SEGMENT INFORMATION | SEGMENT INFORMATION The Company's primary business is the design, development and manufacture of arc welding products, automated joining, assembly and cutting systems, plasma and oxy-fuel cutting equipment. The Company also has a leading global position in brazing and soldering alloys. The Company's products include arc welding power sources, plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories and specialty welding consumables and fabrication. The Company's product offering also includes CNC plasma and oxy-fuel cutting systems and regulators and torches used in oxy-fuel welding, cutting and brazing. The Company has aligned its organizational and leadership structure into three operating segments to support growth strategies and enhance the utilization of the Company's worldwide resources and global sourcing initiatives. The operating segments consist of Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment includes welding operations in Europe, Africa, Asia and Australia. The Harris Products Group includes the Company's global cutting, soldering and brazing businesses as well as its retail business in the United States. Segment performance is measured and resources are allocated based on a number of factors, the primary measure being the adjusted earnings before interest and income taxes ("Adjusted EBIT") profit measure. EBIT is defined as Operating income plus Equity earnings in affiliates and Other income. Segment EBIT is adjusted for special items as determined by management such as the impact of rationalization activities, certain asset impairment charges and gains or losses on disposals of assets. The accounting principles applied at the operating segment level are generally the same as those applied at the consolidated financial statement level with the exception of LIFO. Segment assets include inventories measured on a FIFO basis while consolidated inventories include inventories reported on a LIFO basis. Segment and consolidated income before interest and income taxes include the effect of inventories reported on a LIFO basis. At December 31, 2019 , 2018 and 2017 approximately 36% , 37% and 32% , respectively, of total inventories were valued using the LIFO method. LIFO is used for a substantial portion of U.S. inventories included in Americas Welding. Inter-segment sales are recorded at agreed upon prices that approximate arm's length prices and are eliminated in consolidation. Corporate-level expenses are allocated to the operating segments. Financial information for the reportable segments follows: Americas Welding (1) International Welding (2) The Harris Products Group (3) Corporate / Eliminations (4) Consolidated For the Year Ended December 31, 2019 Net sales $ 1,815,746 $ 854,376 $ 333,150 $ — $ 3,003,272 Inter-segment sales 123,342 17,691 7,487 (148,520 ) $ — Total $ 1,939,088 $ 872,067 $ 340,637 $ (148,520 ) $ 3,003,272 Adjusted EBIT $ 315,719 $ 50,281 $ 45,701 $ (10,948 ) $ 400,753 Special items charge (gain) 3,115 2,156 1,770 1,804 $ 8,845 EBIT $ 312,604 $ 48,125 $ 43,931 $ (12,752 ) $ 391,908 Interest income 2,527 Interest expense (25,942 ) Income before income taxes $ 368,493 Total assets $ 1,490,395 $ 831,759 $ 203,602 $ (154,543 ) $ 2,371,213 Equity investments in affiliates 4,274 — — — $ 4,274 Capital expenditures 39,106 23,126 7,383 — $ 69,615 Depreciation and amortization 55,300 22,013 4,636 (462 ) $ 81,487 For the Year Ended December 31, 2018 Net sales $ 1,806,514 $ 919,771 $ 302,389 $ — $ 3,028,674 Inter-segment sales 118,936 18,576 6,969 (144,481 ) $ — Total $ 1,925,450 $ 938,347 $ 309,358 $ (144,481 ) $ 3,028,674 Adjusted EBIT $ 340,744 $ 54,273 $ 36,564 $ (8,887 ) $ 422,694 Special items charge (gain) 6,686 25,285 — 4,498 $ 36,469 EBIT $ 334,058 $ 28,988 $ 36,564 $ (13,385 ) $ 386,225 Interest income 6,938 Interest expense (24,503 ) Income before income taxes $ 368,660 Total assets $ 1,418,905 $ 827,132 $ 203,095 $ (99,307 ) $ 2,349,825 Equity investments in affiliates 4,204 27,024 — — $ 31,228 Capital expenditures 42,053 26,284 2,909 — $ 71,246 Depreciation and amortization 47,008 22,384 3,045 (91 ) $ 72,346 For the Year Ended December 31, 2017 Net sales $ 1,609,779 $ 724,024 $ 290,628 $ — $ 2,624,431 Inter-segment sales 97,382 18,860 8,190 (124,432 ) $ — Total $ 1,707,161 $ 742,884 $ 298,818 $ (124,432 ) $ 2,624,431 Adjusted EBIT $ 291,866 $ 41,721 $ 36,442 $ 309 $ 370,338 Special items charge 9,242 10,076 — (34,648 ) $ (15,330 ) EBIT $ 282,624 $ 31,645 $ 36,442 $ 34,957 $ 385,668 Interest income 4,788 Interest expense (24,220 ) Income before income taxes $ 366,236 Total assets $ 1,253,411 $ 919,995 $ 175,151 $ 57,990 $ 2,406,547 Equity investments in affiliates 4,037 24,489 — — $ 28,526 Capital expenditures 43,158 14,549 3,949 — $ 61,656 Depreciation and amortization 47,038 18,364 2,885 (172 ) $ 68,115 (1) 2019 special items reflect Rationalization and asset impairment charges of $1,716 and amortization of step up in value of acquired inventories of $1,399 related to the acquisition of Baker. 2018 special items reflect pension settlement charges of $6,686 in Americas Welding related to lump sum pension payments. 2017 special items reflect pension settlement charges of $8,150 related to lump sum pension payments, as well as non-cash charges of $1,091 related to the impairment of goodwill. (2) 2019 special items reflect Rationalization and asset impairment charges of $11,702 , amortization of step up in value of acquired inventories of $1,609 related to the acquisition of Askaynak, gains on disposals of assets of $3,554 and a gain on change in control of $7,601 related to the acquisition of Askaynak. 2018 special items reflect Rationalization and asset impairment charges of $25,285 related to employee severance, asset impairments, gains or losses on disposal of assets and other related costs. 2017 special items reflect amortization of step up in value of acquired inventories of $4,578 related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements, as well as Rationalization and asset impairment charges of $5,498 related to employee severance, asset impairments and other related costs. (3) 2019 special items reflect Rationalization and asset impairment charges of $1,770 . (4) 2019 special items reflect acquisition transaction and integration costs of $1,804 related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements. 2018 special items reflect acquisition transaction and integration costs of $4,498 related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements. 2017 special items reflect a bargain purchase gain of $49,650 and acquisition transaction and integration costs of $15,002 related to the Air Liquide Welding acquisition as discussed in Note 4 to the consolidated financial statements. Export sales (excluding inter-company sales) from the United States were $147,145 in 2019 , $160,064 in 2018 and $151,630 in 2017 . No individual customer comprised more than 10% of the Company's total revenues for any of the three years ended December 31, 2019 . The geographic split of the Company's Net sales, based on the location of the customer, and property, plant and equipment were as follows: Year Ended December 31, 2019 2018 2017 Net sales: United States $ 1,615,483 $ 1,554,688 $ 1,388,816 Foreign countries 1,387,789 1,473,986 1,235,615 Total $ 3,003,272 $ 3,028,674 $ 2,624,431 December 31, 2019 2018 2017 Property, plant and equipment, net: United States $ 250,923 $ 214,943 $ 194,491 Foreign countries 278,566 264,110 282,931 Eliminations (145 ) (252 ) (391 ) Total $ 529,344 $ 478,801 $ 477,031 |