Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2017shares | |
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, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity common stock shares outstanding | 44,137,906 |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net sales | ||||
Product sales | $ 459,774 | $ 427,324 | $ 883,003 | $ 830,242 |
Service sales | 107,879 | 105,442 | 208,241 | 206,031 |
Total net sales | 567,653 | 532,766 | 1,091,244 | 1,036,273 |
Cost of sales | ||||
Cost of product sales | 299,739 | 279,869 | 586,231 | 544,604 |
Cost of service sales | 69,144 | 67,518 | 135,468 | 134,387 |
Total cost of sales | 368,883 | 347,387 | 721,699 | 678,991 |
Gross profit | 198,770 | 185,379 | 369,545 | 357,282 |
Research and development expenses | 15,501 | 15,236 | 30,799 | 30,396 |
Selling expenses | 28,560 | 29,126 | 57,513 | 58,752 |
General and administrative expenses | 71,438 | 72,928 | 146,735 | 142,782 |
Operating income | 83,271 | 68,089 | 134,498 | 125,352 |
Interest expense | (10,750) | (10,273) | (21,127) | (20,206) |
Other income, net | 190 | 101 | 502 | 335 |
Earnings from continuing operations before income taxes | 72,711 | 57,917 | 113,873 | 105,481 |
Provision for income taxes | (22,061) | (17,954) | (30,676) | (32,699) |
Net earnings | $ 50,650 | $ 39,963 | $ 83,197 | $ 72,782 |
Basic earnings per share | ||||
Basic earnings per share (usd per share) | $ 1.15 | $ 0.90 | $ 1.88 | $ 1.63 |
Diluted earnings per share | ||||
Diluted earnings per share (usd per share) | 1.13 | 0.88 | 1.86 | 1.61 |
Dividends per share | $ 0.13 | $ 0.13 | $ 0.26 | $ 0.26 |
Weighted average shares outstanding: | ||||
Basic (shares) | 44,213 | 44,487 | 44,221 | 44,526 |
Diluted (shares) | 44,807 | 45,164 | 44,825 | 45,195 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 50,650 | $ 39,963 | $ 83,197 | $ 72,782 | |
Other comprehensive income | |||||
Foreign currency translation, net of tax | [1] | 32,677 | (31,646) | 43,901 | (14,541) |
Pension and postretirement adjustments, net of tax | [2] | 1,743 | 1,520 | 3,694 | 3,132 |
Other comprehensive income (loss), net of tax | 34,420 | (30,126) | 47,595 | (11,409) | |
Comprehensive income | $ 85,070 | $ 9,837 | $ 130,792 | $ 61,373 | |
[1] | The tax expense included in other comprehensive income for foreign currency translation adjustments for the three and six months ended June 30, 2017 were $1.1 million and $1.2 million, respectively. 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. | ||||
[2] | The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2017 were $1.2 million and $2.5 million, respectively. 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 $2.1 million, respectively. |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 1.1 | $ (1.3) | $ 1.2 | $ (0.3) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | $ 1.2 | $ 1.1 | $ 2.5 | $ 2.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 342,711 | $ 553,848 |
Receivables, net | 502,216 | 463,062 |
Inventories, net | 396,245 | 366,974 |
Other current assets | 45,932 | 30,927 |
Total current assets | 1,287,104 | 1,414,811 |
Property, plant, and equipment, net | 390,520 | 388,903 |
Goodwill | 1,082,944 | 951,057 |
Other intangible assets, net | 345,991 | 271,461 |
Other assets | 14,715 | 11,549 |
Total assets | 3,121,274 | 3,037,781 |
Current liabilities: | ||
Current portion of long-term debt and short-term debt | 150,820 | 150,668 |
Accounts payable | 157,088 | 177,911 |
Accrued expenses | 116,492 | 130,239 |
Income taxes payable | 10,578 | 18,274 |
Deferred revenue | 183,955 | 170,143 |
Other current liabilities | 34,858 | 28,027 |
Total current liabilities | 653,791 | 675,262 |
Long-term debt | 814,810 | 815,630 |
Deferred tax liabilities, net | 55,675 | 49,722 |
Accrued pension and other postretirement benefit costs | 103,181 | 107,151 |
Long-term portion of environmental reserves | 16,091 | 14,024 |
Other liabilities | 84,561 | 84,801 |
Total liabilities | 1,728,109 | 1,746,590 |
Stockholders' Equity | ||
Common stock, $1 par value,100,000,000 shares authorized at June 30, 2017 and December 31, 2016; 49,187,378 shares issued at June 30, 2017 and December 31, 2016; outstanding shares were 44,137,906 at June 30, 2017 and 44,181,050 at December 31, 2016 | 49,187 | 49,187 |
Additional paid in capital | 122,584 | 129,483 |
Retained earnings | 1,825,697 | 1,754,907 |
Accumulated other comprehensive loss | (244,161) | (291,756) |
Common treasury stock, at cost (5,049,472 shares at June 30, 2017 and 5,006,328 shares at December 31, 2016) | (360,142) | (350,630) |
Total stockholders' equity | 1,393,165 | 1,291,191 |
Total liabilities and stockholders' equity | $ 3,121,274 | $ 3,037,781 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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 | 49,187,378 |
Common Stock, Shares, Outstanding | 44,137,906 | 44,181,050 |
Treasury Stock, Shares | 5,049,472 | 5,006,328 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 83,197 | $ 72,782 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 49,961 | 48,987 |
Gain on fixed asset disposals | (197) | (28) |
Deferred income taxes | (1,750) | 14,127 |
Share-based compensation | 6,016 | 4,985 |
Change in operating assets and liabilities, net of businesses acquired and divested: | ||
Accounts receivable, net | (27,246) | 85,281 |
Inventories, net | 534 | (14,527) |
Progress payments | (1,316) | (345) |
Accounts payable and accrued expenses | (48,229) | (65,856) |
Deferred revenue | 11,171 | 9,153 |
Income taxes payable | (13,217) | (25,412) |
Net pension and postretirement liabilities | 1,041 | 412 |
Other Operating Activities, Cash Flow Statement | 0 | 20,405 |
Other current and long-term assets and liabilities | 967 | 6,667 |
Net cash provided by operating activities | 60,932 | 156,631 |
Cash flows from investing activities: | ||
Proceeds from sales and disposals of long lived assets | 349 | 244 |
Additions to property, plant, and equipment | (23,288) | (15,733) |
Acquisition of businesses, net of cash acquired | (232,630) | (295) |
Net cash used for investing activities | (255,569) | (15,784) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 2,736 | 3,755 |
Payment of revolving credit facility | (2,584) | (3,901) |
Repurchases of common stock | (26,454) | (54,958) |
Proceeds from share-based compensation | 5,374 | 13,098 |
Dividends paid | (5,757) | (5,797) |
Excess tax benefits from share-based compensation plans | 0 | 6,220 |
Proceeds from (Payments for) Other Financing Activities | (336) | (308) |
Net cash used for financing activities | (27,021) | (41,891) |
Effect of exchange-rate changes on cash | 10,521 | (4,502) |
Net increase (decrease) in cash and cash equivalents | (211,137) | 94,454 |
Cash and cash equivalents at beginning of period | 553,848 | 288,697 |
Cash and cash equivalents at end of period | 342,711 | 383,151 |
Supplemental disclosure of non-cash activities: | ||
Capital expenditures incurred but not yet paid | $ 1,641 | $ 775 |
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, 2015 | $ 49,190 | $ 144,923 | $ 1,590,645 | $ (225,928) | $ (303,407) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 187,329 | |||||
Other comprehensive loss, net of tax | $ (65,828) | (65,828) | ||||
Dividends paid/declared | (23,067) | |||||
Restricted stock | (12,086) | 17,275 | ||||
Stock options exercised | (11,271) | 39,483 | ||||
Other | 3 | (1,104) | 811 | |||
Share-based compensation | 9,021 | 457 | ||||
Repurchases of common stock | (105,249) | |||||
Ending Balance at Dec. 31, 2016 | 1,291,191 | 49,187 | 129,483 | 1,754,907 | (291,756) | (350,630) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 83,197 | 83,197 | ||||
Other comprehensive loss, net of tax | 47,595 | 47,595 | ||||
Dividends paid/declared | (11,498) | |||||
Restricted stock | (9,618) | 9,618 | ||||
Stock options exercised | (851) | 6,227 | ||||
Other | (2,099) | (909) | 750 | |||
Share-based compensation | 5,669 | 347 | ||||
Repurchases of common stock | (26,454) | |||||
Ending Balance at Jun. 30, 2017 | $ 1,393,165 | $ 49,187 | $ 122,584 | $ 1,825,697 | $ (244,161) | $ (360,142) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
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 three and six months ended June 30, 2017 and 2016 , there were no individual significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2016 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 Standard Description Effect on the condensed consolidated financial statements ASU 2017-04 Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively. The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements. Date of adoption: January 1, 2017 ASU 2016-09 Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, 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 and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017. The Corporation recorded an income tax benefit of approximately $4 million within the provision for income taxes for the six months ended June 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital. The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2017 Recent accounting pronouncements to be adopted Standard Description Effect on the condensed consolidated 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 plans to apply the modified retrospective approach upon adoption and is currently evaluating the impact of adoption on its Condensed Consolidated Financial Statements as of January 1, 2018. We have performed a preliminary review of our customer contracts; however, our assessment is still ongoing and not yet complete. It is expected that the disclosures in our Notes to the Condensed Consolidated Financial Statements related to revenue recognition will be expanded under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause our evaluation to change. 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 guidance requires the use of a modified retrospective approach. The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2019 ASU 2017-01 Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2018 ASU 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued final guidance that will change how the net periodic benefit cost for defined benefit pension and other postretirement benefit plans are presented in the income statement and the respective capitalization of assets on the balance sheet. The guidance requires the use of a retrospective approach for the presentation of the income statement and a prospective approach for the presentation of the balance sheet. The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2018 |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 2 . ACQUISITIONS The Corporation continually evaluates potential acquisitions that either strategically fit within the Corporation’s existing portfolio or expand the Corporation’s portfolio into new product lines or adjacent markets. The Corporation has completed a number of acquisitions that have been accounted for as business combinations and have resulted in the recognition of goodwill in the Corporation's financial statements. This goodwill arises because the purchase prices for these businesses reflect the future earnings and cash flow potential in excess of the earnings and cash flows attributable to the current product and customer set at the time of acquisition. Thus, goodwill inherently includes the know-how of the assembled workforce, the ability of the workforce to further improve the technology and product offerings, and the expected cash flows resulting from these efforts. Goodwill may also include expected synergies resulting from the complementary strategic fit these businesses bring to existing operations. The Corporation allocates the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. In the months after closing, as the Corporation obtains additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and as the Corporation learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Corporation will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. During the six months ended June 30, 2017 , the Corporation acquired two businesses for an aggregate purchase price of $233 million , which are described in more detail below. No acquisitions were made during the six months ended June 30, 2016 . The Condensed Consolidated Statement of Earnings includes $25 million of total net sales and $4 million of net losses from the Corporation's 2017 acquisitions. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions consummated during the six months ended June 30, 2017 . (In thousands) 2017 2016 Accounts receivable $ 5,020 $ — Inventory 22,702 — Property, plant, and equipment 4,598 — Other current and non-current assets 2,815 — Intangible assets 88,900 — Current and non-current liabilities (7,163 ) — Due to seller, net (509 ) — Net tangible and intangible assets 116,363 — Purchase price, net of cash acquired 232,630 — Goodwill $ 116,267 $ — Goodwill deductible for tax purposes $ 116,267 $ — 2017 Acquisitions Teletronics Technology Corporation (TTC) On January 3, 2017 , the Corporation acquired 100% of the issued and outstanding capital stock of TTC for $226.0 million , net of cash acquired. The Share 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 deposited in escrow as security for potential indemnification claims against the seller. TTC is a designer and manufacturer of high-technology data acquisition and comprehensive flight test instrumentation systems for critical aerospace and defense applications. For the year ended December 31, 2016, TTC generated sales of $64 million . The acquired business operates within the Defense segment. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete. Para Tech Coating, Inc. (Para Tech) On February 8, 2017 , the Corporation acquired certain assets and assumed certain liabilities of Para Tech for $6.6 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. Para Tech is a provider of parylene conformal coating services for aerospace & defense electronic components as well as critical medical devices. The acquired business operates within the Commercial/Industrial segment. The acquisition is subject to post-closing adjustments as the purchase price allocation is not yet complete. |
RECEIVABLES
RECEIVABLES | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 Billed receivables: Trade and other receivables $ 374,691 $ 340,091 Less: Allowance for doubtful accounts (7,219 ) (4,832 ) Net billed receivables 367,472 335,259 Unbilled receivables: Recoverable costs and estimated earnings not billed 158,006 149,847 Less: Progress payments applied (23,262 ) (22,044 ) Net unbilled receivables 134,744 127,803 Receivables, net $ 502,216 $ 463,062 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 Raw materials $ 195,461 $ 189,228 Work-in-process 85,321 73,843 Finished goods 123,362 112,478 Inventoried costs related to U.S. Government and other long-term contracts 60,008 57,516 Gross inventories 464,152 433,065 Less: Inventory reserves (58,108 ) (54,988 ) Progress payments applied, principally related to long-term contracts (9,799 ) (11,103 ) Inventories, net $ 396,245 $ 366,974 Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $29.9 million and $28.8 million , as of June 30, 2017 and December 31, 2016 , respectively. These capitalized costs will be liquidated as production units are delivered to the customers. As of June 30, 2017 and December 31, 2016 , $4.6 million and $3.9 million , respectively, are scheduled to be liquidated under existing firm orders. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2016 $ 436,141 $ 327,655 $ 187,261 $ 951,057 Acquisitions 2,420 113,847 — 116,267 Foreign currency translation adjustment 6,468 9,044 108 15,620 June 30, 2017 $ 445,029 $ 450,546 $ 187,369 $ 1,082,944 |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 240,858 $ (105,400 ) $ 135,458 $ 166,859 $ (98,266 ) $ 68,593 Customer related intangibles 363,500 (168,351 ) 195,149 349,742 (157,154 ) 192,588 Other intangible assets 40,250 (24,866 ) 15,384 36,709 (26,429 ) 10,280 Total $ 644,608 $ (298,617 ) $ 345,991 $ 553,310 $ (281,849 ) $ 271,461 During the six months ended June 30, 2017 , the Corporation acquired intangible assets of $88.9 million . The Corporation acquired Technology of $73.0 million , Customer related intangibles of $12.9 million , and Other intangible assets of $3.0 million , which have a weighted average amortization period of 15.0 years, 16.3 years, and 7.0 years, respectively. Total intangible amortization expense for the six months ended June 30, 2017 was $19.1 million as compared to $16.8 million in the prior year period. The estimated amortization expense for the five years ending December 31, 2017 through 2021 is $38.7 million , $37.7 million , $36.0 million , $34.1 million , and $32.3 million , respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2017 | |
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. The Corporation’s foreign exchange contracts and interest rate swaps are considered Level 2 instruments which are based on market based inputs or unobservable inputs and corroborated by market data such as quoted prices, interest rates, or yield curves. Effects on Consolidated Balance Sheets As of June 30, 2017 and December 31, 2016, the fair values of the asset and liability derivative instruments are immaterial. Effects on Condensed Consolidated Statements of Earnings Undesignated hedges The location and amount of losses or (gains) 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 2017 2016 2017 2016 Forward exchange contracts: General and administrative expenses $ (93 ) $ 4,452 $ 614 $ 5,036 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, 2017 . 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, 2017 December 31, 2016 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 5.51% Senior notes due 2017 150,000 152,161 150,000 154,509 3.84% Senior notes due 2021 100,000 104,107 100,000 102,463 3.70% Senior notes due 2023 225,000 232,173 225,000 226,946 3.85% Senior notes due 2025 100,000 103,389 100,000 100,338 4.24% Senior notes due 2026 200,000 211,038 200,000 203,592 4.05% Senior notes due 2028 75,000 77,685 75,000 74,630 4.11% Senior notes due 2028 100,000 104,158 100,000 99,876 Other debt 820 820 668 668 Total debt 950,820 985,531 950,668 963,022 Debt issuance costs, net (907 ) (907 ) (984 ) (984 ) Unamortized interest rate swap proceeds 15,717 15,717 16,614 16,614 Total debt, net $ 965,630 $ 1,000,341 $ 966,298 $ 978,652 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits, Description [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 2016 Annual Report on Form 10-K. Pension Plans The components of net periodic pension cost for the three and six months ended June 30, 2017 and 2016 were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2017 2016 2017 2016 Service cost $ 6,474 $ 6,248 $ 12,945 $ 12,485 Interest cost 6,236 7,709 12,455 15,412 Expected return on plan assets (13,310 ) (13,590 ) (26,595 ) (27,171 ) Amortization of prior service cost (26 ) (11 ) (51 ) (23 ) Amortization of unrecognized actuarial loss 3,585 3,093 7,166 6,186 Net periodic benefit cost $ 2,959 $ 3,449 $ 5,920 $ 6,889 During the six months ended June 30, 2017 , the Corporation made no contributions to the Curtiss-Wright Pension Plan, and does not expect to make any contributions in 2017 . Contributions to the foreign benefit plans are not expected to be material in 2017 . 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, 2017 and 2016 , the expense relating to the plan was $6.8 million and $6.0 million , respectively. The Corporation made $9.4 million in contributions to the plan during the six months ended June 30, 2017 , and expects to make total contributions of $11.8 million in 2017 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 Basic weighted-average shares outstanding 44,213 44,487 44,221 44,526 Dilutive effect of stock options and deferred stock compensation 594 677 604 669 Diluted weighted-average shares outstanding 44,807 45,164 44,825 45,195 For the three months and six months ended June 30, 2017 , approximately 38,000 shares issuable under equity-based awards were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period. For the three and six months ended June 30, 2016 , there were no anti-dilutive equity-based awards. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 Net sales Commercial/Industrial $ 291,856 $ 290,428 $ 570,912 $ 565,633 Defense 127,399 114,877 242,236 220,607 Power 149,970 129,123 280,565 252,869 Less: Intersegment revenues (1,572 ) (1,662 ) (2,469 ) (2,836 ) Total consolidated $ 567,653 $ 532,766 $ 1,091,244 $ 1,036,273 Operating income (expense) Commercial/Industrial $ 43,693 $ 38,957 $ 74,314 $ 69,009 Defense 21,187 18,609 32,342 35,454 Power 24,870 16,114 41,410 30,742 Corporate and eliminations (1) (6,479 ) (5,591 ) (13,568 ) (9,853 ) Total consolidated $ 83,271 $ 68,089 $ 134,498 $ 125,352 (1) Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses. Adjustments to reconcile operating income to earnings before income taxes are as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2017 2016 2017 2016 Total operating income $ 83,271 $ 68,089 $ 134,498 $ 125,352 Interest expense 10,750 10,273 21,127 20,206 Other income, net 190 101 502 335 Earnings before income taxes $ 72,711 $ 57,917 $ 113,873 $ 105,481 (In thousands) June 30, 2017 December 31, 2016 Identifiable assets Commercial/Industrial $ 1,420,411 $ 1,391,040 Defense 1,013,636 751,859 Power 517,053 516,321 Corporate and Other 170,174 378,561 Total consolidated $ 3,121,274 $ 3,037,781 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2015 $ (107,810 ) $ (118,118 ) $ (225,928 ) Other comprehensive income (loss) before reclassifications (1) (64,840 ) (7,892 ) (72,732 ) Amounts reclassified from accumulated other comprehensive loss (1) — 6,904 6,904 Net current period other comprehensive loss (64,840 ) (988 ) (65,828 ) December 31, 2016 $ (172,650 ) $ (119,106 ) $ (291,756 ) Other comprehensive income (loss) before reclassifications (1) 43,901 (507 ) 43,394 Amounts reclassified from accumulated other comprehensive income (loss) (1) — 4,201 4,201 Net current period other comprehensive income 43,901 3,694 47,595 June 30, 2017 $ (128,749 ) $ (115,412 ) $ (244,161 ) (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 379 (1) Amortization of actuarial losses (7,064 ) (1) (6,685 ) Total before tax 2,484 Income tax Total reclassifications $ (4,201 ) 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, 2017 | |
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. Westinghouse Bankruptcy On March 29, 2017, Westinghouse Electric Company (“WEC”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York, Case No. 17-10751. The Bankruptcy Court overseeing the Bankruptcy Case has approved, on an interim basis, an $800 million Debtor-in-Possession Financing Facility to help WEC finance its business operations during the reorganization process. The Corporation had approximately $6.5 million in pre-petition billings outstanding with WEC as of June 30, 2017. The Corporation will continue, for the time being and while it monitors and evaluates the Bankruptcy Case, to honor its executory contracts and expects to collect all post-petition amounts due. At this time, the Corporation has assessed that any pre-petition amounts will be substantially recoverable and does not believe that rejection of the outstanding contracts with WEC, taken in part or combined, would have a material adverse impact on the Company’s cash flow or operations. The Corporation continues to monitor the status of the WEC bankruptcy as well as the status of the plant construction projects for potential impacts on our business. 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, 2017 and December 31, 2016 , there were $48.8 million and $47.2 million of stand-by letters of credit outstanding, respectively, and $13.9 million and $12.8 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 The Electro-Mechanical Division, which is within the Corporation’s Power segment, 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, 2017 , 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, 2017 . As of June 30, 2017 , the range of possible loss is $0 to $31 million for the AP1000 US contract, for a total range of possible loss of $0 to $55.5 million . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | On July 20, 2017 , the Board of Directors unanimously authorized a $0.02 , or 15% , increase in the Corporation’s quarterly dividend to $0.15 per share. The increase will be reflected in the Corporation’s third quarter distribution, to be paid in October 2017. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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, 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 three and six months ended June 30, 2017 and 2016 , there were no individual significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2016 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting pronouncements adopted Standard Description Effect on the condensed consolidated financial statements ASU 2017-04 Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively. The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements. Date of adoption: January 1, 2017 ASU 2016-09 Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, 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 and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017. The Corporation recorded an income tax benefit of approximately $4 million within the provision for income taxes for the six months ended June 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital. The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2017 Recent accounting pronouncements to be adopted Standard Description Effect on the condensed consolidated 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 plans to apply the modified retrospective approach upon adoption and is currently evaluating the impact of adoption on its Condensed Consolidated Financial Statements as of January 1, 2018. We have performed a preliminary review of our customer contracts; however, our assessment is still ongoing and not yet complete. It is expected that the disclosures in our Notes to the Condensed Consolidated Financial Statements related to revenue recognition will be expanded under the new standard. The Corporation will continue to monitor interpretative guidance issued by the FASB which may cause our evaluation to change. 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 guidance requires the use of a modified retrospective approach. The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2019 ASU 2017-01 Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2018 ASU 2017-07 Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued final guidance that will change how the net periodic benefit cost for defined benefit pension and other postretirement benefit plans are presented in the income statement and the respective capitalization of assets on the balance sheet. The guidance requires the use of a retrospective approach for the presentation of the income statement and a prospective approach for the presentation of the balance sheet. The Corporation is currently evaluating the impact of the adoption of this standard on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2018 |
BASIS OF PRESENTATION Tables (T
BASIS OF PRESENTATION Tables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Recent accounting pronouncements adopted Standard Description Effect on the condensed consolidated financial statements ASU 2017-04 Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment testing by removing step two. This guidance was early adopted effective January 1, 2017 and will be applied prospectively. The adoption of this standard does not have a financial impact on the Condensed Consolidated Financial Statements. Date of adoption: January 1, 2017 ASU 2016-09 Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, 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 and forfeitures. Excess tax benefits previously reported as cash flows from financing activities in the Condensed Consolidated Financial Statements are now required to be reported as operating activities. The Company adopted this guidance effective January 1, 2017. The Corporation recorded an income tax benefit of approximately $4 million within the provision for income taxes for the six months ended June 30, 2017 related to the excess tax benefit on stock options and performance share units. Prior to adoption, this amount would have been recorded as an increase to additional paid-in capital. The Corporation elected to account for forfeitures as they occur, which did not have a material impact on its Condensed Consolidated Financial Statements. Date of adoption: January 1, 2017 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (In thousands) 2017 2016 Accounts receivable $ 5,020 $ — Inventory 22,702 — Property, plant, and equipment 4,598 — Other current and non-current assets 2,815 — Intangible assets 88,900 — Current and non-current liabilities (7,163 ) — Due to seller, net (509 ) — Net tangible and intangible assets 116,363 — Purchase price, net of cash acquired 232,630 — Goodwill $ 116,267 $ — Goodwill deductible for tax purposes $ 116,267 $ — |
RECEIVABLES (Table)
RECEIVABLES (Table) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule Of Accounts Notes Loans And Financing Receivable | The composition of receivables is as follows: (In thousands) June 30, 2017 December 31, 2016 Billed receivables: Trade and other receivables $ 374,691 $ 340,091 Less: Allowance for doubtful accounts (7,219 ) (4,832 ) Net billed receivables 367,472 335,259 Unbilled receivables: Recoverable costs and estimated earnings not billed 158,006 149,847 Less: Progress payments applied (23,262 ) (22,044 ) Net unbilled receivables 134,744 127,803 Receivables, net $ 502,216 $ 463,062 |
INVENTORIES (Table)
INVENTORIES (Table) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | (In thousands) June 30, 2017 December 31, 2016 Raw materials $ 195,461 $ 189,228 Work-in-process 85,321 73,843 Finished goods 123,362 112,478 Inventoried costs related to U.S. Government and other long-term contracts 60,008 57,516 Gross inventories 464,152 433,065 Less: Inventory reserves (58,108 ) (54,988 ) Progress payments applied, principally related to long-term contracts (9,799 ) (11,103 ) Inventories, net $ 396,245 $ 366,974 |
GOODWILL (Table)
GOODWILL (Table) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2016 $ 436,141 $ 327,655 $ 187,261 $ 951,057 Acquisitions 2,420 113,847 — 116,267 Foreign currency translation adjustment 6,468 9,044 108 15,620 June 30, 2017 $ 445,029 $ 450,546 $ 187,369 $ 1,082,944 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Table) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 December 31, 2016 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 240,858 $ (105,400 ) $ 135,458 $ 166,859 $ (98,266 ) $ 68,593 Customer related intangibles 363,500 (168,351 ) 195,149 349,742 (157,154 ) 192,588 Other intangible assets 40,250 (24,866 ) 15,384 36,709 (26,429 ) 10,280 Total $ 644,608 $ (298,617 ) $ 345,991 $ 553,310 $ (281,849 ) $ 271,461 |
FAIR VALUE OF FINANCIAL INSTR29
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Undesignated hedges The location and amount of losses or (gains) 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 2017 2016 2017 2016 Forward exchange contracts: General and administrative expenses $ (93 ) $ 4,452 $ 614 $ 5,036 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | June 30, 2017 December 31, 2016 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 5.51% Senior notes due 2017 150,000 152,161 150,000 154,509 3.84% Senior notes due 2021 100,000 104,107 100,000 102,463 3.70% Senior notes due 2023 225,000 232,173 225,000 226,946 3.85% Senior notes due 2025 100,000 103,389 100,000 100,338 4.24% Senior notes due 2026 200,000 211,038 200,000 203,592 4.05% Senior notes due 2028 75,000 77,685 75,000 74,630 4.11% Senior notes due 2028 100,000 104,158 100,000 99,876 Other debt 820 820 668 668 Total debt 950,820 985,531 950,668 963,022 Debt issuance costs, net (907 ) (907 ) (984 ) (984 ) Unamortized interest rate swap proceeds 15,717 15,717 16,614 16,614 Total debt, net $ 965,630 $ 1,000,341 $ 966,298 $ 978,652 |
PENSION AND OTHER POSTRETIREM30
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and 2016 were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2017 2016 2017 2016 Service cost $ 6,474 $ 6,248 $ 12,945 $ 12,485 Interest cost 6,236 7,709 12,455 15,412 Expected return on plan assets (13,310 ) (13,590 ) (26,595 ) (27,171 ) Amortization of prior service cost (26 ) (11 ) (51 ) (23 ) Amortization of unrecognized actuarial loss 3,585 3,093 7,166 6,186 Net periodic benefit cost $ 2,959 $ 3,449 $ 5,920 $ 6,889 |
EARNINGS PER SHARE (Table)
EARNINGS PER SHARE (Table) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 Basic weighted-average shares outstanding 44,213 44,487 44,221 44,526 Dilutive effect of stock options and deferred stock compensation 594 677 604 669 Diluted weighted-average shares outstanding 44,807 45,164 44,825 45,195 |
SEGMENT INFORMATION (Table)
SEGMENT INFORMATION (Table) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment | Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2017 2016 2017 2016 Net sales Commercial/Industrial $ 291,856 $ 290,428 $ 570,912 $ 565,633 Defense 127,399 114,877 242,236 220,607 Power 149,970 129,123 280,565 252,869 Less: Intersegment revenues (1,572 ) (1,662 ) (2,469 ) (2,836 ) Total consolidated $ 567,653 $ 532,766 $ 1,091,244 $ 1,036,273 Operating income (expense) Commercial/Industrial $ 43,693 $ 38,957 $ 74,314 $ 69,009 Defense 21,187 18,609 32,342 35,454 Power 24,870 16,114 41,410 30,742 Corporate and eliminations (1) (6,479 ) (5,591 ) (13,568 ) (9,853 ) Total consolidated $ 83,271 $ 68,089 $ 134,498 $ 125,352 (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 | Three Months Ended Six Months Ended (In thousands) June 30, June 30, 2017 2016 2017 2016 Total operating income $ 83,271 $ 68,089 $ 134,498 $ 125,352 Interest expense 10,750 10,273 21,127 20,206 Other income, net 190 101 502 335 Earnings before income taxes $ 72,711 $ 57,917 $ 113,873 $ 105,481 |
Reconciliation Of Assets From Segment To Consolidated | (In thousands) June 30, 2017 December 31, 2016 Identifiable assets Commercial/Industrial $ 1,420,411 $ 1,391,040 Defense 1,013,636 751,859 Power 517,053 516,321 Corporate and Other 170,174 378,561 Total consolidated $ 3,121,274 $ 3,037,781 |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2015 $ (107,810 ) $ (118,118 ) $ (225,928 ) Other comprehensive income (loss) before reclassifications (1) (64,840 ) (7,892 ) (72,732 ) Amounts reclassified from accumulated other comprehensive loss (1) — 6,904 6,904 Net current period other comprehensive loss (64,840 ) (988 ) (65,828 ) December 31, 2016 $ (172,650 ) $ (119,106 ) $ (291,756 ) Other comprehensive income (loss) before reclassifications (1) 43,901 (507 ) 43,394 Amounts reclassified from accumulated other comprehensive income (loss) (1) — 4,201 4,201 Net current period other comprehensive income 43,901 3,694 47,595 June 30, 2017 $ (128,749 ) $ (115,412 ) $ (244,161 ) (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 379 (1) Amortization of actuarial losses (7,064 ) (1) (6,685 ) Total before tax 2,484 Income tax Total reclassifications $ (4,201 ) 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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income Tax Expense (Benefit) | $ 22,061 | $ 17,954 | $ 30,676 | $ 32,699 |
Accounting Standards Update 2016-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Income Tax Expense (Benefit) | $ 0 | $ 4,057 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,082,944 | $ 951,057 |
2017 acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Accounts Receivable | 5,020 | |
Inventory | 22,702 | |
Property, Plant, and Equipment | 4,598 | |
Other Current and Non-current Assets | 2,815 | |
Intangible Assets, Other than Goodwill | 88,900 | |
Current and Non-current Liabilities | 7,163 | |
Due from Seller, Net | (509) | |
Net Tangible and Intangible Assets | 116,363 | |
Purchase Price, Net of Cash Acquired | 232,630 | |
Goodwill | 116,267 | |
Goodwill, Expected Tax Deductible Amount | $ 116,267 |
ACQUISITIONS Narrative (Details
ACQUISITIONS Narrative (Details) $ in Thousands | Feb. 08, 2017 | Jan. 03, 2017 | Jun. 30, 2017USD ($)NumberAcquisitions | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Number of Businesses Acquired | NumberAcquisitions | 2 | |||
Payments to Acquire Businesses, Gross | $ 232,630 | $ 295 | ||
Revenue of Acquiree since Acquisition Date, Actual | 25,000 | |||
Earnings or Loss of Acquiree since Acquisition Date, Actual | (4,000) | |||
2017 acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase Price, Net of Cash Acquired | 232,630 | |||
Defense [Member] | Teletronics Technology Corporation (TTC) [Member] | ||||
Business Acquisition [Line Items] | ||||
Effective Date of Acquisition | Jan. 3, 2017 | |||
Purchase Price, Net of Cash Acquired | 226,015 | |||
Revenue Reported by Acquired Entity for Last Annual Period | 64,000 | |||
Commercial Industrial [Member] | Para Tech Coating, Inc (Para Tech) [Member] | ||||
Business Acquisition [Line Items] | ||||
Effective Date of Acquisition | Feb. 8, 2017 | |||
Payments to Acquire Businesses, Gross | $ 6,615 |
RECEIVABLES (Detail)
RECEIVABLES (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Billed receivables: | ||
Trade and other receivables | $ 374,691 | $ 340,091 |
Less: Allowance for doubtful accounts | (7,219) | (4,832) |
Net billed receivables | 367,472 | 335,259 |
Unbilled receivables: | ||
Recoverable costs and estimated earnings not billed | 158,006 | 149,847 |
Less: Progress payments applied | (23,262) | (22,044) |
Net unbilled receivables | 134,744 | 127,803 |
Receivables, net | $ 502,216 | $ 463,062 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Raw material | $ 195,461 | $ 189,228 |
Work-in-process | 85,321 | 73,843 |
Finished goods and component parts | 123,362 | 112,478 |
Inventoried costs related to U.S. Government and other long-term contracts | 60,008 | 57,516 |
Gross inventories | 464,152 | 433,065 |
Less: Inventory reserves | 58,108 | 54,988 |
Progress payments applied, principally related to long-term contracts | (9,799) | (11,103) |
Inventories, net | $ 396,245 | $ 366,974 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Other inventory, capitalized costs | $ 29.9 | $ 28.8 |
Other inventory, capitalized costs to be liquidated under firm orders | $ 4.6 | $ 3.9 |
GOODWILL (Detail)
GOODWILL (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2016 | $ 951,057 |
Goodwill, Acquired During Period | 116,267 |
Foreign currency translation adjustment | 15,620 |
June 30, 2017 | 1,082,944 |
Commercial Industrial [Member] | |
Goodwill [Roll Forward] | |
December 31, 2016 | 436,141 |
Goodwill, Acquired During Period | 2,420 |
Foreign currency translation adjustment | 6,468 |
June 30, 2017 | 445,029 |
Defense [Member] | |
Goodwill [Roll Forward] | |
December 31, 2016 | 327,655 |
Goodwill, Acquired During Period | 113,847 |
Foreign currency translation adjustment | 9,044 |
June 30, 2017 | 450,546 |
Power [Member] | |
Goodwill [Roll Forward] | |
December 31, 2016 | 187,261 |
Foreign currency translation adjustment | 108 |
June 30, 2017 | $ 187,369 |
OTHER INTANGIBLE ASSETS, NET (D
OTHER INTANGIBLE ASSETS, NET (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 644,608 | $ 553,310 |
Accumulated Amortization | (298,617) | (281,849) |
Net | 345,991 | 271,461 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 240,858 | 166,859 |
Accumulated Amortization | (105,400) | (98,266) |
Net | 135,458 | 68,593 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 363,500 | 349,742 |
Accumulated Amortization | (168,351) | (157,154) |
Net | 195,149 | 192,588 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 40,250 | 36,709 |
Accumulated Amortization | (24,866) | (26,429) |
Net | $ 15,384 | $ 10,280 |
OTHER INTANGIBLE ASSETS, NET (N
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 88.9 | |
Amortization expense | 19.1 | $ 16.8 |
Future amortization expense in remainder of fiscal year | 38.7 | |
Future amortization expense in year two | 37.7 | |
Future amortization expense in year three | 36 | |
Future amortization expense in year four | 34.1 | |
Future amortization expense in year five | 32.3 | |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 73 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 12.9 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 16 years 3 months 18 days | |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 3 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
FAIR VALUE OF FINANCIAL INSTR43
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
General And Administrative Expense [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
General and administrative expenses | $ (93) | $ 4,452 | $ 614 | $ 5,036 |
FAIR VALUE OF FINANCIAL INSTR44
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 965,630 | $ 966,298 |
Estimated Fair Value | 1,000,341 | 978,652 |
Long-term Debt, Gross | 950,820 | 950,668 |
Debt Issuance Costs, Net | (907) | (984) |
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 15,717 | 16,614 |
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 | $ 152,161 | 154,509 |
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 | 100,000 |
Estimated Fair Value | $ 104,107 | 102,463 |
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 | $ 232,173 | 226,946 |
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 | 100,000 |
Estimated Fair Value | $ 103,389 | 100,338 |
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 | 200,000 |
Estimated Fair Value | $ 211,038 | 203,592 |
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 | 75,000 |
Estimated Fair Value | $ 77,685 | 74,630 |
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 | $ 104,158 | 99,876 |
Debt Instrument, Interest Rate, Stated Percentage | 4.11% | |
Other debt [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 820 | 668 |
Estimated Fair Value | 820 | 668 |
Long-term Debt, gross [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | $ 985,531 | $ 963,022 |
PENSION AND OTHER POSTRETIREM45
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) - Pension Plans Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,474 | $ 6,248 | $ 12,945 | $ 12,485 |
Interest cost | 6,236 | 7,709 | 12,455 | 15,412 |
Expected return on plan assets | (13,310) | (13,590) | (26,595) | (27,171) |
Amortization of prior service cost | (26) | (11) | (51) | (23) |
Amortization of unrecognized actuarial loss | 3,585 | 3,093 | 7,166 | 6,186 |
Net postretirement benefit cost (income) | $ 2,959 | $ 3,449 | $ 5,920 | $ 6,889 |
PENSION AND OTHER POSTRETIREM46
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Defined Contribution Plan, Cost | $ 6.8 | $ 6 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 9.4 | ||
Scenario, Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 11.8 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Basic weighted-average shares outstanding (shares) | 44,213 | 44,487 | 44,221 | 44,526 |
Dilutive effect of stock options and deferred stock compensation (shares) | 594 | 677 | 604 | 669 |
Diluted weighted-average shares outstanding (shares) | 44,807 | 45,164 | 44,825 | 45,195 |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Anti-dilutive) (Details) shares in Thousands | 3 Months Ended |
Jun. 30, 2017shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 38 |
SEGMENT INFORMATION (Detail)
SEGMENT INFORMATION (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 567,653 | $ 532,766 | $ 1,091,244 | $ 1,036,273 | |
Operating income (expense) | 83,271 | 68,089 | 134,498 | 125,352 | |
Identifiable assets | 3,121,274 | 3,121,274 | $ 3,037,781 | ||
Commercial Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 291,856 | 290,428 | 570,912 | 565,633 | |
Operating income (expense) | 43,693 | 38,957 | 74,314 | 69,009 | |
Identifiable assets | 1,420,411 | 1,420,411 | 1,391,040 | ||
Defense [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 127,399 | 114,877 | 242,236 | 220,607 | |
Operating income (expense) | 21,187 | 18,609 | 32,342 | 35,454 | |
Identifiable assets | 1,013,636 | 1,013,636 | 751,859 | ||
Power [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 149,970 | 129,123 | 280,565 | 252,869 | |
Operating income (expense) | 24,870 | 16,114 | 41,410 | 30,742 | |
Identifiable assets | 517,053 | 517,053 | 516,321 | ||
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (expense) | (6,479) | (5,591) | (13,568) | (9,853) | |
Identifiable assets | 170,174 | 170,174 | $ 378,561 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (1,572) | $ (1,662) | $ (2,469) | $ (2,836) |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting [Abstract] | ||||
Total operating income | $ 83,271 | $ 68,089 | $ 134,498 | $ 125,352 |
Interest expense | (10,750) | (10,273) | (21,127) | (20,206) |
Other income, net | 190 | 101 | 502 | 335 |
Earnings before income taxes | $ 72,711 | $ 57,917 | $ 113,873 | $ 105,481 |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (291,756) | $ (225,928) | $ (225,928) | ||
Other comprehensive income (loss) before reclassifications | 43,394 | (72,732) | |||
Amounts reclassified from accumulated other comprehensive loss | 4,201 | 6,904 | |||
Other comprehensive income (loss), net of tax | $ 34,420 | $ (30,126) | 47,595 | (11,409) | (65,828) |
Ending balance | (244,161) | (244,161) | (291,756) | ||
Foreign Currency Translation Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (172,650) | (107,810) | (107,810) | ||
Other comprehensive income (loss) before reclassifications | 43,901 | (64,840) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||
Other comprehensive income (loss), net of tax | 43,901 | (64,840) | |||
Ending balance | (128,749) | (128,749) | (172,650) | ||
Total Pension and Postretirment Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (119,106) | $ (118,118) | (118,118) | ||
Other comprehensive income (loss) before reclassifications | (507) | (7,892) | |||
Amounts reclassified from accumulated other comprehensive loss | 4,201 | 6,904 | |||
Other comprehensive income (loss), net of tax | 3,694 | (988) | |||
Ending balance | $ (115,412) | $ (115,412) | $ (119,106) |
ACCUMULATED OTHER COMPREHENSI52
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Earnings from continuing operations before income taxes | $ 72,711 | $ 57,917 | $ 113,873 | $ 105,481 |
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 | 379 | |||
Amortization of actuarial losses | (7,064) | |||
Earnings from continuing operations before income taxes | (6,685) | |||
Income tax | 2,484 | |||
Net earnings | $ (4,201) |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Detail) - USD ($) | Oct. 10, 2013 | Jun. 30, 2017 | Mar. 29, 2017 | Dec. 31, 2016 |
Standby Letters Of Credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, outstanding | $ 48,800,000 | $ 47,200,000 | ||
FinancialStandbyLetterOfCreditMember | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, outstanding | 13,900,000 | $ 12,800,000 | ||
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 | 56,000,000 | |||
Westinghouse Electric Company (WEC) [Member] | Pending Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Debtor-in-Possession Financing, Amount Arranged | $ 800,000,000 | |||
AP1000 US [Member] | Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Range of possible loss | 0 | |||
AP1000 US [Member] | Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Range of possible loss | $ 31,000,000 | |||
Westinghouse Electric Company (WEC) [Member] | Collectibility of Receivables [Member] | ||||
Loss Contingencies [Line Items] | ||||
Range of possible loss | $ 6,500,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Scenario, Forecast [Member] - $ / shares | Jul. 20, 2017 | Sep. 30, 2017 |
Subsequent Event [Line Items] | ||
Increase (Decrease) In Dividends Payable, per share | $ 0.02 | |
Increase (Decrease) In Dividends Payable, percentage | 15.00% | |
Dividends Payable, Amount Per Share | $ 0.15 |