Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
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, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity common stock shares outstanding | 44,422,803 |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales | ||||
Product sales | $ 427,324 | $ 439,871 | $ 830,242 | $ 885,558 |
Service sales | 105,442 | 105,323 | 206,031 | 205,835 |
Total net sales | 532,766 | 545,194 | 1,036,273 | 1,091,393 |
Cost of sales | ||||
Cost of product sales | 279,869 | 287,685 | 544,604 | 580,694 |
Cost of service sales | 67,518 | 75,158 | 134,387 | 137,252 |
Total cost of sales | 347,387 | 362,843 | 678,991 | 717,946 |
Gross profit | 185,379 | 182,351 | 357,282 | 373,447 |
Research and development expenses | 15,236 | 15,321 | 30,396 | 30,583 |
Selling expenses | 29,126 | 29,105 | 58,752 | 60,193 |
General and administrative expenses | 72,928 | 72,483 | 142,782 | 144,394 |
Operating income | 68,089 | 65,442 | 125,352 | 138,277 |
Interest expense | (10,273) | (8,985) | (20,206) | (17,981) |
Other income (expense), net | 101 | (37) | 335 | 444 |
Earnings from continuing operations before income taxes | 57,917 | 56,420 | 105,481 | 120,740 |
Provision for income taxes | (17,954) | (16,299) | (32,699) | (37,396) |
Earnings from continuing operations | 39,963 | 40,121 | 72,782 | 83,344 |
Loss from discontinued operations, net of taxes | 0 | (14,384) | 0 | (41,616) |
Net earnings | $ 39,963 | $ 25,737 | $ 72,782 | $ 41,728 |
Basic earnings per share | ||||
Earnings from continuing operations (usd per share) | $ 0.90 | $ 0.85 | $ 1.63 | $ 1.76 |
Earnings from discontinued operations (usd per share) | 0 | (0.31) | 0 | (0.88) |
Total, Basic earnings per share (usd per share) | 0.90 | 0.54 | 1.63 | 0.88 |
Diluted earnings per share | ||||
Earnings from continuing operations (usd per share) | 0.88 | 0.83 | 1.61 | 1.72 |
Earnings from discontinued operations (usd per share) | 0 | (0.30) | 0 | (0.86) |
Total, Diluted earnings per share (usd per share) | 0.88 | 0.53 | 1.61 | 0.86 |
Dividends per share | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
Weighted average shares outstanding: | ||||
Basic (shares) | 44,487 | 47,224 | 44,526 | 47,466 |
Diluted (shares) | 45,164 | 48,258 | 45,195 | 48,487 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 39,963 | $ 25,737 | $ 72,782 | $ 41,728 | |
Other comprehensive income | |||||
Foreign currency translation, net of tax | [1] | (31,646) | 31,881 | (14,541) | (24,592) |
Pension and postretirement adjustments, net of tax | [2] | 1,520 | 2,366 | 3,132 | 4,769 |
Other comprehensive income (loss), net of tax | (30,126) | 34,247 | (11,409) | (19,823) | |
Comprehensive income | $ 9,837 | $ 59,984 | $ 61,373 | $ 21,905 | |
[1] | The tax benefit included in other comprehensive loss for foreign currency translation adjustments for the three and six months ended June 30, 2016 were $1.3 million and $0.3 million, respectively. The tax benefit included in other comprehensive income (loss) for foreign currency translation adjustments for the three and six months ended June 30, 2015 were $0.7 million and $2.9 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, 2016 were $1.1 million and $2.1 million, respectively. 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 $2.7 million, respectively. |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ (1.3) | $ (0.7) | $ (0.3) | $ (2.9) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $ 1.1 | $ 1.4 | $ 2.1 | $ 2.7 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 383,151 | $ 288,697 |
Receivables, net | 477,018 | 566,289 |
Inventories, net | 397,562 | 379,591 |
Other current assets | 52,561 | 40,306 |
Total current assets | 1,310,292 | 1,274,883 |
Property, plant, and equipment, net | 393,909 | 413,644 |
Goodwill | 967,850 | 972,606 |
Other intangible assets, net | 292,498 | 310,763 |
Other assets | 14,631 | 17,715 |
Total assets | 2,979,180 | 2,989,611 |
Current liabilities: | ||
Current portion of long-term debt and short-term debt | 1,113 | 1,259 |
Accounts payable | 133,483 | 163,286 |
Accrued expenses | 108,796 | 131,863 |
Income taxes payable | 6,601 | 7,956 |
Deferred revenue | 190,825 | 181,671 |
Other current liabilities | 41,500 | 37,190 |
Total current liabilities | 482,318 | 523,225 |
Long-term debt | 966,451 | 951,946 |
Deferred tax liabilities, net | 58,870 | 54,447 |
Accrued pension and other postretirement benefit costs | 101,720 | 103,723 |
Long-term portion of environmental reserves | 14,512 | 14,017 |
Other liabilities | 81,038 | 86,830 |
Total liabilities | 1,704,909 | 1,734,188 |
Stockholders' Equity | ||
Common stock, $1 par value, 100,000,000 shares authorized at June 30, 2016 and December 31, 2015; shares issued were 49,187,378 at June 30, 2016 and 49,189,702 at December 31, 2015; outstanding shares were 44,422,803 at June 30, 2016 and 44,621,348 at December 31, 2015 | 49,187 | 49,190 |
Additional paid in capital | 132,374 | 144,923 |
Retained earnings | 1,651,851 | 1,590,645 |
Accumulated other comprehensive loss | (237,337) | (225,928) |
Common treasury stock, at cost (4,764,575 shares at June 30, 2016 and 4,568,354 shares at December 31, 2015) | (321,804) | (303,407) |
Total stockholders' equity | 1,274,271 | 1,255,423 |
Total liabilities and stockholders' equity | $ 2,979,180 | $ 2,989,611 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
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 | 49,187,378 | 49,189,702 |
Common Stock, Shares, Outstanding | 44,422,803 | 44,621,348 |
Treasury Stock, Shares | 4,764,575 | 4,568,354 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 72,782 | $ 41,728 |
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities | ||
Depreciation and amortization | 48,987 | 51,538 |
Loss on sale of businesses | 0 | 13,498 |
Gain on fixed asset disposals | (28) | (669) |
Deferred income taxes | 14,127 | 17,038 |
Share-based compensation | 4,985 | 4,626 |
Impairment of assets held for sale | 0 | 40,813 |
Change in operating assets and liabilities, net of businesses acquired and divested: | ||
Accounts receivable, net | 85,281 | (29,713) |
Inventories, net | (14,527) | (15,889) |
Progress payments | (345) | (2,255) |
Accounts payable and accrued expenses | (65,856) | (56,781) |
Deferred revenue | 9,153 | (22,115) |
Income taxes payable | (25,412) | (30,962) |
Net pension and postretirement liabilities | 412 | (138,696) |
Other Operating Activities, Cash Flow Statement | 20,405 | |
Other current and long-term assets and liabilities | 6,667 | 16,569 |
Net cash provided by (used for) operating activities | 156,631 | (111,270) |
Cash flows from investing activities: | ||
Proceeds from sales and disposals of long lived assets | 244 | 837 |
Proceeds from divestitures, net of cash sold and transaction costs | 0 | 22,730 |
Additions to property, plant, and equipment | (15,733) | (15,689) |
Acquisition of businesses, net of cash acquired | (295) | (13,228) |
Additional consideration of prior period acquisitions | 0 | (436) |
Net cash used for investing activities | (15,784) | (5,786) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 3,755 | 27,394 |
Payment of revolving credit facility | (3,901) | (27,425) |
Repurchases of common stock | (54,958) | (97,114) |
Proceeds from share-based compensation | 13,098 | 9,253 |
Dividends paid | (5,797) | (6,184) |
Excess tax benefits from share-based compensation plans | 6,220 | 3,790 |
Proceeds from (Payments for) Other Financing Activities | (308) | 281 |
Net cash used for financing activities | (41,891) | (90,005) |
Effect of exchange-rate changes on cash | (4,502) | 1,925 |
Net increase (decrease) in cash and cash equivalents | 94,454 | (205,136) |
Cash and cash equivalents at beginning of period | 288,697 | 450,116 |
Cash and cash equivalents at end of period | 383,151 | 244,980 |
Supplemental disclosure of non-cash activities: | ||
Capital expenditures incurred but not yet paid | $ 775 | $ 347 |
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, 2014 | $ 49,190 | $ 158,043 | $ 1,469,306 | $ (128,411) | $ (69,695) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 145,461 | |||||
Other comprehensive loss, net of tax | $ (97,517) | (97,517) | ||||
Dividends paid/declared | (24,122) | |||||
Restricted stock | (10,303) | 13,734 | ||||
Stock options exercised, net of tax | 0 | (11,349) | 45,743 | |||
Other | (647) | 647 | ||||
Share-based compensation | 9,179 | 294 | ||||
Repurchases of common stock | (294,130) | |||||
Ending Balance at Dec. 31, 2015 | 1,255,423 | 49,190 | 144,923 | 1,590,645 | (225,928) | (303,407) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 72,782 | 72,782 | ||||
Other comprehensive loss, net of tax | (11,409) | (11,409) | ||||
Dividends paid/declared | (11,576) | |||||
Restricted stock | (10,921) | 14,450 | ||||
Stock options exercised, net of tax | 0 | (5,161) | 20,951 | |||
Other | (1,027) | 735 | ||||
Share-based compensation | 4,560 | 425 | ||||
Repurchases of common stock | (54,958) | |||||
Ending Balance at Jun. 30, 2016 | $ 1,274,271 | $ 49,187 | $ 132,374 | $ 1,651,851 | $ (237,337) | $ (321,804) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
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, power generation, and general industrial markets. 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 months ended June 30, 2016 and 2015 , 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 2015 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. Recent accounting pronouncements adopted Accounting pronouncement ASU 2015-17 - Balance Sheet Classification of Deferred Taxes was early adopted effective January 1, 2016 and accounting pronouncement ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs was adopted effective January 1, 2016. Both pronouncements were retrospectively adopted and, accordingly, certain amounts reported in the previous periods have been reclassified to conform to the current year presentation. A summary of the impact of the reclassifications as of December 31, 2015 is shown in the below table. Reclassifications December 31, 2015 as reported Deferred Taxes Debt Issuance Costs December 31, 2015 as reclassified Deferred tax assets. net $ 41,737 $ (41,737 ) $ — $ — Total current assets $ 1,316,620 $ (41,737 ) $ — $ 1,274,883 Other assets $ 15,745 $ 3,107 $ (1,137 ) $ 17,715 Total assets $ 3,029,378 $ (38,630 ) $ (1,137 ) $ 2,989,611 Other current liabilities $ 39,152 $ (1,962 ) $ — $ 37,190 Total current liabilities $ 525,187 $ (1,962 ) $ — $ 523,225 Long-term debt $ 953,083 $ — $ (1,137 ) $ 951,946 Deferred tax liabilities, net $ 91,115 $ (36,668 ) $ — $ 54,447 Total liabilities $ 1,773,955 $ (38,630 ) $ (1,137 ) $ 1,734,188 Total liabilities and stockholders' equity $ 3,029,378 $ (38,630 ) $ (1,137 ) $ 2,989,611 Recent accounting pronouncements to be adopted 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. 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 2016-02 Leases In February 2016, the FASB issued final guidance that will require lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. Date of adoption: January 1, 2019 ASU 2016-09 Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. Date of adoption: January 1, 2017 |
DISCONTINUED OPERATIONS AND ASS
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | 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. In 2015, the Corporation divested all five businesses that were classified as held for sale as of December 31, 2014. The results of operations of these businesses are reported as discontinued operations within our Condensed Consolidated Statements of Earnings. The aggregate financial results of all discontinued operations for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2016 2015 2016 2015 Net sales $ — $ 23,025 $ — $ 57,284 Earnings / (loss) from discontinued operations before income taxes (1) — 153 — (39,959 ) Income tax benefit / (expense) — (3,759 ) — 8,956 Loss on sale of businesses (2) — (10,778 ) — (10,613 ) Loss from discontinued operations $ — $ (14,384 ) $ — $ (41,616 ) (1) Loss from discontinued operations before income taxes includes approximately $41 million of held for sale impairment expense recorded 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. Divestitures In May 2015 , the Corporation completed the divestiture of its Downstream oil and gas business for $19 million , net of transaction costs and realized an additional pre-tax loss on divestiture of $14 million . The business had recorded impairment charges of $40 million during the six months ended June 30, 2015 . In January 2015 , the Corporation sold the assets of its Aviation Ground support business for £3 million ( $4 million ). During 2015 , the Corporation disposed of five businesses in total aggregating to total cash proceeds of $31 million . The divestitures resulted in aggregate pre-tax losses in excess of $17 million , and tax benefits of approximately $3.3 million . Aggregate net sales attributable to these 2015 divestitures and facility closures for the three and six months ended June 30, 2015 were $23 million and $57.3 million , respectively, and loss before income taxes for the three and six months ended June 30, 2015 were $14.4 million and $41.6 million , respectively. |
RECEIVABLES
RECEIVABLES | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 Billed receivables: Trade and other receivables $ 342,092 $ 435,172 Less: Allowance for doubtful accounts (5,366 ) (5,664 ) Net billed receivables 336,726 429,508 Unbilled receivables: Recoverable costs and estimated earnings not billed 159,896 153,045 Less: Progress payments applied (19,604 ) (16,264 ) Net unbilled receivables 140,292 136,781 Receivables, net $ 477,018 $ 566,289 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 Raw materials $ 204,841 $ 196,684 Work-in-process 82,255 79,406 Finished goods and component parts 118,717 114,931 Inventoried costs related to long-term contracts 55,553 51,774 Gross inventories 461,366 442,795 Less: Inventory reserves (53,189 ) (48,904 ) Progress payments applied (10,615 ) (14,300 ) Inventories $ 397,562 $ 379,591 Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $31.0 million and $29.7 million , as of June 30, 2016 and December 31, 2015 , respectively. These capitalized costs will be liquidated as production units are delivered to the customers. As of June 30, 2016 and December 31, 2015 , $3.9 million and $2.5 million , respectively, are scheduled to be liquidated under existing firm orders. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the six months ended June 30, 2016 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2015 $ 447,828 $ 337,603 $ 187,175 $ 972,606 Foreign currency translation adjustment (4,782 ) (178 ) 204 (4,756 ) June 30, 2016 $ 443,046 $ 337,425 $ 187,379 $ 967,850 |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 170,282 $ (95,529 ) $ 74,753 $ 171,382 $ (91,430 ) $ 79,952 Customer related intangibles 355,733 (150,182 ) 205,551 357,538 (140,816 ) 216,722 Other intangible assets 37,242 (25,048 ) 12,194 37,200 (23,111 ) 14,089 Total $ 563,257 $ (270,759 ) $ 292,498 $ 566,120 $ (255,357 ) $ 310,763 Total intangible amortization expense for the six months ended June 30, 2016 was $16.8 million as compared to $17.2 million in the prior year period. The estimated amortization expense for the five years ending December 31, 2016 through 2020 is $33.3 million , $32.8 million , $31.7 million , $29.9 million , and $28.0 million , respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
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. On February 5, 2016, the Corporation terminated its March 2013 and January 2012 interest rate swap agreements. As a result of the termination, the Corporation received a cash payment of $20.4 million , representing the fair value of the interest rate swaps on the date of termination. In connection with the termination, the Corporation and the counterparties released each other from all obligations under the interest rate swaps agreement, including, without limitation, the obligation to make periodic payments under such agreements. The gain on termination is reflected as a bond premium to our notes' carrying value and amortized prospectively into interest expense over the remaining terms of the Senior Notes. 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, 2016 December 31, 2015 Assets Designated for hedge accounting Interest rate swaps $ — $ 3,083 Undesignated for hedge accounting Forward exchange contracts $ 374 $ 223 Total asset derivatives (A) $ 374 $ 3,306 Liabilities Undesignated for hedge accounting Forward exchange contracts 961 673 Total liability derivatives (B) $ 961 $ 673 (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. Effects on Condensed Consolidated Statements of Earnings Fair value hedge The location and amount of gains on the hedged fixed rate debt attributable to changes in the market interest rates and the offsetting loss on the related interest rate swaps for the three and six months ended June 30, 2016 and 2015, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2016 2015 2016 2015 Other income, net Loss on interest rate swaps $ — $ (16,232 ) $ — $ (4,322 ) Gain on hedged fixed rate debt — 16,232 — 4,322 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 2016 2015 2016 2015 Forward exchange contracts: General and administrative expenses $ (4,452 ) $ 2,528 $ (5,036 ) $ 1,556 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, 2016 . 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, 2016 December 31, 2015 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 5.51% Senior notes due 2017 150,000 156,982 150,000 158,024 3.84% Senior notes due 2021 100,000 105,589 100,307 100,307 3.70% Senior notes due 2023 225,000 235,497 225,000 224,322 3.85% Senior notes due 2025 100,000 105,565 100,450 100,450 4.24% Senior notes due 2026 200,000 216,485 201,422 201,422 4.05% Senior notes due 2028 75,000 79,699 75,904 75,904 4.11% Senior notes due 2028 100,000 106,909 100,000 99,720 Other debt 1,113 1,113 1,259 1,259 Total debt 951,113 1,007,839 954,342 961,408 Unamortized debt issuance costs (1) (1,060 ) (1,060 ) (1,137 ) (1,137 ) Unamortized interest rate swap proceeds (2) 17,511 17,511 — — Total debt, net $ 967,564 $ 1,024,290 $ 953,205 $ 960,271 (1) Effective for 2016, the Company adopted ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs requiring unamortized debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Prior year balances have been reclassified to reflect the current year presentation. (2) In February 2016, the Company terminated its interest rate swap agreements. Upon termination of the interest rate swaps, the Corporation received $20.4 million in cash and recorded a deferred gain of $18.3 million . As of June 30, 2016 , the remaining benefit of $17.5 million was recorded as an increase in the long-term debt balance and will be recognized ratably as a reduction to future interest expense over the remaining life of the related debt. 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, 2016 | |
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 2015 Annual Report on Form 10-K. Pension Plans The components of net periodic pension cost for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2016 2015 2016 2015 Service cost $ 6,248 $ 7,137 $ 12,485 $ 14,273 Interest cost 7,709 7,497 15,412 14,988 Expected return on plan assets (13,590 ) (13,688 ) (27,171 ) (27,367 ) Amortization of prior service cost (11 ) 156 (23 ) 311 Amortization of unrecognized actuarial loss 3,093 3,866 6,186 7,731 Net periodic benefit cost $ 3,449 $ 4,968 $ 6,889 $ 9,936 During the six months ended June 30, 2016 , the Corporation made no contributions to the Curtiss-Wright Pension Plan, and does not expect to make any contributions in 2016. Effective May 1, 2016, the Corporation completed the merger of three frozen UK defined benefit pension schemes by merging the Metal Improvement Company Salaried Staff Pension Scheme and the Mechetronics Limited Retirement Benefits Scheme into the Curtiss-Wright Penny & Giles Pension Plan. The Penny & Giles Plan was then renamed the Curtiss-Wright UK Pension Plan. In connection with the merger, the Corporation made an additional £3 million (approximately $4.4 million ) cash contribution to the plan, and executed a Parent Company Guarantee to further increase the security of members’ pension benefits. The merger will benefit the Corporation by cost reduction achieved through streamlined advisor services and more efficient Trust administration. Scheduled contributions to the foreign benefit plans are not expected to be material in 2016 . 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, 2016 and 2015 , the expense relating to the plan was $6.0 million and $7.5 million , respectively. The Corporation made $9.1 million in contributions to the plan during the six months ended June 30, 2016 , and expects to make total contributions of $11.5 million in 2016 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2016 2015 Basic weighted-average shares outstanding 44,487 47,224 44,526 47,466 Dilutive effect of share based compensation 677 1,034 669 1,021 Diluted weighted-average shares outstanding 45,164 48,258 45,195 48,487 As of June 30, 2016 and June 30, 2015 , respectively, there were no stock options outstanding that were considered anti-dilutive. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Corporation manages and evaluates its operations based on end markets to strengthen its ability to service customers and recognize certain organizational efficiencies. Based on this approach, the Corporation has three reportable segments: Commercial/Industrial, Defense, and Power. 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 as 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, 2016 2015 2016 2015 Net sales Commercial/Industrial $ 290,428 $ 305,074 $ 565,633 $ 604,972 Defense 114,877 120,149 220,607 234,501 Power 129,123 121,661 252,869 256,796 Less: Intersegment revenues (1,662 ) (1,690 ) (2,836 ) (4,876 ) Total consolidated $ 532,766 $ 545,194 $ 1,036,273 $ 1,091,393 Operating income (expense) Commercial/Industrial $ 38,957 $ 45,253 $ 69,009 $ 88,542 Defense 18,609 24,391 35,454 42,418 Power 16,114 1,454 30,742 20,966 Corporate and eliminations (1) (5,591 ) (5,656 ) (9,853 ) (13,649 ) Total consolidated $ 68,089 $ 65,442 $ 125,352 $ 138,277 (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. 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, 2016 2015 2016 2015 Total operating income $ 68,089 $ 65,442 $ 125,352 $ 138,277 Interest expense 10,273 8,985 20,206 17,981 Other income (expense), net 101 (37 ) 335 444 Earnings from continuing operations before income taxes $ 57,917 $ 56,420 $ 105,481 $ 120,740 (In thousands) June 30, 2016 December 31, 2015 Identifiable assets Commercial/Industrial $ 1,469,641 $ 1,480,052 Defense 805,307 800,613 Power 535,348 629,612 Corporate and Other 168,884 79,334 Total consolidated $ 2,979,180 $ 2,989,611 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2014 $ (20,283 ) $ (108,128 ) $ (128,411 ) Current period other comprehensive loss (87,527 ) (9,990 ) (97,517 ) December 31, 2015 $ (107,810 ) $ (118,118 ) $ (225,928 ) Other comprehensive loss before reclassifications (1) (14,541 ) (326 ) (14,867 ) Amounts reclassified from accumulated other comprehensive loss (1) — 3,458 3,458 Net current period other comprehensive income (loss) (14,541 ) 3,132 (11,409 ) June 30, 2016 $ (122,351 ) $ (114,986 ) $ (237,337 ) (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 351 (1) Amortization of actuarial losses (5,901 ) (1) (5,550 ) Total before tax 2,092 Income tax Total reclassifications $ (3,458 ) Net of tax (1) These items are included in the computation of net periodic benefit cost. See Note 8 , Pension and Other Postretirement Benefit Plans . |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 6 Months Ended |
Jun. 30, 2016 | |
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 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. As of June 30, 2016 and December 31, 2015 , there were $35.4 million and $37.3 million of stand-by letters of credit outstanding, respectively, and $13.6 million and $14.7 million of bank guarantees outstanding, respectively. 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 $56.0 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 . 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 June 30, 2016 , 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, 2016 . As of June 30, 2016 , the range of possible loss is $0 to $53 million . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements adopted Accounting pronouncement ASU 2015-17 - Balance Sheet Classification of Deferred Taxes was early adopted effective January 1, 2016 and accounting pronouncement ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs was adopted effective January 1, 2016. Both pronouncements were retrospectively adopted and, accordingly, certain amounts reported in the previous periods have been reclassified to conform to the current year presentation. A summary of the impact of the reclassifications as of December 31, 2015 is shown in the below table. Reclassifications December 31, 2015 as reported Deferred Taxes Debt Issuance Costs December 31, 2015 as reclassified Deferred tax assets. net $ 41,737 $ (41,737 ) $ — $ — Total current assets $ 1,316,620 $ (41,737 ) $ — $ 1,274,883 Other assets $ 15,745 $ 3,107 $ (1,137 ) $ 17,715 Total assets $ 3,029,378 $ (38,630 ) $ (1,137 ) $ 2,989,611 Other current liabilities $ 39,152 $ (1,962 ) $ — $ 37,190 Total current liabilities $ 525,187 $ (1,962 ) $ — $ 523,225 Long-term debt $ 953,083 $ — $ (1,137 ) $ 951,946 Deferred tax liabilities, net $ 91,115 $ (36,668 ) $ — $ 54,447 Total liabilities $ 1,773,955 $ (38,630 ) $ (1,137 ) $ 1,734,188 Total liabilities and stockholders' equity $ 3,029,378 $ (38,630 ) $ (1,137 ) $ 2,989,611 Recent accounting pronouncements to be adopted 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. 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 2016-02 Leases In February 2016, the FASB issued final guidance that will require lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. Date of adoption: January 1, 2019 ASU 2016-09 Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Corporation is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. Date of adoption: January 1, 2017 |
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, power generation, and general industrial markets. 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 months ended June 30, 2016 and 2015 , 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. |
BASIS OF PRESENTATION Tables (T
BASIS OF PRESENTATION Tables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Reclassifications December 31, 2015 as reported Deferred Taxes Debt Issuance Costs December 31, 2015 as reclassified Deferred tax assets. net $ 41,737 $ (41,737 ) $ — $ — Total current assets $ 1,316,620 $ (41,737 ) $ — $ 1,274,883 Other assets $ 15,745 $ 3,107 $ (1,137 ) $ 17,715 Total assets $ 3,029,378 $ (38,630 ) $ (1,137 ) $ 2,989,611 Other current liabilities $ 39,152 $ (1,962 ) $ — $ 37,190 Total current liabilities $ 525,187 $ (1,962 ) $ — $ 523,225 Long-term debt $ 953,083 $ — $ (1,137 ) $ 951,946 Deferred tax liabilities, net $ 91,115 $ (36,668 ) $ — $ 54,447 Total liabilities $ 1,773,955 $ (38,630 ) $ (1,137 ) $ 1,734,188 Total liabilities and stockholders' equity $ 3,029,378 $ (38,630 ) $ (1,137 ) $ 2,989,611 |
DISCONTINUED OPERATIONS AND A23
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Aggregate Financial Results of Discontinued Operations | The aggregate financial results of all discontinued operations for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2016 2015 2016 2015 Net sales $ — $ 23,025 $ — $ 57,284 Earnings / (loss) from discontinued operations before income taxes (1) — 153 — (39,959 ) Income tax benefit / (expense) — (3,759 ) — 8,956 Loss on sale of businesses (2) — (10,778 ) — (10,613 ) Loss from discontinued operations $ — $ (14,384 ) $ — $ (41,616 ) (1) Loss from discontinued operations before income taxes includes approximately $41 million of held for sale impairment expense recorded 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. |
RECEIVABLES (Table)
RECEIVABLES (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule Of Accounts Notes Loans And Financing Receivable | The composition of receivables is as follows: (In thousands) June 30, 2016 December 31, 2015 Billed receivables: Trade and other receivables $ 342,092 $ 435,172 Less: Allowance for doubtful accounts (5,366 ) (5,664 ) Net billed receivables 336,726 429,508 Unbilled receivables: Recoverable costs and estimated earnings not billed 159,896 153,045 Less: Progress payments applied (19,604 ) (16,264 ) Net unbilled receivables 140,292 136,781 Receivables, net $ 477,018 $ 566,289 |
INVENTORIES (Table)
INVENTORIES (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | (In thousands) June 30, 2016 December 31, 2015 Raw materials $ 204,841 $ 196,684 Work-in-process 82,255 79,406 Finished goods and component parts 118,717 114,931 Inventoried costs related to long-term contracts 55,553 51,774 Gross inventories 461,366 442,795 Less: Inventory reserves (53,189 ) (48,904 ) Progress payments applied (10,615 ) (14,300 ) Inventories $ 397,562 $ 379,591 |
GOODWILL (Table)
GOODWILL (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2016 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2015 $ 447,828 $ 337,603 $ 187,175 $ 972,606 Foreign currency translation adjustment (4,782 ) (178 ) 204 (4,756 ) June 30, 2016 $ 443,046 $ 337,425 $ 187,379 $ 967,850 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Table) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 170,282 $ (95,529 ) $ 74,753 $ 171,382 $ (91,430 ) $ 79,952 Customer related intangibles 355,733 (150,182 ) 205,551 357,538 (140,816 ) 216,722 Other intangible assets 37,242 (25,048 ) 12,194 37,200 (23,111 ) 14,089 Total $ 563,257 $ (270,759 ) $ 292,498 $ 566,120 $ (255,357 ) $ 310,763 |
FAIR VALUE OF FINANCIAL INSTR28
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 December 31, 2015 Assets Designated for hedge accounting Interest rate swaps $ — $ 3,083 Undesignated for hedge accounting Forward exchange contracts $ 374 $ 223 Total asset derivatives (A) $ 374 $ 3,306 Liabilities Undesignated for hedge accounting Forward exchange contracts 961 673 Total liability derivatives (B) $ 961 $ 673 (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 |
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, 2016 and 2015, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2016 2015 2016 2015 Other income, net Loss on interest rate swaps $ — $ (16,232 ) $ — $ (4,322 ) Gain on hedged fixed rate debt — 16,232 — 4,322 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 2016 2015 2016 2015 Forward exchange contracts: General and administrative expenses $ (4,452 ) $ 2,528 $ (5,036 ) $ 1,556 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | June 30, 2016 December 31, 2015 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 5.51% Senior notes due 2017 150,000 156,982 150,000 158,024 3.84% Senior notes due 2021 100,000 105,589 100,307 100,307 3.70% Senior notes due 2023 225,000 235,497 225,000 224,322 3.85% Senior notes due 2025 100,000 105,565 100,450 100,450 4.24% Senior notes due 2026 200,000 216,485 201,422 201,422 4.05% Senior notes due 2028 75,000 79,699 75,904 75,904 4.11% Senior notes due 2028 100,000 106,909 100,000 99,720 Other debt 1,113 1,113 1,259 1,259 Total debt 951,113 1,007,839 954,342 961,408 Unamortized debt issuance costs (1) (1,060 ) (1,060 ) (1,137 ) (1,137 ) Unamortized interest rate swap proceeds (2) 17,511 17,511 — — Total debt, net $ 967,564 $ 1,024,290 $ 953,205 $ 960,271 |
PENSION AND OTHER POSTRETIREM29
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2016 2015 2016 2015 Service cost $ 6,248 $ 7,137 $ 12,485 $ 14,273 Interest cost 7,709 7,497 15,412 14,988 Expected return on plan assets (13,590 ) (13,688 ) (27,171 ) (27,367 ) Amortization of prior service cost (11 ) 156 (23 ) 311 Amortization of unrecognized actuarial loss 3,093 3,866 6,186 7,731 Net periodic benefit cost $ 3,449 $ 4,968 $ 6,889 $ 9,936 |
EARNINGS PER SHARE (Table)
EARNINGS PER SHARE (Table) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2016 2015 Basic weighted-average shares outstanding 44,487 47,224 44,526 47,466 Dilutive effect of share based compensation 677 1,034 669 1,021 Diluted weighted-average shares outstanding 45,164 48,258 45,195 48,487 |
SEGMENT INFORMATION (Table)
SEGMENT INFORMATION (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment | Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2016 2015 2016 2015 Net sales Commercial/Industrial $ 290,428 $ 305,074 $ 565,633 $ 604,972 Defense 114,877 120,149 220,607 234,501 Power 129,123 121,661 252,869 256,796 Less: Intersegment revenues (1,662 ) (1,690 ) (2,836 ) (4,876 ) Total consolidated $ 532,766 $ 545,194 $ 1,036,273 $ 1,091,393 Operating income (expense) Commercial/Industrial $ 38,957 $ 45,253 $ 69,009 $ 88,542 Defense 18,609 24,391 35,454 42,418 Power 16,114 1,454 30,742 20,966 Corporate and eliminations (1) (5,591 ) (5,656 ) (9,853 ) (13,649 ) Total consolidated $ 68,089 $ 65,442 $ 125,352 $ 138,277 (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 | 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, 2016 2015 2016 2015 Total operating income $ 68,089 $ 65,442 $ 125,352 $ 138,277 Interest expense 10,273 8,985 20,206 17,981 Other income (expense), net 101 (37 ) 335 444 Earnings from continuing operations before income taxes $ 57,917 $ 56,420 $ 105,481 $ 120,740 |
Reconciliation Of Assets From Segment To Consolidated | (In thousands) June 30, 2016 December 31, 2015 Identifiable assets Commercial/Industrial $ 1,469,641 $ 1,480,052 Defense 805,307 800,613 Power 535,348 629,612 Corporate and Other 168,884 79,334 Total consolidated $ 2,979,180 $ 2,989,611 |
ACCUMULATED OTHER COMPREHENSI32
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2014 $ (20,283 ) $ (108,128 ) $ (128,411 ) Current period other comprehensive loss (87,527 ) (9,990 ) (97,517 ) December 31, 2015 $ (107,810 ) $ (118,118 ) $ (225,928 ) Other comprehensive loss before reclassifications (1) (14,541 ) (326 ) (14,867 ) Amounts reclassified from accumulated other comprehensive loss (1) — 3,458 3,458 Net current period other comprehensive income (loss) (14,541 ) 3,132 (11,409 ) June 30, 2016 $ (122,351 ) $ (114,986 ) $ (237,337 ) (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 351 (1) Amortization of actuarial losses (5,901 ) (1) (5,550 ) Total before tax 2,092 Income tax Total reclassifications $ (3,458 ) Net of tax (1) These items are included in the computation of net periodic benefit cost. See Note 8 , Pension and Other Postretirement Benefit Plans . |
Reclassifications for Accountin
Reclassifications for Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cost of Goods Sold, Additional Unanticipated Costs | $ 11,500 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Assets, Current | $ 1,310,292 | $ 1,274,883 | |
Other assets | 14,631 | 17,715 | |
Total assets | 2,979,180 | 2,989,611 | |
Other current liabilities | 41,500 | 37,190 | |
Liabilities, Current | 482,318 | 523,225 | |
Long-term debt | 966,451 | 951,946 | |
Deferred tax liabilities, net | 58,870 | 54,447 | |
Liabilities | 1,704,909 | 1,734,188 | |
Liabilities and Equity | $ 2,979,180 | 2,989,611 | |
Accounting Standards Update 2015-17 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Tax Assets, Net, Current | (41,737) | ||
Assets, Current | (41,737) | ||
Other assets | 3,107 | ||
Total assets | (38,630) | ||
Other current liabilities | (1,962) | ||
Liabilities, Current | (1,962) | ||
Deferred tax liabilities, net | (36,668) | ||
Liabilities | (38,630) | ||
Liabilities and Equity | (38,630) | ||
Accounting Standards Update 2015-03 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | (1,137) | ||
Total assets | (1,137) | ||
Long-term debt | (1,137) | ||
Liabilities | (1,137) | ||
Liabilities and Equity | (1,137) | ||
Scenario, Previously Reported [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Tax Assets, Net, Current | 41,737 | ||
Assets, Current | 1,316,620 | ||
Other assets | 15,745 | ||
Total assets | 3,029,378 | ||
Other current liabilities | 39,152 | ||
Liabilities, Current | 525,187 | ||
Long-term debt | 953,083 | ||
Deferred tax liabilities, net | 91,115 | ||
Liabilities | 1,773,955 | ||
Liabilities and Equity | $ 3,029,378 |
DISCONTINUED OPERATIONS AND A34
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE - Aggregate Financial Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||
Net sales | $ 0 | $ 23,000 | $ 0 | $ 57,300 | |
Loss from discontinued operations before income taxes | 0 | 153 | 0 | (39,959) | |
Income tax benefit / (expense) | 0 | (3,759) | 0 | 8,956 | |
Loss on sale of businesses | 0 | (10,778) | 0 | (10,613) | |
Loss from discontinued operations | $ 0 | (14,384) | 0 | (41,616) | |
Impairment of assets held for sale | 41,000 | $ 0 | 40,813 | ||
Net tax expense (benefit) | $ 3,065 | $ 3,065 | $ 3,000 |
DISCONTINUED OPERATIONS AND A35
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE - Narrative (Details) $ in Thousands, £ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 31, 2015USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2015GBP (£) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)facility | |
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Businesses sold, number of facilities | facility | 5 | |||||||
Proceeds from sale of businesses | $ 0 | $ 22,730 | $ 31,000 | |||||
Pre-tax gains (losses) | (17,000) | |||||||
Impairment of assets held for sale | $ 41,000 | 0 | 40,813 | |||||
Gain (loss) on sale of business | 0 | (13,498) | ||||||
Net tax expense (benefit) | 3,065 | 3,065 | $ 3,000 | |||||
Net sales | $ 0 | 23,000 | 0 | 57,300 | ||||
Loss from discontinued operations, net of taxes | $ 0 | (14,384) | $ 0 | $ (41,616) | ||||
Downstream [Member] | ||||||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of businesses | $ 19,000 | |||||||
Impairment of assets held for sale | 40,000 | |||||||
Gain (loss) on sale of business | $ 14,000 | |||||||
Aviation Ground Support [Member] | ||||||||
Income Statement Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of businesses | $ 4,000 | £ 3 |
RECEIVABLES (Detail)
RECEIVABLES (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Billed receivables: | ||
Trade and other receivables | $ 342,092 | $ 435,172 |
Less: Allowance for doubtful accounts | (5,366) | (5,664) |
Net billed receivables | 336,726 | 429,508 |
Unbilled receivables: | ||
Recoverable costs and estimated earnings not billed | 159,896 | 153,045 |
Less: Progress payments applied | (19,604) | (16,264) |
Net unbilled receivables | 140,292 | 136,781 |
Receivables, net | $ 477,018 | $ 566,289 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Raw material | $ 204,841 | $ 196,684 |
Work-in-process | 82,255 | 79,406 |
Finished goods and component parts | 118,717 | 114,931 |
Inventoried costs related to long-term contracts | 55,553 | 51,774 |
Gross inventories | 461,366 | 442,795 |
Less: Inventory reserves | 53,189 | 48,904 |
Progress payments applied | (10,615) | (14,300) |
Inventories | $ 397,562 | $ 379,591 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory, Net [Abstract] | ||
Other inventory, capitalized costs | $ 31 | $ 29.7 |
Other inventory, capitalized costs to be liquidated under firm orders | $ 3.9 | $ 2.5 |
GOODWILL (Detail)
GOODWILL (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2015 | $ 972,606 |
Foreign currency translation adjustment | (4,756) |
June 30, 2016 | 967,850 |
Commercial Industrial [Member] | |
Goodwill [Roll Forward] | |
December 31, 2015 | 447,828 |
Foreign currency translation adjustment | (4,782) |
June 30, 2016 | 443,046 |
Defense [Member] | |
Goodwill [Roll Forward] | |
December 31, 2015 | 337,603 |
Foreign currency translation adjustment | (178) |
June 30, 2016 | 337,425 |
Power [Member] | |
Goodwill [Roll Forward] | |
December 31, 2015 | 187,175 |
Foreign currency translation adjustment | 204 |
June 30, 2016 | $ 187,379 |
OTHER INTANGIBLE ASSETS, NET (D
OTHER INTANGIBLE ASSETS, NET (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 563,257 | $ 566,120 |
Accumulated Amortization | (270,759) | (255,357) |
Net | 292,498 | 310,763 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 170,282 | 171,382 |
Accumulated Amortization | (95,529) | (91,430) |
Net | 74,753 | 79,952 |
Customer Related Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 355,733 | 357,538 |
Accumulated Amortization | (150,182) | (140,816) |
Net | 205,551 | 216,722 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 37,242 | 37,200 |
Accumulated Amortization | (25,048) | (23,111) |
Net | $ 12,194 | $ 14,089 |
OTHER INTANGIBLE ASSETS, NET (N
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 16.8 | $ 17.2 |
Future amortization expense in remainder of fiscal year | 33.3 | |
Future amortization expense in year two | 32.8 | |
Future amortization expense in year three | 31.7 | |
Future amortization expense in year four | 29.9 | |
Future amortization expense in year five | $ 28 |
FAIR VALUE OF FINANCIAL INSTR42
FAIR VALUE OF FINANCIAL INSTRUMENTS (Interest Rate Swap) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value Disclosures [Abstract] | |
Other Operating Activities, Cash Flow Statement | $ 20,405 |
FAIR VALUE OF FINANCIAL INSTR43
FAIR VALUE OF FINANCIAL INSTRUMENTS (Balance Sheet) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets | $ 374 | $ 3,306 |
Liabilities | 961 | 673 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets | 3,083 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets | 374 | 223 |
Liabilities | $ 961 | $ 673 |
FAIR VALUE OF FINANCIAL INSTR44
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
General And Administrative Expense [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
General and administrative expenses | $ (4,452) | $ 2,528 | $ (5,036) | $ 1,556 |
Swap [Member] | Other Income [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Loss on interest rate swaps | (16,232) | (4,322) | ||
Borrowings [Member] | Other Income [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Loss on interest rate swaps | $ 16,232 | $ 4,322 |
FAIR VALUE OF FINANCIAL INSTR45
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Feb. 29, 2016 | Dec. 31, 2015 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying Value | $ 967,564 | $ 953,205 | |
Estimated Fair Value | 1,024,290 | 960,271 | |
Long-term Debt, Gross | 951,113 | 954,342 | |
Debt Issuance Costs, Net | (1,060) | (1,137) | |
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 17,511 | $ 18,258 | |
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 | $ 156,982 | 158,024 | |
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 | $ 100,000 | 100,307 | |
Estimated Fair Value | $ 105,589 | 100,307 | |
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 | $ 235,497 | 224,322 | |
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 | $ 100,000 | 100,450 | |
Estimated Fair Value | $ 105,565 | 100,450 | |
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 | $ 200,000 | 201,422 | |
Estimated Fair Value | $ 216,485 | 201,422 | |
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 | $ 75,000 | 75,904 | |
Estimated Fair Value | $ 79,699 | 75,904 | |
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 | $ 106,909 | 99,720 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.11% | ||
Other debt [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Carrying Value | $ 1,113 | 1,259 | |
Estimated Fair Value | 1,113 | 1,259 | |
Long-term Debt, gross [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Estimated Fair Value | $ 1,007,839 | $ 961,408 |
FAIR VALUE OF FINANCIAL INSTR46
FAIR VALUE OF FINANCIAL INSTRUMENTS (Nonrecurring measurements) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of assets held for sale | $ 41,000 | $ 0 | $ 40,813 |
PENSION AND OTHER POSTRETIREM47
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) - Pension Plans Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,248 | $ 7,137 | $ 12,485 | $ 14,273 |
Interest cost | 7,709 | 7,497 | 15,412 | 14,988 |
Expected return on plan assets | (13,590) | (13,688) | (27,171) | (27,367) |
Amortization of prior service cost | (11) | 156 | (23) | 311 |
Amortization of unrecognized actuarial loss | 3,093 | 3,866 | 6,186 | 7,731 |
Net postretirement benefit cost (income) | $ 3,449 | $ 4,968 | $ 6,889 | $ 9,936 |
PENSION AND OTHER POSTRETIREM48
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) £ in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2016GBP (£) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | 6.00% | ||
Defined Contribution Plan, Cost Recognized | $ 6 | $ 7.5 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 9.1 | |||
Foreign Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Contributions by Employer | $ 4.4 | £ 3 | ||
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 11.5 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Basic weighted-average shares outstanding (shares) | 44,487 | 47,224 | 44,526 | 47,466 |
Dilutive effect of stock options and deferred stock compensation (shares) | 677 | 1,034 | 669 | 1,021 |
Diluted weighted-average shares outstanding (shares) | 45,164 | 48,258 | 45,195 | 48,487 |
SEGMENT INFORMATION (Detail)
SEGMENT INFORMATION (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 532,766 | $ 545,194 | $ 1,036,273 | $ 1,091,393 | |
Operating income (expense) | 68,089 | 65,442 | 125,352 | 138,277 | |
Identifiable assets | 2,979,180 | 2,979,180 | $ 2,989,611 | ||
Commercial Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 290,428 | 305,074 | 565,633 | 604,972 | |
Operating income (expense) | 38,957 | 45,253 | 69,009 | 88,542 | |
Identifiable assets | 1,469,641 | 1,469,641 | 1,480,052 | ||
Defense [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 114,877 | 120,149 | 220,607 | 234,501 | |
Operating income (expense) | 18,609 | 24,391 | 35,454 | 42,418 | |
Identifiable assets | 805,307 | 805,307 | 800,613 | ||
Power [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 129,123 | 121,661 | 252,869 | 256,796 | |
Operating income (expense) | 16,114 | 1,454 | 30,742 | 20,966 | |
Identifiable assets | 535,348 | 535,348 | 629,612 | ||
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (expense) | (5,591) | (5,656) | (9,853) | (13,649) | |
Identifiable assets | 168,884 | 168,884 | $ 79,334 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (1,662) | $ (1,690) | $ (2,836) | $ (4,876) |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||||
Total operating income | $ 68,089 | $ 65,442 | $ 125,352 | $ 138,277 |
Interest expense | (10,273) | (8,985) | (20,206) | (17,981) |
Other income (expense), net | 101 | (37) | 335 | 444 |
Earnings from continuing operations before income taxes | $ 57,917 | $ 56,420 | $ 105,481 | $ 120,740 |
ACCUMULATED OTHER COMPREHENSI52
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (225,928) | $ (128,411) | $ (128,411) | ||
Other comprehensive income (loss) before reclassifications | (14,867) | ||||
Amounts reclassified from accumulated other comprehensive loss | 3,458 | ||||
Other comprehensive income (loss), net of tax | $ (30,126) | $ 34,247 | (11,409) | (19,823) | (97,517) |
Ending balance | (237,337) | (237,337) | (225,928) | ||
Foreign Currency Translation Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (107,810) | (20,283) | (20,283) | ||
Other comprehensive income (loss) before reclassifications | (14,541) | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||||
Other comprehensive income (loss), net of tax | (14,541) | (87,527) | |||
Ending balance | (122,351) | (122,351) | (107,810) | ||
Total Pension and Postretirment Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (118,118) | $ (108,128) | (108,128) | ||
Other comprehensive income (loss) before reclassifications | (326) | ||||
Amounts reclassified from accumulated other comprehensive loss | 3,458 | ||||
Other comprehensive income (loss), net of tax | 3,132 | (9,990) | |||
Ending balance | $ (114,986) | $ (114,986) | $ (118,118) |
ACCUMULATED OTHER COMPREHENSI53
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Earnings from continuing operations before income taxes | $ 57,917 | $ 56,420 | $ 105,481 | $ 120,740 |
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 | 351 | |||
Amortization of actuarial losses | (5,901) | |||
Earnings from continuing operations before income taxes | (5,550) | |||
Income tax | 2,092 | |||
Net earnings | $ (3,458) |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Detail) - USD ($) | Oct. 10, 2013 | Jun. 30, 2016 | Dec. 31, 2015 |
Standby Letters Of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of credit, outstanding | $ 35,400,000 | $ 37,300,000 | |
FinancialStandbyLetterOfCreditMember | |||
Loss Contingencies [Line Items] | |||
Letters of credit, outstanding | 13,600,000 | $ 14,700,000 | |
Failure to Meet Contractual Obligations [Member] | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 25,000,000 | ||
Surety Bond [Member] | |||
Loss Contingencies [Line Items] | |||
Surety Bond Outstanding | 56,000,000 | ||
Damage from Fire, Explosion or Other Hazard [Member] | |||
Loss Contingencies [Line Items] | |||
Estimated Litigation Liability | 1,000,000,000 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Range of possible loss | 0 | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Range of possible loss | $ 53,000,000 |