DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 02, 2017 | Jul. 01, 2016 | |
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 | 122,860,130 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,339 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Income Statement [Abstract] | |||||
Net sales | $ 3,647,047 | $ 3,967,053 | $ 4,624,476 | ||
Cost of sales | 2,501,396 | 2,715,279 | 3,145,631 | ||
Gross profit | 1,145,651 | 1,251,774 | 1,478,845 | ||
Selling, general and administrative expense | 825,240 | 905,952 | 1,011,171 | ||
Asbestos Coverage Adjustment | 8,226 | 0 | 0 | ||
Restructuring and other related charges | [1] | 74,170 | 61,177 | 58,121 | |
Operating income | 238,015 | 284,645 | 409,553 | ||
Interest expense | [1] | 30,016 | 47,743 | 51,305 | |
Income before income taxes | [1] | 207,999 | 236,902 | 358,248 | |
Provision for (benefit from) income taxes | 62,808 | 49,724 | (62,025) | ||
Net income | 145,191 | 187,178 | 420,273 | ||
Less: income attributable to noncontrolling interest, net of taxes | 17,080 | 19,439 | 28,175 | ||
Net income attributable to Colfax Corporation | 128,111 | 167,739 | 392,098 | ||
Dividends on preferred stock | 0 | 0 | 2,348 | ||
Preferred stock conversion inducement payment | 0 | 0 | 19,565 | ||
Net income available to Colfax Corporation common shareholders | $ 128,111 | $ 167,739 | $ 370,185 | ||
Net income per share - basic | $ 1.04 | $ 1.35 | $ 3.06 | ||
Net income per share - diluted | $ 1.04 | $ 1.34 | $ 3.02 | [2] | |
[1] | The following is a reconciliation of Income before income taxes to segment operating income: | ||||
[2] | For the period from January 1, 2014 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. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 145,191 | $ 187,178 | $ 420,273 |
Other comprehensive loss: | |||
Foreign currency translation, net of tax of $0, $751 and $1,885 | (330,488) | (317,909) | (356,243) |
Unrealized gain on hedging activities, net of tax of $(8,989), $19,349 and $4,141 | 17,692 | 11,659 | 30,404 |
Changes in unrecognized pension and other post-retirement benefit cost, net of tax of $9,247, $6,373 and $(20,117) | 4,810 | 29,323 | (89,920) |
Changes in deferred tax related to pension and other post-retirement benefit cost | 0 | 3,817 | 1,934 |
Amounts reclassified from Accumulated other comprehensive loss: | |||
Amortization of pension and other post-retirement net actuarial loss, net of tax of $3,049, $3,744 and $2,063 | 4,465 | 7,167 | 5,034 |
Amortization of pension and other post-retirement prior service cost, net of tax of $93, $115 and $0 | 155 | 133 | 248 |
Foreign currency translation adjustment resulting from Venezuela deconsolidation | 2,378 | 0 | 0 |
Other comprehensive loss | (300,988) | (265,810) | (408,543) |
Comprehensive (loss) income | (155,797) | (78,632) | 11,730 |
Less: comprehensive income (loss) attributable to noncontrolling interest | 17,722 | (3,347) | 15,781 |
Comprehensive loss attributable to Colfax Corporation | $ (173,519) | $ (75,285) | $ (4,051) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Parenthetical] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation, tax | $ 0 | $ 751 | $ 1,885 |
Unrealized gain on hedging activities, tax | (8,989) | 19,349 | 4,141 |
Changes in unrecognized pension and other post-retirement benefits cost, tax | 9,247 | 6,373 | (20,117) |
Amortization of pension and other post-retirement net actuarial loss, tax | 3,049 | 3,744 | 2,063 |
Amortization of pension and other post-retirement prior service cost, tax | $ 93 | $ 115 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 221,730 | $ 197,469 |
Trade receivables, less allowance for doubtful accounts of $41,511 and $39,505 | 913,614 | 888,166 |
Inventories, net | 403,857 | 420,386 |
Other current assets | 246,396 | 224,872 |
Total current assets | 1,785,597 | 1,730,893 |
Property, plant and equipment, net | 604,214 | 644,536 |
Goodwill | 2,563,326 | 2,817,687 |
Intangible assets, net | 899,340 | 995,712 |
Other assets | 532,982 | 544,091 |
Total assets | 6,385,459 | 6,732,919 |
LIABILITIES AND EQUITY | ||
Current portion of long-term debt | 5,406 | 5,792 |
Accounts payable | 605,895 | 569,445 |
Customer advances and billings in excess of costs incurred | 151,015 | 195,038 |
Accrued liabilities | 344,358 | 346,069 |
Total current liabilities | 1,106,674 | 1,116,344 |
Long-term debt, less current portion | 1,286,738 | 1,411,755 |
Other liabilities | 898,703 | 948,264 |
Total liabilities | 3,292,115 | 3,476,363 |
Equity: | ||
Common stock, $0.001 par value; 400,000,000 shares authorized; 122,780,261 and 123,486,425 issued and outstanding | 123 | 123 |
Additional paid-in capital | 3,199,682 | 3,199,267 |
Retained earnings | 685,411 | 557,300 |
Accumulated other comprehensive loss | (988,345) | (686,715) |
Total Colfax Corporation equity | 2,896,871 | 3,069,975 |
Noncontrolling interest | 196,473 | 186,581 |
Total equity | 3,093,344 | 3,256,556 |
Total liabilities and equity | $ 6,385,459 | $ 6,732,919 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Consolidated Balance Sheet (Parenthetical) [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 41,511 | $ 39,505 |
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 | 122,780,261 | 123,486,425 |
Common Stock, Shares, Outstanding | 122,780,261 | 123,486,425 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2013 | $ 2,741,123 | $ 102 | $ 14 | $ 2,541,005 | $ 19,376 | $ (46,600) | $ 227,226 |
Shares, Outstanding at Dec. 31, 2013 | 101,921,613 | 13,877,552 | |||||
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 (loss) income | $ (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 (loss) income | $ (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 |
Net income attributable to Colfax Corporation | 128,111 | 128,111 | |||||
Net income attributable to noncontrolling interest | 17,080 | 17,080 | |||||
Net income | 145,191 | ||||||
Distributions to noncontrolling owners | (7,830) | (7,830) | |||||
Preferred Stock Conversions, Inducements | 0 | ||||||
Other comprehensive (loss) income | $ (300,988) | (301,630) | 642 | ||||
Stock repurchase, Shares | (1,000,000) | (1,000,000) | |||||
Stock repurchase, Value | $ (20,812) | $ (1) | (20,811) | ||||
Common stock-based award activity (in shares) | 293,836 | 293,836 | |||||
Common stock-based award activity | $ 21,227 | $ 1 | 21,226 | ||||
Shares, Outstanding at Dec. 31, 2016 | 122,780,261 | 0 | |||||
Balance at Dec. 31, 2016 | $ 3,093,344 | $ 123 | $ 0 | $ 3,199,682 | $ 685,411 | $ (988,345) | $ 196,473 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY Consolidated Statements of Equity [Parenthetical] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Issuance Costs | $ 22.1 | ||
Common Stock [Member] | |||
Equity Issuance Costs | 22.1 | ||
Accumulated Other Comprehensive Loss [Member] | |||
Other comprehensive income, tax | $ 3.4 | $ 26.2 | (13.8) |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 145,191 | $ 187,178 | $ 420,273 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and impairment charges | 143,258 | 154,542 | 174,724 |
Stock-based compensation expense | 19,020 | 16,321 | 17,580 |
Non-cash interest expense | 4,176 | 10,101 | 9,094 |
Deferred income tax benefit | (1,682) | (22,717) | (139,488) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables, net | (50,958) | 64,048 | (19,916) |
Inventories, net | 19,665 | (390) | 57,847 |
Accounts payable | 52,308 | 2,548 | (26,038) |
Customer advances and billing in excess of costs incurred | (37,210) | (21,094) | (9,754) |
Changes in other operating assets and liabilities | (46,794) | (86,724) | (98,564) |
Net cash provided by operating activities | 246,974 | 303,813 | 385,758 |
Cash flows from investing activities: | |||
Purchases of Fixed Assets | (63,251) | (69,877) | (84,458) |
Acquisitions, net of cash received | (25,992) | (196,007) | (948,800) |
Other, net | 7,249 | 18,927 | 3,115 |
Net cash used in investing activities | (81,994) | (246,957) | (1,030,143) |
Cash flows from financing activities: | |||
Borrowings under term credit facility | 0 | 750,000 | 150,000 |
Payments under term credit facility | (37,500) | (1,232,872) | (15,542) |
Proceeds from borrowings on revolving credit facilities and other | 896,742 | 1,498,039 | 1,370,626 |
Repayments of borrowings on revolving credit facilities and other | (978,024) | (1,104,055) | (1,414,146) |
Proceeds from issuance of common stock, net | 2,206 | 6,052 | 613,927 |
Repurchase of Common Stock | (20,812) | (27,367) | 0 |
Acquisition of shares held by noncontrolling interest | 0 | 0 | (10,338) |
Preferred stock conversion inducement payment | 0 | 0 | (19,565) |
Payments of dividend on preferred stock | 0 | 0 | (3,853) |
Other | (7,830) | (21,066) | (21,060) |
Net cash (used in) provided by financing activities | (145,218) | (131,269) | 650,049 |
Effect of foreign exchange rates on Cash and cash equivalents | 4,499 | (33,566) | (11,517) |
Increase (decrease) in Cash and cash equivalents | 24,261 | (107,979) | (5,853) |
Cash and cash equivalents, beginning of period | 197,469 | 305,448 | 311,301 |
Cash and cash equivalents, end of period | 221,730 | 197,469 | 305,448 |
Interest Payments | 35,838 | 36,363 | 42,041 |
Income tax payments, net | $ 77,104 | $ 79,540 | $ 82,694 |
General
General | 12 Months Ended |
Dec. 31, 2016 | |
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 through the Howden, ESAB and Colfax Fluid Handling businesses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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. During the year ended December 31, 2016, the Company determined that an other-than-temporary lack of exchangeability between the Venezuelan bolivar and U.S. dollar, due to government controls, has restricted the Company’s Venezuelan operations ability to pay dividends and satisfy other obligations denominated in U.S. dollars. In addition, other government-imposed restrictions affecting labor, production, and distribution are prohibiting the Company from controlling key operating decisions. These circumstances have caused the Company to no longer meet the accounting criteria of control in order to continue consolidating its Venezuelan operations. Therefore, the Company deconsolidated the financial statements of its Venezuelan operations as of September 30, 2016. As a result of the deconsolidation, the Company recorded a charge of $2.4 million in Selling, general and administrative expense for the year ended December 31, 2016, substantially all of which related to accumulated foreign currency translation charges previously included in Accumulated other comprehensive loss. Due to loss of control, the Company has applied the cost method of accounting for its Venezuelan operations beginning on September 30, 2016. Prior to, and at the date of deconsolidation, the Company’s Venezuelan operations represented less than 1% of the Company’s net assets, revenues and operating income. 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 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 Customer advances and billings in excess of costs incurred in the Consolidated Balance Sheets. The Company recognizes revenue and cost of sales on air and 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 Customer advances and billings in excess of costs incurred. As of December 31, 2016 , there were $174.9 million of revenues in excess of billings and $108.2 million of billings in excess of revenues on long-term contracts in the Consolidated Balance Sheet. 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. 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 $41.9 million , $41.5 million and $43.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, are expensed as incurred and are included in Selling, general and administrative expense in the Consolidated Statements of Income. Interest Expense, Net Interest expense, net includes interest income of $7.2 million , $7.0 million and $6.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, primarily associated with interest bearing deposits in certain foreign subsidiaries. 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. 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 air and 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 carrying 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 elect to forgo 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. Generally, 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. During the year ended December 31, 2016 , the Company’s air and gas handling business reorganized its structure to create further synergies across the business by introducing joint product and market objectives, improve speed to market for new products and ensure the business’s cost structure is appropriately directed. The assessment of the Company’s air and gas handling reporting units based on the updated business structure concluded there is one Air and Gas Handling reporting unit as compared to two reporting units previously. The Company has experienced a concurrent decline in numerous end-markets and geographic markets that has impacted both of the Company’s reportable segments. This decline has had a negative impact on the levels of capital invested and maintenance expenditures by certain of our customers which in turn has reduced the demand for our products and services, affecting operating results. Given the above, and the length of time since performing a quantitative analysis of Goodwill for certain of the reporting units, the Company elected not to perform qualitative assessments of Goodwill and instead, proceeded directly to performing the first step of the two-step quantitative Goodwill impairment test for its 2016 annual impairment test. The quantitative impairment assessment of Goodwill for each of the Fabrication Technology, Air and Gas Handling and Fluid Handling reporting units, based on the methodologies identified above, resulted in calculated fair values that exceeded the carrying values of each of the reporting units. The annual Goodwill impairment analyses performed as of October 1, 2016 , September 26, 2015 and September 27, 2014 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 its 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 year ended December 31, 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. In addition, during the year ended December 31, 2014, an analysis was performed on a trade name related to a specific operation within the gas and fluid handling segment prior to the annual impairment analysis due to the decision to substantially reduce its operations. The analysis determined the 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 2014. During the annual impairment analysis for the year ended December 31, 2016, quantitative analyses were performed for two specific trade names in the fabrication technology segment due to a decline in revenues resulting primarily from cyclical economic conditions in the North American welding market. In one case, the analysis determined the fair value was marginally greater than its $42 million carrying value. The analysis for the other trade name determined the fair value was approximately equal to its carrying value of $11.3 million . The analyses performed as of October 1, 2016 , September 26, 2015 and September 27, 2014 resulted in no impairment charges. 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 years ended December 31, 2016 and 2015, analyses were performed to evaluate certain long-lived intangible assets related to specific operations within the gas and fluid handling segment due to declines in projected cash flows associated with the asset groups. The analyses determined the customer relationship finite-lived intangible assets were impaired. The impairment amounts were calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the assets and their carrying values as of the measurement dates. The $1.4 million and $1.7 million impairment losses were included in Selling, general and administrative expense in the Consolidated Statements of Income for the years ended December 31, 2016 and 2015, respectively. Subsequent to the impairments, the fair values of the assets were $14.8 million and $0.8 million , which are included in Level Three of the fair value hierarchy. In addition, analyses were performed during the year ended December 31, 2014 to evaluate certain long-lived intangible assets related to two specific operations within the gas and fluid handling segment due to projected cash flow declines. The analysis determined certain long-lived intangible assets, primarily consisting of acquired customer relationships and acquired technology, were either impaired or no longer recoverable based upon projected undiscounted net cash flows. The impairment was calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the asset or asset group and the respective 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 total fair value of these assets of $3.3 million as of December 31, 2014 is included in Level Three of the fair value hierarchy and is not material to the Consolidated Financial Statements. The Company recorded asset impairment losses related to facility closures totaling $4.5 million , $9.3 million and $4.6 million during the years ended December 31, 2016 , 2015 and 2014 , 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 $2.7 million , $21.1 million and $15.1 million for the years ended December 31, 2016 , 2015 and 2014 , 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 DB Credit Agreement (as defined and further discussed in Note 10, “Debt”) includes debt denominated in the Euro of €218.5 million as of December 31, 2016 , 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 Balance Sheets, consisted of the following: Year Ended December 31, 2016 2015 (In thousands) Warranty liability, beginning of period $ 37,407 $ 51,135 Accrued warranty expense 19,674 21,092 Changes in estimates related to pre-existing warranties 4,752 (1,820 ) Cost of warranty service work performed (30,005 ) (29,342 ) Acquisitions 304 321 Foreign exchange translation effect (411 ) (3,979 ) Warranty liability, end of period $ 31,721 $ 37,407 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. During the year ended December 31, 2016 , the Company recognized net foreign currency transaction gains of $2.4 million and $3.5 million in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income. 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 , net foreign currency transaction losses of $5.1 million and $5.5 million were recognized in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income. 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 $5.9 million and $8.1 million , respectively, were included in the Consolidated Balance Sheets as of December 31, 2016 and 2015 , which includes $15.6 million and $13.4 million , respectively, of accumulated amortization. As of December 31, 2016 , $5.3 million and $0.6 million of deferred issuance costs were included in Other assets and as a reduction of Long-term debt, respectively. 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. During the years ended December 31, 2015 and 2014 , the Company deferred $3.4 million and $0.3 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, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [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)”. The ASU outlines a single set of comprehensive principles for recognizing revenue under U.S. GAAP and supersedes existing revenue recognition guidance. The main principle of the ASU is that revenue should be recognized 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. The Company expects to apply ASU No. 2014-09 and its related updates on a full retrospective basis as of January 1, 2018. Based on company-wide analysis performed to date on the Company’s different revenue streams, we expect the adoption of the ASU will primarily impact timing of revenue recognition on specific types of customer orders. At this point, nothing has come to the Company’s attention that would indicate the adoption of the ASU will have a material impact on its Consolidated Financial Statements. However, the Company will continue its assessment in 2017. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330) - Simplifying the Measurement of Inventory”. The ASU 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. The Company will adopt ASU No. 2015-11 in the annual period beginning January 1, 2017 on a prospective basis and does not expect it to have a material impact on the Company’s Consolidated Financial Statements. During the year ended December 31, 2016 , the Company adopted ASU No. 2015-16, “Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments” which requires, among other things, an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The prospective application of the ASU did not have a material impact on the Company’s Consolidated Financial Statements. See Note 4, “Acquisitions” for measurement period adjustments made during the year ended December 31, 2016 , related to acquisitions that occurred in the prior year. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. The ASU requires, among other things, a lessee to recognize assets and liabilities associated with the rights and obligations attributable to most leases but also recognize expenses similar to current lease accounting. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new guidance must be adopted using a modified retrospective transition and provides for certain practical expedients. The Company is currently evaluating the timing of adoption as well as the impact of adopting the ASU on its Consolidated Financial Statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718)”. The ASU, among other things, aims to simplify the accounting for shared-based payment accounting by recording all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement and eliminates the requirement that excess tax benefits be realized before they can be recognized. The effect for excess tax benefits not previously recognized will be recorded as a cumulative adjustment to retained earnings pursuant to a modified retrospective adoption method. Excess tax benefits and deficiencies will be accounted for as discrete items in the period the stock awards vest or otherwise are settled. Further, the guidance will require that excess tax benefits be presented as an operating activity on the statement of cash flows consistent with other income tax cash flows. The Company will adopt the ASU in the annual period beginning January 1, 2017 and continue its policy to estimate the amount of awards that are expected to vest. The adoption of ASU 2016-09 will not have a material impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The ASU is effective for fiscal periods beginning after December 15, 2019 and early adoption is permitted. The ASU eliminates the probable initial recognition threshold under current U.S. GAAP and broadens the information an entity must consider when developing its expected credit loss estimates to include forward-looking information. The Company is currently evaluating the impact of adopting ASU No. 2016-13 on its Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 203)”. The ASU addresses eight specific cash flow issues and clarifies their presentation and classification in the Statement of Cash Flows. The ASU is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively with early adoption permitted. The Company is currently evaluating the impact of adopting ASU No. 2016-15 on its Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350)”. The ASU modifies the measurement of a goodwill impairment loss from the portion of the carrying amount of goodwill that exceeds its implied fair value to the excess of the carrying amount of a reporting unit that exceeds its fair value. This eliminates step 2 of the goodwill impairment test under current guidance. The ASU will be applied prospectively for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. The Company is currently evaluating the timing of adoption. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions The following acquisitions were accounted for using the acquisition method of accounting, and accordingly, the Consolidated Financial Statements include the financial position and results of operations from the respective date of acquisition: Gas and Fluid Handling During year ended December 31, 2015 , the Company completed two acquisitions in our Gas and Fluid Handling segment for an aggregate purchase price of approximately $196 million . The acquisitions expand our portfolio of gas compression products and enhance our fan product offering with ventilation control software. During the year ended December 31, 2016 , the Company adjusted provisional amounts with respect to the acquisitions 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, primarily attributable to the Company’s valuation of inventory and revision of estimates based on additional information obtained for a specific environmental reserve, increased the Goodwill balance by $1.3 million during the year ended December 31, 2016 . Fabrication Technology On December 21, 2016 , the Company completed an acquisition that expands its automation product portfolio for net cash consideration of approximately $26 million , subject to certain purchase price adjustments. 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. The Company incurred advisory, legal, valuation and other professional service fees of $2.7 million in each of the years ended December 31, 2015 and December 31, 2014 , in connection with completed acquisitions which are included in Selling, general and administrative expense in the Consolidated Statements of Income. The corresponding fees incurred in connection with the completed acquisition during the year ended December 31, 2016 , were not material. During the years ended December 31, 2016 , 2015 , and 2014 , the Company’s Consolidated Statements of Income included $1.3 million , $47.9 million , and $347.3 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 attributable to Colfax Corporation common shareholders associated with acquisitions consummated during the years ended December 31, 2016 and 2015 was not material. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (In thousands, except share data) Computation of Net income per share - basic: Net income attributable to Colfax Corporation common shareholders $ 128,111 $ 167,739 $ 370,185 Weighted-average shares of Common stock outstanding - basic 122,911,581 124,101,033 121,143,790 Net income per share - basic $ 1.04 $ 1.35 $ 3.06 Computation of Net income per share - diluted (1) : Net income attributable to Colfax Corporation common shareholders $ 128,111 $ 167,739 $ 370,185 Weighted-average shares of Common stock outstanding - basic 122,911,581 124,101,033 121,143,790 Net effect of potentially dilutive securities - stock options and restricted stock units 287,145 768,616 1,522,502 Weighted-average shares of Common stock outstanding - diluted 123,198,726 124,869,649 122,666,292 Net income per share - diluted $ 1.04 $ 1.34 $ 3.02 (1) For the period from January 1, 2014 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. 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 the period from January 1, 2014 to February 12, 2014, the Company’s Net income per share - diluted was computed using the “if-converted” method. Under the “if-converted” method, Net income per share - diluted 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 year ended December 31, 2014, the weighted-average computation of the dilutive effect of potentially issuable shares of Common stock excluded 1.4 million 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, 2016 , 2015 and 2014 excludes approximately 4.5 million , 3.0 million and 0.8 million outstanding stock-based compensation awards, respectively, as their inclusion would be anti-dilutive. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (In thousands) Income (loss) before income taxes: Domestic operations $ (20,795 ) $ (16,487 ) $ 53,153 Foreign operations 228,794 253,389 305,095 $ 207,999 $ 236,902 $ 358,248 Provision for (benefit from) income taxes: Current: Federal $ 623 $ 465 $ 798 State (490 ) 1,076 2,047 Foreign 64,357 70,900 74,618 $ 64,490 $ 72,441 $ 77,463 Deferred: Domestic operations $ 3,723 $ (1,231 ) $ (127,114 ) Foreign operations (5,405 ) (21,486 ) (12,374 ) (1,682 ) (22,717 ) (139,488 ) $ 62,808 $ 49,724 $ (62,025 ) 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, 2016 2015 2014 (In thousands) Taxes calculated at the U.S. federal statutory rate $ 72,800 $ 82,940 $ 125,386 State taxes 496 768 2,323 Effect of tax rates on international operations (25,813 ) (34,513 ) (34,619 ) Change in enacted international tax rates (2,434 ) (4,415 ) (149 ) Changes in valuation allowance and tax reserves 10,587 1,784 (156,071 ) Other 7,172 3,160 1,105 Provision for (benefit from) income taxes $ 62,808 $ 49,724 $ (62,025 ) 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. 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, are as follows: December 31, 2016 2015 (In thousands) Deferred tax assets: Post-retirement benefit obligation $ 66,911 $ 75,045 Expenses currently not deductible 105,780 109,283 Net operating loss carryforward 211,205 211,627 Tax credit carryforward 10,882 10,343 Depreciation and amortization 7,879 7,533 Other 14,957 25,379 Valuation allowance (153,740 ) (161,030 ) Deferred tax assets, net $ 263,874 $ 278,180 Deferred tax liabilities: Depreciation and amortization $ (292,906 ) $ (317,464 ) Post-retirement benefit obligation (14,990 ) (13,581 ) Inventory (18,309 ) (17,122 ) Other (178,166 ) (174,367 ) Total deferred tax liabilities $ (504,371 ) $ (522,534 ) Total deferred tax liabilities, net $ (240,497 ) $ (244,354 ) 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, 2016 , the valuation allowance decreased from $161.0 million to $153.7 million with a net increase of $6.2 million recognized in Provision for (benefit from) income taxes , a decrease of $1.8 million recognized in Other comprehensive loss and a $11.7 million decrease related to changes in foreign currency rates. 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 $326.9 million expiring in years 2021 through 2033, and alternative minimum tax credits of $9.0 million that may be carried forward indefinitely. Tax credit carryforwards include U.S. minimum tax credits. 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, 2016 , 2015 and 2014 , 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, 2016 is approximately $1.6 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, 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 (1) (23,616 ) Other, including the impact of foreign currency translation (5,879 ) Balance, December 31, 2015 52,878 Addition for tax positions taken in prior periods 6,552 Addition for tax positions taken in the current period 1,418 Reduction for tax positions taken in prior periods (1) (2,248 ) Other, including the impact of foreign currency translation 608 Balance, December 31, 2016 $ 59,208 (1) Includes reductions for lapses in statute of limitations. 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, the Netherlands, Mexico, Brazil and various U.S. states. The Company files numerous group and separate tax returns in U.S. federal and state jurisdictions, as well as international jurisdictions. In the U.S., tax years dating back to 2003 remain subject to examination, 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 2010. The Company’s total unrecognized tax benefits were $59.2 million and $52.9 million as of December 31, 2016 and 2015 , respectively, inclusive of $8.6 million and $6.4 million , respectively, of interest and penalties. These amounts were offset by tax benefits of $0.1 million as of both December 31, 2016 and 2015 . The net liabilities for uncertain tax positions as of December 31, 2016 and 2015 were $59.1 million and $52.8 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 $2.7 million , $1.8 million and $2.5 million for the years ended December 31, 2016 , 2015 and 2014 , 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 $3.4 million . |
Goodwill & Intangibles
Goodwill & Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : Gas and Fluid Handling Fabrication Technology Total (In thousands) Balance, January 1, 2015 $ 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 Goodwill attributable to acquisitions (1) 1,317 15,242 16,559 Impact of foreign currency translation and other (161,710 ) (109,210 ) (270,920 ) Balance, December 31, 2016 $ 1,265,873 $ 1,297,453 $ 2,563,326 (1) Includes purchase accounting adjustments associated with the two gas and fluid handling acquisitions completed during the year ended December 31, 2015 , pursuant to ASU No. 2015-16. See Note 4, “Acquisitions” for further discussion. The following table summarizes the Company’s Intangible assets, excluding Goodwill: December 31, 2016 2015 Gross Accumulated Gross Accumulated (In thousands) Trade names – indefinite life $ 364,113 $ — $ 395,319 $ — Acquired customer relationships 567,351 (156,241 ) 573,589 (117,573 ) Acquired technology 147,672 (49,003 ) 149,578 (37,012 ) Acquired backlog — — 2,575 (2,220 ) Other intangible assets 48,355 (22,907 ) 48,413 (16,957 ) $ 1,127,491 $ (228,151 ) $ 1,169,474 $ (173,762 ) Amortization expense related to intangible assets was included in the Consolidated Statements of Income as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Selling, general and administrative expense $ 60,620 $ 60,629 $ 67,052 See Note 2, “Summary of Significant Accounting Policies” for discussion regarding impairment of Intangible assets. As of December 31, 2016 , total amortization expense for intangible assets is expected to be $56.2 million , $53.6 million , $49.1 million , $46.5 million and $44.2 million for the years ending December 31, 2017 , 2018 , 2019 , 2020 and 2021 , respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment, Net December 31, Depreciable Life 2016 2015 (In years) (In thousands) Land n/a $ 42,779 $ 44,746 Buildings and improvements 5-40 323,279 327,122 Machinery and equipment 3-15 540,617 546,052 Software 3-5 95,928 95,556 1,002,603 1,013,476 Accumulated depreciation (398,389 ) (368,940 ) Property, plant and equipment, net $ 604,214 $ 644,536 Depreciation expense, including the amortization of assets recorded under capital leases, for the years ended December 31, 2016 , 2015 and 2014 , was $79.2 million , $90.7 million and $94.5 million , respectively. Depreciation expense for the years ended December 31, 2016 , 2015 , and 2014 includes $4.5 million , $9.3 million and $4.6 million of non-cash impairment of fixed assets, respectively. These amounts also include depreciation expense related to software for the years ended December 31, 2016 , 2015 and 2014 of $13.5 million , $14.3 million and $15.7 million , respectively. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Inventories, Net Inventories, net consisted of the following: December 31, 2016 2015 (In thousands) Raw materials $ 148,513 $ 160,640 Work in process 75,331 68,541 Finished goods 237,507 243,209 461,351 472,390 Less: customer progress payments (14,624 ) (15,876 ) Less: allowance for excess, slow-moving and obsolete inventory (42,870 ) (36,128 ) Inventories, net $ 403,857 $ 420,386 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Long-term debt consisted of the following: December 31, 2016 2015 (In thousands) Term loans $ 678,286 $ 713,175 Trade receivables financing arrangement 63,399 75,800 Revolving credit facilities and other 550,459 628,572 Total Debt 1,292,144 1,417,547 Less: current portion (5,406 ) (5,792 ) Long-term debt $ 1,286,738 $ 1,411,755 On June 5, 2015, the Company entered into a credit agreement (the “DB 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 DB Credit Agreement were used by the Company to repay in full balances under its preexisting credit agreement, as well as for working capital and general corporate purposes. The DB Credit Agreement consists of a term loan in the aggregate amount of $750.0 million (the “Term Loan”) and a revolving credit facility (the “Revolver”) with a commitment capacity of $1.3 billion , each of which had an initial maturity term of five years. The Revolver contains a $50.0 million swing line loan sub-facility. The Term Loan and the Revolver bear interest, at the election of the Company, at either the base rate (as defined in the DB Credit Agreement) or the Eurocurrency rate (as defined in the DB Credit Agreement), in each case, plus the applicable interest rate margin. The applicable interest rate margin is 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 DB Credit Agreement, based upon the currency borrowed. In conjunction with the DB 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 DB Credit Agreement. The Company had an original issue discount of $5.6 million and deferred financing fees of $5.9 million included in its Consolidated Balance Sheet as of December 31, 2016 , which will be accreted to Interest expense primarily using the effective interest method, over the life of the DB Credit Agreement. As of December 31, 2016 , the weighted-average interest rate of borrowings under the DB Credit Agreement was 2.11% , excluding accretion of original issue discount and amortization of deferred financing fees, and there was $859.5 million available on the revolving credit facility. In addition to the DB Credit Agreement, the Company is party to various bilateral credit facilities with a borrowing capacity of $263.4 million . As of December 31, 2016 , outstanding borrowings under these facilities total $97.5 million , with a weighted average borrowing rate of 1.40% . The Company is also party to letter of credit facilities with an aggregate capacity of $758.4 million . Total letters of credit of $374.5 million were outstanding as of December 31, 2016 . The Company is party to a receivables financing facility through 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, which is $80 million as of December 31, 2016. As of December 31, 2016 , the total outstanding borrowings under the receivables financing facility were $63.4 million and the interest rate was 1.61% . The scheduled termination date for the receivables financing facility, currently December 19, 2017 , 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, 2016 are as follows (1) : (In thousands) 2017 $ 5,406 2018 4,676 2019 2,447 2020 1,285,704 Total contractual maturities 1,298,233 Debt discount (6,089 ) Total debt $ 1,292,144 (1) Represents scheduled payments required under the DB Credit Agreement through June 5, 2020, as well as the contractual maturities of other debt outstanding as of December 31, 2016 , and reflects management’s intention to repay scheduled maturities of the term loans outstanding under the DB Credit Agreement and the trade receivables financing arrangement (if not extended) with proceeds from the revolving credit facility. Certain U.S. subsidiaries of the Company have agreed to guarantee the obligations of the Company under the DB Credit Agreement. The DB 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 DB 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 DB Credit Agreement contains various events of default (including failure to comply with the covenants under the DB 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, 2016, the Company is in compliance with the covenants under the DB Credit Agreement. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | Equity Common and Preferred Stock During the years ended December 31, 2016 , 2015 and 2014 , 293,836 , 676,126 and 252,674 shares of Common stock, respectively, were issued in connection with stock option exercises and employee share-based payment arrangements that vested during the year. 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 and 183,000 shares of newly issued Colfax Common stock to its U.S. defined benefit pension plan on May 21, 2015 and January 15, 2014, respectively. No contributions of Colfax Common stock were made during the year ended December 31, 2016 . 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 were to be retired upon repurchase. The repurchase program was authorized until December 31, 2016 and did not obligate the Company to acquire any specific number of shares. The timing and amount of shares repurchased was determined by management based on its evaluation of market conditions and other factors. The repurchase program was conducted pursuant to SEC Rule 10b-18. During the years ended December 31, 2016 and 2015, the Company repurchased 1,000,000 shares and 986,279 shares, respectively, of its Common stock in open market transactions for approximately $20.8 million and $27.4 million , respectively. The repurchase program expired as of December 31, 2016. 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, 2016 , 2015 and 2014 . 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 (Loss) Gain On Hedging Activities Total (In thousands) Balance at January 1, 2014 $ (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 (1) 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 (1) 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 ) Other comprehensive income (loss) before reclassifications: Net actuarial gain 4,815 — — 4,815 Foreign currency translation adjustment 2,620 (312,017 ) 722 (308,675 ) Loss on long-term intra-entity foreign currency transactions — (22,530 ) — (22,530 ) Gain on net investment hedges — — 18,537 18,537 Unrealized loss on cash flow hedges — — (789 ) (789 ) Other comprehensive income (loss) before reclassifications 7,435 (334,547 ) 18,470 (308,642 ) Amounts reclassified from Accumulated other comprehensive loss (1)(2) 4,634 2,378 — 7,012 Net current period Other comprehensive income (loss) 12,069 (332,169 ) 18,470 (301,630 ) Balance at December 31, 2016 $ (181,189 ) $ (860,789 ) $ 53,633 $ (988,345 ) (1) Included in the computation of net periodic benefit cost. See Note 13, “Defined Benefit Plans” for additional details. (2) Foreign currency translation adjustment reclassification is the result of deconsolidation of the Company’s Venezuelan operations during the year ended December 31, 2016. See Note 2, “Summary of Significant Accounting Policies” for further discussion. During the year ended December 31, 2016 , Noncontrolling interest increased by $0.6 million as a result of Other comprehensive income, primarily due to foreign currency translation adjustment. During the years ended December 31, 2015 and 2014 , Noncontrolling interest decreased by $22.8 million and $12.4 million , respectively, as a result of Other comprehensive loss, primarily due to foreign currency translation adjustment. Share-Based Payments On May 13, 2016, the Company adopted the Colfax Corporation 2016 Omnibus Incentive Plan (the “2016 Plan”) which replaced the Colfax Corporation 2008 Omnibus Incentive Plan dated April 21, 2008, as amended and restated on April 2, 2012. The 2016 Plan provides the Compensation Committee of the Company’s Board of Directors discretion in creating employee equity incentives. Awards under the 2016 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, 2016 2015 2014 (In thousands) Stock-based compensation expense $ 19,020 $ 16,321 $ 17,580 Deferred tax benefit 6,271 5,342 4,054 As of December 31, 2016 , the Company had $45.9 million of unrecognized compensation expense related to stock-based awards that will be recognized over a weighted-average period of approximately 1.4 years . The intrinsic value of awards exercised or issued upon vesting was $6.5 million , $21.8 million and $13.3 million during the years ended December 31, 2016 , 2015 and 2014 , respectively. Stock Options Under the 2016 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, 2016 2015 2014 Expected period that options will be outstanding (in years) 4.95 5.02 4.87 Interest rate (based on U.S. Treasury yields at the time of grant) 1.41 % 1.62 % 1.62 % Volatility 42.50 % 28.75 % 34.67 % Dividend yield — — — Weighted-average fair value of options granted $ 9.47 $ 11.87 $ 22.65 During the year ended December 31, 2016, expected volatility was estimated based on the historical volatility of the Company’s stock price and during the years ended December 31, 2015 and 2014, expected volatility was 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, 2016 4,261,590 $ 41.07 Granted 1,332,729 24.60 Exercised (119,722 ) 18.43 Forfeited (184,337 ) 46.83 Expired (962,433 ) 36.09 Outstanding at December 31, 2016 4,327,827 $ 37.49 5.01 $ 23,782 Vested or expected to vest at December 31, 2016 4,278,204 $ 37.51 5.00 $ 23,444 Exercisable at December 31, 2016 1,219,274 $ 39.85 3.52 $ 6,139 (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 2016 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 as determined at the time of grant. Under the 2016 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, 2016, 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, 2016 523,011 $ 40.19 413,521 $ 44.20 Granted 202,862 24.30 310,826 25.57 Vested (96,794 ) 32.56 (79,140 ) 45.62 Forfeited (1,763 ) 33.35 (61,309 ) 39.87 Nonvested at December 31, 2016 627,316 $ 36.25 583,898 $ 34.54 The fair value of shares vested during the years ended December 31, 2016 , 2015 and 2014 was $6.5 million , $8.9 million and $6.4 million , respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities Disclosure [Text Block] | Accrued Liabilities Accrued liabilities in the Consolidated Balance Sheets consisted of the following: December 31, 2016 2015 (In thousands) Accrued payroll $ 102,960 $ 99,383 Accrued taxes 38,367 51,834 Accrued asbestos-related liability 51,166 48,780 Warranty liability - current portion 30,710 36,128 Accrued restructuring liability - current portion 13,184 12,918 Accrued third-party commissions 8,697 10,275 Other 99,274 86,751 Accrued liabilities $ 344,358 $ 346,069 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, 2016 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) $ 3,979 $ 24,123 $ (21,126 ) $ (200 ) $ 6,776 Facility closure costs (2) 2,657 12,414 (13,218 ) (139 ) 1,714 6,636 36,537 (34,344 ) (339 ) 8,490 Non-cash charges 5,945 42,482 Fabrication Technology: Termination benefits (1) 6,031 23,104 (25,263 ) (160 ) 3,712 Facility closure costs (2) 426 7,261 (6,611 ) (95 ) 981 6,457 30,365 (31,874 ) (255 ) 4,693 Non-cash charges 1,323 31,688 Corporate and Other: Facility closure costs (2) 625 — (344 ) (78 ) 203 625 — (344 ) (78 ) 203 $ 13,718 66,902 $ (66,562 ) $ (672 ) $ 13,386 Non-cash charges 7,268 $ 74,170 (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, 2016 , $13.2 million and $0.2 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. 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 charges 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 charges 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 charges 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. The Company expects to incur Restructuring and other related charges of approximately $45 million during the year ending December 31, 2017 related to its restructuring activities. |
Defined Benefit Plans Defined B
Defined Benefit Plans Defined Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2016 2015 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,550,643 $ 1,765,493 $ 33,093 $ 35,085 Acquisitions — 31,914 — 4,983 Service cost 4,059 4,612 39 33 Interest cost 51,638 54,807 1,038 1,170 Actuarial loss (gain) 126,505 (93,878 ) (5,689 ) (6,410 ) Foreign exchange effect (158,453 ) (77,854 ) — — Benefits paid (97,488 ) (105,589 ) (2,186 ) (1,942 ) Settlements (1,591 ) (29,811 ) — — Other (37 ) 949 — 174 Projected benefit obligation, end of year $ 1,475,276 $ 1,550,643 $ 26,295 $ 33,093 Accumulated benefit obligation, end of year $ 1,452,000 $ 1,530,327 $ 26,295 $ 33,093 Change in plan assets: Fair value of plan assets, beginning of year $ 1,337,405 $ 1,469,103 $ — $ — Acquisitions — 28,591 — — Actual return on plan assets 191,562 (9,390 ) — — Employer contribution (1) 32,347 45,594 2,186 1,942 Foreign exchange effect (164,316 ) (63,060 ) — — Benefits paid (97,488 ) (105,589 ) (2,186 ) (1,942 ) Settlements (1,591 ) (28,399 ) — — Other (19 ) 555 — — Fair value of plan assets, end of year $ 1,297,900 $ 1,337,405 $ — $ — Funded status, end of year $ (177,376 ) $ (213,238 ) $ (26,295 ) $ (33,093 ) Amounts recognized on the Consolidated Balance Sheet at December 31: Non-current assets $ 85,828 $ 73,914 $ — $ — Current liabilities (5,073 ) (4,741 ) (2,174 ) (2,915 ) Non-current liabilities (258,131 ) (282,411 ) (24,121 ) (30,178 ) Total $ (177,376 ) $ (213,238 ) $ (26,295 ) $ (33,093 ) (1) Contributions during the year ended December 2015 include a contribution of 66,000 shares of Colfax Common stock with a value on the contribution date of approximately $3.4 million . The accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $0.6 billion and $0.4 billion , respectively, as of December 31, 2016 and $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 . The projected benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $0.6 billion and $0.4 billion , respectively, as of December 31, 2016 and $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 . 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, 2016 2015 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,075,223 $ 1,265,143 Service cost 3,881 4,506 Interest cost 34,298 37,253 Actuarial loss (gain) 132,898 (64,801 ) Foreign exchange effect (158,453 ) (77,854 ) Benefits paid (53,028 ) (60,162 ) Settlements (1,591 ) (29,811 ) Other (35 ) 949 Projected benefit obligation, end of year $ 1,033,193 $ 1,075,223 Accumulated benefit obligation, end of year $ 1,009,916 $ 1,054,907 Change in plan assets: Fair value of plan assets, beginning of year $ 981,249 $ 1,079,497 Actual return on plan assets 158,992 11,159 Employer contribution 32,168 41,659 Foreign exchange effect (164,316 ) (63,060 ) Benefits paid (53,028 ) (60,162 ) Settlements (1,591 ) (28,399 ) Other (19 ) 555 Fair value of plan assets, end of year $ 953,455 $ 981,249 Funded status, end of year $ (79,738 ) $ (93,974 ) Expected contributions to the Company’s pension and other post-employment benefit plans for the year ending December 31, 2017 , related to plans as of December 31, 2016 , are $30.1 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) 2017 $ 82,669 $ 48,989 $ 2,174 2018 81,813 48,631 2,103 2019 80,516 47,871 1,952 2020 80,534 48,293 1,803 2021 80,403 48,745 1,674 2022- 2026 397,871 251,670 7,323 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 2016 2015 Allocation U.S. Plans: Equity securities: U.S. 44 % 42 % 30% - 45% International 15 % 16 % 10% - 20% Fixed income 36 % 41 % 30% - 50% Other 1 % 1 % 0% - 20% Cash and cash equivalents 4 % — % 0% - 5% Foreign Plans: Equity securities 32 % 32 % 10% - 50% Fixed income securities 65 % 64 % 50% - 90% Cash and cash equivalents 1 % 1 % 0% - 25% Other 2 % 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, 2016 Measured at Net Asset Value (1) Level Level Level (In thousands) U.S. Plans: Cash and cash equivalents $ — $ 16,517 $ — $ — $ 16,517 Equity securities: U.S. large cap 97,530 — — — 97,530 U.S. small/mid cap 41,141 12,116 — — 53,257 International 51,656 — — — 51,656 Fixed income mutual funds: U.S. government and corporate 123,663 — — — 123,663 Other (2) — 1,822 — — 1,822 Foreign Plans: Cash and cash equivalents — 8,758 — — 8,758 Equity securities 129,525 144,696 32,966 — 307,187 Non-U.S. government and corporate bonds — 292,288 321,657 — 613,945 Other (2) — 592 22,973 — 23,565 $ 443,515 $ 476,789 $ 377,596 $ — $ 1,297,900 (1) 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. (2) Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. 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) 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. (2) Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. The following table sets forth the components of net periodic benefit cost and Other comprehensive loss 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, 2016 2015 2014 2016 2015 2014 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 4,059 $ 4,612 $ 4,883 $ 39 $ 33 $ 155 Interest cost 51,638 54,807 70,469 1,038 1,170 1,304 Amortization 8,334 11,515 6,608 (407 ) 259 468 Settlement loss (gain) 48 (582 ) 190 — — — Other 37 525 328 — 174 — Expected return on plan assets (57,169 ) (58,107 ) (69,055 ) — — — Net periodic benefit cost $ 6,947 $ 12,770 $ 13,423 $ 670 $ 1,636 $ 1,927 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss: Current year net actuarial (gain) loss $ (9,523 ) $ (33,558 ) $ 96,005 $ (5,689 ) $ (6,410 ) $ 5,553 Less amounts included in net periodic benefit cost: Amortization of net loss (8,362 ) (11,515 ) (6,608 ) 655 (11 ) (220 ) Settlement loss (74 ) (952 ) (190 ) — — — Amortization of prior service cost 28 — — (248 ) (248 ) (248 ) Total recognized in Other comprehensive loss $ (17,931 ) $ (46,025 ) $ 89,207 $ (5,282 ) $ (6,669 ) $ 5,085 The following table sets forth the components of net periodic benefit cost and Other comprehensive loss of the foreign defined benefit pension plans, included in the table above: Foreign Pension Benefits Year Ended December 31, 2016 2015 2014 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 3,881 $ 4,506 $ 4,883 Interest cost 34,298 37,253 51,658 Amortization 1,870 4,272 1,669 Settlement loss (gain) 48 (582 ) 190 Other 37 525 328 Expected return on plan assets (32,596 ) (32,921 ) (44,287 ) Net periodic benefit cost $ 7,538 $ 13,053 $ 14,441 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss: Current year net actuarial loss (gain) $ 4,867 $ (50,216 ) $ 38,904 Less amounts included in net periodic benefit cost: Amortization of net loss (1,898 ) (4,272 ) (1,669 ) Settlement loss (74 ) (952 ) (190 ) Amortization of prior service cost 28 — — Total recognized in Other comprehensive loss $ 2,923 $ (55,440 ) $ 37,045 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, 2016 2015 2016 2015 (In thousands) Net actuarial loss (gain) $ 221,294 $ 239,225 $ (6,878 ) $ (1,845 ) Prior service cost — — 310 559 Total $ 221,294 $ 239,225 $ (6,568 ) $ (1,286 ) 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, 2017 are as follows: Pension Benefits Other Post- (In thousands) Net actuarial loss (gain) $ 10,630 $ (649 ) Prior service cost — 248 Total $ 10,630 $ (401 ) 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, 2016 2015 2016 2015 Weighted-average discount rate: All plans 2.9 % 3.6 % 3.9 % 4.0 % Foreign plans 2.6 % 3.5 % — — Weighted-average rate of increase in compensation levels for active foreign plans 1.6 % 1.5 % — — 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, 2016 2015 2014 2016 2015 2014 Weighted-average discount rate: All plans 3.6 % 3.3 % 4.4 % 4.0 % 3.6 % 4.4 % Foreign plans 3.5 % 3.3 % 4.4 % — — — Weighted-average expected return on plan assets: All plans 4.8 % 4.7 % 5.4 % — — — Foreign plans 4.1 % 3.9 % 4.9 % — — — Weighted-average rate of increase in compensation levels for active foreign plans 1.5 % 1.6 % 1.7 % — — — 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 6.2% was assumed. The rate was assumed to decrease gradually to 5.25% 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, 2016 $ 99 $ (80 ) Effect on post-retirement benefit obligation at December 31, 2016 2,400 (1,951 ) The Company maintains defined contribution plans covering certain union and non-union employees. The Company’s expense for the years ended December 31, 2016 , 2015 and 2014 was $22.9 million , $26.5 million and $25.3 million , respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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 $1.3 billion and $1.4 billion as of December 31, 2016 and 2015, 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, 2016 Level Level Level Total (In thousands) Assets: Cash equivalents $ 24,603 $ — $ — $ 24,603 Foreign currency contracts related to sales - designated as hedges — 992 — 992 Foreign currency contracts related to sales - not designated as hedges — 1,422 — 1,422 Foreign currency contracts related to purchases - designated as hedges — 4,224 — 4,224 Foreign currency contracts related to purchases - not designated as hedges — 120 — 120 Deferred compensation plans — 4,586 — 4,586 $ 24,603 $ 11,344 $ — $ 35,947 Liabilities: Foreign currency contracts related to sales - designated as hedges $ — $ 11,280 $ — $ 11,280 Foreign currency contracts related to sales - not designated as hedges — 256 — 256 Foreign currency contracts related to purchases - designated as hedges — 469 — 469 Foreign currency contracts related to purchases - not designated as hedges — 1,004 — 1,004 Deferred compensation plans — 4,586 — 4,586 $ — $ 17,595 $ — $ 17,595 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 There were no transfers in or out of Level One, Two or Three during the year ended December 31, 2016 . 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, 2016 and 2015 , the Company had foreign currency contracts with the following notional values: December 31, 2016 2015 (In thousands) Foreign currency contracts sold - not designated as hedges $ 87,172 $ 119,653 Foreign currency contracts sold - designated as hedges 215,086 206,366 Foreign currency contracts purchased - not designated as hedges 40,127 41,480 Foreign currency contracts purchased - designated as hedges 84,604 62,794 Total foreign currency derivatives $ 426,989 $ 430,293 The Company recognized the following in its Consolidated Financial Statements related to its derivative instruments: Year Ended December 31, 2016 2015 2014 (In thousands) Contracts Designated as Hedges: Foreign Currency Contracts - related to customer sales contracts: Unrealized gain (loss) $ 1,847 $ (2,350 ) $ (4,706 ) Realized loss (4,771 ) (512 ) (5,776 ) Foreign Currency Contracts - related to supplier purchase contracts: Unrealized loss (1,269 ) (1,173 ) (1,719 ) Realized gain 2,570 756 3,386 Unrealized gain on net investment hedges (1) 18,537 14,537 39,374 Contracts Not Designated in a Hedge Relationship: Foreign Currency Contracts - related to customer sales contracts: Unrealized gain (loss) 1,471 2,260 (1,389 ) Realized loss (117 ) (5,644 ) (4,342 ) Foreign Currency Contracts - related to supplier purchases contracts: Unrealized (loss) gain (1,095 ) 393 (1,304 ) Realized (loss) gain (653 ) 1,165 1,355 (1) The unrealized gain 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 23% and 20% of the Company’s Accounts receivable, net as of December 31, 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (Number of claims) Claims unresolved, beginning of period 20,583 21,681 22,393 Claims filed (2) 5,163 4,821 4,850 Claims resolved (3) (5,179 ) (5,919 ) (5,562 ) Claims unresolved, end of period 20,567 20,583 21,681 (In dollars) Average cost of resolved claims (4) $ 8,872 $ 6,056 $ 7,513 (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. The Company has evaluated the insurance assets for each subsidiary based upon the applicable policy language and allocation methodologies, and law pertaining to the affected subsidiary’s insurance policies. One of the subsidiaries 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. The subsidiary has sought coverage from certain excess layer insurers whose terms and conditions follow form to the umbrella carrier, which parties’ dispute was resolved by the Delaware state courts during 2016. This litigation confirmed 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), that the subsidiary has rights to excess insurance policies purchased by a former owner of the business, and that, based on the September 12, 2016 ruling by the Delaware Supreme Court, the subsidiary has a right to immediately access the excess layer policies. Further, the Delaware Supreme Court ruled in the subsidiary’s favor on a “trigger of coverage” issue, holding that every policy in place during or after the date of a claimant’s first significant exposure to asbestos was “triggered” and potentially could be accessed to cover that claimant’s claim. The Court also largely affirmed and reversed in part some of the prior lower court rulings on defense obligations and whether payment of such costs erode policy limits or are payable in addition to policy limits. Based upon these rulings, the Company currently estimates that the subsidiary’s future expected recovery percentage is approximately 92% of asbestos-related costs with the subsidiary expected to be responsible for approximately 8% of its future asbestos-related costs. Since approximately mid-2011, the Company had funded $94.9 million of the subsidiary’s asbestos-related defense and indemnity costs through December 31, 2016, which it expects to recover from insurers. Based on the above-referenced court rulings, the Company recently requested that its insurers reimburse all of that amount and currently expects to receive substantially all of that amount. In late December 2016, $23.6 million of that amount was reimbursed. Certain of the excess insurers have advised the subsidiary that they are still reviewing costs data relating to the other unreimbursed amounts. The subsidiary also has requested that certain excess insurers provide ongoing coverage for future asbestos-related defense and/or indemnity costs. The insurers to which the vast majority of pending claims have been tendered have not yet responded to this request. To the extent any disagreements concerning excess insurers’ payment obligations under the Delaware Supreme Court’s rulings remain, they are expected to be resolved by Delaware court action, which is still pending and has been remanded to the Delaware Superior Court for any further proceedings. In the interim, and while not impacting the results of operations, the Company’s cash funding for future asbestos-related defense and indemnity costs for which it expects reimbursement from insurers could range up to $10 million per quarter. 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. Court rulings in 2007 and 2009 clarified the insurers allocation methodology as mandated by the New Jersey courts, the allocation calculation related to amounts currently due from insurers, and amounts the Company expects to be reimbursed for asbestos-related costs incurred in future periods. A final judgment at the trial court level was rendered in 2011 and confirmed by the Appellate Division in 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 21% of all future asbestos-related costs. During the year ended December 31, 2014 the Company recorded a $6.9 million pre-tax charge due to a higher number of asbestos claims settlements and a decline in the insurance recovery rate. The charge was 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 . During the year ended December 31, 2015, the Company recorded a $4.1 million pre-tax charge 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 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. During the year ended December 31, 2016, the Company recorded an $8 million increase in asbestos-related liabilities due to higher settlement values per claim. The related insurance asset was accordingly increased $6.4 million , resulting in a net pre-tax charge to Selling, general, and administrative expense of $1.6 million . The Company’s Consolidated Balance Sheets included the following amounts related to asbestos-related litigation: December 31, 2016 2015 (In thousands) Long-term asbestos insurance asset (1) 293,289 312,967 Long-term asbestos insurance receivable (1) 92,269 96,007 Accrued asbestos liability (2) 51,166 48,780 Long-term asbestos liability (3) 330,194 350,394 (1) Included in Other assets in the Consolidated Balance Sheets. (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. (3) Included in Other liabilities in the Consolidated Balance Sheets. As discussed above, on September 12, 2016 , the Delaware Supreme Court affirmed prior rulings regarding the subsidiary’s insurance policies and also ruled on other matters including specific determinations of coverage for defense costs under the excess policies. The net result of the ruling is an adjustment to the Company’s expected future recoveries, resulting in an $8.2 million reduction to the net recoverable insurance asset recorded as a pre-tax charge to the Consolidated Statement of Income for the year ended December 31, 2016. The estimated future expected recovery rate may change over time as these claims are fully settled, which may result in periodic adjustments impacting our financial condition and results of operations. Certain matters, including potential interest which could be awarded to the subsidiary, are subject to further rulings from the Delaware courts. While the outcome is uncertain, none of these matters is expected to have a material adverse effect on the financial condition, results of operations or cash flows of the Company. The Delaware Supreme Court’s ruling is also expected to result in the receipt from excess insurers of approximately $73 million in unreimbursed costs funded by the subsidiary in defense and settlement of asbestos claims, although the timing of cash defense and settlement costs, compared to levels experienced prior to the ruling, remains uncertain. 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. On August 10, 2015, 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. This matter was settled on December 30, 2016. The settlement had no material impact on the Company’s Consolidated Financial Statements for the year ended December 31, 2016 and is not expected to have a material impact in future periods on the financial condition, results of operations or cash flow of the Company. 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, 2016 (In thousands) 2017 $ 27,926 2018 24,032 2019 19,301 2020 16,541 2021 10,921 Thereafter 49,831 Total $ 148,552 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, 2016 , 2015 and 2014 , the Company’s net rental expense related to operating leases was $37.8 million , $39.9 million and $39.8 million , respectively. Off-Balance Sheet Arrangements As of December 31, 2016 , the Company had $305.4 million of unconditional purchase obligations with suppliers, substantially all of which is expected to be paid by December 31, 2017 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information The Company conducts its operations through three operating segments: air and gas handling, fluid handling and fabrication technology. The air and 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, 2016 2015 2014 (In thousands) Net sales: Gas and fluid handling $ 1,846,555 $ 1,981,816 $ 2,329,598 Fabrication technology 1,800,492 1,985,237 2,294,878 Total Net sales $ 3,647,047 $ 3,967,053 $ 4,624,476 Segment operating income (loss) (1) : Gas and fluid handling $ 166,808 $ 194,469 $ 254,240 Fabrication technology 195,197 198,337 265,813 Corporate and other (49,820 ) (46,984 ) (52,379 ) Total segment operating income $ 312,185 $ 345,822 $ 467,674 Depreciation, amortization and impairment charges: Gas and fluid handling $ 67,415 $ 68,457 $ 96,763 Fabrication technology 75,139 84,913 76,406 Corporate and other 704 1,172 1,555 Total depreciation, amortization and impairment charges $ 143,258 $ 154,542 $ 174,724 Capital expenditures: Gas and fluid handling $ 26,994 $ 34,303 $ 32,558 Fabrication technology 32,662 35,261 47,955 Corporate and other 3,595 313 3,945 Total capital expenditures $ 63,251 $ 69,877 $ 84,458 (1) The following is a reconciliation of Income before income taxes to segment operating income: Year Ended December 31, 2016 2015 2014 Income before income taxes $ 207,999 $ 236,902 $ 358,248 Interest expense, net 30,016 47,743 51,305 Restructuring and other related charges 74,170 61,177 58,121 Segment operating income $ 312,185 $ 345,822 $ 467,674 December 31, 2016 2015 (In thousands) Investments in Equity Method Investees: Gas and fluid handling $ 4,966 $ 3,805 Fabrication technology 38,217 42,106 $ 43,183 $ 45,911 Total Assets: Gas and fluid handling $ 3,277,713 $ 3,482,471 Fabrication technology 2,983,464 3,157,078 Corporate and other 124,282 93,370 Total Assets $ 6,385,459 $ 6,732,919 The detail of the Company’s operations by product type and geography is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Net Sales by Major Product: Air and gas handling $ 1,385,261 $ 1,449,115 $ 1,676,180 Fluid handling 461,294 532,701 653,418 Welding and cutting 1,800,492 1,985,237 2,294,878 Total Net sales $ 3,647,047 $ 3,967,053 $ 4,624,476 Net Sales by Origin (1) : United States $ 995,190 $ 1,124,883 $ 1,097,864 Foreign locations 2,651,857 2,842,170 3,526,612 Total Net sales $ 3,647,047 $ 3,967,053 $ 4,624,476 (1) The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. December 31, 2016 2015 (In thousands) Property, Plant and Equipment, Net (1) : United States $ 177,831 $ 179,194 Czech Republic 72,776 75,540 China 56,220 63,784 Other Foreign Locations 297,387 326,018 Property, plant and equipment, net $ 604,214 $ 644,536 (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. |
Selected Quarterly Data - (Unau
Selected Quarterly Data - (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 . Quarter Ended April 1, July 1, September 30, December 31, (In thousands, except per share data) Net sales $ 876,843 $ 957,249 $ 879,204 $ 933,751 Gross profit 280,521 301,105 275,407 288,618 Net income 26,210 43,963 32,199 42,819 Net income attributable to Colfax Corporation common shareholders 22,615 39,754 27,970 37,772 Net income per share – basic and diluted $ 0.18 $ 0.32 $ 0.23 $ 0.31 Quarter Ended March 27, June 26, September 25, December 31, (1) (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 (1) Net income and Net income per share for the three months ended December 31, 2015 , 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 Accoun27
Summary of Significant Accounting Policies Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 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 Customer advances and billings in excess of costs incurred in the Consolidated Balance Sheets. The Company recognizes revenue and cost of sales on air and 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 Customer advances and billings in excess of costs incurred. As of December 31, 2016 , there were $174.9 million of revenues in excess of billings and $108.2 million of billings in excess of revenues on long-term contracts in the Consolidated Balance Sheet. 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. 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 $41.9 million , $41.5 million and $43.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, are expensed as incurred and are included in Selling, general and administrative expense in the Consolidated Statements of Income. |
Interest Expense, Policy [Policy Text Block] | Interest Expense, Net Interest expense, net includes interest income of $7.2 million , $7.0 million and $6.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, primarily associated with interest bearing deposits in certain foreign subsidiaries. |
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. |
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 air and 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 carrying 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 elect to forgo 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. Generally, 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. During the year ended December 31, 2016 , the Company’s air and gas handling business reorganized its structure to create further synergies across the business by introducing joint product and market objectives, improve speed to market for new products and ensure the business’s cost structure is appropriately directed. The assessment of the Company’s air and gas handling reporting units based on the updated business structure concluded there is one Air and Gas Handling reporting unit as compared to two reporting units previously. The Company has experienced a concurrent decline in numerous end-markets and geographic markets that has impacted both of the Company’s reportable segments. This decline has had a negative impact on the levels of capital invested and maintenance expenditures by certain of our customers which in turn has reduced the demand for our products and services, affecting operating results. Given the above, and the length of time since performing a quantitative analysis of Goodwill for certain of the reporting units, the Company elected not to perform qualitative assessments of Goodwill and instead, proceeded directly to performing the first step of the two-step quantitative Goodwill impairment test for its 2016 annual impairment test. The quantitative impairment assessment of Goodwill for each of the Fabrication Technology, Air and Gas Handling and Fluid Handling reporting units, based on the methodologies identified above, resulted in calculated fair values that exceeded the carrying values of each of the reporting units. The annual Goodwill impairment analyses performed as of October 1, 2016 , September 26, 2015 and September 27, 2014 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 its 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 year ended December 31, 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. In addition, during the year ended December 31, 2014, an analysis was performed on a trade name related to a specific operation within the gas and fluid handling segment prior to the annual impairment analysis due to the decision to substantially reduce its operations. The analysis determined the 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 2014. During the annual impairment analysis for the year ended December 31, 2016, quantitative analyses were performed for two specific trade names in the fabrication technology segment due to a decline in revenues resulting primarily from cyclical economic conditions in the North American welding market. In one case, the analysis determined the fair value was marginally greater than its $42 million carrying value. The analysis for the other trade name determined the fair value was approximately equal to its carrying value of $11.3 million . The analyses performed as of October 1, 2016 , September 26, 2015 and September 27, 2014 resulted in no impairment charges. |
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 years ended December 31, 2016 and 2015, analyses were performed to evaluate certain long-lived intangible assets related to specific operations within the gas and fluid handling segment due to declines in projected cash flows associated with the asset groups. The analyses determined the customer relationship finite-lived intangible assets were impaired. The impairment amounts were calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the assets and their carrying values as of the measurement dates. The $1.4 million and $1.7 million impairment losses were included in Selling, general and administrative expense in the Consolidated Statements of Income for the years ended December 31, 2016 and 2015, respectively. Subsequent to the impairments, the fair values of the assets were $14.8 million and $0.8 million , which are included in Level Three of the fair value hierarchy. In addition, analyses were performed during the year ended December 31, 2014 to evaluate certain long-lived intangible assets related to two specific operations within the gas and fluid handling segment due to projected cash flow declines. The analysis determined certain long-lived intangible assets, primarily consisting of acquired customer relationships and acquired technology, were either impaired or no longer recoverable based upon projected undiscounted net cash flows. The impairment was calculated as the difference between the fair value of the remaining expected future cash flows to be generated from the asset or asset group and the respective 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 total fair value of these assets of $3.3 million as of December 31, 2014 is included in Level Three of the fair value hierarchy and is not material to the Consolidated Financial Statements. The Company recorded asset impairment losses related to facility closures totaling $4.5 million , $9.3 million and $4.6 million during the years ended December 31, 2016 , 2015 and 2014 , 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 $2.7 million , $21.1 million and $15.1 million for the years ended December 31, 2016 , 2015 and 2014 , 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 DB Credit Agreement (as defined and further discussed in Note 10, “Debt”) includes debt denominated in the Euro of €218.5 million as of December 31, 2016 , 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 Balance Sheets, consisted of the following: Year Ended December 31, 2016 2015 (In thousands) Warranty liability, beginning of period $ 37,407 $ 51,135 Accrued warranty expense 19,674 21,092 Changes in estimates related to pre-existing warranties 4,752 (1,820 ) Cost of warranty service work performed (30,005 ) (29,342 ) Acquisitions 304 321 Foreign exchange translation effect (411 ) (3,979 ) Warranty liability, end of period $ 31,721 $ 37,407 |
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. During the year ended December 31, 2016 , the Company recognized net foreign currency transaction gains of $2.4 million and $3.5 million in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income. 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 , net foreign currency transaction losses of $5.1 million and $5.5 million were recognized in Interest expense and Selling, general and administrative expense, respectively, in the Consolidated Statement of Income |
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 $5.9 million and $8.1 million , respectively, were included in the Consolidated Balance Sheets as of December 31, 2016 and 2015 , which includes $15.6 million and $13.4 million , respectively, of accumulated amortization. As of December 31, 2016 , $5.3 million and $0.6 million of deferred issuance costs were included in Other assets and as a reduction of Long-term debt, respectively. 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. During the years ended December 31, 2015 and 2014 , the Company deferred $3.4 million and $0.3 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 Accoun28
Summary of Significant Accounting Policies Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Balance Sheets, consisted of the following: Year Ended December 31, 2016 2015 (In thousands) Warranty liability, beginning of period $ 37,407 $ 51,135 Accrued warranty expense 19,674 21,092 Changes in estimates related to pre-existing warranties 4,752 (1,820 ) Cost of warranty service work performed (30,005 ) (29,342 ) Acquisitions 304 321 Foreign exchange translation effect (411 ) (3,979 ) Warranty liability, end of period $ 31,721 $ 37,407 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (In thousands, except share data) Computation of Net income per share - basic: Net income attributable to Colfax Corporation common shareholders $ 128,111 $ 167,739 $ 370,185 Weighted-average shares of Common stock outstanding - basic 122,911,581 124,101,033 121,143,790 Net income per share - basic $ 1.04 $ 1.35 $ 3.06 Computation of Net income per share - diluted (1) : Net income attributable to Colfax Corporation common shareholders $ 128,111 $ 167,739 $ 370,185 Weighted-average shares of Common stock outstanding - basic 122,911,581 124,101,033 121,143,790 Net effect of potentially dilutive securities - stock options and restricted stock units 287,145 768,616 1,522,502 Weighted-average shares of Common stock outstanding - diluted 123,198,726 124,869,649 122,666,292 Net income per share - diluted $ 1.04 $ 1.34 $ 3.02 (1) For the period from January 1, 2014 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (In thousands) Income (loss) before income taxes: Domestic operations $ (20,795 ) $ (16,487 ) $ 53,153 Foreign operations 228,794 253,389 305,095 $ 207,999 $ 236,902 $ 358,248 Provision for (benefit from) income taxes: Current: Federal $ 623 $ 465 $ 798 State (490 ) 1,076 2,047 Foreign 64,357 70,900 74,618 $ 64,490 $ 72,441 $ 77,463 Deferred: Domestic operations $ 3,723 $ (1,231 ) $ (127,114 ) Foreign operations (5,405 ) (21,486 ) (12,374 ) (1,682 ) (22,717 ) (139,488 ) $ 62,808 $ 49,724 $ (62,025 ) |
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, 2016 2015 2014 (In thousands) Taxes calculated at the U.S. federal statutory rate $ 72,800 $ 82,940 $ 125,386 State taxes 496 768 2,323 Effect of tax rates on international operations (25,813 ) (34,513 ) (34,619 ) Change in enacted international tax rates (2,434 ) (4,415 ) (149 ) Changes in valuation allowance and tax reserves 10,587 1,784 (156,071 ) Other 7,172 3,160 1,105 Provision for (benefit from) income taxes $ 62,808 $ 49,724 $ (62,025 ) |
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. 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, are as follows: December 31, 2016 2015 (In thousands) Deferred tax assets: Post-retirement benefit obligation $ 66,911 $ 75,045 Expenses currently not deductible 105,780 109,283 Net operating loss carryforward 211,205 211,627 Tax credit carryforward 10,882 10,343 Depreciation and amortization 7,879 7,533 Other 14,957 25,379 Valuation allowance (153,740 ) (161,030 ) Deferred tax assets, net $ 263,874 $ 278,180 Deferred tax liabilities: Depreciation and amortization $ (292,906 ) $ (317,464 ) Post-retirement benefit obligation (14,990 ) (13,581 ) Inventory (18,309 ) (17,122 ) Other (178,166 ) (174,367 ) Total deferred tax liabilities $ (504,371 ) $ (522,534 ) Total deferred tax liabilities, net $ (240,497 ) $ (244,354 ) |
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, 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 (1) (23,616 ) Other, including the impact of foreign currency translation (5,879 ) Balance, December 31, 2015 52,878 Addition for tax positions taken in prior periods 6,552 Addition for tax positions taken in the current period 1,418 Reduction for tax positions taken in prior periods (1) (2,248 ) Other, including the impact of foreign currency translation 608 Balance, December 31, 2016 $ 59,208 (1) Includes reductions for lapses in statute of limitations. |
Goodwill & Intangibles (Tables)
Goodwill & Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : Gas and Fluid Handling Fabrication Technology Total (In thousands) Balance, January 1, 2015 $ 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 Goodwill attributable to acquisitions (1) 1,317 15,242 16,559 Impact of foreign currency translation and other (161,710 ) (109,210 ) (270,920 ) Balance, December 31, 2016 $ 1,265,873 $ 1,297,453 $ 2,563,326 (1) Includes purchase accounting adjustments associated with the two gas and fluid handling acquisitions completed during the year ended December 31, 2015 , pursuant to ASU No. 2015-16. See Note 4, “Acquisitions” for further discussion. |
Schedule Of Intangible Assets [Table Text Block] | The following table summarizes the Company’s Intangible assets, excluding Goodwill: December 31, 2016 2015 Gross Accumulated Gross Accumulated (In thousands) Trade names – indefinite life $ 364,113 $ — $ 395,319 $ — Acquired customer relationships 567,351 (156,241 ) 573,589 (117,573 ) Acquired technology 147,672 (49,003 ) 149,578 (37,012 ) Acquired backlog — — 2,575 (2,220 ) Other intangible assets 48,355 (22,907 ) 48,413 (16,957 ) $ 1,127,491 $ (228,151 ) $ 1,169,474 $ (173,762 ) |
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, 2016 2015 2014 (In thousands) Selling, general and administrative expense $ 60,620 $ 60,629 $ 67,052 |
Property, Plant and Equipment32
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, Depreciable Life 2016 2015 (In years) (In thousands) Land n/a $ 42,779 $ 44,746 Buildings and improvements 5-40 323,279 327,122 Machinery and equipment 3-15 540,617 546,052 Software 3-5 95,928 95,556 1,002,603 1,013,476 Accumulated depreciation (398,389 ) (368,940 ) Property, plant and equipment, net $ 604,214 $ 644,536 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories, Net Inventories, net consisted of the following: December 31, 2016 2015 (In thousands) Raw materials $ 148,513 $ 160,640 Work in process 75,331 68,541 Finished goods 237,507 243,209 461,351 472,390 Less: customer progress payments (14,624 ) (15,876 ) Less: allowance for excess, slow-moving and obsolete inventory (42,870 ) (36,128 ) Inventories, net $ 403,857 $ 420,386 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Long-term debt consisted of the following: December 31, 2016 2015 (In thousands) Term loans $ 678,286 $ 713,175 Trade receivables financing arrangement 63,399 75,800 Revolving credit facilities and other 550,459 628,572 Total Debt 1,292,144 1,417,547 Less: current portion (5,406 ) (5,792 ) Long-term debt $ 1,286,738 $ 1,411,755 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The contractual maturities of the Company’s debt as of December 31, 2016 are as follows (1) : (In thousands) 2017 $ 5,406 2018 4,676 2019 2,447 2020 1,285,704 Total contractual maturities 1,298,233 Debt discount (6,089 ) Total debt $ 1,292,144 (1) Represents scheduled payments required under the DB Credit Agreement through June 5, 2020, as well as the contractual maturities of other debt outstanding as of December 31, 2016 , and reflects management’s intention to repay scheduled maturities of the term loans outstanding under the DB Credit Agreement and the trade receivables financing arrangement (if not extended) with proceeds from the revolving credit facility. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | Accumulated Other Comprehensive Loss Components Net Unrecognized Pension And Other Post-Retirement Benefit Cost Foreign Currency Translation Adjustment Unrealized (Loss) Gain On Hedging Activities Total (In thousands) Balance at January 1, 2014 $ (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 (1) 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 (1) 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 ) Other comprehensive income (loss) before reclassifications: Net actuarial gain 4,815 — — 4,815 Foreign currency translation adjustment 2,620 (312,017 ) 722 (308,675 ) Loss on long-term intra-entity foreign currency transactions — (22,530 ) — (22,530 ) Gain on net investment hedges — — 18,537 18,537 Unrealized loss on cash flow hedges — — (789 ) (789 ) Other comprehensive income (loss) before reclassifications 7,435 (334,547 ) 18,470 (308,642 ) Amounts reclassified from Accumulated other comprehensive loss (1)(2) 4,634 2,378 — 7,012 Net current period Other comprehensive income (loss) 12,069 (332,169 ) 18,470 (301,630 ) Balance at December 31, 2016 $ (181,189 ) $ (860,789 ) $ 53,633 $ (988,345 ) (1) Included in the computation of net periodic benefit cost. See Note 13, “Defined Benefit Plans” for additional details. (2) Foreign currency translation adjustment reclassification is the result of deconsolidation of the Company’s Venezuelan operations during the year ended December 31, 2016. See Note 2, “Summary of Significant Accounting Policies” for further discussion. |
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, 2016 2015 2014 (In thousands) Stock-based compensation expense $ 19,020 $ 16,321 $ 17,580 Deferred tax benefit 6,271 5,342 4,054 |
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, 2016 2015 2014 Expected period that options will be outstanding (in years) 4.95 5.02 4.87 Interest rate (based on U.S. Treasury yields at the time of grant) 1.41 % 1.62 % 1.62 % Volatility 42.50 % 28.75 % 34.67 % Dividend yield — — — Weighted-average fair value of options granted $ 9.47 $ 11.87 $ 22.65 |
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, 2016 4,261,590 $ 41.07 Granted 1,332,729 24.60 Exercised (119,722 ) 18.43 Forfeited (184,337 ) 46.83 Expired (962,433 ) 36.09 Outstanding at December 31, 2016 4,327,827 $ 37.49 5.01 $ 23,782 Vested or expected to vest at December 31, 2016 4,278,204 $ 37.51 5.00 $ 23,444 Exercisable at December 31, 2016 1,219,274 $ 39.85 3.52 $ 6,139 (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, 2016 523,011 $ 40.19 413,521 $ 44.20 Granted 202,862 24.30 310,826 25.57 Vested (96,794 ) 32.56 (79,140 ) 45.62 Forfeited (1,763 ) 33.35 (61,309 ) 39.87 Nonvested at December 31, 2016 627,316 $ 36.25 583,898 $ 34.54 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities in the Consolidated Balance Sheets consisted of the following: December 31, 2016 2015 (In thousands) Accrued payroll $ 102,960 $ 99,383 Accrued taxes 38,367 51,834 Accrued asbestos-related liability 51,166 48,780 Warranty liability - current portion 30,710 36,128 Accrued restructuring liability - current portion 13,184 12,918 Accrued third-party commissions 8,697 10,275 Other 99,274 86,751 Accrued liabilities $ 344,358 $ 346,069 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | 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, 2016 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) $ 3,979 $ 24,123 $ (21,126 ) $ (200 ) $ 6,776 Facility closure costs (2) 2,657 12,414 (13,218 ) (139 ) 1,714 6,636 36,537 (34,344 ) (339 ) 8,490 Non-cash charges 5,945 42,482 Fabrication Technology: Termination benefits (1) 6,031 23,104 (25,263 ) (160 ) 3,712 Facility closure costs (2) 426 7,261 (6,611 ) (95 ) 981 6,457 30,365 (31,874 ) (255 ) 4,693 Non-cash charges 1,323 31,688 Corporate and Other: Facility closure costs (2) 625 — (344 ) (78 ) 203 625 — (344 ) (78 ) 203 $ 13,718 66,902 $ (66,562 ) $ (672 ) $ 13,386 Non-cash charges 7,268 $ 74,170 (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, 2016 , $13.2 million and $0.2 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. 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 charges 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 charges 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 charges 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. |
Defined Benefit Plans Defined37
Defined Benefit Plans Defined Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2016 2015 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,550,643 $ 1,765,493 $ 33,093 $ 35,085 Acquisitions — 31,914 — 4,983 Service cost 4,059 4,612 39 33 Interest cost 51,638 54,807 1,038 1,170 Actuarial loss (gain) 126,505 (93,878 ) (5,689 ) (6,410 ) Foreign exchange effect (158,453 ) (77,854 ) — — Benefits paid (97,488 ) (105,589 ) (2,186 ) (1,942 ) Settlements (1,591 ) (29,811 ) — — Other (37 ) 949 — 174 Projected benefit obligation, end of year $ 1,475,276 $ 1,550,643 $ 26,295 $ 33,093 Accumulated benefit obligation, end of year $ 1,452,000 $ 1,530,327 $ 26,295 $ 33,093 Change in plan assets: Fair value of plan assets, beginning of year $ 1,337,405 $ 1,469,103 $ — $ — Acquisitions — 28,591 — — Actual return on plan assets 191,562 (9,390 ) — — Employer contribution (1) 32,347 45,594 2,186 1,942 Foreign exchange effect (164,316 ) (63,060 ) — — Benefits paid (97,488 ) (105,589 ) (2,186 ) (1,942 ) Settlements (1,591 ) (28,399 ) — — Other (19 ) 555 — — Fair value of plan assets, end of year $ 1,297,900 $ 1,337,405 $ — $ — Funded status, end of year $ (177,376 ) $ (213,238 ) $ (26,295 ) $ (33,093 ) Amounts recognized on the Consolidated Balance Sheet at December 31: Non-current assets $ 85,828 $ 73,914 $ — $ — Current liabilities (5,073 ) (4,741 ) (2,174 ) (2,915 ) Non-current liabilities (258,131 ) (282,411 ) (24,121 ) (30,178 ) Total $ (177,376 ) $ (213,238 ) $ (26,295 ) $ (33,093 ) (1) Contributions during the year ended December 2015 include a contribution of 66,000 shares of Colfax Common stock with a value on the contribution date of approximately $3.4 million . The accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $0.6 billion and $0.4 billion , respectively, as of December 31, 2016 and $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 . The projected benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations in excess of plan assets were $0.6 billion and $0.4 billion , respectively, as of December 31, 2016 and $1.0 billion and $0.7 billion , respectively, as of December 31, 2015 . 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, 2016 2015 (In thousands) Change in benefit obligation: Projected benefit obligation, beginning of year $ 1,075,223 $ 1,265,143 Service cost 3,881 4,506 Interest cost 34,298 37,253 Actuarial loss (gain) 132,898 (64,801 ) Foreign exchange effect (158,453 ) (77,854 ) Benefits paid (53,028 ) (60,162 ) Settlements (1,591 ) (29,811 ) Other (35 ) 949 Projected benefit obligation, end of year $ 1,033,193 $ 1,075,223 Accumulated benefit obligation, end of year $ 1,009,916 $ 1,054,907 Change in plan assets: Fair value of plan assets, beginning of year $ 981,249 $ 1,079,497 Actual return on plan assets 158,992 11,159 Employer contribution 32,168 41,659 Foreign exchange effect (164,316 ) (63,060 ) Benefits paid (53,028 ) (60,162 ) Settlements (1,591 ) (28,399 ) Other (19 ) 555 Fair value of plan assets, end of year $ 953,455 $ 981,249 Funded status, end of year $ (79,738 ) $ (93,974 ) |
Schedule of Expected Benefit Payments [Table Text Block] | 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) 2017 $ 82,669 $ 48,989 $ 2,174 2018 81,813 48,631 2,103 2019 80,516 47,871 1,952 2020 80,534 48,293 1,803 2021 80,403 48,745 1,674 2022- 2026 397,871 251,670 7,323 |
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 2016 2015 Allocation U.S. Plans: Equity securities: U.S. 44 % 42 % 30% - 45% International 15 % 16 % 10% - 20% Fixed income 36 % 41 % 30% - 50% Other 1 % 1 % 0% - 20% Cash and cash equivalents 4 % — % 0% - 5% Foreign Plans: Equity securities 32 % 32 % 10% - 50% Fixed income securities 65 % 64 % 50% - 90% Cash and cash equivalents 1 % 1 % 0% - 25% Other 2 % 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, 2016 Measured at Net Asset Value (1) Level Level Level (In thousands) U.S. Plans: Cash and cash equivalents $ — $ 16,517 $ — $ — $ 16,517 Equity securities: U.S. large cap 97,530 — — — 97,530 U.S. small/mid cap 41,141 12,116 — — 53,257 International 51,656 — — — 51,656 Fixed income mutual funds: U.S. government and corporate 123,663 — — — 123,663 Other (2) — 1,822 — — 1,822 Foreign Plans: Cash and cash equivalents — 8,758 — — 8,758 Equity securities 129,525 144,696 32,966 — 307,187 Non-U.S. government and corporate bonds — 292,288 321,657 — 613,945 Other (2) — 592 22,973 — 23,565 $ 443,515 $ 476,789 $ 377,596 $ — $ 1,297,900 (1) 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. (2) Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. 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) 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. (2) Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. |
Schedule of Net Benefit Costs [Table Text Block] | The following table sets forth the components of net periodic benefit cost and Other comprehensive loss 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, 2016 2015 2014 2016 2015 2014 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 4,059 $ 4,612 $ 4,883 $ 39 $ 33 $ 155 Interest cost 51,638 54,807 70,469 1,038 1,170 1,304 Amortization 8,334 11,515 6,608 (407 ) 259 468 Settlement loss (gain) 48 (582 ) 190 — — — Other 37 525 328 — 174 — Expected return on plan assets (57,169 ) (58,107 ) (69,055 ) — — — Net periodic benefit cost $ 6,947 $ 12,770 $ 13,423 $ 670 $ 1,636 $ 1,927 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss: Current year net actuarial (gain) loss $ (9,523 ) $ (33,558 ) $ 96,005 $ (5,689 ) $ (6,410 ) $ 5,553 Less amounts included in net periodic benefit cost: Amortization of net loss (8,362 ) (11,515 ) (6,608 ) 655 (11 ) (220 ) Settlement loss (74 ) (952 ) (190 ) — — — Amortization of prior service cost 28 — — (248 ) (248 ) (248 ) Total recognized in Other comprehensive loss $ (17,931 ) $ (46,025 ) $ 89,207 $ (5,282 ) $ (6,669 ) $ 5,085 The following table sets forth the components of net periodic benefit cost and Other comprehensive loss of the foreign defined benefit pension plans, included in the table above: Foreign Pension Benefits Year Ended December 31, 2016 2015 2014 (In thousands) Components of Net Periodic Benefit Cost: Service cost $ 3,881 $ 4,506 $ 4,883 Interest cost 34,298 37,253 51,658 Amortization 1,870 4,272 1,669 Settlement loss (gain) 48 (582 ) 190 Other 37 525 328 Expected return on plan assets (32,596 ) (32,921 ) (44,287 ) Net periodic benefit cost $ 7,538 $ 13,053 $ 14,441 Change in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss: Current year net actuarial loss (gain) $ 4,867 $ (50,216 ) $ 38,904 Less amounts included in net periodic benefit cost: Amortization of net loss (1,898 ) (4,272 ) (1,669 ) Settlement loss (74 ) (952 ) (190 ) Amortization of prior service cost 28 — — Total recognized in Other comprehensive loss $ 2,923 $ (55,440 ) $ 37,045 |
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, 2016 2015 2016 2015 (In thousands) Net actuarial loss (gain) $ 221,294 $ 239,225 $ (6,878 ) $ (1,845 ) Prior service cost — — 310 559 Total $ 221,294 $ 239,225 $ (6,568 ) $ (1,286 ) 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, 2017 are as follows: Pension Benefits Other Post- (In thousands) Net actuarial loss (gain) $ 10,630 $ (649 ) Prior service cost — 248 Total $ 10,630 $ (401 ) |
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, 2016 2015 2016 2015 Weighted-average discount rate: All plans 2.9 % 3.6 % 3.9 % 4.0 % Foreign plans 2.6 % 3.5 % — — Weighted-average rate of increase in compensation levels for active foreign plans 1.6 % 1.5 % — — 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, 2016 2015 2014 2016 2015 2014 Weighted-average discount rate: All plans 3.6 % 3.3 % 4.4 % 4.0 % 3.6 % 4.4 % Foreign plans 3.5 % 3.3 % 4.4 % — — — Weighted-average expected return on plan assets: All plans 4.8 % 4.7 % 5.4 % — — — Foreign plans 4.1 % 3.9 % 4.9 % — — — Weighted-average rate of increase in compensation levels for active foreign plans 1.5 % 1.6 % 1.7 % — — — |
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, 2016 $ 99 $ (80 ) Effect on post-retirement benefit obligation at December 31, 2016 2,400 (1,951 ) |
Financial Instruments and Fai38
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Level Level Level Total (In thousands) Assets: Cash equivalents $ 24,603 $ — $ — $ 24,603 Foreign currency contracts related to sales - designated as hedges — 992 — 992 Foreign currency contracts related to sales - not designated as hedges — 1,422 — 1,422 Foreign currency contracts related to purchases - designated as hedges — 4,224 — 4,224 Foreign currency contracts related to purchases - not designated as hedges — 120 — 120 Deferred compensation plans — 4,586 — 4,586 $ 24,603 $ 11,344 $ — $ 35,947 Liabilities: Foreign currency contracts related to sales - designated as hedges $ — $ 11,280 $ — $ 11,280 Foreign currency contracts related to sales - not designated as hedges — 256 — 256 Foreign currency contracts related to purchases - designated as hedges — 469 — 469 Foreign currency contracts related to purchases - not designated as hedges — 1,004 — 1,004 Deferred compensation plans — 4,586 — 4,586 $ — $ 17,595 $ — $ 17,595 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 There were no transfers in or out of Level One, Two or Three during the year ended December 31, 2016 . |
Schedule of Foreign Exchange Contracts, Notional Values | As of December 31, 2016 and 2015 , the Company had foreign currency contracts with the following notional values: December 31, 2016 2015 (In thousands) Foreign currency contracts sold - not designated as hedges $ 87,172 $ 119,653 Foreign currency contracts sold - designated as hedges 215,086 206,366 Foreign currency contracts purchased - not designated as hedges 40,127 41,480 Foreign currency contracts purchased - designated as hedges 84,604 62,794 Total foreign currency derivatives $ 426,989 $ 430,293 |
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, 2016 2015 2014 (In thousands) Contracts Designated as Hedges: Foreign Currency Contracts - related to customer sales contracts: Unrealized gain (loss) $ 1,847 $ (2,350 ) $ (4,706 ) Realized loss (4,771 ) (512 ) (5,776 ) Foreign Currency Contracts - related to supplier purchase contracts: Unrealized loss (1,269 ) (1,173 ) (1,719 ) Realized gain 2,570 756 3,386 Unrealized gain on net investment hedges (1) 18,537 14,537 39,374 Contracts Not Designated in a Hedge Relationship: Foreign Currency Contracts - related to customer sales contracts: Unrealized gain (loss) 1,471 2,260 (1,389 ) Realized loss (117 ) (5,644 ) (4,342 ) Foreign Currency Contracts - related to supplier purchases contracts: Unrealized (loss) gain (1,095 ) 393 (1,304 ) Realized (loss) gain (653 ) 1,165 1,355 (1) The unrealized gain on net investment hedges is attributable to the change in valuation of Euro denominated debt. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (Number of claims) Claims unresolved, beginning of period 20,583 21,681 22,393 Claims filed (2) 5,163 4,821 4,850 Claims resolved (3) (5,179 ) (5,919 ) (5,562 ) Claims unresolved, end of period 20,567 20,583 21,681 (In dollars) Average cost of resolved claims (4) $ 8,872 $ 6,056 $ 7,513 (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, 2016 2015 (In thousands) Long-term asbestos insurance asset (1) 293,289 312,967 Long-term asbestos insurance receivable (1) 92,269 96,007 Accrued asbestos liability (2) 51,166 48,780 Long-term asbestos liability (3) 330,194 350,394 (1) Included in Other assets in the Consolidated Balance Sheets. (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. (3) 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, 2016 (In thousands) 2017 $ 27,926 2018 24,032 2019 19,301 2020 16,541 2021 10,921 Thereafter 49,831 Total $ 148,552 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (In thousands) Net sales: Gas and fluid handling $ 1,846,555 $ 1,981,816 $ 2,329,598 Fabrication technology 1,800,492 1,985,237 2,294,878 Total Net sales $ 3,647,047 $ 3,967,053 $ 4,624,476 Segment operating income (loss) (1) : Gas and fluid handling $ 166,808 $ 194,469 $ 254,240 Fabrication technology 195,197 198,337 265,813 Corporate and other (49,820 ) (46,984 ) (52,379 ) Total segment operating income $ 312,185 $ 345,822 $ 467,674 Depreciation, amortization and impairment charges: Gas and fluid handling $ 67,415 $ 68,457 $ 96,763 Fabrication technology 75,139 84,913 76,406 Corporate and other 704 1,172 1,555 Total depreciation, amortization and impairment charges $ 143,258 $ 154,542 $ 174,724 Capital expenditures: Gas and fluid handling $ 26,994 $ 34,303 $ 32,558 Fabrication technology 32,662 35,261 47,955 Corporate and other 3,595 313 3,945 Total capital expenditures $ 63,251 $ 69,877 $ 84,458 (1) The following is a reconciliation of Income before income taxes to segment operating income: Year Ended December 31, 2016 2015 2014 Income before income taxes $ 207,999 $ 236,902 $ 358,248 Interest expense, net 30,016 47,743 51,305 Restructuring and other related charges 74,170 61,177 58,121 Segment operating income $ 312,185 $ 345,822 $ 467,674 December 31, 2016 2015 (In thousands) Investments in Equity Method Investees: Gas and fluid handling $ 4,966 $ 3,805 Fabrication technology 38,217 42,106 $ 43,183 $ 45,911 Total Assets: Gas and fluid handling $ 3,277,713 $ 3,482,471 Fabrication technology 2,983,464 3,157,078 Corporate and other 124,282 93,370 Total Assets $ 6,385,459 $ 6,732,919 |
Revenue from External Customers by Products and Services [Table Text Block] | The detail of the Company’s operations by product type and geography is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Net Sales by Major Product: Air and gas handling $ 1,385,261 $ 1,449,115 $ 1,676,180 Fluid handling 461,294 532,701 653,418 Welding and cutting 1,800,492 1,985,237 2,294,878 Total Net sales $ 3,647,047 $ 3,967,053 $ 4,624,476 Net Sales by Origin (1) : United States $ 995,190 $ 1,124,883 $ 1,097,864 Foreign locations 2,651,857 2,842,170 3,526,612 Total Net sales $ 3,647,047 $ 3,967,053 $ 4,624,476 (1) The Company attributes revenues from external customers to individual countries based upon the country in which the sale was originated. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | December 31, 2016 2015 (In thousands) Property, Plant and Equipment, Net (1) : United States $ 177,831 $ 179,194 Czech Republic 72,776 75,540 China 56,220 63,784 Other Foreign Locations 297,387 326,018 Property, plant and equipment, net $ 604,214 $ 644,536 (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. |
Selected Quarterly Data - (Un41
Selected Quarterly Data - (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 . Quarter Ended April 1, July 1, September 30, December 31, (In thousands, except per share data) Net sales $ 876,843 $ 957,249 $ 879,204 $ 933,751 Gross profit 280,521 301,105 275,407 288,618 Net income 26,210 43,963 32,199 42,819 Net income attributable to Colfax Corporation common shareholders 22,615 39,754 27,970 37,772 Net income per share – basic and diluted $ 0.18 $ 0.32 $ 0.23 $ 0.31 Quarter Ended March 27, June 26, September 25, December 31, (1) (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 (1) Net income and Net income per share for the three months ended December 31, 2015 , 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 Accoun42
Summary of Significant Accounting Policies Accounting Policies Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Warranty Costs [Abstract] | ||
Warranty liability, beginning of period | $ 37,407 | $ 51,135 |
Accrued warranty expense | 19,674 | 21,092 |
Changes in estimates related to pre-existing warranties | 4,752 | (1,820) |
Cost of warranty service work performed | (30,005) | (29,342) |
Acquisitions | 304 | 321 |
Foreign exchange translation effect | (411) | (3,979) |
Warranty liability, end of period | $ 31,721 | $ 37,407 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies Accounting Policies (Details Textual) $ in Thousands, € in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | |
Venezuelan Subsidiaries, Percentage of Total Net Assets | less than 1% | |||||
Venezuelan Subsidiaries, Percentage of Total Revenues | less than 1% | |||||
Venezuelan Subsidiaries, Percentage of Total Operating Income | less than 1% | |||||
Revenues in excess of billings on long-term contracts | $ 149,500 | $ 174,900 | ||||
Billings in excess of revenues on long-term contracts | 146,300 | 108,200 | ||||
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 | $ 7,268 | 11,391 | ||||
Deferred Finance Costs, Net | 8,100 | 5,900 | ||||
Deferred issuance costs, accumulated amortization | 13,400 | 15,600 | ||||
Payments of debt issuance costs | 3,400 | $ 300 | ||||
Asset Impairments Related to Facility Closures [Member] | ||||||
Fair Value of Long-Lived Assets Impaired During the Year | 21,100 | 15,100 | 2,700 | |||
Non-cash impairment provisions | 4,500 | 9,300 | 4,600 | |||
Revolving Credit Facility [Member] | ||||||
Notional Amount of Nonderivative Instruments Designated as Net Investment Hedges | € | € 218.5 | |||||
Interest expense [Member] | ||||||
Interest Income, Other | 7,200 | 7,000 | 6,000 | |||
Foreign currency transaction (loss) gain | 2,400 | (3,900) | (5,100) | |||
Selling, general and administrative expense [Member] | ||||||
Deconsolidation, Gain (Loss), Amount | (2,400) | |||||
Research and development costs | 41,900 | 41,500 | 43,000 | |||
Foreign currency transaction (loss) gain | 3,500 | 2,100 | (5,500) | |||
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 | 1,323 | 8,822 | ||||
Gas and Fluid Handling [Member] | ||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 2,900 | |||||
Impairment of Intangible Assets, Finite-lived | 1,400 | 1,700 | 10,500 | |||
Fair Value of Finite-Lived Intangible Assets Impaired During the Year | 800 | $ 3,300 | 14,800 | |||
Non-cash impairment provisions | $ 5,945 | 2,569 | ||||
Fabrication Technology Indefinite-lived Intangible Asset 1 [Member] | ||||||
Indefinite-Lived Trade Names | 42,000 | |||||
Fabrication Technology Indefinite-lived Intangible Asset 2 [Member] | ||||||
Indefinite-Lived Trade Names | 11,300 | |||||
Assets Held under Capital Leases [Member] | ||||||
Property, Plant and Equipment, Estimated Useful Lives | three to 15 years | |||||
Other Assets [Member] | ||||||
Deferred Finance Costs, Net | 6,900 | 5,300 | ||||
Long-term Debt [Member] | ||||||
Deferred Finance Costs, Net | $ 1,200 | $ 600 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisitions [Line Items] | |||
Business Combination, Acquisition Related Costs | $ 2.7 | $ 2.7 | |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 1.3 | 47.9 | 347.3 |
Gas and Fluid Handling [Member] | |||
Business Acquisitions [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 196 | ||
Goodwill, Purchase Accounting Adjustments | 1.3 | ||
Fabrication Technology [Member] | |||
Business Acquisitions [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 26 | ||
Victor Technologies Holdings, Inc. [Member] | |||
Business Acquisitions [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 948.8 | ||
Business Acquisition, Effective Date of Acquisition | Apr. 14, 2014 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 35.9 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | [1] | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Earnings Per Share [Abstract] | |||||||||||||
Net income available to Colfax Corporation common shareholders | $ 37,772 | $ 27,970 | $ 39,754 | $ 22,615 | $ 44,197 | $ 18,359 | $ 53,127 | $ 52,056 | $ 128,111 | $ 167,739 | $ 370,185 | ||
Weighted-average shares of Common stock outstanding - basic | 122,911,581 | 124,101,033 | 121,143,790 | ||||||||||
Net income per share - basic | $ 0.36 | $ 0.15 | $ 0.43 | $ 0.42 | $ 1.04 | $ 1.35 | $ 3.06 | ||||||
Net effect of potentially dilutive securities - stock options and restricted stock units | 287,145 | 768,616 | 1,522,502 | ||||||||||
Weighted-average shares of Common stock outstanding - diluted | 123,198,726 | 124,869,649 | 122,666,292 | ||||||||||
Net income per share - diluted | $ 0.36 | $ 0.15 | $ 0.42 | $ 0.42 | $ 1.04 | $ 1.34 | $ 3.02 | [2] | |||||
[1] | Net income and Net income per share for the three months ended December 31, 2015, 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] | For the period from January 1, 2014 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. |
Net Income Per Share (Details T
Net Income Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Conversion of Stock, Shares Converted | 13,877,552 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 12,173,291 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Preferred, Amount | 1,400,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,500,000 | 3,000,000 | 800,000 |
Income Taxes Domestic and Forei
Income Taxes Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Domestic operations | $ (20,795) | $ (16,487) | $ 53,153 |
Foreign operations | 228,794 | 253,389 | 305,095 |
Income before income taxes | 207,999 | 236,902 | 358,248 |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | 623 | 465 | 798 |
State | (490) | 1,076 | 2,047 |
Foreign | 64,357 | 70,900 | 74,618 |
Current income tax | 64,490 | 72,441 | 77,463 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Domestic operations | 3,723 | (1,231) | (127,114) |
Foreign operations | (5,405) | (21,486) | (12,374) |
Deferred income tax | (1,682) | (22,717) | (139,488) |
Provision for (benefit from) income taxes | $ 62,808 | $ 49,724 | $ (62,025) |
Income Taxes Reconciliation (De
Income Taxes Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Reconciliation At Federal Statutory Rate [Abstract] | |||
Taxes calculated at the U.S. federal statutory rate | $ 72,800 | $ 82,940 | $ 125,386 |
State taxes | 496 | 768 | 2,323 |
Effect of tax rates on international operations | (25,813) | (34,513) | (34,619) |
Change in enacted international tax rates | (2,434) | (4,415) | (149) |
Changes in valuation allowance and tax reserves | 10,587 | 1,784 | (156,071) |
Other | 7,172 | 3,160 | 1,105 |
Provision for (benefit from) income taxes | $ 62,808 | $ 49,724 | $ (62,025) |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ||
Post-retirement benefit obligation | $ 66,911 | $ 75,045 |
Expenses currently not deductible | 105,780 | 109,283 |
Net operating loss carryforward | 211,205 | 211,627 |
Tax credit carryforward | 10,882 | 10,343 |
Depreciation and amortization | 7,879 | 7,533 |
Other | 14,957 | 25,379 |
Valuation allowance | (153,740) | (161,030) |
Deferred tax assets, net | 263,874 | 278,180 |
Depreciation and amortization | (292,906) | (317,464) |
Post-retirement benefit obligation | (14,990) | (13,581) |
Inventory | (18,309) | (17,122) |
Other | (178,166) | (174,367) |
Total deferred tax liabilities | (504,371) | (522,534) |
Total deferred tax liabilities, net | $ (240,497) | $ (244,354) |
Income Taxes Gross Unrecognized
Income Taxes Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of unrecognized tax beneits [Abstract] | |||
Beginning Balance | $ 52,878 | $ 77,525 | |
Addition for tax positions taken in prior periods | 6,552 | 3,924 | |
Addition for tax positions taken in current period | 1,418 | 924 | |
Reduction for tax positions taken in prior periods | [1] | (2,248) | (23,616) |
Other, including the impact of foreign currency translation | 608 | (5,879) | |
Ending Balance | $ 59,208 | $ 52,878 | |
[1] | Includes reductions for lapses in statute of limitations. |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets, Valuation Allowance | $ 153,740 | $ 161,030 | |
Operating Loss Carryforwards | 326,900 | ||
Alternative Minimum Tax Credit Carryforwards | 9,000 | ||
Undistributed Earnings of Foreign Subsidiaries | 1,600,000 | ||
Unrecognized Tax Benefits | 59,208 | 52,878 | $ 77,525 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 8,600 | 6,400 | |
Unrecognized Tax Benefits To Offset Interest and Penalties | 100 | 100 | |
Unrecognized Tax Benefits, Net | 59,100 | 52,800 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 2,700 | $ 1,800 | $ 2,500 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 3,400 | ||
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Allowances and Reserves, Charged to Cost and Expense, Net | 6,200 | ||
Valuation Allowances and Reserves, Reduction recognized in OCI | (1,800) | ||
Valuation Allowances And Reserves Foreign Currency Translation | $ (11,700) |
Goodwill & Intangibles Goodwill
Goodwill & Intangibles Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Goodwill [Line Items] | |||
Balance beginning of period | $ 2,817,687 | $ 2,873,023 | |
Goodwill attributable to acquisitions | 16,559 | [1] | 85,216 |
Impact of foreign currency translation and other | (270,920) | (140,552) | |
Balance end of period | 2,563,326 | 2,817,687 | |
Gas and Fluid Handling [Member] | |||
Goodwill [Line Items] | |||
Balance beginning of period | 1,426,266 | 1,428,358 | |
Goodwill attributable to acquisitions | 1,317 | [1] | 85,216 |
Impact of foreign currency translation and other | (161,710) | (87,308) | |
Balance end of period | 1,265,873 | 1,426,266 | |
Fabrication Technology [Member] | |||
Goodwill [Line Items] | |||
Balance beginning of period | 1,391,421 | 1,444,665 | |
Goodwill attributable to acquisitions | 15,242 | 0 | |
Impact of foreign currency translation and other | (109,210) | (53,244) | |
Balance end of period | $ 1,297,453 | $ 1,391,421 | |
[1] | Includes purchase accounting adjustments associated with the two gas and fluid handling acquisitions completed during the year ended December 31, 2015, pursuant to ASU No. 2015-16. See Note 4, “Acquisitions” for further discussion. |
Goodwill & Intangibles Intangib
Goodwill & Intangibles Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Intangible Assets Schedule [Line Items] | ||
Intangible Assets, Gross | $ 1,127,491 | $ 1,169,474 |
Finite-Lived Intangible Assets, Accumulated Amortization | (228,151) | (173,762) |
Customer Relationships [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 567,351 | 573,589 |
Finite-Lived Intangible Assets, Accumulated Amortization | (156,241) | (117,573) |
Acquired Technology [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 147,672 | 149,578 |
Finite-Lived Intangible Assets, Accumulated Amortization | (49,003) | (37,012) |
Backlog [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 0 | 2,575 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | (2,220) |
Other Intangible Assets [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 48,355 | 48,413 |
Finite-Lived Intangible Assets, Accumulated Amortization | (22,907) | (16,957) |
Trade Names [Member] | ||
Intangible Assets Schedule [Line Items] | ||
Indefinite-Lived Trade Names | $ 364,113 | $ 395,319 |
Goodwill & Intangibles Amortiza
Goodwill & Intangibles Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 60,620 | $ 60,629 | $ 67,052 |
Goodwill & Intangibles (Details
Goodwill & Intangibles (Details Textual) $ in Millions | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, 2017 | $ 56.2 |
Finite-Lived Intangible Assets, Amortization Expense, 2018 | 53.6 |
Finite-Lived Intangible Assets, Amortization Expense, 2019 | 49.1 |
Finite-Lived Intangible Assets, Amortization Expense, 2020 | 46.5 |
Finite-Lived Intangible Assets, Amortization Expense, 2021 | $ 44.2 |
Property, Plant and Equipment56
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,002,603 | $ 1,013,476 |
Accumulated depreciation | (398,389) | (368,940) |
Property, plant and equipment, net | 604,214 | 644,536 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,779 | 44,746 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 323,279 | 327,122 |
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 | $ 540,617 | 546,052 |
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 | $ 95,928 | $ 95,556 |
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 |
Property, Plant and Equipment57
Property, Plant and Equipment, Net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Non-cash impairment provisions | $ 7,268 | $ 11,391 | |
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 79,200 | 90,700 | $ 94,500 |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 13,500 | 14,300 | 15,700 |
Asset Impairments Related to Facility Closures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Non-cash impairment provisions | $ 4,500 | $ 9,300 | $ 4,600 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 148,513 | $ 160,640 |
Work in process | 75,331 | 68,541 |
Finished goods | 237,507 | 243,209 |
Inventory, Gross | 461,351 | 472,390 |
Less: customer progress payments | (14,624) | (15,876) |
Less: allowance for excess, slow-moving and obsolete inventory | (42,870) | (36,128) |
Inventories, net | $ 403,857 | $ 420,386 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Less: current portion | $ (5,406) | $ (5,792) |
Long-term debt | 1,286,738 | 1,411,755 |
Total Debt | 1,292,144 | 1,417,547 |
Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 678,286 | 713,175 |
Trade receivables financing arrangement [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | 63,399 | 75,800 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 550,459 | $ 628,572 |
Debt Schedule of Debt Maturitie
Debt Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
2,017 | [1] | $ 5,406 | |
2,018 | [1] | 4,676 | |
2,019 | [1] | 2,447 | |
2,020 | [1] | 1,285,704 | |
Total contractual maturities | 1,298,233 | ||
Debt discount | (6,089) | ||
Total debt | $ 1,292,144 | $ 1,417,547 | |
[1] | Represents scheduled payments required under the DB Credit Agreement through June 5, 2020, as well as the contractual maturities of other debt outstanding as of December 31, 2016, and reflects management’s intention to repay scheduled maturities of the term loans outstanding under the DB Credit Agreement and the trade receivables financing arrangement (if not extended) with proceeds from the revolving credit facility. |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 05, 2015 | |
Debt Instrument, Carrying Value | $ 1,298,233 | ||
Write off of Deferred Debt Issuance Cost | $ 4,700 | ||
Expenses Incurred During Refinance Of Debt | 400 | ||
Debt discount | 5,600 | ||
Deferred Finance Costs, Net | 5,900 | $ 8,100 | |
Letters of Credit, Maximum Capacity | 758,400 | ||
Letters of Credit, Amount Outstanding | $ 374,500 | ||
Term Loans [Member] | |||
Debt Instrument, Carrying Value | $ 750,000 | ||
Trade receivables financing arrangement [Member] | |||
Long-term Debt, Weighted Average Interest Rate | 1.61% | ||
Trade receivables financing arrangement, maximum borrowing capacity | $ 80,000 | ||
Trade receivables financing arrangement outstanding borrowings | 63,400 | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,300,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 859,500 | ||
Swingline Subfacility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||
DB credit agreement [Member] | |||
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% | ||
Long-term Debt, Weighted Average Interest Rate | 2.11% | ||
Debt Instrument, Covenant Description | Certain U.S. subsidiaries of the Company have agreed to guarantee the obligations of the Company under the DB Credit Agreement. The DB 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 DB 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, 2016, the Company is in compliance with the covenants under the DB Credit Agreement. | ||
Bilateral agreements [Member] | |||
Debt Instrument, Carrying Value | $ 97,500 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 263,400 | ||
Long-term Debt, Weighted Average Interest Rate | 1.40% |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||||
Beginning Balance | $ (686,715) | $ (443,691) | $ (46,600) | ||
Acquisition of shares held by noncontrolling interest | (942) | ||||
Net actuarial gain (loss) | 4,815 | 28,349 | (89,379) | ||
Foreign currency translation adjustment | (308,675) | (293,646) | (346,524) | ||
(Loss) gain on long-term intra-entity foreign currency transactions | (22,530) | (550) | 2,096 | ||
Gain (loss) on net investment hedges | 18,537 | 14,537 | 39,374 | ||
Unrealized (loss) gain on cash flow hedges | (789) | (2,873) | (8,932) | ||
Other | 0 | 3,817 | 1,934 | ||
Other comprehensive (loss) income before reclassifications | (308,642) | (250,366) | (401,431) | ||
Amounts reclassified from Accumulated other comprehensive loss | 7,012 | 7,342 | 5,282 | ||
Net current period Other comprehensive (loss) income | (301,630) | (243,024) | (396,149) | ||
Ending balance | (988,345) | (686,715) | (443,691) | ||
Net Unrecognized Pension And Other Post-Retirement Benefit Cost [Member] | |||||
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||||
Beginning Balance | (193,258) | (240,513) | (163,092) | ||
Acquisition of shares held by noncontrolling interest | 0 | ||||
Net actuarial gain (loss) | 4,815 | 28,349 | (89,379) | ||
Foreign currency translation adjustment | 2,620 | 7,747 | 4,742 | ||
(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 | 7,435 | 39,913 | (82,703) | ||
Amounts reclassified from Accumulated other comprehensive loss | [1] | 4,634 | 7,342 | 5,282 | |
Net current period Other comprehensive (loss) income | 12,069 | 47,255 | (77,421) | ||
Ending balance | (181,189) | (193,258) | (240,513) | ||
Foreign Currency Translation Adjustment [Member] | |||||
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||||
Beginning Balance | (528,620) | (227,059) | 123,021 | ||
Acquisition of shares held by noncontrolling interest | (942) | ||||
Net actuarial gain (loss) | 0 | 0 | 0 | ||
Foreign currency translation adjustment | (312,017) | (301,011) | (351,234) | ||
(Loss) gain on long-term intra-entity foreign currency transactions | (22,530) | (550) | 2,096 | ||
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 | (334,547) | (301,561) | (349,138) | ||
Amounts reclassified from Accumulated other comprehensive loss | 2,378 | [2] | 0 | 0 | |
Net current period Other comprehensive (loss) income | (332,169) | (301,561) | (349,138) | ||
Ending balance | (860,789) | (528,620) | (227,059) | ||
Unrealized (Loss) Gain On Hedging Activities [Member] | |||||
Changes in Accumulated Other Comprehensive Loss [Line Items] | |||||
Beginning Balance | 35,163 | 23,881 | (6,529) | ||
Acquisition of shares held by noncontrolling interest | 0 | ||||
Net actuarial gain (loss) | 0 | 0 | 0 | ||
Foreign currency translation adjustment | 722 | (382) | (32) | ||
(Loss) gain on long-term intra-entity foreign currency transactions | 0 | 0 | 0 | ||
Gain (loss) on net investment hedges | 18,537 | 14,537 | 39,374 | ||
Unrealized (loss) gain on cash flow hedges | (789) | (2,873) | (8,932) | ||
Other | 0 | 0 | |||
Other comprehensive (loss) income before reclassifications | 18,470 | 11,282 | 30,410 | ||
Amounts reclassified from Accumulated other comprehensive loss | 0 | 0 | 0 | ||
Net current period Other comprehensive (loss) income | 18,470 | 11,282 | 30,410 | ||
Ending balance | $ 53,633 | $ 35,163 | $ 23,881 | ||
[1] | Included in the computation of net periodic benefit cost. See Note 13, “Defined Benefit Plans” for additional details. | ||||
[2] | Foreign currency translation adjustment reclassification is the result of deconsolidation of the Company’s Venezuelan operations during the year ended December 31, 2016. See Note 2, “Summary of Significant Accounting Policies” for further discussion. |
Equity Stock-based compensation
Equity Stock-based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Based Compensation [Abstract] | |||
Stock-based compensation expense | $ 19,020 | $ 16,321 | $ 17,580 |
Deferred tax benefit | $ 6,271 | $ 5,342 | $ 4,054 |
Equity Option Valuation Assumpt
Equity Option Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Assumptions [Abstract] | |||
Expected period that options will be outstanding (in years) | 4 years 11 months 11 days | 5 years 6 days | 4 years 10 months 13 days |
Interest rate (based on U.S. Treasury yields at the time of grant) | 1.41% | 1.62% | 1.62% |
Volatility | 42.50% | 28.75% | 34.67% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of options granted | $ 9.47 | $ 11.87 | $ 22.65 |
Equity Option Award Activity (D
Equity Option Award Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)$ / sharesshares | ||
Option Activity [Abstract] | ||
Number of options, Outstanding at January 1, 2016 | shares | 4,261,590 | |
Number of options, Granted | shares | 1,332,729 | |
Number of options, Exercised | shares | (119,722) | |
Number of options, Forfeited | shares | (184,337) | |
Number of options, Expired | shares | (962,433) | |
Number of options, Outstanding at December 31, 2016 | shares | 4,327,827 | |
Number of options, Vested or expected to vest at December 31, 2015 | shares | 4,278,204 | |
Number of options, Exercisable at December 31, 2016 | shares | 1,219,274 | |
Weighted-average exercise price, Outstanding at January 1, 2016 | $ / shares | $ 41.07 | |
Weighted-average exercise price, Granted | $ / shares | 24.60 | |
Weighted-average exercise price, Exercised | $ / shares | 18.43 | |
Weighted-average exercise price, Forfeited | $ / shares | 46.83 | |
Weighted-average exercise price, Expired | $ / shares | 36.09 | |
Weighted-average exercise price, Outstanding at December 31, 2016 | $ / shares | 37.49 | |
Weighted-average exercise price, Vested or expected to vest at December 31, 2016 | $ / shares | 37.51 | |
Weighted-average exercise price, Exercisable at December 31, 2016 | $ / shares | $ 39.85 | |
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2016 | 5 years 5 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at December 31, 2016 | 5 years | |
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2016 | 3 years 6 months 6 days | |
Aggregate intrinsic value, Outstanding at December 31, 2016 | $ | $ 23,782 | [1] |
Aggregate intrinsic value, Vested or expected to vest at December 31, 2016 | $ | 23,444 | [1] |
Aggregate intrinsic value, Exercisable at December 31, 2016 | $ | $ 6,139 | [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, 2016$ / sharesshares | |
Performance Based Restricted Stock Units (PRSUs) [Member] | |
Award Activity Rollforward [Line Items] | |
Number of units, Nonvested at January 1, 2016 | shares | 523,011 |
Number of units, Granted | shares | 202,862 |
Number of units, Vested | shares | (96,794) |
Number of units, Forefeited | shares | (1,763) |
Number of units, Nonvested at December 31, 2016 | shares | 627,316 |
Weighted-average grant date fair value, Nonvested at January 1, 2016 | $ / shares | $ 40.19 |
Weighted-average grant date fair value, Granted | $ / shares | 24.30 |
Weighted-average grant date fair value, Vested | $ / shares | 32.56 |
Weighted-average grant date fair value, Forfeited | $ / shares | 33.35 |
Weighted-average grant date fair value, Nonvested at December 31, 2016 | $ / shares | $ 36.25 |
Restricted Stock Units (RSUs) [Member] | |
Award Activity Rollforward [Line Items] | |
Number of units, Nonvested at January 1, 2016 | shares | 413,521 |
Number of units, Granted | shares | 310,826 |
Number of units, Vested | shares | (79,140) |
Number of units, Forefeited | shares | (61,309) |
Number of units, Nonvested at December 31, 2016 | shares | 583,898 |
Weighted-average grant date fair value, Nonvested at January 1, 2016 | $ / shares | $ 44.20 |
Weighted-average grant date fair value, Granted | $ / shares | 25.57 |
Weighted-average grant date fair value, Vested | $ / shares | 45.62 |
Weighted-average grant date fair value, Forfeited | $ / shares | 39.87 |
Weighted-average grant date fair value, Nonvested at December 31, 2016 | $ / shares | $ 34.54 |
Equity Textuals (Details)
Equity Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Text [Abstract] | |||
Common stock-based award activity (in shares) | 293,836 | 676,126 | 252,674 |
Conversion of Stock, Shares Converted | 13,877,552 | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 12,173,291 | ||
Fractional Share, Cash in Lieu, Share Amount | 0.22807018 | ||
Preferred Stock Conversions, Cash Payment Upon Conversion | $ 23,400 | ||
Preferred stock conversion inducement payment | $ 0 | $ 0 | $ 19,565 |
Stock Issued During Period, Shares, New Issues | 9,200,000 | ||
Stock Issued During Period, Value, New Issues | $ 632,500 | ||
Stock issuance costs | $ 22,100 | ||
Contribution to defined benefit pension plan (in shares) | 66,000 | 183,000 | |
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 | $ 20,812 | $ 27,367 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 600 | (22,800) | $ (12,400) |
Unrecognized stock-based compensation expense | $ 45,900 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 5 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 6,500 | 21,800 | 13,300 |
Stock Option Plan 2016 Description | Under the 2016 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 | $ 6,500 | $ 8,900 | $ 6,400 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |||
Accrued payroll | $ 102,960 | $ 99,383 | |
Accrued taxes | 38,367 | 51,834 | |
Accrued asbestos-related liability | [1] | 51,166 | 48,780 |
Warranty liability - current portion | 30,710 | 36,128 | |
Accrued restructuring liability - current portion | 13,184 | 12,918 | |
Accrued third-party commissions | 8,697 | 10,275 | |
Other | 99,274 | 86,751 | |
Accrued liabilities | $ 344,358 | $ 346,069 | |
[1] | 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. |
Accrued Liabilities Restructuri
Accrued Liabilities Restructuring Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | ||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | $ 13,718 | [1] | $ 23,010 | ||
Restructuring provisions before non-cash charges | 66,902 | 49,786 | |||
Non-cash charges | 7,268 | 11,391 | |||
Provisions | 74,170 | 61,177 | |||
Payments | (66,562) | (57,734) | |||
Foreign Currency Translation | (672) | (1,344) | |||
Balance at End of Period | 13,386 | [2] | 13,718 | [1] | |
Gas and Fluid Handling [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | 6,636 | 8,996 | |||
Restructuring provisions before non-cash charges | 36,537 | 28,958 | |||
Non-cash charges | 5,945 | 2,569 | |||
Provisions | 42,482 | 31,527 | |||
Payments | (34,344) | (30,637) | |||
Foreign Currency Translation | (339) | (681) | |||
Balance at End of Period | 8,490 | 6,636 | |||
Gas and Fluid Handling [Member] | Termination Benefits [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | [3] | 3,979 | 7,551 | ||
Provisions | [3] | 24,123 | 19,927 | ||
Payments | [3] | (21,126) | (22,994) | ||
Foreign Currency Translation | [3] | (200) | (505) | ||
Balance at End of Period | [3] | 6,776 | 3,979 | ||
Gas and Fluid Handling [Member] | Facility Closure Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | [4] | 2,657 | 1,445 | ||
Provisions | [4] | 12,414 | 9,031 | ||
Payments | [4] | (13,218) | (7,643) | ||
Foreign Currency Translation | [4] | (139) | (176) | ||
Balance at End of Period | [4] | 1,714 | 2,657 | ||
Fabrication Technology [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | 6,457 | 13,092 | |||
Restructuring provisions before non-cash charges | 30,365 | 20,828 | |||
Non-cash charges | 1,323 | 8,822 | |||
Provisions | 31,688 | 29,650 | |||
Payments | (31,874) | (26,843) | |||
Foreign Currency Translation | (255) | (620) | |||
Balance at End of Period | 4,693 | 6,457 | |||
Fabrication Technology [Member] | Termination Benefits [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | [3] | 6,031 | 11,155 | ||
Provisions | [3] | 23,104 | 15,507 | ||
Payments | [3] | (25,263) | (20,196) | ||
Foreign Currency Translation | [3] | (160) | (435) | ||
Balance at End of Period | [3] | 3,712 | 6,031 | ||
Fabrication Technology [Member] | Facility Closure Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | [4] | 426 | 1,937 | ||
Provisions | [4] | 7,261 | 5,321 | ||
Payments | [4] | (6,611) | (6,647) | ||
Foreign Currency Translation | [4] | (95) | (185) | ||
Balance at End of Period | [4] | 981 | 426 | ||
Corporate and Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | 625 | 922 | |||
Provisions | 0 | 0 | |||
Payments | (344) | (254) | |||
Foreign Currency Translation | (78) | (43) | |||
Balance at End of Period | 203 | 625 | |||
Corporate and Other [Member] | Facility Closure Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at Beginning of Period | [4] | 625 | 922 | ||
Provisions | [4] | 0 | 0 | ||
Payments | [4] | (344) | (254) | ||
Foreign Currency Translation | [4] | (78) | (43) | ||
Balance at End of Period | [4] | $ 203 | $ 625 | ||
[1] | 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. | ||||
[2] | As of December 31, 2016, $13.2 million and $0.2 million of the Company’s restructuring liability was included in Accrued liabilities and Other liabilities, respectively. | ||||
[3] | Includes severance and other termination benefits, including outplacement services. The Company recognizes the cost of involuntary termination benefits at the communication date or ratably over any remaining expected future service period. Voluntary termination benefits are recognized as a liability and an expense when employees accept the offer and the amount can be reasonably estimated. | ||||
[4] | Includes the cost of relocating associates, relocating equipment and lease termination expense in connection with the closure of facilities. |
Accrued Liabilities (Details Te
Accrued Liabilities (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities [Abstract] | ||
Accrued restructuring liability - current portion | $ 13,184 | $ 12,918 |
Accrued restructuring liability - noncurrent portion | 200 | $ 800 |
Restructuring and Related Cost, Expected Cost | $ 45,000 |
Defined Benefit Plans Defined71
Defined Benefit Plans Defined Benefit Plans Obligation and Asset Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Pension Benefits [Member] | ||||
Projected benefit obligation, beginning of year | $ 1,550,643 | $ 1,765,493 | ||
Acquisitions | 0 | 31,914 | ||
Service cost | 4,059 | 4,612 | $ 4,883 | |
Interest cost | 51,638 | 54,807 | 70,469 | |
Actuarial loss (gain) | 126,505 | (93,878) | ||
Foreign exchange effect | (158,453) | (77,854) | ||
Benefits paid | (97,488) | (105,589) | ||
Settlements | (1,591) | (29,811) | ||
Other | (37) | 949 | ||
Projected benefit obligation, end of year | 1,475,276 | 1,550,643 | 1,765,493 | |
Accumulated benefit obligation, end of year | 1,452,000 | 1,530,327 | ||
Fair value of plan assets, beginning of year | 1,337,405 | 1,469,103 | ||
Acquisitions | 0 | 28,591 | ||
Actual return on plan assets | 191,562 | (9,390) | ||
Employer contribution | [1] | 32,347 | 45,594 | |
Foreign exchange effect | (164,316) | (63,060) | ||
Settlements | (1,591) | (28,399) | ||
Other | (19) | 555 | ||
Fair value of plan assets, end of year | 1,297,900 | 1,337,405 | 1,469,103 | |
Funded status, end of year | (177,376) | (213,238) | ||
Non-current assets | 85,828 | 73,914 | ||
Current liabilities | (5,073) | (4,741) | ||
Non-current liabilities | (258,131) | (282,411) | ||
Total | (177,376) | (213,238) | ||
Other Post-Retirement Benefits [Member] | ||||
Projected benefit obligation, beginning of year | 33,093 | 35,085 | ||
Acquisitions | 0 | 4,983 | ||
Service cost | 39 | 33 | 155 | |
Interest cost | 1,038 | 1,170 | 1,304 | |
Actuarial loss (gain) | (5,689) | (6,410) | ||
Foreign exchange effect | 0 | 0 | ||
Benefits paid | (2,186) | (1,942) | ||
Settlements | 0 | 0 | ||
Other | 0 | 174 | ||
Projected benefit obligation, end of year | 26,295 | 33,093 | 35,085 | |
Accumulated benefit obligation, end of year | 26,295 | 33,093 | ||
Fair value of plan assets, beginning of year | 0 | 0 | ||
Acquisitions | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contribution | [1] | 2,186 | 1,942 | |
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 | (26,295) | (33,093) | ||
Non-current assets | 0 | 0 | ||
Current liabilities | (2,174) | (2,915) | ||
Non-current liabilities | (24,121) | (30,178) | ||
Total | (26,295) | (33,093) | ||
Foreign Pension Benefits [Member] | ||||
Projected benefit obligation, beginning of year | 1,075,223 | 1,265,143 | ||
Service cost | 3,881 | 4,506 | 4,883 | |
Interest cost | 34,298 | 37,253 | 51,658 | |
Actuarial loss (gain) | 132,898 | (64,801) | ||
Foreign exchange effect | (158,453) | (77,854) | ||
Benefits paid | (53,028) | (60,162) | ||
Settlements | (1,591) | (29,811) | ||
Other | (35) | 949 | ||
Projected benefit obligation, end of year | 1,033,193 | 1,075,223 | 1,265,143 | |
Accumulated benefit obligation, end of year | 1,009,916 | 1,054,907 | ||
Fair value of plan assets, beginning of year | 981,249 | 1,079,497 | ||
Actual return on plan assets | 158,992 | 11,159 | ||
Employer contribution | 32,168 | 41,659 | ||
Foreign exchange effect | (164,316) | (63,060) | ||
Settlements | (1,591) | (28,399) | ||
Other | (19) | 555 | ||
Fair value of plan assets, end of year | 953,455 | 981,249 | $ 1,079,497 | |
Funded status, end of year | $ (79,738) | $ (93,974) | ||
[1] | Contributions during the year ended December 2015 include a contribution of 66,000 shares of Colfax Common stock with a value on the contribution date of approximately $3.4 million. |
Defined Benefit Plans Defined72
Defined Benefit Plans Defined Benefit Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Pension Benefits [Member] | |
2,017 | $ 82,669 |
2,018 | 81,813 |
2,019 | 80,516 |
2,020 | 80,534 |
2,021 | 80,403 |
2022- 2026 | 397,871 |
Foreign Pension Benefits [Member] | |
2,017 | 48,989 |
2,018 | 48,631 |
2,019 | 47,871 |
2,020 | 48,293 |
2,021 | 48,745 |
2022- 2026 | 251,670 |
Other Post-Retirement Benefits [Member] | |
2,017 | 2,174 |
2,018 | 2,103 |
2,019 | 1,952 |
2,020 | 1,803 |
2,021 | 1,674 |
2022- 2026 | $ 7,323 |
Defined Benefit Plans Plan Asse
Defined Benefit Plans Plan Asset Allocation (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
US Equity Securities [Member] | United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 44.00% | 42.00% |
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] | United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 15.00% | 16.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 10.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 20.00% | |
Fixed Income Securities [Member] | United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 36.00% | 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 Benefits [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 65.00% | 64.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 50.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 90.00% | |
Other [Member] | United States Pension Plan of US Entity [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 [Member] | Foreign Pension Benefits [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 2.00% | 3.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 5.00% | |
Cash and Cash Equivalents [Member] | United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 4.00% | 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 Benefits [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% | |
Equity Securities [Member] | Foreign Pension Benefits [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 32.00% | 32.00% |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 10.00% | |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 50.00% |
Defined Benefit Plans Plan As74
Defined Benefit Plans Plan Asset Allocation, Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |||
Investments [Domain] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,297,900 | $ 1,337,405 | |||
Level One [Member] | Investments [Domain] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 476,789 | 457,361 | |||
Level Two [Member] | Investments [Domain] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 377,596 | 403,495 | |||
Measured at Net Asset Value [Member] | Investments [Domain] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 443,515 | [1] | 476,549 | [2] | |
United States Pension Plan of US Entity [Member] | Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 16,517 | ||||
United States Pension Plan of US Entity [Member] | US Large Cap [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 97,530 | 100,226 | |||
United States Pension Plan of US Entity [Member] | US Small and Mid Cap [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 53,257 | 48,773 | |||
United States Pension Plan of US Entity [Member] | International Securities [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 51,656 | 58,642 | |||
United States Pension Plan of US Entity [Member] | US Government and Corporate [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 123,663 | 143,787 | |||
United States Pension Plan of US Entity [Member] | Other [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,822 | [3] | 4,728 | [4] | |
United States Pension Plan of US Entity [Member] | Level One [Member] | Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 16,517 | ||||
United States Pension Plan of US Entity [Member] | Level One [Member] | US Small and Mid Cap [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 12,116 | 7,874 | |||
United States Pension Plan of US Entity [Member] | Level One [Member] | Other [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,822 | [3] | 1,811 | [4] | |
United States Pension Plan of US Entity [Member] | Measured at Net Asset Value [Member] | US Large Cap [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 97,530 | [1] | 100,226 | [2] | |
United States Pension Plan of US Entity [Member] | Measured at Net Asset Value [Member] | US Small and Mid Cap [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 41,141 | [1] | 40,899 | [2] | |
United States Pension Plan of US Entity [Member] | Measured at Net Asset Value [Member] | International Securities [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 51,656 | [1] | 58,642 | [2] | |
United States Pension Plan of US Entity [Member] | Measured at Net Asset Value [Member] | US Government and Corporate [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 123,663 | [1] | 143,787 | [2] | |
United States Pension Plan of US Entity [Member] | Measured at Net Asset Value [Member] | Other [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | [2],[4] | 2,917 | |||
Foreign Pension Benefits [Member] | Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8,758 | 12,832 | |||
Foreign Pension Benefits [Member] | Other [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 23,565 | [3] | 29,191 | [4] | |
Foreign Pension Benefits [Member] | Equity Securities [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 307,187 | 312,852 | |||
Foreign Pension Benefits [Member] | Non US Government Bonds [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 613,945 | 626,374 | |||
Foreign Pension Benefits [Member] | Level One [Member] | Cash and Cash Equivalents [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8,758 | 12,832 | |||
Foreign Pension Benefits [Member] | Level One [Member] | Other [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 592 | [3] | 1,964 | [4] | |
Foreign Pension Benefits [Member] | Level One [Member] | Equity Securities [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 144,696 | 150,376 | |||
Foreign Pension Benefits [Member] | Level One [Member] | Non US Government Bonds [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 292,288 | 282,504 | |||
Foreign Pension Benefits [Member] | Level Two [Member] | Other [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 22,973 | [3] | 27,227 | [4] | |
Foreign Pension Benefits [Member] | Level Two [Member] | Equity Securities [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 32,966 | 32,398 | |||
Foreign Pension Benefits [Member] | Level Two [Member] | Non US Government Bonds [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 321,657 | 343,870 | |||
Foreign Pension Benefits [Member] | Measured at Net Asset Value [Member] | Equity Securities [Member] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 129,525 | [1] | $ 130,078 | [2] | |
[1] | 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. | ||||
[2] | 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. | ||||
[3] | Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. | ||||
[4] | Represents diversified portfolio funds, real estate and reinsurance contracts and money market funds. |
Defined Benefit Plans Net Perio
Defined Benefit Plans Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits [Member] | |||
Service cost | $ 4,059 | $ 4,612 | $ 4,883 |
Interest cost | 51,638 | 54,807 | 70,469 |
Amortization | 8,334 | 11,515 | 6,608 |
Settlement loss (gain) | 48 | (582) | 190 |
Other | 37 | 525 | 328 |
Expected return on plan assets | (57,169) | (58,107) | (69,055) |
Net periodic benefit cost | 6,947 | 12,770 | 13,423 |
Current year net actuarial (gain) loss | (9,523) | (33,558) | 96,005 |
Amortization of net loss | (8,362) | (11,515) | (6,608) |
Settlement loss | (74) | (952) | (190) |
Amortization of prior service cost | 28 | 0 | 0 |
Total recognized in Other comprehensive loss | (17,931) | (46,025) | 89,207 |
Other Post-Retirement Benefits [Member] | |||
Service cost | 39 | 33 | 155 |
Interest cost | 1,038 | 1,170 | 1,304 |
Amortization | (407) | 259 | 468 |
Settlement loss (gain) | 0 | 0 | 0 |
Other | 0 | 174 | 0 |
Expected return on plan assets | 0 | 0 | 0 |
Net periodic benefit cost | 670 | 1,636 | 1,927 |
Current year net actuarial (gain) loss | (5,689) | (6,410) | 5,553 |
Amortization of net loss | 655 | (11) | (220) |
Settlement loss | 0 | 0 | 0 |
Amortization of prior service cost | (248) | (248) | (248) |
Total recognized in Other comprehensive loss | (5,282) | (6,669) | 5,085 |
Foreign Pension Benefits [Member] | |||
Service cost | 3,881 | 4,506 | 4,883 |
Interest cost | 34,298 | 37,253 | 51,658 |
Amortization | 1,870 | 4,272 | 1,669 |
Settlement loss (gain) | 48 | (582) | 190 |
Other | 37 | 525 | 328 |
Expected return on plan assets | (32,596) | (32,921) | (44,287) |
Net periodic benefit cost | 7,538 | 13,053 | 14,441 |
Current year net actuarial (gain) loss | 4,867 | (50,216) | 38,904 |
Amortization of net loss | (1,898) | (4,272) | (1,669) |
Settlement loss | (74) | (952) | (190) |
Amortization of prior service cost | 28 | 0 | 0 |
Total recognized in Other comprehensive loss | $ 2,923 | $ (55,440) | $ 37,045 |
Defined Benefit Plans Defined76
Defined Benefit Plans Defined Benefit Plan, Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits [Member] | ||
Net actuarial loss (gain) | $ 221,294 | $ 239,225 |
Prior service cost | 0 | 0 |
Total | 221,294 | 239,225 |
Net Actuarial Loss Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | 10,630 | |
Prior Service Cost Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | 0 | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 10,630 | |
Other Post-Retirement Benefits [Member] | ||
Net actuarial loss (gain) | (6,878) | (1,845) |
Prior service cost | 310 | 559 |
Total | (6,568) | $ (1,286) |
Net Actuarial Loss Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | (649) | |
Prior Service Cost Estimated To Be Recognized As A Component of Net Periodic Benefit Cost in the Next Fiscal Year | 248 | |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ (401) |
Defined Benefit Plans Key Econo
Defined Benefit Plans Key Economic Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
All Plans [Member] | Pension Benefits [Member] | |||
Weighted-average discount rate, benefit obligation | 2.90% | 3.60% | |
Weighted-average discount rate, net periodic benefit cost | 3.60% | 3.30% | 4.40% |
Weighted-average expected return on plan assets, net periodic benefit cost | 4.80% | 4.70% | 5.40% |
All Plans [Member] | Other Post-Retirement Benefits [Member] | |||
Weighted-average discount rate, benefit obligation | 3.90% | 4.00% | |
Weighted-average discount rate, net periodic benefit cost | 4.00% | 3.60% | 4.40% |
Foreign Plans [Member] | Pension Benefits [Member] | |||
Weighted-average discount rate, benefit obligation | 2.60% | 3.50% | |
Weighted-average rate of increase in compensation levels for active foreign plans, benefit obligation | 1.60% | 1.50% | |
Weighted-average discount rate, net periodic benefit cost | 3.50% | 3.30% | 4.40% |
Weighted-average expected return on plan assets, net periodic benefit cost | 4.10% | 3.90% | 4.90% |
Weighted-average rate of increase in compensation levels for active foreign plans, net periodic benefit cost | 1.50% | 1.60% | 1.70% |
Defined Benefit Plans Health Ca
Defined Benefit Plans Health Care Assumption Effect (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 99 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | (80) |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 2,400 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (1,951) |
Defined Benefit Plans Details T
Defined Benefit Plans Details Textual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Contribution to defined benefit pension plan (in shares) | 66,000 | 183,000 | |
Stock Issued During Period, Value, Employee Benefit Plan | $ 3,428 | $ 11,850 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | $ 600,000 | 1,000,000 | |
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 400,000 | 700,000 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Benefit Obligation | 600,000 | 1,000,000 | |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 400,000 | 700,000 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 30,100 | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 6.20% | ||
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 5.25% 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 | $ 22,900 | 26,500 | $ 25,300 |
All Plans [Member] | |||
Stock Issued During Period, Value, Employee Benefit Plan | $ 3,400 |
Financial Instruments and Fai80
Financial Instruments and Fair Value Measurements Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash equivalents | $ 24,603 | $ 22,516 |
Deferred Compensation Plan Assets | 4,586 | 4,000 |
Deferred Compensation Liability, Current and Noncurrent | 4,586 | 4,000 |
Assets, Fair Value Disclosure | 35,947 | 30,060 |
Liabilities, Fair Value Disclosure | 17,595 | 11,787 |
Level One [Member] | ||
Cash equivalents | 24,603 | 22,516 |
Assets, Fair Value Disclosure | 24,603 | 22,516 |
Level Two [Member] | ||
Deferred Compensation Plan Assets | 4,586 | 4,000 |
Deferred Compensation Liability, Current and Noncurrent | 4,586 | 4,000 |
Assets, Fair Value Disclosure | 11,344 | 7,544 |
Liabilities, Fair Value Disclosure | 17,595 | 11,787 |
Customer Sales Contracts [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 992 | 988 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 1,422 | 664 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 11,280 | 6,368 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 256 | 969 |
Customer Sales Contracts [Member] | Level Two [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 992 | 988 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 1,422 | 664 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 11,280 | 6,368 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 256 | 969 |
Supplier Purchase Contracts [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 4,224 | 1,554 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 120 | 338 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 469 | 322 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 1,004 | 128 |
Supplier Purchase Contracts [Member] | Level Two [Member] | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 4,224 | 1,554 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 120 | 338 |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 469 | 322 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 1,004 | $ 128 |
Financial Instruments and Fai81
Financial Instruments and Fair Value Measurements Nontional Values (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative, Notional Amount | $ 426,989 | $ 430,293 |
Not Designated as Hedging Instrument [Member] | Customer Sales Contracts [Member] | ||
Derivative, Notional Amount | 87,172 | 119,653 |
Not Designated as Hedging Instrument [Member] | Supplier Purchase Contracts [Member] | ||
Derivative, Notional Amount | 40,127 | 41,480 |
Designated as Hedging Instrument [Member] | Customer Sales Contracts [Member] | ||
Derivative, Notional Amount | 215,086 | 206,366 |
Designated as Hedging Instrument [Member] | Supplier Purchase Contracts [Member] | ||
Derivative, Notional Amount | $ 84,604 | $ 62,794 |
Financial Instruments and Fai82
Financial Instruments and Fair Value Measurements Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | $ 18,537 | $ 14,537 | $ 39,374 | |
Designated as Hedging Instrument [Member] | ||||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | [1] | 18,537 | 14,537 | 39,374 |
Customer Sales Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Unrealized Gain (Loss) on Derivatives | 1,847 | (2,350) | (4,706) | |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (4,771) | (512) | (5,776) | |
Customer Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Unrealized Gain (Loss) on Derivatives | 1,471 | 2,260 | (1,389) | |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (117) | (5,644) | (4,342) | |
Supplier Purchase Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Unrealized Gain (Loss) on Derivatives | (1,269) | (1,173) | (1,719) | |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | 2,570 | 756 | 3,386 | |
Supplier Purchase Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Unrealized Gain (Loss) on Derivatives | (1,095) | 393 | (1,304) | |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ (653) | $ 1,165 | $ 1,355 | |
[1] | The unrealized gain on net investment hedges is attributable to the change in valuation of Euro denominated debt. |
Financial Instruments and Fai83
Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) $ in Billions | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term Debt, Fair Value | $ 1.3 | $ 1.4 |
China | ||
Concentration of Credit Risk Accounts Receivable percentage | 23.00% | 20.00% |
Commitments and Contingencies C
Commitments and Contingencies Claims Rollforward (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($)Asbestos_claims | Dec. 31, 2015USD ($)Asbestos_claims | Dec. 31, 2014USD ($)Asbestos_claims | ||
Commitments and Contingencies Disclosure [Abstract] | ||||
Claims unresolved, beginning of period | [1] | 20,583 | 21,681 | 22,393 |
Claims filed | [1],[2] | 5,163 | 4,821 | 4,850 |
Claims resolved | [1],[3] | (5,179) | (5,919) | (5,562) |
Claims unresolved, end of period | [1] | 20,567 | 20,583 | 21,681 |
Average cost of resolved claims | $ | [4] | $ 8,872 | $ 6,056 | $ 7,513 |
[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. |
Commitments and Contingencies A
Commitments and Contingencies Asbestos Litigation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Long-term asbestos insurance asset | [1] | $ 293,289 | $ 312,967 |
Long-term asbestos insurance receivable | [1] | 92,269 | 96,007 |
Accrued asbestos liability | [2] | 51,166 | 48,780 |
Long-term asbestos liability | [3] | $ 330,194 | $ 350,394 |
[1] | Included in Other assets in the Consolidated Balance Sheets. | ||
[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. | ||
[3] | Included in Other liabilities in the Consolidated Balance Sheets. |
Commitments and Contingencies O
Commitments and Contingencies Operating Lease (Details 2) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 27,926 |
2,018 | 24,032 |
2,019 | 19,301 |
2,020 | 16,541 |
2,021 | 10,921 |
Thereafter | 49,831 |
Total | $ 148,552 |
Commitments and Contingencies87
Commitments and Contingencies (Details Textual) - USD ($) | Dec. 31, 2010 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Future Claims Period | 15 years | |||
Pretax Charge, Asbestos-Related | $ 1,600,000 | $ 4,100,000 | $ 6,900,000 | |
Liability for Asbestos and Environmental Claims, Gross, Incurred Loss | 8,000,000 | 20,200,000 | 14,500,000 | |
Asbestos Insurance Asset Increase | 6,400,000 | 16,100,000 | 7,600,000 | |
Asbestos Coverage Adjustment | 8,226,000 | 0 | 0 | |
Operating Leases, Rent Expense, Net | 37,800,000 | $ 39,900,000 | $ 39,800,000 | |
Purchase Obligation | $ 305,400,000 | |||
Subsidiary 1 [Member] | ||||
Indemnification Period | 20 years | |||
Future Expected Recovery Percentage | 92.00% | |||
Future Expected Asbestos Cost Percentage | 8.00% | |||
Liability for Asbestos and Environmental Claims, Gross, Payment for Claims | $ 94.9 | |||
Asbestos-Related Insurance Proceeds | 23,600,000 | |||
Funding Requirement Amount | 10,000,000 | |||
Asbestos Coverage Adjustment | 8,200,000 | |||
Estimated Insurance Recoveries | $ 73,000,000 | |||
Subsidiary 2 [Member] | ||||
Future Expected Asbestos Cost Percentage | 21.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net sales | $ 933,751 | $ 879,204 | $ 957,249 | $ 876,843 | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 3,647,047 | $ 3,967,053 | $ 4,624,476 | |
Income before income taxes | [1] | 207,999 | 236,902 | 358,248 | ||||||||
Interest expense | [1] | 30,016 | 47,743 | 51,305 | ||||||||
Restructuring and other related charges | [1] | 74,170 | 61,177 | 58,121 | ||||||||
Segment Operating Income | [1] | 312,185 | 345,822 | 467,674 | ||||||||
Depreciation, amortization and impairment charges | 143,258 | 154,542 | 174,724 | |||||||||
Capital expenditures | 63,251 | 69,877 | 84,458 | |||||||||
Equity Method Investments | 43,183 | 45,911 | 43,183 | 45,911 | ||||||||
Assets | 6,385,459 | 6,732,919 | 6,385,459 | 6,732,919 | ||||||||
Gas and Fluid Handling [Member] | ||||||||||||
Net sales | 1,846,555 | 1,981,816 | 2,329,598 | |||||||||
Segment Operating Income | 166,808 | 194,469 | 254,240 | |||||||||
Depreciation, amortization and impairment charges | 67,415 | 68,457 | 96,763 | |||||||||
Capital expenditures | 26,994 | 34,303 | 32,558 | |||||||||
Equity Method Investments | 4,966 | 3,805 | 4,966 | 3,805 | ||||||||
Assets | 3,277,713 | 3,482,471 | 3,277,713 | 3,482,471 | ||||||||
Fabrication Technology [Member] | ||||||||||||
Net sales | 1,800,492 | 1,985,237 | 2,294,878 | |||||||||
Segment Operating Income | 195,197 | 198,337 | 265,813 | |||||||||
Depreciation, amortization and impairment charges | 75,139 | 84,913 | 76,406 | |||||||||
Capital expenditures | 32,662 | 35,261 | 47,955 | |||||||||
Equity Method Investments | 38,217 | 42,106 | 38,217 | 42,106 | ||||||||
Assets | 2,983,464 | 3,157,078 | 2,983,464 | 3,157,078 | ||||||||
Corporate and Other [Member] | ||||||||||||
Segment Operating Income | (49,820) | (46,984) | (52,379) | |||||||||
Depreciation, amortization and impairment charges | 704 | 1,172 | 1,555 | |||||||||
Capital expenditures | 3,595 | 313 | $ 3,945 | |||||||||
Assets | $ 124,282 | $ 93,370 | $ 124,282 | $ 93,370 | ||||||||
[1] | The following is a reconciliation of Income before income taxes to segment operating income: |
Segment Information Net Sales b
Segment Information Net Sales by Major Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales | $ 933,751 | $ 879,204 | $ 957,249 | $ 876,843 | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 3,647,047 | $ 3,967,053 | $ 4,624,476 |
Air and Gas Handling [Member] | |||||||||||
Net sales | 1,385,261 | 1,449,115 | 1,676,180 | ||||||||
Fluid Handling [Member] | |||||||||||
Net sales | 461,294 | 532,701 | 653,418 | ||||||||
Welding and Cutting [Member] | |||||||||||
Net sales | $ 1,800,492 | $ 1,985,237 | $ 2,294,878 |
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, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net sales | $ 933,751 | $ 879,204 | $ 957,249 | $ 876,843 | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 3,647,047 | $ 3,967,053 | $ 4,624,476 | |
Property, plant and equipment, net | 604,214 | 644,536 | 604,214 | 644,536 | ||||||||
United States | ||||||||||||
Net sales | [1] | 995,190 | 1,124,883 | 1,097,864 | ||||||||
Property, plant and equipment, net | [2] | 177,831 | 179,194 | 177,831 | 179,194 | |||||||
Czech Republic | ||||||||||||
Property, plant and equipment, net | [2] | 72,776 | 75,540 | 72,776 | 75,540 | |||||||
China | ||||||||||||
Property, plant and equipment, net | [2] | 56,220 | 63,784 | 56,220 | 63,784 | |||||||
Other Foreign Locations | ||||||||||||
Net sales | [1] | 2,651,857 | 2,842,170 | $ 3,526,612 | ||||||||
Property, plant and equipment, net | [2] | $ 297,387 | $ 326,018 | $ 297,387 | $ 326,018 | |||||||
[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. |
Selected Quarterly Data - (Un91
Selected Quarterly Data - (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Dec. 31, 2015 | Sep. 25, 2015 | Jun. 26, 2015 | Mar. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Selected Quarterly Financial Information [Abstract] | |||||||||||||
Net sales | $ 933,751 | $ 879,204 | $ 957,249 | $ 876,843 | $ 1,061,464 | $ 969,144 | $ 1,025,375 | $ 911,070 | $ 3,647,047 | $ 3,967,053 | $ 4,624,476 | ||
Gross profit | 288,618 | 275,407 | 301,105 | 280,521 | 333,425 | 295,874 | 328,037 | 294,438 | 1,145,651 | 1,251,774 | 1,478,845 | ||
Net income | 42,819 | 32,199 | 43,963 | 26,210 | 48,529 | [1] | 23,545 | 58,829 | 56,275 | 145,191 | 187,178 | 420,273 | |
Net income available to Colfax Corporation common shareholders | $ 37,772 | $ 27,970 | $ 39,754 | $ 22,615 | $ 44,197 | [1] | $ 18,359 | $ 53,127 | $ 52,056 | $ 128,111 | $ 167,739 | $ 370,185 | |
Net income per share - basic and diluted | $ 0.31 | $ 0.23 | $ 0.32 | $ 0.18 | |||||||||
Net income per share - basic | $ 0.36 | [1] | $ 0.15 | $ 0.43 | $ 0.42 | $ 1.04 | $ 1.35 | $ 3.06 | |||||
Net income per share - diluted | $ 0.36 | [1] | $ 0.15 | $ 0.42 | $ 0.42 | $ 1.04 | $ 1.34 | $ 3.02 | [2] | ||||
[1] | Net income and Net income per share for the three months ended December 31, 2015, 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] | For the period from January 1, 2014 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. |