Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Curtiss Wright Corporation | |
Entity Central Index Key | 0000026324 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q/A | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | true | |
Amendment Description | This Amendment No. 1 to the Quarterly Report on Form 10-Q/A of Curtiss-Wright Corporation, as originally filed with the Securities and Exchange Commission on May 9, 2019 (the “Original Filing”), is being filed solely to correct an inadvertent overstatement of estimated amortization expense for the five years ending December 31, 2019 through 2023 as disclosed in the Notes to the Condensed Consolidated Financial Statements. Specifically, page 13 of the Original Filing included the following sentence: “The estimated amortization expense for the five years ending December 31, 2019 through 2023 is $72.8 million, $71.0 million, $69.1 million, $66.6 million, and $62.9 million, respectively.” The sentence has been amended to state the following: “The estimated amortization expense for the five years ending December 31, 2019 through 2023 is $45.3 million, $43.4 million, $41.5 million, $39.0 million, and $35.3 million, respectively.” Except as described above, no other changes have been made to the Original Filing. This Form 10-Q/A does not reflect any subsequent events that may have occurred since the date of the Original Filing. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended, we have included new certifications from our Chief Executive Officer and Chief Financial Officer dated as of the date of this Form 10-Q/A. | |
Entity common stock shares outstanding (in shares) | 42,772,893 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Trading Symbol | CW |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net sales | ||
Net sales | $ 578,314 | $ 547,522 |
Total net sales | 578,314 | 547,522 |
Cost of sales | ||
Total cost of sales | 381,441 | 366,331 |
Gross profit | 196,873 | 181,191 |
Research and development expenses | 17,241 | 15,941 |
Selling expenses | 31,477 | 31,520 |
General and administrative expenses | 76,110 | 69,232 |
Operating income | 72,045 | 64,498 |
Interest expense | (7,272) | (8,204) |
Other income, net | 5,478 | 4,683 |
Earnings before income taxes | 70,251 | 60,977 |
Provision for income taxes | (14,658) | (17,334) |
Net earnings | $ 55,593 | $ 43,643 |
Earnings Per Share, Basic [Abstract] | ||
Basic earnings per share (usd per share) | $ 1.30 | $ 0.99 |
Earnings Per Share, Diluted [Abstract] | ||
Diluted earnings per share (usd per share) | 1.29 | 0.98 |
Dividends per share | $ 0.15 | $ 0.15 |
Weighted average shares outstanding: | ||
Basic (shares) | 42,799 | 44,188 |
Diluted (shares) | 43,058 | 44,678 |
Product [Member] | ||
Net sales | ||
Net sales | $ 471,599 | $ 444,687 |
Cost of sales | ||
Cost of product sales | 311,956 | 299,311 |
Service [Member] | ||
Net sales | ||
Net sales | 106,715 | 102,835 |
Cost of sales | ||
Cost of product sales | $ 69,485 | $ 67,020 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Net earnings | $ 55,593 | $ 43,643 | |
Other comprehensive income | |||
Foreign currency translation adjustments, net of tax (1) | [1] | 8,242 | 15,411 |
Pension and postretirement adjustments, net of tax (2) | [2] | 1,683 | 2,622 |
Other comprehensive income, net of tax | 9,925 | 18,033 | |
Comprehensive income | $ 65,518 | $ 61,676 | |
[1] | (1) The tax benefit/(expense) included in other comprehensive income for foreign currency translation adjustments for the three months ended March 31, 2019 and 2018 was ($0.1) million and $0.7 million, respectively. | ||
[2] | (2) The tax expense included in other comprehensive income for pension and postretirement adjustments for the three months ended March 31, 2019 and 2018 was $0.6 million and $0.9 million, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ (0.1) | $ 0.7 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | $ 0.6 | $ 0.9 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 154,428 | $ 276,066 |
Receivables, net | 591,562 | 593,755 |
Inventory, Net | 447,022 | 423,426 |
Other current assets | 45,727 | 50,719 |
Total current assets | 1,238,739 | 1,343,966 |
Property, plant, and equipment, net | 375,296 | 374,660 |
Goodwill | 1,111,342 | 1,088,032 |
Other intangible assets, net | 444,741 | 429,567 |
Operating lease right-of-use assets | 138,525 | 0 |
Other assets | 20,159 | 19,160 |
Total assets | 3,328,802 | 3,255,385 |
Current liabilities: | ||
Current portion of long-term debt and short-term debt | 161 | 243 |
Accounts payable | 176,439 | 232,983 |
Accrued expenses | 114,062 | 166,954 |
Income taxes payable | 13,708 | 5,811 |
Deferred revenue | 225,925 | 236,508 |
Other current liabilities | 72,973 | 44,829 |
Total current liabilities | 603,268 | 687,328 |
Long-term debt | 761,894 | 762,313 |
Deferred tax liabilities, net | 49,305 | 47,121 |
Accrued pension and other postretirement benefit costs | 99,389 | 101,227 |
Long-term operating lease liability | 124,014 | 0 |
Long-term portion of environmental reserves | 15,847 | 15,777 |
Other liabilities | 89,505 | 110,838 |
Total liabilities | 1,743,222 | 1,724,604 |
Stockholders' Equity | ||
Common stock, $1 par value,100,000,000 shares authorized as of March 31, 2019 and December 31, 2018; 49,187,378 shares issued as of March 31, 2019 and December 31, 2018; outstanding shares were 42,801,008 as of March 31, 2019 and 42,772,417 as of December 31, 2018 | 49,187 | 49,187 |
Additional paid in capital | 114,696 | 118,234 |
Retained earnings | 2,266,902 | 2,191,471 |
Accumulated other comprehensive loss | (304,779) | (288,447) |
Common treasury stock, at cost (6,386,370 shares as of March 31, 2019 and 6,414,961 shares as of December 31, 2018) | (540,426) | (539,664) |
Total stockholders' equity | 1,585,580 | 1,530,781 |
Total liabilities and stockholders' equity | $ 3,328,802 | $ 3,255,385 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 42,801,008 | 42,772,417 |
Treasury Stock, Shares | 6,386,370 | 6,414,961 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 55,593 | $ 43,643 |
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 25,793 | 24,601 |
Gain (Loss) on Disposition of Other Assets | 0 | 2,108 |
Gain on fixed asset disposals | (504) | (697) |
Deferred income taxes | 1,626 | 7,806 |
Share-based compensation | 3,495 | 4,591 |
Change in operating assets and liabilities, net of businesses acquired and divested: | ||
Accounts receivable, net | 7,360 | (2,451) |
Inventories, net | (22,024) | (28,652) |
Progress payments | (1,594) | (3,121) |
Accounts payable and accrued expenses | (108,873) | (79,564) |
Deferred revenue | (11,764) | 6,410 |
Income taxes payable | 11,948 | 1,407 |
Net pension and postretirement liabilities | 255 | (48,704) |
Other current and long-term assets and liabilities | (13,169) | 5,577 |
Net cash used for operating activities | (51,858) | (71,262) |
Cash flows from investing activities: | ||
Proceeds from sales and disposals of long lived assets | 1,268 | 819 |
Additions to property, plant, and equipment | (17,034) | (8,971) |
Payments to Acquire Intangible Assets | (137) | (1,500) |
Payments to Acquire Businesses, Net of Cash Acquired | (49,037) | 0 |
Net cash used for investing activities | (64,940) | (9,652) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 3,837 | 3,716 |
Repayments of Lines of Credit | (3,919) | (2,884) |
Repurchases of common stock | (12,471) | (12,328) |
Proceeds from share-based compensation | 4,677 | 6,151 |
Proceeds from (Payments for) Other Financing Activities | (197) | (181) |
Net cash used for financing activities | (8,073) | (5,526) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Effect of exchange-rate changes on cash | 3,233 | 7,838 |
Net decrease in cash and cash equivalents | (121,638) | (78,602) |
Cash and cash equivalents at beginning of period | 276,066 | 475,120 |
Cash and cash equivalents at end of period | 154,428 | 396,518 |
Supplemental disclosure of non-cash activities: | ||
Capital expenditures incurred but not yet paid | $ 264 | $ 182 |
CONDENSED CONSOLIDATED STATEM_5
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 Income (Loss) Member | Treasury Stock Member |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accumulated other comprehensive loss | $ (216,840) | |||||
Beginning Balance at Dec. 31, 2017 | $ 49,187 | $ 120,609 | $ 1,944,324 | $ (216,840) | $ (369,480) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 275,749 | |||||
Other comprehensive income, net of tax | (71,607) | (71,607) | ||||
Dividends paid/declared | (26,328) | |||||
Restricted stock | (13,134) | 13,134 | ||||
Stock options exercised | (2,355) | 14,294 | ||||
Share-based compensation | 13,866 | 228 | ||||
Repurchases of common stock | (198,592) | |||||
Other | (752) | 752 | ||||
Ending Balance at Dec. 31, 2018 | 1,530,781 | 49,187 | 118,234 | 2,191,471 | (288,447) | (539,664) |
Retained earnings | 2,191,471 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member] | (2,274) | |||||
Accumulated other comprehensive loss | (288,447) | |||||
Net earnings | 55,593 | 55,593 | ||||
Other comprehensive income, net of tax | 9,925 | 9,925 | ||||
Dividends paid/declared | (6,419) | |||||
Restricted stock | (5,491) | 5,491 | ||||
Stock options exercised | (519) | 5,195 | ||||
Share-based compensation | 3,133 | 362 | ||||
Repurchases of common stock | (12,471) | |||||
Other | (661) | 661 | ||||
Ending Balance at Mar. 31, 2019 | 1,585,580 | $ 49,187 | $ 114,696 | $ 2,266,902 | $ (304,779) | $ (540,426) |
Retained earnings | 2,266,902 | |||||
Retained earnings | Accounting Standards Update 2018-02 [Member] | 26,257 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accumulated other comprehensive loss | (304,779) | |||||
Accumulated other comprehensive loss | Accounting Standards Update 2018-02 [Member] | $ (26,257) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1 . BASIS OF PRESENTATION Curtiss-Wright Corporation and its subsidiaries (the "Corporation" or the "Company") is a global, diversified 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, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. In the three month periods ended March 31, 2019 and 2018 , there were no 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 2018 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 ASU 2016-02 - Leases - On January 1, 2019, the Corporation adopted ASC 842, Leases, using the optional transition method of adoption which permits the entity to continue presenting all periods prior to January 1, 2019 under previous lease accounting guidance. In conjunction with the adoption, the Corporation elected the package of practical expedients which permits the entity to forgo reassessment of conclusions reached regarding lease existence and lease classification under previous guidance, as well as the practical expedient to not separate non-lease components. Further, the Corporation made an accounting policy election to account for short-term leases in a manner consistent with the methodology applied under previous guidance. The adoption of this standard resulted in an increase of approximately $151 million in both total assets and total liabilities in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019. ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - On January 1, 2019, the Corporation adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the 2017 Tax Cuts and Jobs Act (the Tax Act). The adoption of this standard resulted in a reclassification of $26 million from accumulated other comprehensive loss to retained earnings in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019. |
REVENUE (Notes)
REVENUE (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2 . REVENUE The Corporation recognizes revenue when control of a promised good and/or service is transferred to a customer in an amount that reflects the consideration that the Corporation expects to be entitled to in exchange for that good and/or service. Performance Obligations The Corporation identifies a performance obligation for each promise in a contract to transfer a distinct good or service to the customer. As part of its assessment, the Corporation considers all goods and/or services promised in the contract, regardless of whether they are explicitly stated or implied by customary business practices. The Corporation’s contracts may contain either a single performance obligation, including the promise to transfer individual goods or services that are not separately distinct within the context of the respective contracts, or multiple performance obligations. For contracts with multiple performance obligations, the Corporation allocates the overall transaction price to each performance obligation using standalone selling prices, where available, or utilizes estimates for each distinct good or service in the contract where standalone prices are not available. The Corporation’s performance obligations are satisfied either at a point-in-time or on an over-time basis. Revenue recognized on an over-time basis accounted for approximately 48% and 45% of total net sales for the three months ended March 31, 2019 and 2018 , respectively. Typically, over-time revenue recognition is based on the utilization of an input measure used to measure progress, such as costs incurred to date relative to total estimated costs. Revenue recognized at a point-in-time accounted for approximately 52% and 55% of total net sales for the three months ended March 31, 2019 and 2018 , respectively. Revenue for these types of arrangements is recognized at the point in time in which control is transferred to the customer, typically based upon the terms of delivery. Contract backlog represents the remaining performance obligations that have not yet been recognized as revenue. Backlog includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Total backlog was approximately $2.3 billion as of March 31, 2019 , of which the Corporation expects to recognize approximately 93% as net sales over the next 12 -36 months . The remainder will be recognized thereafter. Disaggregation of Revenue The following table presents the Corporation’s total net sales disaggregated by end market and customer type: Three Months Ended March 31, Total Net Sales by End Market and Customer Type (In thousands) 2019 2018 Defense Aerospace $ 78,787 $ 79,153 Ground 20,758 22,519 Naval 131,088 103,489 Total Defense Customers $ 230,633 $ 205,161 Commercial Aerospace $ 103,221 $ 99,404 Power Generation 96,480 98,319 General Industrial 147,980 144,638 Total Commercial Customers $ 347,681 $ 342,361 Total $ 578,314 $ 547,522 Note: Certain amounts in the prior year have been reclassed to conform to the current year presentation. Contract Balances Timing of revenue recognition and cash collection may result in billed receivables, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the Condensed Consolidated Balance Sheet. The Corporation’s contract assets primarily relate to its rights to consideration for work completed but not billed as of the reporting date. Contract assets are transferred to billed receivables when the rights to consideration become unconditional. This is typical in situations where amounts are billed as work progresses in accordance with agreed-upon contractual terms or upon achievement of contractual milestones. The Corporation’s contract liabilities primarily consist of customer advances received prior to revenue being earned. Revenue recognized during the three months ended March 31, 2019 included in the contract liabilities balance at the beginning of the year was approximately $79 million . Changes in contract assets and contract liabilities as of March 31, 2019 , were not materially impacted by any other factors. Contract assets and contract liabilities are reported in the "Receivables, net" and "Deferred revenue" lines, respectively, within the Condensed Consolidated Balance Sheet. |
ACQUISITIONS ACQUISITIONS
ACQUISITIONS ACQUISITIONS | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 3 . 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 three months ended March 31, 2019 , the Corporation acquired one business for an aggregate purchase price of $49 million , which is described in more detail below. No acquisitions were made during the three months ended March 31, 2018 . The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for the three months ended March 31, 2019 . (In thousands) 2019 Accounts receivable $ 2,300 Inventory 322 Property, plant, and equipment 648 Other current and non-current assets 180 Intangible assets 26,000 Operating lease right-of-use assets, net 1,410 Current and non-current liabilities (2,970 ) Net tangible and intangible assets 27,890 Purchase price, net of cash acquired 49,037 Goodwill $ 21,147 Goodwill deductible for tax purposes $ 21,147 2019 Acquisitions Tactical Communications Group (TCG) On March 15, 2019 , the Corporation acquired 100% of the membership interest of TCG for $49 million , net of cash acquired. The 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. TCG is a designer and manufacturer of tactical data link software solutions for critical military communications systems. The acquired business operates within the Defense segment. |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
RECEIVABLES | 4 . RECEIVABLES Receivables primarily include amounts billed to customers, unbilled charges on long-term contracts consisting of amounts recognized as sales but not billed, and other receivables. Substantially all amounts of unbilled receivables are expected to be billed and collected within one year. An immaterial amount of unbilled receivables are subject to retainage provisions. The amount of claims and unapproved change orders within our receivables balances are immaterial. The composition of receivables is as follows: (In thousands) March 31, 2019 December 31, 2018 Billed receivables: Trade and other receivables $ 378,350 $ 390,306 Less: Allowance for doubtful accounts (8,395 ) (7,436 ) Net billed receivables 369,955 382,870 Unbilled receivables (Contract Assets): Recoverable costs and estimated earnings not billed 234,286 225,810 Less: Progress payments applied (12,679 ) (14,925 ) Net unbilled receivables 221,607 210,885 Receivables, net $ 591,562 $ 593,755 |
GOODWILL
GOODWILL | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill [Abstract] | |
GOODWILL | 6 . GOODWILL The changes in the carrying amount of goodwill for the three months ended March 31, 2019 are as follows: (In thousands) Commercial/ Industrial Defense Power Consolidated December 31, 2018 $ 442,015 $ 448,871 $ 197,146 $ 1,088,032 Acquisitions — 21,147 — 21,147 Adjustments — (208 ) — (208 ) Foreign currency translation adjustment 742 1,567 62 2,371 March 31, 2019 $ 442,757 $ 471,377 $ 197,208 $ 1,111,342 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2019 | |
Inventory, Net [Abstract] | |
INVENTORIES | 5 . 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) March 31, 2019 December 31, 2018 Raw materials $ 201,889 $ 214,442 Work-in-process 90,406 74,536 Finished goods and component parts 145,923 143,016 Inventoried costs related to U.S. Government and other long-term contracts 74,343 54,195 Gross inventories 512,561 486,189 Less: Inventory reserves (58,046 ) (55,776 ) Progress payments applied (7,493 ) (6,987 ) Inventories, net $ 447,022 $ 423,426 Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $45.0 million and $44.4 million as of March 31, 2019 and December 31, 2018 , respectively. These capitalized costs will be liquidated as control of production units is transferred to the customer. As of March 31, 2019 and December 31, 2018 , $34.3 million and $18.7 million , respectively, are scheduled to be liquidated under existing firm orders. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER INTANGIBLE ASSETS, NET | 7 . OTHER INTANGIBLE ASSETS, NET The following tables present the cumulative composition of the Corporation’s intangible assets: March 31, 2019 December 31, 2018 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 245,236 $ (127,077 ) $ 118,159 $ 238,212 $ (123,156 ) $ 115,056 Customer related intangibles 378,446 (199,130 ) 179,316 358,832 (193,455 ) 165,377 Programs (1) 144,000 (7,200 ) 136,800 144,000 (5,400 ) 138,600 Other intangible assets 41,217 (30,751 ) 10,466 40,340 (29,806 ) 10,534 Total $ 808,899 $ (364,158 ) $ 444,741 $ 781,384 $ (351,817 ) $ 429,567 (1) Programs include values assigned to major programs of acquired businesses and represent the aggregate value associated with the customer relationships, contracts, technology, and trademarks underlying the associated program. During the three months ended March 31, 2019 , the Corporation acquired intangible assets of $26.0 million . The Corporation acquired Customer-related intangibles of $18.4 million , Technology of $6.8 million , and Other intangible assets of $0.8 million , which have a weighted average amortization period of 15.0 years, 14.0 years, and 8.0 years, respectively. Total intangible amortization expense for the three months ended March 31, 2019 was $11.2 million as compared to $9.6 million in the comparable prior year period. The estimated amortization expense for the five years ending December 31, 2019 through 2023 is $45.3 million , $43.4 million , $41.5 million , $39.0 million , and $35.3 million , respectively. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Corporation conducts a portion of its operations from leased facilities, which include manufacturing and service facilities, administrative offices, and warehouses. In addition, the Corporation leases vehicles, machinery, and office equipment under operating leases. Our leases have remaining lease terms of 1 year to 25 years, some of which include options for renewals, escalations, or terminations. The components of lease expense were as follows: Three Months Ended (In thousands) March 31, 2019 Operating lease cost $ 8,212 Finance lease cost: Amortization of right-of-use assets $ 197 Interest on lease liabilities 128 Total finance lease cost $ 325 Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31, 2019 Cash used for operating activities: Operating cash flows from operating leases $ (7,764 ) Operating cash flows from finance leases (127 ) Supplemental balance sheet information related to leases was as follows: (In thousands, except lease term and discount rate) As of March 31, 2019 Operating Leases Operating lease right-of-use assets, net $ 138,525 Other current liabilities $ 21,835 Long-term operating lease liability 124,014 Total operating lease liabilities $ 145,849 Finance Leases Property, plant, and equipment $ 15,561 Accumulated depreciation (4,755 ) Property, plant, and equipment, net $ 10,806 Other current liabilities $ 761 Other liabilities 11,646 Total finance lease liabilities $ 12,407 Weighted average remaining lease term Operating leases 8.3 years Finance leases 10.4 years Weighted average discount rate Operating leases 3.85 % Finance leases 4.05 % Maturities of lease liabilities were as follows: As of March 31, 2019 (In thousands) Operating Leases Finance Leases 2019 $ 21,905 $ 984 2020 27,375 1,342 2021 24,422 1,375 2022 18,215 1,410 2023 16,188 1,445 Thereafter 63,870 8,783 Total lease payments $ 171,975 $ 15,339 Less: imputed interest (26,126 ) (2,932 ) Total $ 145,849 $ 12,407 In November 2018, the Corporation entered into a build-to-suit lease of approximately $27 million for the construction of a new facility for DRG in Charleston, South Carolina. The lease has not been reflected in the Corporation’s condensed consolidated financial statements as of March 31, 2019 as the Corporation has not yet obtained the right to control the use of the facility. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 . 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 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 Condensed Consolidated Balance Sheets As of March 31, 2019 and December 31, 2018 , 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 gains recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three months ended March 31, were as follows: Three Months Ended (In thousands) March 31, Derivatives not designated as hedging instrument 2019 2018 Forward exchange contracts: General and administrative expenses $ 3,589 $ 353 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 issuances as of March 31, 2019 . 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. March 31, 2019 December 31, 2018 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 3.84% Senior notes due 2021 100,000 100,685 100,000 100,359 3.70% Senior notes due 2023 202,500 203,134 202,500 201,813 3.85% Senior notes due 2025 90,000 90,665 90,000 89,711 4.24% Senior notes due 2026 200,000 204,746 200,000 202,288 4.05% Senior notes due 2028 67,500 67,904 67,500 66,942 4.11% Senior notes due 2028 90,000 90,840 90,000 89,647 Other debt 161 161 243 243 Total debt 750,161 758,135 750,243 751,003 Debt issuance costs, net (684 ) (684 ) (714 ) (714 ) Unamortized interest rate swap proceeds 12,578 12,578 13,027 13,027 Total debt, net $ 762,055 $ 770,029 $ 762,556 $ 763,316 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits, Description [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 10 . PENSION PLANS The following table is a consolidated disclosure of all domestic and foreign defined benefit pension plans as described in the Corporation’s 2018 Annual Report on Form 10-K filed with the SEC. Pension Plans The components of net periodic pension cost for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, (In thousands) 2019 2018 Service cost $ 5,826 $ 6,506 Interest cost 7,372 6,534 Expected return on plan assets (14,884 ) (14,716 ) Amortization of prior service cost (71 ) (63 ) Amortization of unrecognized actuarial loss 2,592 3,906 Net periodic benefit cost $ 835 $ 2,167 The Corporation does not expect to make any contributions to the Curtiss-Wright Pension Plan in 2019 . Contributions to the foreign benefit plans are not expected to be material in 2019 . During the three months ended March 31, 2018 , the Corporation made a $50 million voluntary contribution to the Curtiss-Wright Pension Plan. Defined Contribution Retirement Plan Effective January 1, 2014 , all non-union employees who were 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. Effective January 1, 2019, the Corporation increased the employer match opportunity, raising the maximum employer contribution from 6% to 7% of eligible compensation. During the three months ended March 31, 2019 and 2018 , the expense relating to the plan was $5.4 million and $4.2 million , respectively. The Corporation made $10.9 million in contributions to the plan for the first quarter of 2019 , and expects to make total contributions of $15.1 million in 2019 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 11 . 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 March 31, (In thousands) 2019 2018 Basic weighted-average shares outstanding 42,799 44,188 Dilutive effect of stock options and deferred stock compensation 259 490 Diluted weighted-average shares outstanding 43,058 44,678 For the three months ended March 31, 2019 and March 31, 2018 , there were no anti-dilutive equity-based awards. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 12 . 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 March 31, (In thousands) 2019 2018 Net sales Commercial/Industrial $ 293,750 $ 296,753 Defense 121,497 120,883 Power 164,147 132,158 Less: Intersegment revenues (1,080 ) (2,272 ) Total consolidated $ 578,314 $ 547,522 Operating income (expense) Commercial/Industrial $ 39,446 $ 39,225 Defense 17,653 19,728 Power 24,219 15,342 Corporate and eliminations (1) (9,273 ) (9,797 ) Total consolidated $ 72,045 $ 64,498 (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: Three Months Ended March 31, (In thousands) 2019 2018 Total operating income $ 72,045 $ 64,498 Interest expense 7,272 8,204 Other income, net 5,478 4,683 Earnings before income taxes $ 70,251 $ 60,977 (In thousands) March 31, 2019 December 31, 2018 Identifiable assets Commercial/Industrial $ 1,455,070 $ 1,398,601 Defense 1,036,152 961,298 Power 762,935 720,073 Corporate and Other 74,645 175,413 Total consolidated $ 3,328,802 $ 3,255,385 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13 . ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The cumulative balance of each component of accumulated other comprehensive income (loss), net of tax, is as follows: (In thousands) Foreign currency translation adjustments, net Total pension and postretirement adjustments, net Accumulated other comprehensive income (loss) December 31, 2017 $ (94,708 ) $ (122,132 ) $ (216,840 ) Other comprehensive loss before reclassifications (1) (52,440 ) (31,380 ) (83,820 ) Amounts reclassified from accumulated other comprehensive loss (1) — 12,213 12,213 Net current period other comprehensive loss (52,440 ) (19,167 ) (71,607 ) December 31, 2018 $ (147,148 ) $ (141,299 ) $ (288,447 ) Other comprehensive income (loss) before reclassifications (1) 8,242 (61 ) 8,181 Amounts reclassified from accumulated other comprehensive income (loss) (1) — 1,744 1,744 Net current period other comprehensive income 8,242 1,683 9,925 Cumulative effect from adoption of ASU 2018-02 (2) (1,318 ) (24,939 ) (26,257 ) March 31, 2019 $ (140,224 ) $ (164,555 ) $ (304,779 ) (1) All amounts are after tax. (2) Reclassification to retained earnings due to adoption of ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . See Note 1 for additional information. Details of amounts reclassified from accumulated other comprehensive income (loss) are below: (In thousands) Amount reclassified from Accumulated other comprehensive income (loss) Affected line item in the statement where net earnings is presented Defined benefit pension and other postretirement benefit plans Amortization of prior service costs 235 (1) Amortization of actuarial losses (2,546 ) (1) (2,311 ) Total before tax 567 Income tax Total reclassifications $ (1,744 ) Net of tax (1) These items are included in the computation of net periodic pension cost. See Note 10 , Pension Plans. |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENTS | 14 . 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 as well as its acquired businesses’ operations and the relatively non-friable condition of asbestos in its historical 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 and indemnification agreements 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. In October 2017, all parties agreed in principle to participate in a formal mediation in late 2018 with the intention of settling this claim. In an effort to induce the parties to participate in the formal mediation, CNRL agreed to reduce its claim to approximately $400 million , which reflects the monetary amount of property damage incurred as a result of the fire and explosion. The Corporation is currently unable to estimate an amount, or range of potential losses, if any, from this matter. The Corporation believes that 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. 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 March 31, 2019 and December 31, 2018 , there were $24.0 million and $21.7 million of stand-by letters of credit outstanding, respectively, and $11.1 million and $11.7 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 $45.6 million surety bond. AP1000 Program Within the Corporation’s Power segment, our Electro-Mechanical Division is the reactor coolant pump (RCP) supplier for the WEC 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 WEC stating entitlements to the maximum amount of liquidated damages allowable under the AP1000 China contract of approximately $25 million . The Corporation would be liable for liquidated damages under the contract if certain contractual delivery dates were not met and if the Corporation was deemed responsible for the delay. As of March 31, 2019 , the Corporation has not met certain contractual delivery dates under its AP 1000 contracts; however there are significant uncertainties as to which parties are responsible for the delays. The Corporation believes it has adequate legal defenses and intends to vigorously defend this matter. Given the uncertainties surrounding the responsibility for the delays, no accrual has been made for this matter as of March 31, 2019 . As of March 31, 2019 , the range of possible loss is $0 million to $31 million for the AP1000 U.S. contract, for a total range of possible loss of $0 million to $55.5 million . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Accounting | Curtiss-Wright Corporation and its subsidiaries (the "Corporation" or the "Company") is a global, diversified 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, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. In the three month periods ended March 31, 2019 and 2018 , there were no 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 2018 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 ASU 2016-02 - Leases - On January 1, 2019, the Corporation adopted ASC 842, Leases, using the optional transition method of adoption which permits the entity to continue presenting all periods prior to January 1, 2019 under previous lease accounting guidance. In conjunction with the adoption, the Corporation elected the package of practical expedients which permits the entity to forgo reassessment of conclusions reached regarding lease existence and lease classification under previous guidance, as well as the practical expedient to not separate non-lease components. Further, the Corporation made an accounting policy election to account for short-term leases in a manner consistent with the methodology applied under previous guidance. The adoption of this standard resulted in an increase of approximately $151 million in both total assets and total liabilities in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019. ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - On January 1, 2019, the Corporation adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the 2017 Tax Cuts and Jobs Act (the Tax Act). The adoption of this standard resulted in a reclassification of $26 million from accumulated other comprehensive loss to retained earnings in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 ASU 2016-02 - Leases - On January 1, 2019, the Corporation adopted ASC 842, Leases, using the optional transition method of adoption which permits the entity to continue presenting all periods prior to January 1, 2019 under previous lease accounting guidance. In conjunction with the adoption, the Corporation elected the package of practical expedients which permits the entity to forgo reassessment of conclusions reached regarding lease existence and lease classification under previous guidance, as well as the practical expedient to not separate non-lease components. Further, the Corporation made an accounting policy election to account for short-term leases in a manner consistent with the methodology applied under previous guidance. The adoption of this standard resulted in an increase of approximately $151 million in both total assets and total liabilities in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019. ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - On January 1, 2019, the Corporation adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the 2017 Tax Cuts and Jobs Act (the Tax Act). The adoption of this standard resulted in a reclassification of $26 million from accumulated other comprehensive loss to retained earnings in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table presents the Corporation’s total net sales disaggregated by end market and customer type: Three Months Ended March 31, Total Net Sales by End Market and Customer Type (In thousands) 2019 2018 Defense Aerospace $ 78,787 $ 79,153 Ground 20,758 22,519 Naval 131,088 103,489 Total Defense Customers $ 230,633 $ 205,161 Commercial Aerospace $ 103,221 $ 99,404 Power Generation 96,480 98,319 General Industrial 147,980 144,638 Total Commercial Customers $ 347,681 $ 342,361 Total $ 578,314 $ 547,522 Note: Certain amounts in the prior year have been reclassed to conform to the current year presentation. |
ACQUISITIONS ACQUISITIONS (Tabl
ACQUISITIONS ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] |
RECEIVABLES (Table)
RECEIVABLES (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule Of Accounts Notes Loans And Financing Receivable | The composition of receivables is as follows: (In thousands) March 31, 2019 December 31, 2018 Billed receivables: Trade and other receivables $ 378,350 $ 390,306 Less: Allowance for doubtful accounts (8,395 ) (7,436 ) Net billed receivables 369,955 382,870 Unbilled receivables (Contract Assets): Recoverable costs and estimated earnings not billed 234,286 225,810 Less: Progress payments applied (12,679 ) (14,925 ) Net unbilled receivables 221,607 210,885 Receivables, net $ 591,562 $ 593,755 |
GOODWILL (Table)
GOODWILL (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | The changes in the carrying amount of goodwill for the three months ended March 31, 2019 are as follows: (In thousands) Commercial/ Industrial Defense Power Consolidated December 31, 2018 $ 442,015 $ 448,871 $ 197,146 $ 1,088,032 Acquisitions — 21,147 — 21,147 Adjustments — (208 ) — (208 ) Foreign currency translation adjustment 742 1,567 62 2,371 March 31, 2019 $ 442,757 $ 471,377 $ 197,208 $ 1,111,342 |
INVENTORIES (Table)
INVENTORIES (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | The composition of inventories is as follows: (In thousands) March 31, 2019 December 31, 2018 Raw materials $ 201,889 $ 214,442 Work-in-process 90,406 74,536 Finished goods and component parts 145,923 143,016 Inventoried costs related to U.S. Government and other long-term contracts 74,343 54,195 Gross inventories 512,561 486,189 Less: Inventory reserves (58,046 ) (55,776 ) Progress payments applied (7,493 ) (6,987 ) Inventories, net $ 447,022 $ 423,426 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Table) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 245,236 $ (127,077 ) $ 118,159 $ 238,212 $ (123,156 ) $ 115,056 Customer related intangibles 378,446 (199,130 ) 179,316 358,832 (193,455 ) 165,377 Programs (1) 144,000 (7,200 ) 136,800 144,000 (5,400 ) 138,600 Other intangible assets 41,217 (30,751 ) 10,466 40,340 (29,806 ) 10,534 Total $ 808,899 $ (364,158 ) $ 444,741 $ 781,384 $ (351,817 ) $ 429,567 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31, 2019 Cash used for operating activities: Operating cash flows from operating leases $ (7,764 ) Operating cash flows from finance leases (127 ) The components of lease expense were as follows: Three Months Ended (In thousands) March 31, 2019 Operating lease cost $ 8,212 Finance lease cost: Amortization of right-of-use assets $ 197 Interest on lease liabilities 128 Total finance lease cost $ 325 |
Assets And Liabilities, Lessee | upplemental balance sheet information related to leases was as follows: (In thousands, except lease term and discount rate) As of March 31, 2019 Operating Leases Operating lease right-of-use assets, net $ 138,525 Other current liabilities $ 21,835 Long-term operating lease liability 124,014 Total operating lease liabilities $ 145,849 Finance Leases Property, plant, and equipment $ 15,561 Accumulated depreciation (4,755 ) Property, plant, and equipment, net $ 10,806 Other current liabilities $ 761 Other liabilities 11,646 Total finance lease liabilities $ 12,407 Weighted average remaining lease term Operating leases 8.3 years Finance leases 10.4 years Weighted average discount rate Operating leases 3.85 % Finance leases 4.05 % |
Finance Lease, Liability, Maturity | Maturities of lease liabilities were as follows: As of March 31, 2019 (In thousands) Operating Leases Finance Leases 2019 $ 21,905 $ 984 2020 27,375 1,342 2021 24,422 1,375 2022 18,215 1,410 2023 16,188 1,445 Thereafter 63,870 8,783 Total lease payments $ 171,975 $ 15,339 Less: imputed interest (26,126 ) (2,932 ) Total $ 145,849 $ 12,407 In November 2018, the Corporation entered into a build-to-suit lease of approximately $27 million for the construction of a new facility for DRG in Charleston, South Carolina. The lease has not been reflected in the Corporation’s condensed consolidated financial statements as of March 31, 2019 as the Corporation has not yet obtained the right to control the use of the facility. |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows: As of March 31, 2019 (In thousands) Operating Leases Finance Leases 2019 $ 21,905 $ 984 2020 27,375 1,342 2021 24,422 1,375 2022 18,215 1,410 2023 16,188 1,445 Thereafter 63,870 8,783 Total lease payments $ 171,975 $ 15,339 Less: imputed interest (26,126 ) (2,932 ) Total $ 145,849 $ 12,407 In November 2018, the Corporation entered into a build-to-suit lease of approximately $27 million for the construction of a new facility for DRG in Charleston, South Carolina. The lease has not been reflected in the Corporation’s condensed consolidated financial statements as of March 31, 2019 as the Corporation has not yet obtained the right to control the use of the facility. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Undesignated hedges The location and amount of gains recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three months ended March 31, were as follows: Three Months Ended (In thousands) March 31, Derivatives not designated as hedging instrument 2019 2018 Forward exchange contracts: General and administrative expenses $ 3,589 $ 353 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | March 31, 2019 December 31, 2018 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 3.84% Senior notes due 2021 100,000 100,685 100,000 100,359 3.70% Senior notes due 2023 202,500 203,134 202,500 201,813 3.85% Senior notes due 2025 90,000 90,665 90,000 89,711 4.24% Senior notes due 2026 200,000 204,746 200,000 202,288 4.05% Senior notes due 2028 67,500 67,904 67,500 66,942 4.11% Senior notes due 2028 90,000 90,840 90,000 89,647 Other debt 161 161 243 243 Total debt 750,161 758,135 750,243 751,003 Debt issuance costs, net (684 ) (684 ) (714 ) (714 ) Unamortized interest rate swap proceeds 12,578 12,578 13,027 13,027 Total debt, net $ 762,055 $ 770,029 $ 762,556 $ 763,316 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits, Description [Abstract] | |
Schedule Of Defined Benefit Plans Disclosures | The components of net periodic pension cost for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, (In thousands) 2019 2018 Service cost $ 5,826 $ 6,506 Interest cost 7,372 6,534 Expected return on plan assets (14,884 ) (14,716 ) Amortization of prior service cost (71 ) (63 ) Amortization of unrecognized actuarial loss 2,592 3,906 Net periodic benefit cost $ 835 $ 2,167 |
EARNINGS PER SHARE (Table)
EARNINGS PER SHARE (Table) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, (In thousands) 2019 2018 Basic weighted-average shares outstanding 42,799 44,188 Dilutive effect of stock options and deferred stock compensation 259 490 Diluted weighted-average shares outstanding 43,058 44,678 |
SEGMENT INFORMATION (Table)
SEGMENT INFORMATION (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment | Three Months Ended March 31, (In thousands) 2019 2018 Net sales Commercial/Industrial $ 293,750 $ 296,753 Defense 121,497 120,883 Power 164,147 132,158 Less: Intersegment revenues (1,080 ) (2,272 ) Total consolidated $ 578,314 $ 547,522 Operating income (expense) Commercial/Industrial $ 39,446 $ 39,225 Defense 17,653 19,728 Power 24,219 15,342 Corporate and eliminations (1) (9,273 ) (9,797 ) Total consolidated $ 72,045 $ 64,498 (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 March 31, (In thousands) 2019 2018 Total operating income $ 72,045 $ 64,498 Interest expense 7,272 8,204 Other income, net 5,478 4,683 Earnings before income taxes $ 70,251 $ 60,977 |
Reconciliation Of Assets From Segment To Consolidated | (In thousands) March 31, 2019 December 31, 2018 Identifiable assets Commercial/Industrial $ 1,455,070 $ 1,398,601 Defense 1,036,152 961,298 Power 762,935 720,073 Corporate and Other 74,645 175,413 Total consolidated $ 3,328,802 $ 3,255,385 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Comprehensive Income (Loss) | The cumulative balance of each component of accumulated other comprehensive income (loss), net of tax, is as follows: (In thousands) Foreign currency translation adjustments, net Total pension and postretirement adjustments, net Accumulated other comprehensive income (loss) December 31, 2017 $ (94,708 ) $ (122,132 ) $ (216,840 ) Other comprehensive loss before reclassifications (1) (52,440 ) (31,380 ) (83,820 ) Amounts reclassified from accumulated other comprehensive loss (1) — 12,213 12,213 Net current period other comprehensive loss (52,440 ) (19,167 ) (71,607 ) December 31, 2018 $ (147,148 ) $ (141,299 ) $ (288,447 ) Other comprehensive income (loss) before reclassifications (1) 8,242 (61 ) 8,181 Amounts reclassified from accumulated other comprehensive income (loss) (1) — 1,744 1,744 Net current period other comprehensive income 8,242 1,683 9,925 Cumulative effect from adoption of ASU 2018-02 (2) (1,318 ) (24,939 ) (26,257 ) March 31, 2019 $ (140,224 ) $ (164,555 ) $ (304,779 ) (1) All amounts are after tax. |
Reclassification out of Accumulated Other Comprehensive Income | Details of amounts reclassified from accumulated other comprehensive income (loss) are below: (In thousands) Amount reclassified from Accumulated other comprehensive income (loss) Affected line item in the statement where net earnings is presented Defined benefit pension and other postretirement benefit plans Amortization of prior service costs 235 (1) Amortization of actuarial losses (2,546 ) (1) (2,311 ) Total before tax 567 Income tax Total reclassifications $ (1,744 ) Net of tax (1) These items are included in the computation of net periodic pension cost. See Note 10 , Pension Plans. |
BASIS OF PRESENTATION RECLASSIF
BASIS OF PRESENTATION RECLASSIFICATIONS FOR ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 138,525 | $ 0 | |
Total operating lease liabilities | 145,849 | ||
Retained earnings | 2,266,902 | 2,191,471 | |
Accumulated other comprehensive loss | (304,779) | $ (288,447) | $ (216,840) |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 151,000 | ||
Total operating lease liabilities | 151,000 | ||
Accounting Standards Update 2018-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | 26,257 | ||
Accumulated other comprehensive loss | $ (26,257) |
REVENUE DISAGGREGATION OF REVEN
REVENUE DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 578,314 | $ 547,522 |
Defense [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 230,633 | 205,161 |
Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 347,681 | 342,361 |
Defense Aerospace [Member] | Defense [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 78,787 | 79,153 |
Defense Ground [Member] | Defense [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 20,758 | 22,519 |
Naval [Member] | Defense [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 131,088 | 103,489 |
Commercial Aerospace [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 103,221 | 99,404 |
Power Generation [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 96,480 | 98,319 |
General Industrial [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 147,980 | $ 144,638 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales, Percent | 48.00% | 45.00% |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales, Percent | 52.00% | 55.00% |
REVENUE ADDITIONAL DETAILS (Det
REVENUE ADDITIONAL DETAILS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability, Revenue Recognized | $ 79 |
Revenue, Remaining Performance Obligation, Amount | $ 2,300 |
Revenue, Remaining Performance Obligation, Percentage | 93.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | 12 -36 months |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Purchase price, net of cash acquired | $ 49,037 | $ 0 | |
Goodwill | 1,111,342 | $ 1,088,032 | |
2019 acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 2,300 | ||
Inventory | 322 | ||
Property, plant, and equipment | 648 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 180 | ||
Intangible assets | 26,000 | ||
Right of Use Assets | 1,410 | ||
Current and non-current liabilities | (2,970) | ||
Net tangible and intangible assets | 27,890 | ||
Goodwill | 21,147 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 21,147 | ||
Defense [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 471,377 | $ 448,871 | |
Defense [Member] | Tactical Communications Group (TCG) [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price, net of cash acquired | $ 49,037 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Detail) $ in Thousands | Mar. 15, 2019 | Mar. 31, 2019USD ($)NumberAcquisitions | Mar. 31, 2018USD ($)NumberAcquisitions |
Business Acquisition [Line Items] | |||
Number of business acquired (in number of acquisitions) | NumberAcquisitions | 1 | 0 | |
Aggregate purchase price | $ 49,037 | $ 0 | |
Defense [Member] | Tactical Communications Group (TCG) [Member] | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price | $ 49,037 | ||
Acquisition date | Mar. 15, 2019 |
RECEIVABLES (Detail)
RECEIVABLES (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Billed receivables: | ||
Trade and other receivables | $ 378,350 | $ 390,306 |
Less: Allowance for doubtful accounts | (8,395) | (7,436) |
Net billed receivables | 369,955 | 382,870 |
Unbilled receivables: | ||
Recoverable costs and estimated earnings not billed | 234,286 | 225,810 |
Less: Progress payments applied | (12,679) | (14,925) |
Net unbilled receivables | 221,607 | 210,885 |
Receivables, net | $ 591,562 | $ 593,755 |
GOODWILL (Detail)
GOODWILL (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2018 | $ 1,088,032 |
Goodwill, Acquired During Period | 21,147 |
Goodwill, Period Increase (Decrease) | (208) |
Foreign currency translation adjustment | 2,371 |
March 31, 2019 | 1,111,342 |
Commercial Industrial [Member] | |
Goodwill [Roll Forward] | |
December 31, 2018 | 442,015 |
Foreign currency translation adjustment | 742 |
March 31, 2019 | 442,757 |
Defense [Member] | |
Goodwill [Roll Forward] | |
December 31, 2018 | 448,871 |
Goodwill, Acquired During Period | 21,147 |
Goodwill, Period Increase (Decrease) | (208) |
Foreign currency translation adjustment | 1,567 |
March 31, 2019 | 471,377 |
Power [Member] | |
Goodwill [Roll Forward] | |
December 31, 2018 | 197,146 |
Foreign currency translation adjustment | 62 |
March 31, 2019 | $ 197,208 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw material | $ 201,889 | $ 214,442 |
Work-in-process | 90,406 | 74,536 |
Finished goods and component parts | 145,923 | 143,016 |
Inventoried costs related to U.S. Government and other long-term contracts | 74,343 | 54,195 |
Inventory, gross | 512,561 | 486,189 |
Less: Inventory reserves | (58,046) | (55,776) |
Progress payments applied | (7,493) | (6,987) |
Inventories, net | $ 447,022 | $ 423,426 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Other inventory, capitalized costs | $ 45 | $ 44.4 |
Other inventory, capitalized costs to be liquidated under firm orders | $ 34.3 | $ 18.7 |
OTHER INTANGIBLE ASSETS, NET (D
OTHER INTANGIBLE ASSETS, NET (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 808,899 | $ 781,384 |
Accumulated Amortization | (364,158) | (351,817) |
Net | 444,741 | 429,567 |
Developed Technology Rights [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 245,236 | 238,212 |
Accumulated Amortization | (127,077) | (123,156) |
Net | 118,159 | 115,056 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 378,446 | 358,832 |
Accumulated Amortization | (199,130) | (193,455) |
Net | 179,316 | 165,377 |
Contract and Program Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 144,000 | 144,000 |
Accumulated Amortization | (7,200) | (5,400) |
Net | 136,800 | 138,600 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 41,217 | 40,340 |
Accumulated Amortization | (30,751) | (29,806) |
Net | $ 10,466 | $ 10,534 |
OTHER INTANGIBLE ASSETS, NET (N
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 26 | |
Amortization expense | 11.2 | $ 9.6 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 45.3 | |
Future amortization expense in year two | 43.4 | |
Future amortization expense in year three | 41.5 | |
Future amortization expense in year four | 39 | |
Future amortization expense in year five | 35.3 | |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 18.4 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |
Technology-Based Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 6.8 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 0.8 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leased Assets [Line Items] | |
Lessee, Operating Lease, Not yet Commenced, Amount | $ 27 |
Minimum | |
Operating Leased Assets [Line Items] | |
Term of contract | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Term of contract | 25 years |
LEASES - Schedule of Lease Expe
LEASES - Schedule of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 8,212 |
Amortization of right-of-use assets | 197 |
Interest on lease liabilities | 128 |
Total finance lease cost | $ 325 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ (7,764) |
Operating cash flows from finance leases | $ (127) |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 138,525 | $ 0 |
Current operating lease liability | 21,835 | |
Long-term operating lease liability | 124,014 | $ 0 |
Total operating lease liabilities | 145,849 | |
Property, plant, and equipment | 15,561 | |
Accumulated depreciation | (4,755) | |
Property, plant, and equipment, net | 10,806 | |
Current finance lease liability | 761 | |
Long-term finance lease liability | 11,646 | |
Total finance lease liabilities | $ 12,407 | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 3 months 11 days | |
Finance Lease, Weighted Average Remaining Lease Term | 10 years 5 months 5 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.85% | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.05% |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Lease [Abstract] | |
2019 | $ 21,905 |
2021 | 27,375 |
2021 | 18,215 |
2022 | 24,422 |
2023 | 16,188 |
Thereafter | 63,870 |
Total lease payments | 171,975 |
Less: imputed interest | (26,126) |
Total operating lease liabilities | 145,849 |
Finance Lease, Cost [Abstract] | |
2019 | 984 |
2020 | 1,342 |
2021 | 1,410 |
2022 | 1,375 |
2023 | 1,445 |
Thereafter | 8,783 |
Total lease payments | 15,339 |
Less: imputed interest | (2,932) |
Total finance lease liabilities | $ 12,407 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
General And Administrative Expense [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
General and administrative expenses | $ 3,589 | $ 353 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long-term Debt, Gross | $ 750,161 | $ 750,243 |
Less: Debt Issuance Costs, Net | (684) | (714) |
Unamortized interest rate swap proceeds | 12,578 | 13,027 |
Carrying Value | 762,055 | 762,556 |
Estimated Fair Value | 770,029 | 763,316 |
Long-term Debt, Gross [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | 758,135 | 751,003 |
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 | $ 100,685 | 100,359 |
Interest rate | 3.84% | |
3.70% Senior notes due 2023 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 202,500 | 202,500 |
Estimated Fair Value | $ 203,134 | 201,813 |
Interest rate | 3.70% | |
3.85% Senior notes due 2025 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 90,000 | 90,000 |
Estimated Fair Value | $ 90,665 | 89,711 |
Interest rate | 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 | $ 204,746 | 202,288 |
Interest rate | 4.24% | |
4.05% Senior notes due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 67,500 | 67,500 |
Estimated Fair Value | $ 67,904 | 66,942 |
Interest rate | 4.05% | |
4.11% Senior notes due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 90,000 | 90,000 |
Estimated Fair Value | $ 90,840 | 89,647 |
Interest rate | 4.11% | |
Other debt [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 161 | 243 |
Estimated Fair Value | $ 161 | $ 243 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) - Pension Plans Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5,826 | $ 6,506 |
Interest cost | 7,372 | 6,534 |
Expected return on plan assets | (14,884) | (14,716) |
Amortization of prior service cost | (71) | (63) |
Amortization of unrecognized actuarial loss | 2,592 | 3,906 |
Net postretirement benefit cost (income) | $ 835 | 2,167 |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 50,000 |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Additional) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution, maximum percentage | 7.00% | 6.00% | |
Defined contribution plan, expense relating to the plan | $ 5.4 | $ 4.2 | |
Contributions made by the corporation to the plan | $ 10.9 | ||
Scenario, Forecast [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Estimated future contributions for the current fiscal year | $ 15.1 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share Reconciliation [Abstract] | ||
Basic weighted-average shares outstanding (shares) | 42,799 | 44,188 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 259 | 490 |
Diluted weighted-average shares outstanding (shares) | 43,058 | 44,678 |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Anti-dilutive) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
SEGMENT INFORMATION (Detail)
SEGMENT INFORMATION (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 578,314 | $ 547,522 | ||
Operating income (expense) | 72,045 | 64,498 | ||
Identifiable assets | 3,328,802 | $ 3,255,385 | ||
Commercial Industrial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 293,750 | 296,753 | ||
Operating income (expense) | 39,446 | 39,225 | ||
Identifiable assets | 1,455,070 | 1,398,601 | ||
Defense [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 121,497 | 120,883 | ||
Operating income (expense) | 17,653 | 19,728 | ||
Identifiable assets | 1,036,152 | 961,298 | ||
Power [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 164,147 | 132,158 | ||
Operating income (expense) | 24,219 | 15,342 | ||
Identifiable assets | 762,935 | 720,073 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Identifiable assets | 74,645 | $ 175,413 | ||
Corporate and Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (expense) | [1] | (9,273) | (9,797) | |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ (1,080) | $ (2,272) | ||
[1] | Corporate and eliminations includes pension and other postretirement benefit expense, certain environmental costs related to remediation at legacy sites, foreign currency transactional gains and losses, and certain other expenses. |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting [Abstract] | ||
Total operating income | $ 72,045 | $ 64,498 |
Interest expense | (7,272) | (8,204) |
Other income, net | 5,478 | 4,683 |
Earnings before income taxes | $ 70,251 | $ 60,977 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (288,447) | $ (216,840) | $ (216,840) |
Other comprehensive income (loss) before reclassifications | 8,181 | (83,820) | |
Amounts reclassified from accumulated other comprehensive loss | 1,744 | 12,213 | |
Other comprehensive income, net of tax | 9,925 | 18,033 | (71,607) |
Ending balance | (304,779) | (288,447) | |
Foreign Currency Translation Adjustments, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (147,148) | (94,708) | (94,708) |
Other comprehensive income (loss) before reclassifications | 8,242 | (52,440) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Other comprehensive income, net of tax | 8,242 | (52,440) | |
Ending balance | (140,224) | (147,148) | |
Total Pension and Postretirment Adjustments, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (141,299) | $ (122,132) | (122,132) |
Other comprehensive income (loss) before reclassifications | (61) | (31,380) | |
Amounts reclassified from accumulated other comprehensive loss | 1,744 | 12,213 | |
Other comprehensive income, net of tax | 1,683 | (19,167) | |
Ending balance | (164,555) | $ (141,299) | |
Accounting Standards Update 2018-02 [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending balance | (26,257) | ||
Accounting Standards Update 2018-02 [Member] | Foreign Currency Translation Adjustments, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending balance | (1,318) | ||
Accounting Standards Update 2018-02 [Member] | Total Pension and Postretirment Adjustments, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Ending balance | $ (24,939) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Earnings before income taxes | $ 70,251 | $ 60,977 |
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 | 235 | |
Amortization of actuarial losses | (2,546) | |
Earnings before income taxes | (2,311) | |
Income tax | (567) | |
Net earnings | $ 1,744 |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Detail) - USD ($) | Oct. 10, 2013 | Oct. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||||
Surety Bond Outstanding | $ 45,600,000 | |||
Damages sought | 1,000,000,000 | |||
Malpractice Loss Contingency, Claims Incurred in Period | $ 400,000,000 | |||
Failure to Meet Contractual Obligations [Member] | ||||
Loss Contingencies [Line Items] | ||||
Damages sought | $ 25,000,000 | |||
Standby Letters Of Credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, outstanding | 24,000,000 | $ 21,700,000 | ||
FinancialStandbyLetterOfCreditMember | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit, outstanding | 11,100,000 | 11,700,000 | ||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Range of possible loss, maximum | 0 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Range of possible loss, maximum | 55,500,000 | |||
AP1000 US [Member] | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Range of possible loss, maximum | $ 0 | |||
AP1000 US [Member] | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Range of possible loss, maximum | $ 31,000,000 |