaining expected future service period. Voluntary termination benefits are recognized as a liability and an expense when employees accept the offer and the amount can be reasonably estimated. (2) Includes the cost of relocating associates, relocating equipment and lease termination expense in connection with the closure of facilities. (3) As of December 31, 2014 , $21.8 million and $1.2 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. The Company expects to incur Restructuring and other related charges of approximately $70 million during the year ending December 31, 2016 related to these restructuring activities. |
Defined Benefit Plans
Defined Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Defined Benefit Plans The Company sponsors various defined benefit plans, defined contribution plans and other post-retirement benefits plans, including health and life insurance, for certain eligible employees or former employees. The Company uses December 31 st as the measurement date for all of its employee benefit plans. The following table summarizes the total changes in the Company’s pension and accrued post-retirement benefits and plan assets and includes a statement of the plans’ funded status: Pension Benefits Other Post-Retirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2015 2014 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,765,493 $ 1,640,418 $ 35,085 $ 28,823 Acquisitions 31,914 48,938 4,983 1,011 Service cost 4,612 4,883 33 155 Interest cost 54,807 70,469 1,170 1,304 Actuarial (gain) loss (93,878 ) 211,170 (6,410 ) 5,553 Foreign exchange effect (77,854 ) (97,525 ) — — Benefits paid (105,589 ) (111,971 ) (1,942 ) (1,761 ) Settlements (29,811 ) (1,387 ) — — Other 949 498 174 — Projected benefit obligation, end of year $ 1,550,643 $ 1,765,493 $ 33,093 $ 35,085 Accumulated benefit obligation, end of year $ 1,530,327 $ 1,739,642 $ 33,093 $ 35,085 Change in plan assets: Fair value of plan assets, beginning of year $ 1,469,103 $ 1,367,315 $ — $ — Acquisitions 28,591 42,051 — — Actual return on plan assets (9,390 ) 174,065 — — Employer contribution (1) 45,594 69,714 1,942 1,761 Foreign exchange effect (63,060 ) (70,851 ) — — Benefits paid (105,589 ) (111,971 ) (1,942 ) (1,761 ) Settlements (28,399 ) (1,387 ) — — Other 555 167 — — Fair value of plan assets, end of year $ 1,337,405 $ 1,469,103 $ — $ — Funded status, end of year $ (213,238 ) $ (296,390 ) $ (33,093 ) $ (35,085 ) Amounts recognized on the Consolidated Balance Sheet at December 31: Non-current assets $ 73,914 $ 58,997 $ — $ — Current liabilities (4,741 ) (5,328 ) (2,915 ) (2,749 ) Non-current liabilities (282,411 ) (350,059 ) (30,178 ) (32,336 ) Total $ (213,238 ) $ (296,390 ) $ (33,093 ) $ (35,085 ) (1) Contributions during the years ended December 31, 2015 and 2014 include contributions of 66,000 and 183,000 shares of Colfax Common stock, respectively, with values on the contribution dates of approximately $3.4 million and $11.9 million , respectively. The accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 and $1.3 billion and $1.0 billion , respectively, as of December 31, 2014 . The projected benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 and $1.4 billion and $1.1 billion , respectively, as of December 31, 2014 . The following table summarizes the changes in the Company’s foreign pension benefit obligation, which is determined based upon an employee’s expected date of separation, and plan assets, included in the table above, and includes a statement of the plans’ funded status: Foreign Pension Benefits Year Ended December 31, 2015 2014 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,265,143 $ 1,205,554 Acquisitions — 21,578 Service cost 4,506 4,883 Interest cost 37,253 51,658 Actuarial (gain) loss (64,801 ) 144,232 Foreign exchange effect (77,854 ) (97,525 ) Benefits paid (60,162 ) (64,347 ) Settlements (29,811 ) (1,387 ) Other 949 497 Projected benefit obligation, end of year $ 1,075,223 $ 1,265,143 Accumulated benefit obligation, end of year $ 1,054,907 $ 1,239,292 Change in plan assets: Fair value of plan assets, beginning of year $ 1,079,497 $ 999,197 Acquisitions — 20,873 Actual return on plan assets 11,159 139,460 Employer contribution 41,659 56,384 Foreign exchange effect (63,060 ) (70,851 ) Benefits paid (60,162 ) (64,347 ) Settlements (28,399 ) (1,387 ) Other 555 168 Fair value of plan assets, end of year $ 981,249 $ 1,079,497 Funded status, end of year $ (93,974 ) $ (185,646 ) Expected contributions to the Company’s pension and other post-employment benefit plans for the year ending December 31, 2016 , related to plans as of December 31, 2015 , are $34.9 million . The following benefit payments are expected to be paid during each respective fiscal year: Pension Benefits Other Post-Retirement Benefits All Plans Foreign Plans (In thousands) 2016 $ 88,062 $ 53,907 $ 2,915 2017 88,781 54,821 2,823 2018 89,611 55,994 2,717 2019 88,702 55,459 2,490 2020 89,083 56,074 2,268 2021- 2025 445,740 289,491 9,076 The Company’s primary investment objective for its pension plan assets is to provide a source of retirement income for the plans’ participants and beneficiaries. The assets are invested with the goal of preserving principal while providing a reasonable real rate of return over the long term. Diversification of assets is achieved through strategic allocations to various asset classes. Actual allocations to each asset class vary due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions, and the timing of benefit payments and contributions. The asset allocation is monitored and rebalanced as required, as frequently as on a quarterly basis in some instances. The following are the actual and target allocation percentages for the Company’s pension plan assets: Actual Asset Allocation 2015 2014 Allocation U.S. Plans: Equity securities: U.S. 42 % 43 % 30% - 45% International 16 % 15 % 10% - 20% Fixed income 41 % 41 % 30% - 50% Other 1 % 1 % 0% - 20% Cash and cash equivalents — % — % 0% - 5% Foreign Plans: Equity securities 32 % 30 % 10% - 50% Fixed income securities 64 % 66 % 50% - 90% Cash and cash equivalents 1 % 1 % 0% - 25% Other 3 % 3 % 0% - 5% A summary of the Company’s pension plan assets for each fair value hierarchy level for the periods presented follows (see Note 14, “Financial Instruments and Fair Value Measurements” for further description of the levels within the fair value hierarchy): December 31, 2015 Measured at Net Asset Value (1) Level Level Level (In thousands) U.S. Plans: Equity securities: U.S. large cap $ 100,226 $ — $ — $ — $ 100,226 U.S. small/mid cap 40,899 7,874 — — 48,773 International 58,642 — — — 58,642 Fixed income mutual funds: U.S. government and corporate 143,787 — — — 143,787 Other (2) 2,917 1,811 — — 4,728 Foreign Plans: Cash and cash equivalents — 12,832 — — 12,832 Equity securities 130,078 150,376 32,398 — 312,852 Non-U.S. government and corporate bonds — 282,504 343,870 — 626,374 Other (2) — 1,964 27,227 — 29,191 $ 476,549 $ 457,361 $ 403,495 $ — $ 1,337,405 (1) In accordance with ASU No. 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent)practical expedient (the “NAV”) have not been classified in the fair value hierarchy. These investments, consisting of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund, that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term. See further discussion in Note 3, “Recently Issued Accounting Pronouncements”. (2) Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. December 31, 2014 Measured at Net Asset Value (1) Level Level Level (In thousands) U.S. Plans: Equity securities: U.S. large cap $ 100,263 $ 3,901 $ — $ — $ 104,164 U.S. small/mid cap 43,670 19,540 — — 63,210 International 56,252 2,461 — — 58,713 Fixed income mutual funds: U.S. government and corporate 147,364 10,508 — — 157,872 Structured loan fund 1,226 — — — 1,226 Other (2) 2,798 1,623 — — 4,421 Foreign Plans: Cash and cash equivalents — 12,951 — — 12,951 Equity securities 125,273 161,524 39,310 — 326,107 Non-U.S. government and corporate bonds — 308,705 399,285 — 707,990 Other (2) — 2,040 30,409 — 32,449 $ 476,846 $ 523,253 $ 469,004 $ — $ 1,469,103 (1) In accordance with ASU No. 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent)practical expedient (the “NAV”) have not been classified in the fair value hierarchy. These investments, consisting primarily of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund, that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term. See further discussion in Note 3, “Recently Issued Accounting Pronouncements”. (2) Represents diversified portfolio funds and reinsurance contracts maintained for certain plans. The following table sets forth the components of net periodic benefit cost and Other comprehensive (loss) income of the Company’s defined benefit pension plans and other post-retirement employee benefit plans: Pension Benefits Other Post-Retirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 4,612 $ 4,883 $ 3,985 $ 33 $ 155 $ 179 Interest cost 54,807 70,469 63,132 1,170 1,304 1,090 Amortization 11,515 6,608 9,672 259 468 609 Settlement (gain) loss (582 ) 190 (592 ) — — — Other 525 328 (154 ) 174 — 125 Expected return on plan assets (58,107 ) (69,055 ) (58,511 ) — — — Net periodic benefit cost $ 12,770 $ 13,423 $ 17,532 $ 1,636 $ 1,927 $ 2,003 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Current year net actuarial (gain) loss $ (33,558 ) $ 96,005 $ (69,463 ) $ (6,410 ) $ 5,553 $ (6,072 ) Less amounts included in net periodic benefit cost: Amortization of net loss (11,515 ) (6,608 ) (9,672 ) (11 ) (220 ) (361 ) Settlement loss (952 ) (190 ) (32 ) — — — Amortization of prior service cost — — — (248 ) (248 ) (248 ) Total recognized in Other comprehensive (loss) income $ (46,025 ) $ 89,207 $ (79,167 ) $ (6,669 ) $ 5,085 $ (6,681 ) The following table sets forth the components of net periodic benefit cost and Other comprehensive (loss) income of the foreign defined benefit pension plans, included in the table above: Foreign Pension Benefits Year Ended December 31, 2015 2014 2013 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 4,506 $ 4,883 $ 3,985 Interest cost 37,253 51,658 46,775 Amortization 4,272 1,669 2,305 Settlement (gain) loss (582 ) 190 (592 ) Other 525 328 (154 ) Expected return on plan assets (32,921 ) (44,287 ) (34,541 ) Net periodic benefit cost $ 13,053 $ 14,441 $ 17,778 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Current year net actuarial (gain) loss $ (50,216 ) $ 38,904 $ (16,121 ) Less amounts included in net periodic benefit cost: Amortization of net loss (4,272 ) (1,669 ) (2,305 ) Settlement loss (952 ) (190 ) (32 ) Amortization of prior service cost — — — Total recognized in Other comprehensive (loss) income $ (55,440 ) $ 37,045 $ (18,458 ) The components of net unrecognized pension and other post-retirement benefit cost included in Accumulated other comprehensive loss in the Consolidated Balance Sheets that have not been recognized as a component of net periodic benefit cost are as follows: Pension Benefits Other Post-Retirement December 31, December 31, 2015 2014 2015 2014 (In thousands) Net actuarial loss (gain) $ 239,225 $ 285,250 $ (1,845 ) $ 4,576 Prior service cost — — 559 807 Total $ 239,225 $ 285,250 $ (1,286 ) $ 5,383 The components of net unrecognized pension and other post-retirement benefit cost included in Accumulated other comprehensive loss in the Consolidated Balance Sheet that are expected to be recognized as a component of net periodic benefit cost during the year ending December 31, 2016 are as follows: Pension Benefits Other Post- (In thousands) Net actuarial loss $ 8,336 $ 8 Prior service cost — 248 Total $ 8,336 $ 256 The key economic assumptions used in the measurement of the Company’s pension and other post-retirement benefit obligations are as follows: Pension Benefits Other Post-Retirement December 31, December 31, 2015 2014 2015 2014 Weighted-average discount rate: All plans 3.6 % 3.3 % 4.0 % 3.6 % Foreign plans 3.5 % 3.3 % — — Weighted-average rate of increase in compensation levels for active foreign plans 1.5 % 1.6 % — — The key economic assumptions used in the computation of net periodic benefit cost are as follows: Pension Benefits Other Post-Retirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 Weighted-average discount rate: All plans 3.3 % 4.4 % 4.0 % 3.6 % 4.4 % 3.5 % Foreign plans 3.3 % 4.4 % 4.2 % — — — Weighted-average expected return on plan assets: All plans 4.7 % 5.4 % 5.1 % — — — Foreign plans 3.9 % 4.9 % 4.3 % — — — Weighted-average rate of increase in compensation levels for active foreign plans 1.6 % 1.7 % 1.5 % — — — In determining discount rates, the Company utilizes the single discount rate equivalent to discounting the expected future cash flows from each plan using the yields at each duration from a published yield curve as of the measurement date. For measurement purposes, a weighted-average annual rate of increase in the per capita cost of covered health care benefits of approximately 6.0% was assumed. The rate was assumed to decrease gradually to 5.0% by 2021 for one the Company’s plans and to 4.5% by 2027 for the remaining plans and remain at those levels thereafter for benefits covered under the plans. The expected long-term rate of return on plan assets was based on the Company’s investment policy target allocation of the asset portfolio between various asset classes and the expected real returns of each asset class over various periods of time that are consistent with the long-term nature of the underlying obligations of these plans. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point change in assumed health care cost trend rates would have the following pre-tax effects: 1% Increase 1% Decrease (in thousands) Effect on total service and interest cost components for the year ended December 31, 2015 $ 118 $ (95 ) Effect on post-retirement benefit obligation at December 31, 2015 3,035 (2,471 ) The Company maintains defined contribution plans covering certain union and non-union employees. The Company’s expense for the years ended December 31, 2015 , 2014 and 2013 was $26.5 million , $25.3 million and $21.5 million , respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Fair Value Assets and Liabilities Measured On Recurring and Nonrecurring Basis [Text Block] | Financial Instruments and Fair Value Measurements The company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy based on the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level One: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level Two: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level Three: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying values of financial instruments, including Trade receivables, other receivables and Accounts payable, approximate their fair values due to their short-term maturities. The estimated fair value of the Company’s debt of $1.4 billion and $1.5 billion as of December 31, 2015 and 2014, respectively, was based on current interest rates for similar types of borrowings and is in Level Two of the fair value hierarchy. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. A summary of the Company’s assets and liabilities that are measured at fair value on a recurring basis for each fair value hierarchy level for the periods presented is as follows: December 31, 2015 Level Level Level Total (In thousands) Assets: Cash equivalents $ 22,516 $ — $ — $ 22,516 Foreign currency contracts related to sales - designated as hedges — 988 — 988 Foreign currency contracts related to sales - not designated as hedges — 664 — 664 Foreign currency contracts related to purchases - designated as hedges — 1,554 — 1,554 Foreign currency contracts related to purchases - not designated as hedges — 338 — 338 Deferred compensation plans — 4,000 — 4,000 $ 22,516 $ 7,544 $ — $ 30,060 Liabilities: Foreign currency contracts related to sales - designated as hedges $ — $ 6,368 $ — $ 6,368 Foreign currency contracts related to sales - not designated as hedges — 969 — 969 Foreign currency contracts related to purchases - designated as hedges — 322 — 322 Foreign currency contracts related to purchases - not designated as hedges — 128 — 128 Deferred compensation plans — 4,000 — 4,000 $ — $ 11,787 $ — $ 11,787 December 31, 2014 Level Level Level Total (In thousands) Assets: Cash equivalents $ 23,143 $ — $ — $ 23,143 Foreign currency contracts related to sales - designated as hedges — 4,524 — 4,524 Foreign currency contracts related to sales - not designated as hedges — 1,007 — 1,007 Foreign currency contracts related to purchases - designated as hedges — 1,980 — 1,980 Foreign currency contracts related to purchases - not designated as hedges — 478 — 478 Deferred compensation plans — 2,941 — 2,941 $ 23,143 $ 10,930 $ — $ 34,073 Liabilities: Foreign currency contracts related to sales - designated as hedges $ — $ 7,163 $ — $ 7,163 Foreign currency contracts related to sales - not designated as hedges — 2,793 — 2,793 Foreign currency contracts related to purchases - designated as hedges — 695 — 695 Foreign currency contracts related to purchases - not designated as hedges — 661 — 661 Deferred compensation plans — 2,941 — 2,941 $ — $ 14,253 $ — $ 14,253 There were no transfers in or out of Level One, Two or Three during the year ended December 31, 2015 . Cash Equivalents The Company’s cash equivalents consist of investments in interest-bearing deposit accounts and money market mutual funds which are valued based on quoted market prices. The fair value of these investments approximate cost due to their short-term maturities and the high credit quality of the issuers of the underlying securities. Derivatives The Company periodically enters into foreign currency, interest rate swap and commodity derivative contracts. The Company uses interest rate swaps to manage exposure to interest rate fluctuations. Foreign currency contracts are used to manage exchange rate fluctuations. Commodity futures contracts are used to manage costs of raw materials used in the Company’s production processes. There were no changes during the periods presented in the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis. Foreign Currency Contracts. Foreign currency contracts are measured using broker quotations or observable market transactions in either listed or over-the-counter markets. The Company primarily uses foreign currency contracts to mitigate the risk associated with customer forward sale agreements denominated in currencies other than the applicable local currency, and to match costs and expected revenues where production facilities have a different currency than the selling currency. As of December 31, 2015 and 2014 , the Company had foreign currency contracts with the following notional values: December 31, 2015 2014 (In thousands) Foreign currency contracts sold - not designated as hedges $ 119,653 $ 124,838 Foreign currency contracts sold - designated as hedges 206,366 250,743 Foreign currency contracts purchased - not designated as hedges 41,480 36,080 Foreign currency contracts purchased - designated as hedges 62,794 53,944 Total foreign currency derivatives $ 430,293 $ 465,605 The Company recognized the following in its Consolidated Financial Statements related to its derivative instruments: Year Ended December 31, 2015 2014 2013 (In thousands) Contracts Designated as Hedges: Foreign Currency Contracts - related to customer sales contracts: Unrealized (loss) gain $ (2,350 ) $ (4,706 ) $ 3,801 Realized (loss) gain (512 ) (5,776 ) 654 Foreign Currency Contracts - related to supplier purchase contracts: Unrealized (loss) gain (1,173 ) (1,719 ) 397 Realized gain (loss) 756 3,386 (298 ) Unrealized gain (loss) on net investment hedges (1) 14,537 39,374 (14,261 ) Contracts Not Designated in a Hedge Relationship: Foreign Currency Contracts - related to customer sales contracts: Unrealized gain (loss) 2,260 (1,389 ) (762 ) Realized (loss) gain (5,644 ) (4,342 ) 1,112 Foreign Currency Contracts - related to supplier purchases contracts: Unrealized gain (loss) 393 (1,304 ) 1,687 Realized gain 1,165 1,355 1,359 (1) The unrealized gain (loss) on net investment hedges is attributable to the change in valuation of Euro denominated debt. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. Concentrations of credit risk are considered to exist when there are amounts collectible from multiple counterparties with similar characteristics, which could cause their ability to meet contractual obligations to be similarly impacted by economic or other conditions. The Company performs credit evaluations of its customers prior to delivery or commencement of services and normally does not require collateral. Letters of credit are occasionally required when the Company deems necessary. Customers purchasing from our operations in China represented 20% and 18% of the Company’s Accounts receivable, net as of December 31, 2015 and 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Asbestos and Other Product Liability Contingencies Certain subsidiaries are each one of many defendants in a large number of lawsuits that claim personal injury as a result of exposure to asbestos from products manufactured with components that are alleged to have contained asbestos. Such components were acquired from third-party suppliers, and were not manufactured by any of the Company’s subsidiaries nor were the subsidiaries producers or direct suppliers of asbestos. The manufactured products that are alleged to have contained asbestos generally were provided to meet the specifications of the subsidiaries’ customers, including the U.S. Navy. The subsidiaries settle asbestos claims for amounts the Company considers reasonable given the facts and circumstances of each claim. The annual average settlement payment per asbestos claimant has fluctuated during the past several years. The Company expects such fluctuations to continue in the future based upon, among other things, the number and type of claims settled in a particular period and the jurisdictions in which such claims arise. To date, the majority of settled claims have been dismissed for no payment. Claims activity since December 31 related to asbestos claims is as follows (1) : Year Ended December 31, 2015 2014 2013 (Number of claims) Claims unresolved, beginning of period 21,681 22,393 23,523 Claims filed (2) 4,821 4,850 6,299 Claims resolved (3) (5,919 ) (5,562 ) (7,429 ) Claims unresolved, end of period 20,583 21,681 22,393 (In dollars) Average cost of resolved claims (4) $ 6,056 $ 7,513 $ 5,979 (1) Excludes claims filed by one legal firm that have been “administratively dismissed.” (2) Claims filed include all asbestos claims for which notification has been received or a file has been opened. (3) Claims resolved include all asbestos claims that have been settled, dismissed or that are in the process of being settled or dismissed based upon agreements or understandings in place with counsel for the claimants. (4) Excludes claims settled in Mississippi for which the majority of claims have historically been resolved for no payment and insurance recoveries. The Company has projected each subsidiary’s future asbestos-related liability costs with regard to pending and future unasserted claims based upon the Nicholson methodology. The Nicholson methodology is a standard approach used by experts and has been accepted by numerous courts. It is the Company’s policy to record a liability for asbestos-related liability costs for the longest period of time that it can reasonably estimate. The Company believes that it can reasonably estimate the asbestos-related liability for pending and future claims that will be resolved in the next 15 years and has recorded that liability as its best estimate. While it is reasonably possible that the subsidiaries will incur costs after this period, the Company does not believe the reasonably possible loss or range of reasonably possible loss is estimable at the current time. Accordingly, no accrual has been recorded for any costs which may be paid after the next 15 years. Defense costs associated with asbestos-related liabilities as well as costs incurred related to litigation against the subsidiaries’ insurers are expensed as incurred. Each subsidiary has separate insurance coverage acquired prior to Company ownership of each independent entity. In its evaluation of the insurance asset, the Company used differing insurance allocation methodologies for each subsidiary based upon the applicable law pertaining to the affected subsidiary. For one of the subsidiaries, the Delaware Court of Chancery ruled on October 14, 2009 that asbestos-related costs should be allocated among excess insurers using an “all sums” allocation (which allows an insured to collect all sums paid in connection with a claim from any insurer whose policy is triggered, up to the policy’s applicable limits) and that the subsidiary has rights to excess insurance policies purchased by a former owner of the business. Based upon this ruling mandating an “all sums” allocation, as well as more recent rulings by the Delaware Superior Court concerning the subsidiary’s coverage rights, the Company currently estimates that the subsidiary’s future expected recovery percentage is approximately 93% of asbestos-related costs with the subsidiary expected to be responsible for approximately 7% of its future asbestos-related costs. Depending on the outcome of the appeal discussed below, the expected insurance recovery percentage could change. The subsidiary was notified in 2010 by the primary and umbrella carrier who had been fully defending and indemnifying the subsidiary for 20 years that the limits of liability of its primary and umbrella layer policies had been exhausted. Since then, the subsidiary has sought coverage from certain excess layer insurers whose terms and conditions follow form to the umbrella carrier. Certain first-layer excess insurers have defended and/or indemnified the subsidiary, subject to their reservations of rights and their applicable policy limits. A trial concerning the payment obligations of the Company’s excess insurers concluded during the fourth quarter of 2012 and the Superior Court issued a final judgment during the third quarter of 2014. Appeals have been entered. The subsidiary has been largely unsuccessful in obtaining defense and indemnity payments from its excess insurers. While not impacting the results of operations, the Company has funded $78.4 million that it expects its excess insurers to ultimately reimburse through December 31, 2015 , and until the final rulings ordering payment by the insurers are issued, cash funding could range up to $10 million per quarter until final resolution. Various aspects of the final judgments of the Delaware Court of Chancery and Superior Court have been appealed to the Delaware Supreme Court, and an oral argument before the Delaware Supreme Court was held on May 27, 2015. The Delaware Supreme Court has certified certain questions of law to the New York Court of Appeals, New York’s highest appellate court, including the question of what allocation methodology should be applied to the subsidiary’s policies. In the event that the New York court were to apply a methodology other than “all sums”, the subsidiary’s future expected recovery would likely be reduced by amounts that we estimate could range from minimal to $30 million . In 2003, another subsidiary filed a lawsuit against a large number of its insurers and its former parent to resolve a variety of disputes concerning insurance for asbestos-related bodily injury claims asserted against it. Although none of these insurance companies contested coverage, they disputed the timing, reasonableness and allocation of payments. It was determined by court ruling in 2007 that the allocation methodology mandated by the New Jersey courts will apply. Further court rulings in December of 2009 clarified the allocation calculation related to amounts currently due from insurers as well as amounts the Company expects to be reimbursed for asbestos-related costs incurred in future periods. In connection with this litigation, the court engaged a special master to review the appropriate information and recommend an allocation formula in accordance with applicable law and the facts of the case. During 2010, the court-appointed special allocation master made its recommendation. In May 2011, the court accepted the recommendation with modifications. A final judgment at the trial court level in this litigation was rendered during the year ended December 31, 2011. The Appellate Division confirmed the trial court rulings during the year ended December 31, 2014. In 2015, the New Jersey Supreme Court refused to grant certification of the appeals, effectively ending the matter. The subsidiary expects to be responsible for approximately 19.9% of all future asbestos-related costs. Due to a statistically significant increase in mesothelioma and lung cancer claims and higher settlement values per claim that have occurred and are expected to continue to occur in certain jurisdictions, partially offset by lower claims and lower settlement values per claim in other jurisdictions, the Company recorded a $0.6 million pre-tax charge during year ended December 31, 2013 . The pre-tax charge was comprised of an increase in asbestos-related liabilities of $10.8 million partially offset by an increase in expected insurance recoveries of $10.2 million . During the year ended December 31, 2014 , the Company recorded a $6.9 million pre-tax charge, comprised of an increase in asbestos-related liabilities of $14.5 million partially offset by an increase in expected insurance recoveries of $7.6 million , due to a higher number of asbestos claims settlements and a decline in the insurance recovery rate that have occurred. Due to an increase in mesothelioma and lung cancer claims and higher settlement values per claim that have occurred and are expected to continue to occur in certain jurisdictions, the Company recorded a $4.1 million pre-tax charge during the year ended December 31, 2015 . The pre-tax charge was comprised of an increase in asbestos-related liabilities of $20.2 million partially offset by an increase in expected insurance recoveries of $16.1 million . These pre-tax charges were included in Selling, general and administrative expense in the Consolidated Statements of Income. The Company’s Consolidated Balance Sheets included the following amounts related to asbestos-related litigation: December 31, 2015 2014 (In thousands) Current asbestos insurance asset (1) $ 28,872 $ 34,540 Long-term asbestos insurance asset (2) 284,095 282,679 Long-term asbestos insurance receivable (2) 96,007 82,340 Accrued asbestos liability (3) 48,780 50,175 Long-term asbestos liability (4) 350,394 346,099 (1) Included in Other current assets in the Consolidated Balance Sheets. (2) Included in Other assets in the Consolidated Balance Sheets. (3) Represents current accruals for probable and reasonably estimable asbestos-related liability cost that the Company believes the subsidiaries will pay through the next 15 years, overpayments by certain insurers and unpaid legal costs related to defending themselves against asbestos-related liability claims and legal action against the Company’s insurers, which is included in Accrued liabilities in the Consolidated Balance Sheets. (4) Included in Other liabilities in the Consolidated Balance Sheets. Management’s analyses are based on currently known facts and a number of assumptions. However, projecting future events, such as new claims to be filed each year, the average cost of resolving each claim, coverage issues among layers of insurers, the method in which losses will be allocated to the various insurance policies, interpretation of the effect on coverage of various policy terms and limits and their interrelationships, the continuing solvency of various insurance companies, the amount of remaining insurance available, as well as the numerous uncertainties inherent in asbestos litigation could cause the actual liabilities and insurance recoveries to be higher or lower than those projected or recorded which could materially affect the Company’s financial condition, results of operations or cash flow. General Litigation On April 10, 2015, the Court of Chancery of the State of Delaware dismissed with prejudice, in its entirety and on the merits, the derivative action brought in March 2014 by two alleged stockholders of the Company against our directors, BDT CF Acquisition Vehicle, LLC and BDT Capital Partners, LLC. The Lincoln Electric Company and Lincoln Global, Inc. (collectively, “Lincoln Electric”) filed suit against The ESAB Group, Inc. and ESAB AB in the United States District Court, Eastern District of Texas, alleging infringement of certain patents allegedly owned by Lincoln Electric. The complaint, as amended, seeks undisclosed damages plus interest, an award of attorneys’ fees and expenses, and injunctive relief. The defendants answered the complaint, denying Lincoln Electric’s infringement allegations and asserting affirmative defenses, on October 20, 2015. The litigation is in an early stage, and is not expected to have a material adverse effect on the financial condition, results of operations or cash flow of the Company. The defendants are vigorously defending against the claims. The Company is also involved in various other pending legal proceedings arising out of the ordinary course of the Company’s business. None of these legal proceedings are expected to have a material adverse effect on the financial condition, results of operations or cash flow of the Company. With respect to these proceedings and the litigation and claims described in the preceding paragraphs, management of the Company believes that it will either prevail, has adequate insurance coverage or has established appropriate accruals to cover potential liabilities. Any costs that management estimates may be paid related to these proceedings or claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adverse to the Company, there could be a material adverse effect on the financial condition, results of operations or cash flow of the Company. Minimum Lease Obligations The Company’s minimum obligations under non-cancelable operating leases are as follows: December 31, 2015 (In thousands) 2016 $ 32,121 2017 19,798 2018 15,624 2019 14,064 2020 12,390 Thereafter 47,333 Total $ 141,330 The Company’s operating leases extend for varying periods and, in some cases, contain renewal options that would extend the existing terms. During the years ended December 31, 2015 , 2014 and 2013 , the Company’s net rental expense related to operating leases was $39.9 million , $39.8 million and $35.4 million , respectively. Off-Balance Sheet Arrangements As of December 31, 2015 , the Company had $351.4 million of unconditional purchase obligations with suppliers, substantially all of which is expected to be paid by December 31, 2016. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information The Company conducts its operations through three operating segments: gas handling, fluid handling and fabrication technology. The gas-handling and fluid-handling operating segments are aggregated into a single reportable segment. A description of the Company’s reportable segments is as follows: ▪ Gas and Fluid Handling - a global supplier of a broad range of gas- and fluid-handling products, including heavy-duty centrifugal and axial fans, rotary heat exchangers, gas compressors, pumps, fluid-handling systems, controls and specialty valves, which serves customers in the power generation, oil, gas and petrochemical, mining, marine (including defense) and general industrial and other end markets; and ▪ Fabrication Technology - a global supplier of welding equipment and consumables, cutting equipment and consumables and automated welding and cutting systems. Certain amounts not allocated to the two reportable segments and intersegment eliminations are reported under the heading “Corporate and other.” The Company’s management evaluates the operating results of each of its reportable segments based upon Net sales and segment operating income (loss), which represents Operating income (loss) before Restructuring and other related charges. The Company’s segment results were as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Net sales: Gas and fluid handling $ 1,981,816 $ 2,329,598 $ 2,104,048 Fabrication technology 1,985,237 2,294,878 2,103,161 Total Net sales $ 3,967,053 $ 4,624,476 $ 4,207,209 Segment operating income (loss) (1) : Gas and fluid handling $ 194,469 $ 254,240 $ 270,708 Fabrication technology 198,337 265,813 219,634 Corporate and other (46,984 ) (52,379 ) (48,448 ) Total segment operating income $ 345,822 $ 467,674 $ 441,894 Depreciation, amortization and impairment charges: Gas and fluid handling $ 68,457 $ 96,763 $ 62,792 Fabrication technology 84,913 76,406 55,339 Corporate and other 1,172 1,555 1,127 Total depreciation, amortization and impairment charges $ 154,542 $ 174,724 $ 119,258 Capital expenditures: Gas and fluid handling $ 34,303 $ 32,558 $ 37,995 Fabrication technology 35,261 47,955 33,437 Corporate and other 313 3,945 50 Total capital expenditures $ 69,877 $ 84,458 $ 71,482 (1) The following is a reconciliation of Income before income taxes to segment operating income: Year Ended December 31, 2015 2014 2013 Income before income taxes $ 236,902 $ 358,248 $ 302,795 Interest expense 47,743 51,305 103,597 Restructuring and other related charges 61,177 58,121 35,502 Segment operating income $ 345,822 $ 467,674 $ 441,894 December 31, 2015 2014 (In thousands) Investments in Equity Method Investees: Gas and fluid handling $ 3,805 $ 7,085 Fabrication technology 42,106 45,411 $ 45,911 $ 52,496 Total Assets (1) : Gas and fluid handling $ 3,482,471 $ 3,648,860 Fabrication technology 3,157,078 3,470,426 Corporate and other 93,370 92,231 Total Assets $ 6,732,919 $ 7,211,517 (1) During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-03 and ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. The detail of the Company’s operations by product type and geography is as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Net Sales by Major Product: Gas handling $ 1,449,115 $ 1,676,180 $ 1,440,731 Fluid handling 532,701 653,418 663,317 Welding and cutting 1,985,237 2,294,878 2,103,161 Total Net sales $ 3,967,053 $ 4,624,476 $ 4,207,209 Net Sales by Origin (1) : United States $ 1,124,883 $ 1,097,864 $ 836,636 Foreign locations 2,842,170 3,526,612 3,370,573 Total Net sales $ 3,967,053 $ 4,624,476 $ 4,207,209 (1) The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. December 31, 2015 2014 (2) (In thousands) Property, Plant and Equipment, Net (1) : United States $ 179,194 $ 177,957 Czech Republic 75,540 79,430 China 63,784 76,959 Other Foreign Locations 326,018 393,089 Property, plant and equipment, net $ 644,536 $ 727,435 (1) As the Company does not allocate all long-lived assets, specifically intangible assets, to each individual country, evaluation of long-lived assets in total is impracticable. (2) During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Selected Quarterly Data - (Unau
Selected Quarterly Data - (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | Selected Quarterly Data—(unaudited) Provided below is selected unaudited quarterly financial data for the years ended December 31, 2015 and 2014 . Quarter Ended March 27, 2015 June 26, 2015 September 25, 2015 December 31, (3) (In thousands, except per share data) Net sales $ 911,070 $ 1,025,375 $ 969,144 $ 1,061,464 Gross profit 294,438 328,037 295,874 333,425 Net income 56,275 58,829 23,545 48,529 Net income attributable to Colfax Corporation common shareholders 52,056 53,127 18,359 44,197 Net income per share – basic $ 0.42 $ 0.43 $ 0.15 $ 0.36 Net income per share – diluted $ 0.42 $ 0.42 $ 0.15 $ 0.36 Quarter Ended March 28, (1) June 27, (2) September 26, December 31, (3) (In thousands, except per share data) Net sales $ 1,054,331 $ 1,199,336 $ 1,164,453 $ 1,206,356 Gross profit 325,632 388,171 373,195 391,847 Net income 54,837 198,344 81,303 85,789 Net income attributable to Colfax Corporation common shareholders 24,877 191,785 73,389 80,134 Net income per share – basic $ 0.22 $ 1.55 $ 0.59 $ 0.65 Net income per share – diluted $ 0.22 $ 1.53 $ 0.59 $ 0.64 (1) On February 12, 2014 the Company entered into a Conversion Agreement with the BDT Investor. As consideration for the BDT Investor’s agreement to exercise its optional conversion right, the Company paid approximately $23.4 million to the BDT Investor, of which $19.6 million represents the Preferred stock conversion inducement payment. See Note 11, “Equity” for additional information regarding the Preferred stock conversion inducement payment. (2) Net income and Net income per share for the three months ended June 27, 2014 includes the benefit of deferred tax assets as a result of the effect of the Victor Acquisition on expected future income. This reassessment resulted in a decrease in the Company’s valuation allowance against U.S. deferred tax assets. The reduction in the valuation allowance created a non-cash income tax benefit for the three months ended June 27, 2014 of $113.1 million . (3) Net income and Net income per share for the three months ended December 31, 2015 and 2014 , was favorably impacted by the enactment of the U.S. tax extenders packages related to the exemption from taxation of certain foreign income in the United States. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Balance at Charged to Cost and (1) Charged to Other (2) Write-Offs Write-Downs and Acquisitions and Other (3) Foreign Balance at (In thousands) Year Ended December 31, 2015: Allowance for doubtful accounts $ 27,256 $ 16,225 $ — $ (526 ) $ — $ (3,450 ) $ 39,505 Allowance for excess slow-moving and obsolete inventory 34,573 8,078 — (2,225 ) — (4,298 ) 36,128 Valuation allowance for deferred tax assets 159,252 11,461 (3,862 ) (2,845 ) — (2,976 ) 161,030 Year Ended December 31, 2014: Allowance for doubtful accounts $ 31,282 $ 2,950 $ — $ (4,100 ) $ — $ (2,876 ) $ 27,256 Allowance for excess slow-moving and obsolete inventory 32,773 8,748 — (5,098 ) — (1,850 ) 34,573 Valuation allowance for deferred tax assets 360,910 11,933 (65,999 ) (146,177 ) 1,356 (2,771 ) 159,252 Year Ended December 31, 2013: Allowance for doubtful accounts $ 16,464 $ 12,707 $ — $ — $ 2,753 $ (642 ) $ 31,282 Allowance for excess slow-moving and obsolete inventory 9,221 21,629 — (2,026 ) 4,207 (258 ) 32,773 Valuation allowance for deferred tax assets 357,638 30,554 (27,233 ) (3,373 ) 4,925 (1,601 ) 360,910 (1) Amounts charged to expense are net of recoveries for the respective period. (2) Represents amount charge to Accumulated other comprehensive loss and, for the year ended December 31, 2014, includes reclassifications to deferred tax asset accounts. (3) The valuation allowance for deferred tax assets during the year ended December 31, 2013 reflects the impact of retrospective adjustments recorded during the year ended December 31, 2014. The valuation allowance for deferred tax assets during the year ended December 31, 2014 reflects the impact of retrospective adjustments recorded during the year ended December 31, 2015. See Note 4, “Acquisitions” for further discussion. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The Company’s Consolidated Financial Statements include the accounts of the Company and its subsidiaries. Less than wholly owned subsidiaries, including joint ventures, are consolidated when it is determined that the Company has a controlling financial interest, which is generally determined when the Company holds a majority voting interest. When protective rights, substantive rights or other factors exist, further analysis is performed in order to determine whether or not there is a controlling financial interest. The Consolidated Financial Statements reflect the assets, liabilities, revenues and expenses of consolidated subsidiaries and the noncontrolling parties’ ownership share is presented as a noncontrolling interest. All significant intercompany accounts and transactions have been eliminated. |
Equity Method Investments, Policy [Policy Text Block] | Equity Method Investments Investments in joint ventures, where the Company has a significant influence but not a controlling interest, are accounted for using the equity method of accounting. Investments accounted for under the equity method are initially recorded at the amount of the Company’s initial investment and adjusted each period for the Company’s share of the investee’s income or loss and dividends paid. All equity investments are reviewed periodically for indications of other than temporary impairment, including, but not limited to, significant and sustained decreases in quoted market prices or a series of historic and projected operating losses by investees. If the decline in fair value is considered to be other than temporary, an impairment loss is recorded and the investment is written down to a new carrying value. Investments in joint ventures acquired in a business combination are recognized in the opening balance sheet at fair value. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company generally recognizes revenues and costs from product sales when title passes to the buyer and all of the following criteria are met: persuasive evidence of an arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers, and collectibility is reasonably assured. Product delivery occurs when title and risk of loss transfer to the customer. The Company’s shipping terms vary based on the contract. If any significant obligations to the customer with respect to such sale remain to be fulfilled following shipments, typically involving obligations relating to installation and acceptance by the buyer, revenue recognition is deferred until such obligations have been fulfilled. Any customer allowances and discounts are recorded as a reduction in reported revenues at the time of sale because these allowances reflect a reduction in the sales price for the products sold. These allowances and discounts are estimated based on historical experience and known trends. Revenue related to service agreements is recognized as revenue over the term of the agreement. Progress billings are generally shown as a reduction of Inventories, net unless such billings are in excess of accumulated costs, in which case such balances are included in Accrued liabilities in the Consolidated Balance Sheets. The Company recognizes revenue and cost of sales on gas-handling long-term contracts using the “percentage of completion method” in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Under this method, contract revenues are recognized over the performance period of the contract in direct proportion to the costs incurred as a percentage of total estimated costs for the entirety of the contract. Any recognized revenues that have not been billed to a customer are recorded as a component of Trade receivables and any billings of customers in excess of recognized revenues are recorded as a component of Accounts payable. As of December 31, 2015 , there were $149.5 million of revenues in excess of billings and $146.3 million of billings in excess of revenues on long-term contracts in the Consolidated Balance Sheet. As of December 31, 2014 , there were $190.7 million of revenues in excess of billings and $175.3 million of billings in excess of revenues on long-term contracts in the Consolidated Balance Sheet. The Company has contracts in various stages of completion. Such contracts require estimates to determine the appropriate cost and revenue recognition. Significant management judgments and estimates, including estimated costs to complete projects, must be made and used in connection with revenue recognized during each period. Current estimates may be revised as additional information becomes available. The revisions are recorded in income in the period in which they are determined using the cumulative catch-up method of accounting. See Note 16, “Segment Information” for sales by major product group. Amounts billed for shipping and handling are recorded as revenue. Shipping and handling expenses are recorded as a component of Cost of sales. |
Taxes Collected From Customers and Remitted To Governmental Authorities, Policy [Policy Text Block] | Taxes Collected from Customers and Remitted to Governmental Authorities The Company collects various taxes and fees as an agent in connection with the sale of products and remits these amounts to the respective taxing authorities. These taxes and fees have been presented on a net basis in the Consolidated Statements of Income and are recorded as a component of Accrued liabilities in the Consolidated Balance Sheets until remitted to the respective taxing authority. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expense Research and development costs of $41.5 million , $43.0 million and $27.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are expensed as incurred and are included in Selling, general and administrative expense in the Consolidated Statements of Income. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs of $14.5 million , $18.2 million and $17.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, are expensed as incurred and are included in Selling, general and administrative expense in the Consolidated Statements of Income. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include all financial instruments purchased with an initial maturity of three months or less. |
Trade Receivables, Policy [Policy Text Block] | Trade Receivables Trade receivables are presented net of an allowance for doubtful accounts. The Company records an allowance for doubtful accounts based upon estimates of amounts deemed uncollectible and a specific review of significant delinquent accounts factoring in current and expected economic conditions. Estimated losses are based on historical collection experience, and are reviewed periodically by management. During the year ended December 31, 2015, the Company recorded an increase in the allowance for doubtful accounts of specific South American customers of $9.4 million . |
Inventories, Policy [Policy Text Block] | Inventories Inventories, net include the cost of material, labor and overhead and are stated at the lower of cost (determined under various methods including average cost, last-in, first-out and first-in, first-out, but predominantly first-in, first-out) or market. For gas-handling long-term contracts, cost is primarily determined based upon actual cost. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product. The Company records as a charge to Cost of sales any amounts required to reduce the carrying value of inventories to net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment, net are stated at historical cost, which includes the fair values of such assets acquired. Depreciation of property, plant and equipment is recorded on a straight-line basis over estimated useful lives. Assets recorded under capital leases are amortized over the shorter of their estimated useful lives or the lease terms, which range from three to 15 years . Repair and maintenance expenditures are expensed as incurred unless the repair extends the useful life of the asset. |
Impairment of Goodwill and Indefinite-Lived Intangible Assets, Policy [Policy Text Block] | Impairment of Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the costs in excess of the fair value of net assets acquired associated with acquisitions by the Company. Indefinite-lived intangible assets consist of trade names. The Company evaluates the recoverability of Goodwill and indefinite-lived intangible assets annually or more frequently if an event occurs or circumstances change in the interim that would more likely than not reduce the fair value of the asset below its carrying amount. Goodwill and indefinite-lived intangible assets are considered to be impaired when the net book value of a reporting unit or asset exceeds its implied fair value. In the evaluation of Goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting entity is less than its carrying value. If the Company determines that it is not more likely than not for a reporting unit’s fair value to be less than its carrying value, a calculation of the fair value is not performed. If the Company determines that it is more likely than not for a reporting unit’s fair value to be less than its carrying value, a calculation of the reporting entity’s fair value is performed and compared to the carrying value of that entity. In certain instances, the Company may skip the qualitative assessment and proceed directly to the first step of the quantitative impairment test. If the carrying value of a reporting unit exceeds its fair value, Goodwill of that reporting unit is potentially impaired and step two of the impairment analysis is performed. In step two of the analysis, an impairment loss is recorded equal to the excess of the carrying value of the reporting unit’s Goodwill over its implied fair value should such a circumstance arise. The Company measures fair value of reporting units based on a present value of future discounted cash flows and a market valuation approach. The discounted cash flows model indicates the fair value of the reporting units based on the present value of the cash flows that the reporting units are expected to generate in the future. Significant estimates in the discounted cash flows model include: the weighted average cost of capital; long-term rate of growth and profitability of our business; and working capital effects. The market valuation approach indicates the fair value of the business based on a comparison of the Company against certain market information. Significant estimates in the market approach model include identifying appropriate market multiples and assessing earnings before interest, income taxes, depreciation and amortization in estimating the fair value of the reporting units. Based on the results of the qualitative assessment for each reporting unit performed as of September 26, 2015, the Company concluded based on a preponderance of positive indicators and the weight of such indicators that the fair values of our Fluid Handling, Howden Compressors and Howden Heavy Fans & Heaters reporting units are more likely than not greater than their respective carrying amounts and as a result, quantitative analyses would not be needed. Therefore, no further testing of goodwill for impairment was performed for these reporting units. For the Fabrication Technology reporting unit, the Company noted unfavorable domestic and international economic trends, particularly trading volumes, which are driven by overall macroeconomic conditions within the welding industry. As such, the Company did not perform a qualitative assessment of goodwill for the Fabrication Technology reporting unit and proceeded directly to performing the first step of the two-step quantitative goodwill impairment test for the annual impairment analysis performed as of September 26, 2015. The Company’s quantitative impairment assessment of Goodwill associated with the Fabrication Technology reporting unit, based on the methodologies identified above, resulted in a calculated fair value that exceeded the carrying value of the reporting unit. The annual Goodwill impairment analysis performed as of September 26, 2015, September 27, 2014 and September 28, 2013 indicated no impairment to be present. In the evaluation of indefinite-lived intangible assets for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying value. If the Company determines that it is not more likely than not for the indefinite-lived intangible asset’s fair value to be less than its carrying value, a calculation of the fair value is not performed. If the Company determines that it is more likely than not that the indefinite-lived intangible asset’s fair value is less than its carrying value, a calculation is performed and compared to the carrying value of the asset. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Company measures the fair value of our indefinite-lived intangible assets using the “relief from royalty” method. Significant estimates in this approach include projected revenues and royalty and discount rates for each trade name evaluated. From time-to-time, the Company has identified certain indefinite-lived intangible assets that, due to indicators present at the specific operation associated with the indefinite-lived intangible asset, should be tested for impairment prior to the annual impairment evaluation. During the three months ended September 25, 2015 , an analysis was performed to evaluate certain intangible assets related to a specific operation within the Company due to a decline in anticipated performance at the operation associated with those assets. The analysis determined an indefinite-lived trade name within the Company’s fabrication technology segment was impaired based upon relief from royalty measurements and resulted in a $1.5 million impairment loss calculated as the difference between the fair value of the asset and its carrying value as of the date of the impairment test. The impairment loss was included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2015 . The calculated fair value of the asset was $2.8 million and is included in Level Three of the fair value hierarchy. During the year ended December 31, 2014 , prior to the annual impairment evaluation, an analysis was performed to evaluate an indefinite-lived intangible asset related to a specific operation within the gas- and fluid-handling segment due to the decision to substantially reduce its operations. The analysis determined the indefinite-lived intangible asset, consisting of a trade name, was no longer recoverable based upon relief from royalty measurements and resulted in a $2.9 million impairment loss included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2014 . The analyses performed as of September 26, 2015 , September 27, 2014 and September 28, 2013 resulted in no impairment charges, except for $0.2 million of an impairment loss related to an indefinite-lived intangible asset included in the gas- and fluid-handling segment for the year ended December 31, 2013. This impairment resulted from a decline in anticipated revenue related to this asset. The impairment loss is included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2013 and was calculated as the difference between the fair value of the asset under the relief from royalty method and its carrying value as of the date of the impairment test. |
Impairment of Long-Lived Assets Other than Goodwill and Indefinite-Lived Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets Other than Goodwill and Indefinite-Lived Intangible Assets Intangibles primarily represent acquired customer relationships, acquired order backlog, acquired technology and software license agreements. Acquired order backlog is amortized in the same period the corresponding revenue is recognized. A portion of the Company’s acquired customer relationships is being amortized on an accelerated basis over periods ranging from seven to 30 years based on the present value of the future cash flows expected to be generated from the acquired customers. All other intangibles are being amortized on a straight-line basis over their estimated useful lives, generally ranging from two to 20 years . The Company assesses its long-lived assets other than Goodwill and indefinite-lived intangible assets for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets. If these projected cash flows are less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss is measured based upon the difference between the carrying amounts and the fair values of the assets. Assets to be disposed of are reported at the lower of the carrying amounts or fair value less cost to sell. Management determines fair value using the discounted cash flow method or other accepted valuation techniques. During the year ended December 31, 2015 , an analysis was performed to evaluate certain long-lived intangible assets related to a specific operation within the gas- and fluid-handling segment due to a decline in projected cash flows associated with the asset group. The analysis determined the customer relationship finite-lived, intangible asset was impaired. The impairment was calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the asset and its carrying value as of the measurement date. The $1.7 million impairment loss was included in Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2015 . Subsequent to the impairment, the fair value of the asset was $0.8 million , which is included in Level Three of the fair value hierarchy and is not material to the Consolidated Financial Statements. In addition, an analysis was performed during the year ended December 31, 2014 to evaluate certain long-lived intangible assets related to a specific operation within the gas- and fluid-handling segment due to the decision to substantially reduce its operations. The analysis determined the long-lived intangible assets, primarily consisting of acquired customer relationships and acquired technology, were no longer recoverable based upon projected undiscounted net cash flows. Further, as a result of management’s evaluation of projected cash flows related to another operation within the gas-and fluid-handling segment, an analysis was performed to evaluate the long-lived intangible assets related to that operation. The analysis determined certain long-lived intangible assets, primarily consisting of acquired customer relationships, were impaired. The impairment was calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the asset group and its carrying value as of the measurement date. The Company recorded $10.5 million of intangible asset impairment losses related to these two operations as a component of Selling, general and administrative expense in the Consolidated Statement of Income for the year ended December 31, 2014 . The fair value of these assets of $3.3 million as of December 31, 2014 are included in Level Three of the fair value hierarchy and are not material to the Consolidated Financial Statements. The Company recorded asset impairment losses related to facility closures totaling $9.3 million , $4.6 million and $1.9 million during the years ended December 31, 2015 , 2014 and 2013 , respectively, as a component of Restructuring and other related charges in the Consolidated Statements of Income. The aggregate carrying value of these assets subsequent to impairment was $21.1 million , $15.1 million and $4.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Derivatives, Policy [Policy Text Block] | Derivatives The Company is subject to foreign currency risk associated with the translation of the net assets of foreign subsidiaries to United States (“U.S.”) dollars on a periodic basis. The Company’s 2015 Deutsche Bank Credit Agreement (as defined and further discussed in Note 10, “Debt”) includes debt denominated in the Euro of €263.5 million as of December 31, 2015 , which has been designated as a net investment hedge in order to mitigate a portion of this risk. Derivative instruments are generally recognized on a gross basis in the Consolidated Balance Sheets in either Other current assets, Other assets, Accrued liabilities or Other liabilities depending upon their respective fair values and maturity dates. The Company designates a portion of its foreign exchange contracts as cash flow hedges and fair value hedges. For all instruments designated as hedges, including net investment hedges, cash flow hedges and fair value hedges, the Company formally documents the relationship between the hedging instrument and the hedged item, as well as the risk management objective and the strategy for using the hedging instrument. The Company assesses whether the relationship between the hedging instrument and the hedged item is highly effective at offsetting changes in the fair value both at inception of the hedging relationship and on an ongoing basis. For cash flow hedges and net investment hedges, unrealized gains and losses are recognized as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets to the extent that it is effective at offsetting the change in the fair value of the hedged item and realized gains and losses are recognized in the Consolidated Statements of Income consistent with the underlying hedged instrument. Gains and losses related to fair value hedges are recorded as an offset to the fair value of the underlying asset or liability, primarily Trade receivables and Accounts payable in the Consolidated Balance Sheets. The Company does not enter into derivative contracts for trading purposes. See Note 14, “Financial Instruments and Fair Value Measurements” for additional information regarding the Company’s derivative instruments. |
Warranty Costs, Policy [Policy Text Block] | Warranty Costs Estimated expenses related to product warranties are accrued as the revenue is recognized on products sold to customers and included in Cost of sales in the Consolidated Statements of Income. Estimates are established using historical information as to the nature, frequency, and average costs of warranty claims. The activity in the Company’s warranty liability, which is included in Accrued liabilities and Other liabilities in the Company’s Consolidated Financial Statements, consisted of the following: Year Ended December 31, 2015 2014 (In thousands) Warranty liability, beginning of period $ 51,135 $ 65,512 Accrued warranty expense 21,092 23,019 Changes in estimates related to pre-existing warranties (1,820 ) (9,966 ) Cost of warranty service work performed (29,342 ) (27,389 ) Acquisitions 321 4,488 Foreign exchange translation effect (3,979 ) (4,529 ) Warranty liability, end of period $ 37,407 $ 51,135 |
Income Taxes, Policy [Policy Text Block] | Income Taxes Income taxes for the Company are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the Consolidated Financial Statements and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is generally recognized in Provision for (benefit from) income taxes in the period that includes the enactment date. Valuation allowances are recorded if it is more likely than not that some portion of the deferred income tax assets will not be realized. In evaluating the need for a valuation allowance, the Company takes into account various factors, including the expected level of future taxable income and available tax planning strategies. Any changes in judgment about the valuation allowance are recorded through Provision for (benefit from) income taxes and are based on changes in facts and circumstances regarding realizability of deferred tax assets. The Company must presume that an income tax position taken in a tax return will be examined by the relevant tax authority and determine whether it is more likely than not that the tax position will be sustained upon examination based upon the technical merits of the position. An income tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Company establishes a liability for unrecognized income tax benefits for income tax positions for which it is more likely than not that a tax position will not be sustained upon examination by the respective taxing authority to the extent such tax positions reduce the Company’s income tax liability. The Company recognizes interest and penalties related to unrecognized income tax benefits in the Provision for (benefit from) income taxes in the Consolidated Statements of Income. |
Foreign Currency Exchange Gains and Losses, Policy [Policy Text Block] | Foreign Currency Exchange Gains and Losses The Company’s financial statements are presented in U.S. dollars. The functional currencies of the Company’s operating subsidiaries are generally the local currencies of the countries in which each subsidiary is located. Assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the balance sheet date. The amounts recorded in each year in Foreign currency translation are net of income taxes to the extent the underlying equity balances in the entities are not deemed to be permanently reinvested. Revenues and expenses are translated at average rates of exchange in effect during the year. Transactions in foreign currencies are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated for inclusion in the Consolidated Balance Sheets are recognized in Selling, general and administrative expense or Interest expense in the Consolidated Statements of Income for that period. The Company considers the Venezuelan bolivar fuerte (“bolivar”) a highly inflationary currency. Therefore, financial statements of the Company’s Venezuelan operations are remeasured into their parents’ reporting currency. During the years ended December 31, 2014 and 2013, currency devaluations of approximately 87% and 32% , respectively, of the bolivar relative to the U.S. dollar resulted in foreign currency transaction losses of $6.3 million and $2.9 million recognized in Selling, general and administrative expense in the Consolidated Statements of Income for the years ended December 31, 2014 and 2013, respectively. In February 2015, the Venezuelan government introduced a marginal foreign exchange system ("SIMADI") which replaces an auction-based foreign exchange system that began operating on March 24, 2014 ("SICAD II"), which was previously used to remeasure Venezuelan operations. During the year ended December 31, 2015, the Company determined the SIMADI to be the most appropriate rate with which to remeasure Venezuelan operations from the multiple current legal mechanisms in Venezuela to exchange currency. The foreign currency transaction loss recognized related to the adoption of the SIMADI did not have a material impact on our Consolidated Statement of Income for the year ended December 31, 2015. Future impacts to earnings of applying highly inflationary accounting for Venezuela on the Company’s Consolidated Financial Statements will be dependent upon movements in the applicable exchange rates between the bolivar and the parents’ reporting currency and the amount of monetary assets and liabilities included in the Company’s Venezuelan operations’ balance sheets. As of and for the years ended December 31, 2015 and 2014 , the Company’s Venezuelan operations represented less than 1% of the Company’s Total assets and Net sales. The bolivar-denominated monetary net asset position, primarily related to cash and cash equivalents, was $0.1 million and $0.7 million in the Consolidated Balance Sheets as of December 31, 2015 and 2014 , respectively. During the year ended December 31, 2015 , the Company recognized a net foreign currency transaction loss of $3.9 million and a gain of $2.1 million in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income. During the year ended December 31, 2014 , the Company recognized net foreign currency transaction losses of $5.1 million and $5.5 million in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income, including the $6.3 million loss related to the devaluation of the bolivar discussed above. During the year ended December 31, 2013 , net foreign currency transaction losses of $4.1 million and $5.2 million were recognized in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income, including the $2.9 million loss related to the devaluation of the bolivar discussed above. |
Debt Issuance Costs and Debt Discount, Policy [Policy Text Block] | Debt Issuance Costs and Debt Discount Costs directly related to the placement of debt are capitalized and amortized to Interest expense primarily using the effective interest method over the term of the related obligation. Net deferred issuance costs of $8.1 million and $9.9 million , respectively, were included in the Consolidated Balance Sheets as of December 31, 2015 and 2014 , which includes $13.4 million and $8.6 million , respectively, of accumulated amortization. As of December 31, 2015 , $6.9 million and $1.2 million of deferred issuance costs were included in Other assets and as a reduction of Long-term debt, respectively. As of December 31, 2014 , $7.5 million and $2.4 million of deferred issuance costs were included in Other assets and as a reduction of Long-term debt, respectively. See further discussion of presentation of deferred issuance costs in the Consolidated Balance Sheets in Note 3, “Recently Issued Accounting Pronouncements” as a result of adoption of Accounting Standards Update No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30)”. During the years ended December 31, 2015 , 2014 and 2013 , the Company deferred $3.4 million , $0.3 million and $7.1 million , respectively, of debt issuance costs. Further, the carrying value of Long-term debt is reduced by an original issue discount, which is accreted to Interest expense using the effective interest method over the term of the related obligation. See Note 10, “Debt” for additional discussion regarding the Company’s borrowing arrangements. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The Company makes certain estimates and assumptions in preparing its Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses for the period presented. Actual results may differ from those estimates. |
Reclassifications, Policy [Policy Text Block] | Reclassifications Certain prior period amounts have been reclassified to conform to current year presentations. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The activity in the Company’s warranty liability, which is included in Accrued liabilities and Other liabilities in the Company’s Consolidated Financial Statements, consisted of the following: Year Ended December 31, 2015 2014 (In thousands) Warranty liability, beginning of period $ 51,135 $ 65,512 Accrued warranty expense 21,092 23,019 Changes in estimates related to pre-existing warranties (1,820 ) (9,966 ) Cost of warranty service work performed (29,342 ) (27,389 ) Acquisitions 321 4,488 Foreign exchange translation effect (3,979 ) (4,529 ) Warranty liability, end of period $ 37,407 $ 51,135 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation [Table Text Block] | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition for all acquisitions accounted for under the acquisition method of accounting and consummated during the years ended December 31, 2015 , 2014 and 2013 . For the acquisitions consummated during the year ended December 31, 2015 , the amounts represent the Company’s best estimate of the aggregate fair value of the assets acquired and liabilities assumed. These amounts are based upon certain valuations and studies that have yet to be finalized, and accordingly, the assets acquired and liabilities assumed, as detailed below, are subject to adjustment once the detailed analyses are completed. Substantially all of the Goodwill recognized for acquisitions consummated during the year ended December 31, 2015 is expected to be deductible for income tax purposes. 2015 2014 2013 (In thousands) Trade receivables $ 15,680 $ 76,678 $ 74,387 Inventories 20,898 107,785 49,871 Property, plant and equipment 20,653 56,988 92,247 Goodwill 85,216 612,866 284,294 Intangible assets 85,113 389,700 104,272 Accounts payable (9,909 ) (34,271 ) (70,122 ) Debt — — (10,942 ) Other assets and liabilities, net (21,644 ) (260,946 ) (99,205 ) Consideration, net of cash acquired $ 196,007 $ 948,800 $ 424,802 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Net income per share available to Colfax Corporation common shareholders was computed as follows: Year Ended December 31, 2015 2014 2013 (In thousands, except share data) Computation of Net income per share - basic: Net income available to Colfax Corporation common shareholders $ 167,739 $ 370,185 $ 158,232 Less: net income attributable to participating securities (1) — — (3,740 ) $ 167,739 $ 370,185 $ 154,492 Weighted-average shares of Common stock outstanding - basic 124,101,033 121,143,790 99,198,570 Net income per share - basic $ 1.35 $ 3.06 $ 1.56 Computation of Net income per share - diluted: Net income available to Colfax Corporation common shareholders $ 167,739 $ 370,185 $ 158,232 Less: net income attributable to participating securities (1) — — (3,740 ) $ 167,739 $ 370,185 $ 154,492 Weighted-average shares of Common stock outstanding - basic 124,101,033 121,143,790 99,198,570 Net effect of potentially dilutive securities - stock options and restricted stock units 768,616 1,522,502 1,167,885 Weighted-average shares of Common stock outstanding - diluted 124,869,649 122,666,292 100,366,455 Net income per share - diluted $ 1.34 $ 3.02 $ 1.54 (1) Net income per share - diluted for the period from January 13, 2012 to April 23, 2013 was calculated consistently with the two-class method in accordance with GAAP, as further discussed below. Subsequent to April 23, 2013 and prior to February 12, 2014, Net income per share - diluted was calculated consistently with the if-converted method in accordance with GAAP, as further discussed below. However, for the year ended December 31, 2013, the calculation under this method was anti-dilutive. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income before income taxes and Provision for (benefit from) income taxes consisted of the following: Year Ended December 31, 2015 2014 2013 (In thousands) Income (loss) before income taxes: Domestic operations $ (16,487 ) $ 53,153 $ (7,899 ) Foreign operations 253,389 305,095 310,694 $ 236,902 $ 358,248 $ 302,795 Provision for (benefit from) income taxes: Current: Federal $ 465 $ 798 $ (464 ) State 1,076 2,047 871 Foreign 70,900 74,618 83,299 72,441 77,463 83,706 Deferred: Domestic operations $ (1,231 ) $ (127,114 ) $ 11,603 Foreign operations (21,486 ) (12,374 ) (1,657 ) (22,717 ) (139,488 ) 9,946 $ 49,724 $ (62,025 ) $ 93,652 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The Company’s Provision for (benefit from) income taxes differs from the amount that would be computed by applying the U.S. federal statutory rate as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Taxes calculated at the U.S. federal statutory rate $ 82,940 $ 125,386 $ 105,978 State taxes 768 2,323 871 Effect of tax rates on international operations (36,364 ) (34,619 ) (42,972 ) Change in enacted international tax rates (4,415 ) (149 ) (5,217 ) Changes in valuation allowance and tax reserves 1,784 (156,071 ) 30,554 Other 5,011 1,105 4,438 Provision for (benefit from) income taxes $ 49,724 $ (62,025 ) $ 93,652 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes, net reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. During the year ended December 31, 2015 , adjustments were made retrospectively to provisional amounts recorded as of December 31, 2014 , due to the finalization of the valuation of specific tax items related to the acquisition consummated during the three months ended June 27, 2014 . The significant components of deferred tax assets and liabilities, in addition to the reconciliation of the beginning and ending amount of gross unrecognized tax benefits below, include the impact of these retrospective adjustments. Significant components of the deferred tax assets and liabilities are as follows: December 31, 2015 2014 (In thousands) Deferred tax assets: Post-retirement benefit obligation $ 75,045 $ 92,995 Expenses currently not deductible 109,283 116,247 Net operating loss carryforward 211,627 228,863 Tax credit carryforward 10,343 11,509 Depreciation and amortization 7,533 11,121 Other 25,379 22,285 Valuation allowance (161,030 ) (159,252 ) Deferred tax assets, net $ 278,180 $ 323,768 Deferred tax liabilities: Depreciation and amortization $ (317,464 ) $ (353,660 ) Post-retirement benefit obligation (13,581 ) (12,116 ) Inventory (17,122 ) (16,549 ) Other (174,367 ) (193,618 ) Total deferred tax liabilities $ (522,534 ) $ (575,943 ) Total deferred tax liabilities, net $ (244,354 ) $ (252,175 ) |
Summary of Income Tax Contingencies [Table Text Block] | The Company records a liability for unrecognized income tax benefits for the amount of benefit included in its previously filed income tax returns and in its financial results expected to be included in income tax returns to be filed for periods through the date of its Consolidated Financial Statements for income tax positions for which it is more likely than not that a tax position will not be sustained upon examination by the respective taxing authority. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (inclusive of associated interest and penalties): (In thousands) Balance, December 31, 2013 $ 71,595 Acquisitions 37,328 Addition for tax positions taken in prior periods 3,752 Addition for tax positions taken in the current period 894 Reduction for tax positions taken in prior periods (27,601 ) Other, including the impact of foreign currency translation (8,443 ) Balance, December 31, 2014 77,525 Addition for tax positions taken in prior periods 3,924 Addition for tax positions taken in the current period 924 Reduction for tax positions taken in prior periods (23,616 ) Other, including the impact of foreign currency translation (5,879 ) Balance, December 31, 2015 $ 52,878 |
Goodwill & Intangibles (Tables)
Goodwill & Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table summarizes the activity in Goodwill, by segment during the years ended December 31, 2015 and 2014 : Gas and Fluid Handling Fabrication Technology Total (In thousands) Balance, January 1, 2014 $ 1,532,201 $ 877,498 $ 2,409,699 Goodwill attributable to acquisitions (1) — 612,866 612,866 Impact of foreign currency translation and other (103,843 ) (45,699 ) (149,542 ) Balance, December 31, 2014 1,428,358 1,444,665 2,873,023 Goodwill attributable to acquisitions 85,216 — 85,216 Impact of foreign currency translation and other (87,308 ) (53,244 ) (140,552 ) Balance, December 31, 2015 $ 1,426,266 $ 1,391,421 $ 2,817,687 (1) During the year ended December 31, 2015 , the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Schedule Of Intangible Assets [Table Text Block] | The following table summarizes the Intangible assets, excluding Goodwill: December 31, 2015 2014 Gross Accumulated Gross Accumulated (In thousands) Trade names – indefinite life $ 395,319 $ — $ 410,600 $ — Acquired customer relationships 573,589 (117,573 ) 593,799 (85,171 ) Acquired technology 149,578 (37,012 ) 113,697 (27,681 ) Acquired backlog 2,575 (2,220 ) — — Other intangible assets 48,413 (16,957 ) 50,287 (11,948 ) $ 1,169,474 $ (173,762 ) $ 1,168,383 $ (124,800 ) |
Schedule Of Finite Lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense related to intangible assets was included in the Consolidated Statements of Income as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Selling, general and administrative expense $ 60,629 $ 67,052 $ 41,012 |
Property, Plant and Equipment34
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, Depreciable Life 2015 2014 (1) (In years) (In thousands) Land n/a $ 44,746 $ 52,539 Buildings and improvements 5-40 327,122 363,716 Machinery and equipment 3-15 546,052 524,723 Software 3-5 95,556 98,069 1,013,476 1,039,047 Accumulated depreciation (368,940 ) (311,612 ) Property, plant and equipment, net $ 644,536 $ 727,435 (1) During the year ended December 31, 2015, the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, net consisted of the following: December 31, 2015 2014 (In thousands) Raw materials $ 160,640 $ 164,115 Work in process 68,541 81,110 Finished goods 243,209 239,808 472,390 485,033 Less: customer progress payments (15,876 ) (7,728 ) Less: allowance for excess, slow-moving and obsolete inventory (36,128 ) (34,573 ) Inventories, net $ 420,386 $ 442,732 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt consisted of the following: December 31, 2015 2014 (In thousands) Term loans $ 713,175 $ 1,210,474 Trade receivables financing arrangement 75,800 80,000 Revolving credit facilities and other 628,572 246,336 Total Debt 1,417,547 1,536,810 Less: current portion (5,792 ) (9,855 ) Long-term debt $ 1,411,755 $ 1,526,955 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The contractual maturities of the Company’s debt as of December 31, 2015 are as follows (1) : (In thousands) 2016 $ 5,792 2017 4,536 2018 4,598 2019 2,405 2020 1,408,916 Total contractual maturities 1,426,247 Debt discount (2) (8,700 ) Total debt $ 1,417,547 (1) Represents scheduled payments required under the 2015 Deutsche Bank Credit Agreement through June 5, 2020, as well as the contractual maturities of other debt outstanding as of December 31, 2015 , and reflects management’s intention to repay scheduled maturities of the term loans outstanding under the 2015 Deutsche Bank Credit Agreement and the trade receivables financing arrangement (if not extended) with proceeds from the revolving credit facility. (2) Includes $1.2 million of deferred debt issuance costs pursuant to the adoption of ASU No. 2015-03. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents the changes in the balances of each component of Accumulated other comprehensive loss including reclassifications out of Accumulated other comprehensive loss for the years ended December 31, 2015 , 2014 and 2013 . All amounts are net of tax and noncontrolling interest. Accumulated Other Comprehensive Loss Components Net Unrecognized Pension And Other Post-Retirement Benefit Cost Foreign Currency Translation Adjustment Unrealized Gain (Loss) On Hedging Activities Total (In thousands) Balance at January 1, 2013 $ (247,332 ) $ 96,877 $ 3,861 $ (146,594 ) Acquisition of shares held by noncontrolling interest — (381 ) — (381 ) Other comprehensive income (loss) before reclassifications: Net actuarial gain 77,515 — — 77,515 Foreign currency translation adjustment (3,297 ) 24,349 39 21,091 Gain on long-term intra-entity foreign currency transactions — 2,176 — 2,176 Loss on net investment hedges — — (14,261 ) (14,261 ) Unrealized gain on cash flow hedges — — 3,832 3,832 Other comprehensive income (loss) before reclassifications 74,218 26,525 (10,390 ) 90,353 Amounts reclassified from Accumulated other comprehensive loss 10,022 — — 10,022 Net current period Other comprehensive income (loss) 84,240 26,525 (10,390 ) 100,375 Balance at December 31, 2013 $ (163,092 ) $ 123,021 $ (6,529 ) $ (46,600 ) Acquisition of shares held by noncontrolling interest — (942 ) — (942 ) Other comprehensive (loss) income before reclassifications: Net actuarial loss (89,379 ) — — (89,379 ) Foreign currency translation adjustment 4,742 (351,234 ) (32 ) (346,524 ) Gain on long-term intra-entity foreign currency transactions — 2,096 — 2,096 Gain on net investment hedges — — 39,374 39,374 Unrealized loss on cash flow hedges — — (8,932 ) (8,932 ) Other 1,934 — — 1,934 Other comprehensive (loss) income before reclassifications (82,703 ) (349,138 ) 30,410 (401,431 ) Amounts reclassified from Accumulated other comprehensive loss 5,282 — — 5,282 Net current period Other comprehensive (loss) income (77,421 ) (349,138 ) 30,410 (396,149 ) Balance at December 31, 2014 $ (240,513 ) $ (227,059 ) $ 23,881 $ (443,691 ) Other comprehensive income (loss) before reclassifications: Net actuarial gain 28,349 — — 28,349 Foreign currency translation adjustment 7,747 (301,011 ) (382 ) (293,646 ) Loss on long-term intra-entity foreign currency transactions — (550 ) — (550 ) Gain on net investment hedges — — 14,537 14,537 Unrealized loss on cash flow hedges — — (2,873 ) (2,873 ) Other 3,817 — — 3,817 Other comprehensive income (loss) before reclassifications 39,913 (301,561 ) 11,282 (250,366 ) Amounts reclassified from Accumulated other comprehensive loss 7,342 — — 7,342 Net current period Other comprehensive income (loss) 47,255 (301,561 ) 11,282 (243,024 ) Balance at December 31, 2015 $ (193,258 ) $ (528,620 ) $ 35,163 $ (686,715 ) |
Amounts reclassified from Accumulated other comprehensive loss [Table Text Block] | The effect on Net income of amounts reclassified out of each component of Accumulated other comprehensive loss for the years ended December 31, 2015 , 2014 and 2013 is as follows: Year Ended December 31, 2015 Amounts Reclassified From Accumulated Other Comprehensive Loss Tax Benefit Total (In thousands) Pension and other post-retirement benefit cost: Amortization of net loss (1) $ 10,953 $ (3,744 ) $ 7,209 Amortization of prior service cost (1) 248 (115 ) 133 $ 11,201 $ (3,859 ) $ 7,342 Year Ended December 31, 2014 Amounts Reclassified From Accumulated Other Comprehensive Loss Tax Benefit Total (In thousands) Pension and other post-retirement benefit cost: Amortization of net loss (1) $ 7,097 $ (2,063 ) $ 5,034 Amortization of prior service cost (1) 248 — 248 $ 7,345 $ (2,063 ) $ 5,282 Year Ended December 31, 2013 Amounts Reclassified From Accumulated Other Comprehensive Loss Tax Benefit Total (In thousands) Pension and other post-retirement benefit cost: Amortization of net loss (1) $ 10,489 $ (715 ) $ 9,774 Amortization of prior service cost (1) 248 — 248 $ 10,737 $ (715 ) $ 10,022 (1) Included in the computation of net periodic benefit cost. See Note 13 , “Defined Benefit Plans” for additional details. |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The Company’s Consolidated Statements of Income reflect the following amounts related to stock-based compensation: Year Ended December 31, 2015 2014 2013 (In thousands) Stock-based compensation expense $ 16,321 $ 17,580 $ 13,334 Deferred tax benefit 5,342 4,054 434 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Stock-based compensation expense for stock option awards is based upon the grant-date fair value using the Black-Scholes option pricing model. The Company recognizes compensation expense for stock option awards on a straight-line basis over the requisite service period of the entire award. The following table shows the weighted-average assumptions used to calculate the fair value of stock option awards using the Black-Scholes option pricing model, as well as the weighted-average fair value of options granted: Year Ended December 31, 2015 2014 2013 Expected period that options will be outstanding (in years) 5.02 4.87 4.90 Interest rate (based on U.S. Treasury yields at the time of grant) 1.62 % 1.62 % 1.06 % Volatility 28.75 % 34.67 % 43.22 % Dividend yield — — — Weighted-average fair value of options granted $ 11.87 $ 22.65 $ 18.07 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option activity is as follows: Number Weighted- Weighted- Aggregate (1) (In thousands) Outstanding at January 1, 2015 2,910,109 $ 40.19 Granted 2,135,169 41.63 Exercised (364,211 ) 16.62 Forfeited (381,156 ) 60.74 Expired (38,321 ) 41.74 Outstanding at December 31, 2015 4,261,590 $ 41.07 5.05 $ 1,916 Vested or expected to vest at December 31, 2015 4,196,996 $ 40.97 5.04 $ 1,916 Exercisable at December 31, 2015 1,701,182 $ 35.06 3.40 $ 1,916 (1) The aggregate intrinsic value is based upon the difference between the Company’s closing stock price at the date of the Consolidated Balance Sheet and the exercise price of the stock option for in-the-money stock options. The intrinsic value of outstanding stock options fluctuates based upon the trading value of the Company’s Common stock. |
Schedule of Nonvested Share Activity [Table Text Block] | The activity in the Company’s PRSUs and RSUs is as follows: PRSUs RSUs Number Weighted- Number Weighted- Nonvested at January 1, 2015 581,936 $ 38.67 168,911 $ 56.13 Granted 343,715 40.55 353,887 39.53 Vested (259,539 ) 25.64 (66,366 ) 42.69 Forfeited (143,101 ) 61.28 (42,911 ) 54.99 Nonvested at December 31, 2015 523,011 $ 40.19 413,521 $ 44.20 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities in the Consolidated Balance Sheets consisted of the following: December 31, 2015 2014 (1) (In thousands) Accrued payroll $ 99,383 $ 120,068 Advance payment from customers 45,590 58,049 Accrued taxes 51,834 52,599 Accrued asbestos-related liability 48,780 50,175 Warranty liability - current portion 36,128 47,966 Accrued restructuring liability - current portion 12,918 21,846 Accrued third-party commissions 10,275 11,026 Other 86,751 128,254 Accrued liabilities $ 391,659 $ 489,983 (1) During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Accrued Restructuring Liability The Company’s restructuring programs include a series of restructuring actions to reduce the structural costs of the Company. A summary of the activity in the Company’s restructuring liability included in Accrued liabilities and Other liabilities in the Consolidated Balance Sheets is as follows: Year Ended December 31, 2015 Balance at Beginning of Period Provisions Payments Foreign Currency Translation Balance at End of Period (3) (In thousands) Restructuring and other related charges: Gas and Fluid Handling: Termination benefits (1) $ 7,551 $ 19,927 $ (22,994 ) $ (505 ) $ 3,979 Facility closure costs (2) 1,445 9,031 (7,643 ) (176 ) 2,657 8,996 28,958 (30,637 ) (681 ) 6,636 Non-cash impairment 2,569 31,527 Fabrication Technology: Termination benefits (1) 11,155 15,507 (20,196 ) (435 ) 6,031 Facility closure costs (2) 1,937 5,321 (6,647 ) (185 ) 426 13,092 20,828 (26,843 ) (620 ) 6,457 Non-cash impairment 8,822 29,650 Corporate and Other: Facility closure costs (2) 922 — (254 ) (43 ) 625 922 — (254 ) (43 ) 625 $ 23,010 49,786 $ (57,734 ) $ (1,344 ) $ 13,718 Non-cash impairment 11,391 $ 61,177 (1) Includes severance and other termination benefits, including outplacement services. The Company recognizes the cost of involuntary termination benefits at the communication date or ratably over any remaining expected future service period. Voluntary termination benefits are recognized as a liability and an expense when employees accept the offer and the amount can be reasonably estimated. (2) Includes the cost of relocating associates, relocating equipment and lease termination expense in connection with the closure of facilities. (3) As of December 31, 2015 , $12.9 million and $0.8 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. Year Ended December 31, 2014 Balance at Beginning of Period Provisions Payments Foreign Currency Translation Balance at End of Period (3) (In thousands) Restructuring and other related charges: Gas and Fluid Handling: Termination benefits (1) $ 3,638 $ 18,179 $ (13,887 ) $ (379 ) $ 7,551 Facility closure costs (2) 756 5,491 (4,714 ) (88 ) 1,445 4,394 23,670 (18,601 ) (467 ) 8,996 Non-cash impairment 2,863 26,533 Fabrication Technology: Termination benefits (1) 7,033 26,790 (22,227 ) (441 ) 11,155 Facility closure costs (2) 1,429 3,018 (2,355 ) (155 ) 1,937 8,462 29,808 (24,582 ) (596 ) 13,092 Non-cash impairment 1,780 31,588 Corporate and Other: Facility closure costs (2) 1,259 — (275 ) (62 ) 922 1,259 — (275 ) (62 ) 922 $ 14,115 53,478 $ (43,458 ) $ (1,125 ) $ 23,010 Non-cash impairment 4,643 $ 58,121 (1) Includes severance and other termination benefits, including outplacement services. The Company recognizes the cost of involuntary termination benefits at the communication date or ratably over any remaining expected future service period. Voluntary termination benefits are recognized as a liability and an expense when employees accept the offer and the amount can be reasonably estimated. (2) Includes the cost of relocating associates, relocating equipment and lease termination expense in connection with the closure of facilities. (3) As of December 31, 2014 , $21.8 million and $1.2 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | The following table summarizes the total changes in the Company’s pension and accrued post-retirement benefits and plan assets and includes a statement of the plans’ funded status: Pension Benefits Other Post-Retirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2015 2014 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,765,493 $ 1,640,418 $ 35,085 $ 28,823 Acquisitions 31,914 48,938 4,983 1,011 Service cost 4,612 4,883 33 155 Interest cost 54,807 70,469 1,170 1,304 Actuarial (gain) loss (93,878 ) 211,170 (6,410 ) 5,553 Foreign exchange effect (77,854 ) (97,525 ) — — Benefits paid (105,589 ) (111,971 ) (1,942 ) (1,761 ) Settlements (29,811 ) (1,387 ) — — Other 949 498 174 — Projected benefit obligation, end of year $ 1,550,643 $ 1,765,493 $ 33,093 $ 35,085 Accumulated benefit obligation, end of year $ 1,530,327 $ 1,739,642 $ 33,093 $ 35,085 Change in plan assets: Fair value of plan assets, beginning of year $ 1,469,103 $ 1,367,315 $ — $ — Acquisitions 28,591 42,051 — — Actual return on plan assets (9,390 ) 174,065 — — Employer contribution (1) 45,594 69,714 1,942 1,761 Foreign exchange effect (63,060 ) (70,851 ) — — Benefits paid (105,589 ) (111,971 ) (1,942 ) (1,761 ) Settlements (28,399 ) (1,387 ) — — Other 555 167 — — Fair value of plan assets, end of year $ 1,337,405 $ 1,469,103 $ — $ — Funded status, end of year $ (213,238 ) $ (296,390 ) $ (33,093 ) $ (35,085 ) Amounts recognized on the Consolidated Balance Sheet at December 31: Non-current assets $ 73,914 $ 58,997 $ — $ — Current liabilities (4,741 ) (5,328 ) (2,915 ) (2,749 ) Non-current liabilities (282,411 ) (350,059 ) (30,178 ) (32,336 ) Total $ (213,238 ) $ (296,390 ) $ (33,093 ) $ (35,085 ) (1) Contributions during the years ended December 31, 2015 and 2014 include contributions of 66,000 and 183,000 shares of Colfax Common stock, respectively, with values on the contribution dates of approximately $3.4 million and $11.9 million , respectively. The accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 and $1.3 billion and $1.0 billion , respectively, as of December 31, 2014 . The projected benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 and $1.4 billion and $1.1 billion , respectively, as of December 31, 2014 . The following table summarizes the changes in the Company’s foreign pension benefit obligation, which is determined based upon an employee’s expected date of separation, and plan assets, included in the table above, and includes a statement of the plans’ funded status: Foreign Pension Benefits Year Ended December 31, 2015 2014 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,265,143 $ 1,205,554 Acquisitions — 21,578 Service cost 4,506 4,883 Interest cost 37,253 51,658 Actuarial (gain) loss (64,801 ) 144,232 Foreign exchange effect (77,854 ) (97,525 ) Benefits paid (60,162 ) (64,347 ) Settlements (29,811 ) (1,387 ) Other 949 497 Projected benefit obligation, end of year $ 1,075,223 $ 1,265,143 Accumulated benefit obligation, end of year $ 1,054,907 $ 1,239,292 Change in plan assets: Fair value of plan assets, beginning of year $ 1,079,497 $ 999,197 Acquisitions — 20,873 Actual return on plan assets 11,159 139,460 Employer contribution 41,659 56,384 Foreign exchange effect (63,060 ) (70,851 ) Benefits paid (60,162 ) (64,347 ) Settlements (28,399 ) (1,387 ) Other 555 168 Fair value of plan assets, end of year $ 981,249 $ 1,079,497 Funded status, end of year $ (93,974 ) $ (185,646 ) |
Schedule of Expected Benefit Payments [Table Text Block] | Expected contributions to the Company’s pension and other post-employment benefit plans for the year ending December 31, 2016 , related to plans as of December 31, 2015 , are $34.9 million . The following benefit payments are expected to be paid during each respective fiscal year: Pension Benefits Other Post-Retirement Benefits All Plans Foreign Plans (In thousands) 2016 $ 88,062 $ 53,907 $ 2,915 2017 88,781 54,821 2,823 2018 89,611 55,994 2,717 2019 88,702 55,459 2,490 2020 89,083 56,074 2,268 2021- 2025 445,740 289,491 9,076 |
Schedule of Allocation of Plan Assets [Table Text Block] | The following are the actual and target allocation percentages for the Company’s pension plan assets: Actual Asset Allocation 2015 2014 Allocation U.S. Plans: Equity securities: U.S. 42 % 43 % 30% - 45% International 16 % 15 % 10% - 20% Fixed income 41 % 41 % 30% - 50% Other 1 % 1 % 0% - 20% Cash and cash equivalents — % — % 0% - 5% Foreign Plans: Equity securities 32 % 30 % 10% - 50% Fixed income securities 64 % 66 % 50% - 90% Cash and cash equivalents 1 % 1 % 0% - 25% Other 3 % 3 % 0% - 5% A summary of the Company’s pension plan assets for each fair value hierarchy level for the periods presented follows (see Note 14, “Financial Instruments and Fair Value Measurements” for further description of the levels within the fair value hierarchy): December 31, 2015 Measured at Net Asset Value (1) Level Level Level (In thousands) U.S. Plans: Equity securities: U.S. large cap $ 100,226 $ — $ — $ — $ 100,226 U.S. small/mid cap 40,899 7,874 — — 48,773 International 58,642 — — — 58,642 Fixed income mutual funds: U.S. government and corporate 143,787 — — — 143,787 Other (2) 2,917 1,811 — — 4,728 Foreign Plans: Cash and cash equivalents — 12,832 — — 12,832 Equity securities 130,078 150,376 32,398 — 312,852 Non-U.S. government and corporate bonds — 282,504 343,870 — 626,374 Other (2) — 1,964 27,227 — 29,191 $ 476,549 $ 457,361 $ 403,495 $ — $ 1,337,405 (1) In accordance with ASU No. 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent)practical expedient (the “NAV”) have not been classified in the fair value hierarchy. These investments, consisting of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund, that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term. See further discussion in Note 3, “Recently Issued Accounting Pronouncements”. (2) Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. December 31, 2014 Measured at Net Asset Value (1) Level Level Level (In thousands) U.S. Plans: Equity securities: U.S. large cap $ 100,263 $ 3,901 $ — $ — $ 104,164 U.S. small/mid cap 43,670 19,540 — — 63,210 International 56,252 2,461 — — 58,713 Fixed income mutual funds: U.S. government and corporate 147,364 10,508 — — 157,872 Structured loan fund 1,226 — — — 1,226 Other (2) 2,798 1,623 — — 4,421 Foreign Plans: Cash and cash equivalents — 12,951 — — 12,951 Equity securities 125,273 161,524 39,310 — 326,107 Non-U.S. government and corporate bonds — 308,705 399,285 — 707,990 Other (2) — 2,040 30,409 — 32,449 $ 476,846 $ 523,253 $ 469,004 $ — $ 1,469,103 (1) In accordance with ASU No. 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent)practical expedient (the “NAV”) have not been classified in the fair value hierarchy. These investments, consisting primarily of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund, that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term. See further discussion in Note 3, “Recently Issued Accounting Pronouncements”. (2) Represents diversified portfolio funds and reinsurance contracts maintained for certain plans. |
Schedule of Net Benefit Costs [Table Text Block] | The following table sets forth the components of net periodic benefit cost and Other comprehensive (loss) income of the Company’s defined benefit pension plans and other post-retirement employee benefit plans: Pension Benefits Other Post-Retirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 4,612 $ 4,883 $ 3,985 $ 33 $ 155 $ 179 Interest cost 54,807 70,469 63,132 1,170 1,304 1,090 Amortization 11,515 6,608 9,672 259 468 609 Settlement (gain) loss (582 ) 190 (592 ) — — — Other 525 328 (154 ) 174 — 125 Expected return on plan assets (58,107 ) (69,055 ) (58,511 ) — — — Net periodic benefit cost $ 12,770 $ 13,423 $ 17,532 $ 1,636 $ 1,927 $ 2,003 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Current year net actuarial (gain) loss $ (33,558 ) $ 96,005 $ (69,463 ) $ (6,410 ) $ 5,553 $ (6,072 ) Less amounts included in net periodic benefit cost: Amortization of net loss (11,515 ) (6,608 ) (9,672 ) (11 ) (220 ) (361 ) Settlement loss (952 ) (190 ) (32 ) — — — Amortization of prior service cost — — — (248 ) (248 ) (248 ) Total recognized in Other comprehensive (loss) income $ (46,025 ) $ 89,207 $ (79,167 ) $ (6,669 ) $ 5,085 $ (6,681 ) The following table sets forth the components of net periodic benefit cost and Other comprehensive (loss) income of the foreign defined benefit pension plans, included in the table above: Foreign Pension Benefits Year Ended December 31, 2015 2014 2013 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 4,506 $ 4,883 $ 3,985 Interest cost 37,253 51,658 46,775 Amortization 4,272 1,669 2,305 Settlement (gain) loss (582 ) 190 (592 ) Other 525 328 (154 ) Expected return on plan assets (32,921 ) (44,287 ) (34,541 ) Net periodic benefit cost $ 13,053 $ 14,441 $ 17,778 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income: Current year net actuarial (gain) loss $ (50,216 ) $ 38,904 $ (16,121 ) Less amounts included in net periodic benefit cost: Amortization of net loss (4,272 ) (1,669 ) (2,305 ) Settlement loss (952 ) (190 ) (32 ) Amortization of prior service cost — — — Total recognized in Other comprehensive (loss) income $ (55,440 ) $ 37,045 $ (18,458 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | The components of net unrecognized pension and other post-retirement benefit cost included in Accumulated other comprehensive loss in the Consolidated Balance Sheets that have not been recognized as a component of net periodic benefit cost are as follows: Pension Benefits Other Post-Retirement December 31, December 31, 2015 2014 2015 2014 (In thousands) Net actuarial loss (gain) $ 239,225 $ 285,250 $ (1,845 ) $ 4,576 Prior service cost — — 559 807 Total $ 239,225 $ 285,250 $ (1,286 ) $ 5,383 The components of net unrecognized pension and other post-retirement benefit cost included in Accumulated other comprehensive loss in the Consolidated Balance Sheet that are expected to be recognized as a component of net periodic benefit cost during the year ending December 31, 2016 are as follows: Pension Benefits Other Post- (In thousands) Net actuarial loss $ 8,336 $ 8 Prior service cost — 248 Total $ 8,336 $ 256 |
Schedule of Assumptions Used [Table Text Block] | The key economic assumptions used in the measurement of the Company’s pension and other post-retirement benefit obligations are as follows: Pension Benefits Other Post-Retirement December 31, December 31, 2015 2014 2015 2014 Weighted-average discount rate: All plans 3.6 % 3.3 % 4.0 % 3.6 % Foreign plans 3.5 % 3.3 % — — Weighted-average rate of increase in compensation levels for active foreign plans 1.5 % 1.6 % — — The key economic assumptions used in the computation of net periodic benefit cost are as follows: Pension Benefits Other Post-Retirement Benefits Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 Weighted-average discount rate: All plans 3.3 % 4.4 % 4.0 % 3.6 % 4.4 % 3.5 % Foreign plans 3.3 % 4.4 % 4.2 % — — — Weighted-average expected return on plan assets: All plans 4.7 % 5.4 % 5.1 % — — — Foreign plans 3.9 % 4.9 % 4.3 % — — — Weighted-average rate of increase in compensation levels for active foreign plans 1.6 % 1.7 % 1.5 % — — — |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point change in assumed health care cost trend rates would have the following pre-tax effects: 1% Increase 1% Decrease (in thousands) Effect on total service and interest cost components for the year ended December 31, 2015 $ 118 $ (95 ) Effect on post-retirement benefit obligation at December 31, 2015 3,035 (2,471 ) |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | A summary of the Company’s assets and liabilities that are measured at fair value on a recurring basis for each fair value hierarchy level for the periods presented is as follows: December 31, 2015 Level Level Level Total (In thousands) Assets: Cash equivalents $ 22,516 $ — $ — $ 22,516 Foreign currency contracts related to sales - designated as hedges — 988 — 988 Foreign currency contracts related to sales - not designated as hedges — 664 — 664 Foreign currency contracts related to purchases - designated as hedges — 1,554 — 1,554 Foreign currency contracts related to purchases - not designated as hedges — 338 — 338 Deferred compensation plans — 4,000 — 4,000 $ 22,516 $ 7,544 $ — $ 30,060 Liabilities: Foreign currency contracts related to sales - designated as hedges $ — $ 6,368 $ — $ 6,368 Foreign currency contracts related to sales - not designated as hedges — 969 — 969 Foreign currency contracts related to purchases - designated as hedges — 322 — 322 Foreign currency contracts related to purchases - not designated as hedges — 128 — 128 Deferred compensation plans — 4,000 — 4,000 $ — $ 11,787 $ — $ 11,787 December 31, 2014 Level Level Level Total (In thousands) Assets: Cash equivalents $ 23,143 $ — $ — $ 23,143 Foreign currency contracts related to sales - designated as hedges — 4,524 — 4,524 Foreign currency contracts related to sales - not designated as hedges — 1,007 — 1,007 Foreign currency contracts related to purchases - designated as hedges — 1,980 — 1,980 Foreign currency contracts related to purchases - not designated as hedges — 478 — 478 Deferred compensation plans — 2,941 — 2,941 $ 23,143 $ 10,930 $ — $ 34,073 Liabilities: Foreign currency contracts related to sales - designated as hedges $ — $ 7,163 $ — $ 7,163 Foreign currency contracts related to sales - not designated as hedges — 2,793 — 2,793 Foreign currency contracts related to purchases - designated as hedges — 695 — 695 Foreign currency contracts related to purchases - not designated as hedges — 661 — 661 Deferred compensation plans — 2,941 — 2,941 $ — $ 14,253 $ — $ 14,253 |
Schedule of Foreign Exchange Contracts, Notional Values | As of December 31, 2015 and 2014 , the Company had foreign currency contracts with the following notional values: December 31, 2015 2014 (In thousands) Foreign currency contracts sold - not designated as hedges $ 119,653 $ 124,838 Foreign currency contracts sold - designated as hedges 206,366 250,743 Foreign currency contracts purchased - not designated as hedges 41,480 36,080 Foreign currency contracts purchased - designated as hedges 62,794 53,944 Total foreign currency derivatives $ 430,293 $ 465,605 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The Company recognized the following in its Consolidated Financial Statements related to its derivative instruments: Year Ended December 31, 2015 2014 2013 (In thousands) Contracts Designated as Hedges: Foreign Currency Contracts - related to customer sales contracts: Unrealized (loss) gain $ (2,350 ) $ (4,706 ) $ 3,801 Realized (loss) gain (512 ) (5,776 ) 654 Foreign Currency Contracts - related to supplier purchase contracts: Unrealized (loss) gain (1,173 ) (1,719 ) 397 Realized gain (loss) 756 3,386 (298 ) Unrealized gain (loss) on net investment hedges (1) 14,537 39,374 (14,261 ) Contracts Not Designated in a Hedge Relationship: Foreign Currency Contracts - related to customer sales contracts: Unrealized gain (loss) 2,260 (1,389 ) (762 ) Realized (loss) gain (5,644 ) (4,342 ) 1,112 Foreign Currency Contracts - related to supplier purchases contracts: Unrealized gain (loss) 393 (1,304 ) 1,687 Realized gain 1,165 1,355 1,359 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Loss Contingencies By Claims Quantities [Table Text Block] | Claims activity since December 31 related to asbestos claims is as follows (1) : Year Ended December 31, 2015 2014 2013 (Number of claims) Claims unresolved, beginning of period 21,681 22,393 23,523 Claims filed (2) 4,821 4,850 6,299 Claims resolved (3) (5,919 ) (5,562 ) (7,429 ) Claims unresolved, end of period 20,583 21,681 22,393 (In dollars) Average cost of resolved claims (4) $ 6,056 $ 7,513 $ 5,979 (1) Excludes claims filed by one legal firm that have been “administratively dismissed.” (2) Claims filed include all asbestos claims for which notification has been received or a file has been opened. (3) Claims resolved include all asbestos claims that have been settled, dismissed or that are in the process of being settled or dismissed based upon agreements or understandings in place with counsel for the claimants. (4) Excludes claims settled in Mississippi for which the majority of claims have historically been resolved for no payment and insurance recoveries. |
Schedule Of Asbestos Related Litigation [Table Text Block] | The Company’s Consolidated Balance Sheets included the following amounts related to asbestos-related litigation: December 31, 2015 2014 (In thousands) Current asbestos insurance asset (1) $ 28,872 $ 34,540 Long-term asbestos insurance asset (2) 284,095 282,679 Long-term asbestos insurance receivable (2) 96,007 82,340 Accrued asbestos liability (3) 48,780 50,175 Long-term asbestos liability (4) 350,394 346,099 (1) Included in Other current assets in the Consolidated Balance Sheets. (2) Included in Other assets in the Consolidated Balance Sheets. (3) Represents current accruals for probable and reasonably estimable asbestos-related liability cost that the Company believes the subsidiaries will pay through the next 15 years, overpayments by certain insurers and unpaid legal costs related to defending themselves against asbestos-related liability claims and legal action against the Company’s insurers, which is included in Accrued liabilities in the Consolidated Balance Sheets. (4) Included in Other liabilities in the Consolidated Balance Sheets. |
Operating Leases of Lessee Disclosure [Table Text Block] | The Company’s minimum obligations under non-cancelable operating leases are as follows: December 31, 2015 (In thousands) 2016 $ 32,121 2017 19,798 2018 15,624 2019 14,064 2020 12,390 Thereafter 47,333 Total $ 141,330 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s segment results were as follows: Year Ended December 31, 2015 2014 2013 (In thousands) Net sales: Gas and fluid handling $ 1,981,816 $ 2,329,598 $ 2,104,048 Fabrication technology 1,985,237 2,294,878 2,103,161 Total Net sales $ 3,967,053 $ 4,624,476 $ 4,207,209 Segment operating income (loss) (1) : Gas and fluid handling $ 194,469 $ 254,240 $ 270,708 Fabrication technology 198,337 265,813 219,634 Corporate and other (46,984 ) (52,379 ) (48,448 ) Total segment operating income $ 345,822 $ 467,674 $ 441,894 Depreciation, amortization and impairment charges: Gas and fluid handling $ 68,457 $ 96,763 $ 62,792 Fabrication technology 84,913 76,406 55,339 Corporate and other 1,172 1,555 1,127 Total depreciation, amortization and impairment charges $ 154,542 $ 174,724 $ 119,258 Capital expenditures: Gas and fluid handling $ 34,303 $ 32,558 $ 37,995 Fabrication technology 35,261 47,955 33,437 Corporate and other 313 3,945 50 Total capital expenditures $ 69,877 $ 84,458 $ 71,482 (1) The following is a reconciliation of Income before income taxes to segment operating income: Year Ended December 31, 2015 2014 2013 Income before income taxes $ 236,902 $ 358,248 $ 302,795 Interest expense 47,743 51,305 103,597 Restructuring and other related charges 61,177 58,121 35,502 Segment operating income $ 345,822 $ 467,674 $ 441,894 December 31, 2015 2014 (In thousands) Investments in Equity Method Investees: Gas and fluid handling $ 3,805 $ 7,085 Fabrication technology 42,106 45,411 $ 45,911 $ 52,496 Total Assets (1) : Gas and fluid handling $ 3,482,471 $ 3,648,860 Fabrication technology 3,157,078 3,470,426 Corporate and other 93,370 92,231 Total Assets $ 6,732,919 $ 7,211,517 (1) During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-03 and ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. |
Revenue from External Customers by Products and Services [Table Text Block] | Year Ended December 31, 2015 2014 2013 (In thousands) Net Sales by Major Product: Gas handling $ 1,449,115 $ 1,676,180 $ 1,440,731 Fluid handling 532,701 653,418 663,317 Welding and cutting 1,985,237 2,294,878 2,103,161 Total Net sales $ 3,967,053 $ 4,624,476 $ 4,207,209 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Net Sales by Origin (1) : United States $ 1,124,883 $ 1,097,864 $ 836,636 Foreign locations 2,842,170 3,526,612 3,370,573 Total Net sales $ 3,967,053 $ 4,624,476 $ 4,207,209 (1) The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. December 31, 2015 2014 (2) (In thousands) Property, Plant and Equipment, Net (1) : United States $ 179,194 $ 177,957 Czech Republic 75,540 79,430 China 63,784 76,959 Other Foreign Locations 326,018 393,089 Property, plant and equipment, net $ 644,536 $ 727,435 (1) As the Company does not allocate all long-lived assets, specifically intangible assets, to each individual country, evaluation of long-lived assets in total is impracticable. (2) During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Selected Quarterly Data - (Un43
Selected Quarterly Data - (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Provided below is selected unaudited quarterly financial data for the years ended December 31, 2015 and 2014 . Quarter Ended March 27, 2015 June 26, 2015 September 25, 2015 December 31, (3) (In thousands, except per share data) Net sales $ 911,070 $ 1,025,375 $ 969,144 $ 1,061,464 Gross profit 294,438 328,037 295,874 333,425 Net income 56,275 58,829 23,545 48,529 Net income attributable to Colfax Corporation common shareholders 52,056 53,127 18,359 44,197 Net income per share – basic $ 0.42 $ 0.43 $ 0.15 $ 0.36 Net income per share – diluted $ 0.42 $ 0.42 $ 0.15 $ 0.36 Quarter Ended March 28, (1) June 27, (2) September 26, December 31, (3) (In thousands, except per share data) Net sales $ 1,054,331 $ 1,199,336 $ 1,164,453 $ 1,206,356 Gross profit 325,632 388,171 373,195 391,847 Net income 54,837 198,344 81,303 85,789 Net income attributable to Colfax Corporation common shareholders 24,877 191,785 73,389 80,134 Net income per share – basic $ 0.22 $ 1.55 $ 0.59 $ 0.65 Net income per share – diluted $ 0.22 $ 1.53 $ 0.59 $ 0.64 (1) On February 12, 2014 the Company entered into a Conversion Agreement with the BDT Investor. As consideration for the BDT Investor’s agreement to exercise its optional conversion right, the Company paid approximately $23.4 million to the BDT Investor, of which $19.6 million represents the Preferred stock conversion inducement payment. See Note 11, “Equity” for additional information regarding the Preferred stock conversion inducement payment. (2) Net income and Net income per share for the three months ended June 27, 2014 includes the benefit of deferred tax assets as a result of the effect of the Victor Acquisition on expected future income. This reassessment resulted in a decrease in the Company’s valuation allowance against U.S. deferred tax assets. The reduction in the valuation allowance created a non-cash income tax benefit for the three months ended June 27, 2014 of $113.1 million . (3) Net income and Net income per share for the three months ended December 31, 2015 and 2014 , was favorably impacted by the enactment of the U.S. tax extenders packages related to the exemption from taxation of certain foreign income in the United States. |
Summary of Significant Accoun44
Summary of Significant Accounting Policies Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Warranty Costs [Abstract] | ||
Warranty liability, beginning of period | $ 51,135 | $ 65,512 |
Accrued warranty expense | 21,092 | 23,019 |
Changes in estimates related to pre-existing warranties | (1,820) | (9,966) |
Cost of warranty service work performed | (29,342) | (27,389) |
Acquisitions | 321 | 4,488 |
Foreign exchange translation effect | (3,979) | (4,529) |
Warranty liability, end of period | $ 37,407 | $ 51,135 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies Accounting Policies (Details Textual) $ in Thousands, € in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Revenues in excess of billings on long-term contracts | $ 190,700 | $ 149,500 | |||
Billings in excess of revenues on long-term contracts | 175,300 | 146,300 | |||
Increase in Allowance for Doubtful Accounts related to specific South American customers | 9,400 | ||||
Finite-lived intangible assets, estimated useful lives, accelerated basis | seven to 30 years | ||||
Finite-Lived Intangible Assets, Estimated Useful Lives | two to 20 years | ||||
Non-cash impairment provisions | $ 11,391 | $ 4,643 | |||
Devaluation Percentage Of Bolivar Fuerte | 87.00% | 32.00% | |||
Loss Recognized in Income Due to Inflationary Accounting | $ (6,300) | $ (2,900) | |||
Percentage of Assets of Venezuelan Subsidiary | less than 1% | less than 1% | |||
Percentage of Sales of Venezuelan Subsidiary | less than 1% | less than 1% | |||
Net Monetary Assets of Venezuelan Subsidiary | $ 700 | 100 | |||
Deferred Finance Costs, Net | 9,900 | 8,100 | |||
Deferred issuance costs, accumulated amortization | 8,600 | 13,400 | |||
Payments of debt issuance costs | $ 3,400 | 300 | 7,100 | ||
Asset Impairments Related to Facility Closures [Member] | |||||
Fair Value of Long-Lived Assets Impaired During the Year | 15,100 | 4,900 | 21,100 | ||
Non-cash impairment provisions | 9,300 | 4,600 | 1,900 | ||
Db term debt [Domain] | |||||
Notional Amount of Nonderivative Instruments Designated as Net Investment Hedges | € | € 263.5 | ||||
Interest expense [Member] | |||||
Foreign currency transaction (loss) gain | (3,900) | (5,100) | (4,100) | ||
Selling, general and administrative expense [Member] | |||||
Research and development costs | 41,500 | 43,000 | 27,400 | ||
Advertising costs | 14,500 | 18,200 | 17,000 | ||
Foreign currency transaction (loss) gain | 2,100 | (5,500) | (5,200) | ||
Fabrication Technology [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1,500 | ||||
Fair Value of Indefinite-Lived Trade Names Impaired During the Year | 2,800 | ||||
Non-cash impairment provisions | 8,822 | 1,780 | |||
Gas and Fluid Handling [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 2,900 | $ 200 | |||
Impairment of Intangible Assets, Finite-lived | 1,700 | 10,500 | |||
Fair Value of Finite-Lived Intangible Assets Impaired During the Year | 3,300 | 800 | |||
Non-cash impairment provisions | $ 2,569 | 2,863 | |||
Assets Held under Capital Leases [Member] | |||||
Property, Plant and Equipment, Estimated Useful Lives | three to 15 years | ||||
Other Assets [Member] | |||||
Deferred Finance Costs, Net | 7,500 | 6,900 | |||
Long-term Debt, Type [Domain] | |||||
Deferred Finance Costs, Net | $ 2,400 | $ 1,200 |
Recently Issued Accounting Pr46
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Finance Costs, Net | $ 8,100 | $ 9,900 | |
Other current assets | 253,744 | 296,948 | |
Accrued liabilities | 391,659 | 489,983 | [1] |
Presented as a Reduction to Long-term Debt | |||
Deferred Finance Costs, Net | $ 1,200 | 2,400 | |
Effect on financial statements for application of ASU 2015-17 [Member] | |||
Other current assets | (26,200) | ||
Accrued liabilities | (6,200) | ||
Other Liabilities, Current | (18,600) | ||
Other Assets, Miscellaneous, Noncurrent | $ 1,400 | ||
[1] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. |
Acquisitions Purchase Price All
Acquisitions Purchase Price Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Business Combinations [Abstract] | ||||
Business Combination, Acquired Receivables, Fair Value | $ 15,680 | $ 76,678 | $ 74,387 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 20,898 | 107,785 | 49,871 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 20,653 | 56,988 | 92,247 | |
Goodwill, Acquired During Period | 85,216 | 612,866 | [1] | 284,294 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 85,113 | 389,700 | 104,272 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (9,909) | (34,271) | (70,122) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 | 0 | (10,942) | |
Business Acquisition Purchase Price Allocation Other Assets and Liabilities, Net | (21,644) | (260,946) | (99,205) | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 196,007 | $ 948,800 | $ 424,802 | |
[1] | During the year ended December 31, 2015, the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2014 | May. 21, 2014 | Nov. 25, 2013 | Jul. 09, 2013 | |
Business Acquisitions [Line Items] | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 0 | $ 0 | $ 13,784 | ||||
Business Combination, Acquisition Related Costs | 2,700 | 2,700 | 4,300 | ||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 47,900 | $ 347,300 | $ 59,900 | ||||
Simsmart Technologies [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Oct. 5, 2015 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 15,300 | ||||||
Roots Blowers and Compressors [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Jun. 30, 2015 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 180,700 | ||||||
Howden Thomassen Middle East FCZO [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | May 21, 2014 | ||||||
Business Combination, Equity Interest in Acquiree, Percentage Prior to additional Acquisition | 90.00% | ||||||
Percentage of Ownership Interest in Subsidiary by Parent After additional Acquisition | 100.00% | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 800 | ||||||
Flakt Woods GII [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Nov. 29, 2013 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 246,000 | ||||||
Sicelub [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Nov. 25, 2013 | ||||||
Business Combination, Equity Interest in Acquiree, Percentage Prior to additional Acquisition | 44.00% | ||||||
Percentage of Ownership Interest in Subsidiary by Parent After additional Acquisition | 100.00% | ||||||
Ownership Interest of Subsidiary Before Additional Acquisition | $ 7,400 | ||||||
Mandatorily Redeemable Preferred Stock, Fair Value at Acquisition Date | $ 31,700 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 13,800 | ||||||
Unrealized Gain On Change in expected settlement of mandatorily redeemable preferred stock | 3,100 | ||||||
ČKD Kompresory [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Nov. 1, 2013 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 69,400 | ||||||
TLT-Babcock and Alphair [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Sep. 30, 2013 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 55,700 | ||||||
Clarus Fluid Intelligence [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Jul. 9, 2013 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 13,200 | ||||||
Business Combination, Contingent Consideration, Liability | $ 2,500 | ||||||
Unrealized Gain Loss Of Contingent Consideration Liability | $ 2,900 | ||||||
ESAB-SVEL [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Jul. 1, 2014 | ||||||
Business Combination, Equity Interest in Acquiree, Percentage Prior to additional Acquisition | 51.00% | ||||||
Percentage of Ownership Interest in Subsidiary by Parent After additional Acquisition | 100.00% | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 9,500 | ||||||
Victor Technologies Holdings, Inc. [Member] | |||||||
Business Acquisitions [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Apr. 14, 2014 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 948,800 | ||||||
Goodwill, Purchase Accounting Adjustments | $ 100 | ||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 35,900 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | [1] | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | [1] | Sep. 26, 2014 | Jun. 27, 2014 | [2] | Mar. 28, 2014 | [3] | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Earnings Per Share [Abstract] | ||||||||||||||||
Net income available to Colfax Corporation common shareholders | $ 44,197 | $ 18,359 | $ 53,127 | $ 52,056 | $ 80,134 | $ 73,389 | $ 191,785 | $ 24,877 | $ 167,739 | $ 370,185 | $ 158,232 | |||||
Less: net income attributable to participating securities | [4] | 0 | 0 | (3,740) | ||||||||||||
Net income - basic | $ 167,739 | $ 370,185 | $ 154,492 | |||||||||||||
Weighted-average shares of Common stock outstanding - basic | 124,101,033 | 121,143,790 | 99,198,570 | |||||||||||||
Net income per share- basic | $ 0.36 | $ 0.15 | $ 0.43 | $ 0.42 | $ 0.65 | $ 0.59 | $ 1.55 | $ 0.22 | $ 1.35 | $ 3.06 | $ 1.56 | |||||
Less: net income attributable to participating securities | [4] | $ 0 | $ 0 | $ (3,740) | ||||||||||||
Net income - diluted | $ 167,739 | $ 370,185 | $ 154,492 | |||||||||||||
Net effect of potentially dilutive securities - stock options and restricted stock units | 768,616 | 1,522,502 | 1,167,885 | |||||||||||||
Weighted-average shares of Common stock outstanding - diluted | 124,869,649 | 122,666,292 | 100,366,455 | |||||||||||||
Net income per share- diluted | $ 0.36 | $ 0.15 | $ 0.42 | $ 0.42 | $ 0.64 | $ 0.59 | $ 1.53 | $ 0.22 | $ 1.34 | $ 3.02 | $ 1.54 | |||||
[1] | Net income and Net income per share for the three months ended December 31, 2015 and 2014, was favorably impacted by the enactment of the U.S. tax extenders packages related to the exemption from taxation of certain foreign income in the United States. | |||||||||||||||
[2] | Net income and Net income per share for the three months ended June 27, 2014 includes the benefit of deferred tax assets as a result of the effect of the Victor Acquisition on expected future income. This reassessment resulted in a decrease in the Company’s valuation allowance against U.S. deferred tax assets. The reduction in the valuation allowance created a non-cash income tax benefit for the three months ended June 27, 2014 of $113.1 million. | |||||||||||||||
[3] | On February 12, 2014 the Company entered into a Conversion Agreement with the BDT Investor. As consideration for the BDT Investor’s agreement to exercise its optional conversion right, the Company paid approximately $23.4 million to the BDT Investor, of which $19.6 million represents the Preferred stock conversion inducement payment. See Note 11, “Equity” for additional information regarding the Preferred stock conversion inducement payment. | |||||||||||||||
[4] | Net income per share - diluted for the period from January 13, 2012 to April 23, 2013 was calculated consistently with the two-class method in accordance with GAAP, as further discussed below. Subsequent to April 23, 2013 and prior to February 12, 2014, Net income per share - diluted was calculated consistently with the if-converted method in accordance with GAAP, as further discussed below. However, for the year ended December 31, 2013, the calculation under this method was anti-dilutive. |
Net Income Per Share (Details T
Net Income Per Share (Details Textual) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Preferred, Amount | 1.4 | 12.2 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 | 0.8 | 0.6 |
Income Taxes Domestic and Forei
Income Taxes Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Domestic operations | $ (1,231) | $ (127,114) | $ 11,603 |
Foreign operations | (21,486) | (12,374) | (1,657) |
Deferred income tax | (22,717) | (139,488) | 9,946 |
Provision for (benefit from) income taxes | 49,724 | (62,025) | 93,652 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Domestic operations | (16,487) | 53,153 | (7,899) |
Foreign operations | 253,389 | 305,095 | 310,694 |
Income before income taxes | 236,902 | 358,248 | 302,795 |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | 465 | 798 | (464) |
State | 1,076 | 2,047 | 871 |
Foreign | 70,900 | 74,618 | 83,299 |
Current income tax | $ 72,441 | $ 77,463 | $ 83,706 |
Income Taxes Reconciliation (De
Income Taxes Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Reconciliation At Federal Statutory Rate [Abstract] | |||
Taxes calculated at the U.S. federal statutory rate | $ 82,940 | $ 125,386 | $ 105,978 |
State taxes | 768 | 2,323 | 871 |
Effect of tax rates on international operations | (36,364) | (34,619) | (42,972) |
Change in enacted international tax rates | (4,415) | (149) | (5,217) |
Changes in valuation allowance and tax reserves | 1,784 | (156,071) | 30,554 |
Other | 5,011 | 1,105 | 4,438 |
Provision for (benefit from) income taxes | $ 49,724 | $ (62,025) | $ 93,652 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ||
Post-retirement benefit obligation | $ 75,045 | $ 92,995 |
Expenses currently not deductible | 109,283 | 116,247 |
Net operating loss carryforward | 211,627 | 228,863 |
Tax credit carryforward | 10,343 | 11,509 |
Depreciation and amortization | 7,533 | 11,121 |
Other | 25,379 | 22,285 |
Valuation allowance | (161,030) | (159,252) |
Deferred tax assets, net | 278,180 | 323,768 |
Depreciation and amortization | (317,464) | (353,660) |
Post-retirement benefit obligation | (13,581) | (12,116) |
Inventory | (17,122) | (16,549) |
Other | (174,367) | (193,618) |
Total deferred tax liabilities | (522,534) | (575,943) |
Total deferred tax liabilities, net | $ (244,354) | $ (252,175) |
Income Taxes Gross Unrecognized
Income Taxes Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of unrecognized tax beneits [Abstract] | ||
Beginning Balance | $ 77,525 | $ 71,595 |
Acquisitions | 37,328 | |
Addition for tax positions taken in prior periods | 3,924 | 3,752 |
Addition for tax positions taken in current period | 924 | 894 |
Reduction for tax positions taken in prior periods | (23,616) | (27,601) |
Other, including the impact of foreign currency translation | (5,879) | (8,443) |
Ending Balance | $ 52,878 | $ 77,525 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Deferred Tax Assets, Valuation Allowance | $ 161,030 | $ 159,252 | |||
Valuation Allowances and Reserves, Adjustments | $ (113,100) | ||||
Operating Loss Carryforwards | 267,300 | ||||
Alternative Minimum Tax Credit Carryforwards | 9,800 | ||||
Undistributed Earnings of Foreign Subsidiaries | 1,300,000 | ||||
Unrecognized Tax Benefits | 52,878 | 77,525 | $ 71,595 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 11,200 | 14,700 | |||
Unrecognized Tax Benefits To Offset Interest and Penalties | 100 | 100 | |||
Unrecognized Tax Benefits, Net | 52,800 | 77,400 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1,800 | 2,500 | 4,000 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 900 | ||||
Valuation Allowance of Deferred Tax Assets [Member] | |||||
Valuation Allowances And Reserves Foreign Currency Translation | (2,976) | (2,771) | (1,601) | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [1] | (3,862) | (65,999) | $ (27,233) | |
Valuation Allowances and Reserves, Charged to Cost and Expense, Net | $ 8,600 | ||||
Valuation Allowances and Reserves, Adjustments | $ 145,400 | ||||
[1] | Represents amount charge to Accumulated other comprehensive loss and, for the year ended December 31, 2014, includes reclassifications to deferred tax asset accounts. |
Goodwill & Intangibles Goodwill
Goodwill & Intangibles Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Goodwill [Line Items] | ||||
Balance beginning of period | $ 2,873,023 | $ 2,409,699 | ||
Goodwill attributable to acquisitions | 85,216 | 612,866 | [1] | $ 284,294 |
Impact of foreign currency translation and other | (140,552) | (149,542) | ||
Balance end of period | 2,817,687 | 2,873,023 | 2,409,699 | |
Gas and Fluid Handling [Member] | ||||
Goodwill [Line Items] | ||||
Balance beginning of period | 1,428,358 | 1,532,201 | ||
Goodwill attributable to acquisitions | 85,216 | 0 | [1] | |
Impact of foreign currency translation and other | (87,308) | (103,843) | ||
Balance end of period | 1,426,266 | 1,428,358 | 1,532,201 | |
Fabrication Technology [Member] | ||||
Goodwill [Line Items] | ||||
Balance beginning of period | 1,444,665 | 877,498 | ||
Goodwill attributable to acquisitions | 0 | 612,866 | [1] | |
Impact of foreign currency translation and other | (53,244) | (45,699) | ||
Balance end of period | $ 1,391,421 | $ 1,444,665 | $ 877,498 | |
[1] | During the year ended December 31, 2015, the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Goodwill & Intangibles Intangib
Goodwill & Intangibles Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets Schedule [Line Items] | ||
Intangible Assets, Gross | $ 1,169,474 | $ 1,168,383 |
Finite-Lived Intangible Assets, Accumulated Amortization | (173,762) | (124,800) |
Customer Relationships [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 573,589 | 593,799 |
Finite-Lived Intangible Assets, Accumulated Amortization | (117,573) | (85,171) |
Acquired Technology [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 149,578 | 113,697 |
Finite-Lived Intangible Assets, Accumulated Amortization | (37,012) | (27,681) |
Backlog [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,575 | 0 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,220) | 0 |
Other Intangible Assets [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 48,413 | 50,287 |
Finite-Lived Intangible Assets, Accumulated Amortization | (16,957) | (11,948) |
Trade Names [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Indefinite-Lived Trade Names | $ 395,319 | $ 410,600 |
Goodwill & Intangibles Amortiza
Goodwill & Intangibles Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 60,629 | $ 67,052 | $ 41,012 |
Goodwill & Intangibles (Details
Goodwill & Intangibles (Details Textual) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, 2016 | $ 59.9 |
Finite-Lived Intangible Assets, Amortization Expense, 2017 | 57.1 |
Finite-Lived Intangible Assets, Amortization Expense, 2018 | 54.5 |
Finite-Lived Intangible Assets, Amortization Expense, 2019 | 50 |
Finite-Lived Intangible Assets, Amortization Expense, 2020 | $ 47.3 |
Property, Plant and Equipment60
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | [1] | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 1,013,476 | $ 1,039,047 | ||
Accumulated depreciation | (368,940) | (311,612) | ||
Property, plant and equipment, net | [2] | 644,536 | 727,435 | [3] |
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 44,746 | 52,539 | ||
Buildings and improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 327,122 | 363,716 | ||
Buildings and improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Depreciable Life | 5 years | |||
Buildings and improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Depreciable Life | 40 years | |||
Machinery and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 546,052 | 524,723 | ||
Machinery and equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Depreciable Life | 3 years | |||
Machinery and equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Depreciable Life | 15 years | |||
Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 95,556 | $ 98,069 | ||
Software [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Depreciable Life | 3 years | |||
Software [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Depreciable Life | 5 years | |||
[1] | During the year ended December 31, 2015, the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. | |||
[2] | As the Company does not allocate all long-lived assets, specifically intangible assets, to each individual country, evaluation of long-lived assets in total is impracticable. | |||
[3] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Property, Plant and Equipment61
Property, Plant and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | $ 11,391 | $ 4,643 | |
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 90,700 | 94,500 | $ 78,100 |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 14,300 | 15,700 | 11,800 |
Asset Impairments Related to Facility Closures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | $ 9,300 | $ 4,600 | $ 1,900 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 160,640 | $ 164,115 |
Work in process | 68,541 | 81,110 |
Finished goods | 243,209 | 239,808 |
Inventory, Gross | 472,390 | 485,033 |
Less: customer progress payments | (15,876) | (7,728) |
Less: allowance for excess, slow-moving and obsolete inventory | (36,128) | (34,573) |
Inventories, net | $ 420,386 | $ 442,732 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Less: current portion | $ (5,792) | $ (9,855) |
Long-term debt | 1,411,755 | 1,526,955 |
Total Debt | 1,417,547 | 1,536,810 |
Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 713,175 | 1,210,474 |
Trade receivables financing arrangement [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 75,800 | 80,000 |
Revolving credit facilities and other [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 628,572 | $ 246,336 |
Debt Schedule of Debt Maturitie
Debt Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |||
2,016 | [1] | $ 5,792 | |
2,017 | [1] | 4,536 | |
2,018 | [1] | 4,598 | |
2,019 | [1] | 2,405 | |
2,020 | [1] | 1,408,916 | |
Total contractual maturities | [1] | 1,426,247 | |
Debt discount | [2] | (8,700) | |
Total debt | $ 1,417,547 | $ 1,536,810 | |
[1] | Represents scheduled payments required under the 2015 Deutsche Bank Credit Agreement through June 5, 2020, as well as the contractual maturities of other debt outstanding as of December 31, 2015, and reflects management’s intention to repay scheduled maturities of the term loans outstanding under the 2015 Deutsche Bank Credit Agreement and the trade receivables financing arrangement (if not extended) with proceeds from the revolving credit facility. | ||
[2] | Includes $1.2 million of deferred debt issuance costs pursuant to the adoption of ASU No. 2015-03. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Jun. 05, 2015 | Dec. 31, 2014 | May. 14, 2014 | ||
DB Term Loan | [1] | $ 1,426,247 | |||
Eurocurrency Rate Loan Interest Rate Margin Percentage | 1.50% | ||||
Base Rate Loan Interest Rate Margin Percentage | 0.50% | ||||
Eurocurrency Rate Loan Interest Rate Margin Percentage, Minimum | 1.25% | ||||
Eurocurrency Rate Interest Rate Loan Margin Percentage, Maximum | 2.00% | ||||
Base Rate Loan Interest Rate Margin Percentage, Minimum | 0.25% | ||||
Base Rate Loan Interest Rate Margin Percentage, Maximum | 1.00% | ||||
Write off of Deferred Debt Issuance Cost | $ 4,700 | ||||
Expenses Incurred During Refinance Of Debt | 400 | ||||
Debt discount | 7,500 | ||||
Deferred Finance Costs, Net | $ 8,100 | $ 9,900 | |||
Long-term Debt, Weighted Average Interest Rate | 1.83% | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 688,800 | ||||
Letters of Credit, Maximum Capacity | 718,800 | ||||
Letters of Credit, Amount Outstanding | $ 360,400 | ||||
Debt Instrument, Covenant Description | Certain U.S. subsidiaries of the Company have agreed to guarantee the obligations of the Company under the 2015 Deutsche Bank Credit Agreement. The 2015 Deutsche Bank Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, incur debt or liens, merge or consolidate with others, dispose of assets, make investments or pay dividends. In addition, the 2015 Deutsche Bank Credit Agreement contains financial covenants requiring the Company to maintain a total leverage ratio, as defined therein, of not more than 3.5 to 1.0 and minimum interest coverage ratio, as defined therein, of 3.0 to 1.0, measured at the end of each quarter | ||||
Debt Instrument, Covenant Compliance | As of December 31, 2015, the Company is in compliance with the covenants under the 2015 Deutsche Bank Credit Agreement. | ||||
Trade receivables financing arrangement [Member] | |||||
Increase in secured debt capacity | $ 15,000 | ||||
Trade receivables financing arrangement, maximum borrowing capacity | $ 95,000 | ||||
Trade receivables financing arrangement interest rate | 1.20% | ||||
Trade receivables financing arrangement outstanding borrowings | $ 75,800 | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,300,000 | ||||
Line of Credit Facility, Increase (Decrease), Net | 300,000 | ||||
Swingline Subfacility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||
A One Facility [Member] | |||||
Increase to Borrowing Capacity Under the Deutsche Bank Credit Agreement | $ 150,000 | ||||
DB Term Loan | $ 558,700 | ||||
Term Loans [Member] | |||||
DB Term Loan | $ 750,000 | ||||
[1] | Represents scheduled payments required under the 2015 Deutsche Bank Credit Agreement through June 5, 2020, as well as the contractual maturities of other debt outstanding as of December 31, 2015, and reflects management’s intention to repay scheduled maturities of the term loans outstanding under the 2015 Deutsche Bank Credit Agreement and the trade receivables financing arrangement (if not extended) with proceeds from the revolving credit facility. |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning Balance | $ (443,691) | $ (46,600) | $ (146,594) |
Acquisition of shares held by noncontrolling interest | (942) | (381) | |
Net actuarial gain (loss) | 28,349 | (89,379) | 77,515 |
Foreign currency translation adjustment | (293,646) | (346,524) | 21,091 |
(Loss) gain on long-term intra-entity foreign currency transactions | (550) | 2,096 | 2,176 |
Gain (loss) on net investment hedges | 14,537 | 39,374 | (14,261) |
Unrealized (loss) gain on cash flow hedges | (2,873) | (8,932) | 3,832 |
Other | 3,817 | 1,934 | 0 |
Other comprehensive (loss) income before reclassifications | (250,366) | (401,431) | 90,353 |
Amounts reclassified from Accumulated other comprehensive loss | 7,342 | 5,282 | 10,022 |
Net current period Other comprehensive (loss) income | (243,024) | (396,149) | 100,375 |
Ending balance | (686,715) | (443,691) | (46,600) |
Net Unrecognized Pension And Other Post-Retirement Benefit Cost [Member] | |||
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning Balance | (240,513) | (163,092) | (247,332) |
Acquisition of shares held by noncontrolling interest | 0 | 0 | |
Net actuarial gain (loss) | 28,349 | (89,379) | 77,515 |
Foreign currency translation adjustment | 7,747 | 4,742 | (3,297) |
(Loss) gain on long-term intra-entity foreign currency transactions | 0 | 0 | 0 |
Gain (loss) on net investment hedges | 0 | 0 | 0 |
Unrealized (loss) gain on cash flow hedges | 0 | 0 | 0 |
Other | 3,817 | 1,934 | |
Other comprehensive (loss) income before reclassifications | 39,913 | (82,703) | 74,218 |
Amounts reclassified from Accumulated other comprehensive loss | 7,342 | 5,282 | 10,022 |
Net current period Other comprehensive (loss) income | 47,255 | (77,421) | 84,240 |
Ending balance | (193,258) | (240,513) | (163,092) |
Foreign Currency Translation Adjustment [Member] | |||
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning Balance | (227,059) | 123,021 | 96,877 |
Acquisition of shares held by noncontrolling interest | (942) | (381) | |
Net actuarial gain (loss) | 0 | 0 | 0 |
Foreign currency translation adjustment | (301,011) | (351,234) | 24,349 |
(Loss) gain on long-term intra-entity foreign currency transactions | (550) | 2,096 | 2,176 |
Gain (loss) on net investment hedges | 0 | 0 | 0 |
Unrealized (loss) gain on cash flow hedges | 0 | 0 | 0 |
Other | 0 | 0 | |
Other comprehensive (loss) income before reclassifications | (301,561) | (349,138) | 26,525 |
Amounts reclassified from Accumulated other comprehensive loss | 0 | 0 | 0 |
Net current period Other comprehensive (loss) income | (301,561) | (349,138) | 26,525 |
Ending balance | (528,620) | (227,059) | 123,021 |
Unrealized Gain (Loss) On Hedging Activities [Member] | |||
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning Balance | 23,881 | (6,529) | 3,861 |
Acquisition of shares held by noncontrolling interest | 0 | 0 | |
Net actuarial gain (loss) | 0 | 0 | 0 |
Foreign currency translation adjustment | (382) | (32) | 39 |
(Loss) gain on long-term intra-entity foreign currency transactions | 0 | 0 | 0 |
Gain (loss) on net investment hedges | 14,537 | 39,374 | (14,261) |
Unrealized (loss) gain on cash flow hedges | (2,873) | (8,932) | 3,832 |
Other | 0 | 0 | |
Other comprehensive (loss) income before reclassifications | 11,282 | 30,410 | (10,390) |
Amounts reclassified from Accumulated other comprehensive loss | 0 | 0 | 0 |
Net current period Other comprehensive (loss) income | 11,282 | 30,410 | (10,390) |
Ending balance | $ 35,163 | $ 23,881 | $ (6,529) |
Equity (Details 1)
Equity (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Equity [Abstract] | ||||
Amortization of net loss, before tax | [1] | $ 10,953 | $ 7,097 | $ 10,489 |
Amortization of net loss, tax | [1] | (3,744) | (2,063) | (715) |
Amortization of net loss, net of tax | [1] | 7,209 | 5,034 | 9,774 |
Amortization of prior service cost, before tax | [1] | 248 | 248 | 248 |
Amortization of prior service cost, tax | [1] | (115) | 0 | 0 |
Amortization of prior service cost, net of tax | [1] | 133 | 248 | 248 |
Total amount reclassified from Accumulated other comprehensive loss, before tax | 11,201 | 7,345 | 10,737 | |
Total amount reclassified from Accumulated other comprehensive loss, tax | (3,859) | (2,063) | (715) | |
Total amount reclassified from Accumulated other comprehensive loss, net of tax | $ 7,342 | $ 5,282 | $ 10,022 | |
[1] | Included in the computation of net periodic benefit cost. See Note 13, “Defined Benefit Plans” for additional details. |
Equity Stock-based compensation
Equity Stock-based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Based Compensation [Abstract] | |||
Stock-based compensation expense | $ 16,321 | $ 17,580 | $ 13,334 |
Deferred tax benefit | $ 5,342 | $ 4,054 | $ 434 |
Equity Option Valuation Assumpt
Equity Option Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Assumptions [Abstract] | |||
Expected period that options will be outstanding (in years) | 5 years 7 days | 4 years 10 months 13 days | 4 years 10 months 25 days |
Interest rate (based on U.S. Treasury yields at the time of grant) | 1.62% | 1.62% | 1.06% |
Volatility | 28.75% | 34.67% | 43.22% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of options granted | $ 11.87 | $ 22.65 | $ 18.07 |
Equity Option Award Activity (D
Equity Option Award Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
Option Activity [Abstract] | ||
Number of options, Outstanding at January 1, 2015 | shares | 2,910,109 | |
Number of options, Granted | shares | 2,135,169 | |
Number of options, Exercised | shares | (364,211) | |
Number of options, Forfeited | shares | (381,156) | |
Number of options, Expired | shares | (38,321) | |
Number of options, Outstanding at December 31, 2015 | shares | 4,261,590 | |
Number of options, Vested or expected to vest at December 31, 2015 | shares | 4,196,996 | |
Number of options, Exercisable at December 31, 2015 | shares | 1,701,182 | |
Weighted-average exercise price, Outstanding at January 1, 2015 | $ / shares | $ 40.19 | |
Weighted-average exercise price, Granted | $ / shares | 41.63 | |
Weighted-average exercise price, Exercised | $ / shares | 16.62 | |
Weighted-average exercise price, Forfeited | $ / shares | 60.74 | |
Weighted-average exercise price, Expired | $ / shares | 41.74 | |
Weighted-average exercise price, Outstanding at December 31, 2015 | $ / shares | 41.07 | |
Weighted-average exercise price, Vested or expected to vest at December 31, 2015 | $ / shares | 40.97 | |
Weighted-average exercise price, Exercisable at December 31, 2015 | $ / shares | $ 35.06 | |
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2015 | 5 years 20 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at December 31, 2015 | 5 years 15 days | |
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2015 | 3 years 4 months 25 days | |
Aggregate intrinsic value, Outstanding at December 31, 2015 | $ | $ 1,916 | [1] |
Aggregate intrinsic value, Vested or expected to vest at December 31, 2015 | $ | 1,916 | [1] |
Aggregate intrinsic value, Exercisable at December 31, 2015 | $ | $ 1,916 | [1] |
[1] | The aggregate intrinsic value is based upon the difference between the Company’s closing stock price at the date of the Consolidated Balance Sheet and the exercise price of the stock option for in-the-money stock options. The intrinsic value of outstanding stock options fluctuates based upon the trading value of the Company’s Common stock. |
Equity PRSU and RSU Activity (D
Equity PRSU and RSU Activity (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Performance Based Restricted Stock Units (PRSUs) [Member] | |
Award Activity Rollforward [Line Items] | |
Number of units, Nonvested at January 1, 2015 | shares | 581,936 |
Number of units, Granted | shares | 343,715 |
Number of units, Vested | shares | (259,539) |
Number of units, Forefeited | shares | (143,101) |
Number of units, Nonvested at December 31, 2015 | shares | 523,011 |
Weighted-average grant date fair value, Nonvested at January 1, 2015 | $ / shares | $ 38.67 |
Weighted-average grant date fair value, Granted | $ / shares | 40.55 |
Weighted-average grant date fair value, Vested | $ / shares | 25.64 |
Weighted-average grant date fair value, Forfeited | $ / shares | 61.28 |
Weighted-average grant date fair value, Nonvested at December 31, 2015 | $ / shares | $ 40.19 |
Restricted Stock Units (RSUs) [Member] | |
Award Activity Rollforward [Line Items] | |
Number of units, Nonvested at January 1, 2015 | shares | 168,911 |
Number of units, Granted | shares | 353,887 |
Number of units, Vested | shares | (66,366) |
Number of units, Forefeited | shares | (42,911) |
Number of units, Nonvested at December 31, 2015 | shares | 413,521 |
Weighted-average grant date fair value, Nonvested at January 1, 2015 | $ / shares | $ 56.13 |
Weighted-average grant date fair value, Granted | $ / shares | 39.53 |
Weighted-average grant date fair value, Vested | $ / shares | 42.69 |
Weighted-average grant date fair value, Forfeited | $ / shares | 54.99 |
Weighted-average grant date fair value, Nonvested at December 31, 2015 | $ / shares | $ 44.20 |
Equity Textuals (Details)
Equity Textuals (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2016 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 04, 2016 | |
Equity Text [Abstract] | ||||||
Common stock-based award activity (in shares) | 676,126 | 252,674 | 265,995 | |||
Stock Issued During Period, Shares, New Issues | 9,200,000 | 7,500,000 | ||||
Stock Issued During Period, Value, New Issues | $ 632,500 | $ 331,900 | ||||
Stock issuance costs | $ 22,100 | 12,000 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 12,173,291 | |||||
Conversion of Stock, Shares Converted | 13,877,552 | |||||
Fractional Share, Cash in Lieu, Share Amount | 0.22807018 | |||||
Preferred stock conversion inducement payment | $ 19,600 | $ 0 | $ 19,565 | $ 0 | ||
Preferred Stock Conversions, Cash Payment Upon Conversion | $ 23,400 | $ 23,400 | ||||
Contribution to defined benefit pension plan (in shares) | 66,000 | 183,000 | 88,200 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||
Stock Repurchased and Retired During Period, Shares | 1,000,000 | 986,279 | ||||
Stock Repurchased and Retired During Period, Value | $ 27,367 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 52,000 | |||||
Other Comprehensive Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | (22,800) | $ (12,400) | $ (17,500) | |||
Unrecognized stock-based compensation expense | $ 50,300 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 21,800 | 13,300 | 9,200 | |||
Stock Option Plan 2008 Description | Under the 2008 Plan, the Company may grant options to purchase Common stock, with a maximum term of 10 years at a purchase price equal to the market value of the Company’s Common stock on the date of grant. In the case of an incentive stock option granted to a holder of 10% of the Company’s outstanding Common stock, the Company may grant options to purchase Common stock with a maximum term of 5 years, at a purchase price equal to 110% of the market value of the Company’s Common stock on the date of grant. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 8,900 | $ 6,400 | $ 2,500 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accrued Liabilities [Abstract] | ||||
Accrued payroll | $ 99,383 | $ 120,068 | ||
Advance payment from customers | 45,590 | 58,049 | ||
Accrued taxes and deferred tax liability - current portion | 51,834 | 52,599 | [1] | |
Accrued Asbestos-related liability | [2] | 48,780 | 50,175 | |
Warranty liability - current portion | 36,128 | 47,966 | ||
Accrued restructuring liability - current portion | 12,918 | 21,846 | ||
Accrued third-party commissions | 10,275 | 11,026 | ||
Other | 86,751 | 128,254 | ||
Accrued liabilities | $ 391,659 | $ 489,983 | [1] | |
[1] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. | |||
[2] | Represents current accruals for probable and reasonably estimable asbestos-related liability cost that the Company believes the subsidiaries will pay through the next 15 years, overpayments by certain insurers and unpaid legal costs related to defending themselves against asbestos-related liability claims and legal action against the Company’s insurers, which is included in Accrued liabilities in the Consolidated Balance Sheets. |
Restructuring Rollforward (Deta
Restructuring Rollforward (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Balance at Beginning of Period | $ 23,010 | [1] | $ 14,115 | ||
Restructuring provisions before non-cash charges | 49,786 | 53,478 | |||
Non-cash impairment provisions | 11,391 | 4,643 | |||
Provisions | 61,177 | 58,121 | |||
Payments | (57,734) | (43,458) | |||
Foreign Currency Translation | (1,344) | (1,125) | |||
Balance at End of Period | 13,718 | [2] | 23,010 | [1] | |
Gas and Fluid Handling [Member] | |||||
Balance at Beginning of Period | 8,996 | 4,394 | |||
Restructuring provisions before non-cash charges | 28,958 | 23,670 | |||
Non-cash impairment provisions | 2,569 | 2,863 | |||
Provisions | 31,527 | 26,533 | |||
Payments | (30,637) | (18,601) | |||
Foreign Currency Translation | (681) | (467) | |||
Balance at End of Period | 6,636 | 8,996 | |||
Fabrication Technology [Member] | |||||
Balance at Beginning of Period | 13,092 | 8,462 | |||
Restructuring provisions before non-cash charges | 20,828 | 29,808 | |||
Non-cash impairment provisions | 8,822 | 1,780 | |||
Provisions | 29,650 | 31,588 | |||
Payments | (26,843) | (24,582) | |||
Foreign Currency Translation | (620) | (596) | |||
Balance at End of Period | 6,457 | 13,092 | |||
Corporate and Other [Member] | |||||
Balance at Beginning of Period | 922 | 1,259 | |||
Provisions | 0 | 0 | |||
Payments | (254) | (275) | |||
Foreign Currency Translation | (43) | (62) | |||
Balance at End of Period | 625 | 922 | |||
Employee Severance [Member] | Gas and Fluid Handling [Member] | |||||
Balance at Beginning of Period | [3] | 7,551 | 3,638 | ||
Provisions | [3] | 19,927 | 18,179 | ||
Payments | [3] | (22,994) | (13,887) | ||
Foreign Currency Translation | [3] | (505) | (379) | ||
Balance at End of Period | [3] | 3,979 | 7,551 | ||
Employee Severance [Member] | Fabrication Technology [Member] | |||||
Balance at Beginning of Period | [3] | 11,155 | 7,033 | ||
Provisions | [3] | 15,507 | 26,790 | ||
Payments | [3] | (20,196) | (22,227) | ||
Foreign Currency Translation | [3] | (435) | (441) | ||
Balance at End of Period | [3] | 6,031 | 11,155 | ||
Facility Closing [Member] | Gas and Fluid Handling [Member] | |||||
Balance at Beginning of Period | [4] | 1,445 | 756 | ||
Provisions | [4] | 9,031 | 5,491 | ||
Payments | [4] | (7,643) | (4,714) | ||
Foreign Currency Translation | [4] | (176) | (88) | ||
Balance at End of Period | [4] | 2,657 | 1,445 | ||
Facility Closing [Member] | Fabrication Technology [Member] | |||||
Balance at Beginning of Period | [4] | 1,937 | 1,429 | ||
Provisions | [4] | 5,321 | 3,018 | ||
Payments | [4] | (6,647) | (2,355) | ||
Foreign Currency Translation | [4] | (185) | (155) | ||
Balance at End of Period | [4] | 426 | 1,937 | ||
Facility Closing [Member] | Corporate and Other [Member] | |||||
Balance at Beginning of Period | [4] | 922 | 1,259 | ||
Provisions | [4] | 0 | 0 | ||
Payments | [4] | (254) | (275) | ||
Foreign Currency Translation | [4] | (43) | (62) | ||
Balance at End of Period | [4] | $ 625 | $ 922 | ||
[1] | As of December 31, 2014, $21.8 million and $1.2 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. | ||||
[2] | As of December 31, 2015, $12.9 million and $0.8 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. | ||||
[3] | Includes severance and other termination benefits, including outplacement services. The Company recognizes the cost of involuntary termination benefits at the communication date or ratably over any remaining expected future service period. Voluntary termination benefits are recognized as a liability and an expense when employees accept the offer and the amount can be reasonably estimated. | ||||
[4] | Includes the cost of relocating associates, relocating equipment and lease termination expense in connection with the closure of facilities. |
Accrued Liabilities (Details Te
Accrued Liabilities (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities [Abstract] | ||
Restructuring and Related Cost, Expected Cost | $ 70,000 | |
Accrued restructuring liability - current portion | 12,918 | $ 21,846 |
Accrued restructuring liability - noncurrent portion | $ 800 | $ 1,200 |
Defined Benefit Plans Obligatio
Defined Benefit Plans Obligation and Asset Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Stock Issued During Period, Value, Employee Benefit Plan | $ 3,428 | $ 11,850 | $ 4,877 | |
Fair value of plan assets, beginning of year | 1,469,103 | |||
Fair value of plan assets, end of year | 1,337,405 | 1,469,103 | ||
Pension Benefits [Member] | ||||
Projected benefit obligation, beginning of year | 1,765,493 | 1,640,418 | ||
Acquisitions | 31,914 | 48,938 | ||
Service cost | 4,612 | 4,883 | 3,985 | |
Interest cost | 54,807 | 70,469 | 63,132 | |
Actuarial loss (gain) | (93,878) | 211,170 | ||
Foreign exchange effect | (77,854) | (97,525) | ||
Benefits paid | (105,589) | (111,971) | ||
Settlements | (29,811) | (1,387) | ||
Other | 949 | 498 | ||
Projected benefit obligation, end of year | 1,550,643 | 1,765,493 | 1,640,418 | |
Accumulated benefit obligation, end of year | 1,530,327 | 1,739,642 | ||
Fair value of plan assets, beginning of year | 1,469,103 | 1,367,315 | ||
Acquisitions | 28,591 | 42,051 | ||
Actual return on plan assets | (9,390) | 174,065 | ||
Employer contribution | [1] | 45,594 | 69,714 | |
Foreign exchange effect | (63,060) | (70,851) | ||
Settlements | (28,399) | (1,387) | ||
Other | 555 | 167 | ||
Fair value of plan assets, end of year | 1,337,405 | 1,469,103 | 1,367,315 | |
Funded status, end of year | (213,238) | (296,390) | ||
Non-current assets | 73,914 | 58,997 | ||
Current liabilities | (4,741) | (5,328) | ||
Non-current liabilities | (282,411) | (350,059) | ||
Total | (213,238) | (296,390) | ||
Other Post-Retirement Benefits [Member] | ||||
Projected benefit obligation, beginning of year | 35,085 | 28,823 | ||
Acquisitions | 4,983 | 1,011 | ||
Service cost | 33 | 155 | 179 | |
Interest cost | 1,170 | 1,304 | 1,090 | |
Actuarial loss (gain) | (6,410) | 5,553 | ||
Foreign exchange effect | 0 | 0 | ||
Benefits paid | (1,942) | (1,761) | ||
Settlements | 0 | 0 | ||
Other | 174 | 0 | ||
Projected benefit obligation, end of year | 33,093 | 35,085 | 28,823 | |
Accumulated benefit obligation, end of year | 33,093 | 35,085 | ||
Fair value of plan assets, beginning of year | 0 | 0 | ||
Acquisitions | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contribution | 1,942 | 1,761 | ||
Foreign exchange effect | 0 | 0 | ||
Settlements | 0 | 0 | ||
Other | 0 | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | 0 | |
Funded status, end of year | (33,093) | (35,085) | ||
Non-current assets | 0 | 0 | ||
Current liabilities | (2,915) | (2,749) | ||
Non-current liabilities | (30,178) | (32,336) | ||
Total | (33,093) | (35,085) | ||
Foreign Pension Benefits [Member] | ||||
Projected benefit obligation, beginning of year | 1,265,143 | 1,205,554 | ||
Acquisitions | 0 | 21,578 | ||
Service cost | 4,506 | 4,883 | 3,985 | |
Interest cost | 37,253 | 51,658 | 46,775 | |
Actuarial loss (gain) | (64,801) | 144,232 | ||
Foreign exchange effect | (77,854) | (97,525) | ||
Benefits paid | (60,162) | (64,347) | ||
Settlements | (29,811) | (1,387) | ||
Other | 949 | 497 | ||
Projected benefit obligation, end of year | 1,075,223 | 1,265,143 | 1,205,554 | |
Accumulated benefit obligation, end of year | 1,054,907 | 1,239,292 | ||
Fair value of plan assets, beginning of year | 1,079,497 | 999,197 | ||
Acquisitions | 0 | 20,873 | ||
Actual return on plan assets | 11,159 | 139,460 | ||
Employer contribution | 41,659 | 56,384 | ||
Foreign exchange effect | (63,060) | (70,851) | ||
Settlements | (28,399) | (1,387) | ||
Other | 555 | 168 | ||
Fair value of plan assets, end of year | 981,249 | 1,079,497 | $ 999,197 | |
Funded status, end of year | (93,974) | (185,646) | ||
All Plans [Member] | ||||
Stock Issued During Period, Value, Employee Benefit Plan | $ 3,400 | $ 11,900 | ||
[1] | Contributions during the years ended December 31, 2015 and 2014 include contributions of 66,000 and 183,000 shares of Colfax Common stock, respectively, with values on the contribution dates of approximately $3.4 million and $11.9 million, respectively. |
Defined Benefit Plans Defined B
Defined Benefit Plans Defined Benefit Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pension Benefits [Member] | |
2,016 | $ 88,062 |
2,017 | 88,781 |
2,018 | 89,611 |
2,019 | 88,702 |
2,020 | 89,083 |
2021- 2015 | 445,740 |
Foreign Pension Plans [Member] | |
2,016 | 53,907 |
2,017 | 54,821 |
2,018 | 55,994 |
2,019 | 55,459 |
2,020 | 56,074 |
2021- 2015 | 289,491 |
Other Post-Retirement Benefits [Member] | |
2,016 | 2,915 |
2,017 | 2,823 |
2,018 | 2,717 |
2,019 | 2,490 |
2,020 | 2,268 |
2021- 2015 | $ 9,076 |
Defined Benefit Plans Plan Asse
Defined Benefit Plans Plan Asset Allocation (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Equity Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 42.00% | 43.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 30.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 45.00% | |
International Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 16.00% | 15.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 10.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 20.00% | |
Equity Securities [Member] | Foreign Pension Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 32.00% | 30.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 10.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 50.00% | |
Fixed Income Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 41.00% | 41.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 30.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 50.00% | |
Fixed Income Securities [Member] | Foreign Pension Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 64.00% | 66.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 50.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 90.00% | |
Cash and Cash Equivalents [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 0.00% | 0.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 5.00% | |
Cash and Cash Equivalents [Member] | Foreign Pension Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 1.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 25.00% | |
Other Securities [Member] | U.S. Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 1.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 20.00% | |
Other Securities [Member] | Foreign Pension Plans [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 3.00% | 3.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 5.00% |
Defined Benefit Plans Plan As79
Defined Benefit Plans Plan Asset Allocation, Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,337,405 | $ 1,469,103 | ||||
Fair Value, Inputs, Level 1 [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 457,361 | 523,253 | ||||
Fair Value, Inputs, Level 2 [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 403,495 | 469,004 | ||||
Measured at Net Asset Value [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 476,549 | 476,846 | |||
U.S. Plans [Member] | U.S. Large Cap [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 100,226 | 104,164 | ||||
U.S. Plans [Member] | U.S. Small Mid Cap [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 48,773 | 63,210 | ||||
U.S. Plans [Member] | International Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 58,642 | 58,713 | ||||
U.S. Plans [Member] | U.S. Government and Corporate [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 143,787 | 157,872 | ||||
U.S. Plans [Member] | Structured Loan Fund [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,226 | |||||
U.S. Plans [Member] | Other Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 4,728 | [2] | 4,421 | [3] | ||
U.S. Plans [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Large Cap [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 3,901 | |||||
U.S. Plans [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Small Mid Cap [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 7,874 | 19,540 | ||||
U.S. Plans [Member] | Fair Value, Inputs, Level 1 [Member] | International Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,461 | |||||
U.S. Plans [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Government and Corporate [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 10,508 | |||||
U.S. Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Other Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,811 | [2] | $ 1,623 | [3] | ||
U.S. Plans [Member] | Fair Value, Inputs, Level 3 [Member] | Structured Loan Fund [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | ||||||
U.S. Plans [Member] | Measured at Net Asset Value [Member] | U.S. Large Cap [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 100,226 | $ 100,263 | |||
U.S. Plans [Member] | Measured at Net Asset Value [Member] | U.S. Small Mid Cap [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 40,899 | 43,670 | |||
U.S. Plans [Member] | Measured at Net Asset Value [Member] | International Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 58,642 | 56,252 | |||
U.S. Plans [Member] | Measured at Net Asset Value [Member] | U.S. Government and Corporate [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | 143,787 | 147,364 | |||
U.S. Plans [Member] | Measured at Net Asset Value [Member] | Structured Loan Fund [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,226 | |||||
U.S. Plans [Member] | Measured at Net Asset Value [Member] | Other Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,917 | [1],[2] | 2,798 | [3],[4] | ||
Foreign Pension Plans [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 981,249 | 1,079,497 | $ 999,197 | |||
Foreign Pension Plans [Member] | Cash and Cash Equivalents [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 12,832 | 12,951 | ||||
Foreign Pension Plans [Member] | Equity Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 312,852 | 326,107 | ||||
Foreign Pension Plans [Member] | Non-U.S. Government and Corporate Bonds [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 626,374 | 707,990 | ||||
Foreign Pension Plans [Member] | Other Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 29,191 | [2] | 32,449 | [3] | ||
Foreign Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 12,832 | 12,951 | ||||
Foreign Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 150,376 | 161,524 | ||||
Foreign Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Non-U.S. Government and Corporate Bonds [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 282,504 | 308,705 | ||||
Foreign Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Other Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,964 | [2] | 2,040 | [3] | ||
Foreign Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 32,398 | 39,310 | ||||
Foreign Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Non-U.S. Government and Corporate Bonds [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 343,870 | 399,285 | ||||
Foreign Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Other Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 27,227 | [2] | 30,409 | [3] | ||
Foreign Pension Plans [Member] | Measured at Net Asset Value [Member] | Equity Securities [Member] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [1] | $ 130,078 | $ 125,273 | |||
[1] | In accordance with ASU No. 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent)practical expedient (the “NAV”) have not been classified in the fair value hierarchy. These investments, consisting of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund, that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term. See further discussion in Note 3, “Recently Issued Accounting Pronouncements”. | |||||
[2] | Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. | |||||
[3] | Represents diversified portfolio funds and reinsurance contracts maintained for certain plans. | |||||
[4] | In accordance with ASU No. 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent)practical expedient (the “NAV”) have not been classified in the fair value hierarchy. These investments, consisting primarily of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund, that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term. See further discussion in Note 3, “Recently Issued Accounting Pronouncements”. |
Defined Benefit Plans Net Perio
Defined Benefit Plans Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits [Member] | |||
Service cost | $ 4,612 | $ 4,883 | $ 3,985 |
Interest cost | 54,807 | 70,469 | 63,132 |
Amortization | 11,515 | 6,608 | 9,672 |
Settlement loss (gain) | (582) | 190 | (592) |
Other | 525 | 328 | (154) |
Expected return on plan assets | (58,107) | (69,055) | (58,511) |
Net periodic benefit cost | 12,770 | 13,423 | 17,532 |
Current year net actuarial loss (gain) | (33,558) | 96,005 | (69,463) |
Amortization of net loss | (11,515) | (6,608) | (9,672) |
Settlement loss | (952) | (190) | (32) |
Amortization of prior service cost | 0 | 0 | 0 |
Total recognized in Other comprehensive (loss) income | (46,025) | 89,207 | (79,167) |
Other Post-Retirement Benefits [Member] | |||
Service cost | 33 | 155 | 179 |
Interest cost | 1,170 | 1,304 | 1,090 |
Amortization | 259 | 468 | 609 |
Settlement loss (gain) | 0 | 0 | 0 |
Other | 174 | 0 | 125 |
Expected return on plan assets | 0 | 0 | 0 |
Net periodic benefit cost | 1,636 | 1,927 | 2,003 |
Current year net actuarial loss (gain) | (6,410) | 5,553 | (6,072) |
Amortization of net loss | (11) | (220) | (361) |
Settlement loss | 0 | 0 | 0 |
Amortization of prior service cost | (248) | (248) | (248) |
Total recognized in Other comprehensive (loss) income | (6,669) | 5,085 | (6,681) |
Foreign Pension Benefits [Member] | |||
Service cost | 4,506 | 4,883 | 3,985 |
Interest cost | 37,253 | 51,658 | 46,775 |
Amortization | 4,272 | 1,669 | 2,305 |
Settlement loss (gain) | (582) | 190 | (592) |
Other | 525 | 328 | (154) |
Expected return on plan assets | (32,921) | (44,287) | (34,541) |
Net periodic benefit cost | 13,053 | 14,441 | 17,778 |
Current year net actuarial loss (gain) | (50,216) | 38,904 | (16,121) |
Amortization of net loss | (4,272) | (1,669) | (2,305) |
Settlement loss | (952) | (190) | (32) |
Amortization of prior service cost | 0 | 0 | 0 |
Total recognized in Other comprehensive (loss) income | $ (55,440) | $ 37,045 | $ (18,458) |
Defined Benefit Plans Defined81
Defined Benefit Plans Defined Benefit Plans, Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits [Member] | ||
Net actuarial loss (gain) | $ 239,225 | $ 285,250 |
Prior service cost | 0 | 0 |
Total | 239,225 | 285,250 |
Net Actuarial Loss Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | 8,336 | |
Prior Service Cost Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | 0 | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | 8,336 | |
Other Post-Retirement Benefits [Member] | ||
Net actuarial loss (gain) | (1,845) | 4,576 |
Prior service cost | 559 | 807 |
Total | (1,286) | $ 5,383 |
Net Actuarial Loss Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | 8 | |
Prior Service Cost Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | 248 | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | $ 256 |
Defined Benefit Plans Key Econo
Defined Benefit Plans Key Economic Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
All Plans [Member] | Pension Benefits [Member] | |||
Weighted-average discount rate, benefit obligation | 3.60% | 3.30% | |
Weighted-average discount rate, net periodic benefit cost | 3.30% | 4.40% | 4.00% |
Weighted-average expected return on plan assets, net periodic benefit cost | 4.70% | 5.40% | 5.10% |
All Plans [Member] | Other Post-Retirement Benefits [Member] | |||
Weighted-average discount rate, benefit obligation | 4.00% | 3.60% | |
Weighted-average discount rate, net periodic benefit cost | 3.60% | 4.40% | 3.50% |
Foreign Plans [Member] | Pension Benefits [Member] | |||
Weighted-average discount rate, benefit obligation | 3.50% | 3.30% | |
Weighted-average rate of increase in compensation levels for active foreign plans, benefit obligation | 1.50% | 1.60% | |
Weighted-average discount rate, net periodic benefit cost | 3.30% | 4.40% | 4.20% |
Weighted-average expected return on plan assets, net periodic benefit cost | 3.90% | 4.90% | 4.30% |
Weighted-average rate of increase in compensation levels for active foreign plans, net periodic benefit cost | 1.60% | 1.70% | 1.50% |
Defined Benefit Plans Health Ca
Defined Benefit Plans Health Care Assumption Effect (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Health Care Increase Decrease [Abstract] | |
Effect on total service and interest cost components for 1% increase in health care costs | $ 118 |
Effect on total service and interest cost components for 1% decrease in health care costs | (95) |
Effect on post-retirement benefit obligation at December 31, 2015 for 1% increase in health care costs | 3,035 |
Effect on post-retirement benefit obligation at December 31, 2015 for 1% decrease in health care costs | $ (2,471) |
Defined Benefit Plans Details T
Defined Benefit Plans Details Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Issued During Period, Value, Employee Benefit Plan | $ 3,428 | $ 11,850 | $ 4,877 |
Contribution to defined benefit pension plan (in shares) | 66,000 | 183,000 | 88,200 |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | $ 1,000,000 | $ 1,300,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 700,000 | 1,000,000 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Benefit Obligation | 1,000,000 | 1,400,000 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 700,000 | 1,100,000 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 34,900 | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 6.00% | ||
Defined Benefit Plan, Description of Direction and Pattern of Change for Assumed Health Care Cost Trend Rate | The rate was assumed to decrease gradually to 5.0% by 2021 for one the Company’s plans and to 4.5% by 2027 for the remaining plans and remain at those levels thereafter for benefits covered under the plans. | ||
Defined Contribution Plan, Cost Recognized | $ 26,500 | 25,300 | $ 21,500 |
All Plans [Member] | |||
Stock Issued During Period, Value, Employee Benefit Plan | $ 3,400 | $ 11,900 |
Fair Value Hierarchy (Details)
Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash equivalents | $ 22,516 | $ 23,143 |
Deferred Compensation Plan Assets | 4,000 | 2,941 |
Deferred Compensation Liability, Current and Noncurrent | 4,000 | 2,941 |
Assets, Fair Value Disclosure | 30,060 | 34,073 |
Liabilities, Fair Value Disclosure | 11,787 | 14,253 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 22,516 | 23,143 |
Assets, Fair Value Disclosure | 22,516 | 23,143 |
Fair Value, Inputs, Level 2 [Member] | ||
Deferred Compensation Plan Assets | 4,000 | 2,941 |
Deferred Compensation Liability, Current and Noncurrent | 4,000 | 2,941 |
Assets, Fair Value Disclosure | 7,544 | 10,930 |
Liabilities, Fair Value Disclosure | 11,787 | 14,253 |
Foreign currency contracts related to sales | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 988 | 4,524 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 664 | 1,007 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 6,368 | 7,163 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 969 | 2,793 |
Foreign currency contracts related to sales | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 988 | 4,524 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 664 | 1,007 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 6,368 | 7,163 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 969 | 2,793 |
Foreign currency contracts related to purchases | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 1,554 | 1,980 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 338 | 478 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 322 | 695 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 128 | 661 |
Foreign currency contracts related to purchases | Fair Value, Inputs, Level 2 [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 1,554 | 1,980 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 338 | 478 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 322 | 695 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 128 | $ 661 |
Notional Values (Details)
Notional Values (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative, Notional Amount | $ 430,293 | $ 465,605 |
Foreign currency contracts related to sales | Not Designated As Hedging Instrument [Member] | ||
Derivative, Notional Amount | 119,653 | 124,838 |
Foreign currency contracts related to sales | Designated As Hedging Instrument [Member] | ||
Derivative, Notional Amount | 206,366 | 250,743 |
Foreign currency contracts related to purchases | Not Designated As Hedging Instrument [Member] | ||
Derivative, Notional Amount | 41,480 | 36,080 |
Foreign currency contracts related to purchases | Designated As Hedging Instrument [Member] | ||
Derivative, Notional Amount | $ 62,794 | $ 53,944 |
Gain (Loss) on Derivative Instr
Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | $ 14,537 | $ 39,374 | $ (14,261) | |
Designated As Hedging Instrument [Member] | ||||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | [1] | 14,537 | 39,374 | (14,261) |
Designated As Hedging Instrument [Member] | Foreign currency contracts related to sales | ||||
Unrealized (Loss) Gain on Foreign Currency Contracts | (2,350) | (4,706) | 3,801 | |
Realized (Loss) Gain on Foreign Currency Contracts | (512) | (5,776) | 654 | |
Designated As Hedging Instrument [Member] | Foreign currency contracts related to purchases | ||||
Unrealized (Loss) Gain on Foreign Currency Contracts | (1,173) | (1,719) | 397 | |
Realized (Loss) Gain on Foreign Currency Contracts | 756 | 3,386 | (298) | |
Not Designated As Hedging Instrument [Member] | Foreign currency contracts related to sales | ||||
Unrealized (Loss) Gain on Foreign Currency Contracts | 2,260 | (1,389) | (762) | |
Realized (Loss) Gain on Foreign Currency Contracts | (5,644) | (4,342) | 1,112 | |
Not Designated As Hedging Instrument [Member] | Foreign currency contracts related to purchases | ||||
Unrealized (Loss) Gain on Foreign Currency Contracts | 393 | (1,304) | 1,687 | |
Realized (Loss) Gain on Foreign Currency Contracts | $ 1,165 | $ 1,355 | $ 1,359 | |
[1] | The unrealized gain (loss) on net investment hedges is attributable to the change in valuation of Euro denominated debt. |
Financial Instruments and Fai88
Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) $ in Billions | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, Fair Value | $ 1.4 | $ 1.5 |
China | ||
Concentration of Credit Risk Accounts Receivable percentage | 20.00% | 18.00% |
Claims Rollforward (Details)
Claims Rollforward (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Asbestos_claims | Dec. 31, 2014USD ($)Asbestos_claims | Dec. 31, 2013USD ($)Asbestos_claims | ||
Claims unresolved, beginning of period | [1] | 21,681 | 22,393 | 23,523 |
Claims filed(2) | [1],[2] | 4,821 | 4,850 | 6,299 |
Claims resolved(3) | [1],[3] | (5,919) | (5,562) | (7,429) |
Claims unresolved, end of period | [1] | 20,583 | 21,681 | 22,393 |
Average Cost of Resolved Claims(4) | $ | [4] | $ 6,056 | $ 7,513 | $ 5,979 |
[1] | Excludes claims filed by one legal firm that have been “administratively dismissed.” | |||
[2] | Claims filed include all asbestos claims for which notification has been received or a file has been opened. | |||
[3] | Claims resolved include all asbestos claims that have been settled, dismissed or that are in the process of being settled or dismissed based upon agreements or understandings in place with counsel for the claimants. | |||
[4] | Excludes claims settled in Mississippi for which the majority of claims have historically been resolved for no payment and insurance recoveries. |
Asbestos Litigation (Details 1)
Asbestos Litigation (Details 1) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Current asbestos insurance asset(1) | [1] | $ 28,872 | $ 34,540 |
Long-term asbestos insurance asset(2) | [2] | 284,095 | 282,679 |
Long-term asbestos insurance receivable(2) | [2] | 96,007 | 82,340 |
Accrued asbestos liability(3) | [3] | 48,780 | 50,175 |
Long-term asbestos liability(4) | [4] | $ 350,394 | $ 346,099 |
[1] | Included in Other current assets in the Consolidated Balance Sheets. | ||
[2] | Included in Other assets in the Consolidated Balance Sheets. | ||
[3] | Represents current accruals for probable and reasonably estimable asbestos-related liability cost that the Company believes the subsidiaries will pay through the next 15 years, overpayments by certain insurers and unpaid legal costs related to defending themselves against asbestos-related liability claims and legal action against the Company’s insurers, which is included in Accrued liabilities in the Consolidated Balance Sheets. | ||
[4] | Included in Other liabilities in the Consolidated Balance Sheets. |
Commitments and Contingencies O
Commitments and Contingencies Operating Lease (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 32,121 |
2,017 | 19,798 |
2,018 | 15,624 |
2,019 | 14,064 |
2,020 | 12,390 |
Thereafter | 47,333 |
Total | $ 141,330 |
Commitments and Contingencies92
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | |
Future Claims Period | 15 years | |||
Pretax Charge, Asbestos-Related | $ 4.1 | $ 6.9 | $ 0.6 | |
Liability for Asbestos and Environmental Claims, Gross, Incurred Loss | 20.2 | 14.5 | 10.8 | |
Insurance Recovery Increase | 16.1 | 7.6 | 10.2 | |
Operating Leases, Rent Expense, Net | 39.9 | $ 39.8 | $ 35.4 | |
Purchase Obligation | $ 351.4 | |||
Subsidiary 1 [Member] | ||||
Future Expected Recovery Percentage | 93.00% | |||
Future Expected Asbestos Cost Percentage | 7.00% | |||
Indemnification Period | 20 years | |||
Estimated Insurance Recoveries | $ 78.4 | |||
Funding Requirement Amount | $ 10 | |||
Estimate of Expected Future Recovery Reductions | minimal to $30 million | |||
Subsidiary 2 [Member] | ||||
Asbestos Related Costs Percentage | 19.90% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Net sales | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 1,206,356 | $ 1,164,453 | $ 1,199,336 | $ 1,054,331 | $ 3,967,053 | [1] | $ 4,624,476 | [1] | $ 4,207,209 | [1] | ||
Income before income taxes | [2] | 236,902 | 358,248 | 302,795 | ||||||||||||
Interest expense | [2] | 47,743 | 51,305 | 103,597 | ||||||||||||
Restructuring and other related charges | [2] | 61,177 | 58,121 | 35,502 | ||||||||||||
Segment Operating Income | [2] | 345,822 | 467,674 | 441,894 | ||||||||||||
Depreciation, amortization and impairment charges | 154,542 | 174,724 | 119,258 | |||||||||||||
Capital expenditures | 69,877 | 84,458 | 71,482 | |||||||||||||
Equity Method Investments | 45,911 | 52,496 | 45,911 | 52,496 | ||||||||||||
Assets | 6,732,919 | 7,211,517 | [3] | 6,732,919 | 7,211,517 | [3] | ||||||||||
Gas and Fluid Handling [Member] | ||||||||||||||||
Net sales | 1,981,816 | 2,329,598 | 2,104,048 | |||||||||||||
Segment Operating Income | 194,469 | 254,240 | 270,708 | |||||||||||||
Depreciation, amortization and impairment charges | 68,457 | 96,763 | 62,792 | |||||||||||||
Capital expenditures | 34,303 | 32,558 | 37,995 | |||||||||||||
Equity Method Investments | 3,805 | 7,085 | 3,805 | 7,085 | ||||||||||||
Assets | 3,482,471 | 3,648,860 | [3] | 3,482,471 | 3,648,860 | [3] | ||||||||||
Fabrication Technology [Member] | ||||||||||||||||
Net sales | 1,985,237 | 2,294,878 | 2,103,161 | |||||||||||||
Segment Operating Income | 198,337 | 265,813 | 219,634 | |||||||||||||
Depreciation, amortization and impairment charges | 84,913 | 76,406 | 55,339 | |||||||||||||
Capital expenditures | 35,261 | 47,955 | 33,437 | |||||||||||||
Equity Method Investments | 42,106 | 45,411 | 42,106 | 45,411 | ||||||||||||
Assets | 3,157,078 | 3,470,426 | [3] | 3,157,078 | 3,470,426 | [3] | ||||||||||
Corporate and Other [Member] | ||||||||||||||||
Segment Operating Income | (46,984) | (52,379) | (48,448) | |||||||||||||
Depreciation, amortization and impairment charges | 1,172 | 1,555 | 1,127 | |||||||||||||
Capital expenditures | 313 | 3,945 | $ 50 | |||||||||||||
Assets | $ 93,370 | $ 92,231 | [3] | $ 93,370 | $ 92,231 | [3] | ||||||||||
[1] | The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. | |||||||||||||||
[2] | The following is a reconciliation of Income before income taxes to segment operating income: | |||||||||||||||
[3] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. The Company also retrospectively adjusted amounts recorded as of December 31, 2014 for the adoption of ASU 2015-03 and ASU 2015-17. See Note 3, “Recently Issued Accounting Pronouncements” for further discussion. |
Segment Information Net Sales b
Segment Information Net Sales by Major Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Net sales | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 1,206,356 | $ 1,164,453 | $ 1,199,336 | $ 1,054,331 | $ 3,967,053 | [1] | $ 4,624,476 | [1] | $ 4,207,209 | [1] |
Gas Handling [Member] | ||||||||||||||
Net sales | 1,449,115 | 1,676,180 | 1,440,731 | |||||||||||
Fluid Handling [Member] | ||||||||||||||
Net sales | 532,701 | 653,418 | 663,317 | |||||||||||
Welding and Cutting [Member] | ||||||||||||||
Net sales | $ 1,985,237 | $ 2,294,878 | $ 2,103,161 | |||||||||||
[1] | The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. |
Segment Information Net Sales a
Segment Information Net Sales and PPE by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Net sales | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 1,206,356 | $ 1,164,453 | $ 1,199,336 | $ 1,054,331 | $ 3,967,053 | [1] | $ 4,624,476 | [1] | $ 4,207,209 | [1] | ||
Property, plant and equipment, net | [2] | 644,536 | 727,435 | [3],[4] | 644,536 | 727,435 | [3],[4] | |||||||||
United States | ||||||||||||||||
Net sales | [1] | 1,124,883 | 1,097,864 | 836,636 | ||||||||||||
Property, plant and equipment, net | [2] | 179,194 | 177,957 | [3] | 179,194 | 177,957 | [3] | |||||||||
Czech Republic | ||||||||||||||||
Property, plant and equipment, net | [2] | 75,540 | 79,430 | [3] | 75,540 | 79,430 | [3] | |||||||||
China | ||||||||||||||||
Property, plant and equipment, net | [2] | 63,784 | 76,959 | [3] | 63,784 | 76,959 | [3] | |||||||||
Other Foreign Locations | ||||||||||||||||
Net sales | [1] | 2,842,170 | 3,526,612 | $ 3,370,573 | ||||||||||||
Property, plant and equipment, net | [2] | $ 326,018 | $ 393,089 | [3] | $ 326,018 | $ 393,089 | [3] | |||||||||
[1] | The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. | |||||||||||||||
[2] | As the Company does not allocate all long-lived assets, specifically intangible assets, to each individual country, evaluation of long-lived assets in total is impracticable. | |||||||||||||||
[3] | During the year ended December 31, 2015 the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. | |||||||||||||||
[4] | During the year ended December 31, 2015, the Company retrospectively adjusted provisional amounts with respect to an acquisition completed during the three months ended June 27, 2014 to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. See Note 4, “Acquisitions” for further discussion regarding these adjustments. |
Selected Quarterly Data - (Un96
Selected Quarterly Data - (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Net sales | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 1,206,356 | $ 1,164,453 | $ 1,199,336 | $ 1,054,331 | $ 3,967,053 | [1] | $ 4,624,476 | [1] | $ 4,207,209 | [1] | ||||
Gross profit | 333,425 | 295,874 | 328,037 | 294,438 | 391,847 | 373,195 | 388,171 | 325,632 | 1,251,774 | 1,478,845 | 1,306,222 | |||||||
Net income | 48,529 | [2] | 23,545 | 58,829 | 56,275 | 85,789 | [2] | 81,303 | 198,344 | [3] | 54,837 | 187,178 | 420,273 | 209,143 | ||||
Net income available to Colfax Corporation common shareholders | $ 44,197 | [2] | $ 18,359 | $ 53,127 | $ 52,056 | $ 80,134 | [2] | $ 73,389 | $ 191,785 | [3] | $ 24,877 | [4] | $ 167,739 | $ 370,185 | $ 158,232 | |||
Net income per share- basic | $ 0.36 | [2] | $ 0.15 | $ 0.43 | $ 0.42 | $ 0.65 | [2] | $ 0.59 | $ 1.55 | [3] | $ 0.22 | [4] | $ 1.35 | $ 3.06 | $ 1.56 | |||
Net income per share- diluted | $ 0.36 | [2] | $ 0.15 | $ 0.42 | $ 0.42 | $ 0.64 | [2] | $ 0.59 | $ 1.53 | [3] | $ 0.22 | [4] | $ 1.34 | $ 3.02 | $ 1.54 | |||
[1] | The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. | |||||||||||||||||
[2] | Net income and Net income per share for the three months ended December 31, 2015 and 2014, was favorably impacted by the enactment of the U.S. tax extenders packages related to the exemption from taxation of certain foreign income in the United States. | |||||||||||||||||
[3] | Net income and Net income per share for the three months ended June 27, 2014 includes the benefit of deferred tax assets as a result of the effect of the Victor Acquisition on expected future income. This reassessment resulted in a decrease in the Company’s valuation allowance against U.S. deferred tax assets. The reduction in the valuation allowance created a non-cash income tax benefit for the three months ended June 27, 2014 of $113.1 million. | |||||||||||||||||
[4] | On February 12, 2014 the Company entered into a Conversion Agreement with the BDT Investor. As consideration for the BDT Investor’s agreement to exercise its optional conversion right, the Company paid approximately $23.4 million to the BDT Investor, of which $19.6 million represents the Preferred stock conversion inducement payment. See Note 11, “Equity” for additional information regarding the Preferred stock conversion inducement payment. |
Selected Quarterly Data - (Un97
Selected Quarterly Data - (Unaudited) (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2014 | Mar. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information [Abstract] | |||||
Preferred Stock Conversions, Cash Payment Upon Conversion | $ 23,400 | $ 23,400 | |||
Preferred stock conversion inducement payment | $ 19,600 | $ 0 | $ 19,565 | $ 0 | |
Valuation Allowances and Reserves, Adjustments | $ 113,100 |
Schedule II - Valuation and Q98
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 27,256 | $ 31,282 | $ 16,464 | |
Charged to Cost and Expense | [1] | 16,225 | 2,950 | 12,707 |
Charged to Other Accounts | [2] | 0 | 0 | 0 |
Write-Offs Write Downs and Deductions | (526) | (4,100) | 0 | |
Acquisitions | [3] | 0 | 0 | 2,753 |
Foreign Currency Translation | (3,450) | (2,876) | (642) | |
Balance at the End of Period | 39,505 | 27,256 | 31,282 | |
Allowance For Excess Slow Moving And Obsolete Inventory [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 34,573 | 32,773 | 9,221 | |
Charged to Cost and Expense | [1] | 8,078 | 8,748 | 21,629 |
Charged to Other Accounts | [2] | 0 | 0 | 0 |
Write-Offs Write Downs and Deductions | 2,225 | (5,098) | (2,026) | |
Acquisitions | [3] | 0 | 0 | 4,207 |
Foreign Currency Translation | (4,298) | (1,850) | (258) | |
Balance at the End of Period | 36,128 | 34,573 | 32,773 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 159,252 | 360,910 | 357,638 | |
Charged to Cost and Expense | [1] | 11,461 | 11,933 | 30,554 |
Charged to Other Accounts | [2] | (3,862) | (65,999) | (27,233) |
Write-Offs Write Downs and Deductions | (2,845) | (146,177) | (3,373) | |
Acquisitions | [3] | 0 | 1,356 | 4,925 |
Foreign Currency Translation | (2,976) | (2,771) | (1,601) | |
Balance at the End of Period | $ 161,030 | $ 159,252 | $ 360,910 | |
[1] | Amounts charged to expense are net of recoveries for the respective period. | |||
[2] | Represents amount charge to Accumulated other comprehensive loss and, for the year ended December 31, 2014, includes reclassifications to deferred tax asset accounts. | |||
[3] | The valuation allowance for deferred tax assets during the year ended December 31, 2013 reflects the impact of retrospective adjustments recorded during the year ended December 31, 2014. The valuation allowance for deferred tax assets during the year ended December 31, 2014 reflects the impact of retrospective adjustments recorded during the year ended December 31, 2015. See Note 4, “Acquisitions” for further discussion. |