Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'LINCOLN ELECTRIC HOLDINGS INC | ' |
Entity Central Index Key | '0000059527 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Public Float | ' | $4,591,044,854 |
Entity Common Stock, Shares Outstanding | 81,010,084 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $299,825 | $286,464 |
Accounts receivable (less allowance for doubtful accounts of $8,398 in 2013; $8,654 in 2012) | 367,134 | 360,662 |
Inventories | ' | ' |
Raw materials | 112,478 | 119,963 |
Work-in-process | 38,963 | 41,805 |
Finished goods | 198,522 | 203,122 |
Total inventory | 349,963 | 364,890 |
Deferred income taxes | 10,922 | 16,670 |
Other current assets | 102,931 | 104,130 |
Total Current Assets | 1,130,775 | 1,132,816 |
Property, Plant and Equipment | ' | ' |
Land | 48,369 | 44,510 |
Buildings | 373,373 | 343,867 |
Machinery and equipment | 723,715 | 732,461 |
Property, Plant and Equipment, Gross | 1,145,457 | 1,120,838 |
Less accumulated depreciation | 661,452 | 634,602 |
Property, Plant and Equipment, Net | 484,005 | 486,236 |
Other Assets | ' | ' |
Prepaid Pension Costs | 36,116 | 0 |
Equity investments in affiliates | 26,618 | 24,606 |
Intangibles, net | 147,012 | 132,902 |
Goodwill | 174,715 | 132,903 |
Long-term investments | 32,763 | 31,187 |
Deferred income taxes | 3,556 | 44,639 |
Other non-current assets | 116,307 | 104,574 |
Total Other Assets | 537,087 | 470,811 |
TOTAL ASSETS | 2,151,867 | 2,089,863 |
Current Liabilities | ' | ' |
Amounts due banks | 14,581 | 18,220 |
Trade accounts payable | 212,799 | 209,647 |
Accrued employee compensation and benefits | 68,263 | 68,698 |
Accrued expenses | 29,613 | 29,420 |
Accrued taxes, including income taxes | 46,109 | 45,505 |
Accrued pensions | 10,564 | 3,639 |
Dividends payable | 18,619 | 0 |
Customer Advances | 24,319 | 26,335 |
Other current liabilities | 31,335 | 38,347 |
Current portion of long-term debt | 715 | 456 |
Total Current Liabilities | 456,917 | 440,267 |
Long-Term Liabilities | ' | ' |
Long-term debt, less current portion | 3,791 | 1,599 |
Accrued pensions | 26,999 | 216,189 |
Deferred income taxes | 48,103 | 8,349 |
Accrued taxes | 36,149 | 35,550 |
Other long-term liabilities | 49,220 | 29,588 |
Total Long-Term Liabilities | 164,262 | 291,275 |
Shareholders' Equity | ' | ' |
Preferred shares, without par value – at stated capital amount; authorized – 5,000,000 shares; issued and outstanding – none | 0 | 0 |
Common shares, without par value – at stated capital amount; authorized – 240,000,000 shares; issued – 98,581,434 shares in 2013 and 2012; outstanding – 81,010,084 shares in 2013 and 82,944,817 shares in 2012 | 9,858 | 9,858 |
Additional paid-in capital | 240,519 | 205,124 |
Retained earnings | 1,908,462 | 1,682,668 |
Accumulated other comprehensive loss | -151,941 | -235,400 |
Treasury shares, at cost – 17,571,350 shares in 2013 and 15,636,617 shares in 2012 | -480,296 | -319,877 |
Total Shareholders' Equity | 1,526,602 | 1,342,373 |
Noncontrolling interests | 4,086 | 15,948 |
Total Equity | 1,530,688 | 1,358,321 |
TOTAL LIABILITIES AND EQUITY | $2,151,867 | $2,089,863 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $8,398 | $8,654 |
Preferred shares, authorized | 5,000,000 | 5,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Common shares, authorized | 240,000,000 | 240,000,000 |
Common shares, issued | 98,581,434 | 98,581,434 |
Common shares, outstanding | 81,010,084 | 82,944,817 |
Treasury shares | 17,571,350 | 15,636,617 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $2,852,671 | $2,853,367 | $2,694,609 |
Cost of goods sold | 1,910,017 | 1,986,711 | 1,957,872 |
Gross profit | 942,654 | 866,656 | 736,737 |
Selling, general & administrative expenses | 527,206 | 495,221 | 439,775 |
Rationalization and asset impairment charges (gains) | 8,463 | 9,354 | 282 |
Operating income | 406,985 | 362,081 | 296,680 |
Other income (expense): | ' | ' | ' |
Interest income | 3,320 | 3,988 | 3,121 |
Equity earnings in affiliates | 4,806 | 5,007 | 5,385 |
Other income | 4,194 | 2,685 | 2,849 |
Interest expense | -2,864 | -4,191 | -6,704 |
Total other income (expense) | 9,456 | 7,489 | 4,651 |
Income before income taxes | 416,441 | 369,570 | 301,331 |
Income taxes | 124,754 | 112,354 | 84,318 |
Net income including non-controlling interests | 291,687 | 257,216 | 217,013 |
Non-controlling interests in subsidiaries' (loss) earnings | -2,093 | -195 | -173 |
Net income | $293,780 | $257,411 | $217,186 |
Basic earnings per share (in dollars per share) | $3.58 | $3.10 | $2.60 |
Diluted earnings per share (in dollars per share) | $3.54 | $3.06 | $2.56 |
Cash dividends declared per share (in dollars per share) | $0.83 | $0.71 | $0.64 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income including non-controlling interests | $291,687 | $257,216 | $217,013 |
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges, net of tax of ($141) in 2013; ($201) in 2012; $264 in 2011 | 289 | -832 | 1,264 |
Defined pension plan activity, net of tax of $60,556 in 2013, ($3,492) in 2012; ($47,413) in 2011 | 101,151 | -6,475 | -79,936 |
Currency translation adjustment | -19,955 | 19,635 | -26,773 |
Transactions with non-controlling interests | 155 | 0 | 0 |
Other comprehensive income (loss) | 81,640 | 12,328 | -105,445 |
Comprehensive income | 373,327 | 269,544 | 111,568 |
Comprehensive (loss) income attributable to non-controlling interests | -3,912 | -348 | 315 |
Comprehensive income attributable to shareholders | 377,239 | 269,892 | 111,253 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges, net of tax of ($141) in 2013; ($201) in 2012; $264 in 2011 | 289 | -832 | 1,264 |
Defined pension plan activity, net of tax of $60,556 in 2013, ($3,492) in 2012; ($47,413) in 2011 | 101,151 | -6,475 | -79,936 |
Currency translation adjustment | ($18,136) | $19,788 | ($27,261) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Parenthetical (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges, tax | ($141) | ($201) | $264 |
Unrecognized amounts from defined benefit pension plans, tax | $60,556 | ($3,492) | ($47,413) |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Shares | Noncontrolling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2010 | $1,149,478 | $9,858 | $162,447 | $1,320,552 | ($141,948) | ($217,412) | $15,981 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 84,242,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 217,013 | ' | ' | 217,186 | ' | ' | -173 |
Unrecognized amounts from defined benefit pension plans, net of tax | -79,936 | ' | ' | ' | -79,936 | ' | ' |
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax | 1,264 | ' | ' | ' | 1,264 | ' | ' |
Currency translation adjustment | -26,773 | ' | ' | ' | -27,261 | ' | 488 |
Cash dividends declared - $0.83, $0.710, and $0.635 per share during the year 2013, 2012 and 2011, respectively | -53,345 | ' | ' | -53,345 | ' | ' | ' |
Issuance of shares under benefit plans | 22,538 | ' | 16,657 | ' | ' | 5,881 | ' |
Issuance of shares under benefit plans (in shares) | ' | 593,000 | ' | ' | ' | ' | ' |
Purchase of shares for treasury | -36,997 | ' | ' | ' | ' | -36,997 | ' |
Purchase of shares for treasury (in shares) | ' | -1,078,000 | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 1,193,242 | 9,858 | 179,104 | 1,484,393 | -247,881 | -248,528 | 16,296 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 83,757,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 257,216 | ' | ' | 257,411 | ' | ' | -195 |
Unrecognized amounts from defined benefit pension plans, net of tax | -6,475 | ' | ' | ' | -6,475 | ' | ' |
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax | -832 | ' | ' | ' | -832 | ' | ' |
Currency translation adjustment | 19,635 | ' | ' | ' | 19,788 | ' | -153 |
Cash dividends declared - $0.83, $0.710, and $0.635 per share during the year 2013, 2012 and 2011, respectively | -59,136 | ' | ' | -59,136 | ' | ' | ' |
Issuance of shares under benefit plans | 35,689 | ' | 26,020 | ' | ' | 9,669 | ' |
Issuance of shares under benefit plans (in shares) | ' | 985,000 | ' | ' | ' | ' | ' |
Purchase of shares for treasury | -81,018 | ' | ' | ' | ' | -81,018 | ' |
Purchase of shares for treasury (in shares) | ' | -1,797,000 | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 1,358,321 | 9,858 | 205,124 | 1,682,668 | -235,400 | -319,877 | 15,948 |
Ending Balance (in shares) at Dec. 31, 2012 | 82,944,817 | 82,945,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 291,687 | ' | ' | 293,780 | ' | ' | -2,093 |
Unrecognized amounts from defined benefit pension plans, net of tax | 101,151 | ' | ' | ' | 101,151 | ' | ' |
Unrealized gain on derivatives designated and qualifying as cash flow hedges, net of tax | 289 | ' | ' | ' | 289 | ' | ' |
Currency translation adjustment | -19,955 | ' | ' | ' | -18,136 | ' | -1,819 |
Cash dividends declared - $0.83, $0.710, and $0.635 per share during the year 2013, 2012 and 2011, respectively | -67,986 | ' | ' | -67,986 | ' | ' | ' |
Issuance of shares under benefit plans | 41,153 | ' | 33,693 | ' | ' | 7,460 | ' |
Issuance of shares under benefit plans (in shares) | ' | 787,000 | ' | ' | ' | ' | ' |
Purchase of shares for treasury | -167,879 | ' | ' | ' | ' | -167,879 | ' |
Purchase of shares for treasury (in shares) | -2,671,614 | -2,722,000 | ' | ' | ' | ' | ' |
Equity (Increase) Decrease from Transactions with Noncontrolling Interest Holders | -6,093 | ' | 1,702 | ' | 155 | ' | -7,950 |
Ending Balance at Dec. 31, 2013 | $1,530,688 | $9,858 | $240,519 | $1,908,462 | ($151,941) | ($480,296) | $4,086 |
Ending Balance (in shares) at Dec. 31, 2013 | 81,010,084 | 81,010,000 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_EQU1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends declared per share (in dollars per share) | $0.83 | $0.71 | $0.64 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | $293,780 | $257,411 | $217,186 |
Non-controlling interests in subsidiaries' (loss) earnings | -2,093 | -195 | -173 |
Net income including non-controlling interests | 291,687 | 257,216 | 217,013 |
Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: | ' | ' | ' |
Rationalization and asset impairment charges | 5,092 | 1,740 | 23 |
Depreciation and amortization | 68,883 | 65,334 | 62,051 |
Equity (earnings) loss in affiliates, net | -1,660 | 160 | -1,971 |
Deferred income taxes | 17,817 | -2,137 | 15,139 |
Stock-based compensation | 9,734 | 8,961 | 6,610 |
Pension expense | 29,774 | 35,515 | 26,370 |
PensionContributionsAndDirectPayments | -87,356 | -69,646 | -36,322 |
Other, net | 1,910 | 2,688 | 991 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ' | ' | ' |
(Increase) decrease in accounts receivable | -5,437 | 57,759 | -67,518 |
Decrease (increase) in inventories | 13,310 | 28,286 | -51,679 |
Decrease (increase) in other current assets | 2,811 | -9,506 | -2,857 |
Increase in accounts payable | 794 | 16,110 | 8,672 |
(Decrease) increase in other current liabilities | -7,785 | 21,887 | 20,838 |
Net change in other long-term assets and liabilities | -680 | -86,883 | -3,842 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 338,894 | 327,484 | 193,518 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -76,015 | -52,715 | -65,813 |
Acquisition of businesses, net of cash acquired | -53,161 | -134,602 | -66,229 |
Proceeds from Sale of Property, Plant, and Equipment | 1,393 | 1,387 | 1,246 |
Other investing activities | -1,717 | -1,541 | 0 |
NET CASH USED BY INVESTING ACTIVITIES | -129,500 | -187,471 | -130,796 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Proceeds from short-term borrowings | 1,230 | 2,518 | 23,224 |
Payments on short-term borrowings | -2,164 | -4,293 | -15,446 |
Amounts due banks, net | -517 | -2,758 | 1,203 |
Proceeds from long-term borrowings | 61 | 918 | 909 |
Payments on long-term borrowings | -450 | -85,688 | -1,941 |
Proceeds from exercise of stock options | 20,297 | 18,776 | 11,351 |
Excess tax benefit from stock-based compensation | 10,602 | 7,819 | 2,916 |
Purchase of shares for treasury | -167,879 | -81,018 | -36,997 |
Cash dividends paid to shareholders | -49,277 | -73,112 | -51,935 |
Transactions with Noncontrolling Interests | -6,087 | 0 | 0 |
Other financing activities | 0 | 0 | 3,346 |
NET CASH USED BY FINANCING ACTIVITIES | -194,184 | -216,838 | -63,370 |
Effect of exchange rate changes on cash and cash equivalents | -1,849 | 2,188 | -4,444 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 13,361 | -74,637 | -5,092 |
Cash and cash equivalents at beginning of year | 286,464 | 361,101 | 366,193 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $299,825 | $286,464 | $361,101 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||
SIGNIFICANT ACCOUNTING POLICIES | |||
Principles of Consolidation | |||
The consolidated financial statements include the accounts of Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest (the "Company") after elimination of all inter-company accounts, transactions and profits. | |||
General Information | |||
The Company is a manufacturer of welding, cutting and brazing products. Welding products include arc welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes and fluxes. The Company's product offering also includes computer numeric controlled ("CNC") plasma and oxy-fuel cutting systems, regulators and torches used in oxy-fuel welding, cutting and brazing and consumables used in the brazing and soldering alloys market. | |||
Translation of Foreign Currencies | |||
Asset and liability accounts are translated into U.S. dollars using exchange rates in effect at the dates of the Consolidated Balance Sheets; revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments are reflected as a component of Total equity. For subsidiaries operating in highly inflationary economies, both historical and current exchange rates are used in translating balance sheet accounts and translation adjustments are included in Net income. | |||
The translation of assets and liabilities originally denominated in foreign currencies into U.S. dollars is for consolidation purposes, and does not necessarily indicate that the Company could realize or settle the reported value of those assets and liabilities in U.S. dollars. Additionally, such a translation does not necessarily indicate that the Company could return or distribute the reported U.S. dollar value of the net equity of its foreign operations to shareholders. | |||
Foreign currency transaction losses are included in Selling, general & administrative expenses and were $7,759, $4,608 and $4,904 in 2013, 2012 and 2011, respectively. | |||
Venezuela – Highly Inflationary Economy | |||
Venezuela is a highly inflationary economy under U.S. generally accepted accounting principles ("GAAP"). As a result, the financial statements of the Company's Venezuelan operation are reported under highly inflationary accounting rules as of January 1, 2010. Under highly inflationary accounting, the financial statements of the Company's Venezuelan operation have been remeasured into the Company's reporting currency and exchange gains and losses from the re-measurement of monetary assets and liabilities are reflected in current earnings. On February 8, 2013, the Venezuelan government announced the devaluation of its currency relative to the U.S. dollar. Effective February 13, 2013 the official rate moved from 4.3 to 6.3 bolivars to the U.S. dollar. The devaluation of the bolivar resulted in a foreign currency transaction loss of $8,081 in Selling, general & administrative expenses and higher Cost of goods sold of $4,117 due to the liquidation of inventory valued at the historical exchange rate. | |||
Future impacts to earnings of applying highly inflationary accounting for Venezuela on the Company's consolidated financial statements will be dependent upon movements in the applicable exchange rates between the bolivar and the U.S. dollar and the amount of monetary assets and liabilities included in the Company's Venezuelan operation's balance sheet. The bolivar-denominated monetary net asset position was $38,633 at December 31, 2013, which includes $50,642 of cash and cash equivalents and $31,545 at December 31, 2012, which includes $32,610 of cash and cash equivalents. The increased exposure was due to the limited opportunities to convert bolivars into U.S. dollars. | |||
Cash Equivalents | |||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||
Accounts Receivable | |||
The Company maintains an allowance for doubtful accounts for estimated losses from the failure of its customers to make required payments for products delivered. The Company estimates this allowance based on the age of the related receivable, knowledge of the financial condition of customers, review of historical receivables and reserve trends and other pertinent information. If the financial condition of customers deteriorates or an unfavorable trend in receivable collections is experienced in the future, additional allowances may be required. Historically, the Company's reserves have approximated actual experience. | |||
Inventories | |||
Inventories are valued at the lower of cost or market. Fixed manufacturing overhead costs are allocated to inventory based on normal production capacity and abnormal manufacturing costs are recognized as period costs. For most domestic inventories, cost is determined principally by the last-in, first-out ("LIFO") method, and for non-U.S. inventories, cost is determined by the first-in, first-out ("FIFO") method. | |||
Reserves are maintained for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. Historically, the Company's reserves have approximated actual experience. | |||
Equity Investments | |||
Investments in businesses in which the Company does not have a controlling interest and holds between a 20% and 50% ownership interest are accounted for using the equity method of accounting. The Company's 50% ownership interest in equity investments includes investments in Turkey and Chile. The amount of retained earnings that represents undistributed earnings of 50% or less owned equity investments was $16,694 at December 31, 2013 and $15,034 at December 31, 2012. | |||
Property, Plant and Equipment | |||
Property, plant and equipment are stated at cost and include improvements which significantly increase capacities or extend the useful lives of existing plant and equipment. Depreciation and amortization are computed using a straight-line method over useful lives ranging from three to 20 years for machinery, tools and equipment, and up to 50 years for buildings. Net gains or losses related to asset dispositions are recognized in earnings in the period in which dispositions occur. | |||
Routine maintenance, repairs and replacements are expensed as incurred. The Company capitalizes interest costs associated with long-term construction in progress. | |||
Goodwill and Intangibles | |||
Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Intangible assets other than goodwill are recorded at fair value at the time acquired or at cost, if applicable. Intangible assets that do not have indefinite lives are amortized in line with the pattern in which the economic benefits of the intangible asset are consumed. If the pattern of economic benefit cannot be reliably determined, the intangible assets are amortized on a straight-line basis over the shorter of the legal or estimated life. | |||
Goodwill and indefinite-lived intangibles assets are not amortized, but are tested for impairment in the fourth quarter using the same dates each year or more frequently if changes in circumstances or the occurrence of events indicate potential impairment. The fair value of each indefinite-lived intangible asset is compared to its carrying value and an impairment charge is recorded if the carrying value exceeds the fair value. Goodwill is tested by comparing the fair value of each reporting unit with its carrying value. If the carrying value of the reporting unit exceeds its fair value, the implied value of goodwill is compared to its carrying value and impairment is recognized to the extent that the carrying value exceeds the implied fair value. | |||
Fair values are determined using established business valuation multiples and models developed by the Company that incorporate allocations of certain assets and cash flows among reporting units, estimates of market participant assumptions of future cash flows, future growth rates and the applicable discount rates to value estimated cash flows. Changes in economic and operating conditions impacting these assumptions could result in asset impairments in future periods. The Company's annual impairment test of goodwill and indefinite-lived intangible assets in 2013 resulted in no impairment loss being recognized. | |||
Long-Lived Assets | |||
The Company evaluates whether current facts or circumstances indicate that the carrying value of its depreciable long-lived assets to be held and used may not be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. If an asset is determined to be impaired, a loss is recognized to the extent that carrying value exceeds fair value. Fair value is measured based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. | |||
Fair Value Measurements | |||
Financial assets and liabilities, such as the Company's defined benefit pension plan assets and derivative contracts, are valued at fair value using the market and income valuation approaches. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses the market approach to value similar assets and liabilities in active markets and the income approach that consists of discounted cash flow models that take into account the present value of future cash flows under the terms of the contracts using current market information as of the reporting date. The following hierarchy is used to classify the inputs used to measure fair value: | |||
Level 1 | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. | ||
Level 2 | Inputs to the valuation methodology include: | ||
• Quoted prices for similar assets or liabilities in active markets; | |||
• Quoted prices for identical or similar assets or liabilities in inactive markets; | |||
• Inputs other than quoted prices that are observable for the asset or liability; and | |||
• Inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||
If the asset or liability has a specific (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | |||
Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||
Product Warranties | |||
The Company accrues for product warranty claims based on historical experience and the expected material and labor costs to provide warranty service. Warranty services are provided for periods up to three years from the date of sale. The accrual for product warranty claims is included in "Accrued expenses." | |||
Revenue Recognition | |||
Substantially all of the Company's revenues are recognized when the risks and rewards of ownership and title to the product have transferred to the customer which generally occurs at point of shipment. The Company recognizes any discounts, credits, returns, rebates and incentive programs based on reasonable estimates as a reduction of Sales to arrive at Net sales at the same time the related revenue is recorded. | |||
For contracts accounted for under the percentage of completion method, revenue recognition is based upon the ratio of costs incurred to date compared with estimated total costs to complete. The cumulative impact of revisions to total estimated costs is reflected in the period of the change, including anticipated losses. | |||
Distribution Costs | |||
Distribution costs, including warehousing and freight related to product shipments, are included in Cost of goods sold. | |||
Stock-Based Compensation | |||
Expense is recognized for all awards of stock-based compensation by allocating the aggregate grant date fair value over the vesting period. No expense is recognized for any stock options, restricted or deferred shares or restricted stock units ultimately forfeited because the recipients fail to meet vesting requirements. | |||
Common stock issuable upon the exercise of employee stock options is excluded from the calculation of diluted earnings per share when the calculation of option equivalent shares is anti-dilutive. | |||
Financial Instruments | |||
The Company uses forward contracts to hedge exposures to commodity prices and exchange rate fluctuations on certain purchase and sales transactions, balance sheet and net investment exposures. Contracts are generally written on a short-term basis but may cover exposures for up to two years and are not held for trading or speculative purposes. The Company uses interest rate swaps from time to time to hedge changes in the fair value of debt. The Company recognizes derivative instruments as either assets or liabilities at fair value. The accounting for changes in the fair value of derivative instruments depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. | |||
For derivative instruments that qualify as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or a liability), the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item are recognized in earnings. For derivative instruments that qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows), the effective portion of the unrealized gain or loss on the derivative instrument is reported as a component of Accumulated other comprehensive loss with offsetting amounts recorded as Other current assets, Other non-current assets, Other current liabilities or Other long-term liabilities depending on the position and the duration of the contract. At settlement, the realized gain or loss is reflected in earnings in the same period or periods during which the hedged transaction affects earnings. Any remaining gain or loss on the derivative instrument is recognized in earnings. For derivative instruments not designated as hedges, the gain or loss from changes in the fair value of the instruments is recognized in earnings. | |||
Research and Development | |||
Research and development costs are charged to Selling, general & administrative expenses as incurred and totaled $42,126, $37,305 and $32,834 in 2013, 2012 and 2011, respectively. | |||
Bonus | |||
Included in Selling, general & administrative expenses are the costs related to the Company's discretionary employee bonus programs, which for certain U.S.- based employees are net of hospitalization costs. Bonus costs were $123,571 in 2013, $124,947 in 2012 and $104,361 in 2011. | |||
Income Taxes | |||
Deferred income taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carry-forwards. In assessing the realizability of deferred tax assets, the Company assesses whether it is more likely than not that a portion or all of the deferred tax assets will not be realized. | |||
Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in certain circumstances that affect the amounts reported in the accompanying consolidated financial statements and notes. Actual results could differ from these estimates. | |||
Reclassification | |||
Certain reclassifications have been made to prior year financial statements to conform to current year classifications. | |||
New Accounting Pronouncements | |||
New Accounting Standards to be Adopted: | |||
In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU 2013-11 requires an entity to present an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, with limited exceptions. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption and retrospective application is permitted. The Company is currently evaluating the impact of the adoption of ASU 2013-11, but does not expect it will have a significant impact on the Company's financial statements. | |||
In March 2013, the FASB issued ASU No. 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." ASU 2013-05 clarifies the applicable guidance for the release of the cumulative translation adjustment under current U.S. GAAP by emphasizing that the accounting for the release of the cumulative translation adjustment into net income for sales or transfers of a controlling financial interest within a foreign entity is the same irrespective of whether the sale or transfer is of a subsidiary or a group of assets that is a nonprofit activity or business. When a reporting entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income. The amendments are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company is currently evaluating the impact of the adoption of ASU 2013-05 on the Company's financial statements. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
EARNINGS PER SHARE | ' | |||||||||||
EARNINGS PER SHARE | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 293,780 | $ | 257,411 | $ | 217,186 | ||||||
Denominator: | ||||||||||||
Basic weighted average shares outstanding | 81,978 | 83,087 | 83,681 | |||||||||
Effect of dilutive securities - Stock options and awards | 1,064 | 1,088 | 1,027 | |||||||||
Diluted weighted average shares outstanding | 83,042 | 84,175 | 84,708 | |||||||||
Basic earnings per share | $ | 3.58 | $ | 3.1 | $ | 2.6 | ||||||
Diluted earnings per share | $ | 3.54 | $ | 3.06 | $ | 2.56 | ||||||
For the years ended December 31, 2013, 2012 and 2011, common shares subject to equity-based awards of 45,850, 107,814 and 626,135, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
ACQUISITIONS | ' |
ACQUISITIONS | |
During November 2013, the Company completed the acquisition of Robolution GmbH ("Robolution"). Robolution, based outside of Frankfurt, Germany, is a leading European provider of robotic arc welding systems. The acquisition added to the Company's growing automation business and will enable the Company to seamlessly support automation customers across three continents. | |
During November 2013, the Company acquired an ownership interest in Burlington Automation Corporation ("Burlington"). Burlington, based in Hamilton, Ontario, Canada, is a leader in the design and manufacture of 3D robotic plasma cutting systems whose products are sold under the brand name Python X®. The acquisition broadens the Company's portfolio of automated cutting and welding process solutions. | |
Combined revenues for Robolution and Burlington in 2013 were approximately $35,000. The Company acquired Robolution and Burlington for approximately $54,023 in cash, net of cash acquired, and assumed debt and a $17,225 liability to acquire the remaining financial interest in Burlington. The fair value of net assets acquired was $30,051, resulting in goodwill of $41,197. The purchase price allocations are preliminary and subject to final opening balance sheet adjustments. In addition, during 2013 the Company acquired a greater interest in its majority-owned joint venture, Lincoln Electric Heli (Zhengzhou) Welding Materials Company Ltd. | |
On December 31, 2012, the Company completed the acquisition of the privately-held automated systems and tooling manufacturer, Tennessee Rand, Inc. ("Tenn Rand"). Tenn Rand, based in Chattanooga, Tennessee, is a leader in the design and manufacture of tooling and robotic systems for welding applications. The acquisition added tool design, system building and machining capabilities that will enable the Company to further expand its welding automation business. Annual sales for Tenn Rand in 2012 were approximately $35,000. | |
On November 13, 2012, the Company completed the acquisition of the Kaliburn, Burny and Cleveland Motion Control businesses (collectively, "Kaliburn") from ITT Corporation. Kaliburn, headquartered in Ladson, South Carolina, is a designer and manufacturer of shape cutting solutions, producer of shape cutting control systems and manufacturer of web tension transducers and engineered machine systems. The acquisitions added to the Company's cutting business portfolio. Annual sales for Kaliburn at the date of acquisition were approximately $36,000. | |
On May 17, 2012, the Company completed the acquisition of Wayne Trail Technologies, Inc. (“Wayne Trail”). Wayne Trail, based in Ft. Loramie, Ohio, is a manufacturer of automated systems and tooling, serving a wide range of applications in the metal processing market. The acquisition added to the Company’s welding and automated solutions portfolio. Annual sales for Wayne Trail at the date of acquisition were approximately $50,000. | |
On March 6, 2012, the Company completed the acquisition of Weartech International, Inc. (“Weartech”). Weartech, based in Anaheim, California, is a producer of cobalt-based hard facing and wear-resistant welding consumables. The acquisition added to the Company’s consumables portfolio. Sales for Weartech during 2011 were approximately $40,000. | |
The Company acquired Tenn Rand, Kaliburn, Wayne Trail and Weartech for approximately $144,423 in cash, net of cash acquired, and assumed debt. The fair value of net assets acquired was $73,257, resulting in goodwill of $71,166. | |
On July 29, 2011, the Company acquired substantially all of the assets of Techalloy Company, Inc. and certain assets of its parent company, Central Wire Industries Ltd. (collectively, "Techalloy"). Techalloy, based in Baltimore, Maryland, is a manufacturer of nickel alloy and stainless steel welding consumables. The acquisition added to the Company's consumables portfolio. Annual sales for Techalloy at the date of acquisition were approximately $70,000. | |
On July 29, 2011, the Company acquired substantially all of the assets of Applied Robotics, Inc. (d/b/a Torchmate) ("Torchmate"). Torchmate, based in Reno, Nevada, provides a wide selection of computer numeric controlled plasma cutter and oxy-fuel cutting systems. The acquisition added to the Company's plasma and oxy-fuel cutting product offering. Annual sales for Torchmate at the date of acquisition were approximately $13,000. | |
On March 11, 2011, the Company completed the acquisition of OOO Severstal-metiz: welding consumables ("Severstal"). Severstal is a leading manufacturer of welding consumables in Russia and was a subsidiary of OAO Severstal, one of the world's leading vertically integrated steel and mining companies. This acquisition expanded the Company's capacity and distribution channels in Russia and the Commonwealth of Independent States ("CIS"). Sales for Severstal during 2010 were approximately $40,000. | |
On January 31, 2011, the Company acquired substantially all of the assets of SSCO Manufacturing, Inc. (d/b/a Arc Products) ("Arc Products"). Arc Products is a manufacturer of orbital welding systems and welding automation components based in Southern California. Orbital welding systems are designed to automatically weld pipe and tube in difficult to access locations and for mission-critical applications requiring high weld integrity and sophisticated quality monitoring capabilities. The acquisition will complement the Company's ability to serve global customers in the nuclear, power generation and process industries worldwide. Sales for Arc Products during 2010 were not significant. | |
The Company acquired Techalloy, Torchmate, Severstal and Arc Products for approximately $65,321 in cash and assumed debt and a contingent consideration liability fair valued at $3,806. The contingent consideration is based upon estimated sales at the related acquisition for the five-year period ending December 31, 2015 and will be paid in 2016 based on actual sales during the five-year period. The fair value of net assets acquired was $46,837, resulting in goodwill of $22,290. | |
Pro forma information related to these acquisitions has not been presented because the impact on the Company's Consolidated Statements of Income is not material. Acquired companies are included in the Company's consolidated financial statements as of the date of acquisition. |
GOODWILL_AND_INTANGIBLES
GOODWILL AND INTANGIBLES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
GOODWILL AND INTANGIBLES | ' | ||||||||||||||||||||||||
GOODWILL AND INTANGIBLES | |||||||||||||||||||||||||
The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
North | Europe | Asia | South | The Harris | Consolidated | ||||||||||||||||||||
America | Welding | Pacific | America | Products | |||||||||||||||||||||
Welding | Welding | Welding | Group | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 18,514 | $ | 23,867 | $ | 5,208 | $ | 561 | $ | 16,951 | $ | 65,101 | |||||||||||||
Additions and adjustments | 67,740 | 66 | — | — | (1,109 | ) | 66,697 | ||||||||||||||||||
Foreign currency translation | 23 | 1,424 | 40 | 53 | (435 | ) | 1,105 | ||||||||||||||||||
Balance as of December 31, 2012 | 86,277 | 25,357 | 5,248 | 614 | 15,407 | 132,903 | |||||||||||||||||||
Additions and adjustments | 44,446 | — | — | — | (1,027 | ) | 43,419 | ||||||||||||||||||
Foreign currency translation | -284 | (927 | ) | 111 | (52 | ) | (455 | ) | (1,607 | ) | |||||||||||||||
Balance as of December 31, 2013 | $ | 130,439 | $ | 24,430 | $ | 5,359 | $ | 562 | $ | 13,925 | $ | 174,715 | |||||||||||||
Additions to goodwill primarily reflect goodwill recognized in the acquisitions of Robolution and Burlington in 2013 and the acquisitions of Weartech, Wayne Trail, Kaliburn and Tenn Rand in 2012 (see Note 3). Reductions to goodwill result from the tax benefit attributable to the amortization of tax deductible goodwill in excess of goodwill recorded for financial reporting purposes. | |||||||||||||||||||||||||
Gross and net intangible assets other than goodwill by asset class as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Weighted | Gross | Accumulated | Indefinite | Total Intangible, | |||||||||||||||||||||
Average Life | Amount | Amortization | Lived Assets | Net | |||||||||||||||||||||
Trademarks and trade names | 12 | $ | 38,566 | $ | 11,898 | $ | 18,310 | $ | 44,978 | ||||||||||||||||
Customer relationships | 14 | 74,935 | 16,837 | — | 58,098 | ||||||||||||||||||||
Patents | 20 | 23,861 | 6,205 | — | 17,656 | ||||||||||||||||||||
Other | 14 | 49,578 | 23,298 | — | 26,280 | ||||||||||||||||||||
Total | $ | 186,940 | $ | 58,238 | $ | 18,310 | $ | 147,012 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Gross | Accumulated | Indefinite | Total Intangible, | ||||||||||||||||||||||
Amount | Amortization | Lived Assets | Net | ||||||||||||||||||||||
Trademarks and trade names | $ | 30,611 | $ | 9,493 | $ | 18,276 | $ | 39,394 | |||||||||||||||||
Customer relationships | 63,906 | 12,099 | — | 51,807 | |||||||||||||||||||||
Patents | 20,882 | 5,103 | — | 15,779 | |||||||||||||||||||||
Other | 44,769 | 18,847 | — | 25,922 | |||||||||||||||||||||
Total | $ | 160,168 | $ | 45,542 | $ | 18,276 | $ | 132,902 | |||||||||||||||||
Additions to gross and net intangible assets primarily reflect assets and related amortization recognized in the acquisitions of Robolution and Burlington in 2013 and the acquisitions of Weartech, Wayne Trail, Kaliburn and Tenn Rand in 2012. Aggregate amortization expense was $13,342, $10,641 and $6,661 for 2013, 2012 and 2011, respectively. Estimated annual amortization expense for intangible assets for each of the next five years is $15,745 in 2014, $15,337 in 2015, $14,367 in 2016, $12,228 in 2017 and $11,484 in 2018. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||||||
The Company's primary business is the design and manufacture of arc welding and cutting products, manufacturing a broad line of arc welding equipment, consumable welding products and other welding and cutting products. The Company also has a leading global position in the brazing and soldering alloys market. The Company has aligned its business units into five operating segments to enhance the utilization of the Company's worldwide resources and global end user and sourcing initiatives. The operating segments consist of North America Welding, Europe Welding, Asia Pacific Welding, South America Welding and The Harris Products Group. The North America Welding segment includes welding operations in the United States, Canada and Mexico. The Europe Welding segment includes welding operations in Europe, Russia, Africa and the Middle East. The other two welding segments include welding operations in Asia Pacific and South America, respectively. The fifth segment, The Harris Products Group, includes the Company's global cutting, soldering and brazing businesses as well as the retail business in the United States. | ||||||||||||||||||||||||||||
Segment performance is measured and resources are allocated based on a number of factors, the primary profit measure being earnings before interest and income taxes ("EBIT"), as adjusted. Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets. The accounting principles applied at the operating segment level are generally the same as those applied at the consolidated financial statement level with the exception of LIFO. Segment assets include inventories measured on a FIFO basis while consolidated inventories are reported on a LIFO basis. Segment and consolidated income before interest and income taxes are reported on a LIFO basis. At December 31, 2013, 2012 and 2011, approximately 38%, 34% and 31%, respectively, of total inventories were valued using the LIFO method. LIFO is used for certain domestic inventories included in the North America Welding segment. Inter-segment sales are recorded at agreed upon prices that approximate arm's length prices and are eliminated in consolidation. Corporate-level expenses are allocated to the operating segments on a basis that management believes to be reasonable. Certain corporate-level expenses may not be allocated to the operating segments and are reported as Corporate/Eliminations. | ||||||||||||||||||||||||||||
Financial information for the reportable segments follows: | ||||||||||||||||||||||||||||
North | Europe | Asia | South | The Harris | Corporate / | Consolidated | ||||||||||||||||||||||
America | Welding | Pacific | America | Products | Eliminations | |||||||||||||||||||||||
Welding | Welding | Welding | Group | |||||||||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Net sales | $ | 1,652,769 | $ | 429,548 | $ | 266,282 | $ | 195,895 | $ | 308,177 | $ | — | $ | 2,852,671 | ||||||||||||||
Inter-segment sales | 127,254 | 19,911 | 14,906 | 233 | 9,605 | (171,909 | ) | $ | — | |||||||||||||||||||
Total | $ | 1,780,023 | $ | 449,459 | $ | 281,188 | $ | 196,128 | $ | 317,782 | $ | (171,909 | ) | $ | 2,852,671 | |||||||||||||
EBIT, as adjusted | $ | 318,507 | $ | 36,247 | $ | 1,815 | $ | 57,306 | $ | 27,826 | $ | (4,350 | ) | $ | 437,351 | |||||||||||||
Special items charge (gain) | 1,052 | 2,045 | 6,071 | 12,198 | — | — | $ | 21,366 | ||||||||||||||||||||
EBIT | $ | 317,455 | $ | 34,202 | $ | (4,256 | ) | $ | 45,108 | $ | 27,826 | $ | (4,350 | ) | $ | 415,985 | ||||||||||||
Interest income | 3,320 | |||||||||||||||||||||||||||
Interest expense | (2,864 | ) | ||||||||||||||||||||||||||
Income before income taxes | $ | 416,441 | ||||||||||||||||||||||||||
Total assets | $ | 1,048,412 | $ | 403,094 | $ | 325,656 | $ | 169,027 | $ | 162,496 | $ | 43,182 | $ | 2,151,867 | ||||||||||||||
Equity investments in affiliates | — | 23,315 | — | 3,303 | — | — | $ | 26,618 | ||||||||||||||||||||
Capital expenditures | 41,181 | 10,305 | 2,073 | 20,840 | 3,931 | (2,315 | ) | $ | 76,015 | |||||||||||||||||||
Depreciation and amortization | 39,086 | 10,933 | 13,559 | 1,893 | 3,636 | (224 | ) | $ | 68,883 | |||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Net sales | $ | 1,580,818 | $ | 452,227 | $ | 324,482 | $ | 161,483 | $ | 334,357 | $ | — | $ | 2,853,367 | ||||||||||||||
Inter-segment sales | 131,062 | 16,048 | 14,829 | 38 | 8,549 | (170,526 | ) | $ | — | |||||||||||||||||||
Total | $ | 1,711,880 | $ | 468,275 | $ | 339,311 | $ | 161,521 | $ | 342,906 | $ | (170,526 | ) | $ | 2,853,367 | |||||||||||||
EBIT, as adjusted | $ | 293,070 | $ | 37,299 | $ | 7,247 | $ | 18,301 | $ | 29,477 | $ | (4,886 | ) | $ | 380,508 | |||||||||||||
Special items charge (gain) | 827 | 3,534 | 4,993 | 1,381 | — | — | $ | 10,735 | ||||||||||||||||||||
EBIT | $ | 292,243 | $ | 33,765 | $ | 2,254 | $ | 16,920 | $ | 29,477 | $ | (4,886 | ) | $ | 369,773 | |||||||||||||
Interest income | 3,988 | |||||||||||||||||||||||||||
Interest expense | (4,191 | ) | ||||||||||||||||||||||||||
Income before income taxes | $ | 369,570 | ||||||||||||||||||||||||||
Total assets | $ | 980,093 | $ | 451,654 | $ | 350,189 | $ | 134,650 | $ | 195,881 | $ | (22,604 | ) | $ | 2,089,863 | |||||||||||||
Equity investments in affiliates | — | 21,798 | — | 2,808 | — | — | $ | 24,606 | ||||||||||||||||||||
Capital expenditures | 36,834 | 5,372 | 8,833 | 899 | 831 | (54 | ) | $ | 52,715 | |||||||||||||||||||
Depreciation and amortization | 33,479 | 11,008 | 15,102 | 1,878 | 3,934 | (67 | ) | $ | 65,334 | |||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||
Net sales | $ | 1,309,499 | $ | 508,692 | $ | 376,276 | $ | 156,684 | $ | 343,458 | $ | — | $ | 2,694,609 | ||||||||||||||
Inter-segment sales | 136,314 | 17,422 | 15,614 | 494 | 8,496 | (178,340 | ) | $ | — | |||||||||||||||||||
Total | $ | 1,445,813 | $ | 526,114 | $ | 391,890 | $ | 157,178 | $ | 351,954 | $ | (178,340 | ) | $ | 2,694,609 | |||||||||||||
EBIT, as adjusted | $ | 227,924 | $ | 36,171 | $ | 2,629 | $ | 12,895 | $ | 25,151 | $ | 426 | $ | 305,196 | ||||||||||||||
Special items charge (gain) | — | 392 | (110 | ) | — | — | — | $ | 282 | |||||||||||||||||||
EBIT | $ | 227,924 | $ | 35,779 | $ | 2,739 | $ | 12,895 | $ | 25,151 | $ | 426 | $ | 304,914 | ||||||||||||||
Interest income | 3,121 | |||||||||||||||||||||||||||
Interest expense | (6,704 | ) | ||||||||||||||||||||||||||
Income before income taxes | $ | 301,331 | ||||||||||||||||||||||||||
Total assets | $ | 771,315 | $ | 436,327 | $ | 380,282 | $ | 110,781 | $ | 181,916 | $ | 96,155 | $ | 1,976,776 | ||||||||||||||
Equity investments in affiliates | — | 20,500 | — | 4,118 | — | — | $ | 24,618 | ||||||||||||||||||||
Capital expenditures | 31,826 | 8,566 | 21,498 | 2,314 | 1,792 | (183 | ) | $ | 65,813 | |||||||||||||||||||
Depreciation and amortization | 29,237 | 11,736 | 14,663 | 2,033 | 4,714 | (332 | ) | $ | 62,051 | |||||||||||||||||||
In 2013, special items include net charges of $1,052, $2,045 and $922 in the North America Welding, Europe Welding and Asia Pacific Welding segments, respectively, primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The Asia Pacific Welding segment special items also include charges of $4,444 related to impairment of long-lived assets and a charge of $705 related to a loss on the sale of land. The South America Welding segment special items represent charges of $12,198 related to the devaluation of the Venezuelan currency. | ||||||||||||||||||||||||||||
In 2012, special items include net charges of $827, $3,637 and $3,151 for rationalization actions in the North America Welding, Europe Welding and Asia Pacific Welding segments, respectively, primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The Europe Welding segment special items also include a gain of $103 on the sale of assets. The Asia Pacific Welding segment special items also include a charge of $1,842 related to asset impairments. The South America Welding segment special item represents a charge of $1,381 related to a change in Venezuelan labor law, which provides for increased employee severance obligations. | ||||||||||||||||||||||||||||
In 2011, special items include net charges of $188 and $93 for rationalization actions in the Europe Welding and Asia Pacific Welding segments, respectively, primarily related to employee severance and other costs associated with the consolidation of manufacturing operations. The Europe Welding and Asia Pacific Welding segments special items also include a loss of $204 and a gain of $203, respectively, on the sale of assets at rationalized operations. | ||||||||||||||||||||||||||||
Export sales (excluding inter-company sales) from the United States were $260,195 in 2013, $268,331 in 2012 and $242,380 in 2011. No individual customer comprised more than 10% of the Company's total revenues for any of the three years ended December 31, 2013. | ||||||||||||||||||||||||||||
The geographic split of the Company's Net sales, based on the location of the customer, and property, plant and equipment were as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||
United States | $ | 1,350,309 | $ | 1,283,066 | $ | 1,092,838 | ||||||||||||||||||||||
China | 219,490 | 229,996 | 286,121 | |||||||||||||||||||||||||
Other foreign countries | 1,282,872 | 1,340,305 | 1,315,650 | |||||||||||||||||||||||||
Total | $ | 2,852,671 | $ | 2,853,367 | $ | 2,694,609 | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Property, plant and equipment, net: | ||||||||||||||||||||||||||||
United States | $ | 162,357 | $ | 170,831 | $ | 149,637 | ||||||||||||||||||||||
China | 83,416 | 92,744 | 96,374 | |||||||||||||||||||||||||
Other foreign countries | 238,685 | 223,050 | 224,801 | |||||||||||||||||||||||||
Eliminations | (453 | ) | (389 | ) | (361 | ) | ||||||||||||||||||||||
Total | $ | 484,005 | $ | 486,236 | $ | 470,451 | ||||||||||||||||||||||
RATIONALIZATION_AND_ASSET_IMPA
RATIONALIZATION AND ASSET IMPAIRMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
RATIONALIZATION AND ASSET IMPAIRMENTS | ' | ||||||||||||||||||||
RATIONALIZATION AND ASSET IMPAIRMENTS | |||||||||||||||||||||
The Company recorded rationalization net charges of $8,463, $9,354 and $282 for the years ended December 31, 2013, 2012 and 2011, respectively. The 2013 net charges include $3,658 primarily related to employee severance and $4,961 in asset impairment charges, partially offset by gains of $156 related to sale of assets. A description of each restructuring plan and the related costs follows: | |||||||||||||||||||||
North America Welding Plans: | |||||||||||||||||||||
During 2012, the Company initiated various rationalization plans within the North America Welding segment. Plans for the segment include consolidating its Oceanside, California operations and its Reno, Nevada operations to another facility in Reno, Nevada and consolidating its Baltimore, Maryland manufacturing operations into its current manufacturing operations in Cleveland, Ohio. These actions impacted 72 employees within the North America Welding segment. During the year ended December 31, 2013, the Company recorded charges of $1,052, which represent employee severance and other related costs. At December 31, 2013, a liability relating to these actions of $466 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial. | |||||||||||||||||||||
Europe Welding Plans: | |||||||||||||||||||||
During 2013, the Company announced a rationalization plan within the Europe Welding segment to relocate the manufacturing of certain consumable products from its Portuguese operations to current facilities in Italy. These actions impacted 56 employees within the Europe Welding segment. During the year ended December 31, 2013, the Company recorded charges of $1,832 related to these activities. The amount represents employee severance and other related costs of $1,599 and asset impairment charges of $233. At December 31, 2013, a liability relating to these actions of $1,209 was recognized in Other current liabilities. The Company expects to incur additional charges in the range of $400 to $700 related to the completion of this plan. | |||||||||||||||||||||
During 2012, the Company initiated various rationalization plans within the Europe Welding segment. Plans for the segment include the consolidation of manufacturing facilities in Russia, relocation of its Italian machine manufacturing operations to current facilities in Poland and headcount restructuring at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. These actions impacted 285 employees within the Europe Welding segment. During the year ended December 31, 2013, the Company recorded net charges of $213 related to these activities. The amount represents employee severance and other related costs and asset impairment charges, partially offset by a gain on sale of assets. At December 31, 2013, a liability relating to these actions of $1,226 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial. | |||||||||||||||||||||
Asia Pacific Welding Plans: | |||||||||||||||||||||
During 2012, the Company initiated various rationalization plans within the Asia Pacific Welding segment. These included the rationalization of the Australian manufacturing operations and headcount reductions at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. These actions impacted 268 employees within the Asia Pacific Welding segment. During the year ended December 31, 2013, the Company recorded net charges of $922, which represent employee severance and other related costs of $841 and asset impairment charges of $235, partially offset by gains of $154 from the sale of assets. At December 31, 2013, a liability relating to these actions of $375 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial. | |||||||||||||||||||||
The Company continues evaluating its cost structure and additional rationalization actions may result in charges in future periods. | |||||||||||||||||||||
During 2013, the Company recorded long-lived asset impairment charges of $4,444 in Rationalization and asset impairment charges. The charge is the result of the Company removing capacity to align itself with current market conditions and improve operating efficiency. | |||||||||||||||||||||
The following tables summarize the activity related to the rationalization liabilities by segment for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||
North America Welding | Europe | Asia | The Harris | Consolidated | |||||||||||||||||
Welding | Pacific | Products | |||||||||||||||||||
Welding | Group | ||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | 173 | $ | — | $ | 82 | $ | 255 | |||||||||||
Payments and other adjustments | (827 | ) | (1,797 | ) | (2,107 | ) | (82 | ) | (4,813 | ) | |||||||||||
Charged to expense | 827 | 3,637 | 3,151 | — | 7,615 | ||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 2,013 | $ | 1,044 | $ | — | $ | 3,057 | |||||||||||
Payments and other adjustments | (586 | ) | (1,343 | ) | (1,510 | ) | — | (3,439 | ) | ||||||||||||
Charged to expense | 1,052 | 1,765 | 841 | — | 3,658 | ||||||||||||||||
Balance at December 31, 2013 | $ | 466 | $ | 2,435 | $ | 375 | $ | — | $ | 3,276 | |||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ' | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ' | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME ("AOCI") | |||||||||||||||||
The following tables set forth the total changes in AOCI by component, net of taxes, for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges | Defined benefit pension plan activity | Currency translation adjustment | Total | ||||||||||||||
Balance at December 31, 2011 | $ | 912 | $ | (255,369 | ) | $ | 6,576 | $ | (247,881 | ) | |||||||
Other comprehensive income (loss) before reclassification | (1,997 | ) | (26,373 | ) | 2 | 19,555 | 3 | (8,815 | ) | ||||||||
Amounts reclassified from AOCI | 1,165 | 1 | 19,898 | 2 | 233 | 3 | 21,296 | ||||||||||
Net current-period other comprehensive income (loss) | (832 | ) | (6,475 | ) | 19,788 | 12,481 | |||||||||||
Balance at December 31, 2012 | $ | 80 | $ | (261,844 | ) | $ | 26,364 | $ | (235,400 | ) | |||||||
Other comprehensive income (loss) before reclassification | (681 | ) | 82,050 | 2 | (19,316 | ) | 3 | 62,053 | |||||||||
Amounts reclassified from AOCI | 970 | 1 | 19,101 | 2 | 1,335 | 3 | 21,406 | ||||||||||
Net current-period other comprehensive income (loss) | 289 | 101,151 | (17,981 | ) | 83,459 | ||||||||||||
Balance at December 31, 2013 | $ | 369 | $ | (160,693 | ) | $ | 8,383 | $ | (151,941 | ) | |||||||
_______________________________________________________________________________ | |||||||||||||||||
1 | During the 2013 period, this AOCI reclassification is a component of Net sales of $619 (net of tax of $99), Cost of goods sold of $418 (net of tax of $295) and SG&A of $(67) with no tax effect; during the 2012 period, the reclassification is a component of Net sales of $931 (net of tax of $157) and Cost of goods sold of $234 (net of tax of $169). (See Note 13 - Derivatives for additional details.) | ||||||||||||||||
2 | This AOCI component is included in the computation of net periodic pension costs (net of tax of $60,556 and $(3,492) during the years ended December 31, 2013 and 2012, respectively). (See Note 11 - Retirement and Postretirement Benefit Plans for additional details.) | ||||||||||||||||
3 | The Other comprehensive income before reclassifications excludes $(1,819) and $(153) attributable to Non-controlling interests in the years ended December 31, 2013 and 2012, respectively. The reclassified AOCI component is included in the computation of Non-controlling interests. (See Consolidated Statements of Equity for additional details.) |
DEBT
DEBT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
DEBT | ' | ||||||||
DEBT | |||||||||
At December 31, 2013 and 2012, debt consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long-term debt | |||||||||
Capital leases due through 2017, interest at 1.12% to 3.63% | $ | 236 | $ | 267 | |||||
Other borrowings due through 2023, interest up to 4.00% | 4,270 | 1,788 | |||||||
4,506 | 2,055 | ||||||||
Less current portion | 715 | 456 | |||||||
Long-term debt, less current portion | 3,791 | 1,599 | |||||||
Short-term debt | |||||||||
Amounts due banks, interest at 11.28% (11.32% in 2012) | 14,581 | 18,220 | |||||||
Current portion long-term debt | 715 | 456 | |||||||
Total short-term debt | 15,296 | 18,676 | |||||||
Total debt | $ | 19,087 | $ | 20,275 | |||||
At December 31, 2013 and 2012, the fair value of long-term debt, including the current portion, was approximately $4,212 and $1,919, respectively, which was determined using available market information and methodologies requiring judgment. Since considerable judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount which could be realized in a current market exchange. | |||||||||
Revolving Credit Agreement | |||||||||
The Company has a line of credit totaling $300,000 through the Amended and Restated Credit Agreement (the “Credit Agreement”), which was entered into on July 26, 2012. The Credit Agreement contains customary affirmative, negative and financial covenants for credit facilities of this type, including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets, transactions with affiliates and a fixed charges coverage ratio and total leverage ratio. As of December 31, 2013, the Company was in compliance with all of its covenants and had no outstanding borrowings under the Credit Agreement. The Credit Agreement has a five-year term and may be increased, subject to certain conditions, by an additional amount up to $100,000. The interest rate on borrowings is based on either LIBOR or the prime rate, plus a spread based on the Company’s leverage ratio, at the Company’s election. | |||||||||
Capital Leases | |||||||||
At December 31, 2013 and 2012, $236 and $267 of capital lease indebtedness was secured by property, plant and equipment, respectively. | |||||||||
Other | |||||||||
Maturities of long-term debt, including payments under capital leases and amounts due banks, for the five years succeeding December 31, 2013 are $15,297 in 2014, $535 in 2015, $446 in 2016, $285 in 2017, $202 in 2018 and $774 thereafter. Total interest paid was $2,864 in 2013, $4,423 in 2012 and $6,979 in 2011. The primary difference between interest expense and interest paid in 2012 and 2011 is the amortization of the gains on terminated interest rate swaps. | |||||||||
The Company's short-term borrowings included in Amounts due banks were $14,581 and $18,220 at December 31, 2013 and 2012, respectively, and represent the borrowings of foreign subsidiaries at weighted average interest rates of 11.3% and 11.3%, respectively. |
STOCK_PLANS
STOCK PLANS | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||
STOCK PLANS | ' | |||||||||||||||||||||
STOCK PLANS | ||||||||||||||||||||||
On April 28, 2006, the shareholders of the Company approved the 2006 Equity and Performance Incentive Plan, as amended ("EPI Plan"), which replaced the 1998 Stock Plan, as amended and restated in May 2003. The EPI Plan provides for the granting of options, appreciation rights, restricted shares, restricted stock units and performance-based awards up to an additional 6,000,000 of the Company's common shares. In addition, on April 28, 2006, the shareholders of the Company approved the 2006 Stock Plan for Non-Employee Directors, as amended ("Director Plan"), which replaced the Stock Option Plan for Non-Employee Directors adopted in 2000. The Director Plan provides for the granting of options, restricted shares and restricted stock units up to an additional 600,000 of the Company's common shares. At December 31, 2013, there were 2,315,239 common shares available for future grant under all plans. | ||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||
The following table summarizes stock option activity for the years ended December 31, 2013, 2012 and 2011, under all Plans: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Options | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Balance at beginning of year | 3,060,944 | $ | 30.98 | 3,632,463 | $ | 26.05 | 3,779,824 | $ | 23.99 | |||||||||||||
Options granted | 273,105 | 70.88 | 412,980 | 47.66 | 459,263 | 35.34 | ||||||||||||||||
Options exercised | (774,783 | ) | 26.2 | (962,029 | ) | 19.52 | (572,795 | ) | 19.82 | |||||||||||||
Options canceled | (106,618 | ) | 40.54 | (22,470 | ) | 24.07 | (33,829 | ) | 26.62 | |||||||||||||
Balance at end of year | 2,452,648 | 36.52 | 3,060,944 | 30.98 | 3,632,463 | 26.05 | ||||||||||||||||
Exercisable at end of year | 1,837,014 | 29.93 | 2,208,455 | 27.19 | 2,677,071 | 23.73 | ||||||||||||||||
Options granted under both the EPI Plan and its predecessor plans may be outstanding for a maximum of 10 years from the date of grant. The majority of options granted vest ratably over a period of three years from the grant date. The exercise prices of all options were equal to the quoted market price of the Company's common shares at the date of grant. The Company issued shares of common stock from treasury upon all exercises of stock options in 2013, 2012 and 2011. | ||||||||||||||||||||||
The Company uses the Black-Scholes option pricing model for estimating fair values of options. In estimating the fair value of options granted, the expected option life is based on the Company's historical experience. The expected volatility is based on historical volatility. The weighted average assumptions for each of the three years ended December 31, 2013 were as follows: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Expected volatility | 32.97 | % | 45.67 | % | 41.92 | % | ||||||||||||||||
Dividend yield | 1.4 | % | 1.66 | % | 1.63 | % | ||||||||||||||||
Risk-free interest rate | 1.52 | % | 0.7 | % | 0.8 | % | ||||||||||||||||
Expected option life (years) | 4.4 | 4.5 | 4.3 | |||||||||||||||||||
Weighted average fair value per option granted during the year | $ | 18.14 | $ | 15.87 | $ | 10.97 | ||||||||||||||||
The following table summarizes non-vested stock options for the year ended December 31, 2013: | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||
Options | Average Fair | |||||||||||||||||||||
Value at Grant | ||||||||||||||||||||||
Date | ||||||||||||||||||||||
Balance at beginning of year | 852,489 | $ | 13.63 | |||||||||||||||||||
Granted | 273,105 | 18.14 | ||||||||||||||||||||
Vested | (410,542 | ) | 12.5 | |||||||||||||||||||
Forfeited | (99,418 | ) | 14.04 | |||||||||||||||||||
Balance at end of year | 615,634 | 16.32 | ||||||||||||||||||||
The aggregate intrinsic value of options outstanding and exercisable which would have been received by the optionees had all awards been exercised at December 31, 2013 was $85,404 and $76,076, respectively. The total intrinsic value of awards exercised during 2013, 2012 and 2011 was $20,297, $18,776 and $10,028, respectively. | ||||||||||||||||||||||
The following table summarizes information about awards outstanding as of December 31, 2013: | ||||||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||||
Exercise Price Range | Number of | Weighted | Number of | Weighted | Weighted | |||||||||||||||||
Stock | Average | Stock | Average | Average | ||||||||||||||||||
Options | Exercise | Options | Exercise | Remaining | ||||||||||||||||||
Price | Price | Life (years) | ||||||||||||||||||||
Under $29.99 | 738,614 | $ | 23.41 | 738,614 | $ | 23.41 | 4.6 | |||||||||||||||
$30.00 - $39.99 | 1,092,456 | 33.2 | 1,001,199 | 33 | 6.2 | |||||||||||||||||
Over $40.00 | 621,578 | 57.93 | 97,201 | 47.85 | 9.4 | |||||||||||||||||
2,452,648 | 1,837,014 | 6.5 | ||||||||||||||||||||
Restricted Share Awards ("RSAs") | ||||||||||||||||||||||
The following table summarizes restricted share award activity for the years ended December 31, 2013, 2012 and 2011, under all Plans: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
Balance at beginning of year | 336,808 | $ | 28.49 | 379,233 | $ | 28.06 | 523,730 | $ | 27.36 | |||||||||||||
Shares granted | 14,464 | 70.88 | 20,099 | 47.81 | 22,779 | 35.55 | ||||||||||||||||
Shares vested* | (224,021 | ) | 25.68 | (62,524 | ) | 32.1 | (159,842 | ) | 26.97 | |||||||||||||
Shares forfeited | (11,935 | ) | 25.76 | — | — | (7,434 | ) | 24.67 | ||||||||||||||
Balance at end of year | 115,316 | 39.55 | 336,808 | 28.49 | 379,233 | 28.06 | ||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||
* | Includes shares vested but not exercisable | |||||||||||||||||||||
RSAs are valued at the quoted market price on the grant date. The majority of RSAs vest over a period of three to five years. The Company issued shares of common stock from treasury upon the granting of RSAs in 2013, 2012 and 2011. All restricted shares issued in 2013, 2012 and 2011, were under the the Director Plan. The remaining weighted average life of all non-vested RSAs is 1.8 years as of December 31, 2013. | ||||||||||||||||||||||
The following table summarizes non-vested restricted share awards for the year ended December 31, 2013: | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
Number of Restricted Shares | Weighted Average Fair Value at Grant Date | |||||||||||||||||||||
Balance at beginning of year | 318,088 | $ | 28.74 | |||||||||||||||||||
Shares granted | 14,464 | 70.88 | ||||||||||||||||||||
Shares vested | (205,301 | ) | 25.8 | |||||||||||||||||||
Shares forfeited | (11,935 | ) | 25.76 | |||||||||||||||||||
Balance at end of year | 115,316 | 39.55 | ||||||||||||||||||||
Restricted Stock Units ("RSUs") | ||||||||||||||||||||||
The following table summarizes restricted stock unit activity for the years ended December 31, 2013, 2012 and 2011, under all Plans: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Units | Weighted | Units | Weighted | Units | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
Balance at beginning of year | 288,669 | $ | 40.83 | 166,519 | $ | 34.55 | — | $ | — | |||||||||||||
Units granted | 69,925 | 67.17 | 133,944 | 47.97 | 166,519 | 34.55 | ||||||||||||||||
Units vested | (33,698 | ) | 39.2 | (10,499 | ) | 33.06 | — | — | ||||||||||||||
Units forfeited | (40,952 | ) | 41.7 | (1,295 | ) | 35.55 | — | — | ||||||||||||||
Balance at end of year | 283,944 | 47.38 | 288,669 | 40.83 | 166,519 | 34.55 | ||||||||||||||||
RSUs are valued at the quoted market price on the grant date. The majority of RSUs vest over a period of three to five years. The Company will issue shares of common stock from treasury upon the vesting of RSUs and any earned dividend equivalents. Conversion of 31,552 RSUs to common stock in 2013 were deferred as part of the 2005 Deferred Compensation Plan for Executives (the "2005 Plan"). As of December 31, 2013, 43,012 RSUs, including related dividend equivalents, have been deferred under the 2005 Plan. These units are reflected within dilutive shares in the calculation of earnings per share. All RSUs issued in 2013, 2012 and 2011, were under the the EPI Plan. The remaining weighted average life of all non-vested RSUs is 4.1 years as of December 31, 2013. | ||||||||||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||||||||
Expense is recognized for all awards of stock-based compensation by allocating the aggregate grant date fair value over the vesting period. No expense is recognized for any stock options, restricted or deferred shares or restricted stock units ultimately forfeited because recipients fail to meet vesting requirements. Total stock-based compensation expense recognized in the Consolidated Statements of Income for 2013, 2012 and 2011 was $9,734, $8,961 and $6,610, respectively. The related tax benefit for 2013, 2012 and 2011 was $3,727, $3,409 and $2,515, respectively. As of December 31, 2013, total unrecognized stock-based compensation expense related to non-vested stock options, restricted shares and restricted stock units was $21,633, which is expected to be recognized over a weighted average period of approximately 3.3 years. | ||||||||||||||||||||||
Lincoln Stock Purchase Plan | ||||||||||||||||||||||
The 1995 Lincoln Stock Purchase Plan provides employees the ability to purchase open market shares on a commission-free basis up to a limit of ten thousand dollars annually. Under this plan, 800,000 shares have been authorized to be purchased. Shares purchased were 4,653 in 2013, 4,908 in 2012 and 4,466 in 2011. |
COMMON_STOCK_REPURCHASE_PROGRA
COMMON STOCK REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2013 | |
COMMON SHARE REPURCHASE PROGRAM | ' |
COMMON STOCK REPURCHASE PROGRAM | ' |
COMMON STOCK REPURCHASE PROGRAM | |
The Company has a share repurchase program for up to 45 million shares of the Company's common stock. At management's discretion, the Company repurchases its common stock from time to time in the open market, depending on market conditions, stock price and other factors. During the year ended December 31, 2013, the Company purchased 2,671,614 shares at an average cost per share of $61.67. As of December 31, 2013, 15,670,759 shares remained available for repurchase under the stock repurchase program. The treasury shares have not been retired. |
RETIREMENT_ANNUITY_AND_GUARANT
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | ' | ||||||||||||||||
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS | ' | ||||||||||||||||
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS | |||||||||||||||||
The Company maintains a number of defined benefit and defined contribution plans to provide retirement benefits for employees. These plans are maintained and contributions are made in accordance with the Employee Retirement Income Security Act of 1974 ("ERISA"), local statutory law or as determined by the Board of Directors. The plans generally provide benefits based upon years of service and compensation. Pension plans are funded except for a domestic non-qualified pension plan for certain key employees and certain foreign plans. The Company uses a December 31 measurement date for its plans. | |||||||||||||||||
The Company does not have, and does not provide for, any postretirement or postemployment benefits other than pensions and certain non-U.S. statutory termination benefits. | |||||||||||||||||
Defined Benefit Plans | |||||||||||||||||
Contributions are made in amounts sufficient to fund current service costs on a current basis and to fund past service costs, if any, over various amortization periods. | |||||||||||||||||
Obligations and Funded Status | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Change in benefit obligations | |||||||||||||||||
Benefit obligations at beginning of year | $ | 1,033,725 | $ | 991,979 | |||||||||||||
Service cost | 23,188 | 21,538 | |||||||||||||||
Interest cost | 37,225 | 41,584 | |||||||||||||||
Plan participants' contributions | 221 | 334 | |||||||||||||||
Plan amendments | 1,623 | (3,681 | ) | ||||||||||||||
Actuarial (gain) loss | (91,851 | ) | 70,015 | ||||||||||||||
Benefits paid | (59,296 | ) | (86,722 | ) | |||||||||||||
Settlement/curtailment | (1,390 | ) | (3,946 | ) | |||||||||||||
Currency translation | (2,003 | ) | 2,624 | ||||||||||||||
Benefit obligations at end of year | 941,442 | 1,033,725 | |||||||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets at beginning of year | 813,897 | 749,456 | |||||||||||||||
Actual return on plan assets | 101,044 | 83,156 | |||||||||||||||
Employer contributions | 85,456 | 68,029 | |||||||||||||||
Plan participants' contributions | 221 | 334 | |||||||||||||||
Benefits paid | (57,644 | ) | (85,238 | ) | |||||||||||||
Settlement | (1,390 | ) | (3,798 | ) | |||||||||||||
Currency translation | (1,589 | ) | 1,958 | ||||||||||||||
Fair value of plan assets at end of year | 939,995 | 813,897 | |||||||||||||||
Funded status at end of year | (1,447 | ) | (219,828 | ) | |||||||||||||
Unrecognized actuarial net loss | 258,781 | 422,042 | |||||||||||||||
Unrecognized prior service cost | (2,547 | ) | (4,101 | ) | |||||||||||||
Unrecognized transition assets, net | 26 | 26 | |||||||||||||||
Net amount recognized | $ | 254,813 | $ | 198,139 | |||||||||||||
The actuarial gain arising during 2013 was primarily attributable to a higher discount rate. In 2012, the Company's U.S. defined benefit plans were amended to allow participants, including those with deferred vested pension benefits, additional payment options including a lump sum and a five year payment option. The decrease in benefits paid in 2013 primarily reflect the disbursements related to deferred vested participants taking lump sum payment options in the prior period. | |||||||||||||||||
The after-tax amounts of unrecognized actuarial net loss, prior service costs and transition assets included in Accumulated other comprehensive loss at December 31, 2013 were $162,983, $(2,307) and $17, respectively. The actuarial loss represents changes in the estimated obligation not yet recognized in the Consolidated Income Statement. The pre-tax amounts of unrecognized actuarial net loss, prior service credits and transition obligations expected to be recognized as components of net periodic benefit cost during 2014 are $16,104, $(618) and $4, respectively. | |||||||||||||||||
Amounts Recognized in Consolidated Balance Sheets | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Prepaid pensions | $ | 36,116 | $ | — | |||||||||||||
Accrued pension liability, current | (10,564 | ) | (3,639 | ) | |||||||||||||
Accrued pension liability, long-term | (26,999 | ) | (216,189 | ) | |||||||||||||
Accumulated other comprehensive loss, excluding tax effects | 256,260 | 417,967 | |||||||||||||||
Net amount recognized in the balance sheets | $ | 254,813 | $ | 198,139 | |||||||||||||
Components of Pension Cost for Defined Benefit Plans | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Service cost | $ | 23,188 | $ | 21,538 | $ | 17,331 | |||||||||||
Interest cost | 37,225 | 41,584 | 44,161 | ||||||||||||||
Expected return on plan assets | (61,244 | ) | (58,754 | ) | (57,405 | ) | |||||||||||
Amortization of prior service cost | (613 | ) | (90 | ) | (62 | ) | |||||||||||
Amortization of net loss | 30,929 | 31,085 | 21,816 | ||||||||||||||
Settlement/curtailment loss | 423 | 895 | 529 | ||||||||||||||
Pension cost for defined benefit plans | $ | 29,908 | $ | 36,258 | $ | 26,370 | |||||||||||
The Company's defined benefit plans costs decreased in 2013 primarily as a result of a lower interest cost and a higher expected return on plan assets. | |||||||||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
U.S. pension plans | |||||||||||||||||
Projected benefit obligation | $ | 37,355 | $ | 956,837 | |||||||||||||
Accumulated benefit obligation | 33,416 | 905,541 | |||||||||||||||
Fair value of plan assets | 10,028 | 755,491 | |||||||||||||||
Non-U.S. pension plans | |||||||||||||||||
Projected benefit obligation | $ | 49,990 | $ | 76,884 | |||||||||||||
Accumulated benefit obligation | 42,593 | 70,492 | |||||||||||||||
Fair value of plan assets | 39,753 | 58,403 | |||||||||||||||
The total accumulated benefit obligation for all plans was $891,397 as of December 31, 2013 and $976,033 as of December 31, 2012. | |||||||||||||||||
Contributions to Plans | |||||||||||||||||
The Company expects to contribute approximately $20,000 to its defined benefit plans in the United States in 2014. The actual amounts to be contributed in 2014 will be determined at the Company's discretion. | |||||||||||||||||
Benefit Payments for Plans | |||||||||||||||||
Benefits expected to be paid for the U.S. plans are as follows: | |||||||||||||||||
Estimated Payments | |||||||||||||||||
2014 | $ | 61,755 | |||||||||||||||
2015 | 53,992 | ||||||||||||||||
2016 | 61,654 | ||||||||||||||||
2017 | 59,570 | ||||||||||||||||
2018 | 58,422 | ||||||||||||||||
2019 through 2023 | 307,094 | ||||||||||||||||
Assumptions | |||||||||||||||||
Weighted average assumptions used to measure the benefit obligation for the Company's significant defined benefit plans as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rate | 4.7 | % | 3.8 | % | |||||||||||||
Rate of increase in compensation | 4.2 | % | 4 | % | |||||||||||||
Weighted average assumptions used to measure the net periodic benefit cost for the Company's significant defined benefit plans for each of the three years ended December 31, 2013 were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 3.8 | % | 4.2 | % | 5.3 | % | |||||||||||
Rate of increase in compensation | 4.1 | % | 4 | % | 4 | % | |||||||||||
Expected return on plan assets | 7.4 | % | 7.7 | % | 7.9 | % | |||||||||||
To develop the discount rate assumption to be used for U.S. plans, the Company refers to the yield derived from matching projected pension payments with maturities of a portfolio of available non-callable bonds rated AA- or better. The expected long-term rate of return assumption is based on the weighted average expected return of the various asset classes in the plans' portfolio and the targeted allocation of plan assets. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. The rate of compensation increase is determined by the Company based upon annual reviews. | |||||||||||||||||
Pension Plans' Assets | |||||||||||||||||
The primary objective of the pension plans' investment policy is to ensure sufficient assets are available to provide benefit obligations when such obligations mature. Investment management practices must comply with ERISA or any other applicable regulations and rulings. The overall investment strategy for the defined benefit pension plans' assets is to achieve a rate of return over a normal business cycle relative to an acceptable level of risk that is consistent with the long-term objectives of the portfolio. The target allocation for plan assets is 60% to 70% equity securities and 30% to 40% debt securities. | |||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans' assets as of December 31, 2013: | |||||||||||||||||
Pension Plans' Assets at Fair Value as of December 31, 2013 | |||||||||||||||||
Quoted Prices | Significant Other | Significant | Total | ||||||||||||||
in Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Common trusts and 103-12 investments (1) | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 4,686 | $ | — | $ | 4,686 | |||||||||
Common trusts and 103-12 investments | — | 902,746 | — | 902,746 | |||||||||||||
Private equity funds (2) | — | — | 32,563 | 32,563 | |||||||||||||
Total assets at fair value | $ | — | $ | 907,432 | $ | 32,563 | $ | 939,995 | |||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans' assets as of December 31, 2012: | |||||||||||||||||
Pension Plans' Assets at Fair Value as of December 31, 2012 | |||||||||||||||||
Quoted Prices | Significant Other | Significant | Total | ||||||||||||||
in Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Corporate stock (3) | $ | 107,763 | $ | — | $ | — | $ | 107,763 | |||||||||
Cash and cash equivalents | 5,170 | — | — | 5,170 | |||||||||||||
Corporate and other obligations (4) | — | 412 | — | 412 | |||||||||||||
Common trusts and 103-12 investments (1) | — | 673,469 | — | 673,469 | |||||||||||||
Private equity funds (2) | — | — | 27,083 | 27,083 | |||||||||||||
Total assets at fair value | $ | 112,933 | $ | 673,881 | $ | 27,083 | $ | 813,897 | |||||||||
_______________________________________________________________________________ | |||||||||||||||||
-1 | Common trusts and 103-12 investments are comprised of a number of investment funds that invest in a diverse portfolio of assets including equity securities, corporate and governmental bonds, equity and credit indexes, and money markets. Trusts are valued at the net asset value ("NAV") as determined by their custodian. NAV represents the accumulation of the unadjusted quoted close prices on the reporting date for the underlying investments divided by the total shares outstanding at the reporting dates. | ||||||||||||||||
-2 | Private equity funds consist of four funds seeking capital appreciation by investing in private equity investment partnerships and venture capital companies. Funds are comprised of unrestricted and restricted publicly traded securities and privately held securities. Unrestricted securities are valued at the closing market price on the reporting date. Restricted securities may be valued at a discount from such closing public market price, depending on facts and circumstances. Privately held securities are valued at fair value as determined by the fund directors and general partners. | ||||||||||||||||
-3 | This investment category includes publicly traded equity investments directly held by the plans. Investments are valued at the unadjusted quoted close prices reported on the reporting date. | ||||||||||||||||
-4 | This investment category is composed of publicly traded bonds and asset backed securities which are valued at the quoted closing market prices on the reporting date. | ||||||||||||||||
The table below sets forth a summary of changes in the fair value of the Level 3 pension plans' assets for the year ended December 31, 2013: | |||||||||||||||||
Private | |||||||||||||||||
Equity | |||||||||||||||||
Funds | |||||||||||||||||
Balance at the beginning of year | $ | 27,083 | |||||||||||||||
Purchases, sales, issuances and settlements | 2,186 | ||||||||||||||||
Realized and unrealized gains | 3,294 | ||||||||||||||||
Balance at the end of year | $ | 32,563 | |||||||||||||||
The amount of total gains during the period attributable to the change in unrealized gains relating to Level 3 net assets still held at the reporting date | $ | 3,035 | |||||||||||||||
Supplemental Executive Retirement Plan | |||||||||||||||||
The Company maintains a domestic unfunded supplemental executive retirement plan ("SERP") under which non-qualified supplemental pension benefits are paid to certain employees in addition to amounts received under the Company's qualified retirement plan which is subject to Internal Revenue Service ("IRS") limitations on covered compensation. The annual cost of this program has been included in the determination of total net pension costs shown above and was $2,329, $2,254 and $2,110 in 2013, 2012 and 2011, respectively. The projected benefit obligation associated with this plan is also included in the pension disclosure shown above and was $22,877, $25,646 and $23,930 at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Defined Contribution Plans | |||||||||||||||||
Substantially all U.S. employees are covered under a 401(k) savings plan in which they may invest 1% or more of eligible compensation, limited to maximum amounts as determined by the IRS. For most participants the plan provides for Company matching contributions of 35% of the first 6% of employee compensation contributed to the plan. | |||||||||||||||||
The plan also includes a feature in which all participants hired after November 1, 1997 receive an annual Company contribution of 2% of their base pay. The plan allowed employees hired before November 1, 1997, at their election, to receive this contribution in exchange for forfeiting certain benefits under the pension plan. In 2006, the plan was amended to include a feature in which all participants receive an annual Company contribution ranging from 4% to 10% of base pay based on years of service. | |||||||||||||||||
The annual costs recognized for defined contribution plans were $10,812, $9,405 and $8,478 in 2013, 2012 and 2011, respectively. | |||||||||||||||||
Multi-Employer Plans | |||||||||||||||||
The Company participates in multi-employer plans for several of its operations in Europe. Costs for these plans are recognized as contributions are funded. The Company's risk of participating in these plans is limited to the annual premium as determined by the plan. The annual costs of these programs were $1,048, $972 and $966 in 2013, 2012 and 2011, respectively. | |||||||||||||||||
Other Benefits | |||||||||||||||||
The Cleveland, Ohio, area operations have a Guaranteed Continuous Employment Plan covering substantially all employees which, in general, provides that the Company will provide work for at least 75% of every standard work week (presently 40 hours). This plan does not guarantee employment when the Company's ability to continue normal operations is seriously restricted by events beyond the control of the Company. The Company has reserved the right to terminate this plan effective at the end of a calendar year by giving notice of such termination not less than six months prior to the end of such year. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
INCOME TAXES | |||||||||||||
The components of income before income taxes for the three years ended December 31, 2013 were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. | $ | 281,724 | $ | 243,382 | $ | 204,667 | |||||||
Non-U.S. | 134,717 | 126,188 | 96,664 | ||||||||||
Total | $ | 416,441 | $ | 369,570 | $ | 301,331 | |||||||
The components of income tax expense (benefit) for the three years ended December 31, 2013 were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 58,099 | $ | 72,809 | $ | 42,510 | |||||||
Non-U.S. | 40,348 | 33,510 | 19,970 | ||||||||||
State and local | 8,490 | 8,172 | 6,699 | ||||||||||
106,937 | 114,491 | 69,179 | |||||||||||
Deferred: | |||||||||||||
Federal | 21,946 | (1,673 | ) | 12,140 | |||||||||
Non-U.S. | (5,734 | ) | (750 | ) | 2,768 | ||||||||
State and local | 1,605 | 286 | 231 | ||||||||||
17,817 | (2,137 | ) | 15,139 | ||||||||||
Total | $ | 124,754 | $ | 112,354 | $ | 84,318 | |||||||
The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2013 were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory rate of 35% applied to pre-tax income | $ | 145,754 | $ | 129,350 | $ | 105,466 | |||||||
Effect of state and local income taxes, net of federal tax benefit | 7,124 | 5,598 | 4,585 | ||||||||||
Taxes (less) more than the U.S. tax rate on non-U.S. earnings, including utilization of tax loss carry-forwards, losses with no benefit and changes in non-U.S. valuation allowance | (17,352 | ) | (11,263 | ) | (13,637 | ) | |||||||
Manufacturing deduction | (6,386 | ) | (6,287 | ) | (5,330 | ) | |||||||
U.S. tax cost (benefit) of foreign source income | 995 | (4,766 | ) | 145 | |||||||||
Resolution and adjustments to uncertain tax positions | (313 | ) | (1,493 | ) | (5,103 | ) | |||||||
Other | (5,068 | ) | 1,215 | (1,808 | ) | ||||||||
Total | $ | 124,754 | $ | 112,354 | $ | 84,318 | |||||||
Effective tax rate | 29.96 | % | 30.4 | % | 27.98 | % | |||||||
The 2013 effective tax rate is impacted by the geographic mix of earnings and taxes at lower rates in foreign jurisdictions, including Canada, Mexico, Poland and the U.K., as well as loss utilization in other foreign jurisdictions. Total income tax payments, net of refunds, were $84,567 in 2013, $78,506 in 2012 and $62,600 in 2011. | |||||||||||||
Deferred Taxes | |||||||||||||
Significant components of deferred tax assets and liabilities at December 31, 2013 and 2012, were as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Tax loss and credit carry-forwards | $ | 51,762 | $ | 40,373 | |||||||||
Inventory | 1,277 | 1,328 | |||||||||||
Other accruals | 15,709 | 14,981 | |||||||||||
Employee benefits | 18,909 | 17,904 | |||||||||||
Pension obligations | 4,643 | 82,903 | |||||||||||
Other | 9,828 | 12,686 | |||||||||||
Deferred tax assets, gross | 102,128 | 170,175 | |||||||||||
Valuation allowance | (49,684 | ) | (38,799 | ) | |||||||||
Deferred tax assets, net | 52,444 | 131,376 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | 38,653 | 41,380 | |||||||||||
Intangible assets | 24,014 | 19,545 | |||||||||||
Inventory | 7,311 | 5,783 | |||||||||||
Pension obligations | 7,315 | 2,940 | |||||||||||
Other | 8,777 | 8,769 | |||||||||||
Deferred tax liabilities | 86,070 | 78,417 | |||||||||||
Total Deferred taxes | $ | (33,626 | ) | $ | 52,959 | ||||||||
At December 31, 2013, certain subsidiaries had tax loss carry-forwards of approximately $121,044 that will expire in various years from 2014 through 2030, except for $77,380 for which there is no expiration date. | |||||||||||||
In assessing the realizability of deferred tax assets, the Company assesses whether it is more likely than not that a portion or all of the deferred tax assets will not be realized. The Company considers the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. At December 31, 2013, a valuation allowance of $49,684 was recorded against certain deferred tax assets based on this assessment. The Company believes it is more likely than not that the tax benefit of the remaining net deferred tax assets will be realized. The amount of net deferred tax assets considered realizable could be increased or decreased in the future if the Company's assessment of future taxable income or tax planning strategies changes. | |||||||||||||
The Company does not provide deferred income taxes on unremitted earnings of certain non-U.S. subsidiaries which are deemed permanently reinvested. It is not practicable to calculate the deferred taxes associated with the remittance of these earnings. Deferred income taxes associated with earnings of $8,354 that are not expected to be permanently reinvested were not significant. | |||||||||||||
Unrecognized Tax Benefits | |||||||||||||
Liabilities for unrecognized tax benefits are classified as "Accrued taxes" non-current unless expected to be paid in one year. The Company recognizes interest and penalties related to unrecognized tax benefits in "Income taxes." Current income tax expense included an expense of $492 for the year ended December 31, 2013 and an expense of $893 for the year ended December 31, 2012 for interest and penalties. For those same years, the Company's accrual for interest and penalties related to unrecognized tax benefits totaled $10,257 and $10,295, respectively. | |||||||||||||
The following table summarizes the activity related to unrecognized tax benefits: | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at January 1 | $ | 25,255 | $ | 26,656 | |||||||||
Increase related to current year tax provisions | 1,990 | 3,838 | |||||||||||
Increase related to prior years' tax positions | 208 | 212 | |||||||||||
Increase related to acquisitions | 3,528 | 1,274 | |||||||||||
Decrease related to settlements with taxing authorities | (95 | ) | (940 | ) | |||||||||
Resolution of and other decreases in prior years' tax liabilities | (3,491 | ) | (5,964 | ) | |||||||||
Other | (1,488 | ) | 179 | ||||||||||
Balance at December 31 | $ | 25,907 | $ | 25,255 | |||||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $13,739 at December 31, 2013 and $14,839 at December 31, 2012. | |||||||||||||
The Company files income tax returns in the U.S. and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2003. The Company is currently subject to various U.S. state audits, an Indian tax audit for 2012 - 2013 and an Indonesian tax audit for 2003 and 2005 - 2007. | |||||||||||||
The Company is generally not able to precisely estimate the ultimate settlement amounts or timing until after the close of an audit. The Company evaluates its tax positions and establishes liabilities for uncertain tax positions that may be challenged by local authorities and may not be fully sustained. | |||||||||||||
Unrecognized tax benefits are reviewed on an ongoing basis and are adjusted for changing facts and circumstances, including progress of tax audits and closing of statutes of limitations. Based on information currently available, management believes that additional audit activity could be completed and/or statutes of limitations may close relating to existing unrecognized tax benefits. It is reasonably possible there could be a further reduction of $4,284 in prior years' unrecognized tax benefits in 2014. | |||||||||||||
In July 2012, the Company received a Notice of Reassessment from the Canada Revenue Agency (the “CRA”) for 2004 to 2011, which would disallow the deductibility of inter-company dividends. These adjustments would increase Canadian federal and provincial tax due by $58,824 plus approximately $16,022 of interest, net of tax. The Company disagrees with the position taken by the CRA and believes it is without merit. The Company will vigorously contest the assessment through the Tax Court of Canada. A trial date has not yet been scheduled. | |||||||||||||
In connection with the litigation process, the Company is required to deposit no less than one-half of the tax and interest assessed by the CRA. The Company has elected to deposit the entire amount of the dispute in order to suspend the continuing accrual of a 5% interest charge. Additionally, deposited amounts will earn interest of approximately 1% due upon a favorable outcome. A deposit was made and is recorded as a non-current asset valued at $84,128 as of December 31, 2013. Any Canadian tax ultimately due will be creditable in the parent company's U.S. federal tax return. The Company expects to be able to utilize the full amount of foreign tax credits generated in the statutorily allowed carry-back and carry-forward periods. Accordingly, should the Company not prevail in this dispute, the income statement charge will approximate the deficiency interest, net of tax. | |||||||||||||
The Company believes it will prevail on the merits of the tax position. In accordance with prescribed recognition and measurement thresholds, no income tax accrual has been made for any uncertain tax positions related to the CRA reassessment. An unfavorable resolution of this matter could have a material effect on the Company's financial statements in the quarter in which a judgment is reached. |
DERIVATIVES
DERIVATIVES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||
DERIVATIVES | |||||||||||||||||
The Company uses derivatives to manage exposures to currency exchange rates, interest rates and commodity prices arising in the normal course of business. Derivative contracts to hedge currency and commodity exposures are generally written on a short-term basis but may cover exposures for up to two years while interest rate contracts may cover longer periods consistent with the terms of the underlying debt. The Company does not enter into derivatives for trading or speculative purposes. | |||||||||||||||||
All derivatives are recognized at fair value on the Company's Consolidated Balance Sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. The Company formally documents the relationship of the hedge with the hedged item as well as the risk-management strategy for all designated hedges. Both at inception and on an ongoing basis, the hedging instrument is assessed as to its effectiveness, when applicable. If and when a derivative is determined not to be highly effective as a hedge, the underlying hedged transaction is no longer likely to occur, or the derivative is terminated, hedge accounting is discontinued. The cash flows from settled derivative contracts are recognized in operating activities in the Company's Consolidated Statements of Cash Flows. Hedge ineffectiveness was immaterial for the three years ended December 31, 2013. | |||||||||||||||||
The Company is subject to the credit risk of the counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. The Company manages individual counterparty exposure by monitoring the credit rating of the counterparty and the size of financial commitments and exposures between the Company and the counterparty. None of the concentrations of risk with any individual counterparty was considered significant at December 31, 2013. The Company does not expect any counterparties to fail to meet their obligations. | |||||||||||||||||
Cash flow hedges | |||||||||||||||||
Certain foreign currency forward contracts are qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $36,880 at December 31, 2013 and $39,597 at December 31, 2012. The effective portions of the fair value gains or losses on these cash flow hedges are recognized in Accumulated other comprehensive income ("AOCI") and subsequently reclassified to Cost of goods sold or Sales for hedges of purchases and sales, respectively, as the underlying hedged transactions affected earnings. | |||||||||||||||||
Net investment hedges | |||||||||||||||||
The Company had a foreign currency forward contract that qualified as a designated net investment hedge. No such contract was outstanding as of December 31, 2013. The effective portion of the fair value gain or loss on these net investment hedges were recognized in AOCI and subsequently reclassified to Selling, general and administrative expenses when the underlying hedged investment was liquidated. | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
The Company has certain foreign exchange forward contracts which are not designated as hedges. These derivatives are held as economic hedges of certain balance sheet exposures. The dollar equivalent gross notional amount of these contracts was $186,158 at December 31, 2013 and $189,259 at December 31, 2012. The fair value gains or losses from these contracts are recognized in Selling, general and administrative expenses, offsetting the losses or gains on the exposures being hedged. | |||||||||||||||||
The Company has short-term silver and copper forward contracts with notional amounts of 290,000 troy ounces and 375,000 pounds, respectively, at December 31, 2013 and short-term silver and copper forward contracts with notional amounts of 275,000 troy ounces and 375,000 pounds, respectively, at December 31, 2012. Realized and unrealized gains and losses on these contracts were recognized in Cost of goods sold. | |||||||||||||||||
Fair values of derivative instruments in the Company's Consolidated Balance Sheets follow: | |||||||||||||||||
31-Dec-13 | December 31, 2012 | ||||||||||||||||
Derivatives by hedge designation | Other | Other | Other | Other | |||||||||||||
Current | Current | Current | Current | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Designated as hedging instruments: | |||||||||||||||||
Foreign exchange contracts | $ | 706 | $ | 219 | $ | 352 | $ | 325 | |||||||||
Not designated as hedging instruments: | |||||||||||||||||
Foreign exchange contracts | 766 | 228 | 510 | 902 | |||||||||||||
Commodity contracts | 262 | 47 | 731 | — | |||||||||||||
Total derivatives | $ | 1,734 | $ | 494 | $ | 1,593 | $ | 1,227 | |||||||||
The effects of undesignated derivative instruments on the Company's Consolidated Statements of Income for the years ended December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Derivatives by hedge designation | Classification of gains (losses) | 2013 | 2012 | ||||||||||||||
Not designated as hedges: | |||||||||||||||||
Foreign exchange contracts | Selling, general & administrative expenses | $ | 215 | $ | 3,711 | ||||||||||||
Commodity contracts | Cost of goods sold | 2,882 | (1,117 | ) | |||||||||||||
The effects of designated cash flow hedges on AOCI and the Company's Consolidated Statements of Income for the years ended December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
Total gain recognized in AOCI, net of tax | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts | $ | 369 | $ | 80 | |||||||||||||
The Company expects a gain of $369 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Derivative type | Gain (loss) reclassified from AOCI to: | 2013 | 2012 | ||||||||||||||
Foreign exchange contracts | Sales | $ | 619 | $ | 931 | ||||||||||||
Cost of goods sold | 418 | 234 | |||||||||||||||
Net investment contracts | Selling, general & administrative expenses | (67 | ) | — | |||||||||||||
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
FAIR VALUE | |||||||||||||||||
The following table provides a summary of fair value assets and liabilities as of December 31, 2013 measured at fair value on a recurring basis: | |||||||||||||||||
Description | Balance as of December 31, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets or | (Level 2) | Inputs (Level 3) | |||||||||||||||
Liabilities | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange contracts | $ | 1,472 | $ | — | $ | 1,472 | $ | — | |||||||||
Commodity contracts | 262 | — | 262 | — | |||||||||||||
Total assets | $ | 1,734 | $ | — | $ | 1,734 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | $ | 447 | $ | — | $ | 447 | $ | — | |||||||||
Commodity contracts | 47 | — | 47 | — | |||||||||||||
Contingent consideration | 5,375 | — | — | 5,375 | |||||||||||||
Forward contract | 16,974 | — | — | 16,974 | |||||||||||||
Deferred compensation | 20,132 | — | 20,132 | — | |||||||||||||
Total liabilities | $ | 42,975 | $ | — | $ | 20,626 | $ | 22,349 | |||||||||
The following table provides a summary of fair value assets and liabilities as of December 31, 2012 measured at fair value on a recurring basis: | |||||||||||||||||
Description | Balance as of December 31, 2012 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets or | (Level 2) | Inputs (Level 3) | |||||||||||||||
Liabilities | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange contracts | $ | 862 | $ | — | $ | 862 | $ | — | |||||||||
Commodity contracts | 731 | — | 731 | — | |||||||||||||
Total assets | $ | 1,593 | $ | — | $ | 1,593 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | $ | 1,227 | $ | — | $ | 1,227 | $ | — | |||||||||
Contingent consideration | 4,894 | — | — | 4,894 | |||||||||||||
Deferred compensation | 16,882 | — | 16,882 | — | |||||||||||||
Total liabilities | $ | 23,003 | $ | — | $ | 18,109 | $ | 4,894 | |||||||||
The Company's derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts using Level 2 inputs based on observable spot and forward rates in active markets. The Company measures the fair value of commodity contracts using Level 2 inputs through observable market transactions in active markets provided by financial institutions. During the year ended December 31, 2013, there were no transfers between Levels 1, 2 or 3. | |||||||||||||||||
In connection with an acquisition, the Company recorded a contingent consideration fair valued at $5,375 as of December 31, 2013, which reflects a $481 increase in the liability from December 31, 2012. The contingent consideration is based upon estimated sales for the five-year period ending December 31, 2015 and will be paid in 2016 based on actual sales during the period. The fair value of the contingent consideration is a Level 3 valuation and fair valued using a probability weighted discounted cash flow analysis. | |||||||||||||||||
In connection with an acquisition, the Company obtained a controlling financial interest in the acquired entity and at the same time entered into a contract to obtain the remaining financial interest in the entity over a three-year period. The amount to be paid to obtain the remaining financial interest will be based upon actual financial results of the entity. A liability was recorded for the contract at a fair value of $16,974 as of December 31, 2013. The fair value of the contract is a Level 3 valuation and is based on the present value of the expected future payments. The expected future payments are based on a multiple of forecast earnings and cash flows over the three-year period ending December 31, 2016, present valued utilizing a risk based discount rate. The present value calculations utilized an average discount rate of 16.3% and annual earnings growth rates ranging from 14.8% to 18.8%. | |||||||||||||||||
The deferred compensation liability is the Company's obligation under its executive deferred compensation plan. The Company measures the fair value of the liability using the market values of the participants' underlying investment fund elections. | |||||||||||||||||
The Company has various financial instruments, including cash and cash equivalents, short-and long-term debt and forward contracts. While these financial instruments are subject to concentrations of credit risk, the Company has minimized this risk by entering into arrangements with a number of major banks and financial institutions and investing in several high-quality instruments. The Company does not expect any counterparties to fail to meet their obligations. The fair value of "Cash and cash equivalents," "Accounts receivable," "Amounts due banks" and "Trade accounts payable" approximated book value due to the short-term nature of these instruments at both December 31, 2013 and December 31, 2012. See Note 8 for the fair value estimate of debt. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2013 | |
Inventory Disclosure [Abstract] | ' |
INVENTORY | ' |
INVENTORY | |
For most domestic inventories, cost is determined principally by the LIFO method, and for non-U.S. inventories, cost is determined by the FIFO method. The valuation of LIFO inventories is made at the end of each year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and costs. Because these estimates are subject to many factors beyond management's control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. At December 31, 2013 and 2012, approximately 38% and 34%, respectively, of total inventories were valued using the LIFO method. The excess of current cost over LIFO cost was $70,882 at December 31, 2013 and $72,173 at December 31, 2012. |
LEASES
LEASES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
LEASES | ' | ||||||||
LEASES | |||||||||
The Company leases sales offices, warehouses and distribution centers, transportation equipment, office equipment and information technology equipment. Such leases, some of which are noncancelable and, in many cases, include renewals, expire at various dates. The Company pays most insurance, maintenance and taxes relating to leased assets. Rental expense was $18,642 in 2013, $17,751 in 2012 and $15,221 in 2011. | |||||||||
At December 31, 2013, total future minimum lease payments for noncancelable operating leases were $13,263 in 2014, $10,391 in 2015, $8,240 in 2016, $5,637 in 2017, $4,071 in 2018 and $6,568 thereafter. | |||||||||
The following table summarizes assets held under capital leases and included in property, plant and equipment: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Buildings | $ | 461 | $ | 441 | |||||
Machinery and equipment | 110 | 209 | |||||||
Less: accumulated depreciation | (100 | ) | (163 | ) | |||||
Net capital leases | $ | 471 | $ | 487 | |||||
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
The Company, like other manufacturers, is subject from time to time to a variety of civil and administrative proceedings arising in the ordinary course of business. Such claims and litigation include, without limitation, product liability claims and health, safety and environmental claims, some of which relate to cases alleging asbestos induced illnesses. The claimants in the asbestos cases seek compensatory and punitive damages, in most cases for unspecified amounts. The Company believes it has meritorious defenses to these claims and intends to contest such suits vigorously. | |
The Company's accrual for contingent liabilities was $2,735 as of December 31, 2013 and $5,636 as of December 31, 2012. The accrual is included in Other current liabilities. | |
The Company accrues its best estimate of the probable costs, after a review of the facts with management and counsel and taking into account past experience. If an unfavorable outcome is determined to be reasonably possible but not probable, or if the amount of loss cannot be reasonably estimated, disclosure is provided for material claims or litigation. Many of the current cases are in differing procedural stages and information on the circumstances of each claimant, which forms the basis for judgments as to the validity or ultimate disposition of such actions, varies greatly. Therefore, in many situations a range of possible losses cannot be made. Reserves are adjusted as facts and circumstances change and related management assessments of the underlying merits and the likelihood of outcomes change. Moreover, reserves only cover identified and/or asserted claims. Future claims could, therefore, give rise to increases to such reserves. | |
Based on the Company's historical experience in litigating product liability claims, including a significant number of dismissals, summary judgments and defense verdicts in many cases and immaterial settlement amounts, as well as the Company's current assessment of the underlying merits of the claims and applicable insurance, the Company believes resolution of these claims and proceedings, individually or in the aggregate, will not have a material effect on the Company's consolidated financial statements. |
PRODUCT_WARRANTY_COSTS
PRODUCT WARRANTY COSTS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||||||
PRODUCT WARRANTY COSTS | ' | ||||||||||||
PRODUCT WARRANTY COSTS | |||||||||||||
The changes in product warranty accruals for 2013, 2012 and 2011 were as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 15,304 | $ | 15,781 | $ | 16,879 | |||||||
Accruals for warranties | 12,786 | 10,872 | 10,395 | ||||||||||
Settlements | (12,794 | ) | (11,477 | ) | (11,260 | ) | |||||||
Foreign currency translation | (116 | ) | 128 | (233 | ) | ||||||||
Balance at end of year | $ | 15,180 | $ | 15,304 | $ | 15,781 | |||||||
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 718,573 | $ | 727,432 | $ | 691,875 | $ | 714,791 | |||||||||
Gross profit | 226,572 | 240,338 | 232,697 | 243,047 | |||||||||||||
Income before income taxes | 90,679 | 106,534 | 97,840 | 121,388 | |||||||||||||
Net income | 66,806 | 72,606 | 66,044 | 88,324 | |||||||||||||
Basic earnings per share | $ | 0.81 | $ | 0.88 | $ | 0.81 | $ | 1.09 | |||||||||
Diluted earnings per share | $ | 0.8 | $ | 0.87 | $ | 0.8 | $ | 1.07 | |||||||||
2012 | |||||||||||||||||
Net sales | $ | 727,122 | $ | 744,045 | $ | 697,552 | $ | 684,648 | |||||||||
Gross profit | 215,265 | 224,997 | 213,362 | 213,032 | |||||||||||||
Income before income taxes | 92,919 | 98,157 | 90,889 | 87,605 | |||||||||||||
Net income | 64,243 | 66,319 | 64,765 | 62,084 | |||||||||||||
Basic earnings per share | $ | 0.77 | $ | 0.8 | $ | 0.78 | $ | 0.75 | |||||||||
Diluted earnings per share | $ | 0.76 | $ | 0.79 | $ | 0.77 | $ | 0.74 | |||||||||
The quarter ended December 31, 2013 includes rationalization and impairment net charges of $259 ($223 after-tax) primarily related to employee severance and other costs associated with the consolidation of manufacturing operations in North America Welding, Europe Welding and Asia Pacific Welding segments and a charge of $705 related to a loss on the sale of land in the Asia Pacific Welding segment. Associated with the loss on the sale of land is a charge of $47 attributable to non-controlling interests. | |||||||||||||||||
The quarter ended September 30, 2013 includes rationalization and asset impairment net charges of $1,627 ($1,595 after-tax) primarily related to employee severance and other costs associated with the consolidation of manufacturing operations in North America Welding, Europe Welding and Asia Pacific Welding segments and a charge of $4,675 ($4,503 after-tax) related to impairment of long-lived assets in the Asia Pacific Welding segment. Associated with impairment of long-lived assets is a charge of $1,021 attributable to non-controlling interests. | |||||||||||||||||
The quarter ended June 30, 2013 includes rationalization and asset impairment net charges of $851 ($579 after-tax) primarily related to employee severance and other costs associated with the consolidation of manufacturing operations in North America Welding, Europe Welding and Asia Pacific Welding segments and charges of $2,538 related to devaluation of Venezuelan currency in the South America Welding segment. | |||||||||||||||||
The quarter ended March 31, 2013 includes rationalization and asset impairment net charges of $1,051 ($673 after-tax) primarily related to employee severance and other costs associated with the consolidation of manufacturing operations in North America Welding, Europe Welding and Asia Pacific Welding segments and charges of $9,660 related to devaluation of Venezuelan currency in the South America Welding segment. | |||||||||||||||||
The quarter ended December 31, 2012 includes rationalization and asset impairment net charges of $5,037 ($3,823 after-tax) primarily related to employee severance and other costs associated with the consolidation of manufacturing operations in North America Welding, Europe Welding and Asia Pacific Welding segments. | |||||||||||||||||
The quarter ended September 30, 2012 includes rationalization and asset impairment net charges of $3,059 ($2,704 after-tax) primarily related to employee severance and other costs associated with the consolidation of manufacturing operations in North America Welding, Europe Welding and Asia Pacific Welding segments. | |||||||||||||||||
The quarter ended June 30, 2012 includes rationalization net charges of $1,258 ($915 after-tax) primarily related to employee severance and other costs associated with the consolidation of manufacturing operations in North America Welding, Europe Welding and Asia Pacific Welding segments and a charge of $1,381 ($906 after-tax) related to a change in Venezuelan labor law, which provides for increased employee severance obligations in the South America Welding segment. | |||||||||||||||||
The quarterly earnings per share ("EPS") amounts are each calculated independently. Therefore, the sum of the quarterly EPS amounts may not equal the annual totals. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||||||
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
LINCOLN ELECTRIC HOLDINGS, INC. | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance at | Charged to | -1 | -2 | Balance at End of Period | ||||||||||||||||
Beginning | Costs and | Charged to | Deductions | ||||||||||||||||||
of Period | Expenses | Other | |||||||||||||||||||
Accounts | |||||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||
Year Ended December 31, 2013 | $ | 8,654 | $ | 2,671 | $ | 49 | $ | 2,976 | $ | 8,398 | |||||||||||
Year Ended December 31, 2012 | 7,079 | 3,368 | 68 | 1,861 | 8,654 | ||||||||||||||||
Year Ended December 31, 2011 | 7,855 | 2,173 | (303 | ) | 2,646 | 7,079 | |||||||||||||||
-1 | Currency translation adjustment. | ||||||||||||||||||||
-2 | Uncollectible accounts written-off, net of recoveries. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The consolidated financial statements include the accounts of Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest (the "Company") after elimination of all inter-company accounts, transactions and profits. | |||
Translation of Foreign Currencies | ' | ||
Translation of Foreign Currencies | |||
Asset and liability accounts are translated into U.S. dollars using exchange rates in effect at the dates of the Consolidated Balance Sheets; revenue and expense accounts are translated at average monthly exchange rates. Translation adjustments are reflected as a component of Total equity. For subsidiaries operating in highly inflationary economies, both historical and current exchange rates are used in translating balance sheet accounts and translation adjustments are included in Net income. | |||
The translation of assets and liabilities originally denominated in foreign currencies into U.S. dollars is for consolidation purposes, and does not necessarily indicate that the Company could realize or settle the reported value of those assets and liabilities in U.S. dollars. Additionally, such a translation does not necessarily indicate that the Company could return or distribute the reported U.S. dollar value of the net equity of its foreign operations to shareholders. | |||
Cash Equivalents | ' | ||
Cash Equivalents | |||
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||
Accounts Receivable | ' | ||
Accounts Receivable | |||
The Company maintains an allowance for doubtful accounts for estimated losses from the failure of its customers to make required payments for products delivered. The Company estimates this allowance based on the age of the related receivable, knowledge of the financial condition of customers, review of historical receivables and reserve trends and other pertinent information. If the financial condition of customers deteriorates or an unfavorable trend in receivable collections is experienced in the future, additional allowances may be required. | |||
Inventories | ' | ||
Inventories | |||
Inventories are valued at the lower of cost or market. Fixed manufacturing overhead costs are allocated to inventory based on normal production capacity and abnormal manufacturing costs are recognized as period costs. For most domestic inventories, cost is determined principally by the last-in, first-out ("LIFO") method, and for non-U.S. inventories, cost is determined by the first-in, first-out ("FIFO") method. | |||
Reserves are maintained for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. | |||
Equity Investments | ' | ||
Equity Investments | |||
Investments in businesses in which the Company does not have a controlling interest and holds between a 20% and 50% ownership interest are accounted for using the equity method of accounting. The Company's 50% ownership interest in equity investments includes investments in Turkey and Chile. | |||
Property, Plant and Equipment | ' | ||
Property, Plant and Equipment | |||
Property, plant and equipment are stated at cost and include improvements which significantly increase capacities or extend the useful lives of existing plant and equipment. Depreciation and amortization are computed using a straight-line method over useful lives ranging from three to 20 years for machinery, tools and equipment, and up to 50 years for buildings. Net gains or losses related to asset dispositions are recognized in earnings in the period in which dispositions occur. | |||
Routine maintenance, repairs and replacements are expensed as incurred. The Company capitalizes interest costs associated with long-term construction in progress. | |||
Goodwill and Intangibles | ' | ||
Goodwill and Intangibles | |||
Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets acquired. Intangible assets other than goodwill are recorded at fair value at the time acquired or at cost, if applicable. Intangible assets that do not have indefinite lives are amortized in line with the pattern in which the economic benefits of the intangible asset are consumed. If the pattern of economic benefit cannot be reliably determined, the intangible assets are amortized on a straight-line basis over the shorter of the legal or estimated life. | |||
Goodwill and indefinite-lived intangibles assets are not amortized, but are tested for impairment in the fourth quarter using the same dates each year or more frequently if changes in circumstances or the occurrence of events indicate potential impairment. The fair value of each indefinite-lived intangible asset is compared to its carrying value and an impairment charge is recorded if the carrying value exceeds the fair value. Goodwill is tested by comparing the fair value of each reporting unit with its carrying value. If the carrying value of the reporting unit exceeds its fair value, the implied value of goodwill is compared to its carrying value and impairment is recognized to the extent that the carrying value exceeds the implied fair value. | |||
Fair values are determined using established business valuation multiples and models developed by the Company that incorporate allocations of certain assets and cash flows among reporting units, estimates of market participant assumptions of future cash flows, future growth rates and the applicable discount rates to value estimated cash flows. Changes in economic and operating conditions impacting these assumptions could result in asset impairments in future periods. | |||
Long-Lived Assets | ' | ||
Long-Lived Assets | |||
The Company evaluates whether current facts or circumstances indicate that the carrying value of its depreciable long-lived assets to be held and used may not be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to the carrying value to determine whether impairment exists. If an asset is determined to be impaired, a loss is recognized to the extent that carrying value exceeds fair value. Fair value is measured based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. | |||
Fair Value Measurements | ' | ||
Fair Value Measurements | |||
Financial assets and liabilities, such as the Company's defined benefit pension plan assets and derivative contracts, are valued at fair value using the market and income valuation approaches. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses the market approach to value similar assets and liabilities in active markets and the income approach that consists of discounted cash flow models that take into account the present value of future cash flows under the terms of the contracts using current market information as of the reporting date. The following hierarchy is used to classify the inputs used to measure fair value: | |||
Level 1 | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. | ||
Level 2 | Inputs to the valuation methodology include: | ||
• Quoted prices for similar assets or liabilities in active markets; | |||
• Quoted prices for identical or similar assets or liabilities in inactive markets; | |||
• Inputs other than quoted prices that are observable for the asset or liability; and | |||
• Inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||
If the asset or liability has a specific (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. | |||
Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||
Product Warranties | ' | ||
Product Warranties | |||
The Company accrues for product warranty claims based on historical experience and the expected material and labor costs to provide warranty service. Warranty services are provided for periods up to three years from the date of sale. The accrual for product warranty claims is included in "Accrued expenses." | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
Substantially all of the Company's revenues are recognized when the risks and rewards of ownership and title to the product have transferred to the customer which generally occurs at point of shipment. The Company recognizes any discounts, credits, returns, rebates and incentive programs based on reasonable estimates as a reduction of Sales to arrive at Net sales at the same time the related revenue is recorded. | |||
For contracts accounted for under the percentage of completion method, revenue recognition is based upon the ratio of costs incurred to date compared with estimated total costs to complete. The cumulative impact of revisions to total estimated costs is reflected in the period of the change, including anticipated losses. | |||
Distribution Costs | ' | ||
Distribution Costs | |||
Distribution costs, including warehousing and freight related to product shipments, are included in Cost of goods sold. | |||
Stock-Based Compensation | ' | ||
Stock-Based Compensation | |||
Expense is recognized for all awards of stock-based compensation by allocating the aggregate grant date fair value over the vesting period. No expense is recognized for any stock options, restricted or deferred shares or restricted stock units ultimately forfeited because the recipients fail to meet vesting requirements. | |||
Common stock issuable upon the exercise of employee stock options is excluded from the calculation of diluted earnings per share when the calculation of option equivalent shares is anti-dilutive. | |||
Financial Instruments | ' | ||
Financial Instruments | |||
The Company uses forward contracts to hedge exposures to commodity prices and exchange rate fluctuations on certain purchase and sales transactions, balance sheet and net investment exposures. Contracts are generally written on a short-term basis but may cover exposures for up to two years and are not held for trading or speculative purposes. The Company uses interest rate swaps from time to time to hedge changes in the fair value of debt. The Company recognizes derivative instruments as either assets or liabilities at fair value. The accounting for changes in the fair value of derivative instruments depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. | |||
For derivative instruments that qualify as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or a liability), the gain or loss on the derivative instrument, as well as the offsetting loss or gain on the hedged item are recognized in earnings. For derivative instruments that qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows), the effective portion of the unrealized gain or loss on the derivative instrument is reported as a component of Accumulated other comprehensive loss with offsetting amounts recorded as Other current assets, Other non-current assets, Other current liabilities or Other long-term liabilities depending on the position and the duration of the contract. At settlement, the realized gain or loss is reflected in earnings in the same period or periods during which the hedged transaction affects earnings. Any remaining gain or loss on the derivative instrument is recognized in earnings. For derivative instruments not designated as hedges, the gain or loss from changes in the fair value of the instruments is recognized in earnings. | |||
Research and Development | ' | ||
Research and Development | |||
Research and development costs are charged to Selling, general & administrative expenses as incurred and totaled $42,126, $37,305 and $32,834 in 2013, 2012 and 2011, respectively. | |||
Bonus | ' | ||
Bonus | |||
Included in Selling, general & administrative expenses are the costs related to the Company's discretionary employee bonus programs, which for certain U.S.- based employees are net of hospitalization costs. | |||
Income Taxes | ' | ||
Income Taxes | |||
Deferred income taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carry-forwards. In assessing the realizability of deferred tax assets, the Company assesses whether it is more likely than not that a portion or all of the deferred tax assets will not be realized. | |||
Estimates | ' | ||
Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in certain circumstances that affect the amounts reported in the accompanying consolidated financial statements and notes. Actual results could differ from these estimates. | |||
Reclassification | ' | ||
Reclassification | |||
Certain reclassifications have been made to prior year financial statements to conform to current year classifications. | |||
Acquisitions | ' | ||
Acquired companies are included in the Company's consolidated financial statements as of the date of acquisition. | |||
Segments | ' | ||
The Company's primary business is the design and manufacture of arc welding and cutting products, manufacturing a broad line of arc welding equipment, consumable welding products and other welding and cutting products. The Company also has a leading global position in the brazing and soldering alloys market. The Company has aligned its business units into five operating segments to enhance the utilization of the Company's worldwide resources and global end user and sourcing initiatives. The operating segments consist of North America Welding, Europe Welding, Asia Pacific Welding, South America Welding and The Harris Products Group. The North America Welding segment includes welding operations in the United States, Canada and Mexico. The Europe Welding segment includes welding operations in Europe, Russia, Africa and the Middle East. The other two welding segments include welding operations in Asia Pacific and South America, respectively. The fifth segment, The Harris Products Group, includes the Company's global cutting, soldering and brazing businesses as well as the retail business in the United States. | |||
Segment performance is measured and resources are allocated based on a number of factors, the primary profit measure being earnings before interest and income taxes ("EBIT"), as adjusted. Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets. The accounting principles applied at the operating segment level are generally the same as those applied at the consolidated financial statement level with the exception of LIFO. Segment assets include inventories measured on a FIFO basis while consolidated inventories are reported on a LIFO basis. Segment and consolidated income before interest and income taxes are reported on a LIFO basis. At December 31, 2013, 2012 and 2011, approximately 38%, 34% and 31%, respectively, of total inventories were valued using the LIFO method. LIFO is used for certain domestic inventories included in the North America Welding segment. Inter-segment sales are recorded at agreed upon prices that approximate arm's length prices and are eliminated in consolidation. Corporate-level expenses are allocated to the operating segments on a basis that management believes to be reasonable. Certain corporate-level expenses may not be allocated to the operating segments and are reported as Corporate/Eliminations. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Computation of basic and diluted earnings per share | ' | |||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 293,780 | $ | 257,411 | $ | 217,186 | ||||||
Denominator: | ||||||||||||
Basic weighted average shares outstanding | 81,978 | 83,087 | 83,681 | |||||||||
Effect of dilutive securities - Stock options and awards | 1,064 | 1,088 | 1,027 | |||||||||
Diluted weighted average shares outstanding | 83,042 | 84,175 | 84,708 | |||||||||
Basic earnings per share | $ | 3.58 | $ | 3.1 | $ | 2.6 | ||||||
Diluted earnings per share | $ | 3.54 | $ | 3.06 | $ | 2.56 | ||||||
GOODWILL_AND_INTANGIBLES_Table
GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill by reportable segment | ' | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill by reportable segments for the years ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
North | Europe | Asia | South | The Harris | Consolidated | ||||||||||||||||||||
America | Welding | Pacific | America | Products | |||||||||||||||||||||
Welding | Welding | Welding | Group | ||||||||||||||||||||||
Balance at December 31, 2011 | $ | 18,514 | $ | 23,867 | $ | 5,208 | $ | 561 | $ | 16,951 | $ | 65,101 | |||||||||||||
Additions and adjustments | 67,740 | 66 | — | — | (1,109 | ) | 66,697 | ||||||||||||||||||
Foreign currency translation | 23 | 1,424 | 40 | 53 | (435 | ) | 1,105 | ||||||||||||||||||
Balance as of December 31, 2012 | 86,277 | 25,357 | 5,248 | 614 | 15,407 | 132,903 | |||||||||||||||||||
Additions and adjustments | 44,446 | — | — | — | (1,027 | ) | 43,419 | ||||||||||||||||||
Foreign currency translation | -284 | (927 | ) | 111 | (52 | ) | (455 | ) | (1,607 | ) | |||||||||||||||
Balance as of December 31, 2013 | $ | 130,439 | $ | 24,430 | $ | 5,359 | $ | 562 | $ | 13,925 | $ | 174,715 | |||||||||||||
Schedule of gross and net intangible assets other than goodwill by asset class | ' | ||||||||||||||||||||||||
Gross and net intangible assets other than goodwill by asset class as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Weighted | Gross | Accumulated | Indefinite | Total Intangible, | |||||||||||||||||||||
Average Life | Amount | Amortization | Lived Assets | Net | |||||||||||||||||||||
Trademarks and trade names | 12 | $ | 38,566 | $ | 11,898 | $ | 18,310 | $ | 44,978 | ||||||||||||||||
Customer relationships | 14 | 74,935 | 16,837 | — | 58,098 | ||||||||||||||||||||
Patents | 20 | 23,861 | 6,205 | — | 17,656 | ||||||||||||||||||||
Other | 14 | 49,578 | 23,298 | — | 26,280 | ||||||||||||||||||||
Total | $ | 186,940 | $ | 58,238 | $ | 18,310 | $ | 147,012 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Gross | Accumulated | Indefinite | Total Intangible, | ||||||||||||||||||||||
Amount | Amortization | Lived Assets | Net | ||||||||||||||||||||||
Trademarks and trade names | $ | 30,611 | $ | 9,493 | $ | 18,276 | $ | 39,394 | |||||||||||||||||
Customer relationships | 63,906 | 12,099 | — | 51,807 | |||||||||||||||||||||
Patents | 20,882 | 5,103 | — | 15,779 | |||||||||||||||||||||
Other | 44,769 | 18,847 | — | 25,922 | |||||||||||||||||||||
Total | $ | 160,168 | $ | 45,542 | $ | 18,276 | $ | 132,902 | |||||||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of financial information for the reportable segments | ' | |||||||||||||||||||||||||||
Financial information for the reportable segments follows: | ||||||||||||||||||||||||||||
North | Europe | Asia | South | The Harris | Corporate / | Consolidated | ||||||||||||||||||||||
America | Welding | Pacific | America | Products | Eliminations | |||||||||||||||||||||||
Welding | Welding | Welding | Group | |||||||||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Net sales | $ | 1,652,769 | $ | 429,548 | $ | 266,282 | $ | 195,895 | $ | 308,177 | $ | — | $ | 2,852,671 | ||||||||||||||
Inter-segment sales | 127,254 | 19,911 | 14,906 | 233 | 9,605 | (171,909 | ) | $ | — | |||||||||||||||||||
Total | $ | 1,780,023 | $ | 449,459 | $ | 281,188 | $ | 196,128 | $ | 317,782 | $ | (171,909 | ) | $ | 2,852,671 | |||||||||||||
EBIT, as adjusted | $ | 318,507 | $ | 36,247 | $ | 1,815 | $ | 57,306 | $ | 27,826 | $ | (4,350 | ) | $ | 437,351 | |||||||||||||
Special items charge (gain) | 1,052 | 2,045 | 6,071 | 12,198 | — | — | $ | 21,366 | ||||||||||||||||||||
EBIT | $ | 317,455 | $ | 34,202 | $ | (4,256 | ) | $ | 45,108 | $ | 27,826 | $ | (4,350 | ) | $ | 415,985 | ||||||||||||
Interest income | 3,320 | |||||||||||||||||||||||||||
Interest expense | (2,864 | ) | ||||||||||||||||||||||||||
Income before income taxes | $ | 416,441 | ||||||||||||||||||||||||||
Total assets | $ | 1,048,412 | $ | 403,094 | $ | 325,656 | $ | 169,027 | $ | 162,496 | $ | 43,182 | $ | 2,151,867 | ||||||||||||||
Equity investments in affiliates | — | 23,315 | — | 3,303 | — | — | $ | 26,618 | ||||||||||||||||||||
Capital expenditures | 41,181 | 10,305 | 2,073 | 20,840 | 3,931 | (2,315 | ) | $ | 76,015 | |||||||||||||||||||
Depreciation and amortization | 39,086 | 10,933 | 13,559 | 1,893 | 3,636 | (224 | ) | $ | 68,883 | |||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Net sales | $ | 1,580,818 | $ | 452,227 | $ | 324,482 | $ | 161,483 | $ | 334,357 | $ | — | $ | 2,853,367 | ||||||||||||||
Inter-segment sales | 131,062 | 16,048 | 14,829 | 38 | 8,549 | (170,526 | ) | $ | — | |||||||||||||||||||
Total | $ | 1,711,880 | $ | 468,275 | $ | 339,311 | $ | 161,521 | $ | 342,906 | $ | (170,526 | ) | $ | 2,853,367 | |||||||||||||
EBIT, as adjusted | $ | 293,070 | $ | 37,299 | $ | 7,247 | $ | 18,301 | $ | 29,477 | $ | (4,886 | ) | $ | 380,508 | |||||||||||||
Special items charge (gain) | 827 | 3,534 | 4,993 | 1,381 | — | — | $ | 10,735 | ||||||||||||||||||||
EBIT | $ | 292,243 | $ | 33,765 | $ | 2,254 | $ | 16,920 | $ | 29,477 | $ | (4,886 | ) | $ | 369,773 | |||||||||||||
Interest income | 3,988 | |||||||||||||||||||||||||||
Interest expense | (4,191 | ) | ||||||||||||||||||||||||||
Income before income taxes | $ | 369,570 | ||||||||||||||||||||||||||
Total assets | $ | 980,093 | $ | 451,654 | $ | 350,189 | $ | 134,650 | $ | 195,881 | $ | (22,604 | ) | $ | 2,089,863 | |||||||||||||
Equity investments in affiliates | — | 21,798 | — | 2,808 | — | — | $ | 24,606 | ||||||||||||||||||||
Capital expenditures | 36,834 | 5,372 | 8,833 | 899 | 831 | (54 | ) | $ | 52,715 | |||||||||||||||||||
Depreciation and amortization | 33,479 | 11,008 | 15,102 | 1,878 | 3,934 | (67 | ) | $ | 65,334 | |||||||||||||||||||
For the Year Ended | ||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||
Net sales | $ | 1,309,499 | $ | 508,692 | $ | 376,276 | $ | 156,684 | $ | 343,458 | $ | — | $ | 2,694,609 | ||||||||||||||
Inter-segment sales | 136,314 | 17,422 | 15,614 | 494 | 8,496 | (178,340 | ) | $ | — | |||||||||||||||||||
Total | $ | 1,445,813 | $ | 526,114 | $ | 391,890 | $ | 157,178 | $ | 351,954 | $ | (178,340 | ) | $ | 2,694,609 | |||||||||||||
EBIT, as adjusted | $ | 227,924 | $ | 36,171 | $ | 2,629 | $ | 12,895 | $ | 25,151 | $ | 426 | $ | 305,196 | ||||||||||||||
Special items charge (gain) | — | 392 | (110 | ) | — | — | — | $ | 282 | |||||||||||||||||||
EBIT | $ | 227,924 | $ | 35,779 | $ | 2,739 | $ | 12,895 | $ | 25,151 | $ | 426 | $ | 304,914 | ||||||||||||||
Interest income | 3,121 | |||||||||||||||||||||||||||
Interest expense | (6,704 | ) | ||||||||||||||||||||||||||
Income before income taxes | $ | 301,331 | ||||||||||||||||||||||||||
Total assets | $ | 771,315 | $ | 436,327 | $ | 380,282 | $ | 110,781 | $ | 181,916 | $ | 96,155 | $ | 1,976,776 | ||||||||||||||
Equity investments in affiliates | — | 20,500 | — | 4,118 | — | — | $ | 24,618 | ||||||||||||||||||||
Capital expenditures | 31,826 | 8,566 | 21,498 | 2,314 | 1,792 | (183 | ) | $ | 65,813 | |||||||||||||||||||
Depreciation and amortization | 29,237 | 11,736 | 14,663 | 2,033 | 4,714 | (332 | ) | $ | 62,051 | |||||||||||||||||||
Schedule of geographical split of the Company's net sales, based on the location of the customers, and property plant equipment | ' | |||||||||||||||||||||||||||
The geographic split of the Company's Net sales, based on the location of the customer, and property, plant and equipment were as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||
United States | $ | 1,350,309 | $ | 1,283,066 | $ | 1,092,838 | ||||||||||||||||||||||
China | 219,490 | 229,996 | 286,121 | |||||||||||||||||||||||||
Other foreign countries | 1,282,872 | 1,340,305 | 1,315,650 | |||||||||||||||||||||||||
Total | $ | 2,852,671 | $ | 2,853,367 | $ | 2,694,609 | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Property, plant and equipment, net: | ||||||||||||||||||||||||||||
United States | $ | 162,357 | $ | 170,831 | $ | 149,637 | ||||||||||||||||||||||
China | 83,416 | 92,744 | 96,374 | |||||||||||||||||||||||||
Other foreign countries | 238,685 | 223,050 | 224,801 | |||||||||||||||||||||||||
Eliminations | (453 | ) | (389 | ) | (361 | ) | ||||||||||||||||||||||
Total | $ | 484,005 | $ | 486,236 | $ | 470,451 | ||||||||||||||||||||||
RATIONALIZATION_AND_ASSET_IMPA1
RATIONALIZATION AND ASSET IMPAIRMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Summary of the activity related to the rationalization liabilities by segment | ' | ||||||||||||||||||||
The following tables summarize the activity related to the rationalization liabilities by segment for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||
North America Welding | Europe | Asia | The Harris | Consolidated | |||||||||||||||||
Welding | Pacific | Products | |||||||||||||||||||
Welding | Group | ||||||||||||||||||||
Balance at December 31, 2011 | $ | — | $ | 173 | $ | — | $ | 82 | $ | 255 | |||||||||||
Payments and other adjustments | (827 | ) | (1,797 | ) | (2,107 | ) | (82 | ) | (4,813 | ) | |||||||||||
Charged to expense | 827 | 3,637 | 3,151 | — | 7,615 | ||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 2,013 | $ | 1,044 | $ | — | $ | 3,057 | |||||||||||
Payments and other adjustments | (586 | ) | (1,343 | ) | (1,510 | ) | — | (3,439 | ) | ||||||||||||
Charged to expense | 1,052 | 1,765 | 841 | — | 3,658 | ||||||||||||||||
Balance at December 31, 2013 | $ | 466 | $ | 2,435 | $ | 375 | $ | — | $ | 3,276 | |||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ' | ||||||||||||||||
Components of accumulated other comprehensive loss | ' | ||||||||||||||||
The following tables set forth the total changes in AOCI by component, net of taxes, for the years ended December 31, 2013 and 2012: | |||||||||||||||||
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges | Defined benefit pension plan activity | Currency translation adjustment | Total | ||||||||||||||
Balance at December 31, 2011 | $ | 912 | $ | (255,369 | ) | $ | 6,576 | $ | (247,881 | ) | |||||||
Other comprehensive income (loss) before reclassification | (1,997 | ) | (26,373 | ) | 2 | 19,555 | 3 | (8,815 | ) | ||||||||
Amounts reclassified from AOCI | 1,165 | 1 | 19,898 | 2 | 233 | 3 | 21,296 | ||||||||||
Net current-period other comprehensive income (loss) | (832 | ) | (6,475 | ) | 19,788 | 12,481 | |||||||||||
Balance at December 31, 2012 | $ | 80 | $ | (261,844 | ) | $ | 26,364 | $ | (235,400 | ) | |||||||
Other comprehensive income (loss) before reclassification | (681 | ) | 82,050 | 2 | (19,316 | ) | 3 | 62,053 | |||||||||
Amounts reclassified from AOCI | 970 | 1 | 19,101 | 2 | 1,335 | 3 | 21,406 | ||||||||||
Net current-period other comprehensive income (loss) | 289 | 101,151 | (17,981 | ) | 83,459 | ||||||||||||
Balance at December 31, 2013 | $ | 369 | $ | (160,693 | ) | $ | 8,383 | $ | (151,941 | ) | |||||||
_______________________________________________________________________________ | |||||||||||||||||
1 | During the 2013 period, this AOCI reclassification is a component of Net sales of $619 (net of tax of $99), Cost of goods sold of $418 (net of tax of $295) and SG&A of $(67) with no tax effect; during the 2012 period, the reclassification is a component of Net sales of $931 (net of tax of $157) and Cost of goods sold of $234 (net of tax of $169). (See Note 13 - Derivatives for additional details.) | ||||||||||||||||
2 | This AOCI component is included in the computation of net periodic pension costs (net of tax of $60,556 and $(3,492) during the years ended December 31, 2013 and 2012, respectively). (See Note 11 - Retirement and Postretirement Benefit Plans for additional details.) | ||||||||||||||||
3 | The Other comprehensive income before reclassifications excludes $(1,819) and $(153) attributable to Non-controlling interests in the years ended December 31, 2013 and 2012, respectively. The reclassified AOCI component is included in the computation of Non-controlling interests. (See Consolidated Statements of Equity for additional details.) |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of debt | ' | ||||||||
At December 31, 2013 and 2012, debt consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long-term debt | |||||||||
Capital leases due through 2017, interest at 1.12% to 3.63% | $ | 236 | $ | 267 | |||||
Other borrowings due through 2023, interest up to 4.00% | 4,270 | 1,788 | |||||||
4,506 | 2,055 | ||||||||
Less current portion | 715 | 456 | |||||||
Long-term debt, less current portion | 3,791 | 1,599 | |||||||
Short-term debt | |||||||||
Amounts due banks, interest at 11.28% (11.32% in 2012) | 14,581 | 18,220 | |||||||
Current portion long-term debt | 715 | 456 | |||||||
Total short-term debt | 15,296 | 18,676 | |||||||
Total debt | $ | 19,087 | $ | 20,275 | |||||
STOCK_PLANS_Tables
STOCK PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||
Summary of stock option activity | ' | |||||||||||||||||||||
The following table summarizes stock option activity for the years ended December 31, 2013, 2012 and 2011, under all Plans: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Options | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Balance at beginning of year | 3,060,944 | $ | 30.98 | 3,632,463 | $ | 26.05 | 3,779,824 | $ | 23.99 | |||||||||||||
Options granted | 273,105 | 70.88 | 412,980 | 47.66 | 459,263 | 35.34 | ||||||||||||||||
Options exercised | (774,783 | ) | 26.2 | (962,029 | ) | 19.52 | (572,795 | ) | 19.82 | |||||||||||||
Options canceled | (106,618 | ) | 40.54 | (22,470 | ) | 24.07 | (33,829 | ) | 26.62 | |||||||||||||
Balance at end of year | 2,452,648 | 36.52 | 3,060,944 | 30.98 | 3,632,463 | 26.05 | ||||||||||||||||
Exercisable at end of year | 1,837,014 | 29.93 | 2,208,455 | 27.19 | 2,677,071 | 23.73 | ||||||||||||||||
Weighted average assumptions used for estimating fair value of options granted | ' | |||||||||||||||||||||
The weighted average assumptions for each of the three years ended December 31, 2013 were as follows: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Expected volatility | 32.97 | % | 45.67 | % | 41.92 | % | ||||||||||||||||
Dividend yield | 1.4 | % | 1.66 | % | 1.63 | % | ||||||||||||||||
Risk-free interest rate | 1.52 | % | 0.7 | % | 0.8 | % | ||||||||||||||||
Expected option life (years) | 4.4 | 4.5 | 4.3 | |||||||||||||||||||
Weighted average fair value per option granted during the year | $ | 18.14 | $ | 15.87 | $ | 10.97 | ||||||||||||||||
Summary of nonvested stock options | ' | |||||||||||||||||||||
The following table summarizes non-vested stock options for the year ended December 31, 2013: | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||
Options | Average Fair | |||||||||||||||||||||
Value at Grant | ||||||||||||||||||||||
Date | ||||||||||||||||||||||
Balance at beginning of year | 852,489 | $ | 13.63 | |||||||||||||||||||
Granted | 273,105 | 18.14 | ||||||||||||||||||||
Vested | (410,542 | ) | 12.5 | |||||||||||||||||||
Forfeited | (99,418 | ) | 14.04 | |||||||||||||||||||
Balance at end of year | 615,634 | 16.32 | ||||||||||||||||||||
Summary of information about awards outstanding, by exercise price range | ' | |||||||||||||||||||||
The following table summarizes information about awards outstanding as of December 31, 2013: | ||||||||||||||||||||||
Outstanding | Exercisable | |||||||||||||||||||||
Exercise Price Range | Number of | Weighted | Number of | Weighted | Weighted | |||||||||||||||||
Stock | Average | Stock | Average | Average | ||||||||||||||||||
Options | Exercise | Options | Exercise | Remaining | ||||||||||||||||||
Price | Price | Life (years) | ||||||||||||||||||||
Under $29.99 | 738,614 | $ | 23.41 | 738,614 | $ | 23.41 | 4.6 | |||||||||||||||
$30.00 - $39.99 | 1,092,456 | 33.2 | 1,001,199 | 33 | 6.2 | |||||||||||||||||
Over $40.00 | 621,578 | 57.93 | 97,201 | 47.85 | 9.4 | |||||||||||||||||
2,452,648 | 1,837,014 | 6.5 | ||||||||||||||||||||
Summary of restricted share award activity | ' | |||||||||||||||||||||
The following table summarizes restricted share award activity for the years ended December 31, 2013, 2012 and 2011, under all Plans: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
Balance at beginning of year | 336,808 | $ | 28.49 | 379,233 | $ | 28.06 | 523,730 | $ | 27.36 | |||||||||||||
Shares granted | 14,464 | 70.88 | 20,099 | 47.81 | 22,779 | 35.55 | ||||||||||||||||
Shares vested* | (224,021 | ) | 25.68 | (62,524 | ) | 32.1 | (159,842 | ) | 26.97 | |||||||||||||
Shares forfeited | (11,935 | ) | 25.76 | — | — | (7,434 | ) | 24.67 | ||||||||||||||
Balance at end of year | 115,316 | 39.55 | 336,808 | 28.49 | 379,233 | 28.06 | ||||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||||
* | Includes shares vested but not exercisable | |||||||||||||||||||||
Summary of nonvested restricted shares awards | ' | |||||||||||||||||||||
The following table summarizes non-vested restricted share awards for the year ended December 31, 2013: | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
Number of Restricted Shares | Weighted Average Fair Value at Grant Date | |||||||||||||||||||||
Balance at beginning of year | 318,088 | $ | 28.74 | |||||||||||||||||||
Shares granted | 14,464 | 70.88 | ||||||||||||||||||||
Shares vested | (205,301 | ) | 25.8 | |||||||||||||||||||
Shares forfeited | (11,935 | ) | 25.76 | |||||||||||||||||||
Balance at end of year | 115,316 | 39.55 | ||||||||||||||||||||
Summary of restricted stock unit activity | ' | |||||||||||||||||||||
The following table summarizes restricted stock unit activity for the years ended December 31, 2013, 2012 and 2011, under all Plans: | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
Units | Weighted | Units | Weighted | Units | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||
Balance at beginning of year | 288,669 | $ | 40.83 | 166,519 | $ | 34.55 | — | $ | — | |||||||||||||
Units granted | 69,925 | 67.17 | 133,944 | 47.97 | 166,519 | 34.55 | ||||||||||||||||
Units vested | (33,698 | ) | 39.2 | (10,499 | ) | 33.06 | — | — | ||||||||||||||
Units forfeited | (40,952 | ) | 41.7 | (1,295 | ) | 35.55 | — | — | ||||||||||||||
Balance at end of year | 283,944 | 47.38 | 288,669 | 40.83 | 166,519 | 34.55 | ||||||||||||||||
RETIREMENT_ANNUITY_AND_GUARANT1
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | ' | ||||||||||||||||
Obligations and Funded Status | ' | ||||||||||||||||
Obligations and Funded Status | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Change in benefit obligations | |||||||||||||||||
Benefit obligations at beginning of year | $ | 1,033,725 | $ | 991,979 | |||||||||||||
Service cost | 23,188 | 21,538 | |||||||||||||||
Interest cost | 37,225 | 41,584 | |||||||||||||||
Plan participants' contributions | 221 | 334 | |||||||||||||||
Plan amendments | 1,623 | (3,681 | ) | ||||||||||||||
Actuarial (gain) loss | (91,851 | ) | 70,015 | ||||||||||||||
Benefits paid | (59,296 | ) | (86,722 | ) | |||||||||||||
Settlement/curtailment | (1,390 | ) | (3,946 | ) | |||||||||||||
Currency translation | (2,003 | ) | 2,624 | ||||||||||||||
Benefit obligations at end of year | 941,442 | 1,033,725 | |||||||||||||||
Change in plan assets | |||||||||||||||||
Fair value of plan assets at beginning of year | 813,897 | 749,456 | |||||||||||||||
Actual return on plan assets | 101,044 | 83,156 | |||||||||||||||
Employer contributions | 85,456 | 68,029 | |||||||||||||||
Plan participants' contributions | 221 | 334 | |||||||||||||||
Benefits paid | (57,644 | ) | (85,238 | ) | |||||||||||||
Settlement | (1,390 | ) | (3,798 | ) | |||||||||||||
Currency translation | (1,589 | ) | 1,958 | ||||||||||||||
Fair value of plan assets at end of year | 939,995 | 813,897 | |||||||||||||||
Funded status at end of year | (1,447 | ) | (219,828 | ) | |||||||||||||
Unrecognized actuarial net loss | 258,781 | 422,042 | |||||||||||||||
Unrecognized prior service cost | (2,547 | ) | (4,101 | ) | |||||||||||||
Unrecognized transition assets, net | 26 | 26 | |||||||||||||||
Net amount recognized | $ | 254,813 | $ | 198,139 | |||||||||||||
Amounts Recognized in Consolidated Balance Sheets | ' | ||||||||||||||||
Amounts Recognized in Consolidated Balance Sheets | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Prepaid pensions | $ | 36,116 | $ | — | |||||||||||||
Accrued pension liability, current | (10,564 | ) | (3,639 | ) | |||||||||||||
Accrued pension liability, long-term | (26,999 | ) | (216,189 | ) | |||||||||||||
Accumulated other comprehensive loss, excluding tax effects | 256,260 | 417,967 | |||||||||||||||
Net amount recognized in the balance sheets | $ | 254,813 | $ | 198,139 | |||||||||||||
Components of Pension Cost for Defined Benefit Plans | ' | ||||||||||||||||
Components of Pension Cost for Defined Benefit Plans | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Service cost | $ | 23,188 | $ | 21,538 | $ | 17,331 | |||||||||||
Interest cost | 37,225 | 41,584 | 44,161 | ||||||||||||||
Expected return on plan assets | (61,244 | ) | (58,754 | ) | (57,405 | ) | |||||||||||
Amortization of prior service cost | (613 | ) | (90 | ) | (62 | ) | |||||||||||
Amortization of net loss | 30,929 | 31,085 | 21,816 | ||||||||||||||
Settlement/curtailment loss | 423 | 895 | 529 | ||||||||||||||
Pension cost for defined benefit plans | $ | 29,908 | $ | 36,258 | $ | 26,370 | |||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ' | ||||||||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
U.S. pension plans | |||||||||||||||||
Projected benefit obligation | $ | 37,355 | $ | 956,837 | |||||||||||||
Accumulated benefit obligation | 33,416 | 905,541 | |||||||||||||||
Fair value of plan assets | 10,028 | 755,491 | |||||||||||||||
Non-U.S. pension plans | |||||||||||||||||
Projected benefit obligation | $ | 49,990 | $ | 76,884 | |||||||||||||
Accumulated benefit obligation | 42,593 | 70,492 | |||||||||||||||
Fair value of plan assets | 39,753 | 58,403 | |||||||||||||||
Benefits expected to be paid for the U.S. Plans | ' | ||||||||||||||||
Benefit Payments for Plans | |||||||||||||||||
Benefits expected to be paid for the U.S. plans are as follows: | |||||||||||||||||
Estimated Payments | |||||||||||||||||
2014 | $ | 61,755 | |||||||||||||||
2015 | 53,992 | ||||||||||||||||
2016 | 61,654 | ||||||||||||||||
2017 | 59,570 | ||||||||||||||||
2018 | 58,422 | ||||||||||||||||
2019 through 2023 | 307,094 | ||||||||||||||||
Weighted average assumptions used to measure the benefit obligation for the Company's significant defined benefit plans | ' | ||||||||||||||||
Assumptions | |||||||||||||||||
Weighted average assumptions used to measure the benefit obligation for the Company's significant defined benefit plans as of December 31, 2013 and 2012 were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Discount rate | 4.7 | % | 3.8 | % | |||||||||||||
Rate of increase in compensation | 4.2 | % | 4 | % | |||||||||||||
Weighted average assumptions used to measure the net periodic benefit cost for the Company's significant defined benefit plans | ' | ||||||||||||||||
Weighted average assumptions used to measure the net periodic benefit cost for the Company's significant defined benefit plans for each of the three years ended December 31, 2013 were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Discount rate | 3.8 | % | 4.2 | % | 5.3 | % | |||||||||||
Rate of increase in compensation | 4.1 | % | 4 | % | 4 | % | |||||||||||
Expected return on plan assets | 7.4 | % | 7.7 | % | 7.9 | % | |||||||||||
Pension plans' assets by level within the fair value hierarchy | ' | ||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans' assets as of December 31, 2013: | |||||||||||||||||
Pension Plans' Assets at Fair Value as of December 31, 2013 | |||||||||||||||||
Quoted Prices | Significant Other | Significant | Total | ||||||||||||||
in Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Common trusts and 103-12 investments (1) | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 4,686 | $ | — | $ | 4,686 | |||||||||
Common trusts and 103-12 investments | — | 902,746 | — | 902,746 | |||||||||||||
Private equity funds (2) | — | — | 32,563 | 32,563 | |||||||||||||
Total assets at fair value | $ | — | $ | 907,432 | $ | 32,563 | $ | 939,995 | |||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans' assets as of December 31, 2012: | |||||||||||||||||
Pension Plans' Assets at Fair Value as of December 31, 2012 | |||||||||||||||||
Quoted Prices | Significant Other | Significant | Total | ||||||||||||||
in Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Corporate stock (3) | $ | 107,763 | $ | — | $ | — | $ | 107,763 | |||||||||
Cash and cash equivalents | 5,170 | — | — | 5,170 | |||||||||||||
Corporate and other obligations (4) | — | 412 | — | 412 | |||||||||||||
Common trusts and 103-12 investments (1) | — | 673,469 | — | 673,469 | |||||||||||||
Private equity funds (2) | — | — | 27,083 | 27,083 | |||||||||||||
Total assets at fair value | $ | 112,933 | $ | 673,881 | $ | 27,083 | $ | 813,897 | |||||||||
_______________________________________________________________________________ | |||||||||||||||||
-1 | Common trusts and 103-12 investments are comprised of a number of investment funds that invest in a diverse portfolio of assets including equity securities, corporate and governmental bonds, equity and credit indexes, and money markets. Trusts are valued at the net asset value ("NAV") as determined by their custodian. NAV represents the accumulation of the unadjusted quoted close prices on the reporting date for the underlying investments divided by the total shares outstanding at the reporting dates. | ||||||||||||||||
-2 | Private equity funds consist of four funds seeking capital appreciation by investing in private equity investment partnerships and venture capital companies. Funds are comprised of unrestricted and restricted publicly traded securities and privately held securities. Unrestricted securities are valued at the closing market price on the reporting date. Restricted securities may be valued at a discount from such closing public market price, depending on facts and circumstances. Privately held securities are valued at fair value as determined by the fund directors and general partners. | ||||||||||||||||
-3 | This investment category includes publicly traded equity investments directly held by the plans. Investments are valued at the unadjusted quoted close prices reported on the reporting date. | ||||||||||||||||
-4 | This investment category is composed of publicly traded bonds and asset backed securities which are valued at the quoted closing market prices on the reporting date. | ||||||||||||||||
Summary of changes in the fair value of the Level 3 pension plans' assets | ' | ||||||||||||||||
The table below sets forth a summary of changes in the fair value of the Level 3 pension plans' assets for the year ended December 31, 2013: | |||||||||||||||||
Private | |||||||||||||||||
Equity | |||||||||||||||||
Funds | |||||||||||||||||
Balance at the beginning of year | $ | 27,083 | |||||||||||||||
Purchases, sales, issuances and settlements | 2,186 | ||||||||||||||||
Realized and unrealized gains | 3,294 | ||||||||||||||||
Balance at the end of year | $ | 32,563 | |||||||||||||||
The amount of total gains during the period attributable to the change in unrealized gains relating to Level 3 net assets still held at the reporting date | $ | 3,035 | |||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of income (loss) before income taxes | ' | ||||||||||||
The components of income before income taxes for the three years ended December 31, 2013 were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. | $ | 281,724 | $ | 243,382 | $ | 204,667 | |||||||
Non-U.S. | 134,717 | 126,188 | 96,664 | ||||||||||
Total | $ | 416,441 | $ | 369,570 | $ | 301,331 | |||||||
Components of income tax expense (benefit) | ' | ||||||||||||
The components of income tax expense (benefit) for the three years ended December 31, 2013 were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 58,099 | $ | 72,809 | $ | 42,510 | |||||||
Non-U.S. | 40,348 | 33,510 | 19,970 | ||||||||||
State and local | 8,490 | 8,172 | 6,699 | ||||||||||
106,937 | 114,491 | 69,179 | |||||||||||
Deferred: | |||||||||||||
Federal | 21,946 | (1,673 | ) | 12,140 | |||||||||
Non-U.S. | (5,734 | ) | (750 | ) | 2,768 | ||||||||
State and local | 1,605 | 286 | 231 | ||||||||||
17,817 | (2,137 | ) | 15,139 | ||||||||||
Total | $ | 124,754 | $ | 112,354 | $ | 84,318 | |||||||
Differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes | ' | ||||||||||||
The differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes for the three years ended December 31, 2013 were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory rate of 35% applied to pre-tax income | $ | 145,754 | $ | 129,350 | $ | 105,466 | |||||||
Effect of state and local income taxes, net of federal tax benefit | 7,124 | 5,598 | 4,585 | ||||||||||
Taxes (less) more than the U.S. tax rate on non-U.S. earnings, including utilization of tax loss carry-forwards, losses with no benefit and changes in non-U.S. valuation allowance | (17,352 | ) | (11,263 | ) | (13,637 | ) | |||||||
Manufacturing deduction | (6,386 | ) | (6,287 | ) | (5,330 | ) | |||||||
U.S. tax cost (benefit) of foreign source income | 995 | (4,766 | ) | 145 | |||||||||
Resolution and adjustments to uncertain tax positions | (313 | ) | (1,493 | ) | (5,103 | ) | |||||||
Other | (5,068 | ) | 1,215 | (1,808 | ) | ||||||||
Total | $ | 124,754 | $ | 112,354 | $ | 84,318 | |||||||
Effective tax rate | 29.96 | % | 30.4 | % | 27.98 | % | |||||||
Significant components of deferred tax assets and liabilities | ' | ||||||||||||
Significant components of deferred tax assets and liabilities at December 31, 2013 and 2012, were as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Tax loss and credit carry-forwards | $ | 51,762 | $ | 40,373 | |||||||||
Inventory | 1,277 | 1,328 | |||||||||||
Other accruals | 15,709 | 14,981 | |||||||||||
Employee benefits | 18,909 | 17,904 | |||||||||||
Pension obligations | 4,643 | 82,903 | |||||||||||
Other | 9,828 | 12,686 | |||||||||||
Deferred tax assets, gross | 102,128 | 170,175 | |||||||||||
Valuation allowance | (49,684 | ) | (38,799 | ) | |||||||||
Deferred tax assets, net | 52,444 | 131,376 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | 38,653 | 41,380 | |||||||||||
Intangible assets | 24,014 | 19,545 | |||||||||||
Inventory | 7,311 | 5,783 | |||||||||||
Pension obligations | 7,315 | 2,940 | |||||||||||
Other | 8,777 | 8,769 | |||||||||||
Deferred tax liabilities | 86,070 | 78,417 | |||||||||||
Total Deferred taxes | $ | (33,626 | ) | $ | 52,959 | ||||||||
Summary of the activity related to unrecognized tax benefits | ' | ||||||||||||
The following table summarizes the activity related to unrecognized tax benefits: | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at January 1 | $ | 25,255 | $ | 26,656 | |||||||||
Increase related to current year tax provisions | 1,990 | 3,838 | |||||||||||
Increase related to prior years' tax positions | 208 | 212 | |||||||||||
Increase related to acquisitions | 3,528 | 1,274 | |||||||||||
Decrease related to settlements with taxing authorities | (95 | ) | (940 | ) | |||||||||
Resolution of and other decreases in prior years' tax liabilities | (3,491 | ) | (5,964 | ) | |||||||||
Other | (1,488 | ) | 179 | ||||||||||
Balance at December 31 | $ | 25,907 | $ | 25,255 | |||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of fair values of derivative instruments on the Company's Consolidated Balance Sheets | ' | ||||||||||||||||
Fair values of derivative instruments in the Company's Consolidated Balance Sheets follow: | |||||||||||||||||
31-Dec-13 | December 31, 2012 | ||||||||||||||||
Derivatives by hedge designation | Other | Other | Other | Other | |||||||||||||
Current | Current | Current | Current | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||
Designated as hedging instruments: | |||||||||||||||||
Foreign exchange contracts | $ | 706 | $ | 219 | $ | 352 | $ | 325 | |||||||||
Not designated as hedging instruments: | |||||||||||||||||
Foreign exchange contracts | 766 | 228 | 510 | 902 | |||||||||||||
Commodity contracts | 262 | 47 | 731 | — | |||||||||||||
Total derivatives | $ | 1,734 | $ | 494 | $ | 1,593 | $ | 1,227 | |||||||||
Schedule of effects of undesignated derivative instruments on the Company's Consolidated Statements of Income | ' | ||||||||||||||||
The effects of undesignated derivative instruments on the Company's Consolidated Statements of Income for the years ended December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Derivatives by hedge designation | Classification of gains (losses) | 2013 | 2012 | ||||||||||||||
Not designated as hedges: | |||||||||||||||||
Foreign exchange contracts | Selling, general & administrative expenses | $ | 215 | $ | 3,711 | ||||||||||||
Commodity contracts | Cost of goods sold | 2,882 | (1,117 | ) | |||||||||||||
Schedule of effects of designated cash flow hedges on AOCI and the entity's Consolidated Statements of Income | ' | ||||||||||||||||
The effects of designated cash flow hedges on AOCI and the Company's Consolidated Statements of Income for the years ended December 31, 2013 and 2012 consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
Total gain recognized in AOCI, net of tax | 2013 | 2012 | |||||||||||||||
Foreign exchange contracts | $ | 369 | $ | 80 | |||||||||||||
The Company expects a gain of $369 related to existing contracts to be reclassified from AOCI, net of tax, to earnings over the next 12 months as the hedged transactions are realized. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
Derivative type | Gain (loss) reclassified from AOCI to: | 2013 | 2012 | ||||||||||||||
Foreign exchange contracts | Sales | $ | 619 | $ | 931 | ||||||||||||
Cost of goods sold | 418 | 234 | |||||||||||||||
Net investment contracts | Selling, general & administrative expenses | (67 | ) | — | |||||||||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
The following table provides a summary of fair value assets and liabilities as of December 31, 2013 measured at fair value on a recurring basis: | |||||||||||||||||
Description | Balance as of December 31, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets or | (Level 2) | Inputs (Level 3) | |||||||||||||||
Liabilities | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange contracts | $ | 1,472 | $ | — | $ | 1,472 | $ | — | |||||||||
Commodity contracts | 262 | — | 262 | — | |||||||||||||
Total assets | $ | 1,734 | $ | — | $ | 1,734 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | $ | 447 | $ | — | $ | 447 | $ | — | |||||||||
Commodity contracts | 47 | — | 47 | — | |||||||||||||
Contingent consideration | 5,375 | — | — | 5,375 | |||||||||||||
Forward contract | 16,974 | — | — | 16,974 | |||||||||||||
Deferred compensation | 20,132 | — | 20,132 | — | |||||||||||||
Total liabilities | $ | 42,975 | $ | — | $ | 20,626 | $ | 22,349 | |||||||||
The following table provides a summary of fair value assets and liabilities as of December 31, 2012 measured at fair value on a recurring basis: | |||||||||||||||||
Description | Balance as of December 31, 2012 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets or | (Level 2) | Inputs (Level 3) | |||||||||||||||
Liabilities | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Foreign exchange contracts | $ | 862 | $ | — | $ | 862 | $ | — | |||||||||
Commodity contracts | 731 | — | 731 | — | |||||||||||||
Total assets | $ | 1,593 | $ | — | $ | 1,593 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Foreign exchange contracts | $ | 1,227 | $ | — | $ | 1,227 | $ | — | |||||||||
Contingent consideration | 4,894 | — | — | 4,894 | |||||||||||||
Deferred compensation | 16,882 | — | 16,882 | — | |||||||||||||
Total liabilities | $ | 23,003 | $ | — | $ | 18,109 | $ | 4,894 | |||||||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Leases [Abstract] | ' | ||||||||
Summary of assets held under capital leases and included in property, plant and equipment | ' | ||||||||
The following table summarizes assets held under capital leases and included in property, plant and equipment: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Buildings | $ | 461 | $ | 441 | |||||
Machinery and equipment | 110 | 209 | |||||||
Less: accumulated depreciation | (100 | ) | (163 | ) | |||||
Net capital leases | $ | 471 | $ | 487 | |||||
PRODUCT_WARRANTY_COSTS_Tables
PRODUCT WARRANTY COSTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||||||
Schedule of the changes in the carrying amount of product warranty accruals | ' | ||||||||||||
The changes in product warranty accruals for 2013, 2012 and 2011 were as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 15,304 | $ | 15,781 | $ | 16,879 | |||||||
Accruals for warranties | 12,786 | 10,872 | 10,395 | ||||||||||
Settlements | (12,794 | ) | (11,477 | ) | (11,260 | ) | |||||||
Foreign currency translation | (116 | ) | 128 | (233 | ) | ||||||||
Balance at end of year | $ | 15,180 | $ | 15,304 | $ | 15,781 | |||||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of quarterly financial data | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 718,573 | $ | 727,432 | $ | 691,875 | $ | 714,791 | |||||||||
Gross profit | 226,572 | 240,338 | 232,697 | 243,047 | |||||||||||||
Income before income taxes | 90,679 | 106,534 | 97,840 | 121,388 | |||||||||||||
Net income | 66,806 | 72,606 | 66,044 | 88,324 | |||||||||||||
Basic earnings per share | $ | 0.81 | $ | 0.88 | $ | 0.81 | $ | 1.09 | |||||||||
Diluted earnings per share | $ | 0.8 | $ | 0.87 | $ | 0.8 | $ | 1.07 | |||||||||
2012 | |||||||||||||||||
Net sales | $ | 727,122 | $ | 744,045 | $ | 697,552 | $ | 684,648 | |||||||||
Gross profit | 215,265 | 224,997 | 213,362 | 213,032 | |||||||||||||
Income before income taxes | 92,919 | 98,157 | 90,889 | 87,605 | |||||||||||||
Net income | 64,243 | 66,319 | 64,765 | 62,084 | |||||||||||||
Basic earnings per share | $ | 0.77 | $ | 0.8 | $ | 0.78 | $ | 0.75 | |||||||||
Diluted earnings per share | $ | 0.76 | $ | 0.79 | $ | 0.77 | $ | 0.74 | |||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Translation of Foreign Currencies) (Details) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 08, 2013 | Dec. 31, 2012 |
USD ($) | USD ($) | USD ($) | VEB | VEB | |
Foreign Currency Transaction [Abstract] | ' | ' | ' | ' | ' |
Foreign currency transaction losses | $7,759 | $4,608 | $4,904 | ' | ' |
Venezuela - Foreign Currency | ' | ' | ' | ' | ' |
Official exchange rate set by Venezuelan government for nonessential goods after devaluation (in bolivars per U.S. dollar) | ' | ' | ' | ' | 4.3 |
Official bolivars exchange rate after 2013 devaluation (in bolivars per U.S. dollar) | ' | ' | ' | 6.3 | ' |
Venezuela - Highly Inflationary Economy | ' | ' | ' | ' | ' |
Foreign Currency Transaction Loss, before Tax | 8,081 | ' | ' | ' | ' |
Higher cost of goods sold due to the liquidation of inventory valued at the historical exchange rate | -4,117 | ' | ' | ' | ' |
Net bolivar-denominated monetary assets position | 38,633 | 31,545 | ' | ' | ' |
Cash and Cash Equivalents Located in Venezuela | $50,642 | $32,610 | ' | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Equity Investments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Minimum | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Ownership interest in equity investments (as a percent) | 20.00% | ' |
Maximum | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Ownership interest in equity investments (as a percent) | 50.00% | ' |
Investments in Turkey and Chile | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Amount of retained earnings that represents undistributed earnings of 50% or less owned equity investments | $16,694 | $15,034 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Machinery, tools and equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '3 years |
Machinery, tools and equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '20 years |
Buildings | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '50 years |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Textual) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Product Warranties | ' | ' | ' |
Period of warranty services (in years) | '3 years | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares) | 45,850 | 107,814 | 626,135 |
Research and Development | ' | ' | ' |
Research and development costs | $42,126 | $37,305 | $32,834 |
Bonus | ' | ' | ' |
Costs related to the Company's discretionary employee bonus programs | $123,571 | $124,947 | $104,361 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $88,324 | $66,044 | $72,606 | $66,806 | $62,084 | $64,765 | $66,319 | $64,243 | $293,780 | $257,411 | $217,186 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 81,978,000 | 83,087,000 | 83,681,000 |
Effect of dilutive securities - stock options and awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,064,000 | 1,088,000 | 1,027,000 |
Diluted weighted average shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 83,042,000 | 84,175,000 | 84,708,000 |
Basic earnings per share (in dollars per share) | $1.09 | $0.81 | $0.88 | $0.81 | $0.75 | $0.78 | $0.80 | $0.77 | $3.58 | $3.10 | $2.60 |
Diluted earnings per share (in dollars per share) | $1.07 | $0.80 | $0.87 | $0.80 | $0.74 | $0.77 | $0.79 | $0.76 | $3.54 | $3.06 | $2.56 |
Anti-dilutive shares excluded from the computation of diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 45,850 | 107,814 | 626,135 |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 12, 2012 | Apr. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2011 | Jun. 30, 2011 | Dec. 31, 2010 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2010 |
2013 Acquisitions [Member] | Tennessee Rand, Inc. | Kaliburn | Wayne Trail Technologies Inc. | Weartech International Inc. | Techalloy | Torchmate | OOO Severstal-metiz | SSCO Manufacturing, Inc. (d/b/a Arc Products) | SSCO Manufacturing, Inc. (d/b/a Arc Products) | SSCO Manufacturing, Inc. (d/b/a Arc Products) | |||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consideration paid in cash and assumed debt | ' | ' | ' | ' | ' | ' | ' | ' | $54,023 | $144,423 | $65,321 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,225 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of assets acquired | 30,051 | ' | ' | ' | 73,257 | ' | ' | ' | 30,051 | 73,257 | 46,837 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill from acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 41,197 | 71,166 | 22,290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual sales at the date of acquisition | 714,791 | 691,875 | 727,432 | 718,573 | 684,648 | 697,552 | 744,045 | 727,122 | 2,852,671 | 2,853,367 | 2,694,609 | ' | 35,000 | 35,000 | 36,000 | 50,000 | 40,000 | 70,000 | 13,000 | ' | ' | ' | ' |
Sales for last annual period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | ' | ' |
Contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,806 | $5,375 | ' |
Period of estimated sales as basis for contingent consideration (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' |
Sales for prior annual period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'not significant |
GOODWILL_AND_INTANGIBLES_Chang
GOODWILL AND INTANGIBLES (Changes in Carrying Amount of Goodwill by Reportable Segment) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the carrying amount of goodwill by reportable segment | ' | ' |
Balance at the beginning of the period | $132,903 | $65,101 |
Additions and adjustments | 43,419 | 66,697 |
Foreign currency translation | -1,607 | 1,105 |
Balance at the end of the period | 174,715 | 132,903 |
North America Welding | ' | ' |
Changes in the carrying amount of goodwill by reportable segment | ' | ' |
Balance at the beginning of the period | 86,277 | 18,514 |
Additions and adjustments | 44,446 | 67,740 |
Foreign currency translation | -284 | 23 |
Balance at the end of the period | 130,439 | 86,277 |
Europe Welding | ' | ' |
Changes in the carrying amount of goodwill by reportable segment | ' | ' |
Balance at the beginning of the period | 25,357 | 23,867 |
Additions and adjustments | 0 | 66 |
Foreign currency translation | -927 | 1,424 |
Balance at the end of the period | 24,430 | 25,357 |
Asia Pacific Welding | ' | ' |
Changes in the carrying amount of goodwill by reportable segment | ' | ' |
Balance at the beginning of the period | 5,248 | 5,208 |
Additions and adjustments | 0 | 0 |
Foreign currency translation | 111 | 40 |
Balance at the end of the period | 5,359 | 5,248 |
South America Welding | ' | ' |
Changes in the carrying amount of goodwill by reportable segment | ' | ' |
Balance at the beginning of the period | 614 | 561 |
Additions and adjustments | 0 | 0 |
Foreign currency translation | -52 | 53 |
Balance at the end of the period | 562 | 614 |
The Harris Products Group | ' | ' |
Changes in the carrying amount of goodwill by reportable segment | ' | ' |
Balance at the beginning of the period | 15,407 | 16,951 |
Additions and adjustments | -1,027 | -1,109 |
Foreign currency translation | -455 | -435 |
Balance at the end of the period | $13,925 | $15,407 |
GOODWILL_AND_INTANGIBLES_Gross
GOODWILL AND INTANGIBLES (Gross and Net Intangible Assets Other Than Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Gross intangible assets other than goodwill by asset class | ' | ' |
Gross Amount | $186,940 | $160,168 |
Accumulated Amortization | 58,238 | 45,542 |
Indefinite Lived Assets | 18,310 | 18,276 |
Total Intangible, Net | 147,012 | 132,902 |
Trademarks and trade names | ' | ' |
Gross intangible assets other than goodwill by asset class | ' | ' |
Gross Amount | 38,566 | 30,611 |
Accumulated Amortization | 11,898 | 9,493 |
Indefinite Lived Assets | 18,310 | 18,276 |
Total Intangible, Net | 44,978 | 39,394 |
Weighted average life (in years) | '12 years | ' |
Customer relationships | ' | ' |
Gross intangible assets other than goodwill by asset class | ' | ' |
Gross Amount | 74,935 | 63,906 |
Accumulated Amortization | 16,837 | 12,099 |
Indefinite Lived Assets | 0 | 0 |
Total Intangible, Net | 58,098 | 51,807 |
Weighted average life (in years) | '14 years | ' |
Patents | ' | ' |
Gross intangible assets other than goodwill by asset class | ' | ' |
Gross Amount | 23,861 | 20,882 |
Accumulated Amortization | 6,205 | 5,103 |
Indefinite Lived Assets | 0 | 0 |
Total Intangible, Net | 17,656 | 15,779 |
Weighted average life (in years) | '20 years | ' |
Other | ' | ' |
Gross intangible assets other than goodwill by asset class | ' | ' |
Gross Amount | 49,578 | 44,769 |
Accumulated Amortization | 23,298 | 18,847 |
Indefinite Lived Assets | 0 | 0 |
Total Intangible, Net | $26,280 | $25,922 |
Weighted average life (in years) | '14 years | ' |
GOODWILL_AND_INTANGIBLES_Textu
GOODWILL AND INTANGIBLES (Textual) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Aggregate amortization expense | $13,342 | $10,641 | $6,661 |
Estimated annual amortization expense for intangible assets for each of the next five years | ' | ' | ' |
2014 | 15,745 | ' | ' |
2015 | 15,337 | ' | ' |
2016 | 14,367 | ' | ' |
2017 | 12,228 | ' | ' |
2018 | $11,484 | ' | ' |
SEGMENT_INFORMATION_Financial_
SEGMENT INFORMATION (Financial Information of Reportable Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $714,791 | $691,875 | $727,432 | $718,573 | $684,648 | $697,552 | $744,045 | $727,122 | $2,852,671 | $2,853,367 | $2,694,609 |
Revenue from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Segment, including Inter-segment, sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,852,671 | 2,853,367 | 2,694,609 |
EBIT, as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | 437,351 | 380,508 | 305,196 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 21,366 | 10,735 | 282 |
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 415,985 | 369,773 | 304,914 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 3,320 | 3,988 | 3,121 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -2,864 | -4,191 | -6,704 |
Income before income taxes | 121,388 | 97,840 | 106,534 | 90,679 | 87,605 | 90,889 | 98,157 | 92,919 | 416,441 | 369,570 | 301,331 |
Total assets | 2,151,867 | ' | ' | ' | 2,089,863 | ' | ' | ' | 2,151,867 | 2,089,863 | 1,976,776 |
Equity investments in affiliates | 26,618 | ' | ' | ' | 24,606 | ' | ' | ' | 26,618 | 24,606 | 24,618 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 76,015 | 52,715 | 65,813 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 68,883 | 65,334 | 62,051 |
North America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,652,769 | 1,580,818 | 1,309,499 |
Revenue from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | 127,254 | 131,062 | 136,314 |
Segment, including Inter-segment, sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,780,023 | 1,711,880 | 1,445,813 |
EBIT, as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | 318,507 | 293,070 | 227,924 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 1,052 | 827 | 0 |
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 317,455 | 292,243 | 227,924 |
Total assets | 1,048,412 | ' | ' | ' | 980,093 | ' | ' | ' | 1,048,412 | 980,093 | 771,315 |
Equity investments in affiliates | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 41,181 | 36,834 | 31,826 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 39,086 | 33,479 | 29,237 |
Europe Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 429,548 | 452,227 | 508,692 |
Revenue from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | 19,911 | 16,048 | 17,422 |
Segment, including Inter-segment, sales | ' | ' | ' | ' | ' | ' | ' | ' | 449,459 | 468,275 | 526,114 |
EBIT, as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | 36,247 | 37,299 | 36,171 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 2,045 | 3,534 | 392 |
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 34,202 | 33,765 | 35,779 |
Total assets | 403,094 | ' | ' | ' | 451,654 | ' | ' | ' | 403,094 | 451,654 | 436,327 |
Equity investments in affiliates | 23,315 | ' | ' | ' | 21,798 | ' | ' | ' | 23,315 | 21,798 | 20,500 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 10,305 | 5,372 | 8,566 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10,933 | 11,008 | 11,736 |
Asia Pacific Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 266,282 | 324,482 | 376,276 |
Revenue from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | 14,906 | 14,829 | 15,614 |
Segment, including Inter-segment, sales | ' | ' | ' | ' | ' | ' | ' | ' | 281,188 | 339,311 | 391,890 |
EBIT, as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | 1,815 | 7,247 | 2,629 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 6,071 | 4,993 | -110 |
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | -4,256 | 2,254 | 2,739 |
Total assets | 325,656 | ' | ' | ' | 350,189 | ' | ' | ' | 325,656 | 350,189 | 380,282 |
Equity investments in affiliates | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 2,073 | 8,833 | 21,498 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 13,559 | 15,102 | 14,663 |
South America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 195,895 | 161,483 | 156,684 |
Revenue from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | 233 | 38 | 494 |
Segment, including Inter-segment, sales | ' | ' | ' | ' | ' | ' | ' | ' | 196,128 | 161,521 | 157,178 |
EBIT, as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | 57,306 | 18,301 | 12,895 |
Special items charge (Gain) | ' | ' | 2,538 | 9,660 | ' | ' | ' | ' | 12,198 | 1,381 | 0 |
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 45,108 | 16,920 | 12,895 |
Total assets | 169,027 | ' | ' | ' | 134,650 | ' | ' | ' | 169,027 | 134,650 | 110,781 |
Equity investments in affiliates | 3,303 | ' | ' | ' | 2,808 | ' | ' | ' | 3,303 | 2,808 | 4,118 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 20,840 | 899 | 2,314 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,893 | 1,878 | 2,033 |
The Harris Products Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 308,177 | 334,357 | 343,458 |
Revenue from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | 9,605 | 8,549 | 8,496 |
Segment, including Inter-segment, sales | ' | ' | ' | ' | ' | ' | ' | ' | 317,782 | 342,906 | 351,954 |
EBIT, as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | 27,826 | 29,477 | 25,151 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | 27,826 | 29,477 | 25,151 |
Total assets | 162,496 | ' | ' | ' | 195,881 | ' | ' | ' | 162,496 | 195,881 | 181,916 |
Equity investments in affiliates | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 3,931 | 831 | 1,792 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,636 | 3,934 | 4,714 |
Corporate / Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Revenue from Related Parties | ' | ' | ' | ' | ' | ' | ' | ' | -171,909 | -170,526 | -178,340 |
Segment, including Inter-segment, sales | ' | ' | ' | ' | ' | ' | ' | ' | -171,909 | -170,526 | -178,340 |
EBIT, as adjusted | ' | ' | ' | ' | ' | ' | ' | ' | -4,350 | -4,886 | 426 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
EBIT | ' | ' | ' | ' | ' | ' | ' | ' | -4,350 | -4,886 | 426 |
Total assets | 43,182 | ' | ' | ' | -22,604 | ' | ' | ' | 43,182 | -22,604 | 96,155 |
Equity investments in affiliates | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | -2,315 | -54 | -183 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ($224) | ($67) | ($332) |
SEGMENT_INFORMATION_Geographic
SEGMENT INFORMATION (Geographic Split of Net Sales and Property, Plant and Equipment ) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Geographic split of the Company's net sales, based on the location of the customer, and property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $714,791 | $691,875 | $727,432 | $718,573 | $684,648 | $697,552 | $744,045 | $727,122 | $2,852,671 | $2,853,367 | $2,694,609 |
Total property, plant and equipment, net | 484,005 | ' | ' | ' | 486,236 | ' | ' | ' | 484,005 | 486,236 | 470,451 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic split of the Company's net sales, based on the location of the customer, and property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,350,309 | 1,283,066 | 1,092,838 |
Total property, plant and equipment, net | 162,357 | ' | ' | ' | 170,831 | ' | ' | ' | 162,357 | 170,831 | 149,637 |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic split of the Company's net sales, based on the location of the customer, and property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 219,490 | 229,996 | 286,121 |
Total property, plant and equipment, net | 83,416 | ' | ' | ' | 92,744 | ' | ' | ' | 83,416 | 92,744 | 96,374 |
Other foreign countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic split of the Company's net sales, based on the location of the customer, and property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,282,872 | 1,340,305 | 1,315,650 |
Total property, plant and equipment, net | 238,685 | ' | ' | ' | 223,050 | ' | ' | ' | 238,685 | 223,050 | 224,801 |
Corporate / Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic split of the Company's net sales, based on the location of the customer, and property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, plant and equipment, net | ($453) | ' | ' | ' | ($389) | ' | ' | ' | ($453) | ($389) | ($361) |
SEGMENT_INFORMATION_Textual_De
SEGMENT INFORMATION (Textual) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
segment | ||||||||||
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | $3,658 | $7,615 | ' |
Number of operating segments (segments) | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Percentage of total inventories valued using the LIFO method (as a percent) | 38.00% | ' | ' | ' | 34.00% | ' | ' | 38.00% | 34.00% | 31.00% |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items, net charges for rationalization actions | 259 | 1,627 | 851 | 1,051 | 5,037 | 3,059 | 1,258 | 8,463 | 9,354 | 282 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | 21,366 | 10,735 | 282 |
Special items, gain (loss) on the sale of assets at a rationalized operation | ' | ' | ' | ' | ' | ' | ' | 156 | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | 4,961 | ' | ' |
Europe Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 1,765 | 3,637 | ' |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 188 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | 2,045 | 3,534 | 392 |
Special items, gain (loss) on the sale of assets at a rationalized operation | ' | ' | ' | ' | ' | ' | ' | ' | 103 | -204 |
Asia Pacific Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 841 | 3,151 | 93 |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Charges Net | ' | ' | ' | ' | ' | ' | ' | 922 | ' | ' |
Other Asset Impairment Charges | ' | 4,675 | ' | ' | ' | ' | ' | 4,444 | ' | ' |
Land Sales | 705 | ' | ' | ' | ' | ' | ' | 705 | ' | ' |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | 6,071 | 4,993 | -110 |
Special items, gain (loss) on the sale of assets at a rationalized operation | ' | ' | ' | ' | ' | ' | ' | 154 | ' | 203 |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | 235 | 1,842 | ' |
South America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items, net charges for rationalization actions | ' | ' | ' | ' | ' | ' | 1,381 | ' | ' | ' |
Special items charge (Gain) | ' | ' | 2,538 | 9,660 | ' | ' | ' | 12,198 | 1,381 | 0 |
The Harris Products Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
North America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for the reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 1,052 | 827 | ' |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | 1,052 | 827 | 0 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EntityWideDisclosureOnGeographicAreasRevenueFromExternalCustomersAttributedToForeignCountries1 | ' | ' | ' | ' | ' | ' | ' | $260,195 | $268,331 | $242,380 |
Revenues | Customer concentration risk | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of concentration of credit risk not met other than separately disclosed | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% |
RATIONALIZATION_AND_ASSET_IMPA2
RATIONALIZATION AND ASSET IMPAIRMENTS (Summary of Activity Related to Rationalization Liabilities by Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Activity related to the rationalization liabilities by segment | ' | ' | ' |
Balance at the beginning of the period | $3,057 | $255 | ' |
Payments and other adjustments | -3,439 | -4,813 | ' |
Charged to expense | 3,658 | 7,615 | ' |
Balance at the end of the period | 3,276 | 3,057 | ' |
North America Welding | ' | ' | ' |
Activity related to the rationalization liabilities by segment | ' | ' | ' |
Balance at the beginning of the period | 0 | 0 | ' |
Payments and other adjustments | -586 | -827 | ' |
Charged to expense | 1,052 | 827 | ' |
Balance at the end of the period | 466 | 0 | ' |
Europe Welding | ' | ' | ' |
Activity related to the rationalization liabilities by segment | ' | ' | ' |
Balance at the beginning of the period | 2,013 | 173 | ' |
Payments and other adjustments | -1,343 | -1,797 | ' |
Charged to expense | 1,765 | 3,637 | ' |
Balance at the end of the period | 2,435 | 2,013 | ' |
Asia Pacific Welding | ' | ' | ' |
Activity related to the rationalization liabilities by segment | ' | ' | ' |
Balance at the beginning of the period | 1,044 | 0 | ' |
Payments and other adjustments | -1,510 | -2,107 | ' |
Charged to expense | 841 | 3,151 | 93 |
Balance at the end of the period | 375 | 1,044 | 0 |
The Harris Products Group | ' | ' | ' |
Activity related to the rationalization liabilities by segment | ' | ' | ' |
Balance at the beginning of the period | 0 | 82 | ' |
Payments and other adjustments | 0 | -82 | ' |
Charged to expense | 0 | 0 | ' |
Balance at the end of the period | $0 | $0 | ' |
RATIONALIZATION_AND_ASSET_IMPA3
RATIONALIZATION AND ASSET IMPAIRMENTS (Textual) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rationalization and asset impairment charges (gains) | $259 | $1,627 | $851 | $1,051 | $5,037 | $3,059 | $1,258 | $8,463 | $9,354 | $282 |
Special items charge | ' | ' | ' | ' | ' | ' | ' | 21,366 | 10,735 | 282 |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 3,658 | 7,615 | ' |
Restructuring liability | 3,276 | ' | ' | ' | 3,057 | ' | ' | 3,276 | 3,057 | 255 |
Asset impairment charges | ' | ' | ' | ' | ' | ' | ' | 4,961 | ' | ' |
Special items, gain (loss) on the sale of assets at a rationalized operation | ' | ' | ' | ' | ' | ' | ' | 156 | ' | ' |
North America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items charge | ' | ' | ' | ' | ' | ' | ' | 1,052 | 827 | 0 |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 1,052 | 827 | ' |
Restructuring liability | 466 | ' | ' | ' | 0 | ' | ' | 466 | 0 | 0 |
Europe Welding 2013 Plan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items charge | ' | ' | ' | ' | ' | ' | ' | 1,832 | ' | ' |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 1,599 | ' | ' |
Restructuring liability | 1,209 | ' | ' | ' | ' | ' | ' | 1,209 | ' | ' |
Asset impairment charges | ' | ' | ' | ' | ' | ' | ' | 233 | ' | ' |
Europe Welding 2012 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items charge | ' | ' | ' | ' | ' | ' | ' | 213 | ' | ' |
Restructuring liability | 1,226 | ' | ' | ' | ' | ' | ' | 1,226 | ' | ' |
Asia Pacific Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items charge | ' | ' | ' | ' | ' | ' | ' | 6,071 | 4,993 | -110 |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 841 | 3,151 | 93 |
Restructuring liability | 375 | ' | ' | ' | 1,044 | ' | ' | 375 | 1,044 | 0 |
Asset impairment charges | ' | ' | ' | ' | ' | ' | ' | 235 | 1,842 | ' |
Special items, gain (loss) on the sale of assets at a rationalized operation | ' | ' | ' | ' | ' | ' | ' | 154 | ' | 203 |
Restructuring Charges Net | ' | ' | ' | ' | ' | ' | ' | 922 | ' | ' |
Other Asset Impairment Charges | ' | 4,675 | ' | ' | ' | ' | ' | 4,444 | ' | ' |
The Harris Products Group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special items charge | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Restructuring charges | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Restructuring liability | 0 | ' | ' | ' | 0 | ' | ' | 0 | 0 | 82 |
Employee Severance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee severance and other related costs | ' | ' | ' | ' | ' | ' | ' | 3,658 | ' | ' |
Employee Severance | North America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees affected due to rationalization activities | ' | ' | ' | ' | ' | ' | ' | 72 | ' | ' |
Employee Severance | Europe Welding 2013 Plan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees affected due to rationalization activities | ' | ' | ' | ' | ' | ' | ' | 56 | ' | ' |
Employee Severance | Europe Welding 2012 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees affected due to rationalization activities | ' | ' | ' | ' | ' | ' | ' | 285 | ' | ' |
Employee Severance | Asia Pacific Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees affected due to rationalization activities | ' | ' | ' | ' | ' | ' | ' | 268 | ' | ' |
Employee Severance | Minimum | Europe Welding 2013 Plan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected restructuring costs | ' | ' | ' | ' | ' | ' | ' | 400 | ' | ' |
Employee Severance | Maximum | Europe Welding 2013 Plan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected restructuring costs | ' | ' | ' | ' | ' | ' | ' | $700 | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated other comprehensive loss | ($151,941) | ' | ' | ' | ($235,400) | ' | ' | ' | ($151,941) | ($235,400) | ($247,881) | ||
Other comprehensive income (loss) before reclassification | ' | ' | ' | ' | ' | ' | ' | ' | 62,053 | -8,815 | ' | ||
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 21,406 | 21,296 | ' | ||
Net current-period other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 83,459 | 12,481 | ' | ||
Net sales | 714,791 | 691,875 | 727,432 | 718,573 | 684,648 | 697,552 | 744,045 | 727,122 | 2,852,671 | 2,853,367 | 2,694,609 | ||
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 124,754 | 112,354 | 84,318 | ||
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 1,910,017 | 1,986,711 | 1,957,872 | ||
Selling, general & administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 527,206 | 495,221 | 439,775 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated other comprehensive loss | 369 | ' | ' | ' | 80 | ' | ' | ' | 369 | 80 | 912 | ||
Other comprehensive income (loss) before reclassification | ' | ' | ' | ' | ' | ' | ' | ' | -681 | -1,997 | ' | ||
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 970 | [1] | 1,165 | [1] | ' |
Net current-period other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 289 | -832 | ' | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated other comprehensive loss | -160,693 | ' | ' | ' | -261,844 | ' | ' | ' | -160,693 | -261,844 | -255,369 | ||
Other comprehensive income (loss) before reclassification | ' | ' | ' | ' | ' | ' | ' | ' | 82,050 | [2] | -26,373 | [2] | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 19,101 | [2] | 19,898 | [2] | ' |
Net current-period other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 101,151 | -6,475 | ' | ||
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated other comprehensive loss | 8,383 | ' | ' | ' | 26,364 | ' | ' | ' | 8,383 | 26,364 | 6,576 | ||
Other comprehensive income (loss) before reclassification | ' | ' | ' | ' | ' | ' | ' | ' | -19,316 | [3] | 19,555 | [3] | ' |
Amounts reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 1,335 | [3] | 233 | [3] | ' |
Net current-period other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -17,981 | 19,788 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 60,556 | -3,492 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Translation Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | -1,819 | -153 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Sales | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 619 | 931 | ' | ||
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 99 | 157 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of goods sold | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 295 | 169 | ' | ||
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 418 | 234 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Selling, General and Administrative Expenses [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Selling, general & administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ($67) | ' | ' | ||
[1] | During the 2013 period, this AOCI reclassification is a component of Net sales of $619 (net of tax of $99), Cost of goods sold of $418 (net of tax of $295) and SG&A of $(67) with no tax effect; during the 2012 period, the reclassification is a component of Net sales of $931 (net of tax of $157) and Cost of goods sold of $234 (net of tax of $169). (See Note 13 - Derivatives for additional details.) | ||||||||||||
[2] | This AOCI component is included in the computation of net periodic pension costs (net of tax of $60,556 and $(3,492) during the years ended December 31, 2013 and 2012, respectively). (See Note 11 - Retirement and Postretirement Benefit Plans for additional details.) | ||||||||||||
[3] | The Other comprehensive income before reclassifications excludes $(1,819) and $(153) attributable to Non-controlling interests in the years ended December 31, 2013 and 2012, respectively. The reclassified AOCI component is included in the computation of Non-controlling interests. (See Consolidated Statements of Equity for additional details.) |
DEBT_Schedule_of_Debt_Details
DEBT (Schedule of Debt) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term debt | ' | ' |
Long-term debt | $4,506 | $2,055 |
Less current portion | 715 | 456 |
Long-term debt, less current portion | 3,791 | 1,599 |
Short-term debt | ' | ' |
Amounts due banks, interest at 11.28% (11.32% in 2012) | 14,581 | 18,220 |
Current portion of long-term debt | 715 | 456 |
Total short-term debt | 15,296 | 18,676 |
Total debt | 19,087 | 20,275 |
Capital leases due through 2017, interest at 1.12% to 3.63% | ' | ' |
Long-term debt | ' | ' |
Long-term debt | 236 | 267 |
Short-term debt | ' | ' |
Interest rate, low end of range (as a percent) | 1.12% | ' |
Interest rate, high end of range (as a percent) | 3.63% | ' |
Other borrowings due through 2023, interest up to 4.00% | ' | ' |
Long-term debt | ' | ' |
Long-term debt | $4,270 | $1,788 |
Short-term debt | ' | ' |
Interest rate, high end of range (as a percent) | 4.00% | ' |
DEBT_Senior_Unsecured_Notes_De
DEBT (Senior Unsecured Notes) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt | ' | ' |
Fair value of long-term debt | $4,212 | $1,919 |
DEBT_Revolving_Credit_Agreemen
DEBT (Revolving Credit Agreement) (Details) (Revolving credit agreement, USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Revolving credit agreement | ' | ' | ' |
Debt | ' | ' | ' |
Borrowing capacity under the line of credit | ' | $300,000 | $300,000 |
Credit agreement initiation date | 26-Jul-12 | ' | ' |
Credit facility covenant compliance | ' | ' | 'As of December 31, 2013, the Company was in compliance with all of its covenants |
Term of the credit agreement (in years) | ' | '5 years | ' |
Additional increase in borrowing capacity of the line of credit available at the entity's option | ' | $100,000 | $100,000 |
DEBT_Capital_Leases_Details
DEBT (Capital Leases) (Details) (Capital leases due through 2017, interest at 1.12% to 3.63%, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Capital leases due through 2017, interest at 1.12% to 3.63% | ' | ' |
Debt | ' | ' |
Capital lease indebtedness secured by property, plant and equipment | $236 | $267 |
DEBT_Other_Textual_Details
DEBT (Other Textual) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2014 | $15,297 | ' | ' |
2015 | 535 | ' | ' |
2016 | 446 | ' | ' |
2017 | 285 | ' | ' |
2018 | 202 | ' | ' |
Thereafter | 774 | ' | ' |
Total interest paid | 2,864 | 4,423 | 6,979 |
Short-term borrowings included in amounts due banks | $14,581 | $18,220 | ' |
Weighted average interest rates of borrowings of foreign subsidiaries (as a percent) | 11.30% | 11.30% | ' |
STOCK_PLANS_Summary_of_Stock_O
STOCK PLANS (Summary of Stock Option Activity) (Details) (Stock options, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock options | ' | ' | ' |
Stock Options, Shares | ' | ' | ' |
Balance at beginning of year (in shares) | 3,060,944 | 3,632,463 | 3,779,824 |
Granted (in shares) | 273,105 | 412,980 | 459,263 |
Exercised (in shares) | -774,783 | -962,029 | -572,795 |
Canceled (in shares) | -106,618 | -22,470 | -33,829 |
Balance at end of year (in shares) | 2,452,648 | 3,060,944 | 3,632,463 |
Exercisable at end of year (in shares) | 1,837,014 | 2,208,455 | 2,677,071 |
Stock Options, Weighted Average Exercise Price | ' | ' | ' |
Balance at beginning of year, weighted average exercise price (in dollars per share) | $30.98 | $26.05 | $23.99 |
Shares granted, weighted average exercise price (in dollars per share) | $70.88 | $47.66 | $35.34 |
Shares exercised, weighted average exercise price (in dollars per share) | $26.20 | $19.52 | $19.82 |
Shares canceled, weighted average exercise price (in dollars per share) | $40.54 | $24.07 | $26.62 |
Balance at end of year, weighted average exercise price (in dollars per share) | $36.52 | $30.98 | $26.05 |
Exercisable at end of year, weighted average exercise price (in dollars per share) | $29.93 | $27.19 | $23.73 |
STOCK_PLANS_Stock_Option_Weigh
STOCK PLANS (Stock Option Weighted Average Assumptions) (Details) (Stock options, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock options | ' | ' | ' |
Stock Plans | ' | ' | ' |
Expected volatility (as a percent) | 32.97% | 45.67% | 41.92% |
Dividend yield (as a percent) | 1.40% | 1.66% | 1.63% |
Risk-free interest rate (as a percent) | 1.52% | 0.70% | 0.80% |
Expected option life (in years) | '4 years 4 months 24 days | '4 years 6 months | '4 years 3 months 18 days |
Weighted average fair value per option granted during the year (in dollars per share) | $18.14 | $15.87 | $10.97 |
STOCK_PLANS_NonVested_Stock_Op
STOCK PLANS (Non-Vested Stock Option Activity) (Details) (Stock options, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock options | ' | ' | ' |
Stock Plans | ' | ' | ' |
Balance of Nonvested Options (in shares) | 615,634 | 852,489 | ' |
Granted (in shares) | 273,105 | 412,980 | 459,263 |
Vested (in shares) | -410,542 | ' | ' |
Forfeited (in shares) | -99,418 | ' | ' |
Nonvested stock options, Weighted Average Fair Value at Grant Date | ' | ' | ' |
Balance at beginning of year, weighted average fair value at grant date (in dollars per share) | $13.63 | ' | ' |
Granted, weighted average fair value at grant date (in dollars per share) | $18.14 | $15.87 | $10.97 |
Vested, weighted average fair value at grant date (in dollars per share) | $12.50 | ' | ' |
Forfeited, weighted average fair value at grant date (in dollars per share) | $14.04 | ' | ' |
Balance at end of year, weighted average fair value at grant date (in dollars per share) | $16.32 | $13.63 | ' |
STOCK_PLANS_Summary_of_Stock_O1
STOCK PLANS (Summary of Stock Options by Exercise Price Range) (Details) (Stock options, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Information about awards outstanding | ' |
Weighted Average Remaining Life (in years) | '6 years 6 months |
Outstanding | ' |
Options Outstanding, Number of Stock Options (in shares) | 2,452,648 |
Exercisable | ' |
Options Exercisable, Number of Stock Options (in shares) | 1,837,014 |
Exercise Price Range 1 | ' |
Information about awards outstanding | ' |
Exercise price, high end of range (in dollars per share) | 29.99 |
Weighted Average Remaining Life (in years) | '4 years 7 months 6 days |
Outstanding | ' |
Options Outstanding, Number of Stock Options (in shares) | 738,614 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | 23.41 |
Exercisable | ' |
Options Exercisable, Number of Stock Options (in shares) | 738,614 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | 23.41 |
Exercise Price Range 2 | ' |
Information about awards outstanding | ' |
Exercise price, low end of range (in dollars per share) | 30 |
Exercise price, high end of range (in dollars per share) | 39.99 |
Weighted Average Remaining Life (in years) | '6 years 2 months 12 days |
Outstanding | ' |
Options Outstanding, Number of Stock Options (in shares) | 1,092,456 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | 33.2 |
Exercisable | ' |
Options Exercisable, Number of Stock Options (in shares) | 1,001,199 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | 33 |
Exercise Price Range 3 | ' |
Information about awards outstanding | ' |
Exercise price, low end of range (in dollars per share) | 40 |
Weighted Average Remaining Life (in years) | '9 years 4 months 24 days |
Outstanding | ' |
Options Outstanding, Number of Stock Options (in shares) | 621,578 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | 57.93 |
Exercisable | ' |
Options Exercisable, Number of Stock Options (in shares) | 97,201 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | 47.85 |
STOCK_PLANS_Summary_of_Restric
STOCK PLANS (Summary of Restricted Stock Awards) (Details) (Restricted stock awards, USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Restricted stock awards | ' | ' | ' | |||
Shares | ' | ' | ' | |||
Balance at beginning of year (in shares) | 336,808 | 379,233 | 523,730 | |||
Shares granted (in shares) | 14,464 | 20,099 | 22,779 | |||
Shares vested (in shares) | -224,021 | [1] | -62,524 | [1] | -159,842 | [1] |
Shares forfeited (in shares) | -11,935 | 0 | -7,434 | |||
Balance at end of year (in shares) | ' | 336,808 | 379,233 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 115,316 | 318,088 | ' | |||
Weighted Average Grant Date Fair Value | ' | ' | ' | |||
Balance at beginning of year, weighted average grant date fair value (in dollars per share) | $28.49 | $28.06 | $27.36 | |||
Shares granted, weighted average grant date fair value (in dollars per share) | $70.88 | $47.81 | $35.55 | |||
Shares vested, weighted average grant date fair value (in dollars per share) | $25.68 | [1] | $32.10 | [1] | $26.97 | [1] |
Shares forfeited, weighted average grant date fair value (in dollars per share) | $25.76 | $0 | $24.67 | |||
Balance at end of year, weighted average grant date fair value (in dollars per share) | ' | $28.49 | $28.06 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $39.55 | $28.74 | ' | |||
[1] | Includes shares vested but not exercisable |
STOCK_PLANS_Summary_NonVested_
STOCK PLANS (Summary Non-Vested Restricted Stock Activity) (Details) (Restricted stock awards, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted stock awards | ' | ' | ' |
Shares | ' | ' | ' |
Balance at beginning of year (in shares) | 318,088 | ' | ' |
Shares granted (in shares) | 14,464 | 20,099 | 22,779 |
Shares vested (in shares) | -205,301 | ' | ' |
Shares forfeited (in shares) | -11,935 | 0 | -7,434 |
Balance at end of year (in shares) | 115,316 | 318,088 | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' |
Balance at beginning of year, weighted average grant date fair value (in dollars per share) | $28.74 | ' | ' |
Shares granted, weighted average grant date fair value (in dollars per share) | $70.88 | $47.81 | $35.55 |
Shares vested, weighted average grant date fair value (in dollars per share) | $25.80 | ' | ' |
Shares forfeited, weighted average grant date fair value (in dollars per share) | $25.76 | $0 | $24.67 |
Balance at end of year, weighted average grant date fair value (in dollars per share) | $39.55 | $28.74 | ' |
STOCK_PLANS_RSUs_Details
STOCK PLANS (RSUs) (Details) (Restricted Stock Units, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Balance at beginning of year (in shares) | 288,669 | 166,519 | 0 |
Shares granted (in shares) | 69,925 | 133,944 | 166,519 |
Shares vested (in shares) | -33,698 | -10,499 | 0 |
Shares forfeited (in shares) | -40,952 | -1,295 | 0 |
Balance at end of year (in shares) | 283,944 | 288,669 | 166,519 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Balance at beginning of year, weighted average grant date fair value (in dollars per share) | $40.83 | $34.55 | $0 |
Shares granted, weighted average grant date fair value (in dollars per share) | $67.17 | $47.97 | $34.55 |
Shares vested, weighted average grant date fair value (in dollars per share) | $39.20 | $33.06 | $0 |
Shares forfeited, weighted average grant date fair value (in dollars per share) | $41.70 | $35.55 | $0 |
Balance at end of year, weighted average grant date fair value (in dollars per share) | $47.38 | $40.83 | $34.55 |
STOCK_PLANS_Textual_Details
STOCK PLANS (Textual) (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 28, 2006 | Apr. 28, 2006 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Stock options | Stock options | Stock options | Restricted stock awards | Restricted stock awards | Restricted stock awards | Restricted Stock Units | Restricted Stock Units | Restricted Stock Units | 1995 Lincoln Stock Purchase Plan | 1995 Lincoln Stock Purchase Plan | 1995 Lincoln Stock Purchase Plan | EPI Plan | Director Plan | 2005 Plan | Minimum | Minimum | Maximum | Maximum | Maximum | ||||
Restricted Stock Units | Restricted stock awards | Restricted Stock Units | Restricted stock awards | Restricted Stock Units | 1995 Lincoln Stock Purchase Plan | ||||||||||||||||||
Stock Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum additional number of the Company's common shares that may be granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | 6,000,000 | 600,000 | ' | ' | ' | ' | ' | ' |
Common shares available for future grant under all plans (in shares) | 2,315,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award expiration (in years) | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period (in years) | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '5 years | '5 years | ' |
Aggregate intrinsic value of awards outstanding | ' | ' | ' | $85,404,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of awards exercisable | ' | ' | ' | 76,076,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of awards exercised | ' | ' | ' | 20,297,000 | 18,776,000 | 10,028,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares converted (in shares) | ' | ' | ' | ' | ' | ' | 205,301 | ' | ' | 33,698 | 10,499 | 0 | ' | ' | ' | ' | ' | 31,552 | ' | ' | ' | ' | ' |
Deferred RSUs (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,012 | ' | ' | ' | ' | ' |
Shares granted (in shares) | ' | ' | ' | ' | ' | ' | 14,464 | 20,099 | 22,779 | 69,925 | 133,944 | 166,519 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted (in dollars per share) | ' | ' | ' | ' | ' | ' | $70.88 | $47.81 | $35.55 | $67.17 | $47.97 | $34.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining weighted average life of non-vested restricted awards (in years) | ' | ' | ' | ' | ' | ' | '1 year 9 months 18 days | ' | ' | '4 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total stock-based compensation expense | 9,734,000 | 8,961,000 | 6,610,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit related to stock-based compensation recognized in the period | 3,727,000 | 3,409,000 | 2,515,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized stock-based compensation expense related to nonvested stock options, restricted shares and restricted stock units | 21,633,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of recognition of unrecognized stock-based compensation expense (in months) | '3 years 4 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dollar value of shares that each employee has the ability to purchase on the open market, on a commission-free basis annually under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 |
Shares purchased (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,653 | 4,908 | 4,466 | ' | ' | ' | ' | ' | ' | ' | ' |
COMMON_STOCK_REPURCHASE_PROGRA1
COMMON STOCK REPURCHASE PROGRAM (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
COMMON SHARE REPURCHASE PROGRAM | ' |
Shares authorized for repurchase under share repurchase program (in shares) | 45,000,000 |
Shares purchased in the open market under share repurchase program (in shares) | 2,671,614 |
Average cost per share of shares purchased in the open market under share repurchase program (in dollars per share) | $61.67 |
Remaining shares available for repurchase under the stock repurchase program (in shares) | 15,670,759 |
RETIREMENT_ANNUITY_AND_GUARANT2
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Obligations and Funded Status) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in benefit obligations | ' | ' | ' |
Benefit obligations at beginning of year | $1,033,725 | $991,979 | ' |
Service cost | 23,188 | 21,538 | 17,331 |
Interest cost | 37,225 | 41,584 | 44,161 |
Plan participants' contributions | 221 | 334 | ' |
Plan amendments | 1,623 | -3,681 | ' |
Actuarial (gain) loss | -91,851 | 70,015 | ' |
Defined Benefit Plan, Benefits Paid | 59,296 | 86,722 | ' |
Settlement/curtailment | -1,390 | -3,946 | ' |
Currency translation | -2,003 | 2,624 | ' |
Benefit obligations at end of year | 941,442 | 1,033,725 | 991,979 |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at beginning of year | 813,897 | 749,456 | ' |
Actual return on plan assets | 101,044 | 83,156 | ' |
Employer contributions | 85,456 | 68,029 | ' |
Plan participants' contributions | 221 | 334 | ' |
Benefits paid | -57,644 | -85,238 | ' |
Settlement | -1,390 | -3,798 | ' |
Currency translation | -1,589 | 1,958 | ' |
Fair value of plan assets at end of year | 939,995 | 813,897 | 749,456 |
Net amount recognized | ' | ' | ' |
Funded status at end of year | -1,447 | -219,828 | ' |
Unrecognized net loss | 258,781 | 422,042 | ' |
Unrecognized prior service cost | -2,547 | -4,101 | ' |
Unrecognized transition assets, net | 26 | 26 | ' |
Net amount recognized | $254,813 | $198,139 | ' |
RETIREMENT_ANNUITY_AND_GUARANT3
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Amounts Recognized in Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Amounts Recognized in Consolidated Balance Sheets | ' | ' |
Prepaid Pension Costs | $36,116 | $0 |
Accrued pension liability, current | -10,564 | -3,639 |
Accrued pension liability, long-term | -26,999 | -216,189 |
Accumulated other comprehensive loss, excluding tax effects | 256,260 | 417,967 |
Net amount recognized | $254,813 | $198,139 |
RETIREMENT_ANNUITY_AND_GUARANT4
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Components of Pension Cost for Defined Benefit Plans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of Pension Cost for Defined Benefit Plan | ' | ' | ' |
Service cost | $23,188 | $21,538 | $17,331 |
Interest cost | 37,225 | 41,584 | 44,161 |
Expected return on plan assets | -61,244 | -58,754 | -57,405 |
Amortization of prior service cost | -613 | -90 | -62 |
Amortization of net loss | 30,929 | 31,085 | 21,816 |
Settlement/curtailment (gain) loss | 423 | 895 | 529 |
Pension cost for defined benefit plans | $29,908 | $36,258 | $26,370 |
RETIREMENT_ANNUITY_AND_GUARANT5
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
U.S. pension plans | ' | ' |
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ' | ' |
Projected benefit obligation | $37,355 | $956,837 |
Accumulated benefit obligation | 33,416 | 905,541 |
Fair value of plan assets | 10,028 | 755,491 |
Non-U.S. pension plans | ' | ' |
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ' | ' |
Projected benefit obligation | 49,990 | 76,884 |
Accumulated benefit obligation | 42,593 | 70,492 |
Fair value of plan assets | $39,753 | $58,403 |
RETIREMENT_ANNUITY_AND_GUARANT6
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Benefit Payments for Plans) (Details) (U.S. pension plans, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
U.S. pension plans | ' |
Benefit Payments for Plans | ' |
2014 | $61,755 |
2015 | 53,992 |
2016 | 61,654 |
2017 | 59,570 |
2018 | 58,422 |
2019 through 2023 | $307,094 |
RETIREMENT_ANNUITY_AND_GUARANT7
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Weighted Average Assumptions Used to Measure the Benefit Obligation) (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted average assumptions used to measure the benefit obligation | ' | ' |
Discount rate (as a percent) | 4.70% | 3.80% |
Rate of increase in compensation (as a percent) | 4.20% | 4.00% |
RETIREMENT_ANNUITY_AND_GUARANT8
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Weighted Average Assumptions Used to Measure the Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted average assumptions used to measure the net periodic benefit cost | ' | ' | ' |
Discount rate (as a percent) | 3.80% | 4.20% | 5.30% |
Rate of increase in compensation (as a percent) | 4.10% | 4.00% | 4.00% |
Expected return on plan assets (as a percent) | 7.40% | 7.70% | 7.90% |
RETIREMENT_ANNUITY_AND_GUARANT9
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Pension Plan Assets by Level with the Fair Value Hierarchy) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Thousands, unless otherwise specified | |||||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | $939,995 | $813,897 | $749,456 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 0 | 112,933 | ' | ||
Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 907,432 | 673,881 | ' | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 32,563 | 27,083 | ' | ||
Corporate stock | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 107,763 | [1] | ' | |
Corporate stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 107,763 | ' | ||
Corporate stock | Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 0 | ' | ||
Corporate stock | Significant Unobservable Inputs (Level 3) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 0 | ' | ||
Cash and cash equivalents | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 4,686 | [2] | 5,170 | ' | |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 0 | 5,170 | ' | ||
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 4,686 | 0 | ' | ||
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 0 | 0 | ' | ||
Corporate and other obligations | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 412 | [3] | ' | |
Corporate and other obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 0 | ' | ||
Corporate and other obligations | Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 412 | ' | ||
Corporate and other obligations | Significant Unobservable Inputs (Level 3) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | ' | 0 | ' | ||
Common trusts and 103-12 investments | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 902,746 | [2] | 673,469 | [2] | ' |
Common trusts and 103-12 investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 0 | 0 | ' | ||
Common trusts and 103-12 investments | Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 902,746 | 673,469 | ' | ||
Common trusts and 103-12 investments | Significant Unobservable Inputs (Level 3) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 0 | 0 | ' | ||
Private equity funds | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 32,563 | [4] | 27,083 | [4] | ' |
Private equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 0 | 0 | ' | ||
Private equity funds | Significant Other Observable Inputs (Level 2) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | 0 | 0 | ' | ||
Private equity funds | Significant Unobservable Inputs (Level 3) | ' | ' | ' | ||
Pension plans' assets by level within the fair value hierarchy | ' | ' | ' | ||
Total assets at fair value | $32,563 | $27,083 | ' | ||
[1] | This investment category includes publicly traded equity investments directly held by the plans. Investments are valued at the unadjusted quoted close prices reported on the reporting date. | ||||
[2] | Common trusts and 103-12 investments are comprised of a number of investment funds that invest in a diverse portfolio of assets including equity securities, corporate and governmental bonds, equity and credit indexes, and money markets. Trusts are valued at the net asset value ("NAV") as determined by their custodian. NAV represents the accumulation of the unadjusted quoted close prices on the reporting date for the underlying investments divided by the total shares outstanding at the reporting dates. | ||||
[3] | This investment category is composed of publicly traded bonds and asset backed securities which are valued at the quoted closing market prices on the reporting date. | ||||
[4] | Private equity funds consist of four funds seeking capital appreciation by investing in private equity investment partnerships and venture capital companies. Funds are comprised of unrestricted and restricted publicly traded securities and privately held securities. Unrestricted securities are valued at the closing market price on the reporting date. Restricted securities may be valued at a discount from such closing public market price, depending on facts and circumstances. Privately held securities are valued at fair value as determined by the fund directors and general partners. |
Recovered_Sheet1
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Changes in Fair Value of Level 3 Pension Plan Assets) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Retirement Annuity and Guaranteed Continuous Employment Plans | ' | ' | ||
Fair value of plan assets at beginning of year | $813,897 | $749,456 | ||
Realized and unrealized (losses) gains | 101,044 | 83,156 | ||
Fair value of plan assets at end of year | 939,995 | 813,897 | ||
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Retirement Annuity and Guaranteed Continuous Employment Plans | ' | ' | ||
Fair value of plan assets at end of year | 32,563 | 27,083 | ||
Private equity funds | ' | ' | ||
Retirement Annuity and Guaranteed Continuous Employment Plans | ' | ' | ||
Fair value of plan assets at end of year | 32,563 | [1] | 27,083 | [1] |
Private equity funds | Significant Unobservable Inputs (Level 3) | ' | ' | ||
Retirement Annuity and Guaranteed Continuous Employment Plans | ' | ' | ||
Fair value of plan assets at beginning of year | 27,083 | ' | ||
Purchases, sales, issuances and settlements | 2,186 | ' | ||
Realized and unrealized (losses) gains | 3,294 | ' | ||
Fair value of plan assets at end of year | 32,563 | ' | ||
The amount of total (losses) gains during the period attributable to the change in unrealized (losses) gains relating to Level 3 net assets still held at the reporting date | $3,035 | ' | ||
[1] | Private equity funds consist of four funds seeking capital appreciation by investing in private equity investment partnerships and venture capital companies. Funds are comprised of unrestricted and restricted publicly traded securities and privately held securities. Unrestricted securities are valued at the closing market price on the reporting date. Restricted securities may be valued at a discount from such closing public market price, depending on facts and circumstances. Privately held securities are valued at fair value as determined by the fund directors and general partners. |
Recovered_Sheet2
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Defined Contribution Plans) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2006 | Dec. 31, 2006 |
Minimum | Maximum | ||||
Defined Contribution Plan | ' | ' | ' | ' | ' |
Minimum percentage of eligible compensation that may be invested by all U.S. employees covered under the plan (as a percent) | 1.00% | ' | ' | ' | ' |
Employer match of employee contributions of first 6% of eligible compensation (as a percent) | 35.00% | ' | ' | ' | ' |
Percentage of eligible compensation, matched 35% by employer (as a percent) | 6.00% | ' | ' | ' | ' |
Percentage of base pay as additional annual Company contribution to participants hired after November 1, 1997 (as a percent) | 2.00% | ' | ' | 4.00% | 10.00% |
Annual costs recognized for defined contribution plans | $10,812 | $9,405 | $8,478 | ' | ' |
Recovered_Sheet3
RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Textual) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
hours | |||
After-tax amounts included in Accumulated other comprehensive loss | ' | ' | ' |
Unrecognized actuarial net loss | $162,983 | ' | ' |
Unrecognized prior service credits | -2,307 | ' | ' |
Unrecognized transition obligations | 17 | ' | ' |
Pre-tax amounts expected to be recognized as components of net periodic benefit cost during next fiscal year | ' | ' | ' |
Unrecognized actuarial net loss | 16,104 | ' | ' |
Unrecognized prior service credits | -618 | ' | ' |
Unrecognized transition obligations | -4 | ' | ' |
Total accumulated benefit obligation for all plans | 891,397 | 976,033 | ' |
Contributions to Plans | ' | ' | ' |
Expected contribution to the plans during the next fiscal year | 20,000 | ' | ' |
Supplemental Executive Retirement Plan | ' | ' | ' |
Total net pension costs | 29,908 | 36,258 | 26,370 |
Projected benefit obligation | 941,442 | 1,033,725 | 991,979 |
Multi-Employer Plans | ' | ' | ' |
Annual pension costs of multi-employer plans for operations in Europe | 1,048 | 972 | 966 |
Other Benefits | ' | ' | ' |
Minimum percentage of every standard work week for which, the Company will provide work to employees in Cleveland, Ohio, area operations, covered under the guaranteed continuous employment plan (as a percent) | 75.00% | ' | ' |
Hours in a standard work week under Guaranteed Continuous Employment Plan (hours) | 40 | ' | ' |
Minimum notice period for the termination of Guaranteed Continuous Employment Plan (in months) | '6 months | ' | ' |
Supplemental executive retirement plan (SERP) | ' | ' | ' |
Supplemental Executive Retirement Plan | ' | ' | ' |
Total net pension costs | 2,329 | 2,254 | 2,110 |
Projected benefit obligation | $22,877 | $25,646 | $23,930 |
Equity Securities | ' | ' | ' |
Target allocation for pension plan assets | ' | ' | ' |
Target plan asset allocations range minimum | 60.00% | ' | ' |
Target plan asset allocations range maximum | 70.00% | ' | ' |
Debt Securities | ' | ' | ' |
Target allocation for pension plan assets | ' | ' | ' |
Target plan asset allocations range minimum | 30.00% | ' | ' |
Target plan asset allocations range maximum | 40.00% | ' | ' |
INCOME_TAXES_Components_of_Inc
INCOME TAXES (Components of Income (Loss) before Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. | ' | ' | ' | ' | ' | ' | ' | ' | $281,724 | $243,382 | $204,667 |
Non-U.S. | ' | ' | ' | ' | ' | ' | ' | ' | 134,717 | 126,188 | 96,664 |
Income before income taxes | $121,388 | $97,840 | $106,534 | $90,679 | $87,605 | $90,889 | $98,157 | $92,919 | $416,441 | $369,570 | $301,331 |
INCOME_TAXES_Components_of_Inc1
INCOME TAXES (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $58,099 | $72,809 | $42,510 |
Non-U.S. | 40,348 | 33,510 | 19,970 |
State and local | 8,490 | 8,172 | 6,699 |
Current income tax expense (benefit) | 106,937 | 114,491 | 69,179 |
Deferred: | ' | ' | ' |
Federal | 21,946 | -1,673 | 12,140 |
Non-U.S. | -5,734 | -750 | 2,768 |
State and local | 1,605 | 286 | 231 |
Deferred income tax expense (benefit) | 17,817 | -2,137 | 15,139 |
Total | $124,754 | $112,354 | $84,318 |
INCOME_TAXES_Income_Tax_Rate_R
INCOME TAXES (Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Differences between total income tax expense and the amount computed by applying the statutory federal income tax rate to income before income taxes | ' | ' | ' |
Statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Statutory rate of 35% applied to pre-tax income | $145,754 | $129,350 | $105,466 |
Effect of state and local income taxes, net of federal tax benefit | 7,124 | 5,598 | 4,585 |
Taxes (less) more than the U.S. tax rate on non-U.S. earnings, including utilization of tax loss carry-forwards, losses with no benefit and changes in non-U.S. valuation allowance | -17,352 | -11,263 | -13,637 |
Manufacturing deduction | -6,386 | -6,287 | -5,330 |
U.S. tax cost (benefit) of foreign source income | 995 | -4,766 | 145 |
Resolution and adjustments to uncertain tax positions | -313 | -1,493 | -5,103 |
Other | -5,068 | 1,215 | -1,808 |
Total | 124,754 | 112,354 | 84,318 |
Effective tax rate (as a percent) | 29.96% | 30.40% | 27.98% |
Total income tax payments, net of refunds | $84,567 | $78,506 | $62,600 |
INCOME_TAXES_Deferred_Taxes_De
INCOME TAXES (Deferred Taxes) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Tax loss and credit carry-forwards | $51,762 | $40,373 |
Inventory | 1,277 | 1,328 |
Other accruals | 15,709 | 14,981 |
Employee benefits | 18,909 | 17,904 |
Pension obligations | 4,643 | 82,903 |
Other | 9,828 | 12,686 |
Deferred tax assets, gross | 102,128 | 170,175 |
Valuation allowance | -49,684 | -38,799 |
Deferred tax assets, net | 52,444 | 131,376 |
Deferred tax liabilities: | ' | ' |
Property, plant and equipment | 38,653 | 41,380 |
Intangible assets | 24,014 | 19,545 |
Inventory | 7,311 | 5,783 |
Pension obligations | 7,315 | 2,940 |
Other | 8,777 | 8,769 |
Deferred tax liabilities | 86,070 | 78,417 |
Total Deferred taxes | -33,626 | 52,959 |
Tax loss carryforwards of certain subsidiaries that will expire in various years from 2014 through 2030 | 121,044 | ' |
Tax loss carryforwards of certain subsidiaries for which there is no expiration date | 77,380 | ' |
Unremitted earnings of certain non-U.S. subsidiaries that are not expected to be permanently reinvested | $8,354 | ' |
INCOME_TAXES_Unrecognized_Tax_
INCOME TAXES (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Balance at the beginning of the year | $25,255 | $26,656 |
Increase related to current year tax provisions | 1,990 | 3,838 |
Increase related to prior years' tax positions | 208 | 212 |
Increase related to acquisitions | 3,528 | 1,274 |
Decrease related to settlements with taxing authorities | -95 | -940 |
Resolution of and other decreases in prior years' tax liabilities | -3,491 | -5,964 |
Other | -1,488 | 179 |
Balance at the end of the year | 25,907 | 25,255 |
Interest and penalties expense (benefit) | 492 | 893 |
Accrued interest and penalties | 10,257 | 10,295 |
Total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate | 13,739 | 14,839 |
Reasonably possible further reduction in prior years' unrecognized tax benefits during the next twelve months | 4,284 | ' |
Possible increase in Canadian federal and provincial tax due to reassessment | 58,824 | ' |
Possible interest on Canadian tax reassessment | 16,022 | ' |
Interest percentage charged on tax assessment (percent) | 5.00% | ' |
Rate of interest to be earned on tax deposit upon favorable outcome (percent) | 1.00% | ' |
Tax deposit | $84,128 | ' |
DERIVATIVES_Fair_Value_of_Deri
DERIVATIVES (Fair Value of Derivative Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Current Assets | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative assets | $1,734 | $1,593 |
Other Current Liabilities | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative liabilities | 494 | 1,227 |
Designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative assets | 706 | 352 |
Designated as hedging instruments | Foreign exchange contracts | Other Current Liabilities | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative liabilities | 219 | 325 |
Not designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative assets | 766 | 510 |
Not designated as hedging instruments | Foreign exchange contracts | Other Current Liabilities | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative liabilities | 228 | 902 |
Not designated as hedging instruments | Commodity contracts | Other Current Assets | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative assets | 262 | 731 |
Not designated as hedging instruments | Commodity contracts | Other Current Liabilities | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivative liabilities | $47 | $0 |
DERIVATIVES_Derivatives_Income
DERIVATIVES (Derivatives Income Statement Impact) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign exchange contracts | Selling, General and Administrative Expenses [Member] | ' | ' |
Effects of undesignated derivative instruments on the entity's Consolidated Statements of Income | ' | ' |
Gains (losses) recognized in income | $215 | $3,711 |
Commodity contracts | Cost of goods sold | ' | ' |
Effects of undesignated derivative instruments on the entity's Consolidated Statements of Income | ' | ' |
Gains (losses) recognized in income | $2,882 | ($1,117) |
DERIVATIVES_AOCI_Impact_Detail
DERIVATIVES (AOCI Impact) (Details) (Foreign exchange contracts, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair values of derivative instruments | ' | ' |
Gain (loss) recognized in AOCI, net of tax | $369 | $80 |
Sales | ' | ' |
Fair values of derivative instruments | ' | ' |
Gain (loss) reclassified from AOCI to earnings | 619 | 931 |
Cost of goods sold | ' | ' |
Fair values of derivative instruments | ' | ' |
Gain (loss) reclassified from AOCI to earnings | 418 | 234 |
Selling, General and Administrative Expenses [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Gain (loss) reclassified from AOCI to earnings | ($67) | $0 |
DERIVATIVES_Textual_Details
DERIVATIVES (Textual) (Details) (USD $) | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Designated as hedging instruments | Designated as hedging instruments | Not designated as hedging instruments | Not designated as hedging instruments | Not designated as hedging instruments | Not designated as hedging instruments | Not designated as hedging instruments | Not designated as hedging instruments | ||
Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Foreign exchange contracts | Silver forward contract | Silver forward contract | Copper forward contract | Copper forward contract | ||
ozt | ozt | lb | lb | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum period for which derivative contracts cover currency and commodity exposures (in years) | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Hedge ineffectiveness was immaterial | 'Hedge ineffectiveness was immaterial for the three years ended December 31, 2013. | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of derivative instruments | ' | $36,880 | $39,597 | $186,158 | $189,259 | ' | ' | ' | ' |
Notional amounts of forward contracts that are not designated as hedges | ' | ' | ' | ' | ' | 290,000 | 275,000 | 375,000 | 375,000 |
Expected gain to be reclassified from AOCI, net of tax, to earnings | $369 | ' | ' | ' | ' | ' | ' | ' | ' |
Period for expected loss to be reclassified from AOCI, net of tax, to earnings (in months) | '12 months | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_Summary_of_Fair_Val
FAIR VALUE (Summary of Fair Value Assets and Liabilities) (Details) (USD $) | Nov. 30, 2013 | Dec. 31, 2013 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | SSCO Manufacturing, Inc. (d/b/a Arc Products) | SSCO Manufacturing, Inc. (d/b/a Arc Products) | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | |
Fair value | Fair value | Fair value | Fair value | Fair value | Fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | ||||
Foreign exchange contracts | Foreign exchange contracts | Commodity contracts | Commodity contracts | Foreign exchange contracts | Foreign exchange contracts | Commodity contracts | Commodity contracts | Foreign exchange contracts | Foreign exchange contracts | Commodity contracts | Commodity contracts | Foreign exchange contracts | Foreign exchange contracts | Commodity contracts | Commodity contracts | ||||||||||||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | $1,472 | $862 | $262 | $731 | ' | ' | $0 | $0 | $0 | $0 | ' | ' | $1,472 | $862 | $262 | $731 | ' | ' | $0 | $0 | $0 | $0 |
Total assets | ' | ' | ' | 1,734 | 1,593 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 1,734 | 1,593 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | 447 | 1,227 | 47 | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 447 | 1,227 | 47 | ' | ' | ' | 0 | 0 | 0 | ' |
Contingent consideration | ' | 5,375 | 3,806 | 5,375 | 4,894 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 5,375 | 4,894 | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 17,225 | ' | ' | 16,974 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 16,974 | ' | ' | ' | ' | ' |
Deferred compensation | ' | ' | ' | 20,132 | 16,882 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 20,132 | 16,882 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | $42,975 | $23,003 | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | $20,626 | $18,109 | ' | ' | ' | ' | $22,349 | $4,894 | ' | ' | ' | ' |
FAIR_VALUE_Textual_Details
FAIR VALUE (Textual) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Nov. 30, 2013 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
SSCO Manufacturing, Inc. (d/b/a Arc Products) | SSCO Manufacturing, Inc. (d/b/a Arc Products) | Minimum [Member] | Maximum | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | |||
Estimate of Fair Value Measurement [Member] | Estimate of Fair Value Measurement [Member] | |||||||
Fair value | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | ' | ' | $3,806 | $5,375 | ' | ' | $5,375 | $4,894 |
Non-cash accretion of contingent consideration | ' | ' | ' | 481 | ' | ' | ' | ' |
Period of estimated sales as basis for contingent consideration (in years) | '3 years | ' | '5 years | '5 years | ' | ' | ' | ' |
Weighted average discount rate (percent) | 16.30% | ' | ' | ' | ' | ' | ' | ' |
Weighted average compound annual revenue growth rate (percent) | ' | ' | ' | ' | 14.80% | 18.80% | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | $17,225 | ' | ' | ' | ' | $16,974 | ' |
INVENTORY_Details
INVENTORY (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | ' |
Percentage of total inventories valued using the LIFO method (as a percent) | 38.00% | 34.00% | 31.00% |
Excess of current cost over LIFO cost | $70,882 | $72,173 | ' |
LEASES_Details
LEASES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets held under capital leases | ' | ' | ' |
Less: accumulated depreciation | ($100) | ($163) | ' |
Net capital leases | 471 | 487 | ' |
Total future minimum lease payments for noncancelable operating leases | ' | ' | ' |
2014 | 13,263 | ' | ' |
2015 | 10,391 | ' | ' |
2016 | 8,240 | ' | ' |
2017 | 5,637 | ' | ' |
2018 | 4,071 | ' | ' |
Thereafter | 6,568 | ' | ' |
Rental expense | 18,642 | 17,751 | 15,221 |
Buildings | ' | ' | ' |
Assets held under capital leases | ' | ' | ' |
Gross capital leases | 461 | 441 | ' |
Machinery and equipment | ' | ' | ' |
Assets held under capital leases | ' | ' | ' |
Gross capital leases | $110 | $209 | ' |
CONTINGENCIES_Details
CONTINGENCIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Accrual for contingent liabilities, primarily for product liability claims | $2,735 | $5,636 |
Asset for recoveries from insurance carriers related to the insured claims outstanding | $0 | $1,311 |
PRODUCT_WARRANTY_COSTS_Details
PRODUCT WARRANTY COSTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in the carrying amount of product warranty accruals | ' | ' | ' |
Balance at beginning of year | $15,304 | $15,781 | $16,879 |
Accruals for warranties | 12,786 | 10,872 | 10,395 |
Settlements | -12,794 | -11,477 | -11,260 |
Foreign currency translation | -116 | 128 | -233 |
Balance at end of year | $15,180 | $15,304 | $15,781 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly financial data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $714,791 | $691,875 | $727,432 | $718,573 | $684,648 | $697,552 | $744,045 | $727,122 | $2,852,671 | $2,853,367 | $2,694,609 |
Gross profit | 243,047 | 232,697 | 240,338 | 226,572 | 213,032 | 213,362 | 224,997 | 215,265 | 942,654 | 866,656 | 736,737 |
Income before income taxes | 121,388 | 97,840 | 106,534 | 90,679 | 87,605 | 90,889 | 98,157 | 92,919 | 416,441 | 369,570 | 301,331 |
Net income | 88,324 | 66,044 | 72,606 | 66,806 | 62,084 | 64,765 | 66,319 | 64,243 | 293,780 | 257,411 | 217,186 |
Basic earnings per share (in dollars per share) | $1.09 | $0.81 | $0.88 | $0.81 | $0.75 | $0.78 | $0.80 | $0.77 | $3.58 | $3.10 | $2.60 |
Diluted earnings per share (in dollars per share) | $1.07 | $0.80 | $0.87 | $0.80 | $0.74 | $0.77 | $0.79 | $0.76 | $3.54 | $3.06 | $2.56 |
Rationalization and asset impairment net gains (charges) | -259 | -1,627 | -851 | -1,051 | -5,037 | -3,059 | -1,258 | ' | -8,463 | -9,354 | -282 |
Rationalization and asset impairment net gains (charges), after-tax | -223 | -1,595 | -579 | -673 | -3,823 | -2,704 | -915 | ' | ' | ' | ' |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 21,366 | 10,735 | 282 |
Asia Pacific Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly financial data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 266,282 | 324,482 | 376,276 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 6,071 | 4,993 | -110 |
Other Asset Impairment Charges | ' | 4,675 | ' | ' | ' | ' | ' | ' | 4,444 | ' | ' |
Other Asset Impairment Charges Net of Tax | ' | 4,503 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land Sales | -705 | ' | ' | ' | ' | ' | ' | ' | -705 | ' | ' |
Noncontrolling Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly financial data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Asset Impairment Charges | ' | 1,021 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land Sales | -47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
North America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly financial data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,652,769 | 1,580,818 | 1,309,499 |
Special items charge (Gain) | ' | ' | ' | ' | ' | ' | ' | ' | 1,052 | 827 | 0 |
South America Welding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly financial data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 195,895 | 161,483 | 156,684 |
Rationalization and asset impairment net gains (charges) | ' | ' | ' | ' | ' | ' | -1,381 | ' | ' | ' | ' |
Rationalization and asset impairment net gains (charges), after-tax | ' | ' | ' | ' | ' | ' | -906 | ' | ' | ' | ' |
Special items charge (Gain) | ' | ' | $2,538 | $9,660 | ' | ' | ' | ' | $12,198 | $1,381 | $0 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for doubtful accounts | ' | ' | ' | |||
Changes in valuation and qualifying accounts | ' | ' | ' | |||
Balance at Beginning of Period | $8,654 | $7,079 | $7,855 | |||
Additions: Charged to Costs and Expenses | 2,671 | 3,368 | 2,173 | |||
Additions: Charged to Other Accounts | 49 | [1] | 68 | [1] | -303 | [1] |
Deductions | 2,976 | [2] | 1,861 | [2] | 2,646 | [2] |
Balance at End of Period | $8,398 | $8,654 | $7,079 | |||
[1] | Currency translation adjustment. | |||||
[2] | Uncollectible accounts written-off, net of recoveries. |