Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Curtiss Wright Corporation |
Entity Central Index Key | 26,324 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity common stock shares outstanding | 46,924,807 |
Entity well known seasoned issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | ||||
Product sales | $ 439,871 | $ 457,873 | $ 885,558 | $ 894,100 |
Service sales | 105,323 | 111,325 | 205,835 | 218,057 |
Total net sales | 545,194 | 569,198 | 1,091,393 | 1,112,157 |
Cost of sales | ||||
Cost of product sales | 287,685 | 299,525 | 580,694 | 588,459 |
Cost of service sales | 75,158 | 71,442 | 137,252 | 140,853 |
Total cost of sales | 362,843 | 370,967 | 717,946 | 729,312 |
Gross profit | 182,351 | 198,231 | 373,447 | 382,845 |
Research and development expenses | (15,321) | (17,364) | (30,583) | (34,241) |
Selling expenses | (29,105) | (32,099) | (60,193) | (64,730) |
General and administrative expenses | (72,483) | (76,609) | (144,394) | (150,681) |
Operating income | 65,442 | 72,159 | 138,277 | 133,193 |
Interest expense | (8,985) | (8,986) | (17,981) | (18,041) |
Other income, net | (37) | (23) | 444 | 89 |
Earnings from continuing operations before income taxes | 56,420 | 63,150 | 120,740 | 115,241 |
Provision for income taxes | (16,299) | (20,141) | (37,396) | (35,802) |
Earnings from continuing operations | 40,121 | 43,009 | 83,344 | 79,439 |
Discontinued operations, net of taxes | ||||
Loss from discontinued operations, net of taxes | (14,384) | (6,618) | (41,616) | (7,884) |
Net earnings | $ 25,737 | $ 36,391 | $ 41,728 | $ 71,555 |
Basic earnings per share | ||||
Earnings from continuing operations (usd per share) | $ 0.85 | $ 0.90 | $ 1.76 | $ 1.65 |
Earnings from discontinued operations (usd per share) | (0.31) | (0.14) | (0.88) | (0.16) |
Total, Basic earnings per share (usd per share) | 0.54 | 0.76 | 0.88 | 1.49 |
Diluted earnings per share | ||||
Earnings from continuing operations (usd per share) | 0.83 | 0.87 | 1.72 | 1.62 |
Earnings from discontinued operations (usd per share) | (0.30) | (0.13) | (0.86) | (0.16) |
Total, Diluted earnings per share (usd per share) | 0.53 | 0.74 | 0.86 | 1.46 |
Dividends per share | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
Weighted average shares outstanding: | ||||
Basic (shares) | 47,224 | 48,175 | 47,466 | 48,055 |
Diluted (shares) | 48,258 | 49,239 | 48,487 | 49,160 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 25,737 | $ 36,391 | $ 41,728 | $ 71,555 | |
Other comprehensive income | |||||
Foreign currency translation, net of tax (1) | [1] | 31,881 | 17,737 | (24,592) | 7,820 |
Pension and postretirement adjustments, net of tax (2) | [2] | 2,366 | 914 | 4,769 | 1,700 |
Other comprehensive income (loss), net of tax | 34,247 | 18,651 | (19,823) | 9,520 | |
Comprehensive income | $ 59,984 | $ 55,042 | $ 21,905 | $ 81,075 | |
[1] | The tax benefit included in other comprehensive income for foreign currency translation adjustments for the three and six months ended June 30, 2015 were $0.7 million and $2.9 million, respectively. The tax benefit included in other comprehensive income for foreign currency translation adjustments for the three and six months ended June 30, 2014 were and $0.4 million and $0.7 million, respectively. | ||||
[2] | The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2015 were $1.4 million and $2.7 million, respectively. The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2014 were and $0.5 million and $0.9 million, respectively. |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0.7 | $ 0.4 | $ 2.9 | $ 0.7 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $ (1.4) | $ (0.5) | $ (2.7) | $ (0.9) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 244,980 | $ 450,116 |
Receivables, net | 523,212 | 495,480 |
Inventories, net | 400,670 | 388,670 |
Deferred tax assets, net | 43,156 | 44,311 |
Assets held for sale | 14,761 | 147,347 |
Income taxes receivable | 75,894 | 5,583 |
Other current assets | 31,974 | 39,568 |
Total current assets | 1,334,647 | 1,571,075 |
Property, plant, and equipment, net | 433,747 | 458,919 |
Goodwill | 991,283 | 998,506 |
Other intangible assets, net | 333,992 | 349,227 |
Other assets | 18,942 | 21,784 |
Total assets | 3,112,611 | 3,399,511 |
Current liabilities: | ||
Current portion of long-term debt and short-term debt | 1,039 | 1,069 |
Accounts payable | 138,134 | 152,266 |
Accrued expenses | 112,304 | 145,938 |
Income taxes payable | 6,137 | 22,472 |
Deferred revenue | 154,578 | 176,693 |
Liabilities held for sale | 1,750 | 35,392 |
Other current liabilities | 51,199 | 38,163 |
Total current liabilities | 465,141 | 571,993 |
Long-term debt | 948,957 | 953,279 |
Deferred tax liabilities, net | 105,844 | 51,554 |
Accrued pension and other postretirement benefit costs | 71,463 | 226,687 |
Long-term portion of environmental reserves | 14,606 | 14,911 |
Other liabilities | 98,000 | 102,654 |
Total liabilities | 1,704,011 | 1,921,078 |
Stockholders' Equity | ||
Common stock, $1 par value, 100,000,000 shares authorized at June 30, 2015 and December 31, 2014; 49,189,702 shares issued at June 30, 2015 and December 31, 2014; outstanding shares were 46,924,807 at June 30, 2015 and 47,904,518 at December 31, 2014 | 49,190 | 49,190 |
Additional paid in capital | 154,541 | 158,043 |
Retained earnings | 1,498,742 | 1,469,306 |
Accumulated other comprehensive loss | (148,234) | (128,411) |
Common treasury stock, at cost (2,264,895 shares at June 30, 2015 and 1,285,184 shares at December 31, 2014) | (145,639) | (69,695) |
Total stockholders' equity | 1,408,600 | 1,478,433 |
Total liabilities and stockholders' equity | $ 3,112,611 | $ 3,399,511 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 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 | 46,924,807 | 47,904,518 |
Treasury Stock, Shares | 2,264,895 | 1,285,184 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 41,728 | $ 71,555 |
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 51,538 | 61,386 |
(Gain)/loss on sale of businesses | 13,498 | 7,106 |
(Gain)/loss on fixed asset disposals | (669) | 389 |
Deferred income taxes | 17,038 | 10,695 |
Share-based compensation | 4,626 | 4,286 |
Impairment of Long-Lived Assets to be Disposed of | 40,813 | 0 |
Change in operating assets and liabilities, net of businesses acquired and divested: | ||
Accounts receivable, net | (29,713) | (19,801) |
Inventories, net | (15,889) | (29,604) |
Progress payments | (2,255) | (7,164) |
Accounts payable and accrued expenses | (56,781) | (26,567) |
Deferred revenue | (22,115) | 20,430 |
Income taxes payable | (30,962) | 1,924 |
Net pension and postretirement liabilities | (138,696) | (15,545) |
Other current and long-term assets and liabilities | 16,569 | 5,327 |
Net cash provided by (used for) operating activities | (111,270) | 84,417 |
Cash flows from investing activities: | ||
Proceeds from sales and disposals of long lived assets | 837 | 328 |
Proceeds from divestitures, net of cash sold and transaction costs | 22,730 | 52,098 |
Additions to property, plant, and equipment | (15,689) | (35,996) |
Acquisition of businesses, net of cash acquired | (13,228) | (34,362) |
Additional consideration of prior period acquisitions | (436) | (230) |
Net cash used for investing activities | (5,786) | (18,162) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 27,394 | 362,563 |
Payment of revolving credit facility | (27,425) | (413,203) |
Repurchases of common stock | (97,114) | (23,911) |
Proceeds from share-based compensation | 9,253 | 26,476 |
Dividends paid | (6,184) | (6,277) |
Proceeds from (Payments for) Other Financing Activities | 281 | 0 |
Excess tax benefits from share-based compensation plans | 3,790 | 6,657 |
Net cash used for financing activities | (90,005) | (47,695) |
Effect of exchange-rate changes on cash | 1,925 | 286 |
Net increase (decrease) in cash and cash equivalents | (205,136) | 18,846 |
Cash and cash equivalents at beginning of period | 450,116 | 175,294 |
Cash and cash equivalents at end of period | 244,980 | 194,140 |
Supplemental disclosure of non-cash activities: | ||
Capital expenditures incurred but not yet paid | 347 | 1,371 |
Property and equipment acquired under build to suit transaction | $ 0 | $ 12,376 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock Member | Additional Paid In Capital Member | Retained Earnings Member | Accumulated Other Comprehensive Loss Member | Treasury Stock Member |
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 | 0 | 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 | 41,728 | 41,728 | ||||
Other comprehensive loss, net of tax | (19,823) | (19,823) | ||||
Dividends paid/declared | (12,292) | |||||
Restricted stock | (5,793) | 8,206 | ||||
Stock options exercised, net of tax | 0 | (1,467) | 12,097 | |||
Other | (573) | 573 | ||||
Share-based compensation | 4,331 | 294 | ||||
Repurchases of common stock | (97,114) | |||||
Ending Balance at Jun. 30, 2015 | $ 1,408,600 | $ 49,190 | $ 154,541 | $ 1,498,742 | $ (148,234) | $ (145,639) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 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. During the second quarter of 2015, the Corporation recorded additional costs of $11.5 million related to its long-term contract with Westinghouse to deliver reactor coolant pumps (RCPs) for the AP1000 nuclear power plants in China. The increase in costs is due to a change in estimate related to production modifications that are the result of engineering and endurance testing. During the three and six month periods ended June 30, 2015 and 2014, there were no other 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, 2017 and allows for either full retrospective or modified retrospective adoption, with early adoption permitted as of January 1, 2017. The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. Date of adoption: January 1, 2018 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
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 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 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 and one business in the second quarter of 2015 that were previously classified as 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. Discontinued Operations The aggregate financial results of all discontinued operations and assets classified as held for sale for the three and six months ended June 30, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Net sales $ 23,025 $ 100,363 $ 57,284 $ 198,816 Earnings / (loss) from discontinued operations before income taxes (1) 153 (2,961 ) (39,959 ) (4,941 ) Income tax benefit / (expense) (3,759 ) 767 8,956 1,481 Gain / (loss) on sale of businesses (2) (10,778 ) (4,424 ) (10,613 ) (4,424 ) Earnings / (loss) from discontinued operations $ (14,384 ) $ (6,618 ) $ (41,616 ) $ (7,884 ) (1) Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the six months ended June 30, 2015 . (2) Net of tax benefit for the three and six months ended June 30, 2015 of $3.1 million , respectively. Assets held for sale During the third quarter of 2014, the Corporation committed to a plan to sell two surface technology treatment facilities and its Engineered Packaging business. In July 2015, the Corporation sold the assets and liabilities of its Engineered Packaging business for approximately $13 million . As of June 30, 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 following table outlines the net sales and earnings/(loss) before income taxes attributable to the assets held for sale for the three and six months ended June 30. Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Net Sales Surface Technologies - Domestic $ 926 $ 1,157 $ 2,036 $ 2,485 Engineered Packaging 3,952 4,299 8,329 10,447 Total included in discontinued operations $ 4,878 $ 5,456 $ 10,365 $ 12,932 Earnings / (loss) before income taxes Surface Technologies - Domestic $ (434 ) $ (144 ) $ (396 ) $ 21 Engineered Packaging 178 173 283 1,220 Total included in discontinued operations $ (256 ) $ 29 $ (113 ) $ 1,241 Divestitures and facility closures During the second quarter of 2015, the Corporation completed the divestiture of its Downstream oil and gas business for $19 million , net of transaction costs. The business had previously been classified within assets held for sale and had recorded impairment charges of $40 million during the first quarter. In connection with the second quarter sale, the Corporation realized an additional pre-tax loss on divestiture of $14 million . On January 9, 2015, the Corporation sold the assets of its Aviation Ground support business for £3 million ( $4 million ). During the year ended December 31, 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 $7 million . During 2014, the Corporation also closed three international manufacturing facilities in its Surface Technologies business. Net sales and earnings/(loss) before income taxes attributable to divestitures and facility closures for the three and six months ended June 30 were as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Net Sales $ 18,147 $ 94,907 $ 46,919 $ 185,884 Earnings / (loss) before income taxes 409 (2,990 ) (39,846 ) (6,182 ) |
ACQUISITION
ACQUISITION | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION | 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 | 6 Months Ended |
Jun. 30, 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) June 30, 2015 December 31, 2014 Billed receivables: Trade and other receivables $ 384,528 $ 363,241 Less: Allowance for doubtful accounts (6,646 ) (5,619 ) Net billed receivables 377,882 357,622 Unbilled receivables: Recoverable costs and estimated earnings not billed 155,674 150,526 Less: Progress payments applied (10,344 ) (12,668 ) Net unbilled receivables 145,330 137,858 Receivables, net $ 523,212 $ 495,480 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 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) June 30, 2015 December 31, 2014 Raw materials $ 218,262 $ 201,998 Work-in-process 85,366 89,423 Finished goods and component parts 113,081 103,831 Inventoried costs related to long-term contracts 50,134 59,070 Gross inventories 466,843 454,322 Less: Inventory reserves (51,889 ) (51,435 ) Progress payments applied (14,284 ) (14,217 ) Inventories, net $ 400,670 $ 388,670 Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $30.4 million and $33.9 million , as of June 30, 2015 and December 31, 2014 , respectively. These capitalized costs will be liquidated as production units are delivered to the customers. As of June 30, 2015 and December 31, 2014 , $3.0 million and $7.2 million , respectively, are scheduled to be liquidated under existing firm orders. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill, revised to reflect the Corporation’s new segment structure, for the six months ended June 30, 2015 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2014 $ 454,092 $ 356,689 $ 187,725 $ 998,506 Acquisitions 4,238 — — 4,238 Goodwill adjustments — 1,131 — 1,131 Foreign currency translation adjustment (3,571 ) (8,781 ) (240 ) (12,592 ) June 30, 2015 $ 454,759 $ 349,039 $ 187,485 $ 991,283 |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 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: June 30, 2015 December 31, 2014 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 174,422 $ (88,444 ) $ 85,978 $ 178,369 $ (84,584 ) $ 93,785 Customer related intangibles 359,682 (132,005 ) 227,677 356,844 (122,920 ) 233,924 Other intangible assets 37,942 (17,605 ) 20,337 38,460 (16,942 ) 21,518 Total $ 572,046 $ (238,054 ) $ 333,992 $ 573,673 $ (224,446 ) $ 349,227 During the first six months of 2015 , the Corporation acquired Customer related intangibles of $7.7 million . Total intangible amortization expense for the six months ended June 30, 2015 was $17.2 million as compared to $19.8 million in the prior year period. The estimated amortization expense for the five years ending December 31, 2015 through 2019 is $34.7 million , $34.3 million , $33.8 million , $32.7 million , and $30.9 million , respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 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 June 30, 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) June 30, 2015 December 31, 2014 Assets Undesignated for hedge accounting Forward exchange contracts $ 56 $ 605 Total asset derivatives (A) $ 56 $ 605 Liabilities Designated for hedge accounting Interest rate swaps $ 9,443 $ 5,121 Undesignated for hedge accounting Forward exchange contracts 364 676 Total liability derivatives (B) $ 9,807 $ 5,797 (A) Forward exchange derivatives are included in Other current 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 and six months ended June 30, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Other Income, net Gain / (loss) on interest rate swaps $ (16,232 ) $ 12,159 $ (4,322 ) $ 24,934 Gain / (loss) on hedged fixed rate debt 16,232 (12,159 ) 4,322 (24,934 ) Total $ — $ — $ — $ — 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 and six months ended June 30, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Derivatives not designated as hedging instrument 2015 2014 2015 2014 Forward exchange contracts: General and administrative expenses $ 2,528 $ 2,020 $ 1,556 $ (930 ) 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 June 30, 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. June 30, 2015 December 31, 2014 (In thousands) 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 150,000 161,000 150,000 162,617 3.84% Senior notes due 2021 99,988 99,988 99,934 99,934 3.70% Senior notes due 2023 225,000 224,473 225,000 225,748 3.85% Senior notes due 2025 97,721 97,721 98,360 98,360 4.24% Senior notes due 2026 194,733 194,733 197,237 197,237 4.05% Senior notes due 2028 73,116 73,116 74,348 74,348 4.11% Senior notes due 2028 100,000 99,259 100,000 100,801 Other debt 1,038 1,038 1,069 1,069 Total debt $ 949,996 $ 959,728 $ 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 2014. 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 six months ended June 30, 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 POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Service cost $ 7,137 $ 6,372 $ 14,273 $ 12,742 Interest cost 7,497 7,552 14,988 15,096 Expected return on plan assets (13,688 ) (10,425 ) (27,367 ) (20,838 ) Amortization of prior service cost 156 157 311 315 Amortization of unrecognized actuarial loss 3,866 1,483 7,731 2,966 Net periodic benefit cost $ 4,968 $ 5,139 $ 9,936 $ 10,281 During the six months ended June 30, 2015 , the Corporation made $145.0 million in contributions to the Curtiss-Wright Pension Plan. In addition, contributions of $1.8 million were made to the Corporation’s foreign benefit plans during the six months ended June 30, 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 six months ended June 30, 2015 and 2014 , the expense relating to the plan was $7.5 million and $7.7 million , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 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: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Basic weighted-average shares outstanding 47,224 48,175 47,466 48,055 Dilutive effect of stock options and deferred stock compensation 1,034 1,064 1,021 1,105 Diluted weighted-average shares outstanding 48,258 49,239 48,487 49,160 As of June 30, 2015 and June 30, 2014 , respectively, there were no options outstanding that were considered anti-dilutive. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 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 its previously announced discontinued operations. The Energy segment was renamed Power. The new Power segment includes businesses serving the nuclear naval defense and new build (AP1000) power generation markets, which had previously operated within the Defense 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 leveraged 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: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Net sales Commercial/Industrial $ 305,074 $ 315,114 $ 604,972 $ 617,131 Defense 120,149 118,889 234,501 232,042 Power 121,661 137,320 256,796 267,595 Less: Intersegment revenues (1,690 ) (2,125 ) (4,876 ) (4,611 ) Total consolidated $ 545,194 $ 569,198 $ 1,091,393 $ 1,112,157 Operating income (expense) Commercial/Industrial $ 45,253 $ 45,750 $ 88,542 $ 84,246 Defense 24,391 18,002 42,418 33,786 Power 1,454 14,865 20,966 29,140 Corporate and eliminations (1) (5,656 ) (6,458 ) (13,649 ) (13,979 ) Total consolidated $ 65,442 $ 72,159 $ 138,277 $ 133,193 (1) Corporate and eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses. Operating income by reportable segment and the reconciliation to income from continuing operations before income taxes are as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Total operating income $ 65,442 $ 72,159 $ 138,277 $ 133,193 Interest expense (8,985 ) (8,986 ) (17,981 ) (18,041 ) Other income, net (37 ) (23 ) 444 89 Earnings from continuing operations before income taxes $ 56,420 $ 63,150 $ 120,740 $ 115,241 (In thousands) June 30, 2015 December 31, 2014 Identifiable assets Commercial/Industrial $ 1,561,489 $ 1,534,882 Defense 806,804 837,891 Power 581,061 588,366 Corporate and Other 148,496 291,025 Assets held for sale 14,761 147,347 Total consolidated $ 3,112,611 $ 3,399,511 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 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 (AOCI), 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 Other comprehensive loss (OCI) (79,386 ) (74,284 ) (153,670 ) December 31, 2014 $ (20,283 ) $ (108,128 ) $ (128,411 ) OCI before reclassifications (1) (24,592 ) 41 (24,551 ) Amounts reclassified from AOCI (1) — 4,728 4,728 Net current period OCI (24,592 ) 4,769 (19,823 ) June 30, 2015 $ (44,875 ) $ (103,359 ) $ (148,234 ) (1) All amounts are after tax. Details of amounts reclassified from accumulated other comprehensive income (loss) are below: (In thousands) Amount reclassified from AOCI Affected line item in the statement where net earnings is presented Defined benefit pension and other postretirement benefit plans Amortization of prior service costs 17 (1) Amortization of actuarial losses (7,456 ) (1) (7,439 ) Total before tax 2,711 Income tax Total reclassifications $ (4,728 ) 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014 , there were $51.7 million and $54.3 million of stand-by letters of credit outstanding, respectively, and $15.6 million and $20.7 million of bank guarantees outstanding, respectively. As of June 30, 2015 , letters of credit outstanding related to discontinuing operations were $7.1 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 from Westinghouse of approximately $25 million . As of June 30, 2015 , the Corporation has not met certain contractual delivery dates under its AP 1000 China and US 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 June 30, 2015 . As of June 30, 2015 , the range of possible loss is $0 to $48 million . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 1, 2015, the Corporation made a voluntary prepayment on its Industrial Revenue Bond in the amount of $8.4 million . In July 2015, the Corporation sold the assets and liabilities of its Engineered Packaging business for approximately $13 million . The assets and liabilities of this business were reported as held for sale as of June 30, 2015 and its results of operations have been reflected as discontinued operations. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 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. During the second quarter of 2015, the Corporation recorded additional costs of $11.5 million related to its long-term contract with Westinghouse to deliver reactor coolant pumps (RCPs) for the AP1000 nuclear power plants in China. The increase in costs is due to a change in estimate related to production modifications that are the result of engineering and endurance testing. During the three and six month periods ended June 30, 2015 and 2014, there were no other 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, 2017 and allows for either full retrospective or modified retrospective adoption, with early adoption permitted as of January 1, 2017. The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. Date of adoption: January 1, 2018 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 (Table)
DISCONTINUED OPERATIONS (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Net Sales Surface Technologies - Domestic $ 926 $ 1,157 $ 2,036 $ 2,485 Engineered Packaging 3,952 4,299 8,329 10,447 Total included in discontinued operations $ 4,878 $ 5,456 $ 10,365 $ 12,932 Earnings / (loss) before income taxes Surface Technologies - Domestic $ (434 ) $ (144 ) $ (396 ) $ 21 Engineered Packaging 178 173 283 1,220 Total included in discontinued operations $ (256 ) $ 29 $ (113 ) $ 1,241 Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2015 2014 2015 2014 Net Sales $ 18,147 $ 94,907 $ 46,919 $ 185,884 Earnings / (loss) before income taxes 409 (2,990 ) (39,846 ) (6,182 ) Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Net sales $ 23,025 $ 100,363 $ 57,284 $ 198,816 Earnings / (loss) from discontinued operations before income taxes (1) 153 (2,961 ) (39,959 ) (4,941 ) Income tax benefit / (expense) (3,759 ) 767 8,956 1,481 Gain / (loss) on sale of businesses (2) (10,778 ) (4,424 ) (10,613 ) (4,424 ) Earnings / (loss) from discontinued operations $ (14,384 ) $ (6,618 ) $ (41,616 ) $ (7,884 ) |
RECEIVABLES (Table)
RECEIVABLES (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule Of Accounts Notes Loans And Financing Receivable | The composition of receivables is as follows: (In thousands) June 30, 2015 December 31, 2014 Billed receivables: Trade and other receivables $ 384,528 $ 363,241 Less: Allowance for doubtful accounts (6,646 ) (5,619 ) Net billed receivables 377,882 357,622 Unbilled receivables: Recoverable costs and estimated earnings not billed 155,674 150,526 Less: Progress payments applied (10,344 ) (12,668 ) Net unbilled receivables 145,330 137,858 Receivables, net $ 523,212 $ 495,480 |
INVENTORIES (Table)
INVENTORIES (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | (In thousands) June 30, 2015 December 31, 2014 Raw materials $ 218,262 $ 201,998 Work-in-process 85,366 89,423 Finished goods and component parts 113,081 103,831 Inventoried costs related to long-term contracts 50,134 59,070 Gross inventories 466,843 454,322 Less: Inventory reserves (51,889 ) (51,435 ) Progress payments applied (14,284 ) (14,217 ) Inventories, net $ 400,670 $ 388,670 |
GOODWILL (Table)
GOODWILL (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | The changes in the carrying amount of goodwill, revised to reflect the Corporation’s new segment structure, for the six months ended June 30, 2015 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2014 $ 454,092 $ 356,689 $ 187,725 $ 998,506 Acquisitions 4,238 — — 4,238 Goodwill adjustments — 1,131 — 1,131 Foreign currency translation adjustment (3,571 ) (8,781 ) (240 ) (12,592 ) June 30, 2015 $ 454,759 $ 349,039 $ 187,485 $ 991,283 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Table) | 6 Months Ended |
Jun. 30, 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: June 30, 2015 December 31, 2014 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 174,422 $ (88,444 ) $ 85,978 $ 178,369 $ (84,584 ) $ 93,785 Customer related intangibles 359,682 (132,005 ) 227,677 356,844 (122,920 ) 233,924 Other intangible assets 37,942 (17,605 ) 20,337 38,460 (16,942 ) 21,518 Total $ 572,046 $ (238,054 ) $ 333,992 $ 573,673 $ (224,446 ) $ 349,227 |
FAIR VALUE OF FINANCIAL INSTR29
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table) | 6 Months Ended |
Jun. 30, 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 amounts of derivative instrument fair values in the condensed consolidated balance sheet are below. (In thousands) June 30, 2015 December 31, 2014 Assets Undesignated for hedge accounting Forward exchange contracts $ 56 $ 605 Total asset derivatives (A) $ 56 $ 605 Liabilities Designated for hedge accounting Interest rate swaps $ 9,443 $ 5,121 Undesignated for hedge accounting Forward exchange contracts 364 676 Total liability derivatives (B) $ 9,807 $ 5,797 (A) Forward exchange derivatives are included in Other current assets. (B) Forward exchange derivatives are included in Other current liabilities and interest rate swap liabilities are included in Other liabilities. |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | three and six months ended June 30, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Other Income, net Gain / (loss) on interest rate swaps $ (16,232 ) $ 12,159 $ (4,322 ) $ 24,934 Gain / (loss) on hedged fixed rate debt 16,232 (12,159 ) 4,322 (24,934 ) Total $ — $ — $ — $ — 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 and six months ended June 30, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Derivatives not designated as hedging instrument 2015 2014 2015 2014 Forward exchange contracts: General and administrative expenses $ 2,528 $ 2,020 $ 1,556 $ (930 ) |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | June 30, 2015 December 31, 2014 (In thousands) 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 150,000 161,000 150,000 162,617 3.84% Senior notes due 2021 99,988 99,988 99,934 99,934 3.70% Senior notes due 2023 225,000 224,473 225,000 225,748 3.85% Senior notes due 2025 97,721 97,721 98,360 98,360 4.24% Senior notes due 2026 194,733 194,733 197,237 197,237 4.05% Senior notes due 2028 73,116 73,116 74,348 74,348 4.11% Senior notes due 2028 100,000 99,259 100,000 100,801 Other debt 1,038 1,038 1,069 1,069 Total debt $ 949,996 $ 959,728 $ 954,348 $ 968,514 |
PENSION AND OTHER POSTRETIREM30
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Pension Plans Defined Benefit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Defined Benefit Plans Disclosures | The components of net periodic pension cost for the three and six months ended June 30, 2015 and 2014 are as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Service cost $ 7,137 $ 6,372 $ 14,273 $ 12,742 Interest cost 7,497 7,552 14,988 15,096 Expected return on plan assets (13,688 ) (10,425 ) (27,367 ) (20,838 ) Amortization of prior service cost 156 157 311 315 Amortization of unrecognized actuarial loss 3,866 1,483 7,731 2,966 Net periodic benefit cost $ 4,968 $ 5,139 $ 9,936 $ 10,281 |
EARNINGS PER SHARE (Table)
EARNINGS PER SHARE (Table) | 6 Months Ended |
Jun. 30, 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: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Basic weighted-average shares outstanding 47,224 48,175 47,466 48,055 Dilutive effect of stock options and deferred stock compensation 1,034 1,064 1,021 1,105 Diluted weighted-average shares outstanding 48,258 49,239 48,487 49,160 |
SEGMENT INFORMATION (Table)
SEGMENT INFORMATION (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment | Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Net sales Commercial/Industrial $ 305,074 $ 315,114 $ 604,972 $ 617,131 Defense 120,149 118,889 234,501 232,042 Power 121,661 137,320 256,796 267,595 Less: Intersegment revenues (1,690 ) (2,125 ) (4,876 ) (4,611 ) Total consolidated $ 545,194 $ 569,198 $ 1,091,393 $ 1,112,157 Operating income (expense) Commercial/Industrial $ 45,253 $ 45,750 $ 88,542 $ 84,246 Defense 24,391 18,002 42,418 33,786 Power 1,454 14,865 20,966 29,140 Corporate and eliminations (1) (5,656 ) (6,458 ) (13,649 ) (13,979 ) Total consolidated $ 65,442 $ 72,159 $ 138,277 $ 133,193 (1) Corporate and eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Operating income by reportable segment and the reconciliation to income from continuing operations before income taxes are as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2015 2014 2015 2014 Total operating income $ 65,442 $ 72,159 $ 138,277 $ 133,193 Interest expense (8,985 ) (8,986 ) (17,981 ) (18,041 ) Other income, net (37 ) (23 ) 444 89 Earnings from continuing operations before income taxes $ 56,420 $ 63,150 $ 120,740 $ 115,241 |
Reconciliation Of Assets From Segment To Consolidated | (In thousands) June 30, 2015 December 31, 2014 Identifiable assets Commercial/Industrial $ 1,561,489 $ 1,534,882 Defense 806,804 837,891 Power 581,061 588,366 Corporate and Other 148,496 291,025 Assets held for sale 14,761 147,347 Total consolidated $ 3,112,611 $ 3,399,511 |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income (Loss) | The cumulative balance of each component of accumulated other comprehensive income (AOCI), 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 Other comprehensive loss (OCI) (79,386 ) (74,284 ) (153,670 ) December 31, 2014 $ (20,283 ) $ (108,128 ) $ (128,411 ) OCI before reclassifications (1) (24,592 ) 41 (24,551 ) Amounts reclassified from AOCI (1) — 4,728 4,728 Net current period OCI (24,592 ) 4,769 (19,823 ) June 30, 2015 $ (44,875 ) $ (103,359 ) $ (148,234 ) (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 AOCI Affected line item in the statement where net earnings is presented Defined benefit pension and other postretirement benefit plans Amortization of prior service costs 17 (1) Amortization of actuarial losses (7,456 ) (1) (7,439 ) Total before tax 2,711 Income tax Total reclassifications $ (4,728 ) 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. |
BASIS OF PRESENTATION (Detail)
BASIS OF PRESENTATION (Detail) $ in Millions | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional costs | $ 11.5 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Discontinued Operations and Disposal Groups [Abstract] | ||||||
Net sales | $ 23,025 | $ 100,363 | $ 57,284 | $ 198,816 | ||
Earnings / (loss) from discontinued operations before income taxes (1) | [1] | 153 | (2,961) | (39,959) | (4,941) | |
Income tax benefit / (expense) | (3,759) | 767 | 8,956 | 1,481 | ||
Gain / (loss) on sale of businesses (2) | [2] | (10,778) | (4,424) | (10,613) | (4,424) | |
Loss from discontinued operations, net of taxes | (14,384) | $ (6,618) | (41,616) | (7,884) | ||
Impairment of Long-Lived Assets to be Disposed of | 40,813 | $ 0 | ||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | $ 3,141 | $ 3,065 | $ 7,000 | |||
[1] | Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the six months ended June 30, 2015. | |||||
[2] | Net of tax benefit for the three and six months ended June 30, 2015 of $3.1 million, respectively. |
DISCONTINUED OPERATIONS (Held f
DISCONTINUED OPERATIONS (Held for Sale Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net sales | $ 23,025 | $ 100,363 | $ 57,284 | $ 198,816 | |
Earnings/ (loss) before income taxes | [1] | 153 | (2,961) | (39,959) | (4,941) |
Discontinued Operations, Held-for-sale [Member] | |||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net sales | 4,878 | 5,456 | 10,365 | 12,932 | |
Earnings/ (loss) before income taxes | (256) | 29 | (113) | 1,241 | |
Surface Technologies Domestic [Member] | |||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net sales | 926 | 1,157 | 2,036 | 2,485 | |
Earnings/ (loss) before income taxes | (434) | (144) | (396) | 21 | |
Engineered Packaging [Member] | |||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net sales | 3,952 | 4,299 | 8,329 | 10,447 | |
Earnings/ (loss) before income taxes | $ 178 | $ 173 | $ 283 | $ 1,220 | |
[1] | Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the six months ended June 30, 2015. |
DISCONTINUED OPERATIONS (Divest
DISCONTINUED OPERATIONS (Divested) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net sales | $ 23,025 | $ 100,363 | $ 57,284 | $ 198,816 | |
Earnings/ (loss) before income taxes | [1] | 153 | (2,961) | (39,959) | (4,941) |
Discontinued Operations, Disposed of by Sale [Member] | |||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net sales | 18,147 | 94,907 | 46,919 | 185,884 | |
Earnings/ (loss) before income taxes | $ 409 | $ (2,990) | $ (39,846) | $ (6,182) | |
[1] | Loss from discontinued operations before income taxes includes approximately $41 million of Held for sale impairment expense in the six months ended June 30, 2015. |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) $ in Thousands, £ in Millions | Jul. 01, 2015USD ($) | Jan. 09, 2015USD ($) | Jan. 09, 2015GBP (£) | Jun. 30, 2015USD ($)facility | Mar. 31, 2015facility | Sep. 30, 2014facility | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)facility |
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Disposable Group Including Discontinued Business Number of Facilities to be Disposed of | facility | 1 | 1 | 4 | ||||||
Proceeds from divestitures, net of cash sold and transaction costs | $ 22,730 | $ 52,098 | $ 153,000 | ||||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | $ (3,141) | (3,065) | (7,000) | ||||||
Impairment of Long-Lived Assets to be Disposed of | 40,813 | 0 | |||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (13,498) | $ (7,106) | $ (29,000) | ||||||
Surface Technologies Domestic [Member] | |||||||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Disposable Group Including Discontinued Business Number of Facilities to be Disposed of | facility | 2 | ||||||||
Downstream [Member] | |||||||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Proceeds from divestitures, net of cash sold and transaction costs | 19,000 | ||||||||
Impairment of Long-Lived Assets to be Disposed of | 40,000 | ||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (14,000) | ||||||||
Aviation Ground Support [Member] | |||||||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Proceeds from divestitures, net of cash sold and transaction costs | $ 4,000 | £ 3 | |||||||
Subsequent Event [Member] | Engineered Packaging [Member] | |||||||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Proceeds from divestitures, net of cash sold and transaction costs | $ 13,000 |
ACQUISITION (Narrative) (Detail
ACQUISITION (Narrative) (Detail) - Bolts Metallizing Inc [Member] - Commercial Industrial [Member] - USD ($) $ in Millions | Mar. 16, 2015 | Jun. 30, 2015 |
Business Acquisition [Line Items] | ||
Effective date of acquisition | Mar. 16, 2015 | |
Purchase price net of cash acquired | $ 13.2 |
RECEIVABLES (Detail)
RECEIVABLES (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Billed receivables: | ||
Trade and other receivables | $ 384,528 | $ 363,241 |
Less: Allowance for doubtful accounts | (6,646) | (5,619) |
Net billed receivables | 377,882 | 357,622 |
Unbilled receivables: | ||
Recoverable costs and estimated earnings not billed | 155,674 | 150,526 |
Less: Progress payments applied | (10,344) | (12,668) |
Net unbilled receivables | 145,330 | 137,858 |
Receivables, net | $ 523,212 | $ 495,480 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Raw material | $ 218,262 | $ 201,998 |
Work-in-process | 85,366 | 89,423 |
Finished goods and component parts | 113,081 | 103,831 |
Inventoried costs related to long-term contracts | 50,134 | 59,070 |
Gross inventories | 466,843 | 454,322 |
Less: Inventory reserves | (51,889) | (51,435) |
Progress payments applied | (14,284) | (14,217) |
Inventories, net | $ 400,670 | $ 388,670 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Other inventory, capitalized costs | $ 30.4 | $ 33.9 |
Other inventory, capitalized costs to be liquidated under firm orders | $ 3 | $ 7.2 |
GOODWILL (Detail)
GOODWILL (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2014 | $ 998,506 |
Acquisitions | 4,238 |
Goodwill adjustments | 1,131 |
Foreign currency translation adjustment | (12,592) |
June 30, 2015 | 991,283 |
Commercial Industrial [Member] | |
Goodwill [Roll Forward] | |
December 31, 2014 | 454,092 |
Acquisitions | 4,238 |
Goodwill adjustments | 0 |
Foreign currency translation adjustment | (3,571) |
June 30, 2015 | 454,759 |
Defense [Member] | |
Goodwill [Roll Forward] | |
December 31, 2014 | 356,689 |
Acquisitions | 0 |
Goodwill adjustments | 1,131 |
Foreign currency translation adjustment | (8,781) |
June 30, 2015 | 349,039 |
Power [Member] | |
Goodwill [Roll Forward] | |
December 31, 2014 | 187,725 |
Acquisitions | 0 |
Goodwill adjustments | 0 |
Foreign currency translation adjustment | (240) |
June 30, 2015 | $ 187,485 |
OTHER INTANGIBLE ASSETS, NET (D
OTHER INTANGIBLE ASSETS, NET (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 572,046 | $ 573,673 |
Accumulated Amortization | (238,054) | (224,446) |
Net | 333,992 | 349,227 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 174,422 | 178,369 |
Accumulated Amortization | (88,444) | (84,584) |
Net | 85,978 | 93,785 |
Customer Related Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 359,682 | 356,844 |
Accumulated Amortization | (132,005) | (122,920) |
Net | 227,677 | 233,924 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 37,942 | 38,460 |
Accumulated Amortization | (17,605) | (16,942) |
Net | $ 20,337 | $ 21,518 |
OTHER INTANGIBLE ASSETS, NET (N
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 17.2 | $ 19.8 |
Future amortization expense in remainder of fiscal year | 34.7 | |
Future amortization expense in year two | 34.3 | |
Future amortization expense in year three | 33.8 | |
Future amortization expense in year four | 32.7 | |
Future amortization expense in year five | 30.9 | |
Customer-Related Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $ 7.7 |
FAIR VALUE OF FINANCIAL INSTR46
FAIR VALUE OF FINANCIAL INSTRUMENTS (Interest Rate Swap) (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Fair Value Disclosures [Abstract] | |
Notional amount | $ 400 |
FAIR VALUE OF FINANCIAL INSTR47
FAIR VALUE OF FINANCIAL INSTRUMENTS (Balance Sheet) (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Assets | [1] | $ 56 | $ 605 |
Liabilities | [2] | 9,807 | 5,797 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Liabilities | 9,443 | 5,121 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Assets | 56 | 605 | |
Liabilities | $ 364 | $ 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 INSTR48
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
General And Administrative Expense [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
General and administrative expenses | $ 2,528 | $ 2,020 | $ 1,556 | $ (930) |
Swap [Member] | Other Income [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain / (loss) on interest rate swaps | (16,232) | 12,159 | (4,322) | 24,934 |
Borrowings [Member] | Other Income [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain / (loss) on interest rate swaps | $ 16,232 | $ (12,159) | $ 4,322 | $ (24,934) |
FAIR VALUE OF FINANCIAL INSTR49
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 949,996 | $ 954,348 |
Estimated Fair Value | 959,728 | 968,514 |
Industrial revenue bond, due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 8,400 | 8,400 |
Estimated Fair Value | 8,400 | 8,400 |
Revolving credit agreement, due 2017 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 0 | 0 |
Estimated Fair Value | 0 | 0 |
5.51% Senior notes due 2017 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | 150,000 | 150,000 |
Estimated Fair Value | $ 161,000 | 162,617 |
Debt Instrument, Interest Rate, Stated Percentage | 5.51% | |
3.84% Senior notes due 2021 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 99,988 | 99,934 |
Estimated Fair Value | $ 99,988 | 99,934 |
Debt Instrument, Interest Rate, Stated Percentage | 3.84% | |
3.70% Senior notes due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 225,000 | 225,000 |
Estimated Fair Value | $ 224,473 | 225,748 |
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | |
3.85% Senior notes due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 97,721 | 98,360 |
Estimated Fair Value | $ 97,721 | 98,360 |
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | |
4.24% Senior notes due 2026 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 194,733 | 197,237 |
Estimated Fair Value | $ 194,733 | 197,237 |
Debt Instrument, Interest Rate, Stated Percentage | 4.24% | |
4.05% Senior notes due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 73,116 | 74,348 |
Estimated Fair Value | $ 73,116 | 74,348 |
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | |
4.11% Senior Notes [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 100,000 | 100,000 |
Estimated Fair Value | $ 99,259 | 100,801 |
Debt Instrument, Interest Rate, Stated Percentage | 4.11% | |
Other debt [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 1,038 | 1,069 |
Estimated Fair Value | $ 1,038 | $ 1,069 |
FAIR VALUE OF FINANCIAL INSTR50
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS (Nonrecurring measurements) (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of Long-Lived Assets to be Disposed of | $ 40,813 | $ 0 |
PENSION AND OTHER POSTRETIREM51
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) - Pension Plans Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 7,137 | $ 6,372 | $ 14,273 | $ 12,742 |
Interest cost | 7,497 | 7,552 | 14,988 | 15,096 |
Expected return on plan assets | (13,688) | (10,425) | (27,367) | (20,838) |
Amortization of prior service cost | 156 | 157 | 311 | 315 |
Amortization of unrecognized actuarial loss | 3,866 | 1,483 | 7,731 | 2,966 |
Net postretirement benefit cost (income) | $ 4,968 | $ 5,139 | $ 9,936 | $ 10,281 |
PENSION AND OTHER POSTRETIREM52
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan, Employer Contribution, Percentage, Maximum | 6.00% | |
Defined Contribution Plan, Cost Recognized | $ 7.5 | $ 7.7 |
Domestic Defined Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 145 | |
Foreign Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | 1.8 | |
Future employer contributions | $ 3 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Basic weighted-average shares outstanding (shares) | 47,224 | 48,175 | 47,466 | 48,055 |
Dilutive effect of stock options and deferred stock compensation (shares) | 1,034 | 1,064 | 1,021 | 1,105 |
Diluted weighted-average shares outstanding (shares) | 48,258 | 49,239 | 48,487 | 49,160 |
SEGMENT INFORMATION (Detail)
SEGMENT INFORMATION (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of Reportable Segments | segment | 3 | |||||
Net sales | $ 545,194 | $ 569,198 | $ 1,091,393 | $ 1,112,157 | ||
Operating income (expense) | 65,442 | 72,159 | 138,277 | 133,193 | ||
Identifiable assets | 3,112,611 | 3,112,611 | $ 3,399,511 | |||
Commercial Industrial [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 305,074 | 315,114 | 604,972 | 617,131 | ||
Operating income (expense) | 45,253 | 45,750 | 88,542 | 84,246 | ||
Identifiable assets | 1,561,489 | 1,561,489 | 1,534,882 | |||
Defense [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 120,149 | 118,889 | 234,501 | 232,042 | ||
Operating income (expense) | 24,391 | 18,002 | 42,418 | 33,786 | ||
Identifiable assets | 806,804 | 806,804 | 837,891 | |||
Power [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 121,661 | 137,320 | 256,796 | 267,595 | ||
Operating income (expense) | 1,454 | 14,865 | 20,966 | 29,140 | ||
Identifiable assets | 581,061 | 581,061 | 588,366 | |||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | (1,690) | (2,125) | (4,876) | (4,611) | ||
Corporate and Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (expense) | [1] | (5,656) | $ (6,458) | (13,649) | $ (13,979) | |
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Identifiable assets | 148,496 | 148,496 | 291,025 | |||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Identifiable assets | $ 14,761 | $ 14,761 | $ 147,347 | |||
[1] | Corporate and eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses. |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting [Abstract] | ||||
Total operating income | $ 65,442 | $ 72,159 | $ 138,277 | $ 133,193 |
Interest expense | (8,985) | (8,986) | (17,981) | (18,041) |
Other income, net | (37) | (23) | 444 | 89 |
Earnings from continuing operations before income taxes | $ 56,420 | $ 63,150 | $ 120,740 | $ 115,241 |
ACCUMULATED OTHER COMPREHENSI56
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 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 | [1] | (24,551) | ||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 4,728 | ||||
Other comprehensive income (loss), net of tax | $ 34,247 | $ 18,651 | (19,823) | 9,520 | (153,670) | |
Ending balance | (148,234) | (148,234) | (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 | [1] | (24,592) | ||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | ||||
Other comprehensive income (loss), net of tax | (24,592) | (79,386) | ||||
Ending balance | (44,875) | (44,875) | (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 | [1] | 41 | ||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 4,728 | ||||
Other comprehensive income (loss), net of tax | 4,769 | (74,284) | ||||
Ending balance | $ (103,359) | $ (103,359) | $ (108,128) | |||
[1] | All amounts are after tax. |
ACCUMULATED OTHER COMPREHENSI57
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Earnings from continuing operations before income taxes | $ 56,420 | $ 63,150 | $ 120,740 | $ 115,241 | |
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 | [1] | 17 | |||
Amortization of actuarial losses | [1] | (7,456) | |||
Earnings from continuing operations before income taxes | (7,439) | ||||
Income tax | 2,711 | ||||
Net earnings | $ (4,728) | ||||
[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 ($) | Oct. 10, 2013 | Jun. 30, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | |||
Range of possible loss, minimum | $ 0 | ||
Range of possible loss, maximum | 48,000,000 | ||
Standby Letters Of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of credit, outstanding | 51,700,000 | $ 54,300,000 | |
FinancialStandbyLetterOfCreditMember | |||
Loss Contingencies [Line Items] | |||
Letters of credit, outstanding | 15,600,000 | $ 20,700,000 | |
Failure to Meet Contractual Obligations [Member] | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 25,000,000 | ||
Discontinued Operations, Held-for-sale [Member] | Standby Letters Of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of credit, outstanding | 7,100,000 | ||
Surety Bond [Member] | |||
Loss Contingencies [Line Items] | |||
Surety Bond Outstanding | 52,900,000 | ||
Damage from Fire, Explosion or Other Hazard [Member] | |||
Loss Contingencies [Line Items] | |||
Estimated Litigation Liability | $ 1,000,000,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Jul. 01, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||
Proceeds from divestitures, net of cash sold and transaction costs | $ 22,730 | $ 52,098 | $ 153,000 | |
Subsequent Event [Member] | Engineered Packaging [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from divestitures, net of cash sold and transaction costs | $ 13,000 | |||
Subsequent Event [Member] | Industrial revenue bond, due 2023 [Member] | ||||
Subsequent Event [Line Items] | ||||
Repayments of Long-term Debt | $ 8,400 |