Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
Entity Interactive Data Current | Yes | |
City Area Code | 704 | |
Entity Address, Address Line One | 130 Harbour Place Drive, Suite 300 | |
Entity Address, City or Town | Davidson, | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28036 | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 1-134 | |
Entity Registrant Name | CURTISS WRIGHT CORP | |
Entity Central Index Key | 0000026324 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity common stock shares outstanding | 42,730,098 | |
Trading Symbol | CW | |
Entity Current Reporting Status | Yes | |
Emerging Company | false | |
Small Business | false | |
Entity Tax Identification Number | 13-0612970 | |
Local Phone Number | 869-4600 | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Sales | ||||
Net sales | $ 638,996 | $ 620,298 | $ 1,217,310 | $ 1,167,820 |
Total net sales | 638,996 | 620,298 | 1,217,310 | 1,167,820 |
Cost of sales | ||||
Total cost of sales | 408,952 | 393,798 | 790,393 | 760,129 |
Gross profit | 230,044 | 226,500 | 426,917 | 407,691 |
Research and development expenses | 18,900 | 15,054 | 36,141 | 30,995 |
Selling expenses | 30,693 | 32,665 | 62,170 | 64,185 |
General and administrative expenses | 74,766 | 76,705 | 150,876 | 145,937 |
Operating income | 105,685 | 102,076 | 177,730 | 166,574 |
Interest expense | (7,960) | (9,566) | (15,232) | (17,770) |
Other income, net | 5,871 | 3,971 | 11,349 | 8,654 |
Earnings from continuing operations before income taxes | 103,596 | 96,481 | 173,847 | 157,458 |
Provision for income taxes | (23,524) | (21,693) | (38,182) | (39,027) |
Net earnings | $ 80,072 | $ 74,788 | $ 135,665 | $ 118,431 |
Basic earnings per share | ||||
Basic earnings per share (usd per share) | $ 1.87 | $ 1.69 | $ 3.17 | $ 2.68 |
Diluted earnings per share | ||||
Diluted earnings per share (usd per share) | 1.86 | 1.68 | 3.15 | 2.66 |
Dividends per share | $ 0.17 | $ 0.15 | $ 0.32 | $ 0.30 |
Weighted average shares outstanding: | ||||
Basic (shares) | 42,758 | 44,124 | 42,776 | 44,144 |
Diluted (shares) | 43,024 | 44,553 | 43,038 | 44,604 |
Product [Member] | ||||
Product sales | $ 532,253 | $ 511,676 | $ 1,003,852 | $ 956,363 |
Cost of sales | ||||
Cost of Goods and Services Sold | 342,726 | 324,184 | 654,682 | 623,495 |
Service [Member] | ||||
Net Sales | ||||
Net sales | 106,743 | 108,622 | 213,458 | 211,457 |
Cost of sales | ||||
Cost of Goods and Services Sold | $ 66,226 | $ 69,614 | $ 135,711 | $ 136,634 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 80,072 | $ 74,788 | $ 135,665 | $ 118,431 | |
Other comprehensive income | |||||
Foreign currency translation, net of tax | [1] | 540 | (43,771) | 8,782 | (28,360) |
Pension and postretirement adjustments, net of tax | [2] | 1,749 | 3,062 | 3,432 | 5,684 |
Other comprehensive income (loss), net of tax | 2,289 | (40,709) | 12,214 | (22,676) | |
Comprehensive income | $ 82,361 | $ 34,079 | $ 147,879 | $ 95,755 | |
[1] | The tax benefit included in other comprehensive loss for foreign currency translation adjustments for the three and six months ended June 30, 2018 was $2.0 million and $1.2 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, 2019 was $0.6 million and $1.1 million , respectively. The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and six months ended June 30, 2018 was $0.9 million and $1.8 million , respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ (2) | $ (1.2) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | $ 0.6 | $ 0.9 | $ 1.1 | $ 1.8 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 216,344 | $ 276,066 |
Receivables, net | 636,058 | 593,755 |
Inventories, net | 436,190 | 423,426 |
Other current assets | 48,060 | 50,719 |
Total current assets | 1,336,652 | 1,343,966 |
Property, plant, and equipment, net | 375,582 | 374,660 |
Goodwill | 1,112,781 | 1,088,032 |
Other intangible assets, net | 433,517 | 429,567 |
Operating Lease, Right-of-Use Asset | 135,190 | 0 |
Other assets | 32,918 | 19,160 |
Total assets | 3,426,640 | 3,255,385 |
Current liabilities: | ||
Current portion of long-term debt and short-term debt | 0 | 243 |
Accounts payable | 173,791 | 232,983 |
Accrued expenses | 138,278 | 166,954 |
Income taxes payable | 8,521 | 5,811 |
Deferred revenue | 243,053 | 236,508 |
Other current liabilities | 74,226 | 44,829 |
Total current liabilities | 637,869 | 687,328 |
Long-term debt | 761,476 | 762,313 |
Deferred tax liabilities, net | 49,929 | 47,121 |
Accrued pension and other postretirement benefit costs | 97,334 | 101,227 |
Long-term operating lease liability | 117,789 | 0 |
Long-term portion of environmental reserves | 16,411 | 15,777 |
Other liabilities | 93,536 | 110,838 |
Total liabilities | 1,774,344 | 1,724,604 |
Stockholders' Equity | ||
Common stock, $1 par value,100,000,000 shares authorized as of June 30, 2019 and December 31, 2018; 49,187,378 shares issued as of June 30, 2019 and December 31, 2018; outstanding shares were 42,715,831 as of June 30, 2019 and 42,772,417 as of December 31, 2018 | 49,187 | 49,187 |
Additional paid in capital | 116,835 | 118,234 |
Retained earnings | 2,339,703 | 2,191,471 |
Accumulated other comprehensive loss | (302,490) | (288,447) |
Common treasury stock, at cost (6,471,547 shares as of June 30, 2019 and 6,414,961 shares as of December 31, 2018) | (550,939) | (539,664) |
Total stockholders' equity | 1,652,296 | 1,530,781 |
Total liabilities and stockholders' equity | $ 3,426,640 | $ 3,255,385 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 42,715,831 | 42,772,417 |
Treasury Stock, Shares | 6,471,547 | 6,414,961 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 135,665 | $ 118,431 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 51,600 | 51,257 |
Gain (Loss) on Disposition of Business | 0 | (2,149) |
Gain on fixed asset disposals | (6,080) | (897) |
Deferred income taxes | 1,450 | 5,554 |
Share-based compensation | 6,980 | 7,801 |
Change in operating assets and liabilities, net of businesses acquired and divested: | ||
Accounts receivable, net | (37,621) | (57,522) |
Inventories, net | (11,080) | (43,625) |
Progress payments | (356) | 6,718 |
Accounts payable and accrued expenses | (87,430) | (38,621) |
Deferred revenue | 5,278 | 17,865 |
Income taxes payable | 2,872 | (7,712) |
Net pension and postretirement liabilities | 311 | (48,265) |
Other current and long-term assets and liabilities | (21,203) | 17,850 |
Net cash provided by operating activities | 40,386 | 26,685 |
Cash flows from investing activities: | ||
Proceeds from sales and disposals of long lived assets | 8,920 | 4,328 |
Proceeds from Divestiture of Businesses | (268) | |
Payments to Acquire Intangible Assets | (147) | (1,500) |
Additions to property, plant, and equipment | (33,471) | (19,852) |
Acquisition of businesses, net of cash acquired | (50,075) | (212,737) |
Payments for (Proceeds from) Previous Acquisition | (460) | |
Net cash used for investing activities | (74,773) | (230,489) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 7,318 | 367,762 |
Payment of revolving credit facility | (7,561) | (366,953) |
Repurchases of common stock | (25,065) | (46,115) |
Proceeds from share-based compensation | 5,411 | 6,360 |
Dividends paid | (6,420) | (6,623) |
Proceeds from (Payments for) Other Financing Activities | (395) | (365) |
Net cash used for financing activities | (26,712) | (45,934) |
Effect of exchange-rate changes on cash | 1,377 | (6,484) |
Net decrease in cash and cash equivalents | (59,722) | (256,222) |
Cash and cash equivalents at beginning of period | 276,066 | 475,120 |
Cash and cash equivalents at end of period | 216,344 | 218,898 |
Supplemental disclosure of non-cash activities: | ||
Capital expenditures incurred but not yet paid | $ 85 | $ 425 |
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 Loss Member | Treasury Stock Member |
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 | 118,431 | |||||
Other Comprehensive Income (Loss), Net of Tax | (22,676) | (22,676) | ||||
Dividends paid/declared | (13,231) | |||||
Restricted stock | (6,923) | 6,923 | ||||
Stock options exercised | (1,535) | 7,896 | ||||
Other | (725) | 725 | ||||
Share-based compensation | 7,599 | 201 | ||||
Repurchases of common stock | (46,115) | |||||
Ending Balance at Jun. 30, 2018 | 49,187 | 119,025 | 2,047,250 | (239,516) | (399,850) | |
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 | 118,431 | |||||
Other Comprehensive Income (Loss), Net of Tax | (71,607) | |||||
Ending Balance at Dec. 31, 2018 | 1,530,781 | 49,187 | 118,234 | 2,191,471 | (288,447) | (539,664) |
Beginning Balance at Mar. 31, 2018 | 49,187 | 116,221 | 1,979,051 | (198,807) | (366,677) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 74,788 | 74,788 | ||||
Other Comprehensive Income (Loss), Net of Tax | (40,709) | (40,709) | ||||
Dividends paid/declared | (6,589) | |||||
Restricted stock | (95) | 95 | ||||
Stock options exercised | (298) | 507 | ||||
Share-based compensation | 3,197 | 12 | ||||
Repurchases of common stock | (33,787) | |||||
Ending Balance at Jun. 30, 2018 | 49,187 | 119,025 | 2,047,250 | (239,516) | (399,850) | |
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member] | (2,274) | |||||
Accumulated other comprehensive loss | (288,447) | |||||
Beginning Balance at Dec. 31, 2018 | 1,530,781 | 49,187 | 118,234 | 2,191,471 | (288,447) | (539,664) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 135,665 | 135,665 | ||||
Other Comprehensive Income (Loss), Net of Tax | 12,214 | 12,214 | ||||
Dividends paid/declared | (13,690) | |||||
Restricted stock | (5,491) | 5,491 | ||||
Stock options exercised | (1,822) | 7,233 | ||||
Other | (661) | 661 | ||||
Share-based compensation | 6,575 | 405 | ||||
Repurchases of common stock | (25,065) | |||||
Ending Balance at Jun. 30, 2019 | 1,652,296 | 49,187 | 116,835 | 2,339,703 | (302,490) | (550,939) |
Beginning Balance at Mar. 31, 2019 | 49,187 | 114,696 | 2,266,902 | (304,779) | (540,426) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 80,072 | 80,072 | ||||
Other Comprehensive Income (Loss), Net of Tax | 2,289 | 2,289 | ||||
Dividends paid/declared | (7,271) | |||||
Stock options exercised | (1,303) | 2,038 | ||||
Share-based compensation | 3,442 | 43 | ||||
Repurchases of common stock | (12,594) | |||||
Ending Balance at Jun. 30, 2019 | 1,652,296 | $ 49,187 | $ 116,835 | $ 2,339,703 | $ (302,490) | $ (550,939) |
Accumulated other comprehensive loss | $ (302,490) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
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 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 using the over-time revenue recognition accounting method, 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, fair value estimates around assets and assumed liabilities from acquisitions, 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, 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 |
REVENUE (Notes)
REVENUE (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [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 for both the three months and six months ended June 30, 2019 accounted for approximately 48% of total net sales. Revenue recognized on an over-time basis for both the three months and six months ended June 30, 2018 accounted for approximately 45% of total net sales. 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 for both the three months and six months ended June 30, 2019 accounted for approximately 52% of total net sales. Revenue recognized at a point-in-time for both the three months and six months ended June 30, 2018 accounted for approximately 55% of total net sales. 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 $2.2 billion as of June 30, 2019 , of which the Corporation expects to recognize approximately 90% 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: Total Net Sales by End Market and Customer Type Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Defense Aerospace $ 104,426 $ 99,654 $ 183,213 $ 178,808 Ground 26,394 20,777 47,151 43,296 Naval 149,853 132,347 280,941 235,835 Total Defense Customers $ 280,673 $ 252,778 $ 511,305 $ 457,939 Commercial Aerospace $ 108,000 $ 104,617 $ 211,222 $ 204,021 Power Generation 93,171 102,316 189,652 200,635 General Industrial 157,152 160,587 305,131 305,225 Total Commercial Customers $ 358,323 $ 367,520 $ 706,005 $ 709,881 Total $ 638,996 $ 620,298 $ 1,217,310 $ 1,167,820 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 six months ended June 30, 2019 and 2018 included in the contract liabilities balance at the beginning of the year was approximately $133 million and $113 million , respectively. Contract assets and contract liabilities are reported in the "Receivables, net" and "Deferred revenue" lines, respectively, within the Condensed Consolidated Balance Sheet. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 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 acquisition purchase price reflects 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, 2019 , the Corporation acquired one business for an aggregate purchase price of $50 million , which is described in more detail below. During the six months ended June 30, 2018 , the Corporation acquired one business for an aggregate purchase price of $213 million , which is described in more detail below. The Condensed Consolidated Statement of Earnings for the six months ended June 30, 2019 includes $4 million of total net sales and $1 million of net losses from the Corporation's 2019 acquisition. The Condensed Consolidated Statement of Earnings for the six months ended June 30, 2018 includes $22 million of total net sales and $3 million of net losses from the Corporation's 2018 acquisition. 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, 2019 and 2018 . (In thousands) 2019 2018 Accounts receivable $ 2,300 $ 8,143 Inventory 322 49,508 Property, plant, and equipment 648 3,203 Other current and non-current assets 479 47 Intangible assets 26,000 141,100 Operating lease right-of-use assets, net 1,393 — Current and non-current liabilities (3,252 ) (6,734 ) Net tangible and intangible assets 27,890 195,267 Purchase price, net of cash acquired 50,075 212,737 Goodwill $ 22,185 $ 17,470 Goodwill deductible for tax purposes $ 22,185 $ 17,470 2019 Acquisition Tactical Communications Group (TCG) On March 15, 2019 , the Corporation acquired 100% of the membership interest of TCG for $50.1 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. The acquisition is subject to post-closing adjustments with the purchase price allocation not yet complete. 2018 Acquisition Dresser-Rand Government Business (DRG) On April 2, 2018 , the Corporation acquired certain assets and assumed certain liabilities of DRG for $212.7 million |
RECEIVABLES
RECEIVABLES | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Billed receivables: Trade and other receivables $ 415,774 $ 390,306 Less: Allowance for doubtful accounts (9,003 ) (7,436 ) Net billed receivables 406,771 382,870 Unbilled receivables (Contract Assets): Recoverable costs and estimated earnings not billed 243,403 225,810 Less: Progress payments applied (14,116 ) (14,925 ) Net unbilled receivables 229,287 210,885 Receivables, net $ 636,058 $ 593,755 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Raw materials $ 191,678 $ 214,442 Work-in-process 91,848 74,536 Finished goods 143,360 143,016 Inventoried costs related to U.S. Government and other long-term contracts 70,684 54,195 Gross inventories 497,570 486,189 Less: Inventory reserves (53,808 ) (55,776 ) Progress payments applied (7,572 ) (6,987 ) Inventories, net $ 436,190 $ 423,426 Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $43.6 million and $44.4 million as of June 30, 2019 and December 31, 2018 , respectively. These capitalized costs will be liquidated as units are produced. As of June 30, 2019 and December 31, 2018 , $32.5 million and $18.7 million , respectively, are scheduled to be liquidated under existing firm orders. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the six months ended June 30, 2019 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2018 $ 442,015 $ 448,871 $ 197,146 $ 1,088,032 Acquisitions — 22,185 — 22,185 Adjustments — (208 ) — (208 ) Foreign currency translation adjustment 155 2,489 128 2,772 June 30, 2019 $ 442,170 $ 473,337 $ 197,274 $ 1,112,781 |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 245,480 $ (133,102 ) $ 112,378 $ 238,212 $ (123,156 ) $ 115,056 Customer related intangibles 378,846 (204,767 ) 174,079 358,832 (193,455 ) 165,377 Programs (1) 144,000 (9,000 ) 135,000 144,000 (5,400 ) 138,600 Other intangible assets 41,123 (29,063 ) 12,060 40,340 (29,806 ) 10,534 Total $ 809,449 $ (375,932 ) $ 433,517 $ 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 six months ended June 30, 2019 , the Corporation acquired intangible assets of $ 26.0 million . The Corporation acquired Customer-related intangibles of $ 18.9 million , Technology of $ 6.3 million , and Other intangible assets of $ 0.8 million , which have a weighted average amortization period of 14.6 years, 15.0 years, and 8.0 years, respectively. Total intangible amortization expense for the six months ended June 30, 2019 was $22.6 million as compared to $21.1 million in the comparable prior year period. The estimated amortization expense for the five years ending December 31, 2019 through 2023 is $45.2 million , $43.4 million , $41.5 million , $39.0 million , and $35.3 million , respectively. |
LEASES LEASES
LEASES LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | 8 . 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 Six Months Ended (In thousands) June 30, 2019 June 30, 2019 Operating lease cost $ 7,146 $ 15,358 Finance lease cost: Amortization of right-of-use assets $ 199 $ 396 Interest on lease liabilities 125 253 Total finance lease cost $ 324 $ 649 Supplemental cash flow information related to leases was as follows: Six Months Ended (In thousands) June 30, 2019 Cash used for operating activities: Operating cash flows from operating leases $ (15,207 ) Operating cash flows from finance leases (253 ) Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 1,711 Supplemental balance sheet information related to leases was as follows: (In thousands, except lease term and discount rate) As of June 30, 2019 Operating Leases Operating lease right-of-use assets, net $ 135,190 Other current liabilities $ 23,328 Long-term operating lease liability 117,789 Total operating lease liabilities $ 141,117 Finance Leases Property, plant, and equipment $ 15,561 Accumulated depreciation (5,014 ) Property, plant, and equipment, net $ 10,547 Other current liabilities $ 777 Other liabilities 11,431 Total finance lease liabilities $ 12,208 Weighted average remaining lease term Operating leases 8.1 years Finance leases 10.2 years Weighted average discount rate Operating leases 3.85 % Finance leases 4.05 % Maturities of lease liabilities were as follows: As of June 30, 2019 (In thousands) Operating Leases Finance Leases 2019 $ 14,448 $ 660 2020 27,560 1,342 2021 24,553 1,375 2022 18,358 1,410 2023 16,527 1,445 Thereafter 64,403 8,892 Total lease payments $ 165,849 $ 15,124 Less: imputed interest (24,732 ) (2,916 ) Total $ 141,117 $ 12,208 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 June 30, 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 Condensed Consolidated Balance Sheets As of June 30, 2019 and December 31, 2018 , the fair values of the asset and liability derivative instruments were immaterial. Effects on Condensed Consolidated Statements of Earnings Undesignated hedges The location and amount of gains or (losses) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Derivatives not designated as hedging instrument 2019 2018 2019 2018 Forward exchange contracts: General and administrative expenses $ (2,158 ) $ (2,871 ) $ 1,431 $ (2,518 ) 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 June 30, 2019 . Accordingly, all of the Corporation’s debt is valued as a Level 2 financial instrument. 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, 2019 December 31, 2018 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 3.84% Senior notes due 2021 100,000 101,995 100,000 100,359 3.70% Senior notes due 2023 202,500 207,217 202,500 201,813 3.85% Senior notes due 2025 90,000 93,385 90,000 89,711 4.24% Senior notes due 2026 200,000 212,152 200,000 202,288 4.05% Senior notes due 2028 67,500 70,686 67,500 66,942 4.11% Senior notes due 2028 90,000 94,742 90,000 89,647 Other debt — — 243 243 Total debt 750,000 780,177 750,243 751,003 Debt issuance costs, net (654 ) (654 ) (714 ) (714 ) Unamortized interest rate swap proceeds 12,130 12,130 13,027 13,027 Total debt, net $ 761,476 $ 791,653 $ 762,556 $ 763,316 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits, Description [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION PLANS Defined Benefit Pension Plans The following table is a consolidated disclosure of all domestic and foreign defined pension plans as described in the Corporation’s 2018 Annual Report on Form 10-K. The components of net periodic pension cost for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Service cost $ 5,825 $ 6,495 $ 11,651 $ 13,001 Interest cost 7,371 6,521 14,743 13,055 Expected return on plan assets (14,882 ) (14,695 ) (29,766 ) (29,411 ) Amortization of prior service cost (70 ) (62 ) (141 ) (125 ) Amortization of unrecognized actuarial loss 2,592 3,903 5,184 7,809 Net periodic pension cost $ 836 $ 2,162 $ 1,671 $ 4,329 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 six months ended June 30, 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 and six months ended June 30, 2019 , the expense relating to the plan was $4.2 million and $9.6 million , respectively. During the three and six months ended June 30, 2018 , the expense relating to the plan was $3.2 million and $7.4 million , respectively. The Corporation made $13.1 million in contributions to the plan during the six months ended June 30, 2019 , and expects to make total contributions of $15.1 million in 2019 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Diluted earnings per share was 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 June 30, June 30, (In thousands) 2019 2018 2019 2018 Basic weighted-average shares outstanding 42,758 44,124 42,776 44,144 Dilutive effect of stock options and deferred stock compensation 266 429 262 460 Diluted weighted-average shares outstanding 43,024 44,553 43,038 44,604 For the three and six months ended June 30, 2019 and 2018 , there were no |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, June 30, (In thousands) 2019 2018 2019 2018 Net sales Commercial/Industrial $ 318,572 $ 312,605 $ 612,322 $ 609,358 Defense 145,571 148,085 267,068 268,968 Power 176,582 162,049 340,729 294,207 Less: Intersegment revenues (1,729 ) (2,441 ) (2,809 ) (4,713 ) Total consolidated $ 638,996 $ 620,298 $ 1,217,310 $ 1,167,820 Operating income (expense) Commercial/Industrial $ 56,236 $ 51,736 $ 95,682 $ 90,961 Defense 29,661 38,641 47,314 58,369 Power 30,069 19,201 54,288 34,543 Corporate and eliminations (1) (10,281 ) (7,502 ) (19,554 ) (17,299 ) Total consolidated $ 105,685 $ 102,076 $ 177,730 $ 166,574 (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 June 30, June 30, (In thousands) 2019 2018 2019 2018 Total operating income $ 105,685 $ 102,076 $ 177,730 $ 166,574 Interest expense 7,960 9,566 15,232 17,770 Other income, net 5,871 3,971 11,349 8,654 Earnings before income taxes $ 103,596 $ 96,481 $ 173,847 $ 157,458 (In thousands) June 30, 2019 December 31, 2018 Identifiable assets Commercial/Industrial $ 1,467,700 $ 1,398,601 Defense 1,068,806 961,298 Power 771,379 720,073 Corporate and Other 118,755 175,413 Total consolidated $ 3,426,640 $ 3,255,385 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2017 $ (94,708 ) $ (122,132 ) $ (216,840 ) Other comprehensive income (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) 8,782 (55 ) 8,727 Amounts reclassified from accumulated other comprehensive income (loss) (1) — 3,487 3,487 Net current period other comprehensive income 8,782 3,432 12,214 Cumulative effect from adoption of ASU 2018-02 (2) (1,318 ) (24,939 ) (26,257 ) June 30, 2019 $ (139,684 ) $ (162,806 ) $ (302,490 ) (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 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 470 (1) Amortization of actuarial losses (5,092 ) (1) (4,622 ) Total before tax 1,135 Income tax Total reclassifications $ (3,487 ) 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 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. All parties have agreed in principle to participate in a formal mediation in late 2019 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. In addition to the CNRL litigation, the Corporation is party to a number of other legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material effect on the Corporation’s results of operations or financial position. Letters of Credit and Other Financial Arrangements The Corporation enters into standby letters of credit agreements and guarantees with financial institutions and customers primarily relating to guarantees of repayment, future performance on certain contracts to provide products and services, and to secure advance payments from certain international customers. As of June 30, 2019 and December 31, 2018 , there were $29.8 million and $21.7 million of stand-by letters of credit outstanding, respectively, and $10.9 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 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, 2019 , the Corporation has not met certain contractual delivery dates under its AP 1000 China and U.S. 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, 2019 . As of June 30, 2019 , the range of possible loss is $0 to $31 million for the AP1000 U.S. contract, for a total range of possible loss of $0 to $55.5 million . |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 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 using the over-time revenue recognition accounting method, 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, fair value estimates around assets and assumed liabilities from acquisitions, 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, 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 |
BASIS OF PRESENTATION Tables (T
BASIS OF PRESENTATION Tables (Tables) | 6 Months Ended |
Jun. 30, 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 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (In thousands) 2019 2018 Accounts receivable $ 2,300 $ 8,143 Inventory 322 49,508 Property, plant, and equipment 648 3,203 Other current and non-current assets 479 47 Intangible assets 26,000 141,100 Operating lease right-of-use assets, net 1,393 — Current and non-current liabilities (3,252 ) (6,734 ) Net tangible and intangible assets 27,890 195,267 Purchase price, net of cash acquired 50,075 212,737 Goodwill $ 22,185 $ 17,470 Goodwill deductible for tax purposes $ 22,185 $ 17,470 |
RECEIVABLES (Table)
RECEIVABLES (Table) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule Of Accounts Notes Loans And Financing Receivable | The composition of receivables is as follows: (In thousands) June 30, 2019 December 31, 2018 Billed receivables: Trade and other receivables $ 415,774 $ 390,306 Less: Allowance for doubtful accounts (9,003 ) (7,436 ) Net billed receivables 406,771 382,870 Unbilled receivables (Contract Assets): Recoverable costs and estimated earnings not billed 243,403 225,810 Less: Progress payments applied (14,116 ) (14,925 ) Net unbilled receivables 229,287 210,885 Receivables, net $ 636,058 $ 593,755 |
INVENTORIES (Table)
INVENTORIES (Table) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory, Net [Abstract] | |
Schedule Of Inventory | (In thousands) June 30, 2019 December 31, 2018 Raw materials $ 191,678 $ 214,442 Work-in-process 91,848 74,536 Finished goods 143,360 143,016 Inventoried costs related to U.S. Government and other long-term contracts 70,684 54,195 Gross inventories 497,570 486,189 Less: Inventory reserves (53,808 ) (55,776 ) Progress payments applied (7,572 ) (6,987 ) Inventories, net $ 436,190 $ 423,426 |
GOODWILL (Table)
GOODWILL (Table) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill [Abstract] | |
Schedule Of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2019 are as follows: (In thousands) Commercial/Industrial Defense Power Consolidated December 31, 2018 $ 442,015 $ 448,871 $ 197,146 $ 1,088,032 Acquisitions — 22,185 — 22,185 Adjustments — (208 ) — (208 ) Foreign currency translation adjustment 155 2,489 128 2,772 June 30, 2019 $ 442,170 $ 473,337 $ 197,274 $ 1,112,781 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Table) | 6 Months Ended |
Jun. 30, 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: June 30, 2019 December 31, 2018 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Technology $ 245,480 $ (133,102 ) $ 112,378 $ 238,212 $ (123,156 ) $ 115,056 Customer related intangibles 378,846 (204,767 ) 174,079 358,832 (193,455 ) 165,377 Programs (1) 144,000 (9,000 ) 135,000 144,000 (5,400 ) 138,600 Other intangible assets 41,123 (29,063 ) 12,060 40,340 (29,806 ) 10,534 Total $ 809,449 $ (375,932 ) $ 433,517 $ 781,384 $ (351,817 ) $ 429,567 |
LEASES LEASES (Tables)
LEASES LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense were as follows: Three Months Ended Six Months Ended (In thousands) June 30, 2019 June 30, 2019 Operating lease cost $ 7,146 $ 15,358 Finance lease cost: Amortization of right-of-use assets $ 199 $ 396 Interest on lease liabilities 125 253 Total finance lease cost $ 324 $ 649 Supplemental cash flow information related to leases was as follows: Six Months Ended (In thousands) June 30, 2019 Cash used for operating activities: Operating cash flows from operating leases $ (15,207 ) Operating cash flows from finance leases (253 ) Non-cash activity: Right-of-use assets obtained in exchange for operating lease obligations $ 1,711 |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows: (In thousands, except lease term and discount rate) As of June 30, 2019 Operating Leases Operating lease right-of-use assets, net $ 135,190 Other current liabilities $ 23,328 Long-term operating lease liability 117,789 Total operating lease liabilities $ 141,117 Finance Leases Property, plant, and equipment $ 15,561 Accumulated depreciation (5,014 ) Property, plant, and equipment, net $ 10,547 Other current liabilities $ 777 Other liabilities 11,431 Total finance lease liabilities $ 12,208 Weighted average remaining lease term Operating leases 8.1 years Finance leases 10.2 years Weighted average discount rate Operating leases 3.85 % Finance leases 4.05 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows: As of June 30, 2019 (In thousands) Operating Leases Finance Leases 2019 $ 14,448 $ 660 2020 27,560 1,342 2021 24,553 1,375 2022 18,358 1,410 2023 16,527 1,445 Thereafter 64,403 8,892 Total lease payments $ 165,849 $ 15,124 Less: imputed interest (24,732 ) (2,916 ) Total $ 141,117 $ 12,208 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities were as follows: As of June 30, 2019 (In thousands) Operating Leases Finance Leases 2019 $ 14,448 $ 660 2020 27,560 1,342 2021 24,553 1,375 2022 18,358 1,410 2023 16,527 1,445 Thereafter 64,403 8,892 Total lease payments $ 165,849 $ 15,124 Less: imputed interest (24,732 ) (2,916 ) Total $ 141,117 $ 12,208 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Table) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Undesignated hedges The location and amount of gains or (losses) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows: Three Months Ended Six Months Ended (In thousands) June 30, June 30, Derivatives not designated as hedging instrument 2019 2018 2019 2018 Forward exchange contracts: General and administrative expenses $ (2,158 ) $ (2,871 ) $ 1,431 $ (2,518 ) |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | June 30, 2019 December 31, 2018 (In thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value 3.84% Senior notes due 2021 100,000 101,995 100,000 100,359 3.70% Senior notes due 2023 202,500 207,217 202,500 201,813 3.85% Senior notes due 2025 90,000 93,385 90,000 89,711 4.24% Senior notes due 2026 200,000 212,152 200,000 202,288 4.05% Senior notes due 2028 67,500 70,686 67,500 66,942 4.11% Senior notes due 2028 90,000 94,742 90,000 89,647 Other debt — — 243 243 Total debt 750,000 780,177 750,243 751,003 Debt issuance costs, net (654 ) (654 ) (714 ) (714 ) Unamortized interest rate swap proceeds 12,130 12,130 13,027 13,027 Total debt, net $ 761,476 $ 791,653 $ 762,556 $ 763,316 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Table) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 were as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Service cost $ 5,825 $ 6,495 $ 11,651 $ 13,001 Interest cost 7,371 6,521 14,743 13,055 Expected return on plan assets (14,882 ) (14,695 ) (29,766 ) (29,411 ) Amortization of prior service cost (70 ) (62 ) (141 ) (125 ) Amortization of unrecognized actuarial loss 2,592 3,903 5,184 7,809 Net periodic pension cost $ 836 $ 2,162 $ 1,671 $ 4,329 |
EARNINGS PER SHARE (Table)
EARNINGS PER SHARE (Table) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Basic weighted-average shares outstanding 42,758 44,124 42,776 44,144 Dilutive effect of stock options and deferred stock compensation 266 429 262 460 Diluted weighted-average shares outstanding 43,024 44,553 43,038 44,604 |
SEGMENT INFORMATION (Table)
SEGMENT INFORMATION (Table) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment | Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2019 2018 2019 2018 Net sales Commercial/Industrial $ 318,572 $ 312,605 $ 612,322 $ 609,358 Defense 145,571 148,085 267,068 268,968 Power 176,582 162,049 340,729 294,207 Less: Intersegment revenues (1,729 ) (2,441 ) (2,809 ) (4,713 ) Total consolidated $ 638,996 $ 620,298 $ 1,217,310 $ 1,167,820 Operating income (expense) Commercial/Industrial $ 56,236 $ 51,736 $ 95,682 $ 90,961 Defense 29,661 38,641 47,314 58,369 Power 30,069 19,201 54,288 34,543 Corporate and eliminations (1) (10,281 ) (7,502 ) (19,554 ) (17,299 ) Total consolidated $ 105,685 $ 102,076 $ 177,730 $ 166,574 (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 June 30, June 30, (In thousands) 2019 2018 2019 2018 Total operating income $ 105,685 $ 102,076 $ 177,730 $ 166,574 Interest expense 7,960 9,566 15,232 17,770 Other income, net 5,871 3,971 11,349 8,654 Earnings before income taxes $ 103,596 $ 96,481 $ 173,847 $ 157,458 |
Reconciliation Of Assets From Segment To Consolidated | (In thousands) June 30, 2019 December 31, 2018 Identifiable assets Commercial/Industrial $ 1,467,700 $ 1,398,601 Defense 1,068,806 961,298 Power 771,379 720,073 Corporate and Other 118,755 175,413 Total consolidated $ 3,426,640 $ 3,255,385 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Table) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2017 $ (94,708 ) $ (122,132 ) $ (216,840 ) Other comprehensive income (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) 8,782 (55 ) 8,727 Amounts reclassified from accumulated other comprehensive income (loss) (1) — 3,487 3,487 Net current period other comprehensive income 8,782 3,432 12,214 Cumulative effect from adoption of ASU 2018-02 (2) (1,318 ) (24,939 ) (26,257 ) June 30, 2019 $ (139,684 ) $ (162,806 ) $ (302,490 ) |
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 470 (1) Amortization of actuarial losses (5,092 ) (1) (4,622 ) Total before tax 1,135 Income tax Total reclassifications $ (3,487 ) Net of tax (1) These items are included in the computation of net periodic pension cost. See Note 10 , Pension Plans . |
RECLASSIFICATIONS FOR ACCOUNTIN
RECLASSIFICATIONS FOR ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 135,190 | $ 0 | |
Operating Lease, Liability | 141,117 | ||
Retained earnings | 2,339,703 | 2,191,471 | |
Accumulated other comprehensive loss | (302,490) | $ (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 Asset | 151,000 | ||
Operating Lease, Liability | 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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 638,996 | $ 620,298 | $ 1,217,310 | $ 1,167,820 |
Defense [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 280,673 | 252,778 | 511,305 | 457,939 |
Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 358,323 | 367,520 | 706,005 | 709,881 |
Defense Aerospace [Member] | Defense [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 104,426 | 99,654 | 183,213 | 178,808 |
Defense Ground [Member] | Defense [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26,394 | 20,777 | 47,151 | 43,296 |
Naval [Member] | Defense [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 149,853 | 132,347 | 280,941 | 235,835 |
Commercial Aerospace [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 108,000 | 104,617 | 211,222 | 204,021 |
Power Generation [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 93,171 | 102,316 | 189,652 | 200,635 |
General Industrial [Member] | Commercial [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 157,152 | $ 160,587 | $ 305,131 | $ 305,225 |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales, Net, Percent | 48.00% | 45.00% | 48.00% | 45.00% |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales, Net, Percent | 52.00% | 55.00% | 52.00% | 55.00% |
REVENUE ADDITIONAL DETAILS (Det
REVENUE ADDITIONAL DETAILS (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Liability, Revenue Recognized | $ 133 | $ 113 |
Revenue, Remaining Performance Obligation, Amount | $ 2,200 | |
Revenue, Remaining Performance Obligation, Percentage | 90.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | 12 -36 months |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 50,075 | $ 212,737 | |
Goodwill | 1,112,781 | $ 1,088,032 | |
2018 acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Accounts Receivable | 8,143 | ||
Inventory | 49,508 | ||
Property, Plant, and Equipment | 3,203 | ||
Other Current and Non-current Assets | 47 | ||
Intangible Assets, Other than Goodwill | 141,100 | ||
Current and Non-current Liabilities | (6,734) | ||
Net Tangible and Intangible Assets | 195,267 | ||
Payments to Acquire Businesses, Gross | 212,737 | ||
Goodwill | 17,470 | ||
Goodwill, Expected Tax Deductible Amount | $ 17,470 | ||
2019 acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Accounts Receivable | 2,300 | ||
Inventory | 322 | ||
Property, Plant, and Equipment | 648 | ||
Other Current and Non-current Assets | 479 | ||
Intangible Assets, Other than Goodwill | 26,000 | ||
Right of Use Assets | 1,393 | ||
Current and Non-current Liabilities | (3,252) | ||
Net Tangible and Intangible Assets | 27,890 | ||
Purchase Price, Net of Cash Acquired | 50,075 | ||
Goodwill | 22,185 | ||
Goodwill, Expected Tax Deductible Amount | $ 22,185 |
ACQUISITIONS Narrative (Details
ACQUISITIONS Narrative (Details) $ in Thousands | Mar. 15, 2019 | Apr. 02, 2018 | Jun. 30, 2019USD ($)NumberAcquisitions | Jun. 30, 2018USD ($)NumberAcquisitions |
Business Acquisition [Line Items] | ||||
Number of Businesses Acquired | NumberAcquisitions | 1 | 1 | ||
Payments to Acquire Businesses, Gross | $ 50,075 | $ 212,737 | ||
Revenue of Acquiree since Acquisition Date, Actual | 4,000 | 22,000 | ||
Earnings or Loss of Acquiree since Acquisition Date, Actual | (1,000) | (3,000) | ||
2019 acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase Price, Net of Cash Acquired | 50,075 | |||
2018 acquisitions [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | 212,737 | |||
Power [Member] | Dresser-Rand Government Business (DRG) [Member] | ||||
Business Acquisition [Line Items] | ||||
Effective Date of Acquisition | Apr. 2, 2018 | |||
Payments to Acquire Businesses, Gross | $ 212,700 | |||
Defense [Member] | Tactical Communications Group (TCG) [Member] | ||||
Business Acquisition [Line Items] | ||||
Effective Date of Acquisition | Mar. 15, 2019 | |||
Purchase Price, Net of Cash Acquired | $ 50,100 |
RECEIVABLES (Detail)
RECEIVABLES (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Billed receivables: | ||
Trade and other receivables | $ 415,774 | $ 390,306 |
Less: Allowance for doubtful accounts | (9,003) | (7,436) |
Net billed receivables | 406,771 | 382,870 |
Unbilled receivables: | ||
Recoverable costs and estimated earnings not billed | 243,403 | 225,810 |
Less: Progress payments applied | (14,116) | (14,925) |
Net unbilled receivables | 229,287 | 210,885 |
Receivables, net | $ 636,058 | $ 593,755 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw material | $ 191,678 | $ 214,442 |
Work-in-process | 91,848 | 74,536 |
Finished goods and component parts | 143,360 | 143,016 |
Inventoried costs related to U.S. Government and other long-term contracts | 70,684 | 54,195 |
Gross inventories | 497,570 | 486,189 |
Less: Inventory reserves | 53,808 | 55,776 |
Progress payments applied | (7,572) | (6,987) |
Inventories, net | $ 436,190 | $ 423,426 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Other inventory, capitalized costs | $ 43.6 | $ 44.4 |
Other inventory, capitalized costs to be liquidated under firm orders | $ 32.5 | $ 18.7 |
GOODWILL (Detail)
GOODWILL (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2018 | $ 1,088,032 |
Goodwill, Acquired During Period | 22,185 |
Goodwill, Period Increase (Decrease) | 208 |
Foreign currency translation adjustment | 2,772 |
June 30, 2019 | 1,112,781 |
Commercial Industrial [Member] | |
Goodwill [Roll Forward] | |
December 31, 2018 | 442,015 |
Foreign currency translation adjustment | 155 |
June 30, 2019 | 442,170 |
Defense [Member] | |
Goodwill [Roll Forward] | |
December 31, 2018 | 448,871 |
Goodwill, Acquired During Period | 22,185 |
Goodwill, Period Increase (Decrease) | 208 |
Foreign currency translation adjustment | 2,489 |
June 30, 2019 | 473,337 |
Power [Member] | |
Goodwill [Roll Forward] | |
December 31, 2018 | 197,146 |
Foreign currency translation adjustment | 128 |
June 30, 2019 | $ 197,274 |
OTHER INTANGIBLE ASSETS, NET (D
OTHER INTANGIBLE ASSETS, NET (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 809,449 | $ 781,384 |
Accumulated Amortization | (375,932) | (351,817) |
Net | 433,517 | 429,567 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 245,480 | 238,212 |
Accumulated Amortization | (133,102) | (123,156) |
Net | 112,378 | 115,056 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 378,846 | 358,832 |
Accumulated Amortization | (204,767) | (193,455) |
Net | 174,079 | 165,377 |
Contract and Program Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 144,000 | 144,000 |
Accumulated Amortization | (9,000) | (5,400) |
Net | 135,000 | 138,600 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 41,123 | 40,340 |
Accumulated Amortization | (29,063) | (29,806) |
Net | $ 12,060 | $ 10,534 |
OTHER INTANGIBLE ASSETS, NET (N
OTHER INTANGIBLE ASSETS, NET (Narrative) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 26 | |
Amortization expense | 22.6 | $ 21.1 |
Future amortization expense in remainder of fiscal year | 45.2 | |
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 | |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived Intangible Assets Acquired | $ 6.3 | |
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 | $ 18.9 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years 7 months 6 days | |
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 LEASES - Narrative (Deta
LEASES LEASES - Narrative (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leased Assets [Line Items] | |
Operating lease not yet commenced | $ 27 |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Term of Contract | 1 year |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Term of Contract | 25 years |
LEASES LEASES - Schedule of Lea
LEASES LEASES - Schedule of Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 7,146 | $ 15,358 |
Amortization of finance right-of-use assets | 199 | 396 |
Interest on finance lease liabilities | 125 | 253 |
Total finance lease cost | $ 324 | $ 649 |
LEASES LEASES - Supplemental Ca
LEASES LEASES - Supplemental Cash Flows (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ (15,207) |
Operating cash flows from finance leases | (253) |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1,711 |
LEASES LEASES - Supplemental Ba
LEASES LEASES - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 135,190 | $ 0 |
Current operating lease liability | 23,328 | |
Long-term operating lease liability | 117,789 | $ 0 |
Total operating lease liabilities | 141,117 | |
Property, plant and equipment | 15,561 | |
Accumulated depreciation | (5,014) | |
Property, plant and equipment, net | 10,547 | |
Current finance lease liability | 777 | |
Long-term finance lease liability | 11,431 | |
Total finance lease liabilities | $ 12,208 | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 1 month 6 days | |
Finance Lease, Weighted Average Remaining Lease Term | 10 years 2 months 12 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.85% | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.05% |
LEASES LEASES - Schedule of Mat
LEASES LEASES - Schedule of Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Lease [Abstract] | |
Lease payments due remainder of fiscal year | $ 14,448 |
Lease payments due year two | 27,560 |
Lease payments due year three | 24,553 |
Lease payments due year four | 18,358 |
Lease payments due year five | 16,527 |
Lease payments due after year five | 64,403 |
Total lease payments | 165,849 |
Less: imputed interest | 24,732 |
Total operating lease liabilities | 141,117 |
Finance Lease, Cost [Abstract] (Deprecated 2019-01-31) | |
Lease payments due remainder of fiscal year | 660 |
Lease payments due year two | 1,342 |
Lease payments due year three | 1,375 |
Lease payments due year four | 1,410 |
Lease payments due year five | 1,445 |
Lease payments due after year five | 8,892 |
Total lease payments | 15,124 |
Less: imputed interest | 2,916 |
Total finance lease liabilities | $ 12,208 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Income Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
General and Administrative Expense [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (2,158) | $ (2,871) | $ 1,431 | $ (2,518) |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 761,476 | $ 762,556 |
Estimated Fair Value | 791,653 | 763,316 |
Long-term Debt, Gross | 750,000 | 750,243 |
Debt Issuance Costs, Net | (654) | (714) |
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 12,130 | 13,027 |
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 | $ 101,995 | 100,359 |
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 | $ 202,500 | 202,500 |
Estimated Fair Value | $ 207,217 | 201,813 |
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 | $ 90,000 | 90,000 |
Estimated Fair Value | $ 93,385 | 89,711 |
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 | $ 212,152 | 202,288 |
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 | $ 67,500 | 67,500 |
Estimated Fair Value | $ 70,686 | 66,942 |
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 | $ 90,000 | 90,000 |
Estimated Fair Value | $ 94,742 | 89,647 |
Debt Instrument, Interest Rate, Stated Percentage | 4.11% | |
Other debt [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying Value | $ 0 | 243 |
Estimated Fair Value | 0 | 243 |
Long-term Debt, gross [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated Fair Value | $ 780,177 | $ 751,003 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Detail) - Pension Plans Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5,825 | $ 6,495 | $ 11,651 | $ 13,001 |
Interest cost | 7,371 | 6,521 | 14,743 | 13,055 |
Expected return on plan assets | (14,882) | (14,695) | (29,766) | (29,411) |
Amortization of prior service cost | (70) | (62) | (141) | (125) |
Amortization of unrecognized actuarial loss | 2,592 | 3,903 | 5,184 | 7,809 |
Net postretirement benefit cost (income) | $ 836 | $ 2,162 | $ 1,671 | 4,329 |
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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Employer Contribution, Percentage, Maximum | 7.00% | 6.00% | |||
Defined Contribution Plan, Cost | $ 4.2 | $ 3.2 | $ 9.6 | $ 7.4 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 13.1 | ||||
Forecast [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 15.1 |
EARNINGS PER SHARE (Detail)
EARNINGS PER SHARE (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Basic weighted-average shares outstanding (shares) | 42,758 | 44,124 | 42,776 | 44,144 |
Dilutive effect of stock options and deferred stock compensation (shares) | 266 | 429 | 262 | 460 |
Diluted weighted-average shares outstanding (shares) | 43,024 | 44,553 | 43,038 | 44,604 |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Anti-dilutive) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
SEGMENT INFORMATION (Detail)
SEGMENT INFORMATION (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 638,996 | $ 620,298 | $ 1,217,310 | $ 1,167,820 | |
Operating income (expense) | 105,685 | 102,076 | 177,730 | 166,574 | |
Identifiable assets | 3,426,640 | 3,426,640 | $ 3,255,385 | ||
Commercial Industrial [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 318,572 | 312,605 | 612,322 | 609,358 | |
Operating income (expense) | 56,236 | 51,736 | 95,682 | 90,961 | |
Identifiable assets | 1,467,700 | 1,467,700 | 1,398,601 | ||
Defense [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 145,571 | 148,085 | 267,068 | 268,968 | |
Operating income (expense) | 29,661 | 38,641 | 47,314 | 58,369 | |
Identifiable assets | 1,068,806 | 1,068,806 | 961,298 | ||
Power [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 176,582 | 162,049 | 340,729 | 294,207 | |
Operating income (expense) | 30,069 | 19,201 | 54,288 | 34,543 | |
Identifiable assets | 771,379 | 771,379 | 720,073 | ||
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (expense) | (10,281) | (7,502) | (19,554) | (17,299) | |
Identifiable assets | 118,755 | 118,755 | $ 175,413 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (1,729) | $ (2,441) | $ (2,809) | $ (4,713) |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Total operating income | $ 105,685 | $ 102,076 | $ 177,730 | $ 166,574 |
Interest expense | (7,960) | (9,566) | (15,232) | (17,770) |
Other income, net | 5,871 | 3,971 | 11,349 | 8,654 |
Earnings before income taxes | $ 103,596 | $ 96,481 | $ 173,847 | $ 157,458 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (288,447) | $ (216,840) | $ (216,840) | ||
Other comprehensive income (loss) before reclassifications | 8,727 | (83,820) | |||
Amounts reclassified from accumulated other comprehensive loss | 3,487 | 12,213 | |||
Other comprehensive income (loss), net of tax | $ 2,289 | $ (40,709) | 12,214 | (22,676) | (71,607) |
Ending balance | (302,490) | (302,490) | (288,447) | ||
Foreign Currency Translation Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (147,148) | (94,708) | (94,708) | ||
Other comprehensive income (loss) before reclassifications | 8,782 | (52,440) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||
Other comprehensive income (loss), net of tax | 8,782 | (52,440) | |||
Ending balance | (139,684) | (139,684) | (147,148) | ||
Total Pension and Postretirment Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (141,299) | $ (122,132) | (122,132) | ||
Other comprehensive income (loss) before reclassifications | (55) | (31,380) | |||
Amounts reclassified from accumulated other comprehensive loss | 3,487 | 12,213 | |||
Other comprehensive income (loss), net of tax | 3,432 | (19,167) | |||
Ending balance | (162,806) | (162,806) | $ (141,299) | ||
Accounting Standards Update 2018-02 [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Ending balance | (26,257) | (26,257) | |||
Accounting Standards Update 2018-02 [Member] | Foreign Currency Translation Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Ending balance | (1,318) | (1,318) | |||
Accounting Standards Update 2018-02 [Member] | Total Pension and Postretirment Adjustments, Net [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Ending balance | $ (24,939) | $ (24,939) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclass) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Earnings from continuing operations before income taxes | $ 103,596 | $ 96,481 | $ 173,847 | $ 157,458 |
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 | 470 | |||
Amortization of actuarial losses | (5,092) | |||
Earnings from continuing operations before income taxes | (4,622) | |||
Income tax | 1,135 | |||
Net earnings | $ (3,487) |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Detail) - USD ($) | Oct. 10, 2013 | Jun. 30, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||
Malpractice Loss Contingency, Claims Incurred in Period | $ 400,000,000 | ||
Standby Letters Of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Letters of credit, outstanding | 29,800,000 | $ 21,700,000 | |
FinancialStandbyLetterOfCreditMember | |||
Loss Contingencies [Line Items] | |||
Letters of credit, outstanding | 10,900,000 | $ 11,700,000 | |
Failure to Meet Contractual Obligations [Member] | |||
Loss Contingencies [Line Items] | |||
Damages sought | $ 25,000,000 | ||
Surety Bond [Member] | |||
Loss Contingencies [Line Items] | |||
Surety Bond Outstanding | 45,600,000 | ||
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 | 55,500,000 | ||
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 |