Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document and Entity Information | |
Entity Registrant Name | LINCOLN ELECTRIC HOLDINGS INC |
Entity Central Index Key | 59,527 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 72,459,631 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 645,166 | $ 715,777 | $ 1,967,806 | $ 2,129,370 |
Cost of goods sold | 446,272 | 474,168 | 1,322,741 | 1,411,158 |
Gross profit | 198,894 | 241,609 | 645,065 | 718,212 |
Selling, general & administrative expenses | 128,299 | 136,424 | 385,945 | 419,495 |
Rationalization and asset impairment charges | 18,285 | 29,068 | 19,524 | 29,887 |
Pension settlement charges | 136,331 | 0 | 136,331 | 0 |
Operating income (loss) | (84,021) | 76,117 | 103,265 | 268,830 |
Other income (expense): | ||||
Interest income | 692 | 627 | 2,023 | 2,465 |
Equity earnings in affiliates | 310 | 1,172 | 2,138 | 4,308 |
Other income | 296 | 1,043 | 3,223 | 3,204 |
Interest expense | (5,803) | (1,174) | (12,034) | (3,730) |
Total other income (expense) | (4,505) | 1,668 | (4,650) | 6,247 |
Income (loss) before income taxes | (88,526) | 77,785 | 98,615 | 275,077 |
Income taxes | (28,045) | 32,953 | 19,902 | 96,532 |
Net income (loss) including non-controlling interests | (60,481) | 44,832 | 78,713 | 178,545 |
Non-controlling interests in subsidiaries’ loss | (15) | (857) | (73) | (929) |
Net income (loss) | $ (60,466) | $ 45,689 | $ 78,786 | $ 179,474 |
Basic earnings (loss) per share (in dollars per share) | $ (0.82) | $ 0.58 | $ 1.05 | $ 2.25 |
Diluted earnings (loss) per share (in dollars per share) | (0.82) | 0.57 | 1.04 | 2.22 |
Cash dividends declared per share (in dollars per share) | $ 0.29 | $ 0.23 | $ 0.87 | $ 0.69 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) including non-controlling interests | $ (60,481) | $ 44,832 | $ 78,713 | $ 178,545 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, net of tax of $116 and $334 in the three and nine months ended September 30, 2015; $(159) and $25 in the three and nine months ended September 30, 2014 | (210) | 313 | 311 | (284) |
Defined benefit pension plan activity, net of tax of $50,079 and $54,449 in the three and nine months ended September 30, 2015; $1,974 and $5,235 in the three and nine months ended September 30, 2014 | 80,766 | 2,909 | 87,875 | 7,989 |
Currency translation adjustment | (47,225) | (49,550) | (88,627) | (49,778) |
Other comprehensive income (loss): | 33,331 | (46,328) | (441) | (42,073) |
Comprehensive income (loss) | (27,150) | (1,496) | 78,272 | 136,472 |
Comprehensive loss attributable to non-controlling interests | (91) | (797) | (663) | (164) |
Comprehensive income (loss) attributable to shareholders | $ (27,059) | $ (699) | $ 78,935 | $ 136,636 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges, tax (benefit) | $ 116 | $ (159) | $ 334 | $ 25 |
Unrecognized amounts from defined benefit pension plans, tax | $ 50,079 | $ 1,974 | $ 54,449 | $ 5,235 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 364,345 | $ 278,379 |
Accounts receivable (less allowance for doubtful accounts of $7,090 in 2015; $7,858 in 2014) | 310,824 | 337,664 |
Inventories: | ||
Raw materials | 86,708 | 112,408 |
Work-in-process | 43,124 | 41,156 |
Finished goods | 178,793 | 187,493 |
Total inventory | 308,625 | 341,057 |
Other current assets | 85,064 | 139,102 |
Total Current Assets | 1,068,858 | 1,096,202 |
Property, Plant and Equipment | ||
Land | 45,803 | 46,553 |
Buildings | 365,707 | 371,400 |
Machinery and equipment | 704,965 | 711,737 |
Property, Plant and Equipment, Gross | 1,116,475 | 1,129,690 |
Less accumulated depreciation | 694,535 | 690,944 |
Property, Plant and Equipment, Net | 421,940 | 438,746 |
Non-current assets | 437,293 | 404,267 |
TOTAL ASSETS | 1,928,091 | 1,939,215 |
LIABILITIES AND EQUITY | ||
Short-term debt | 2,453 | 68,166 |
Trade accounts payable | 166,858 | 209,745 |
Other current liabilities | 268,118 | 214,484 |
Total Current Liabilities | 437,429 | 492,395 |
Long-Term Liabilities | ||
Long-term debt, less current portion | 350,899 | 2,488 |
Accrued pensions | 18,304 | 32,803 |
Other long-term liabilities | 109,490 | 125,748 |
Total Long-Term Liabilities | 478,693 | 161,039 |
Shareholders’ Equity | ||
Common shares | 9,858 | 9,858 |
Additional paid-in capital | 269,179 | 258,816 |
Retained earnings | 2,100,334 | 2,086,174 |
Accumulated other comprehensive loss | (288,473) | (288,622) |
Treasury shares | (1,079,816) | (783,677) |
Total Shareholders’ Equity | 1,011,082 | 1,282,549 |
Non-controlling interests | 887 | 3,232 |
Total Equity | 1,011,969 | 1,285,781 |
TOTAL LIABILITIES AND EQUITY | $ 1,928,091 | $ 1,939,215 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 7,090 | $ 7,858 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 78,786 | $ 179,474 |
Non-controlling interests in subsidiaries’ loss | (73) | (929) |
Net income including non-controlling interests | 78,713 | 178,545 |
Adjustments to reconcile Net income including non-controlling interests to Net cash provided by operating activities: | ||
Rationalization and asset impairment charges | 6,120 | 29,447 |
Depreciation and amortization | 47,897 | 53,017 |
Equity earnings in affiliates, net | (252) | (1,901) |
Deferred income taxes | (57,690) | 6,155 |
Stock-based compensation | 5,942 | 6,268 |
Pension expense and settlement charges | 151,848 | 9,634 |
Pension contributions and payments | (52,121) | (34,643) |
Foreign Currency (Gain) Loss | (13,264) | 19,968 |
Other, net | 12,705 | (2,350) |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Decrease (increase) in accounts receivable | 14,661 | (22,388) |
Decrease (increase) in inventories | 27,824 | (11,153) |
Increase in other current assets | (4,766) | (27,963) |
Decrease in trade accounts payable | (34,629) | (11,534) |
Increase in other current liabilities | 51,798 | 81,262 |
Net change in other long-term assets and liabilities | 650 | (4,311) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 235,436 | 268,053 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (40,187) | (55,430) |
Acquisition of businesses, net of cash acquired | (33,882) | (892) |
Proceeds from sale of property, plant and equipment | 2,173 | 17,046 |
Other Investing Activities | (79) | 778 |
NET CASH USED BY INVESTING ACTIVITIES | (71,975) | (38,498) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from short-term borrowings | 10,618 | 8,135 |
Payments on short-term borrowings | (8,739) | (11,463) |
Amounts due banks, net | (37,089) | 75,958 |
Proceeds from Issuance of Long-term Debt | 356,369 | 57 |
Payments on long-term borrowings | (6,739) | (1,573) |
Proceeds from exercise of stock options | 4,600 | 5,945 |
Excess tax benefits from stock-based compensation | 1,487 | 3,361 |
Purchase of shares for treasury | (297,804) | (249,403) |
Cash dividends paid to shareholders | (65,942) | (55,395) |
Other financing activities | (8,040) | (2,330) |
NET CASH USED BY FINANCING ACTIVITIES | (51,279) | (226,708) |
Effect of exchange rate changes on Cash and cash equivalents | (26,216) | (23,149) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 85,966 | (20,302) |
Cash and cash equivalents at beginning of period | 278,379 | 299,825 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 364,345 | $ 279,523 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | As used in this report, the term “Company,” except as otherwise indicated by the context, means Lincoln Electric Holdings, Inc. and its wholly-owned and majority-owned subsidiaries for which it has a controlling interest. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these unaudited consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. However, in the opinion of management, these unaudited consolidated financial statements contain all the adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position, results of operations and cash flows for the interim periods. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 . The accompanying Consolidated Balance Sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Certain reclassifications have been made to the prior year financial statements to conform to current year classifications. Venezuela — Highly Inflationary Economy Venezuela is a highly inflationary economy under 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 remeasurement of monetary assets and liabilities are reflected in current earnings. In January 2014, the Venezuelan government announced the formation of the National Center of Foreign Trade (“CENCOEX”) to replace the Commission for the Administration of Currency Exchange (“CADIVI”). Effective January 24, 2014, the exchange rate applicable to the settlement of certain transactions through CENCOEX, including payments of dividends and royalties, changed to utilize the Complementary System of Foreign Currency Administration ("SICAD") auction-based exchange rate (the "SICAD rate") as opposed to the official rate. In February 2014, the government announced a new market based foreign exchange system, the SICAD II. The exchange rate established through SICAD II fluctuated daily and was significantly higher than both the official rate and the SICAD rate. At March 31, 2014, the Company determined that the rate used in remeasuring the Venezuelan operation's financial statements into U.S. dollars would change to the SICAD rate as future remittances for dividend payments could be transacted at the SICAD rate. At March 31, 2014, the SICAD rate was 10.7 bolivars to the U.S. dollar, which resulted in a remeasurement loss on the bolivar-denominated monetary net asset position of $17,665 which was recorded in Selling, general & administrative expenses in the three months ended March 31, 2014. Additionally, the Company incurred higher Cost of goods sold of $3,468 during the second quarter of 2014, related to the adoption of the SICAD rate. The SICAD rate is determined by periodic auctions which may result in additional losses or gains on a remeasurement of the bolivar-denominated monetary net asset position. In February 2015, the Venezuelan government eliminated the SICAD II rate and announced a new exchange market called the Marginal Currency System ("SIMADI"), which allows for trading based on supply and demand. At September 30, 2015, the Company determined that the rate used in remeasuring the Venezuelan operation's financial statements into U.S. dollars would change to the SIMADI rate as the SIMADI rate most appropriately approximates the rates used to transact business in its Venezuelan operations. At September 30, 2015, the SIMADI rate was 199.4 bolivars to the U.S. dollar, resulting in a remeasurement charge on the bolivar-denominated monetary net asset position of $4,334 . This foreign exchange loss was recorded in Selling, general & administrative expenses during the three months ended September 30, 2015. Additionally, the Company recorded a $22,172 lower of cost or net realizable value inventory adjustment within Cost of goods sold during the three months ended September 30, 2015, related to the adoption of the SIMADI rate. If in the future the Company were to convert bolivars at a rate other than the SIMADI rate, the Company may realize additional losses or gains to earnings. Future impacts to earnings of applying highly inflationary accounting for Venezuela on the Company’s consolidated financial statements will be dependent upon the applied currency exchange mechanisms, the 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 $278 at September 30, 2015 , including $301 of cash and cash equivalents and the bolivar-denominated monetary net liability position was $1,264 at December 31, 2014 , including $2,124 of cash and cash equivalents. New Accounting Pronouncements Adopted: In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 applies to all inventory that is measured using the first-in, first-out and average cost valuation methods. ASU 2015-11 requires entities to measure inventory at lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. The amendments should be applied prospectively and are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. ASU 2015-11 was adopted by the Company effective July 1, 2015 and did not have a significant impact on the Company's financial statements. New Accounting Pronouncements to be Adopted: In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 requires an acquiring entity to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments also require an entity to record the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. An entity must present separately on the face of the statement of operations or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments should be applied prospectively and are effective for financial statements issued for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of ASU 2015-16 on the Company's financial statements. In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share." ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and removes the requirement to make certain disclosures for these investments. The amendment should be applied retrospectively and is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2015-07 on the Company's financial statement disclosures. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30)." ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the new amendment. The new guidance will be applied on a retrospective basis to each prior reporting period presented. Upon transition, the Company is required to comply with applicable disclosures for a change in accounting principle. The amendment is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2015-03 on the Company's financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the amendment provides five steps that an entity should apply when recognizing revenue. The amendment also specifies the accounting of some costs to obtain or fulfill a contract with a customer and expands the disclosure requirements around contracts with customers. An entity can either adopt this amendment retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application. In August 2015, the FASB issued ASU 2015-14, " Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on the Company's financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ (60,466 ) $ 45,689 $ 78,786 $ 179,474 Denominator: Basic weighted average shares outstanding 73,754 78,817 74,999 79,779 Effect of dilutive securities - Stock options and awards — 908 765 923 Diluted weighted average shares outstanding 73,754 79,725 75,764 80,702 Basic earnings (loss) per share $ (0.82 ) $ 0.58 $ 1.05 $ 2.25 Diluted earnings (loss) per share $ (0.82 ) $ 0.57 $ 1.04 $ 2.22 For the three months ended September 30, 2015 and 2014 , common shares subject to equity-based awards of 1,279,664 and 259,336 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. For the nine months ended September 30, 2015 and 2014 , common shares subject to equity-based awards of 508,070 and 260,964 , respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS During August 2015, the Company acquired Specialised Welding Products ("SWP"). SWP, based in Melbourne, Australia, is a provider of specialty welding consumables and fabrication, maintenance and repair services for alloy and wear resistant products commonly used in mining and energy sector applications. The acquisition broadens the Company's presence and specialty alloy offering in Australia and New Zealand. During August 2015, the Company acquired Rimrock Holdings Corporation ("Rimrock"). Rimrock is a manufacturer of industrial automation products and robotic systems with two divisions, Wolf Robotics LLC, based in Fort Collins, Colorado, and Rimrock Corporation, based in Columbus, Ohio. Wolf Robotics integrates robotic welding and cutting systems predominantly for heavy fabrication and transportation OEMs and suppliers. The acquisition advances the Company's leadership position in automated welding and cutting solutions. Rimrock Corporation designs and manufactures automated spray systems and turnkey robotic systems for the die casting, foundry and forging markets. The Company is currently reviewing strategic options for Rimrock Corporation. Combined annual revenues for SWP and Rimrock at the dates of acquisition were approximately $56,000 . During October 2014, the Company acquired substantially all of the assets of Easom Automation Systems, Inc. ("Easom"). Easom, based in Detroit, Michigan, is an integrator and manufacturer of automation and positioning solutions, serving heavy fabrication, aerospace and automotive OEMs and suppliers. The acquisition advances the Company's leadership position in automated welding and cutting solutions. Easom has annual sales of approximately $30,000 . In addition, during 2014, the Company acquired the remaining interest in its majority-owned joint venture, Harris Soldas Especiais S.A. Pro forma information related to these acquisitions has not been presented because the impact on the Company’s Consolidated Statements of Operations is not material. Acquired companies are included in the Company’s consolidated financial statements as of the date of acquisition. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2015 | |
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 primarily 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 Asia Pacific Welding segment primarily includes welding operations in China and Australia. The South America Welding segment primarily includes welding operations in Brazil, Colombia and Venezuela. 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. Financial information for the reportable segments follows: North America Welding Europe Welding Asia Pacific Welding South America Welding The Harris Products Group Corporate / Eliminations Consolidated Three Months Ended September 30, 2015 Net sales $ 408,416 $ 80,596 $ 45,505 $ 47,727 $ 62,922 $ — $ 645,166 Inter-segment sales 28,055 4,631 2,794 36 2,307 (37,823 ) — Total $ 436,471 $ 85,227 $ 48,299 $ 47,763 $ 65,229 $ (37,823 ) $ 645,166 EBIT, as adjusted $ 79,743 $ 8,337 $ 2,006 $ 1,845 $ 6,422 $ (646 ) $ 97,707 Special items charge (gain) 149,404 268 4,944 26,506 — — 181,122 EBIT $ (69,661 ) $ 8,069 $ (2,938 ) $ (24,661 ) $ 6,422 $ (646 ) $ (83,415 ) Interest income 692 Interest expense (5,803 ) Income (loss) before income taxes $ (88,526 ) Three Months Ended September 30, 2014 Net sales $ 439,621 $ 107,507 $ 57,404 $ 32,862 $ 78,383 $ — $ 715,777 Inter-segment sales 30,365 4,533 3,595 9 2,009 (40,511 ) — Total $ 469,986 $ 112,040 $ 60,999 $ 32,871 $ 80,392 $ (40,511 ) $ 715,777 EBIT, as adjusted $ 84,450 $ 15,221 $ (304 ) $ (590 ) $ 8,947 $ (324 ) $ 107,400 Special items charge (gain) — (81 ) 28,567 582 — — 29,068 EBIT $ 84,450 $ 15,302 $ (28,871 ) $ (1,172 ) $ 8,947 $ (324 ) $ 78,332 Interest income 627 Interest expense (1,174 ) Income (loss) before income taxes $ 77,785 Nine Months Ended September 30, 2015 Net sales $ 1,236,479 $ 259,915 $ 143,798 $ 123,064 $ 204,550 $ — $ 1,967,806 Inter-segment sales 79,797 12,687 9,028 154 7,034 (108,700 ) — Total $ 1,316,276 $ 272,602 $ 152,826 $ 123,218 $ 211,584 $ (108,700 ) $ 1,967,806 EBIT, as adjusted $ 228,421 $ 26,566 $ 7,378 $ 6,373 $ 22,221 $ 28 $ 290,987 Special items charge (gain) 149,404 1,507 4,944 26,506 — — 182,361 EBIT $ 79,017 $ 25,059 $ 2,434 $ (20,133 ) $ 22,221 $ 28 $ 108,626 Interest income 2,023 Interest expense (12,034 ) Income (loss) before income taxes $ 98,615 Total assets $ 1,139,513 $ 325,477 $ 267,507 $ 85,755 $ 145,436 $ (35,597 ) $ 1,928,091 Nine months ended September 30, 2014 Net sales $ 1,271,017 $ 328,487 $ 185,687 $ 115,906 $ 228,273 $ — $ 2,129,370 Inter-segment sales 96,668 15,887 11,644 73 6,389 (130,661 ) — Total $ 1,367,685 $ 344,374 $ 197,331 $ 115,979 $ 234,662 $ (130,661 ) $ 2,129,370 EBIT, as adjusted $ 247,009 $ 39,412 $ (579 ) $ 16,170 $ 22,183 $ 3,167 $ 327,362 Special items charge (gain) (68 ) 923 28,450 21,715 — — 51,020 EBIT $ 247,077 $ 38,489 $ (29,029 ) $ (5,545 ) $ 22,183 $ 3,167 $ 276,342 Interest income 2,465 Interest expense (3,730 ) Income (loss) before income taxes $ 275,077 Total assets $ 1,205,179 $ 389,122 $ 285,626 $ 139,908 $ 161,069 $ (68,385 ) $ 2,112,519 In the three and nine months ended September 30, 2015 , special items in Europe Welding and Asia Pacific Welding reflect rationalization activity charges. North America Welding special items include rationalization activity charges, charges related to pension settlements and charges related to the impairment of long-lived assets and goodwill. South America Welding special items reflect Venezuelan foreign exchange remeasurement losses related to the adoption of a new foreign exchange mechanism. In the three and nine months ended September 30, 2014 , special items in North America Welding and Europe Welding reflect rationalization activity charges and credits. Asia Pacific Welding special items reflect net charges related to the impairment of long-lived assets partially offset by gains on the sale of real estate. In the three months ended September 30, 2014 , special items in South America Welding reflect rationalization activity charges and in the nine months ended September 30, 2014 reflect rationalization activity charges and Venezuelan foreign exchange remeasurement losses related to the adoption of a new foreign exchange mechanism. |
RATIONALIZATION AND ASSET IMPAI
RATIONALIZATION AND ASSET IMPAIRMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
RATIONALIZATION AND ASSET IMPAIRMENTS | RATIONALIZATION AND ASSET IMPAIRMENTS The Company recorded rationalization charges of $19,524 for the nine months ended September 30, 2015 . The net charges include $13,434 primarily related to employee severance and $6,090 in non-cash charges primarily related to asset impairments. A description of each restructuring plan and the related costs follows: North America Welding Plans: During 2015, the Company initiated a rationalization plan within North America Welding that includes a voluntary separation incentive program covering certain U.S.-based employees. The Company recorded rationalization charges of $3,341 in the nine months ended September 30, 2015 related to the program, which was recognized in Other current liabilities at September 30, 2015 . The Company expects the plan liabilities will be substantially paid during 2015. Due to the presence of impairment indicators during the third quarter of 2015, the Company performed an impairment test of certain long-lived assets and goodwill of a business unit, resulting in a $9,732 non-cash impairment charge. The Company determined that for certain long-lived assets of the business unit the carrying value of the assets exceeded the fair value, resulting in an impairment. This result was considered a possible indication of goodwill impairment therefore the Company performed an interim goodwill impairment test, using a combination of income and market valuation approaches for the related business unit, resulting in an impairment to the carrying value of goodwill. Europe Welding Plans: During 2015, the Company initiated a rationalization plan within Europe Welding. The plan includes headcount restructuring to better align the cost structures with economic conditions and operating needs. During the nine months ended September 30, 2015 , the Company recorded charges relating to the Europe Welding plans of $1,507 , which represent employee severance and other related costs. Additional charges related to the completion of these plans are expected to be immaterial. At September 30, 2015 , liabilities relating to the Europe Welding plans of $165 were recognized in Other current liabilities, which will be substantially paid during 2015. Asia Pacific Welding Plans: During the third quarter of 2014, the Company identified net assets within the segment for planned divestiture which were classified as held for sale. During the third quarter of 2015, the Company initiated a rationalization plan to restructure headcount and better align the cost structures with economic conditions and operating needs. As part of this plan, the net assets held for sale were reclassified as held for use as the sale was no longer deemed probable. During the nine months ended September 30, 2015 , the Company recorded net charges relating to these actions of $4,944 , which primarily represent employee severance and other related costs. The Company expects additional charges up to $400 related to the completion of these actions. At September 30, 2015 , liabilities relating to the Asia Pacific Welding plan of $7,898 were recognized in Other current liabilities, which will be substantially paid during 2016. The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues evaluating its cost structure and additional rationalization actions may result in charges in future periods. The following tables summarize the activity related to the rationalization liabilities by segment for the nine months ended September 30, 2015 : North Europe Asia Pacific Consolidated Balance, December 31, 2014 $ — $ 305 $ — $ 305 Payments and other adjustments — (1,647 ) (688 ) (2,335 ) Charged to expense 3,341 1,507 8,586 13,434 Balance, September 30, 2015 $ 3,341 $ 165 $ 7,898 $ 11,404 |
COMMON SHARE REPURCHASE PROGRAM
COMMON SHARE REPURCHASE PROGRAM | 9 Months Ended |
Sep. 30, 2015 | |
COMMON SHARE REPURCHASE PROGRAM | |
COMMON SHARE REPURCHASE PROGRAM | COMMON SHARE REPURCHASE PROGRAM The Company has a share repurchase program for up to 45 million of the Company’s common shares. At management’s discretion, the Company repurchases its common shares from time to time in the open market, depending on market conditions, stock price and other factors. During the three and nine month periods ended September 30, 2015 , the Company purchased a total of 2.4 million and 4.7 million shares, respectively. As of September 30, 2015 , there remained 6.6 million common shares available for repurchase under this program. The repurchased common shares remain in treasury and have not been retired. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Changes in equity for the nine months ended September 30, 2015 are as follows: Shareholders’ Equity Non-controlling Interests Total Equity Balance, December 31, 2014 $ 1,282,549 $ 3,232 $ 1,285,781 Comprehensive income (loss): Net income (loss) 78,786 (73 ) 78,713 Other comprehensive income (loss) 149 (590 ) (441 ) Total comprehensive income (loss) 78,935 (663 ) 78,272 Cash dividends declared - $0.87 per share (64,626 ) — (64,626 ) Issuance of shares under benefit plans 12,028 — 12,028 Purchase of shares for treasury (297,804 ) — (297,804 ) Transactions with non-controlling interests — (1,682 ) (1,682 ) Balance, September 30, 2015 $ 1,011,082 $ 887 $ 1,011,969 Changes in equity for the nine months ended September 30, 2014 are as follows: Shareholders’ Equity Non-controlling Interests Total Equity Balance, December 31, 2013 $ 1,526,602 $ 4,086 $ 1,530,688 Comprehensive income (loss): Net income (loss) 179,474 (929 ) 178,545 Other comprehensive income (loss) (42,838 ) 765 (42,073 ) Total comprehensive income (loss) 136,636 (164 ) 136,472 Cash dividends declared - $0.69 per share (54,646 ) — (54,646 ) Issuance of shares under benefit plans 15,634 — 15,634 Purchase of shares for treasury (249,403 ) — (249,403 ) Transactions with non-controlling interests (1,484 ) (782 ) (2,266 ) Balance, September 30, 2014 $ 1,373,339 $ 3,140 $ 1,376,479 The following tables set forth the total changes in accumulated other comprehensive income (loss) ("AOCI") by component, net of taxes for the three months ended September 30, 2015 and 2014 : Three Months Ended September 30, 2015 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at June 30, 2015 $ 512 $ (190,784 ) $ (131,608 ) $ (321,880 ) Other comprehensive income (loss) (51 ) — (47,149 ) 3 (47,200 ) Amounts reclassified from AOCI (159 ) 1 80,766 2 — 80,607 Net current-period other (210 ) 80,766 (47,149 ) 33,407 Balance at September 30, 2015 $ 302 $ (110,018 ) $ (178,757 ) $ (288,473 ) Three Months Ended September 30, 2014 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at June 30, 2014 $ (228 ) $ (155,613 ) $ 7,450 $ (148,391 ) Other comprehensive income (loss) 397 — (49,610 ) 3 (49,213 ) Amounts reclassified from AOCI (84 ) 1 2,909 2 — 2,825 Net current-period other 313 2,909 (49,610 ) (46,388 ) Balance at September 30, 2014 $ 85 $ (152,704 ) $ (42,160 ) $ (194,779 ) 1 During the 2015 period, this AOCI reclassification is a component of Net sales of $ (279) (net of tax of $ (105) ) and Cost of goods sold of $ 120 (net of tax of $ 90 ); during the 2014 period, the reclassification is a component of Net sales of $ (23) (net of tax of $ (20) ) and Cost of goods sold of $ (61) (net of tax of $ (42) ). (See Note 15 - Derivatives for additional details.) 2 This AOCI component is included in the computation of net periodic pension costs (net of tax of $ 50,079 and $ 1,974 during the three months ended September 30, 2015 and 2014, respectively). (See Note 13 - Retirement and Postretirement Benefit Plans for additional details.) 3 The Other comprehensive income (loss) before reclassifications excludes $ (76) and $ 60 attributable to Non-controlling interests in the three months ended September 30, 2015 and 2014, respectively. The following tables set forth the total changes in AOCI by component, net of taxes for the nine months ended September 30, 2015 and 2014 : Nine Months Ended September 30, 2015 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at December 31, 2014 $ (9 ) $ (197,893 ) $ (90,720 ) $ (288,622 ) Other comprehensive income (loss) 378 — (88,037 ) 3 (87,659 ) Amounts reclassified from AOCI (67 ) 1 87,875 2 — 87,808 Net current-period other 311 87,875 (88,037 ) 149 Balance at September 30, 2015 $ 302 $ (110,018 ) $ (178,757 ) $ (288,473 ) Nine Months Ended September 30, 2014 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at December 31, 2013 $ 369 $ (160,693 ) $ 8,383 $ (151,941 ) Other comprehensive income (loss) (486 ) — (50,543 ) 3 (51,029 ) Amounts reclassified from AOCI 202 1 7,989 2 — 8,191 Net current-period other (284 ) 7,989 (50,543 ) (42,838 ) Balance at September 30, 2014 $ 85 $ (152,704 ) $ (42,160 ) $ (194,779 ) 1 During the 2015 period, this AOCI reclassification is a component of Net sales of $(800) (net of tax of $(429) ) and Cost of goods sold of $733 (net of tax of $497 ); during the 2014 period, the reclassification is a component of Net sales of $27 (net of tax of $(10) ) and Cost of goods sold of $175 (net of tax of $63 ). (See Note 15 - Derivatives for additional details.) 2 This AOCI component is included in the computation of net periodic pension costs (net of tax of $54,449 and $5,235 during the nine months ended September 30, 2015 and 2014 , respectively). (See Note 13 - Retirement and Postretirement Benefit Plans for additional details.) 3 The Other comprehensive income (loss) before reclassifications excludes $(590) and $765 attributable to Non-controlling interests in the nine months ended September 30, 2015 and 2014 , respectively. |
INVENTORY VALUATION
INVENTORY VALUATION | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORY VALUATION | INVENTORY VALUATION Inventories are valued at the lower of cost or net realizable value. 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 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. Actual year-end costs and inventory levels may differ from interim LIFO inventory valuations. The excess of current cost over LIFO cost was $64,103 and $71,311 at September 30, 2015 and December 31, 2014 , respectively. |
ACCRUED EMPLOYEE BONUS
ACCRUED EMPLOYEE BONUS | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Employee Compensation And Benefits Disclosure Abstract | |
ACCRUED EMPLOYEE BONUS | ACCRUED EMPLOYEE BONUS Other current liabilities at September 30, 2015 and 2014 include accruals for year-end bonuses and related payroll taxes of $87,542 and $107,031 , respectively, related to the Company’s employees worldwide. The payment of bonuses is discretionary and subject to approval by the Board of Directors. A majority of annual bonuses are paid in December, resulting in an increasing bonus accrual during the Company’s fiscal year. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
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, regulatory 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 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 | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
PRODUCT WARRANTY COSTS | PRODUCT WARRANTY COSTS The changes in the carrying amount of product warranty accruals for the nine months ended September 30, 2015 and 2014 are as follows: Nine Months Ended September 30 2015 2014 Balance at December 31 $ 15,398 $ 15,180 Accruals for warranties 14,567 9,063 Settlements (11,101 ) (9,051 ) Foreign currency translation (414 ) (275 ) Balance at September 30 $ 18,450 $ 14,917 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The Company has a line of credit totaling $400,000 through the Amended and Restated Credit Agreement (the “Credit Agreement”), which was entered into on September 12, 2014 . 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 September 30, 2015, 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, at the Company’s election, plus a spread based on the Company’s leverage ratio. On April 1, 2015 , the Company entered into a Note Purchase Agreement pursuant to which it agreed to issue Senior Unsecured Notes (the "Notes") in the aggregate principal amount of $350,000 through a private placement. At September 30, 2015 , $350,000 was outstanding and recorded in Long-term debt, less current portion. The proceeds are being used for general corporate purposes. The Notes, as shown in the table below, have maturities ranging from 10 to 30 years with a weighted average effective interest rate of 3.5% and an average tenure of 19 years. Interest is payable semi-annually. The Notes contain certain affirmative and negative covenants. As of September 30, 2015, the Company was in compliance with all of its debt covenants . The maturity and interest rates of the Notes are as follows: Amount Maturity Date Interest Rate Series A $ 100,000 August 20, 2025 3.15 % Series B 100,000 August 20, 2030 3.35 % Series C 50,000 April 1, 2035 3.61 % Series D 100,000 April 1, 2045 4.02 % |
RETIREMENT AND POSTRETIREMENT B
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | RETIREMENT AND POSTRETIREMENT BENEFIT PLANS The components of total pension cost were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ 4,693 $ 4,228 $ 15,153 $ 14,372 Interest cost 6,494 10,647 27,238 31,924 Expected return on plan assets (9,003 ) (16,940 ) (40,983 ) (51,009 ) Amortization of prior service cost (157 ) (154 ) (469 ) (461 ) Amortization of net loss 2,886 4,815 14,578 13,246 Settlement/curtailment loss 136,331 1,562 136,331 1,562 Defined benefit plans 141,244 4,158 151,848 9,634 Multi-employer plans 196 250 624 781 Defined contribution plans 1,904 2,898 7,865 8,551 Total pension cost $ 143,344 $ 7,306 $ 160,337 $ 18,966 The Company voluntarily contributed $47,000 to its defined benefit plans in the United States during the nine months ended September 30, 2015 . In August 2015, the Lincoln Electric Company, plan sponsor of the Lincoln Electric Retirement Annuity Program ("RAP") and subsidiary of the Company, entered into an agreement to purchase a group annuity contract from The Principal Financial Group ("The Principal"). Under the agreement, The Principal assumed the obligation to pay future pension benefits for specified U.S. retirees and surviving beneficiaries who retired on or before June 1, 2015 and are currently receiving payments from the RAP. The transaction will not change the amount of the monthly pension benefit received by affected retirees and surviving beneficiaries. The purchase was funded by existing plan assets and required no additional cash contribution. The Company recorded a pension settlement charge of $136,331 for the three and nine months ended September 30, 2015, primarily related to the purchase of the group annuity contract. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recognized $19,902 of tax expense on pre-tax income of $98,615 , resulting in an effective income tax rate of 20.2% for the nine months ended September 30, 2015 . The effective income tax rate was 35.1% for the nine months ended September 30, 2014 . The 2015 effective income tax rate was lower than the Company’s statutory rate primarily due to the 2015 pension settlement charge's deferred tax benefit recorded at the higher U.S. statutory rate and the utilization of U.S. tax credits. Both the 2015 and 2014 effective income tax rates were also lower than the Company’s statutory rate due to income earned in lower tax rate jurisdictions. As of September 30, 2015 , the Company had $14,574 of unrecognized tax benefits. If recognized, approximately $8,163 would be reflected as a component of income tax expense. 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 2010. The Company is currently subject to various U.S. state and non-U.S. income tax audits. 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 reduction of $3,369 in previously unrecognized tax benefits by the end of the third quarter 2016 . In July 2012, the Company received a Notice of Reassessment (the "Reassessment") from the Canada Revenue Agency in respect to its 2004 to 2010 taxation years to disallow the deductibility of inter-company dividends. The Company appealed the Reassessment to the Tax Court of Canada. As part of the appeals process to the Tax Court of Canada, the Company had elected to deposit the entire amount of the dispute in order to suspend continuing interest charges. In September 2014, the Department of Justice Canada consented to a judgment, wholly in the Company's favor. In vacating the Reassessment, tax litigation was concluded. In December 2014, the Company received a partial refund of the cash deposit. In the first quarter of 2015, the Company received a refund of $24,976 which was substantially all of the remaining cash deposit. The Company also received interest on the deposit of $1,596 . |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2015 | |
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 in the nine months ended September 30, 2015 and 2014. 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 September 30, 2015 . The Company does not expect any counterparties to fail to meet their obligations. Cash Flow Hedges Certain foreign currency forward contracts were qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $31,472 at September 30, 2015 and $27,265 at December 31, 2014 . The effective portions of the fair value gains or losses on these cash flow hedges are recognized in AOCI and subsequently reclassified to Cost of goods sold or Sales for hedges of purchases and sales, respectively, as the underlying hedged transactions affect earnings. Net Investment Hedges The Company had foreign currency forward contracts that qualify and are designated as net investment hedges at December 31, 2014 . The dollar equivalent gross notional amount of these short-term contracts was $60,734 at December 31, 2014 . No such contracts were outstanding as of September 30, 2015 . The effective portions of the fair value gains or losses on these net investment hedges are recognized in AOCI and subsequently reclassified to Selling, general and administrative expenses, as the underlying hedged investment is liquidated. Derivatives Not Designated as Hedging Instruments The Company has certain foreign exchange forward contracts that 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 $270,667 at September 30, 2015 and $280,949 at December 31, 2014 . 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 had short-term silver forward contracts with notional amounts of $3,644 at September 30, 2015 . At December 31, 2014 , the Company had short-term silver and copper forward contracts with notional amounts of $4,467 and $1,066 , respectively. Realized and unrealized gains and losses on these contracts are recognized in Costs of goods sold. Fair values of derivative instruments in the Company’s Consolidated Balance Sheets follow: September 30, 2015 December 31, 2014 Derivatives by hedge designation Other Current Assets Other Current Liabilities Other Current Assets Other Current Liabilities Designated as hedging instruments: Foreign exchange contracts $ 218 $ 938 $ 468 $ 935 Net investment contracts — — 1,091 469 Not designated as hedging instruments: Foreign exchange contracts 907 1,739 482 3,638 Commodity contracts 19 7 47 69 Total derivatives $ 1,144 $ 2,684 $ 2,088 $ 5,111 The effects of undesignated derivative instruments on the Company’s Consolidated Statements of Operations for the three and nine month periods ended September 30, 2015 and 2014 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, Derivatives by hedge designation Classification of gain (loss) 2015 2014 2015 2014 Not designated as hedges: Foreign exchange contracts Selling, general & administrative expenses $ (7,993 ) $ (4,746 ) $ (15,085 ) $ (3,448 ) Commodity contracts Cost of goods sold 182 1,024 232 523 The effects of designated hedges on AOCI and the Company’s Consolidated Statements of Operations consisted of the following: Total gain (loss) recognized in AOCI, net of tax September 30, 2015 December 31, 2014 Foreign exchange contracts $ (675 ) $ (9 ) Net investment contracts 977 — The Company expects a loss of $675 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. Three Months Ended September 30, Nine Months Ended September 30, Derivative type Gain (loss) reclassified from AOCI to: 2015 2014 2015 2014 Foreign exchange contracts Sales $ (279 ) $ (23 ) $ (800 ) $ 27 Cost of goods sold 120 (61 ) 733 175 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The following table provides a summary of assets and liabilities as of September 30, 2015 , measured at fair value on a recurring basis: Description Balance as of Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign exchange contracts $ 1,125 $ — $ 1,125 $ — Commodity contracts 19 — 19 — Total assets $ 1,144 $ — $ 1,144 $ — Liabilities: Foreign exchange contracts $ 2,677 $ — $ 2,677 $ — Commodity contracts 7 — 7 — Contingent considerations 9,206 — — 9,206 Forward contract 20,855 — — 20,855 Deferred compensation 22,614 — 22,614 — Total liabilities $ 55,359 $ — $ 25,298 $ 30,061 The following table provides a summary of assets and liabilities as of December 31, 2014 , measured at fair value on a recurring basis: Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign exchange contracts $ 950 $ — $ 950 $ — Commodity contracts 47 — 47 — Net investment contracts 1,091 — 1,091 — Total assets $ 2,088 $ — $ 2,088 $ — Liabilities: Foreign exchange contracts $ 4,573 $ — $ 4,573 $ — Commodity contracts 69 — 69 — Net investment contracts 469 — 469 — Contingent consideration 6,912 — — 6,912 Forward contract 25,268 — — 25,268 Deferred compensation 21,839 — 21,839 — Total liabilities $ 59,130 $ — $ 26,950 $ 32,180 The Company’s derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts and net investment 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 nine months ended September 30, 2015 , there were no transfers between Levels 1, 2 or 3. In connection with acquisitions, the Company recorded contingent considerations fair valued at $9,206 as of September 30, 2015 . Under the contingent consideration agreements the amounts to be paid are based upon actual financial results of the acquired entity for specified future periods. The fair value of the contingent considerations are a Level 3 valuation and fair valued using a probability weighted discounted cash flow analyses. 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 Canadian dollar denominated forward contract at a fair value of $20,855 as of September 30, 2015 . The change in liability from December 31, 2014 was primarily the result of a $7,140 payment to acquire an additional financial interest in the entity offset by additional accruals of $5,706 for the nine months ended September 30, 2015 . 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 forecasted earnings and cash flows over the three-year period ending December 31, 2016, present valued utilizing a risk based discount rate of 3.5% reflective of the Company's cost of debt and 13.8% as a risk adjusted cost of capital. 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 fair value of Cash and cash equivalents, Accounts receivable, Short-term debt excluding the current portion of long-term debt and Trade accounts payable approximated book value due to the short-term nature of these instruments at both September 30, 2015 and December 31, 2014 . The fair value of long-term debt at September 30, 2015 and December 31, 2014 , including the current portion, was approximately $249,045 and $9,323 , respectively, which was determined using available market information and methodologies requiring judgment. The carrying value of this debt at such dates was $351,449 and $9,499 , respectively. Since considerable judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount that could be realized in a current market exchange. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 primarily 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 Asia Pacific Welding segment primarily includes welding operations in China and Australia. The South America Welding segment primarily includes welding operations in Brazil, Colombia and Venezuela. 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. |
Inventories | Inventories are valued at the lower of cost or net realizable value. 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 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. Actual year-end costs and inventory levels may differ from interim LIFO inventory valuations. |
Financial Instruments | 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 in the nine months ended September 30, 2015 and 2014. 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 September 30, 2015 . The Company does not expect any counterparties to fail to meet their obligations. Cash Flow Hedges Certain foreign currency forward contracts were qualified and designated as cash flow hedges. The dollar equivalent gross notional amount of these short-term contracts was $31,472 at September 30, 2015 and $27,265 at December 31, 2014 . The effective portions of the fair value gains or losses on these cash flow hedges are recognized in AOCI and subsequently reclassified to Cost of goods sold or Sales for hedges of purchases and sales, respectively, as the underlying hedged transactions affect earnings. Net Investment Hedges The Company had foreign currency forward contracts that qualify and are designated as net investment hedges at December 31, 2014 . The dollar equivalent gross notional amount of these short-term contracts was $60,734 at December 31, 2014 . No such contracts were outstanding as of September 30, 2015 . The effective portions of the fair value gains or losses on these net investment hedges are recognized in AOCI and subsequently reclassified to Selling, general and administrative expenses, as the underlying hedged investment is liquidated. Derivatives Not Designated as Hedging Instruments The Company has certain foreign exchange forward contracts that 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 $270,667 at September 30, 2015 and $280,949 at December 31, 2014 . 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 had short-term silver forward contracts with notional amounts of $3,644 at September 30, 2015 . At December 31, 2014 , the Company had short-term silver and copper forward contracts with notional amounts of $4,467 and $1,066 , respectively. Realized and unrealized gains and losses on these contracts are recognized in Costs of goods sold. |
NEW ACCOUNTING PRONOUNCEMENTS | New Accounting Pronouncements Adopted: In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 applies to all inventory that is measured using the first-in, first-out and average cost valuation methods. ASU 2015-11 requires entities to measure inventory at lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. The amendments should be applied prospectively and are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. ASU 2015-11 was adopted by the Company effective July 1, 2015 and did not have a significant impact on the Company's financial statements. New Accounting Pronouncements to be Adopted: In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 requires an acquiring entity to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments also require an entity to record the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. An entity must present separately on the face of the statement of operations or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments should be applied prospectively and are effective for financial statements issued for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of ASU 2015-16 on the Company's financial statements. In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share." ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and removes the requirement to make certain disclosures for these investments. The amendment should be applied retrospectively and is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2015-07 on the Company's financial statement disclosures. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30)." ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the new amendment. The new guidance will be applied on a retrospective basis to each prior reporting period presented. Upon transition, the Company is required to comply with applicable disclosures for a change in accounting principle. The amendment is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2015-03 on the Company's financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the amendment provides five steps that an entity should apply when recognizing revenue. The amendment also specifies the accounting of some costs to obtain or fulfill a contract with a customer and expands the disclosure requirements around contracts with customers. An entity can either adopt this amendment retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application. In August 2015, the FASB issued ASU 2015-14, " Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on the Company's financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ (60,466 ) $ 45,689 $ 78,786 $ 179,474 Denominator: Basic weighted average shares outstanding 73,754 78,817 74,999 79,779 Effect of dilutive securities - Stock options and awards — 908 765 923 Diluted weighted average shares outstanding 73,754 79,725 75,764 80,702 Basic earnings (loss) per share $ (0.82 ) $ 0.58 $ 1.05 $ 2.25 Diluted earnings (loss) per share $ (0.82 ) $ 0.57 $ 1.04 $ 2.22 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of financial information for the reportable segments | Financial information for the reportable segments follows: North America Welding Europe Welding Asia Pacific Welding South America Welding The Harris Products Group Corporate / Eliminations Consolidated Three Months Ended September 30, 2015 Net sales $ 408,416 $ 80,596 $ 45,505 $ 47,727 $ 62,922 $ — $ 645,166 Inter-segment sales 28,055 4,631 2,794 36 2,307 (37,823 ) — Total $ 436,471 $ 85,227 $ 48,299 $ 47,763 $ 65,229 $ (37,823 ) $ 645,166 EBIT, as adjusted $ 79,743 $ 8,337 $ 2,006 $ 1,845 $ 6,422 $ (646 ) $ 97,707 Special items charge (gain) 149,404 268 4,944 26,506 — — 181,122 EBIT $ (69,661 ) $ 8,069 $ (2,938 ) $ (24,661 ) $ 6,422 $ (646 ) $ (83,415 ) Interest income 692 Interest expense (5,803 ) Income (loss) before income taxes $ (88,526 ) Three Months Ended September 30, 2014 Net sales $ 439,621 $ 107,507 $ 57,404 $ 32,862 $ 78,383 $ — $ 715,777 Inter-segment sales 30,365 4,533 3,595 9 2,009 (40,511 ) — Total $ 469,986 $ 112,040 $ 60,999 $ 32,871 $ 80,392 $ (40,511 ) $ 715,777 EBIT, as adjusted $ 84,450 $ 15,221 $ (304 ) $ (590 ) $ 8,947 $ (324 ) $ 107,400 Special items charge (gain) — (81 ) 28,567 582 — — 29,068 EBIT $ 84,450 $ 15,302 $ (28,871 ) $ (1,172 ) $ 8,947 $ (324 ) $ 78,332 Interest income 627 Interest expense (1,174 ) Income (loss) before income taxes $ 77,785 Nine Months Ended September 30, 2015 Net sales $ 1,236,479 $ 259,915 $ 143,798 $ 123,064 $ 204,550 $ — $ 1,967,806 Inter-segment sales 79,797 12,687 9,028 154 7,034 (108,700 ) — Total $ 1,316,276 $ 272,602 $ 152,826 $ 123,218 $ 211,584 $ (108,700 ) $ 1,967,806 EBIT, as adjusted $ 228,421 $ 26,566 $ 7,378 $ 6,373 $ 22,221 $ 28 $ 290,987 Special items charge (gain) 149,404 1,507 4,944 26,506 — — 182,361 EBIT $ 79,017 $ 25,059 $ 2,434 $ (20,133 ) $ 22,221 $ 28 $ 108,626 Interest income 2,023 Interest expense (12,034 ) Income (loss) before income taxes $ 98,615 Total assets $ 1,139,513 $ 325,477 $ 267,507 $ 85,755 $ 145,436 $ (35,597 ) $ 1,928,091 Nine months ended September 30, 2014 Net sales $ 1,271,017 $ 328,487 $ 185,687 $ 115,906 $ 228,273 $ — $ 2,129,370 Inter-segment sales 96,668 15,887 11,644 73 6,389 (130,661 ) — Total $ 1,367,685 $ 344,374 $ 197,331 $ 115,979 $ 234,662 $ (130,661 ) $ 2,129,370 EBIT, as adjusted $ 247,009 $ 39,412 $ (579 ) $ 16,170 $ 22,183 $ 3,167 $ 327,362 Special items charge (gain) (68 ) 923 28,450 21,715 — — 51,020 EBIT $ 247,077 $ 38,489 $ (29,029 ) $ (5,545 ) $ 22,183 $ 3,167 $ 276,342 Interest income 2,465 Interest expense (3,730 ) Income (loss) before income taxes $ 275,077 Total assets $ 1,205,179 $ 389,122 $ 285,626 $ 139,908 $ 161,069 $ (68,385 ) $ 2,112,519 |
RATIONALIZATION AND ASSET IMP27
RATIONALIZATION AND ASSET IMPAIRMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following tables summarize the activity related to the rationalization liabilities by segment for the nine months ended September 30, 2015 : North Europe Asia Pacific Consolidated Balance, December 31, 2014 $ — $ 305 $ — $ 305 Payments and other adjustments — (1,647 ) (688 ) (2,335 ) Charged to expense 3,341 1,507 8,586 13,434 Balance, September 30, 2015 $ 3,341 $ 165 $ 7,898 $ 11,404 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in equity | Changes in equity for the nine months ended September 30, 2015 are as follows: Shareholders’ Equity Non-controlling Interests Total Equity Balance, December 31, 2014 $ 1,282,549 $ 3,232 $ 1,285,781 Comprehensive income (loss): Net income (loss) 78,786 (73 ) 78,713 Other comprehensive income (loss) 149 (590 ) (441 ) Total comprehensive income (loss) 78,935 (663 ) 78,272 Cash dividends declared - $0.87 per share (64,626 ) — (64,626 ) Issuance of shares under benefit plans 12,028 — 12,028 Purchase of shares for treasury (297,804 ) — (297,804 ) Transactions with non-controlling interests — (1,682 ) (1,682 ) Balance, September 30, 2015 $ 1,011,082 $ 887 $ 1,011,969 Changes in equity for the nine months ended September 30, 2014 are as follows: Shareholders’ Equity Non-controlling Interests Total Equity Balance, December 31, 2013 $ 1,526,602 $ 4,086 $ 1,530,688 Comprehensive income (loss): Net income (loss) 179,474 (929 ) 178,545 Other comprehensive income (loss) (42,838 ) 765 (42,073 ) Total comprehensive income (loss) 136,636 (164 ) 136,472 Cash dividends declared - $0.69 per share (54,646 ) — (54,646 ) Issuance of shares under benefit plans 15,634 — 15,634 Purchase of shares for treasury (249,403 ) — (249,403 ) Transactions with non-controlling interests (1,484 ) (782 ) (2,266 ) Balance, September 30, 2014 $ 1,373,339 $ 3,140 $ 1,376,479 |
Components of accumulated other comprehensive (loss) income | The following tables set forth the total changes in accumulated other comprehensive income (loss) ("AOCI") by component, net of taxes for the three months ended September 30, 2015 and 2014 : Three Months Ended September 30, 2015 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at June 30, 2015 $ 512 $ (190,784 ) $ (131,608 ) $ (321,880 ) Other comprehensive income (loss) (51 ) — (47,149 ) 3 (47,200 ) Amounts reclassified from AOCI (159 ) 1 80,766 2 — 80,607 Net current-period other (210 ) 80,766 (47,149 ) 33,407 Balance at September 30, 2015 $ 302 $ (110,018 ) $ (178,757 ) $ (288,473 ) Three Months Ended September 30, 2014 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at June 30, 2014 $ (228 ) $ (155,613 ) $ 7,450 $ (148,391 ) Other comprehensive income (loss) 397 — (49,610 ) 3 (49,213 ) Amounts reclassified from AOCI (84 ) 1 2,909 2 — 2,825 Net current-period other 313 2,909 (49,610 ) (46,388 ) Balance at September 30, 2014 $ 85 $ (152,704 ) $ (42,160 ) $ (194,779 ) 1 During the 2015 period, this AOCI reclassification is a component of Net sales of $ (279) (net of tax of $ (105) ) and Cost of goods sold of $ 120 (net of tax of $ 90 ); during the 2014 period, the reclassification is a component of Net sales of $ (23) (net of tax of $ (20) ) and Cost of goods sold of $ (61) (net of tax of $ (42) ). (See Note 15 - Derivatives for additional details.) 2 This AOCI component is included in the computation of net periodic pension costs (net of tax of $ 50,079 and $ 1,974 during the three months ended September 30, 2015 and 2014, respectively). (See Note 13 - Retirement and Postretirement Benefit Plans for additional details.) 3 The Other comprehensive income (loss) before reclassifications excludes $ (76) and $ 60 attributable to Non-controlling interests in the three months ended September 30, 2015 and 2014, respectively. The following tables set forth the total changes in AOCI by component, net of taxes for the nine months ended September 30, 2015 and 2014 : Nine Months Ended September 30, 2015 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at December 31, 2014 $ (9 ) $ (197,893 ) $ (90,720 ) $ (288,622 ) Other comprehensive income (loss) 378 — (88,037 ) 3 (87,659 ) Amounts reclassified from AOCI (67 ) 1 87,875 2 — 87,808 Net current-period other 311 87,875 (88,037 ) 149 Balance at September 30, 2015 $ 302 $ (110,018 ) $ (178,757 ) $ (288,473 ) Nine Months Ended September 30, 2014 Unrealized gain (loss) on derivatives designated and qualifying as cash flow hedges Defined benefit pension plan activity Currency translation adjustment Total Balance at December 31, 2013 $ 369 $ (160,693 ) $ 8,383 $ (151,941 ) Other comprehensive income (loss) (486 ) — (50,543 ) 3 (51,029 ) Amounts reclassified from AOCI 202 1 7,989 2 — 8,191 Net current-period other (284 ) 7,989 (50,543 ) (42,838 ) Balance at September 30, 2014 $ 85 $ (152,704 ) $ (42,160 ) $ (194,779 ) 1 During the 2015 period, this AOCI reclassification is a component of Net sales of $(800) (net of tax of $(429) ) and Cost of goods sold of $733 (net of tax of $497 ); during the 2014 period, the reclassification is a component of Net sales of $27 (net of tax of $(10) ) and Cost of goods sold of $175 (net of tax of $63 ). (See Note 15 - Derivatives for additional details.) 2 This AOCI component is included in the computation of net periodic pension costs (net of tax of $54,449 and $5,235 during the nine months ended September 30, 2015 and 2014 , respectively). (See Note 13 - Retirement and Postretirement Benefit Plans for additional details.) 3 The Other comprehensive income (loss) before reclassifications excludes $(590) and $765 attributable to Non-controlling interests in the nine months ended September 30, 2015 and 2014 , respectively. |
PRODUCT WARRANTY COSTS (Tables)
PRODUCT WARRANTY COSTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of the changes in the carrying amount of product warranty accruals | The changes in the carrying amount of product warranty accruals for the nine months ended September 30, 2015 and 2014 are as follows: Nine Months Ended September 30 2015 2014 Balance at December 31 $ 15,398 $ 15,180 Accruals for warranties 14,567 9,063 Settlements (11,101 ) (9,051 ) Foreign currency translation (414 ) (275 ) Balance at September 30 $ 18,450 $ 14,917 |
DEBT Senior Unsecured Notes (Ta
DEBT Senior Unsecured Notes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Instrument [Line Items] | |
Schedule of Debt [Table Text Block] | The maturity and interest rates of the Notes are as follows: Amount Maturity Date Interest Rate Series A $ 100,000 August 20, 2025 3.15 % Series B 100,000 August 20, 2030 3.35 % Series C 50,000 April 1, 2035 3.61 % Series D 100,000 April 1, 2045 4.02 % |
RETIREMENT AND POSTRETIREMENT31
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of total pension cost | The components of total pension cost were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ 4,693 $ 4,228 $ 15,153 $ 14,372 Interest cost 6,494 10,647 27,238 31,924 Expected return on plan assets (9,003 ) (16,940 ) (40,983 ) (51,009 ) Amortization of prior service cost (157 ) (154 ) (469 ) (461 ) Amortization of net loss 2,886 4,815 14,578 13,246 Settlement/curtailment loss 136,331 1,562 136,331 1,562 Defined benefit plans 141,244 4,158 151,848 9,634 Multi-employer plans 196 250 624 781 Defined contribution plans 1,904 2,898 7,865 8,551 Total pension cost $ 143,344 $ 7,306 $ 160,337 $ 18,966 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 December 31, 2014 Derivatives by hedge designation Other Current Assets Other Current Liabilities Other Current Assets Other Current Liabilities Designated as hedging instruments: Foreign exchange contracts $ 218 $ 938 $ 468 $ 935 Net investment contracts — — 1,091 469 Not designated as hedging instruments: Foreign exchange contracts 907 1,739 482 3,638 Commodity contracts 19 7 47 69 Total derivatives $ 1,144 $ 2,684 $ 2,088 $ 5,111 |
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 Operations for the three and nine month periods ended September 30, 2015 and 2014 consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, Derivatives by hedge designation Classification of gain (loss) 2015 2014 2015 2014 Not designated as hedges: Foreign exchange contracts Selling, general & administrative expenses $ (7,993 ) $ (4,746 ) $ (15,085 ) $ (3,448 ) Commodity contracts Cost of goods sold 182 1,024 232 523 |
Schedule of effects of designated hedges on AOCI and the entity's Consolidated Statements of Income | The effects of designated hedges on AOCI and the Company’s Consolidated Statements of Operations consisted of the following: Total gain (loss) recognized in AOCI, net of tax September 30, 2015 December 31, 2014 Foreign exchange contracts $ (675 ) $ (9 ) Net investment contracts 977 — The Company expects a loss of $675 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. Three Months Ended September 30, Nine Months Ended September 30, Derivative type Gain (loss) reclassified from AOCI to: 2015 2014 2015 2014 Foreign exchange contracts Sales $ (279 ) $ (23 ) $ (800 ) $ 27 Cost of goods sold 120 (61 ) 733 175 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value on a recurring basis | The following table provides a summary of assets and liabilities as of September 30, 2015 , measured at fair value on a recurring basis: Description Balance as of Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign exchange contracts $ 1,125 $ — $ 1,125 $ — Commodity contracts 19 — 19 — Total assets $ 1,144 $ — $ 1,144 $ — Liabilities: Foreign exchange contracts $ 2,677 $ — $ 2,677 $ — Commodity contracts 7 — 7 — Contingent considerations 9,206 — — 9,206 Forward contract 20,855 — — 20,855 Deferred compensation 22,614 — 22,614 — Total liabilities $ 55,359 $ — $ 25,298 $ 30,061 The following table provides a summary of assets and liabilities as of December 31, 2014 , measured at fair value on a recurring basis: Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Foreign exchange contracts $ 950 $ — $ 950 $ — Commodity contracts 47 — 47 — Net investment contracts 1,091 — 1,091 — Total assets $ 2,088 $ — $ 2,088 $ — Liabilities: Foreign exchange contracts $ 4,573 $ — $ 4,573 $ — Commodity contracts 69 — 69 — Net investment contracts 469 — 469 — Contingent consideration 6,912 — — 6,912 Forward contract 25,268 — — 25,268 Deferred compensation 21,839 — 21,839 — Total liabilities $ 59,130 $ — $ 26,950 $ 32,180 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2015USD ($)VEB / $ | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($)VEB / $ | Dec. 31, 2014USD ($) | |
Venezuela-Highly Inflationary Economy | ||||
Venezuela foreign currency transaction loss | $ 4,334 | $ 17,665 | ||
Inventory Write-down | $ 22,172 | |||
Effect of liquidation of inventory valued at historical exchange rate after currency devaluation | $ 3,468 | |||
SIMADIRate | VEB / $ | 199.4 | |||
SICAD I Rate | VEB / $ | 10.7 | |||
Net bolivar-denominated monetary assets position | $ 278 | $ (1,264) | ||
Cash and Cash Equivalents Located in Venezuela | $ 301 | $ 2,124 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income | $ (60,466) | $ 45,689 | $ 78,786 | $ 179,474 |
Denominator: | ||||
Basic weighted average shares outstanding (in shares) | 73,754,000 | 78,817,000 | 74,999,000 | 79,779,000 |
Effect of dilutive securities - Stock options and awards (in shares) | 0 | 908,000 | 765,000 | 923,000 |
Diluted weighted average shares outstanding (in shares) | 73,754,000 | 79,725,000 | 75,764,000 | 80,702,000 |
Earnings (loss) per share | ||||
Basic earnings (loss) per share (in dollars per share) | $ (0.82) | $ 0.58 | $ 1.05 | $ 2.25 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.82) | $ 0.57 | $ 1.04 | $ 2.22 |
Anti-dilutive shares excluded from the computation of diluted earnings per share | 1,279,664 | 259,336 | 508,070 | 260,964 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Acquisitions | |||||
Annual sales at the date of acquisition | $ 645,166 | $ 715,777 | $ 1,967,806 | $ 2,129,370 | |
Immaterial Acquisitions [Member] [Domain] | |||||
Acquisitions | |||||
Annual sales at the date of acquisition | $ 56,000 | $ 30,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Financial information for the reportable segments | ||||||
Net sales | $ 645,166 | $ 715,777 | $ 1,967,806 | $ 2,129,370 | ||
Inter-segment sales | 0 | 0 | 0 | 0 | ||
Total | 645,166 | 715,777 | 1,967,806 | 2,129,370 | ||
EBIT, as adjusted | 97,707 | 107,400 | 290,987 | 327,362 | ||
Special items net charges | 181,122 | 29,068 | 182,361 | 51,020 | ||
Foreign Currency Transaction Loss, before Tax | 4,334 | $ 17,665 | ||||
EBIT | (83,415) | 78,332 | 108,626 | 276,342 | ||
Interest income | 692 | 627 | 2,023 | 2,465 | ||
Interest expense | (5,803) | (1,174) | (12,034) | (3,730) | ||
Income (loss) before income taxes | (88,526) | 77,785 | 98,615 | 275,077 | ||
Total assets | 1,928,091 | 2,112,519 | $ 1,928,091 | 2,112,519 | $ 1,939,215 | |
Special items | ||||||
Number of operating segments | segment | 5 | |||||
North America Welding | ||||||
Financial information for the reportable segments | ||||||
Net sales | 408,416 | 439,621 | $ 1,236,479 | 1,271,017 | ||
Inter-segment sales | 28,055 | 30,365 | 79,797 | 96,668 | ||
Total | 436,471 | 469,986 | 1,316,276 | 1,367,685 | ||
EBIT, as adjusted | 79,743 | 84,450 | 228,421 | 247,009 | ||
Special items net charges | 149,404 | 0 | 149,404 | (68) | ||
EBIT | (69,661) | 84,450 | 79,017 | 247,077 | ||
Total assets | 1,139,513 | 1,205,179 | 1,139,513 | 1,205,179 | ||
Europe Welding | ||||||
Financial information for the reportable segments | ||||||
Net sales | 80,596 | 107,507 | 259,915 | 328,487 | ||
Inter-segment sales | 4,631 | 4,533 | 12,687 | 15,887 | ||
Total | 85,227 | 112,040 | 272,602 | 344,374 | ||
EBIT, as adjusted | 8,337 | 15,221 | 26,566 | 39,412 | ||
Special items net charges | 268 | (81) | 1,507 | 923 | ||
EBIT | 8,069 | 15,302 | 25,059 | 38,489 | ||
Total assets | 325,477 | 389,122 | 325,477 | 389,122 | ||
Asia Pacific Welding | ||||||
Financial information for the reportable segments | ||||||
Net sales | 45,505 | 57,404 | 143,798 | 185,687 | ||
Inter-segment sales | 2,794 | 3,595 | 9,028 | 11,644 | ||
Total | 48,299 | 60,999 | 152,826 | 197,331 | ||
EBIT, as adjusted | 2,006 | (304) | 7,378 | (579) | ||
Special items net charges | 4,944 | 28,567 | 4,944 | 28,450 | ||
EBIT | (2,938) | (28,871) | 2,434 | (29,029) | ||
Total assets | 267,507 | 285,626 | 267,507 | 285,626 | ||
South America Welding | ||||||
Financial information for the reportable segments | ||||||
Net sales | 47,727 | 32,862 | 123,064 | 115,906 | ||
Inter-segment sales | 36 | 9 | 154 | 73 | ||
Total | 47,763 | 32,871 | 123,218 | 115,979 | ||
EBIT, as adjusted | 1,845 | (590) | 6,373 | 16,170 | ||
Special items net charges | 26,506 | 582 | 26,506 | 21,715 | ||
EBIT | (24,661) | (1,172) | (20,133) | (5,545) | ||
Total assets | 85,755 | 139,908 | 85,755 | 139,908 | ||
The Harris Products Group | ||||||
Financial information for the reportable segments | ||||||
Net sales | 62,922 | 78,383 | 204,550 | 228,273 | ||
Inter-segment sales | 2,307 | 2,009 | 7,034 | 6,389 | ||
Total | 65,229 | 80,392 | 211,584 | 234,662 | ||
EBIT, as adjusted | 6,422 | 8,947 | 22,221 | 22,183 | ||
Special items net charges | 0 | 0 | 0 | 0 | ||
EBIT | 6,422 | 8,947 | 22,221 | 22,183 | ||
Total assets | 145,436 | 161,069 | 145,436 | 161,069 | ||
Corporate / Eliminations | ||||||
Financial information for the reportable segments | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Inter-segment sales | (37,823) | (40,511) | (108,700) | (130,661) | ||
Total | (37,823) | (40,511) | (108,700) | (130,661) | ||
EBIT, as adjusted | (646) | (324) | 28 | 3,167 | ||
Special items net charges | 0 | 0 | 0 | 0 | ||
EBIT | (646) | (324) | 28 | 3,167 | ||
Total assets | $ (35,597) | $ (68,385) | $ (35,597) | $ (68,385) |
RATIONALIZATION AND ASSET IMP38
RATIONALIZATION AND ASSET IMPAIRMENTS Summary of Activity Related to Rationalization Liabilities by Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Rationalization and Asset Impairments | ||
Restructuring Reserve | $ 11,404 | $ 305 |
Payments and other adjustments | (2,335) | |
Restructuring Charges | 13,434 | |
North America Welding | ||
Rationalization and Asset Impairments | ||
Restructuring Reserve | 3,341 | 0 |
Payments and other adjustments | 0 | |
Restructuring Charges | 3,341 | |
Europe Welding | ||
Rationalization and Asset Impairments | ||
Restructuring Reserve | 165 | 305 |
Payments and other adjustments | (1,647) | |
Restructuring Charges | 1,507 | |
Asia Pacific Welding | ||
Rationalization and Asset Impairments | ||
Restructuring Reserve | 7,898 | $ 0 |
Payments and other adjustments | (688) | |
Restructuring Charges | $ 8,586 |
RATIONALIZATION AND ASSET IMP39
RATIONALIZATION AND ASSET IMPAIRMENTS (Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Rationalization and Asset Impairments | |||||
Rationalization and asset impairment charges | $ 18,285 | $ 29,068 | $ 19,524 | $ 29,887 | |
Asset Impairment Charges | 6,090 | ||||
Restructuring Reserve | 11,404 | 11,404 | $ 305 | ||
Special Items Charge (Gain) | 181,122 | 29,068 | 182,361 | 51,020 | |
Restructuring Charges | 13,434 | ||||
Other current assets | 85,064 | 85,064 | 139,102 | ||
Other current liabilities | 268,118 | 268,118 | 214,484 | ||
North America Welding | |||||
Rationalization and Asset Impairments | |||||
Asset Impairment Charges | 9,732 | ||||
Restructuring Reserve | 3,341 | 3,341 | 0 | ||
Special Items Charge (Gain) | 149,404 | 0 | 149,404 | (68) | |
Restructuring Charges | 3,341 | ||||
Asia Pacific Welding | |||||
Rationalization and Asset Impairments | |||||
Restructuring and Related Cost, Expected Cost | 400 | 400 | |||
Restructuring Reserve | 7,898 | 7,898 | 0 | ||
Special Items Charge (Gain) | 4,944 | 28,567 | 4,944 | 28,450 | |
Restructuring Charges | 8,586 | ||||
Europe Welding | |||||
Rationalization and Asset Impairments | |||||
Restructuring Reserve | 165 | 165 | $ 305 | ||
Special Items Charge (Gain) | $ 268 | $ (81) | 1,507 | $ 923 | |
Restructuring Charges | $ 1,507 |
COMMON SHARE REPURCHASE PROGR40
COMMON SHARE REPURCHASE PROGRAM (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015shares | Sep. 30, 2015shares | |
COMMON SHARE REPURCHASE PROGRAM | ||
Shares authorized for repurchase under share repurchase program | 45,000,000 | 45,000,000 |
Shares purchased in the open market under share repurchase program | 2,369,771 | 4,715,456 |
Remaining common shares available for repurchase under the share repurchase program | 6,590,680 | 6,590,680 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | |||||
Changes in equity | ||||||||||||
Balance at the beginning of the period | $ 1,285,781 | $ 1,530,688 | $ 1,530,688 | |||||||||
Comprehensive income: | ||||||||||||
Net income including non-controlling interests | $ (60,481) | $ 44,832 | 78,713 | 178,545 | ||||||||
Other comprehensive income (loss) | 33,331 | (46,328) | (441) | (42,073) | ||||||||
Total comprehensive income (loss) | $ (27,150) | $ (1,496) | 78,272 | 136,472 | ||||||||
Cash dividends declared - $0.87 per share and $0.69 per share for the nine months ended September 30, 2015 and 2014, respectively | $ (64,626) | $ (54,646) | ||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.29 | $ 0.23 | $ 0.87 | $ 0.69 | ||||||||
Issuance of shares under benefit plans | $ 12,028 | $ 15,634 | ||||||||||
Purchase of shares for treasury | (297,804) | (249,403) | ||||||||||
Transactions with Noncontrolling Interests | (1,682) | (2,266) | ||||||||||
Balance at the end of the period | $ 1,011,969 | $ 1,376,479 | 1,011,969 | 1,376,479 | 1,285,781 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (288,473) | (194,779) | (288,473) | (194,779) | (288,622) | $ (321,880) | $ (148,391) | $ (151,941) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (47,200) | (49,213) | (87,659) | (51,029) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 80,607 | 2,825 | 87,808 | 8,191 | ||||||||
Net Current-Period Other Comprehensive Income (Loss), Net of Tax | 33,407 | (46,388) | 149 | (42,838) | ||||||||
Net sales | 645,166 | 715,777 | 1,967,806 | 2,129,370 | ||||||||
Cost of goods sold | 446,272 | 474,168 | 1,322,741 | 1,411,158 | ||||||||
Income Tax Expense (Benefit) | (28,045) | 32,953 | 19,902 | 96,532 | ||||||||
Shareholders' Equity | ||||||||||||
Changes in equity | ||||||||||||
Balance at the beginning of the period | 1,282,549 | 1,526,602 | 1,526,602 | |||||||||
Comprehensive income: | ||||||||||||
Net income including non-controlling interests | 78,786 | 179,474 | ||||||||||
Other comprehensive income (loss) | 149 | (42,838) | ||||||||||
Total comprehensive income (loss) | 78,935 | 136,636 | ||||||||||
Cash dividends declared - $0.87 per share and $0.69 per share for the nine months ended September 30, 2015 and 2014, respectively | (64,626) | (54,646) | ||||||||||
Issuance of shares under benefit plans | 12,028 | 15,634 | ||||||||||
Purchase of shares for treasury | (297,804) | (249,403) | ||||||||||
Transactions with Noncontrolling Interests | 0 | (1,484) | ||||||||||
Balance at the end of the period | 1,011,082 | 1,373,339 | 1,011,082 | 1,373,339 | 1,282,549 | |||||||
Noncontrolling Interests | ||||||||||||
Changes in equity | ||||||||||||
Balance at the beginning of the period | 3,232 | 4,086 | 4,086 | |||||||||
Comprehensive income: | ||||||||||||
Net income including non-controlling interests | (73) | (929) | ||||||||||
Other comprehensive income (loss) | (590) | 765 | ||||||||||
Total comprehensive income (loss) | (663) | (164) | ||||||||||
Cash dividends declared - $0.87 per share and $0.69 per share for the nine months ended September 30, 2015 and 2014, respectively | 0 | 0 | ||||||||||
Issuance of shares under benefit plans | 0 | 0 | ||||||||||
Purchase of shares for treasury | 0 | 0 | ||||||||||
Transactions with Noncontrolling Interests | (1,682) | (782) | ||||||||||
Balance at the end of the period | 887 | 3,140 | 887 | 3,140 | 3,232 | |||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 302 | 85 | 302 | 85 | (9) | 512 | (228) | 369 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (51) | 397 | 378 | (486) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (159) | [1] | (84) | [1] | (67) | [2] | 202 | [2] | ||||
Net Current-Period Other Comprehensive Income (Loss), Net of Tax | (210) | 313 | 311 | (284) | ||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income | Sales | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Net sales | (279) | (23) | (800) | 27 | ||||||||
Income Tax Expense (Benefit) | (105) | (20) | (429) | (10) | ||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income | Cost of goods sold | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Cost of goods sold | 120 | (61) | 733 | 175 | ||||||||
Income Tax Expense (Benefit) | 90 | (42) | 497 | 63 | ||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (110,018) | (152,704) | (110,018) | (152,704) | (197,893) | (190,784) | (155,613) | (160,693) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 80,766 | [3] | 2,909 | [3] | 87,875 | [4] | 7,989 | [4] | ||||
Net Current-Period Other Comprehensive Income (Loss), Net of Tax | 80,766 | 2,909 | 87,875 | 7,989 | ||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Income Tax Expense (Benefit) | 50,079 | 1,974 | 54,449 | 5,235 | ||||||||
Accumulated Translation Adjustment [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (178,757) | (42,160) | (178,757) | (42,160) | $ (90,720) | $ (131,608) | $ 7,450 | $ 8,383 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (47,149) | [5] | (49,610) | [5] | (88,037) | [6] | (50,543) | [6] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | 0 | ||||||||
Net Current-Period Other Comprehensive Income (Loss), Net of Tax | (47,149) | (49,610) | (88,037) | (50,543) | ||||||||
Accumulated Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | $ (76) | $ 60 | $ (590) | $ 765 | ||||||||
[1] | During the 2015 period, this AOCI reclassification is a component of Net sales of $(279) (net of tax of $(105)) and Cost of goods sold of $120 (net of tax of $90); during the 2014 period, the reclassification is a component of Net sales of $(23) (net of tax of $(20)) and Cost of goods sold of $(61) (net of tax of $(42)). (See Note 15 - Derivatives for additional details.) | |||||||||||
[2] | During the 2015 period, this AOCI reclassification is a component of Net sales of $(800) (net of tax of $(429)) and Cost of goods sold of $733 (net of tax of $497); during the 2014 period, the reclassification is a component of Net sales of $27 (net of tax of $(10)) and Cost of goods sold of $175 (net of tax of $63). (See Note 15 - Derivatives for additional details.) | |||||||||||
[3] | This AOCI component is included in the computation of net periodic pension costs (net of tax of $50,079 and $1,974 during the three months ended September 30, 2015 and 2014, respectively). (See Note 13 - Retirement and Postretirement Benefit Plans for additional details.) | |||||||||||
[4] | This AOCI component is included in the computation of net periodic pension costs (net of tax of $54,449 and $5,235 during the nine months ended September 30, 2015 and 2014, respectively). (See Note 13 - Retirement and Postretirement Benefit Plans for additional details.) | |||||||||||
[5] | The Other comprehensive income (loss) before reclassifications excludes $(76) and $60 attributable to Non-controlling interests in the three months ended September 30, 2015 and 2014, respectively. | |||||||||||
[6] | The Other comprehensive income (loss) before reclassifications excludes $(590) and $765 attributable to Non-controlling interests in the nine months ended September 30, 2015 and 2014, respectively. |
INVENTORY VALUATION (Details)
INVENTORY VALUATION (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Excess of current cost over LIFO cost | $ 64,103 | $ 71,311 |
ACCRUED EMPLOYEE BONUS (Details
ACCRUED EMPLOYEE BONUS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Accrued Employee Compensation And Benefits Disclosure Abstract | ||
Accruals for year-end bonuses and related payroll taxes included in other current liabilities | $ 87,542 | $ 107,031 |
PRODUCT WARRANTY COSTS (Details
PRODUCT WARRANTY COSTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in the carrying amount of product warranty accruals | ||
Balance at beginning of year | $ 15,398 | $ 15,180 |
Accruals for warranties | 14,567 | 9,063 |
Settlements | (11,101) | (9,051) |
Foreign currency translation | (414) | (275) |
Balance at end of year | $ 18,450 | $ 14,917 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Debt | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 2,453 | $ 68,166 | ||
Senior Notes outstanding, recorded in Long-term debt | 350,899 | $ 2,488 | ||
Revolving credit agreement | ||||
Debt | ||||
Borrowing capacity under the line of credit | $ 400,000 | |||
Line of Credit Facility, Initiation Date | Sep. 12, 2014 | |||
Covenant compliance description | As of September 30, 2015, the Company was in compliance with all of its covenants | |||
Additional increase in borrowing capacity of the line of credit available at the entity's option | $ 100,000 | |||
Debt Instrument, Term | 5 years | |||
Senior Notes [Member] | ||||
Debt | ||||
Debt Instrument, Issuance Date | Apr. 1, 2015 | |||
Debt Instrument, Face Amount | $ 350,000 | |||
Senior Notes outstanding, recorded in Long-term debt | $ 350,000 | |||
Debt, Weighted Average Interest Rate | 3.50% | |||
AverageMaturityofDebtInstruments | 19 years | |||
Debt Instrument, Covenant Compliance | As of September 30, 2015, the Company was in compliance with all of its debt covenants | |||
Minimum [Member] | Senior Notes [Member] | ||||
Debt | ||||
Debt Instrument, Term | 10 years | |||
Maximum | Senior Notes [Member] | ||||
Debt | ||||
Debt Instrument, Term | 30 years | |||
Senior Notes Series A [Member] | ||||
Debt | ||||
Debt Instrument, Maturity Date | Aug. 20, 2025 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | |||
Debt Instrument, Face Amount | $ 100,000 | |||
Senior Notes Series B [Member] | ||||
Debt | ||||
Debt Instrument, Maturity Date | Aug. 20, 2030 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | |||
Debt Instrument, Face Amount | $ 100,000 | |||
Senior Notes Series C [Member] | ||||
Debt | ||||
Debt Instrument, Maturity Date | Apr. 1, 2035 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.61% | |||
Debt Instrument, Face Amount | $ 50,000 | |||
Senior Notes Series D [Member] | ||||
Debt | ||||
Debt Instrument, Maturity Date | Apr. 1, 2045 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.02% | |||
Debt Instrument, Face Amount | $ 100,000 |
RETIREMENT AND POSTRETIREMENT46
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $ 4,693 | $ 4,228 | $ 15,153 | $ 14,372 |
Interest cost | 6,494 | 10,647 | 27,238 | 31,924 |
Expected return on plan assets | (9,003) | (16,940) | (40,983) | (51,009) |
Amortization of prior service cost | (157) | (154) | (469) | (461) |
Amortization of net loss | 2,886 | 4,815 | 14,578 | 13,246 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (136,331) | (1,562) | (136,331) | (1,562) |
Defined benefit plans | 141,244 | 4,158 | 151,848 | 9,634 |
Multi-employer plans | 196 | 250 | 624 | 781 |
Defined contribution plans | 1,904 | 2,898 | 7,865 | 8,551 |
Total pension cost | $ 143,344 | $ 7,306 | 160,337 | $ 18,966 |
Voluntarily contribution to defined benefit plans in United States | $ 47,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Income taxes | $ (28,045) | $ 32,953 | $ 19,902 | $ 96,532 | |
Pre-tax income | (88,526) | $ 77,785 | $ 98,615 | $ 275,077 | |
Effective income tax rate (as a percent) | 20.20% | 35.10% | |||
Unrecognized tax benefits | 14,574 | $ 14,574 | |||
Unrecognized tax benefits that, if recognized, would be reflected as a component of income tax expense | 8,163 | 8,163 | |||
Reasonably possible reduction in prior years' unrecognized tax benefits during the next twelve months | $ 3,369 | $ 3,369 | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ (24,976) | ||||
Interest Received On Income Tax Examination Refund From Settlement With Taxing Authority | $ 1,596 |
DERIVATIVES (Fair Value of Deri
DERIVATIVES (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Current Assets | ||
Fair values of derivative instruments | ||
Fair value of derivative assets | $ 1,144 | $ 2,088 |
Other Current Liabilities | ||
Fair values of derivative instruments | ||
Fair value of derivative liabilities | 2,684 | 5,111 |
Designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ||
Fair values of derivative instruments | ||
Fair value of derivative assets | 218 | 468 |
Designated as hedging instruments | Foreign exchange contracts | Other Current Liabilities | ||
Fair values of derivative instruments | ||
Fair value of derivative liabilities | 938 | 935 |
Designated as hedging instruments | Net Investment Hedging [Member] | Other Current Assets | ||
Fair values of derivative instruments | ||
Fair value of derivative assets | 0 | 1,091 |
Designated as hedging instruments | Net Investment Hedging [Member] | Other Current Liabilities | ||
Fair values of derivative instruments | ||
Fair value of derivative liabilities | 0 | 469 |
Not designated as hedging instruments | Foreign exchange contracts | Other Current Assets | ||
Fair values of derivative instruments | ||
Fair value of derivative assets | 907 | 482 |
Not designated as hedging instruments | Foreign exchange contracts | Other Current Liabilities | ||
Fair values of derivative instruments | ||
Fair value of derivative liabilities | 1,739 | 3,638 |
Not designated as hedging instruments | Commodity contracts | Other Current Assets | ||
Fair values of derivative instruments | ||
Fair value of derivative assets | 19 | 47 |
Not designated as hedging instruments | Commodity contracts | Other Current Liabilities | ||
Fair values of derivative instruments | ||
Fair value of derivative liabilities | $ 7 | $ 69 |
DERIVATIVES (Income Statement I
DERIVATIVES (Income Statement Impact) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Foreign exchange contracts | Selling, general and administrative expense | ||||
Effects of undesignated cash flow hedges on the entity's Consolidated Statements of Income | ||||
Gains (loss) recognized in income | $ (7,993) | $ (4,746) | $ (15,085) | $ (3,448) |
Commodity contracts | Cost of goods sold | ||||
Effects of undesignated cash flow hedges on the entity's Consolidated Statements of Income | ||||
Gains (loss) recognized in income | $ 182 | $ 1,024 | $ 232 | $ 523 |
DERIVATIVES (AOCI Impact) (Deta
DERIVATIVES (AOCI Impact) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Foreign exchange contracts | |||||
Effects of designated cash flow hedges on the entity's AOCI | |||||
Gain (loss) recognized in AOCI, net of tax | $ (675) | $ (9) | |||
Foreign exchange contracts | Sales | |||||
Effects of designated cash flow hedges on the entity's AOCI | |||||
Gain (loss) reclassified from AOCI to income | $ (279) | $ (23) | (800) | $ 27 | |
Foreign exchange contracts | Cost of goods sold | |||||
Effects of designated cash flow hedges on the entity's AOCI | |||||
Gain (loss) reclassified from AOCI to income | $ 120 | $ (61) | 733 | $ 175 | |
Net Investment Hedging [Member] | |||||
Effects of designated cash flow hedges on the entity's AOCI | |||||
Gain (loss) recognized in AOCI, net of tax | $ 977 | $ 0 |
DERIVATIVES (Textual) (Details)
DERIVATIVES (Textual) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Maximum period for which derivative contracts cover currency and commodity exposures | 2 years | |
Gain (loss) expected to be reclassified from AOCI to earnings, next twelve months | $ (675) | |
Gain (loss) expected to be reclassified from AOCI to earnings, period of recognition | 12 months | |
Hedge ineffectiveness was immaterial | Hedge ineffectiveness was immaterial in the nine months ended September 30, 2015 and 2014. | |
Foreign exchange contracts | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 31,472 | $ 27,265 |
Foreign exchange contracts | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, notional amount | 270,667 | 280,949 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 60,734 | |
Silver forward contract | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 3,644 | 4,467 |
Copper forward contract | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,066 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Liabilities: | ||
Contingent consideration | $ 9,206 | |
Fair Value, Measurements, Recurring [Member] | Fair value. | ||
Assets: | ||
Total assets | 1,144 | $ 2,088 |
Liabilities: | ||
Contingent consideration | 9,206 | 6,912 |
Forward contract | 20,855 | 25,268 |
Deferred compensation | 22,614 | 21,839 |
Total liabilities | 55,359 | 59,130 |
Fair Value, Measurements, Recurring [Member] | Fair value. | Foreign exchange contracts | ||
Assets: | ||
Assets | 1,125 | 950 |
Liabilities: | ||
Liabilities | 2,677 | 4,573 |
Fair Value, Measurements, Recurring [Member] | Fair value. | Commodity contracts | ||
Assets: | ||
Assets | 19 | 47 |
Liabilities: | ||
Liabilities | 7 | 69 |
Fair Value, Measurements, Recurring [Member] | Fair value. | Net Investment Hedging [Member] | ||
Assets: | ||
Assets | 1,091 | |
Liabilities: | ||
Liabilities | 469 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contract | 0 | 0 |
Deferred compensation | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Foreign exchange contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Net Investment Hedging [Member] | ||
Assets: | ||
Assets | 0 | |
Liabilities: | ||
Liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets | 1,144 | 2,088 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Forward contract | 0 | 0 |
Deferred compensation | 22,614 | 21,839 |
Total liabilities | 25,298 | 26,950 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||
Assets: | ||
Assets | 1,125 | 950 |
Liabilities: | ||
Liabilities | 2,677 | 4,573 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Assets: | ||
Assets | 19 | 47 |
Liabilities: | ||
Liabilities | 7 | 69 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Net Investment Hedging [Member] | ||
Assets: | ||
Assets | 1,091 | |
Liabilities: | ||
Liabilities | 469 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Contingent consideration | 9,206 | 6,912 |
Forward contract | 20,855 | 25,268 |
Deferred compensation | 0 | 0 |
Total liabilities | 30,061 | 32,180 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Assets: | ||
Assets | 0 | 0 |
Liabilities: | ||
Liabilities | $ 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Net Investment Hedging [Member] | ||
Assets: | ||
Assets | 0 | |
Liabilities: | ||
Liabilities | $ 0 |
FAIR VALUE (Textual) (Details)
FAIR VALUE (Textual) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Assets and liabilities measured at fair value on a recurring basis | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | $ 5,706 | |
Fair value of contingent consideration liability | $ 9,206 | |
Business Combination Arrangement Remaining Interest Period | 3 years | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements) | $ 7,140 | |
Cost of debt (as a percent) | 3.50% | |
Risk adjusted cost of capital (as a percent) | 13.80% | |
Fair value of long-term debt | $ 249,045 | $ 9,323 |
Carrying value of long-term debt | 351,449 | 9,499 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value of contingent consideration liability | 9,206 | 6,912 |
Fair Value of forward contract liability | $ 20,855 | $ 25,268 |