Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Curtiss Wright Corporation |
Entity Central Index Key | 26324 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | FALSE |
Entity common stock shares outstanding | 47,555,199 |
Entity well known seasoned issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net sales | ||
Product sales | $445,687 | $436,227 |
Service sales | 100,512 | 106,732 |
Total net sales | 546,199 | 542,959 |
Cost of sales | ||
Cost of product sales | 293,009 | 288,934 |
Cost of service sales | 62,094 | 69,411 |
Total cost of sales | 355,103 | 358,345 |
Gross profit | 191,096 | 184,614 |
Research and development expenses | -15,262 | -16,877 |
Selling expenses | -31,088 | -32,631 |
General and administrative expenses | -71,911 | -74,072 |
Operating income | 72,835 | 61,034 |
Interest expense | -8,996 | -9,055 |
Other income, net | 481 | 112 |
Earnings before income taxes | 64,320 | 52,091 |
Provision for income taxes | -21,097 | -15,661 |
Earnings from continuing operations | 43,223 | 36,430 |
Loss from discontinued operations, net of taxes | -27,232 | -1,266 |
Net earnings | $15,991 | $35,164 |
Earnings Per Share, Basic [Abstract] | ||
Earnings from continuing operations | $0.91 | $0.76 |
Loss from discontinued operations | ($0.57) | ($0.03) |
Basic earnings per share (usd per share) | $0.34 | $0.73 |
Earnings Per Share, Diluted [Abstract] | ||
Earnings from continuing operations | $0.89 | $0.74 |
Loss from discontinued operations | ($0.56) | ($0.02) |
Diluted earnings per share (usd per share) | $0.33 | $0.72 |
Dividends per share | $0.13 | $0.13 |
Weighted average shares outstanding: | ||
Basic (shares) | 47,724 | 47,982 |
Diluted (shares) | 48,732 | 49,130 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $15,991 | $35,164 | ||
Other comprehensive income | ||||
Foreign currency translation, net of tax (1) | -56,473 | [1] | -9,917 | [1] |
Pension and postretirement adjustments, net of tax (2) | 2,403 | [2] | 786 | [2] |
Other comprehensive income (loss), net of tax | -54,070 | -9,131 | ||
Comprehensive income (loss) | ($38,079) | $26,033 | ||
[1] | The tax benefit (expense) included in other comprehensive income (loss) for foreign currency translation adjustments for the three months ended, March 31, 2015 and 2014 were $2.2 million and ($0.3) million, respectively. | |||
[2] | The tax benefit (expense) included in other comprehensive income (loss) for pension and postretirement adjustments for the three months ended March 31, 2015 and 2014 were ($1.4) million and ($0.5) million, respectively. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $2.20 | ($0.30) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | ($1.40) | ($0.50) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $215,594 | $450,116 |
Receivables, net | 496,019 | 495,480 |
Inventories, net | 390,188 | 388,670 |
Deferred tax assets, net | 45,953 | 44,311 |
Assets held for sale | 92,169 | 147,347 |
Other current assets | 100,925 | 45,151 |
Total current assets | 1,340,848 | 1,571,075 |
Property, plant, and equipment, net | 439,305 | 458,919 |
Goodwill | 983,996 | 998,506 |
Other intangible assets, net | 337,007 | 349,227 |
Other assets | 24,243 | 21,784 |
Total assets | 3,125,399 | 3,399,511 |
Current liabilities: | ||
Current portion of long-term debt and short-term debt | 965 | 1,069 |
Accounts payable | 131,887 | 152,266 |
Accrued expenses | 109,893 | 145,938 |
Income taxes payable | 5,543 | 22,472 |
Deferred revenue | 150,655 | 176,693 |
Liabilities held for sale | 29,138 | 35,392 |
Other current liabilities | 55,260 | 38,163 |
Total current liabilities | 483,341 | 571,993 |
Long-term debt | 965,189 | 953,279 |
Deferred tax liabilities, net | 105,328 | 51,554 |
Accrued pension and other postretirement benefit costs | 68,860 | 226,687 |
Long-term portion of environmental reserves | 14,024 | 14,911 |
Other liabilities | 87,950 | 102,654 |
Total liabilities | 1,724,692 | 1,921,078 |
Stockholders' Equity | ||
Common stock, $1 par value,100,000,000 shares authorized at March 31, 2015 and December 31, 2014; 49,189,702 shares issued at March 31, 2015 and December 31, 2014; outstanding shares were 47,555,199 at March 31, 2015 and 47,904,518 at December 31, 2014 | 49,190 | 49,190 |
Additional paid in capital | 153,432 | 158,043 |
Retained earnings | 1,479,107 | 1,469,306 |
Accumulated other comprehensive loss | -182,481 | -128,411 |
Common treasury stock, at cost (1,634,503 shares at March 31, 2015 and 1,285,184 shares at December 31, 2014) | -98,541 | -69,695 |
Total stockholders' equity | 1,400,707 | 1,478,433 |
Total liabilities and stockholders' equity | $3,125,399 | $3,399,511 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $1 | $1 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 49,189,702 | 49,189,702 |
Common Stock, Shares, Outstanding | 47,555,199 | 47,904,518 |
Treasury Stock, Shares | 1,634,503 | 1,285,184 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net earnings | $15,991 | $35,164 |
Adjustments to reconcile net earnings to net cash used by operating activities: | ||
Depreciation and amortization | 25,708 | 30,952 |
(Gain)/loss on sale of businesses | -1,252 | 0 |
(Gain)/loss on fixed asset disposals | -503 | -17 |
Deferred income taxes | 491 | -2,940 |
Share-based compensation | 2,620 | 2,402 |
Impairment of assets held for sale | 40,813 | 0 |
Change in operating assets and liabilities, net of businesses acquired and divested: | ||
Accounts receivable, net | -9,993 | -10,842 |
Inventories, net | -10,178 | -14,515 |
Progress payments | -117 | -4,777 |
Accounts payable and accrued expenses | -59,046 | -42,490 |
Deferred revenue | -26,038 | -8,913 |
Income taxes payable | -15,574 | 10,871 |
Net pension and postretirement liabilities | -141,585 | -4,154 |
Other current and long-term assets and liabilities | 7,572 | -5,334 |
Net cash used for operating activities | -171,091 | -14,593 |
Cash flows from investing activities: | ||
Proceeds from sales and disposals of long lived assets | 837 | 429 |
Proceeds from divestitures | 4,010 | 0 |
Additions to property, plant, and equipment | -9,096 | -18,365 |
Acquisition of businesses, net of cash acquired | -13,228 | -32,857 |
Additional consideration of prior period acquisitions | -436 | -230 |
Net cash used for investing activities | -17,913 | -51,023 |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 1,296 | 163,483 |
Repayments of Lines of Credit | -1,400 | -164,089 |
Principal payments on debt | 0 | -80 |
Repurchases of common stock | -46,985 | -5,013 |
Proceeds from share-based compensation | 7,616 | 21,135 |
Proceeds from (Payments for) Other Financing Activities | 140 | 0 |
Excess tax benefits from share-based compensation | 3,291 | 5,409 |
Net cash (used for) provided by financing activities | -36,042 | 20,845 |
Effect of exchange-rate changes on cash | -9,476 | -2,556 |
Net decrease in cash and cash equivalents | -234,522 | -47,327 |
Cash and cash equivalents at beginning of period | 450,116 | 175,294 |
Cash and cash equivalents at end of period | 215,594 | 127,967 |
Supplemental disclosure of non-cash activities: | ||
Capital expenditures incurred but not yet paid | 502 | 1,160 |
Property and equipment acquired under build to suit transaction | $0 | $8,008 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Total | Common Stock Member | Additional Paid In Capital Member | Retained Earnings Member | Accumulated Other Comprehensive Income (Loss) Member | Treasury Stock Member |
In Thousands, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2013 | $49,190 | $150,618 | $1,380,981 | $25,259 | ($53,343) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 113,338 | |||||
Other comprehensive loss, net of tax | -153,670 | -153,670 | ||||
Dividends paid/declared | -25,013 | |||||
Restricted stock | -722 | 3,155 | ||||
Stock options exercised, net of tax | 311 | 45,049 | ||||
Other | -430 | 430 | ||||
Share-based compensation | 8,266 | 234 | ||||
Repurchases of common stock | -65,220 | |||||
Ending Balance at Dec. 31, 2014 | 1,478,433 | 49,190 | 158,043 | 1,469,306 | -128,411 | -69,695 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 15,991 | 15,991 | ||||
Other comprehensive loss, net of tax | -54,070 | -54,070 | ||||
Dividends paid/declared | -6,190 | |||||
Restricted stock | -5,691 | 8,076 | ||||
Stock options exercised, net of tax | -674 | 9,197 | ||||
Other | -572 | 572 | ||||
Share-based compensation | 2,326 | 294 | ||||
Repurchases of common stock | -46,985 | |||||
Ending Balance at Mar. 31, 2015 | $1,400,707 | $49,190 | $153,432 | $1,479,107 | ($182,481) | ($98,541) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended | ||
Mar. 31, 2015 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
BASIS OF PRESENTATION | BASIS OF PRESENTATION | ||
Curtiss-Wright Corporation and its subsidiaries (the “Corporation” or the “Company”) is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, automotive, shipbuilding, processing, oil, petrochemical, agricultural equipment, railroad, power generation, security, and metalworking industries. | |||
The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. | |||
The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements. | |||
Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. In the three month periods ended March 31, 2015 and 2014, there were no individual significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements. | |||
The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2014 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year. | |||
Changes in Segment Presentation | |||
In 2015, the Corporation revised its reportable segments as a result of previously announced discontinued operations to: Commercial/Industrial, Defense, and Power. Prior period financial information has been reclassified to conform to the current period presentation. See Note 11 for more information on the Corporation's reportable segments. | |||
Recent accounting pronouncements | |||
Standard | Description | Effect on the financial statements | |
ASU 2014-09 Revenue from contracts with customers | In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. | The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. | |
Date of adoption: January 1, 2017 | |||
ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs | In April 2015, the FASB issued guidance which changes the presentation of debt issuance costs in financial statements. An entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. | The Corporation does not expect the standard to have a significant impact on its Consolidated Financial Statements. | |
Date of adoption: January 1, 2016 |
DISCONTINUED_OPERATIONS_Notes
DISCONTINUED OPERATIONS (Notes) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | ||||||||||||||||
As part of a strategic portfolio review conducted in 2014, the Corporation had identified certain businesses it considered non-core. The Corporation considers businesses non-core when the business’ products or services do not complement its existing businesses and where the long-term growth and profitability prospects are below the Corporation’s expectations. As part of this initiative, the Corporation divested one business in the first quarter of 2015, that was previously held for sale. The results of operations of these businesses are reported as discontinued operations within our Condensed Consolidated Statements of Earnings and prior year amounts have been restated to conform to the current year presentation. | |||||||||||||||||
During the first quarter of 2015, due to continued uncertainty in the Oil & Gas markets, the Corporation recognized an impairment charge of $40 million in its Downstream Refining business. | |||||||||||||||||
The aggregate financial results of all discontinued operations for the three months ended March 31 were as follows: | |||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Net sales | $ | 34,259 | $ | 98,453 | |||||||||||||
Loss from discontinued operations before income taxes (1) | (40,112 | ) | (1,980 | ) | |||||||||||||
Income tax benefit/(expense) | 12,678 | 714 | |||||||||||||||
Gain/(loss) on sale of businesses (2) | 202 | — | |||||||||||||||
Earnings from discontinued operations | $ | (27,232 | ) | $ | (1,266 | ) | |||||||||||
(1) Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the three months ended March 31, 2015. | |||||||||||||||||
(2) In the first quarter ended March 31, 2015, the Corporation recognized aggregate after tax gain of $0.9 million on the sale of our Aviation Ground Support Equipment business which operated within the Defense segment. | |||||||||||||||||
Assets held for sale | |||||||||||||||||
During the third quarter of 2014, the Corporation committed to a plan to sell two surface technology treatment facilities, its Engineered Packaging business, as well as its Downstream Refining business. As of March 31, 2015, these businesses continue to be classified as held for sale and their results of operations are presented as discontinued operations in the Condensed Consolidated Statement of Earnings. | |||||||||||||||||
The aggregate components of the assets classified as held for sale, are as follows: | |||||||||||||||||
(In thousands) | March 31, 2015 | ||||||||||||||||
Assets held for sale: | |||||||||||||||||
Receivables, net | $ | 49,661 | |||||||||||||||
Inventories, net | 23,801 | ||||||||||||||||
Property, plant, and equipment, net | 21,231 | ||||||||||||||||
Goodwill | 39,396 | ||||||||||||||||
Other intangible assets, net | 17,524 | ||||||||||||||||
Other assets | 129 | ||||||||||||||||
Deferred tax assets, net | 14,317 | ||||||||||||||||
Reserve for assets held for sale | (73,890 | ) | |||||||||||||||
Total assets held for sale, current | $ | 92,169 | |||||||||||||||
Liabilities held for sale | |||||||||||||||||
Accounts payable | $ | 7,222 | |||||||||||||||
Accrued expenses | 4,723 | ||||||||||||||||
Deferred revenue | 14,606 | ||||||||||||||||
Other current liabilities | 2,262 | ||||||||||||||||
Other liabilities | 325 | ||||||||||||||||
Total liabilities held for sale, current | $ | 29,138 | |||||||||||||||
The following table outlines the net sales and earnings/(loss) before income taxes attributable to the assets held for sale for the three months ended March 31. All impairment charges recorded are included herein: | |||||||||||||||||
Net Sales | Earnings /(loss) before income taxes | ||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Surface Technologies - Domestic | 1,110 | 1,328 | 38 | 165 | |||||||||||||
Engineered Packaging | 4,377 | 6,148 | 105 | 1,047 | |||||||||||||
Downstream Refining | 28,191 | 27,092 | (38,929 | ) | (1,000 | ) | |||||||||||
Total included in discontinued operations | $ | 33,678 | $ | 34,568 | $ | (38,786 | ) | $ | 212 | ||||||||
Divestitures and facility closures | |||||||||||||||||
On January 9, 2015, the Corporation sold the assets of its Aviation Ground support business for £3 million ($4 million). Net sales and loss before income taxes attributable to this business for the three months ended March 31, 2014 were $7.0 million and $(0.8) million, respectively. | |||||||||||||||||
During 2014, the Corporation disposed of four businesses aggregating to cash proceeds of $153 million. The divestitures resulted in aggregate pre-tax losses in excess of $29 million, and tax benefits of approximately $6.7 million. During 2014, the Corporation also closed three international manufacturing facilities in its Surface Technologies business. Aggregate net sales and loss before income taxes attributable to 2014 divestitures and facility closures for the three months ended March 31, 2014 were $56.9 million and $1.4 million, respectively. |
ACQUISITION
ACQUISITION | 3 Months Ended |
Mar. 31, 2015 | |
Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS |
2015 Acquisitions | |
Bolt's Metallizing, Inc | |
On March 16, 2015, the Corporation acquired certain assets and assumed certain liabilities of Bolt's Metallizing, Inc. for $13.2 million in cash. The Asset Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price held back as security for potential indemnification claims against the seller. Bolt's Metallizing is a provider of thermal spray coatings for critical aerospace applications, including high velocity oxygen fuel (HVOF) and plasma spray coating capabilities. The acquired business will operate within Curtiss-Wright's Commercial/Industrial segment. | |
There have been no significant purchase price adjustments to our 2014 acquisitions since December 31, 2014. |
RECEIVABLES
RECEIVABLES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
RECEIVABLES | RECEIVABLES | |||||||
Receivables primarily include amounts billed to customers, unbilled charges on long-term contracts consisting of amounts recognized as sales but not billed, and other receivables. Substantially all amounts of unbilled receivables are expected to be billed and collected within one year. An immaterial amount of unbilled receivables are subject to retainage provisions. The amount of claims and unapproved change orders within our receivables balances are immaterial. | ||||||||
The composition of receivables is as follows: | ||||||||
(In thousands) | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Billed receivables: | ||||||||
Trade and other receivables | $ | 362,348 | $ | 363,241 | ||||
Less: Allowance for doubtful accounts | (7,251 | ) | (5,619 | ) | ||||
Net billed receivables | 355,097 | 357,622 | ||||||
Unbilled receivables: | ||||||||
Recoverable costs and estimated earnings not billed | 153,182 | 150,526 | ||||||
Less: Progress payments applied | (12,260 | ) | (12,668 | ) | ||||
Net unbilled receivables | 140,922 | 137,858 | ||||||
Receivables, net | $ | 496,019 | $ | 495,480 | ||||
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
Inventoried costs contain amounts relating to long-term contracts and programs with long production cycles, a portion of which will not be realized within one year. Long-term contract inventory includes an immaterial amount of claims or other similar items subject to uncertainty concerning their determination or realization. Inventories are valued at the lower of cost or market. The composition of inventories is as follows: | ||||||||
(In thousands) | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Raw materials | $ | 208,380 | $ | 201,998 | ||||
Work-in-process | 85,119 | 89,423 | ||||||
Finished goods and component parts | 107,670 | 103,831 | ||||||
Inventoried costs related to long-term contracts | 54,707 | 59,070 | ||||||
Gross inventories | 455,876 | 454,322 | ||||||
Less: Inventory reserves | (51,180 | ) | (51,435 | ) | ||||
Progress payments applied | (14,508 | ) | (14,217 | ) | ||||
Inventories, net | $ | 390,188 | $ | 388,670 | ||||
Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $29.4 million and $33.9 million, as of March 31, 2015 and December 31, 2014, respectively. These capitalized costs will be liquidated as production units are delivered to the customer. As of March 31, 2015 and December 31, 2014, $3.4 million and $7.2 million, respectively, are scheduled to be liquidated under existing firm orders. |
GOODWILL
GOODWILL | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill [Abstract] | ||||||||||||||||
GOODWILL | GOODWILL | |||||||||||||||
During the first quarter of 2015, the Corporation realigned its reportable segments as discussed in further in Note 11. The goodwill balances as of December 31, 2014 have been restated to reflect the change in reportable segments. | ||||||||||||||||
The changes in the carrying amount of goodwill for the three months ended March 31, 2015 are as follows: | ||||||||||||||||
(In thousands) | ||||||||||||||||
Commercial/ Industrial | Defense | Power | Consolidated | |||||||||||||
December 31, 2014 | $ | 454,092 | $ | 356,689 | $ | 187,725 | $ | 998,506 | ||||||||
Acquisitions | 6,798 | — | — | 6,798 | ||||||||||||
Goodwill adjustments | — | 1,131 | — | 1,131 | ||||||||||||
Foreign currency translation adjustment | (9,167 | ) | (12,985 | ) | (287 | ) | (22,439 | ) | ||||||||
March 31, 2015 | $ | 451,723 | $ | 344,835 | $ | 187,438 | $ | 983,996 | ||||||||
During the first quarter of 2015, the Corporation performed a goodwill impairment assessment as a result of the change in its reportable segments. The Corporation tests for goodwill impairment at the reporting unit level, which is generally one level below our reportable segments. As a result of the segment change, the Corporation performed a goodwill impairment assessment on the impacted reporting unit. Based on the results of our impairment analysis, the Corporation does not believe that an impairment exists. |
OTHER_INTANGIBLE_ASSETS_NET
OTHER INTANGIBLE ASSETS, NET | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||
OTHER INTANGIBLE ASSETS, NET | OTHER INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||
The following tables present the cumulative composition of the Corporation’s intangible assets: | |||||||||||||||||||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||
Technology | $ | 172,885 | $ | (84,615 | ) | $ | 88,270 | $ | 178,369 | $ | (84,584 | ) | $ | 93,785 | |||||||||||
Customer related intangibles | 351,160 | (125,151 | ) | 226,009 | 356,844 | (122,920 | ) | 233,924 | |||||||||||||||||
Other intangible assets | 39,164 | (16,436 | ) | 22,728 | 38,460 | (16,942 | ) | 21,518 | |||||||||||||||||
Total | $ | 563,209 | $ | (226,202 | ) | $ | 337,007 | $ | 573,673 | $ | (224,446 | ) | $ | 349,227 | |||||||||||
During the first three months of 2015, the Corporation acquired intangible assets of $5.3 million; consisting of Customer related intangibles and Other intangibles of $3.7 million and $1.6 million, respectively. | |||||||||||||||||||||||||
Total intangible amortization expense for the three months ended March 31, 2015 was $8.6 million as compared to $10.3 million in the comparable prior year period. The estimated amortization expense for the five years ending December 31, 2015 through 2019 is $33.9 million, $33.4 million, $32.3 million, $30.5 million, and $28.5 million, respectively. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
Forward Foreign Exchange and Currency Option Contracts | |||||||||||||||||
The Corporation has foreign currency exposure primarily in the United Kingdom, Europe, and Canada. The Corporation uses financial instruments, such as forward and option contracts, to hedge a portion of existing and anticipated foreign currency denominated transactions. The purpose of the Corporation’s foreign currency risk management program is to reduce volatility in earnings caused by exchange rate fluctuations. Guidance on accounting for derivative instruments and hedging activities requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets based upon quoted market prices for comparable instruments. | |||||||||||||||||
Interest Rate Risks and Related Strategies | |||||||||||||||||
The Corporation’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Corporation’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Corporation periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Corporation exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. | |||||||||||||||||
For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. | |||||||||||||||||
The notional amounts of the Corporation’s outstanding interest rate swaps designated as fair value hedges were $400 million at March 31, 2015. | |||||||||||||||||
The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: | |||||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities that the company has the ability to access. | |||||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data such as quoted prices, interest rates, and yield curves. | |||||||||||||||||
Level 3: Inputs are unobservable data points that are not corroborated by market data. | |||||||||||||||||
Based upon the fair value hierarchy, all of the forward foreign exchange contracts and interest rate swaps are valued at a Level 2. | |||||||||||||||||
Effects on Consolidated Balance Sheets | |||||||||||||||||
The location and amounts of derivative instrument fair values in the condensed consolidated balance sheet are below. | |||||||||||||||||
(In thousands) | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Assets | |||||||||||||||||
Designated for hedge accounting | |||||||||||||||||
Interest rate swaps | $ | 6,789 | $ | — | |||||||||||||
Undesignated for hedge accounting | |||||||||||||||||
Forward exchange contracts | $ | — | $ | 605 | |||||||||||||
Total asset derivatives (A) | $ | 6,789 | $ | 605 | |||||||||||||
Liabilities | |||||||||||||||||
Designated for hedge accounting | |||||||||||||||||
Interest rate swaps | $ | — | $ | 5,121 | |||||||||||||
Undesignated for hedge accounting | |||||||||||||||||
Forward exchange contracts | $ | 820 | $ | 676 | |||||||||||||
Total liability derivatives (B) | $ | 820 | $ | 5,797 | |||||||||||||
(A)Forward exchange derivatives are included in Other current assets and interest rate swap assets are included in Other assets. | |||||||||||||||||
(B)Forward exchange derivatives are included in Other current liabilities and interest rate swap liabilities are included in Other liabilities. | |||||||||||||||||
Effects on Condensed Consolidated Statements of Earnings | |||||||||||||||||
Fair value hedge | |||||||||||||||||
The location and amount of gains or losses on the hedged fixed rate debt attributable to changes in the market interest rates and the offsetting gain (loss) on the related interest rate swaps for the three months ended March 31, were as follows: | |||||||||||||||||
Gain/(Loss) on Swap | Gain/(Loss) on Borrowings | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | March 31, | March 31, | |||||||||||||||
Income Statement Classification | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Other income, net | $ | 11,910 | $ | 12,775 | $ | (11,910 | ) | $ | (12,775 | ) | |||||||
Undesignated hedges | |||||||||||||||||
The location and amount of gains and losses recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three months ended March 31, were as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(In thousands) | March 31, | ||||||||||||||||
Derivatives not designated as hedging instrument | 2015 | 2014 | |||||||||||||||
Forward exchange contracts: | |||||||||||||||||
General and administrative expenses | $ | (972 | ) | $ | (2,950 | ) | |||||||||||
Debt | |||||||||||||||||
The estimated fair value amounts were determined by the Corporation using available market information that is primarily based on quoted market prices for the same or similar issues as of March 31, 2015. Accordingly, all of the Corporation’s debt is valued at a Level 2. The fair values described below may not be indicative of net realizable value or reflective of future fair values. Furthermore, the use of different methodologies to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. | |||||||||||||||||
The carrying amount of the variable interest rate debt approximates fair value as the interest rates are reset periodically to reflect current market conditions. | |||||||||||||||||
(In thousands) | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
Industrial revenue bond, due 2023 | $ | 8,400 | $ | 8,400 | $ | 8,400 | $ | 8,400 | |||||||||
Revolving credit agreement, due 2019 | — | — | — | — | |||||||||||||
5.51% Senior notes due 2017 | 150,000 | 162,675 | 150,000 | 162,617 | |||||||||||||
3.84% Senior notes due 2021 | 100,425 | 100,425 | 99,934 | 99,934 | |||||||||||||
3.70% Senior notes due 2023 | 225,000 | 231,602 | 225,000 | 225,748 | |||||||||||||
3.85% Senior notes due 2025 | 101,132 | 101,132 | 98,360 | 98,360 | |||||||||||||
4.24% Senior notes due 2026 | 203,403 | 203,403 | 197,237 | 197,237 | |||||||||||||
4.05% Senior notes due 2028 | 76,829 | 76,829 | 74,348 | 74,348 | |||||||||||||
4.11% Senior notes due 2028 | 100,000 | 105,041 | 100,000 | 100,801 | |||||||||||||
Other debt | 965 | 965 | 1,069 | 1,069 | |||||||||||||
Total debt | $ | 966,154 | $ | 990,472 | $ | 954,348 | $ | 968,514 | |||||||||
Nonrecurring measurements | |||||||||||||||||
As discussed in Note 2. Discontinued Operations and Assets Held For Sale, the Corporation classified certain businesses as held for sale during the third quarter. In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets guidance of FASB Codification Subtopic 360–10, the carrying amount of the disposal groups were written down to their estimated fair value, less costs to sell, resulting in an impairment charge of $40.8 million, which was included in the loss from discontinued operations before income taxes for the three months ended March 31, 2015. The fair value of the disposal groups were determined primarily by using non-binding quotes. In accordance with the fair value hierarchy, the impairment charge is classified as a Level 3 measurement as it is based on significant other unobservable inputs. |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | ||||||||
The following tables are consolidated disclosures of all domestic and foreign defined pension plans as described in the Corporation’s 2014 Annual Report on Form 10-K. | |||||||||
Pension Plans | |||||||||
The components of net periodic pension cost for the three months ended March 31, 2015 and 2014 are as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Service cost | $ | 7,136 | $ | 6,370 | |||||
Interest cost | 7,491 | 7,544 | |||||||
Expected return on plan assets | (13,679 | ) | (10,413 | ) | |||||
Amortization of prior service cost | 155 | 158 | |||||||
Amortization of unrecognized actuarial loss | 3,865 | 1,483 | |||||||
Net periodic benefit cost | $ | 4,968 | $ | 5,142 | |||||
During the three months ended March 31, 2015, the Corporation made $145.0 million in contributions to the Curtiss-Wright Pension Plan. In addition, contributions of $0.7 million were made to the Corporation’s foreign benefit plans during the three months ended March 31, 2015. Contributions to the foreign benefit plans are expected to be $3.0 million in 2015. | |||||||||
Defined Contribution Retirement Plan | |||||||||
Effective January 1, 2014, all non-union employees who are not currently receiving final or career average pay benefits became eligible to receive employer contributions in the Corporation's sponsored 401(k) plan. The employer contributions include both employer match and non-elective contribution components, up to a maximum employer contribution of 6% of eligible compensation. During the three months ended March 31, 2015 and 2014, the expense relating to the plan was $4.1 million and $3.9 million, respectively. The Corporation made $8.7 million in contributions to the plan for the first quarter of 2015, and expects to make total contributions of $14.0 million in 2015. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | ||||||
Diluted earnings per share were computed based on the weighted-average number of shares outstanding plus all potentially dilutive common shares. A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows: | |||||||
(In thousands) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Basic weighted-average shares outstanding | 47,724 | 47,982 | |||||
Dilutive effect of stock options and deferred stock compensation | 1,008 | 1,148 | |||||
Diluted weighted-average shares outstanding | 48,732 | 49,130 | |||||
As of the period ended March 31, 2015 and March 31, 2014 respectively, there were no stock options outstanding that were considered anti-dilutive. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | ||||||||
Prior to the first quarter of 2015, the Corporation reported its results of operations through three segments: Commercial/Industrial, Defense, and Energy. Beginning in the first quarter of 2015, the Corporation realigned its reportable segments as a result of previously announced discontinued operations. The Energy segment was renamed Power and businesses serving the nuclear naval defense and new build (AP1000) power generation markets, which had previously operated within the Defense segment have moved to the new Power segment. The remaining oil and gas businesses that had operated within the Energy segment have joined the Commercial/Industrial segment. As result of this realignment, the Corporation's new reportable segments are: Commercial/Industrial, Defense, and Power. | |||||||||
The Commercial/Industrial reportable segment is comprised of businesses that provide a diversified offering of highly engineered products and services supporting critical applications across the aerospace, automotive and general industrial markets. The products offered include electronic throttle control devices and transmission shifters; electro-mechanical actuation control components and pressure relief management systems. | |||||||||
The Defense reportable segment provides embedded computing board level modules, integrated subsystems, turret aiming and stabilization products, and weapons handling systems to defense markets. | |||||||||
The Power segment is comprised of businesses that manufacture and service main coolant pumps, power-dense compact motors, generators, and secondary propulsion systems. We also have been able to leverage proven defense technology and engineering expertise to provide Reactor Coolant Pump (RCP) technology, pump seals, and control rod drive mechanisms for commercial nuclear power plants. Additional products include a wide range of hardware, pumps, pressure vessels, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing technologies for nuclear power plants and nuclear equipment manufacturers. | |||||||||
The Corporation's measure of segment profit or loss is operating income. Interest expense and income taxes are not reported on an operating segment basis because they are not considered in the segments’ performance evaluation by the Corporation’s chief operating decision-maker, its Chief Executive Officer. | |||||||||
Net sales and operating income by reportable segment were as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales | |||||||||
Commercial/Industrial | $ | 299,898 | $ | 302,017 | |||||
Defense | 114,352 | 113,153 | |||||||
Power | 135,135 | 130,275 | |||||||
Less: Intersegment revenues | (3,186 | ) | (2,486 | ) | |||||
Total consolidated | $ | 546,199 | $ | 542,959 | |||||
Operating income (expense) | |||||||||
Commercial/Industrial | $ | 43,289 | $ | 38,496 | |||||
Defense | 18,027 | 15,784 | |||||||
Power | 19,512 | 14,275 | |||||||
Corporate and eliminations (1) | (7,993 | ) | (7,521 | ) | |||||
Total consolidated | $ | 72,835 | $ | 61,034 | |||||
(1) Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses. | |||||||||
Adjustments to reconcile operating income to earnings before income taxes: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Total operating income | $ | 72,835 | $ | 61,034 | |||||
Interest expense | (8,996 | ) | (9,055 | ) | |||||
Other income, net | 481 | 112 | |||||||
Earnings before income taxes | $ | 64,320 | $ | 52,091 | |||||
(In thousands) | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Identifiable assets | |||||||||
Commercial/Industrial | $ | 1,534,106 | $ | 1,534,882 | |||||
Defense | 781,085 | 837,891 | |||||||
Power | 584,062 | 588,366 | |||||||
Corporate and Other | 133,977 | 291,025 | |||||||
Assets held for sale | $ | 92,169 | $ | 147,347 | |||||
Total consolidated | $ | 3,125,399 | $ | 3,399,511 | |||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
The cumulative balance of each component of accumulated other comprehensive income (loss), net of tax, is as follows: | ||||||||||||
(In thousands) | ||||||||||||
Foreign currency translation adjustments, net | Total pension and postretirement adjustments, net | Accumulated other comprehensive income (loss) | ||||||||||
December 31, 2013 | $ | 59,103 | $ | (33,844 | ) | $ | 25,259 | |||||
Current period other comprehensive income (loss) | (79,386 | ) | (74,284 | ) | (153,670 | ) | ||||||
December 31, 2014 | $ | (20,283 | ) | $ | (108,128 | ) | $ | (128,411 | ) | |||
Other comprehensive loss before reclassifications (1) | (56,473 | ) | 40 | (56,433 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss (1) | — | 2,363 | 2,363 | |||||||||
Net current period other comprehensive income (loss) | (56,473 | ) | 2,403 | (54,070 | ) | |||||||
March 31, 2015 | $ | (76,756 | ) | $ | (105,725 | ) | $ | (182,481 | ) | |||
-1 | All amounts are after tax. | |||||||||||
Details of amounts reclassified from accumulated other comprehensive income (loss) are below: | ||||||||||||
(In thousands) | ||||||||||||
Amount reclassified from Accumulated other comprehensive income (loss) | Affected line item in the statement where net earnings is presented | |||||||||||
Defined benefit pension and other postretirement benefit plans | ||||||||||||
Amortization of prior service costs | 9 | -1 | ||||||||||
Amortization of actuarial losses | (3,727 | ) | -1 | |||||||||
(3,718 | ) | Total before tax | ||||||||||
1,355 | Income tax | |||||||||||
Total reclassifications | $ | (2,363 | ) | Net of tax | ||||||||
-1 | These items are included in the computation of net periodic pension cost. See Note 9, Pension and Other Postretirement Benefit Plans. |
CONTINGENCIES_AND_COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENTS | CONTINGENCIES AND COMMITMENTS |
Legal Proceedings | |
The Corporation has been named in a number of lawsuits that allege injury from exposure to asbestos. To date, the Corporation has not been found liable for or paid any material sum of money in settlement in any case. The Corporation believes its minimal use of asbestos in its past and current operations and the relatively non-friable condition of asbestos in its products makes it unlikely that it will face material liability in any asbestos litigation, whether individually or in the aggregate. The Corporation maintains insurance coverage for these potential liabilities and believes adequate coverage exists to cover any unanticipated asbestos liability. | |
In December 2013, the Corporation, along with other unaffiliated parties, received a claim from Canadian Natural Resources Limited (CNRL) filed in the Court of Queen's Bench of Alberta, Judicial District of Calgary. The claim pertains to a January 2011 fire and explosion at a delayed coker unit at its Fort McMurray refinery that resulted in the injury of five CNRL employees, damage to property and equipment, and various forms of consequential loss, such as loss of profit, lost opportunities, and business interruption. The fire and explosion occurred when a CNRL employee bypassed certain safety controls and opened an operating coker unit. The total quantum of alleged damages arising from the incident has not been finalized, but is estimated to meet or exceed $1 billion. The Corporation maintains various forms of commercial, property and casualty, product liability, and other forms of insurance; however, such insurance may not be adequate to cover the costs associated with a judgment against us. The Corporation is currently unable to estimate an amount, or range of potential losses, if any, from this matter. The Corporation believes it has adequate legal defenses and intends to defend this matter vigorously. The Corporation's financial condition, results of operations, and cash flows, could be materially affected during a future fiscal quarter or fiscal year by unfavorable developments or outcome regarding this claim. | |
In addition to the CNRL litigation, the Corporation is party to a number of other legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material effect on the Corporation’s results of operations or financial position. | |
Letters of Credit and Other Financial Arrangements | |
The Corporation enters into standby letters of credit agreements and guarantees with financial institutions and customers primarily relating to guarantees of repayment, future performance on certain contracts to provide products and services, and to secure advance payments from certain international customers. At March 31, 2015 and December 31, 2014, there were $58.0 million and $54.3 million of stand-by letters of credit outstanding, respectively, and $13.4 million and $20.7 million of bank guarantees outstanding, respectively. As of March 31, 2015, letters of credit outstanding related to discontinuing operations were $14.6 million. In addition, the Corporation is required to provide the Nuclear Regulatory Commission financial assurance demonstrating its ability to cover the cost of decommissioning its Cheswick, Pennsylvania facility upon closure, though the Corporation does not intend to close this facility. The Corporation has provided this financial assurance in the form of a $52.9 million surety bond. | |
AP1000 Program | |
Within the Corporation’s Power segment, our Electro-Mechanical Division is the reactor coolant pump (RCP) supplier for the Westinghouse AP1000 nuclear power plants under construction in China and the United States. The terms of the AP1000 China and United States contracts include liquidated damage penalty provisions for failure to meet contractual delivery dates if the Corporation caused the delay and the delay was not excusable. On October 10, 2013, the Corporation received a letter from Westinghouse stating entitlements to the maximum amount of liquidated damages allowable under the AP1000 China contract of approximately $25 million. The Corporation would be liable for liquidated damages under the contract if certain contractual delivery dates were not met and if the Corporation was deemed responsible for the delay. As of March 31, 2015, the Corporation has not met certain contractual delivery dates under its AP 1000 contracts; however there are significant uncertainties as to which parties are responsible for the delays. The Corporation believes it has adequate legal defenses and intends to vigorously defend this matter. Given the uncertainties surrounding the responsibility for the delays no accrual has been made for this matter as of March 31, 2015. The range of possible loss is $0 to $41 million. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Basis Of Accounting | Curtiss-Wright Corporation and its subsidiaries (the “Corporation” or the “Company”) is a diversified multinational manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, automotive, shipbuilding, processing, oil, petrochemical, agricultural equipment, railroad, power generation, security, and metalworking industries. | ||
The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated. | |||
The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements. | |||
Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete long-term contracts under the percentage-of-completion accounting methods, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. In the three month periods ended March 31, 2015 and 2014, there were no individual significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements. | |||
The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2014 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year. | |||
Reclassification, Policy [Policy Text Block] | Changes in Segment Presentation | ||
In 2015, the Corporation revised its reportable segments as a result of previously announced discontinued operations to: Commercial/Industrial, Defense, and Power. Prior period financial information has been reclassified to conform to the current period presentation. See Note 11 for more information on the Corporation's reportable segments. | |||
New Accounting Pronouncements, Policy [Policy Text Block] | |||
Standard | Description | Effect on the financial statements | |
ASU 2014-09 Revenue from contracts with customers | In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. | The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. | |
Date of adoption: January 1, 2017 | |||
ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs | In April 2015, the FASB issued guidance which changes the presentation of debt issuance costs in financial statements. An entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. | The Corporation does not expect the standard to have a significant impact on its Consolidated Financial Statements. | |
Date of adoption: January 1, 2016 |
DISCONTINUED_OPERATIONS_DISCON
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Discontinued Operations, Held-for-sale [Member] | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | The aggregate components of the assets classified as held for sale, are as follows: | ||||||||||||||||
(In thousands) | March 31, 2015 | ||||||||||||||||
Assets held for sale: | |||||||||||||||||
Receivables, net | $ | 49,661 | |||||||||||||||
Inventories, net | 23,801 | ||||||||||||||||
Property, plant, and equipment, net | 21,231 | ||||||||||||||||
Goodwill | 39,396 | ||||||||||||||||
Other intangible assets, net | 17,524 | ||||||||||||||||
Other assets | 129 | ||||||||||||||||
Deferred tax assets, net | 14,317 | ||||||||||||||||
Reserve for assets held for sale | (73,890 | ) | |||||||||||||||
Total assets held for sale, current | $ | 92,169 | |||||||||||||||
Liabilities held for sale | |||||||||||||||||
Accounts payable | $ | 7,222 | |||||||||||||||
Accrued expenses | 4,723 | ||||||||||||||||
Deferred revenue | 14,606 | ||||||||||||||||
Other current liabilities | 2,262 | ||||||||||||||||
Other liabilities | 325 | ||||||||||||||||
Total liabilities held for sale, current | $ | 29,138 | |||||||||||||||
The following table outlines the net sales and earnings/(loss) before income taxes attributable to the assets held for sale for the three months ended March 31. All impairment charges recorded are included herein: | |||||||||||||||||
Net Sales | Earnings /(loss) before income taxes | ||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Surface Technologies - Domestic | 1,110 | 1,328 | 38 | 165 | |||||||||||||
Engineered Packaging | 4,377 | 6,148 | 105 | 1,047 | |||||||||||||
Downstream Refining | 28,191 | 27,092 | (38,929 | ) | (1,000 | ) | |||||||||||
Total included in discontinued operations | $ | 33,678 | $ | 34,568 | $ | (38,786 | ) | $ | 212 | ||||||||
Discontinued Operations [Member] | |||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | The aggregate financial results of all discontinued operations for the three months ended March 31 were as follows: | ||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||
Net sales | $ | 34,259 | $ | 98,453 | |||||||||||||
Loss from discontinued operations before income taxes (1) | (40,112 | ) | (1,980 | ) | |||||||||||||
Income tax benefit/(expense) | 12,678 | 714 | |||||||||||||||
Gain/(loss) on sale of businesses (2) | 202 | — | |||||||||||||||
Earnings from discontinued operations | $ | (27,232 | ) | $ | (1,266 | ) |
RECEIVABLES_Table
RECEIVABLES (Table) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Schedule Of Accounts Notes Loans And Financing Receivable | The composition of receivables is as follows: | |||||||
(In thousands) | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Billed receivables: | ||||||||
Trade and other receivables | $ | 362,348 | $ | 363,241 | ||||
Less: Allowance for doubtful accounts | (7,251 | ) | (5,619 | ) | ||||
Net billed receivables | 355,097 | 357,622 | ||||||
Unbilled receivables: | ||||||||
Recoverable costs and estimated earnings not billed | 153,182 | 150,526 | ||||||
Less: Progress payments applied | (12,260 | ) | (12,668 | ) | ||||
Net unbilled receivables | 140,922 | 137,858 | ||||||
Receivables, net | $ | 496,019 | $ | 495,480 | ||||
INVENTORIES_Table
INVENTORIES (Table) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory, Net [Abstract] | ||||||||
Schedule Of Inventory | The composition of inventories is as follows: | |||||||
(In thousands) | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
Raw materials | $ | 208,380 | $ | 201,998 | ||||
Work-in-process | 85,119 | 89,423 | ||||||
Finished goods and component parts | 107,670 | 103,831 | ||||||
Inventoried costs related to long-term contracts | 54,707 | 59,070 | ||||||
Gross inventories | 455,876 | 454,322 | ||||||
Less: Inventory reserves | (51,180 | ) | (51,435 | ) | ||||
Progress payments applied | (14,508 | ) | (14,217 | ) | ||||
Inventories, net | $ | 390,188 | $ | 388,670 | ||||
GOODWILL_Table
GOODWILL (Table) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill [Abstract] | ||||||||||||||||
Schedule Of Goodwill | The changes in the carrying amount of goodwill for the three months ended March 31, 2015 are as follows: | |||||||||||||||
(In thousands) | ||||||||||||||||
Commercial/ Industrial | Defense | Power | Consolidated | |||||||||||||
December 31, 2014 | $ | 454,092 | $ | 356,689 | $ | 187,725 | $ | 998,506 | ||||||||
Acquisitions | 6,798 | — | — | 6,798 | ||||||||||||
Goodwill adjustments | — | 1,131 | — | 1,131 | ||||||||||||
Foreign currency translation adjustment | (9,167 | ) | (12,985 | ) | (287 | ) | (22,439 | ) | ||||||||
March 31, 2015 | $ | 451,723 | $ | 344,835 | $ | 187,438 | $ | 983,996 | ||||||||
During the first quarter of 2015, the Corporation performed a goodwill impairment assessment as a result of the change in its reportable segments. The Corporation tests for goodwill impairment at the reporting unit level, which is generally one level below our reportable segments. As a result of the segment change, the Corporation performed a goodwill impairment assessment on the impacted reporting unit. Based on the results of our impairment analysis, the Corporation does not believe that an impairment exists. |
OTHER_INTANGIBLE_ASSETS_NET_Ta
OTHER INTANGIBLE ASSETS, NET (Table) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||||||||||||||||||||||
Schedule Of Intangible Assets By Major Class | The following tables present the cumulative composition of the Corporation’s intangible assets: | ||||||||||||||||||||||||
(In thousands) | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||
Technology | $ | 172,885 | $ | (84,615 | ) | $ | 88,270 | $ | 178,369 | $ | (84,584 | ) | $ | 93,785 | |||||||||||
Customer related intangibles | 351,160 | (125,151 | ) | 226,009 | 356,844 | (122,920 | ) | 233,924 | |||||||||||||||||
Other intangible assets | 39,164 | (16,436 | ) | 22,728 | 38,460 | (16,942 | ) | 21,518 | |||||||||||||||||
Total | $ | 563,209 | $ | (226,202 | ) | $ | 337,007 | $ | 573,673 | $ | (224,446 | ) | $ | 349,227 | |||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The location and amount of gains or losses on the hedged fixed rate debt attributable to changes in the market interest rates and the offsetting gain (loss) on the related interest rate swaps for the three months ended March 31, were as follows: | ||||||||||||||||
Gain/(Loss) on Swap | Gain/(Loss) on Borrowings | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | March 31, | March 31, | |||||||||||||||
Income Statement Classification | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Other income, net | $ | 11,910 | $ | 12,775 | $ | (11,910 | ) | $ | (12,775 | ) | |||||||
Undesignated hedges | |||||||||||||||||
The location and amount of gains and losses recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three months ended March 31, were as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(In thousands) | March 31, | ||||||||||||||||
Derivatives not designated as hedging instrument | 2015 | 2014 | |||||||||||||||
Forward exchange contracts: | |||||||||||||||||
General and administrative expenses | $ | (972 | ) | $ | (2,950 | ) | |||||||||||
The location and amounts of derivative instrument fair values in the condensed consolidated balance sheet are below. | |||||||||||||||||
(In thousands) | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Assets | |||||||||||||||||
Designated for hedge accounting | |||||||||||||||||
Interest rate swaps | $ | 6,789 | $ | — | |||||||||||||
Undesignated for hedge accounting | |||||||||||||||||
Forward exchange contracts | $ | — | $ | 605 | |||||||||||||
Total asset derivatives (A) | $ | 6,789 | $ | 605 | |||||||||||||
Liabilities | |||||||||||||||||
Designated for hedge accounting | |||||||||||||||||
Interest rate swaps | $ | — | $ | 5,121 | |||||||||||||
Undesignated for hedge accounting | |||||||||||||||||
Forward exchange contracts | $ | 820 | $ | 676 | |||||||||||||
Total liability derivatives (B) | $ | 820 | $ | 5,797 | |||||||||||||
(A)Forward exchange derivatives are included in Other current assets and interest rate swap assets are included in Other assets. | |||||||||||||||||
(B)Forward exchange derivatives are included in Other current liabilities and interest rate swap liabilities are included in Other liabilities. | |||||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | |||||||||||||||||
(In thousands) | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
Industrial revenue bond, due 2023 | $ | 8,400 | $ | 8,400 | $ | 8,400 | $ | 8,400 | |||||||||
Revolving credit agreement, due 2019 | — | — | — | — | |||||||||||||
5.51% Senior notes due 2017 | 150,000 | 162,675 | 150,000 | 162,617 | |||||||||||||
3.84% Senior notes due 2021 | 100,425 | 100,425 | 99,934 | 99,934 | |||||||||||||
3.70% Senior notes due 2023 | 225,000 | 231,602 | 225,000 | 225,748 | |||||||||||||
3.85% Senior notes due 2025 | 101,132 | 101,132 | 98,360 | 98,360 | |||||||||||||
4.24% Senior notes due 2026 | 203,403 | 203,403 | 197,237 | 197,237 | |||||||||||||
4.05% Senior notes due 2028 | 76,829 | 76,829 | 74,348 | 74,348 | |||||||||||||
4.11% Senior notes due 2028 | 100,000 | 105,041 | 100,000 | 100,801 | |||||||||||||
Other debt | 965 | 965 | 1,069 | 1,069 | |||||||||||||
Total debt | $ | 966,154 | $ | 990,472 | $ | 954,348 | $ | 968,514 | |||||||||
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||
Schedule Of Defined Benefit Plans Disclosures | The components of net periodic pension cost for the three months ended March 31, 2015 and 2014 are as follows: | ||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Service cost | $ | 7,136 | $ | 6,370 | |||||
Interest cost | 7,491 | 7,544 | |||||||
Expected return on plan assets | (13,679 | ) | (10,413 | ) | |||||
Amortization of prior service cost | 155 | 158 | |||||||
Amortization of unrecognized actuarial loss | 3,865 | 1,483 | |||||||
Net periodic benefit cost | $ | 4,968 | $ | 5,142 | |||||
EARNINGS_PER_SHARE_Table
EARNINGS PER SHARE (Table) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Schedule of Earnings Per Share Reconciliation | A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows: | ||||||
(In thousands) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Basic weighted-average shares outstanding | 47,724 | 47,982 | |||||
Dilutive effect of stock options and deferred stock compensation | 1,008 | 1,148 | |||||
Diluted weighted-average shares outstanding | 48,732 | 49,130 | |||||
SEGMENT_INFORMATION_Table
SEGMENT INFORMATION (Table) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule Of Segment Reporting Information By Segment | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales | |||||||||
Commercial/Industrial | $ | 299,898 | $ | 302,017 | |||||
Defense | 114,352 | 113,153 | |||||||
Power | 135,135 | 130,275 | |||||||
Less: Intersegment revenues | (3,186 | ) | (2,486 | ) | |||||
Total consolidated | $ | 546,199 | $ | 542,959 | |||||
Operating income (expense) | |||||||||
Commercial/Industrial | $ | 43,289 | $ | 38,496 | |||||
Defense | 18,027 | 15,784 | |||||||
Power | 19,512 | 14,275 | |||||||
Corporate and eliminations (1) | (7,993 | ) | (7,521 | ) | |||||
Total consolidated | $ | 72,835 | $ | 61,034 | |||||
(1) Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses. | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Total operating income | $ | 72,835 | $ | 61,034 | |||||
Interest expense | (8,996 | ) | (9,055 | ) | |||||
Other income, net | 481 | 112 | |||||||
Earnings before income taxes | $ | 64,320 | $ | 52,091 | |||||
Reconciliation Of Assets From Segment To Consolidated | |||||||||
(In thousands) | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Identifiable assets | |||||||||
Commercial/Industrial | $ | 1,534,106 | $ | 1,534,882 | |||||
Defense | 781,085 | 837,891 | |||||||
Power | 584,062 | 588,366 | |||||||
Corporate and Other | 133,977 | 291,025 | |||||||
Assets held for sale | $ | 92,169 | $ | 147,347 | |||||
Total consolidated | $ | 3,125,399 | $ | 3,399,511 | |||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||
Schedule of Comprehensive Income (Loss) | The cumulative balance of each component of accumulated other comprehensive income (loss), net of tax, is as follows: | |||||||||||
(In thousands) | ||||||||||||
Foreign currency translation adjustments, net | Total pension and postretirement adjustments, net | Accumulated other comprehensive income (loss) | ||||||||||
December 31, 2013 | $ | 59,103 | $ | (33,844 | ) | $ | 25,259 | |||||
Current period other comprehensive income (loss) | (79,386 | ) | (74,284 | ) | (153,670 | ) | ||||||
December 31, 2014 | $ | (20,283 | ) | $ | (108,128 | ) | $ | (128,411 | ) | |||
Other comprehensive loss before reclassifications (1) | (56,473 | ) | 40 | (56,433 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss (1) | — | 2,363 | 2,363 | |||||||||
Net current period other comprehensive income (loss) | (56,473 | ) | 2,403 | (54,070 | ) | |||||||
March 31, 2015 | $ | (76,756 | ) | $ | (105,725 | ) | $ | (182,481 | ) | |||
-1 | All amounts are after tax. | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Details of amounts reclassified from accumulated other comprehensive income (loss) are below: | |||||||||||
(In thousands) | ||||||||||||
Amount reclassified from Accumulated other comprehensive income (loss) | Affected line item in the statement where net earnings is presented | |||||||||||
Defined benefit pension and other postretirement benefit plans | ||||||||||||
Amortization of prior service costs | 9 | -1 | ||||||||||
Amortization of actuarial losses | (3,727 | ) | -1 | |||||||||
(3,718 | ) | Total before tax | ||||||||||
1,355 | Income tax | |||||||||||
Total reclassifications | $ | (2,363 | ) | Net of tax | ||||||||
-1 | These items are included in the computation of net periodic pension cost. See Note 9, Pension and Other Postretirement Benefit Plans. |
DISCONTINUED_OPERATIONS_DISCON1
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Narrative) (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Jan. 09, 2015 | Jan. 09, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | ||
USD ($) | USD ($) | USD ($) | Downstream [Member] | Aviation Ground Support [Member] | Aviation Ground Support [Member] | Aviation Ground Support [Member] | Surface Technologies Domestic [Member] | Facility Closing [Member] | Facility Closing [Member] | Discontinued Operations, Disposed of by Sale [Member] | |||
facility | facility | USD ($) | USD ($) | GBP (£) | USD ($) | facility | USD ($) | facility | Defense [Member] | ||||
Aviation Ground Support [Member] | |||||||||||||
USD ($) | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Number of businesses divested | 1 | 4 | 2 | 3 | |||||||||
Impairment of assets held for sale | $40,813 | $0 | $40,000 | ||||||||||
Gain on sale of business | 202 | [1] | 0 | [1] | 900 | ||||||||
Proceeds from divestitures | 4,010 | 0 | 153,000 | 4,010 | 3,000 | ||||||||
Net sales | 34,259 | 98,453 | 7,000 | 56,900 | |||||||||
Earnings /(loss) before income taxes | -40,112 | [2] | -1,980 | [2] | -800 | -1,400 | |||||||
(Gain)/loss on sale of businesses | 1,252 | 0 | 29,000 | ||||||||||
Income tax benefit/(expense) | $12,678 | $714 | $6,700 | ||||||||||
[1] | In the first quarter ended MarchB 31, 2015, the Corporation recognized aggregate after tax gain of $0.9 million on the sale of our Aviation Ground Support Equipment business which operated within the Defense segment. | ||||||||||||
[2] | Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the three months ended March 31, 2015. |
DISCONTINUED_OPERATIONS_DISCON2
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Income Statement) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Net sales | $34,259 | $98,453 | |||
Loss from discontinued operations before income taxes (1) | -40,112 | [1] | -1,980 | [1] | |
Income tax benefit/(expense) | 12,678 | 714 | 6,700 | ||
Gain/(loss) on sale of businesses (2) | 202 | [2] | 0 | [2] | |
Earnings from discontinued operations | ($27,232) | ($1,266) | |||
[1] | Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the three months ended March 31, 2015. | ||||
[2] | In the first quarter ended MarchB 31, 2015, the Corporation recognized aggregate after tax gain of $0.9 million on the sale of our Aviation Ground Support Equipment business which operated within the Defense segment. |
DISCONTINUED_OPERATIONS_DISCON3
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Balance Sheet) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale, current | $92,169 | $147,347 |
Total liabilities held for sale, current | 29,138 | 35,392 |
Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net | 49,661 | |
Inventories, net | 23,801 | |
Property, plant, and equipment, net | 21,231 | |
Goodwill | 39,396 | |
Other intangible assets, net | 17,524 | |
Other assets | 129 | |
Deferred tax assets, net | 14,317 | |
Reserve for assets held for sale | -73,890 | |
Total assets held for sale, current | 92,169 | |
Accounts payable | 7,222 | |
Accrued expenses | 4,723 | |
Deferred revenue | 14,606 | |
Other current liabilities | 2,262 | |
Other liabilities | 325 | |
Total liabilities held for sale, current | $29,138 |
DISCONTINUED_OPERATIONS_DISCON4
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Held For Sale Income Statement) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | $34,259 | $98,453 | ||
Earnings /(loss) before income taxes | -40,112 | [1] | -1,980 | [1] |
Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 33,678 | 34,568 | ||
Earnings /(loss) before income taxes | -38,786 | 212 | ||
Surface Technologies Domestic [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 1,110 | 1,328 | ||
Earnings /(loss) before income taxes | 38 | 165 | ||
Engineered Packaging [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 4,377 | 6,148 | ||
Earnings /(loss) before income taxes | 105 | 1,047 | ||
Downstream [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 28,191 | 27,092 | ||
Earnings /(loss) before income taxes | ($38,929) | ($1,000) | ||
[1] | Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the three months ended March 31, 2015. |
ACQUISITION_Narrative_Detail
ACQUISITION (Narrative) (Detail) (Bolts Metallizing Inc [Member], Commercial Industrial [Member], USD $) | 0 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 16, 2015 | Mar. 31, 2015 |
Bolts Metallizing Inc [Member] | Commercial Industrial [Member] | ||
Business Acquisition [Line Items] | ||
Effective date of acquisition | 16-Mar-15 | |
Purchase price net of cash acquired | ($13.20) |
RECEIVABLES_Detail
RECEIVABLES (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Billed receivables: | ||
Trade and other receivables | $362,348 | $363,241 |
Less: Allowance for doubtful accounts | -7,251 | -5,619 |
Net billed receivables | 355,097 | 357,622 |
Unbilled receivables: | ||
Recoverable costs and estimated earnings not billed | 153,182 | 150,526 |
Less: Progress payments applied | -12,260 | -12,668 |
Net unbilled receivables | 140,922 | 137,858 |
Receivables, net | $496,019 | $495,480 |
INVENTORIES_Detail
INVENTORIES (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw material | $208,380 | $201,998 |
Work-in-process | 85,119 | 89,423 |
Finished goods and component parts | 107,670 | 103,831 |
Inventoried costs related to long-term contracts | 54,707 | 59,070 |
Inventory, Gross | 455,876 | 454,322 |
Less: Inventory reserves | -51,180 | -51,435 |
Progress payments applied | -14,508 | -14,217 |
Inventories, net | $390,188 | $388,670 |
INVENTORIES_Narrative_Detail
INVENTORIES (Narrative) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Other inventory, capitalized costs | $29.40 | $33.90 |
Other inventory, capitalized costs to be liquidated under firm orders | $3.40 | $7.20 |
GOODWILL_Detail
GOODWILL (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
31-Dec-14 | $998,506 |
Acquisitions | 6,798 |
Goodwill adjustments | 1,131 |
Foreign currency translation adjustment | -22,439 |
31-Mar-15 | 983,996 |
Commercial Industrial [Member] | |
Goodwill [Roll Forward] | |
31-Dec-14 | 454,092 |
Acquisitions | 6,798 |
Goodwill adjustments | 0 |
Foreign currency translation adjustment | -9,167 |
31-Mar-15 | 451,723 |
Defense [Member] | |
Goodwill [Roll Forward] | |
31-Dec-14 | 356,689 |
Acquisitions | 0 |
Goodwill adjustments | 1,131 |
Foreign currency translation adjustment | -12,985 |
31-Mar-15 | 344,835 |
Power [Member] | |
Goodwill [Roll Forward] | |
31-Dec-14 | 187,725 |
Acquisitions | 0 |
Goodwill adjustments | 0 |
Foreign currency translation adjustment | -287 |
31-Mar-15 | $187,438 |
OTHER_INTANGIBLE_ASSETS_NET_De
OTHER INTANGIBLE ASSETS, NET (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | $563,209 | $573,673 |
Accumulated Amortization | -226,202 | -224,446 |
Net | 337,007 | 349,227 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 172,885 | 178,369 |
Accumulated Amortization | -84,615 | -84,584 |
Net | 88,270 | 93,785 |
Customer Related Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 351,160 | 356,844 |
Accumulated Amortization | -125,151 | -122,920 |
Net | 226,009 | 233,924 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 39,164 | 38,460 |
Accumulated Amortization | -16,436 | -16,942 |
Net | $22,728 | $21,518 |
OTHER_INTANGIBLE_ASSETS_NET_Na
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $5.30 | |
Amortization expense | 8.6 | 10.3 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 33.9 | |
Future amortization expense in year two | 33.4 | |
Future amortization expense in year three | 32.3 | |
Future amortization expense in year four | 30.5 | |
Future amortization expense in year five | 28.5 | |
Customer-Related Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 3.7 | |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $1.60 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Interest Rate Swap) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Impairment of assets held for sale | $40,813,000 | $0 |
Interest Rate Swap [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $400,000,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Balance Sheet) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Assets | $6,789 | [1] | $605 | [1] |
Liabilities | 820 | [2] | 5,797 | [2] |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Assets | 6,789 | 0 | ||
Liabilities | 0 | 5,121 | ||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Assets | 0 | 605 | ||
Liabilities | $820 | $676 | ||
[1] | Forward exchange derivatives are included in Other current assets | |||
[2] | Forward exchange derivatives are included in Other current liabilities and interest rate swap liabilities are included in Other liabilities. |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
General And Administrative Expense [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
General and administrative expenses | ($972) | ($2,950) |
Swap [Member] | Other Income [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Other income, net | 11,910 | 12,775 |
Borrowings [Member] | Other Income [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Other income, net | ($11,910) | ($12,775) |
FAIR_VALUE_OF_FINANCIAL_INSTRU5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
5.51% Senior notes due 2017 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate | 5.51% | |
3.84% Senior notes due 2021 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate | 3.84% | |
3.70% Senior notes due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate | 3.70% | |
3.85% Senior notes due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate | 3.85% | |
4.24% Senior notes due 2026 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate | 4.24% | |
4.05% Senior notes due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate | 4.05% | |
4.11% Senior Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate | 4.11% | |
Reported Value Measurement [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $966,154 | $954,348 |
Reported Value Measurement [Member] | Industrial revenue bond, due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 8,400 | 8,400 |
Reported Value Measurement [Member] | 5.51% Senior notes due 2017 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 150,000 | 150,000 |
Reported Value Measurement [Member] | 3.84% Senior notes due 2021 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 100,425 | 99,934 |
Reported Value Measurement [Member] | 3.70% Senior notes due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 225,000 | 225,000 |
Reported Value Measurement [Member] | 3.85% Senior notes due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 101,132 | 98,360 |
Reported Value Measurement [Member] | 4.24% Senior notes due 2026 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 203,403 | 197,237 |
Reported Value Measurement [Member] | 4.05% Senior notes due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 76,829 | 74,348 |
Reported Value Measurement [Member] | 4.11% Senior Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 100,000 | 100,000 |
Reported Value Measurement [Member] | Other debt [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 965 | 1,069 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 990,472 | 968,514 |
Estimate of Fair Value Measurement [Member] | Industrial revenue bond, due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 8,400 | 8,400 |
Estimate of Fair Value Measurement [Member] | 5.51% Senior notes due 2017 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 162,675 | 162,617 |
Estimate of Fair Value Measurement [Member] | 3.84% Senior notes due 2021 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 100,425 | 99,934 |
Estimate of Fair Value Measurement [Member] | 3.70% Senior notes due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 231,602 | 225,748 |
Estimate of Fair Value Measurement [Member] | 3.85% Senior notes due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 101,132 | 98,360 |
Estimate of Fair Value Measurement [Member] | 4.24% Senior notes due 2026 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 203,403 | 197,237 |
Estimate of Fair Value Measurement [Member] | 4.05% Senior notes due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 76,829 | 74,348 |
Estimate of Fair Value Measurement [Member] | 4.11% Senior Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 105,041 | 100,801 |
Estimate of Fair Value Measurement [Member] | Other debt [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | $965 | $1,069 |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) (Pension Plans Defined Benefit [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $7,136 | $6,370 |
Interest cost | 7,491 | 7,544 |
Expected return on plan assets | -13,679 | -10,413 |
Amortization of prior service cost | 155 | 158 |
Amortization of unrecognized actuarial loss | 3,865 | 1,483 |
Net postretirement benefit cost (income) | $4,968 | $5,142 |
PENSION_AND_OTHER_POSTRETIREME3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, employer contribution, maximum percentage | 6.00% | |
Defined contribution plan, expense relating to the plan | $4.10 | $3.90 |
Contributions made by the corporation to the plan | 8.7 | |
Estimated future contributions for the current fiscal year | 14 | |
Pension Plans Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 145 | |
Foreign Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 0.7 | |
Future employer contributions | $3 |
EARNINGS_PER_SHARE_Detail
EARNINGS PER SHARE (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share Reconciliation [Abstract] | ||
Basic weighted-average shares outstanding (shares) | 47,724 | 47,982 |
Dilutive effect of stock options and deferred stock compensation (shares) | 1,008 | 1,148 |
Diluted weighted-average shares outstanding (shares) | 48,732 | 49,130 |
SEGMENT_INFORMATION_Detail
SEGMENT INFORMATION (Detail) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $546,199 | $542,959 | |||
Operating income (expense) | 72,835 | 61,034 | |||
Identifiable assets | 3,125,399 | 3,399,511 | |||
Commercial Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 299,898 | 302,017 | |||
Operating income (expense) | 43,289 | 38,496 | |||
Identifiable assets | 1,534,106 | 1,534,882 | |||
Defense [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 114,352 | 113,153 | |||
Operating income (expense) | 18,027 | 15,784 | |||
Identifiable assets | 781,085 | 837,891 | |||
Power [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 135,135 | 130,275 | |||
Operating income (expense) | 19,512 | 14,275 | |||
Identifiable assets | 584,062 | 588,366 | |||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 92,169 | 147,347 | |||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | -3,186 | -2,486 | |||
Corporate and Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (expense) | -7,993 | [1] | -7,521 | [1] | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | $133,977 | $291,025 | |||
[1] | Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses. |
SEGMENT_INFORMATION_Reconcilia
SEGMENT INFORMATION (Reconciliation) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting [Abstract] | ||
Total operating income | $72,835 | $61,034 |
Interest expense | -8,996 | -9,055 |
Other income, net | 481 | 112 |
Earnings before income taxes | $64,320 | $52,091 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | ($128,411) | $25,259 | $25,259 | |
Other comprehensive income (loss) before reclassifications | -56,433 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | 2,363 | [1] | ||
Other comprehensive income (loss), net of tax | -54,070 | -9,131 | -153,670 | |
Ending balance | -182,481 | -128,411 | ||
Foreign Currency Translation Adjustments, Net [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | -20,283 | 59,103 | 59,103 | |
Other comprehensive income (loss) before reclassifications | -56,473 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | [1] | ||
Other comprehensive income (loss), net of tax | -56,473 | -79,386 | ||
Ending balance | -76,756 | -20,283 | ||
Total Pension and Postretirment Adjustments, Net [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | -108,128 | -33,844 | -33,844 | |
Other comprehensive income (loss) before reclassifications | 40 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | 2,363 | [1] | ||
Other comprehensive income (loss), net of tax | 2,403 | -74,284 | ||
Ending balance | ($105,725) | ($108,128) | ||
[1] | All amounts are after tax. |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Earnings before income taxes | $64,320 | $52,091 | |
Income tax | -21,097 | -15,661 | |
Net earnings | 15,991 | 35,164 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Total Pension and Postretirment Adjustments, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of prior service costs | 9 | [1] | |
Amortization of actuarial losses | -3,727 | [1] | |
Earnings before income taxes | -3,718 | ||
Income tax | 1,355 | ||
Net earnings | ($2,363) | ||
[1] | These items are included in the computation of net periodic pension cost. See Note 9, Pension and Other Postretirement Benefit Plans. |
CONTINGENCIES_AND_COMMITMENTS_
CONTINGENCIES AND COMMITMENTS (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Oct. 10, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Surety Bond Outstanding | $52,900,000 | |||
Damages sought | 1,000,000,000 | |||
Range of possible loss, minimum | 0 | |||
Range of possible loss, maximum | 41,000,000 | |||
Failure to Meet Contractual Obligations [Member] | ||||
Loss Contingencies [Line Items] | ||||
Damages sought | 25,000,000 | |||
Standby Letters Of Credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, outstanding | 58,000,000 | 54,300,000 | ||
FinancialStandbyLetterOfCreditMember | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, outstanding | 13,400,000 | 20,700,000 | ||
Discontinued Operations, Held-for-sale [Member] | Standby Letters Of Credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, outstanding | $14,600,000 |